Tested: Ford's Escape Plug-In Hybrid FWD Is Money in the Bank
Before hitting the test track, we decided to take our 2021 Ford Escape Titanium Plug-In Hybrid up to a local mountain ski resort town, mostly for the drive back. It's satisfying to watch the hybrid compact SUV's available range increase as the regenerative braking system recovers energy. The phenomenon is enjoyed frequently simply because one is on the brakes quite a lot on a winding road coming down from almost 7,000 feet of elevation.
Everything was cool (excuse the pun) until the faint odor of overheating began to waft into the cabin. Our regen system was evidently working overtime, at which point we decided to let the engine and physics do most of the vehicle's slowing. Still, we managed to take the Escape's EV range from nothing to nearly 20 miles (out of 37 max) just by using the brake pedal. Neat.
Fuel Economy and Range
Our Escape Titanium PHEV test model is the top trim of a three-model 2021 lineup that also includes less expensive SE and SEL trim levels. Ford also offers a standard, non-plug-in hybrid that makes the choice a little tougher if fuel economy is your main goal.
The Escape PHEV returned an admirable EPA-estimated 105 mpg-e combined, which leads a burgeoning small SUV plug-in hybrid segment that includes among others the 2022 Toyota RAV4 Prime AWD (94 mpg-e combined), 2022 Hyundai Tucson PHEV AWD (80 mpg-e combined), and 2022 Subaru Crosstrek Hybrid AWD (90 mpg-e combined). Its mileage not unexpectedly surpasses the combined mpg of the regular Escape Hybrid, too, which came in at 41 mpg for the front-wheel-drive model and 40 mpg for the all-wheel-driver.
Total range for the 2021 Escape PHEV is an EPA-rated 520 miles, and as mentioned earlier, all-electric range is 37 miles, which are both strong. But the 2022 RAV4 Prime—with its larger capacity 18.1-kWh battery and significantly bigger 14.5-gallon gas tank—beat that combined range by 80 miles. It also gets 5 more all-electric miles. The Escape's 14.4-kWh battery capacity and 11.2-gallon tank still help it get more total range than the Crosstrek Hybrid, which has the least amount of battery capacity of the foursome (8.8 kWh), and the Tucson PHEV, which has the smallest fuel tank (11.1 gallons).
The Escape PHEV weighs at least 100 pounds less than the Toyota or the Hyundai and is only offered in FWD, two additional factors that help its efficiency—and help in other ways, as well. It gets its motivation from a 165-hp 2.5-liter naturally aspirated inline-four working in concert with an 83-hp electric motor to deliver a combined 200 hp.
The RAV4 Prime and Crosstrek Hybrid have similar formulas, but the Toyota scales up while the Subie scales down. The RAV4 employs a 177-hp 2.5-liter inline-four and electric motors front and rear for a total of 302 hp and the Crosstrek uses a 137-hp 2.0-liter flat-four and two motors for a sum of 148 hp. The Tucson PHEV offers yet another method, a 180-hp 1.6-liter turbo-four for the front axle and electric motor for the rear developing a combined 261 hp. All except the Hyundai, which is outfitted with a six-speed automatic, are equipped with a CVT.
What the Numbers Say
Braking is one area where we see the Escape PHEV's mass working in its favor. In spite of a vague-feeling pedal, our test team found stopping power to be consistent, with the Ford SUV coming to a halt from 60 mph in an average of 123 feet, 4 feet shorter than the heavier Toyota. We have yet to receive test results for the Tucson PHEV, but a 2022 Tucson Hybrid AWD Limited we assessed averaged 129 feet.
The Escape PHEV's steering was also unexpectedly communicative, especially for a modern hybrid FWD. That's where the Ford's dynamic strengths end, though.
"Power is just so-so, [and] as the laps added up, the [factory all-season] tires lost all sorts of grip, in both braking and on the skidpad," reports road test editor Chris Walton. Indeed, in our lateral acceleration and figure-eight tests, the 2021 Escape PHEV exhibited less grip than the 2021 RAV4 Prime and 2019 Crosstrek Hybrid, which was the last time we tested the current generation of each. As the plug-in Escape and RAV4 have similar setups and weight splits, suspension tuning and AWD traction likely also played roles.
