Study on Skyrocketing Prices: Maybe Don't Buy a Car Soon
The automotive industry is in a tight squeeze right now, wedged within the transition from internal-combustion engine (ICE) vehicles to battery-electric vehicles (BEVs) amid a global pandemic, a war in Europe, and supply constraints and rising material costs. Several BEV automakers including Tesla, Hummer, Lucid, and Rivian have raised their prices in recent weeks, and other automakers have delayed orders, limited buyer options, and in some cases, shipped vehicles without supply-limited components, with a promise to fulfill missing parts when supplies are available. And here is why it's not likely to change very soon.
That's the outlook through 2024, according to a report from industry analyst AlixPartners. In particular, the report says semiconductor shortages will continue to negatively impact new vehicle production through the next couple of years, caused in part by the rising market share of BEVs planned to go on sale as the majority of the industry shifts away from internal combustion.
BEVs will increase chip demand at a growth rate of 55 percent per year, according to the study, which will remain a key bottleneck in new vehicle production. That means that, as automakers introduce a lineup of new BEVs, the technical requirements of these new vehicles will increase the strain of supply because BEVs typically require more chips than ICE vehicles.
That will likely force automakers to continue to hold back on production levels, meaning the number of cars on sale will probably remain limited for a few more years. This gives automakers more pricing power if demand for new cars remains high, so cars likely won't get any cheaper anytime soon.
That doesn't necessarily mean automakers are making too much profit from higher pricing. As an example, via CNBC, Ford recently said the Mustang Mach-E has lost most of its profitability due to rising commodity costs.
Pricing will continue to be negatively impacted by rising material costs, for both new BEVs and ICE vehicles. AlixPartners puts the raw material costs for ICE vehicles at $3,662 per vehicle, and BEVs materials cost more than twice that at $8,255 per vehicle since the battery and motor requirements require more raw materials.
Those costs per vehicle are more than double what they were just two years ago, according to CNBC, reflecting the impact of the market constraints mentioned above.
AlixPartners predicts that BEVs will only overtake ICE vehicles in the majority of market share way out in 2035, as suppliers and automakers likely scale back or slow down the recently rapid introduction of the resource-heavy, higher priced BEV models planned to be introduced, and customer interest and EV infrastructure need time to grow.
AlixPartners says $48 billion in infrastructure investment is needed by 2030, but so far only $11 billion has been committed, so infrastructure support for BEVs will be catching up for years to come.
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We thought we spotted a Ford Maverick Tremor prototype a few weeks ago. It turns out the more rugged-looking Maverick we spied was indeed a Tremor, making it the fourth truck to get the off-road Tremor trim level, joining the Ranger, F-150, and Super Duty. Welcome to the family, baby Tremor. It's a good look.Want a Maverick with the Tremor package? You'll need to spring for a Maverick XLT or Lariat model equipped with the available 250-hp, 277-lb-ft 2.0-liter EcoBoost I-4 engine. That means—for now—the front-wheel-drive-only standard hybrid powertrain and entry-level XL trim cannot be combined with the Tremor, which Ford describes as "an entry-level option for buyers seeking greater off-road capability and bold styling." It's kind of like a souped-up FX4 Off-Road Package already offered on all-wheel-drive Mavericks. So, it's mostly entry-level.Visually, the Maverick Tremor wears a healthy dose of signature Tremor Orange accents, reminiscent of its F-150 brethren. The orange hue coats the tow hooks, fender vents, grille, and wheels. And of course the Tremor bedside logo is in Tremor Orange.Tremor logos are stitched into the Black Onyx seatbacks, which fittingly also have Tremor Orange stitching. There's a dose of non-orange customization in the form of a unique grille finish and blacked-out Ford logos, headlights and taillights.There's also a separate Tremor Appearance Package that includes a Carbonized gray roof and mirror caps. It also includes black side graphics on the hood and lower body.The 17-inch dark gray aluminum wheels are wrapped in 235/65R17 Wildpeak all-terrain tires, though you'll probably only notice the Tremor Orange on the inside pocket of one of the spokes. The speckle of orange almost gives the appearance of orange brake calipers when in motion.The Maverick Tremor gets "off-road tuned suspension with increased ride height" in the form of a 1-inch lift, with claimed "unique front and rear springs and shocks." We're not sure if this includes any of the mechanically similar Bronco Sport SUV's Badlands HOSS (High-Performance Off-Road Stability Suspension) system, or if Ford came up with new bits for the Maverick. Either way, the visual effect is a tougher Maverick.Paring nicely with the upgraded suspension are a tapered front bumper (for an improved approach angle of 10 degrees over the front-wheel drive Maverick Hybrid) and steel skid plates for undercarriage protection. There's also a heavy-duty transmission cooler and upgraded half-shafts.The Maverick Tremor gets five selectable drive modes, but the real story is Trail Control and the upgraded all-wheel-drive system complete with a torque-vectoring rear differential (think Bronco Sport Badlands), both of which the Maverick FX4 does not have. Trail Control is like off-road cruise control, where the driver sets the speed and steers while the truck controls throttle and braking to maintain a (slow) velocity. The torque-vectoring, also new to Maverick, includes a twin-clutch rear-drive unit with a differential lock that allows virtually all rear axle torque to go to either wheel.The 3,807-pound Maverick Tremor is, naturally, the heaviest of the Maverick clan. It can tow 2,000 pounds (indicating it's not offered with the 4K Tow Package, which ups the truck's total to 4,000 lbs) and has a payload rating of 1,200 pounds, 300 pounds less than the other Mavericks.The 2023 Ford Maverick Tremor Off-Road Package comes with $2,995 price tag, and the Tremor Appearance Package is $1,495. Ordering is available in September, with production beginning in fall.