Straight-line quickness is also not the Escape PHEV's forte. It's swifter from 0-60 and through the quarter mile than the smaller, less powerful Crosstrek, but every hybrid is chasing the RAV4 Prime now. The Toyota snaps off 60 mph in 5.5 seconds and runs the quarter in 14.1 seconds at 98.7 mph, in each case more than two ticks quicker than the Escape. Our road test analyst Alan Lau put it succinctly: "[The Escape PHEV] is good off the line—and that's about it relative to the segment."
What It's Like to Live With
Few shoppers will look at the 2021 Escape PHEV for driving pleasure. Practicality is the game here, and as the widest among small five-passenger SUVs, the Ford provides the most first-row space. But it's also not as long as the Tucson PHEV, which gives the Hyundai an edge in cargo space and rear passenger room.
While the gas 2021 Escape is available in four trim levels, both the PHEV and Hybrid are pared to just three, the SE, SEL, and Titanium. Among the standard kit the range-topping model gets that the others don't are features like adaptive cruise control, a 12.3-inch digital instrument cluster, a 10-speaker audio system, and hands-free power liftgate. Our test vehicle also came in Rapid Red premium exterior paint and with the Premium package, which consists of embroidered floor mats, a head-up display, perforated leather, leather-wrapped steering wheel, panoramic roof, and a wireless charging pad. The 2022 Escape PHEV is a carryover except for three new exterior paint colors: Atlas Blue Metallic, Flight Blue Metallic, and Iced Blue Metallic.
Poking around the cabin, we were slightly dismayed at the build quality in some spots. For sure, there is a lot of hard plastic, but that wasn't even the chintziest thing we found. The Escape PHEV's 12-volt battery is in the spare tire well under the cargo area floor and its execution seriously looks like someone did the relocating in their home garage. Furthermore, there's a noticeable gap between the steering column and the cowling beneath that's supposed to hide the wiring harness under the dash but doesn't.
We might be picking nits, but if we were springing for the top model of any lineup, those are things that would give us pause. Fortunately, there wasn't much else beyond those details. The seats were comfortable, and the ride was smooth. The only way we could tell the powertrain was switching between gas and electric was by listening for the internal combustion engine's muffled hum. Otherwise, there was no sensation to tip us off.
Driver controls were laid out sensibly, and the Escape PHEV's infotainment system was easy to figure out. Its automatic high-beam headlights were excellent on unlit mountain passes, and generally its driver-assist technology was unobtrusive and useful. In back, we appreciated how easy it was to fold the second-row seats and how they were nearly flat with the cargo area floor when folded.
Before we handed the Escape PHEV's keys to our test team, we also went through the process of charging it up to see what that was like. It offers both Level 1 110-volt charging from a standard house outlet and Level 2 240-volt charging, which works with a high-output outlet like ones used for larger household appliances. We found a Level 2 public charger nearby, and after leaving the Escape plugged in for a tad over three hours, we got back 32 miles out of 37 in EV range.
Had we left it plugged in for the full 3.5 hours we likely would've gotten a full charge. For comparison, Toyota claims its RAV4 Prime can charge in as quick as 2.5 hours on a Level 2, while both Hyundai and Subaru say the Tucson PHEV and Crosstrek Hybrid, respectively, can get a full charge on a Level 2 in about two hours.
Pricing
The base model 2021 Escape PHEV SE stickers for $34,320 and the Escape PHEV Titanium starts off at $40,130. When we added the $395 premium paint and $2,500 Premium package, that figure rose to $43,025.
With the cost of the add-ons on our tester, the Escape PHEV still comes in under the range-topping 2022 RAV4 Prime XSE, which retails for $44,340, and the 2022 Tucson PHEV Limited, which retails for $43,775. At $36,770, the smaller 2022 Crosstrek Hybrid, which is offered in just one trim, undercuts them all except the base Escape PHEV SE, which is thousands less.
Verdict
That trip up and down the mountain highlighted the plug-in Escape's strengths like its chassis' spryness and smooth ride (provided you don't push it too hard), its passenger space, and of course the strong fuel economy that a hybrid can return. Less impressive were its quickness past the launch, limited cargo space, and ubiquitous interior plastics.
At its best, the Escape PHEV is the smart choice. You're saving money both on the front end and over time. It gives you everything you need, and on the range-topping Titanium considerably more. And as strange as this sounds, it's available all over the country (unlike the Subaru Crosstrek Hybrid, which is sold for dealer stock only in California at this time).
But while the 2021 Escape Titanium PHEV is good in the areas that count, there is little to no premium-ness to this top trim. Even its jellybean shape is uninspiring and could use some harder edges. It's almost unfair that something as dynamically superior as the RAV4 Prime is in the same segment.
That said, we don't think track testing results will make a ton of difference to most hybrid compact SUV shoppers. We do think a good deal will. And at the end of the day, if you're here to party in your small crossover, you better be ready to pay for it.
Looks good! More details?2021 Ford Escape (FWD Titanium PHEV) SPECIFICATIONS BASE PRICE $40,130 PRICE AS TESTED $43,025 VEHICLE LAYOUT Front-engine, FWD, 5-pass, 4-door SUV ENGINE 2.5L port-injected Atkinson cycle DOHC 16-valve I-4, plus permanent-magnet elec motor POWER (SAE NET) 165 hp @ 6,250 rpm (gas), 83 hp (elec); 200 hp (comb) TORQUE (SAE NET) 155 lb-ft @ 4,500 rpm (gas) TRANSMISSION Cont variable auto CURB WEIGHT (F/R DIST) 3,974 lb (58/42%) WHEELBASE 106.7 in LENGTH x WIDTH x HEIGHT 180.5 x 74.1 x 68.6 in 0-60 MPH 7.7 sec QUARTER MILE 16.0 sec @ 91.6 mph BRAKING, 60-0 MPH 123 ft LATERAL ACCELERATION 0.79 g (avg) MT FIGURE EIGHT 27.7 sec @ 0.60 g (avg) EPA CITY/HWY/COMB FUEL ECON 29/36/32 mpg (gas) 117/93/105* mpg-e EPA RANGE, COMB 520* mi ON SALE Now *EPA blended-PHEV (charge-depleting) mode testing, with vehicles set to their default drive and brake-regeneration modes. Show AllYou may also like
To the surprise of the few and the horror of those trying to purchase one for sticker price, the 2022 Porsche 911 GT3 is MotorTrend's 2022 Performance Vehicle of the Year. The competition was fierce for this year's inaugural award, but in the end most of the judges voted for the GT3. The two who didn't score it first had Porsche's latest and greatest in second place—quite a close second place, at that. And yes, the word "greatest" is apropos here. That is, until the next GT3 iteration drops—which should be any time now. Why so dominant, why so loved, why so great? Several reasons, but first let's go backward.We considered ourselves fortunate to attend the launch of the old 991.2 911 GT3 in Spain back in 2017. Fortunate not only because that GT3 generation (the new GT3 is the 992.1) was magnificent but also because attendees got to chase rally legend Walter Röhrl around a racetrack for five laps. Life was good. On a personal note, I mention this because I distinctly remember writing this next part before I drove the 991.2 version: "[The 991.1] GT3 marked the first time in my career I had nothing negative to say about a vehicle." Followed by, "I don't have the foggiest idea how the wizards of [Weissach] can make the GT3 any better than it already is. Although I suspect Porsche will tell me once I get to Spain."In other words, it was impossible to conceive how Porsche could even kind of improve upon the already spectacular 991.1 GT3. But it sure did. Fast-forward to hours before the 2022 PVOTY competition began, and our judging panel collectively thought the same thing. Guess what? The unfathomable has been achieved. Again.A sampling of initial comments from meine Kollegen once they spun a turn behind the Porsche's wheel: "This is pure driving pleasure," features editor Scott Evans said. "Honestly, it's the only car that made me lose my breath." Features