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The third-generation Ford Everest has made its global debut. If you've never heard of this three-row SUV—and you are scratching your head trying to figure out what it is—that's because it has never been offered in the United States, and it never will be. The Everest is sold in places like Australia, South Africa, the Philippines, the Middle East, and Southeast Asia. Lament as you may from the highest mountaintops, but we won't be getting this mighty handsome, muscularly modern seven-seater. Add it to the list of forbidden fruit, alongside the Toyota Land Cruiser—the key difference being that the Land Cruiser was offered here, until recently.The third-generation 2023 Ford Everest is basically a global-market midsize 2023 Ranger pickup clad in SUV skin. Ever wonder what an SUV Ranger would look like? Look at the Everest. Ranger in the front, with a closed-in body (not bed) in the back. Recall that the Ranger's redesign for 2023 gives it a totally different look than the current Ranger, and the Everest adopts these same blocky new design cues. In addition to sharing the upgraded Ford T-6 platform, the Fords share a lot when it comes to the front fascia, including the C-clamp headlights and grille design.The next-gen Ford Everest will be offered with a trio of turbodiesel engines or a gasoline-fed 2.3-liter EcoBoost I-4, with availability depending on the market. The diesel engines include the 3.0-liter Power Stroke V-6 (a variant of what was offered in the F-150), a single-turbo 2.0-liter I-4, and a bi-turbo 2.0-liter I-4. These engines will be mated to six- or ten-speed automatic transmissions. Max towing is an impressive 7,716 pounds. At launch, it'll be available in Sport, Titanium+, and Platinum trims.Ford likens the improved interior of the Ford Everest to a "sanctuary," a quiet place where occupants from all rows can talk to each other without yelling. If that's what the new Ranger is like inside, great, because this Everest seems to share much with that pickup's interior. Like the Ranger, the Everest gets a portrait-oriented 10.1- or 12.0-inch vertical center stack touchscreen equipped with SYNC 4A. This screen displays a 360-degree camera view with a split-view display, making parking or negotiating tight spaces easier. Behind the steering wheel resides an 8.0- or 12.4-inch digital instrument panel, replacing analogue clusters.When it comes to off-road capability, the Everest is exploration ready. Its wider track, longer wheelbase, and tweaks to the damper settings help keep the SUV planted. Although some markets will have an available two-wheel drive offering, the Everest will mostly get one of two four-wheel drive systems (part-time and permanent). The Everest can ford through over 2.5 feet of water, just a few inches less than the Bronco. It has underbody protection, selectable off-road drive modes, a rear locking differential, two front tow hooks, engine bay space for a second battery, and upfitter accessory switches. There's an off-road screen display that shows pertinent vehicle information, a front camera view, predictive overlay guidelines, and more. Owners trying to set up camp in the dark can control the new exterior zone lighting system via the FordPass App.Is it selfish to lust after unobtainable factory vehicles like the Ford Everest and wish their presence in our stateside lineup? No. It would be awesome to have here. So why don't we get the Ford Everest? Because we get the Ford Bronco, which may be considered too similar and (probably) more popular. The Bronco and Everest would be in the same midsize SUV category, creating too much overlap. The Bronco is basically our Ranger-based SUV, meaning the Everest would be...another Ranger-based SUV. However, the Bronco is a beast of its own and is so fundamentally different than the Ranger—different suspension, different body—that one could argue there is room for the Everest, an actual Ranger-looking Ranger-based SUV.Going a step further, there would be utmost demand for an Everest Raptor in the U.S. After all, there is a Ranger Raptor that's already paved the way, and there's a Bronco Raptor. We're happy for the parts of the world that will get the the new SUV, but the real mountaintop high would be news of an Everest to call our own.
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