editor Christian Seabaugh added, "My gosh, this is such a good car." Deputy editor Alexander Stoklosa recounted, "I took this on two laps of the winding road circuit at the Hyundai Proving Ground, and by the time I exited, I was sweaty and feeling absolutely jacked, wanting more." Good thing for him we then went to the racetrack, no? Director of editorial operations Mike Floyd said, "Holy hell, this thing is amazing. Wow."Head of editorial Ed Loh went a bit cerebral trying to explain what's so great about the GT3: "It makes you feel sharper and more in tune with everything—from the soles of your feet to the pads of your fingertips, all the way to the base of your skull and the lizard part of your brain that ensures you don't die in your sleep." Executive editor Mac Morrison was more succinct, simply offering, "Sheeeeeezus H. Porsche. Maaaaannnnnnn."Yeah, friends, this car is absurdly great. It serves up unbelievable levels of performance paired with unbelievable levels of grip, head-ringing aural thrills thanks to a 502-hp humdinger of a 4.0-liter naturally aspirated flat-six that revs all the way to 9,000 rpm, and perhaps most important, the best manual transmission in automotive history. Hashtag fight us. Did we mention the gobs and bushels and duffel bags full of both horsepower and revs? Perhaps the 992 GT3 is not as laser-guided or quick as the other two big wingers present (the Lamborghini Huracán STO and the Mercedes-AMG GT Black Series), a whole host of McLarens, or even Porsche's own upcoming GT3 RS. However, this car boasts a solidity, an everyday ease of use, and the resulting desire to just drive it more and more that separates the GT3 from the rest of the frontrunners for this year's PVOTY trophy. The 2022 911 GT3 is a deeply satisfying sports car that just so happens to have supercar reflexes.But what about the criteria? Oh yes, we are fully aware that transitioning away from our old Best Driver's Car competition to one of our signature Of The Year formats means any winner is subjected to our six key criteria. In case this is your first time, they are: Advancement in Design, Engineering Excellence, Performance of Intended Function, Safety, Value, and Efficiency. Even when keeping every one of these in mind when picking our winner, the Porsche excels. Hell, forget excels; the GT3 dominates.Advancement in DesignThis one is as simple as … just look at it. At first glance and across but two dimensions, you may not "get" the nostrils on the GT3's hood. We assure you the two speed holes (they're actually part of the car's aerodynamics, similar to openings on the Lamborghini Aventador SVJ) grow on you after repeated viewings. Back to the launch of the old 991.2 GT3, I'll never forget something Porsche GT-division boss Andy Preuninger said during the press conference: "The GT3 has to be the most attractive 911." Targa fans might disagree, but the newest GT3 looks fabulous, even in muted orange sherbet (actual color name: Lava Orange). And that wing! A piece of functional sculpture. Anyone opting for the wingless GT3 Touring version is nuts. Ahem.We also loved the interior's design, specifically the well-executed sparseness. Countless gallons of ink have been spilled, both actual and virtual, rightly chastising Tesla for that brand's signature near lack of an interior, but the GT3 isn't that. No, this car's guts represent minimalism done right. "I love how simple it is inside—just get in and go," Stoklosa said. "There's a button for ESC, one for the shocks, and that's pretty much it. No fiddling, all fun." Yes, you get right down to business inside the GT3, the business of woohoo!Loh was particularly impressed. "The control layout is awesome," he said. "It's not as spaceship-weirdo-wild-looking as the Huracán STO. It's also not as plasticky as the AMG GT. I'm Goldilocks, and this supercar is juuuust riiiiight. Love the seats, love this vehicle. Awesome."Not only is the layout awesome, but the controls themselves also inspire awe. We've only partially told you about the fabulous gear lever. One reason it's so spot on is that the transmission's synchros are made from brass, not plastic; when you shift gears, you're actually pushing metal through metal. So cool. But just holding the stick feels wicked. The clutch is perfectly weighted, too. Porsche truly nailed the small stuff. "It's a little thing, but I love the steering wheel," Seabaugh said. "It's a dinky little 7/8ths-sized thing that just feels perfect in your hands." Amen.Engineering ExcellenceThe criteria's lines are easy to blur. For instance, the stick shift bleeds over from Advancement of Design into Engineering Excellence. So be it. As associate road test editor Erick Ayapana asked, "Why can't all shifters be like this?" It's no shock to say the latest from Porsche's freaking racing division—after all, that's what the GT crew does—is excellently engineered. But, brothers, sisters, this is one of those hard-to-overstate situations.As an example, let's look at the car's grip. We were impressed. "The amount of mechanical grip, aided at times by the aero, is stupefying," Morrison said. "Like, it's just criminal, and I use that word as a positive. You should not be able to drive the front end into corners as hard as you can, and you should not be able to go back to power so hard and early and easily as the new GT3 allows you to."Want to talk brakes? Evans does. "The brake feel is the real accomplishment here, and that's saying something," he said. "You can feel exactly how hard the pads are biting at every moment, intuit exactly how much braking you're using and how much you have left in reserve." Road test editor Chris Walton added, "The brakes are nuclear."Grip and brakes, that's just tires, right? Well, partially, sure, but we promise you that while slapping the GT3's sticky Michelin Pilot Sport Cup 2 R N0s on your car will improve its performance, the GT3 is better engineered. It pulled 1.19 g (average) on our skidpad, tying it with the 2019 911 GT2 RS for the highest average number we've ever recorded. Its figure-eight time was just 0.2 second off the 720-hp AMG GT Black Series, a car that makes 218 extra horsepower. And the GT3 beat the incredible 630-hp Lambo STO here by 0.2. If that's not engineering excellence, what is?Performance of Intended FunctionThe 911 GT3 crushes this category. This is the part where we break down both what a GT3 is and what makes a Performance Vehicle of the Year. Starting with the 911, it's the sportier, racier, harder-core, no-compromise version. And the 911 is a hell of a sports car to start with. From that not so humble origin point, the wizards and witches of Flacht work their magic, transforming a superlative sports car into an everyday supercar. Yes, supercar, because the GT3 certainly is.The ride isn't soft, but you can live with this car. "Old dudes like me might have some trouble with ingress and egress," Floyd said, "but once you get yourself snug in the seat, you can easily drive the GT3 all day in slow traffic or on a long highway stretch. The clutch pedal action doesn't punish your left leg, and loping around town is a breeze."You simply can't say the same about either the STO or the Black Series. Everyday? Maybe every track day, and even that's a stretch. For instance, assuming your head isn't too big, you might be able to fit your helmet—just one—into the Lambo's frunk. Emphasis on "might." The Black Series, while deeply impressive, is really just a bridge too far for a street car. The GT3? Let's just say we understand why people are paying $50,000 more than sticker for a street car that can also rip up a racetrack."It's just a joy to drive hard on a circuit, which is what the GT3 is absolutely made to do," Floyd said. "It's so obvious how long Porsche has been developing this car and the 911 in general. There's a next-level feel you just don't get with the Huracán or GT Black." In other words, it's a special 911 doing precisely what its maker intended. Talk about performance of intended function, indeed. That alone makes it a great candidate for Performance Vehicle of the Year.ValueIncome inequality must be causing mass psychosis for us to say a car with a base price of $164,150 and an as-tested kitty of $195,850 is a great value, but humor us for a moment. When you consider the two cars in this test that most closely compete with the Porsche—the $355,595 AMG and the $442,033 Lamborghini—the GT3 looks like a steal. Toss on that $50,000 ADM (adjusted dealer markup), and the Porsche is still a steal.EfficiencyWe cannot, however, with a straight face tell you a car that carries an EPA rating of 16 mpg combined is efficient. But this is Performance Vehicle of the Year; none of the competitors was designed with astounding efficiency in mind. Additionally, the GT3's fuel economy is in line with the other contenders in its performance plane. Hot tip: Opt for the extended-range gas tank, and you'll feel as if you're getting great mileage.SafetyCars like the Porsche 911 never get crash ratings, never mind the GT3. That's just how it is. So we can't tell you about its passive safety worthiness. However, a car that superlatively grips and stops the way the GT3 does is inherently safe in the hands of a skilled driver. Oh, and we seem to remember it has adaptive cruise control, too.Dominant Winner WinsThere's so much more to say. We haven't mentioned the Davante Adams-like way the GT3 changes direction. Or the switch to a double control arm suspension up front. Or how for the first time in Porsche 911 history, you don't need to trail-brake your way into every corner, because (surprise!) the front suddenly has copious grip. The front end is like a race car, or as Seabaugh put it, "It digs hard into corners like a skate into ice." There's also the part about how with only 2 additional hp, the 992.1 GT3 is nearly 18 seconds quicker around the Nürburgring Nordschleife than the 991.2 GT3 it replaces. If only we could show you all the notes from all the judges, including our dedicated test team, just so you could see how consistently overwhelming the superlatives are. It's without end.Anything we don't like? Evans and Loh thought the ride quality was lacking, to the point Evans recommends never putting the dampers into Sport. Not everyone agreed with him. But that's about it for the negatives. Looking over my own notes, one line caught my eye: "If the GT3 isn't second place, it's first." As much as I and the rest of the judges loved the Porsche, the Lamborghini STO was also exceptional. But by a vote of five judges to two, the GT3 claimed the crown.EpilogueAfter the vote, and because I was the judge writing this winner story, I took the new Porsche 911 GT3 home for about a week. A friend of mine owns a 991.2 GT3 Touring; we decided to drive them back to back. I figured this new GT3 would be slightly better, but I quickly learned it's about 70 percent better. The 2022 model made the old one feel like a couch. I'm not kidding. And remember, this was a couch that at one point in time we said was the best-driving car in the world.If that's not enough, I'll leave you with something 20-year veteran auto scribe and motorsports/track-driving aficionado Morrison wrote in his notes. "This might sound nuts," he said, "but I thought hard about it for several days after our PVOTY activities concluded: I'm not sure I've ever driven a better car. In my entire career."Nicely played, Porsche, and congrats on winning the first MotorTrend Performance Vehicle of the Year award. Now comes the hard part: Do it again next year. As I wrote before about the 991.2 GT3, "How do you take something with no apparent flaws, no visible weaknesses, and improve upon it anyway?" None of us knows the answer, but we're sure Preuninger and the gang have some ideas. We can't wait to test them out.POWERTRAIN/CHASSIS 2022 Porsche 911 GT3 SPECIFICATIONS DRIVETRAIN LAYOUT Rear-engine, RWD ENGINE TYPE Direct-injected DOHC 24-valve flat-6, alum block/heads DISPLACEMENT 3,996 cc/243.9 cu in COMPRESSION RATIO 13.3:1 POWER (SAE NET) 502 hp @ 8,400 rpm TORQUE (SAE NET) 346 lb-ft @ 6,100 rpm REDLINE 9,000 rpm WEIGHT TO POWER 6.4 lb/hp TRANSMISSION 6-speed manual AXLE/FINAL-DRIVE RATIO 3.09:1/2.72:1 SUSPENSION, FRONT; REAR Control arms, coil springs, adj shocks, anti-roll bar; multilink, coil springs, adj shocks, anti-roll bar STEERING RATIO 11.2-14.2:1 TURNS LOCK-TO-LOCK 2.4 BRAKES, F; R 16.1-in vented, drilled, carbon-ceramic disc; 15.4-in vented, drilled, carbon-ceramic disc WHEELS, F;R 9.5 x 20-in; 12.0 x 21-in forged aluminum TIRES, F;R 255/35R20 97Y; 315/30R21 105Y Michelin Pilot Sport Cup 2 R N0 DIMENSIONS WHEELBASE 96.7 TRACK, F/R 63.0/61.1 in LENGTH x WIDTH x HEIGHT 180.0 x 72.9 x 50.4 in TURNING CIRCLE 34.1 ft CURB WEIGHT (DIST F/R) 3,188 lb (40/60%) SEATING CAPACITY 2 HEADROOM, F/R 37.9/ — in LEGROOM, F/R 42.2/ — in SHOULDER ROOM, F/R 52.6/ — in CARGO VOLUME 4.6 cu ft TEST DATA ACCELERATION TO MPH 0-30 1.5 sec 0-40 2.0 0-50 2.8 0-60 3.4 0-70 4.2 0-80 5.2 0-90 6.2 0-100 7.3 PASSING, 45-65 MPH 1.5 QUARTER MILE 11.4 sec @ 126.0 mph BRAKING, 60-0 MPH 93 ft LATERAL ACCELERATION 1.19 g (avg) MT FIGURE EIGHT 22.1 sec @ 0.95 g (avg) TOP-GEAR REVS @ 60 MPH 2,500 rpm CONSUMER INFO BASE PRICE $164,150 PRICE AS TESTED $195,850 AIRBAGS 8: Dual front, front side, front curtain, front knee BASIC WARRANTY 4 yrs/50,000 miles POWERTRAIN WARRANTY 4 yrs/50,000 miles ROADSIDE ASSISTANCE 4 yrs/50,000 miles FUEL CAPACITY 23.7 gal EPA CITY/HWY/COMB ECON 14/18/16 mpg RECOMMENDED FUEL Unleaded premium ON SALE Now Show All
Don't hold your breath waiting for Tesla's rumored $25,000 electric car. "We are currently not working on the $25,000 car," Tesla CEO Elon Musk said during a call to report the automaker's stellar fourth-quarter and full-year earnings. The reason: He has too much on his plate.Hmmm. Well, he does have two new car plants, in Texas and Berlin, pumping out pre-production models and awaiting final certification to begin delivering salable vehicles to customers. And he said he will use this year to scout locations for even more plants and could announce decisions by the end of the year.But Tesla won't be introducing any new vehicles in 2022, Musk said. With parts shortages, adding new models would take away semiconductor chips and other key components from existing models that also need them. So, it's not just the $25,000 car we won't see this year, it's everything on your wish list, including the Cybertruck, Semi, or a new Roadster. The company hasn't rolled out an all-new nameplate since introducing the Model Y crossover in 2019.Tesla will "likely" introduce new models in 2023, Musk told investors on the call.The CEO did clarify that a battery shortage is not the reason for the much-delayed Cybertruck. The problem, it seems, is there is a lot of tech in the triangular truck and the company seems to think if it cannot be offered affordably, people won't buy it. Perhaps Musk fears shoppers might opt for a Ford F-150 Lighting or Chevrolet Silverado EV in the $42,000 price range instead? And it will take time to achieve economies of scale to help bring prices down. Musk said he wants to eventually make 250,000 Cybertrucks a year but it will "take a moment" to get to that level. Setting aside the tech involved in bringing a new electric pickup into this world—that kind of volume is tough for any new pickup truck; the truck market is notoriously harsh to newcomers. Just ask the Nissan Titan, Honda Ridgeline, and Toyota Tundra, none of which trade in the vast numbers of the Big Three's full-size trucks.Tesla is also busy working on Optimus Subprime, a robot that will move parts around the factory floor, a seeming distraction from, well, the obvious lack of new product.And there is this biggee: A self-driving car Elon says will be available this year. In fact, he will be shocked if it is not. And those who questioned any of his other product plans on the call were admonished for not understanding just how significant the self-driving capability is. Consider our wrists slapped. Also consider that this isn't the first time Tesla has claimed it would bring out a self-driving car soon—a breakthrough that, while promised in 2019, hasn't happened yet.
Earlier this month, we reported Ford's corporate offices had warned its dealers against demanding extra deposits or other payments on reservations for hotly anticipated vehicles like the upcoming F-150 Lightning. Now comes word GM sent a similar letter to its Chevrolet, GMC, Buick, and Cadillac dealers around the same time.Originally posted to Corvette Action Center and attributed to GM North America president Steve Carlisle, the letter has since been confirmed by GM as authentic. In it, Carlisle notes most dealers are playing fair, but says "a small number of dealers have engaged in practices that do not support a positive sales experience for our customers."Market Adjustments And Additional Dealer MarkupsCarlisle specifically calls out dealers demanding extra money beyond the cost of a reservation and or adding huge markups to the final vehicle cost. Known as "market adjustments" or Additional Dealer Markups" (ADMs), these surcharges are added to the price of the reservation and or the final price of the vehicle by the dealers and are pure profit.At the root of it are simple laws of supply and demand, exacerbated by plain old greed. These vehicles are highly anticipated and have either limited reservation slots available or long waiting lists. Dealers charge markups because, simply put, people are excited enough about the vehicles to pay whatever it takes. In some cases, this can mean tens of thousands of dollars or more above the Manufacturer's Suggested Retail Price (MSRP).Dealers can get away with this because they're effectively allowed to charge what the market will bear. The S in MSRP is critical: Thanks to strong state franchise laws pushed by dealers and their political allies, automakers cannot dictate the final sale price of a vehicle. That's why nearly all vehicle sales at dealerships are negotiations.Automakers Strike Back, Sort OfWhile GM can't tell its dealers what to charge for a car or prevent them from adding a markup, it does have some leverage. According to Carlisle's letter, Article 5 of the GM Dealer Sales and Service Agreement states "Dealer agrees to effectively, ethically and lawfully sell and promote the purchase, lease, and use of Products by consumers ..." and "Dealer agrees to advertise and conduct promotional activities that are lawful and enhance the reputation of Dealer, General Motors, and its Products. Dealer will not advertise or conduct promotional activities in a misleading or unethical manner, or that is harmful to the reputation of Dealer, General Motors, or its Products."In essence, Carlisle is saying demanding extra money on top of the mandatory reservation fee and adding markups to the final price could put the dealers in violation of their agreement. Carlisle specifically calls out dealers that tell customers an extra fee on top of the reservation price is mandatory to keep that reservation, which is not true under GM's reservation policies.As punishment, GM is threatening to take away an offending dealer's allocation of the vehicles in question and give it to another dealer that's following the rules. The offending dealer would still get its normal shipment of other vehicles, but would be cut off from receiving hot new vehicles to sell, such as Hummer EVs, Corvette ZO6s, Silverado EVs, and Lyriq EVs. The letter also threatens "other recourse prescribed by the Dealer Sales and Service Agreement" but does not specify what that would consist of.Closing The Broker LoopholeCarlisle also calls out dealers planning to sell hot new vehicles to independent brokers who will flip them for much higher prices. In such a scheme, the dealer would either sell the vehicle to the broker at an inflated price but not as high as what the broker can get from desperate customers, ensuring a profit on both sides, or receive a kickback when the broker resells the vehicle at a higher price.The letter reminds dealers that selling to brokers is specifically prohibited by the Dealer Sales and Service Agreement, which reads "Dealer agrees that it will not sell new Motor Vehicles for resale" and "Dealer is not authorized … to … sell Motor Vehicles to persons or parties (or their agents) engaged in the business of reselling, brokering (including but not limited to buying services) or wholesaling of Motor Vehicles."Dealers caught selling hot new vehicles to brokers and resellers will likewise have their allocations of those vehicles "redirected" to another dealer.No Restrictions On Private CustomersUnlike Ford, GM has not gone as far as to bar private buyers from reselling their vehicles for a profit. Ford has provided language for dealers to include in their sales agreements that requires customers to keep their vehicle for at least one full year before reselling it or face a lawsuit for breach of contract. This would prevent the average person from flipping their personal vehicle for a profit, at least for a year. GM has not yet provided such language to its dealers or addressed private resales so far as we know. https://www.motortrend.com/news/ford-warns-dealers-scalpers-about-f-150-lightning-sales/https://www.motortrend.com/news/2023-chevrolet-corvette-c8-z06-first-look-review/https://www.motortrend.com/news/2022-gmc-hummer-ev-pickup-pros-cons-review/https://www.motortrend.com/events/2024-chevrolet-silverado-electric-truck-first-look-review/https://www.motortrend.com/reviews/2023-cadillac-lyriq-first-look/https://www.motortrend.com/news/2022-ford-f-150-lightning-electric-first-look-review/
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