🚀 November 14: Electric Shake-Ups & Sticker Shock

The Gist

The auto world’s a big swirl of new tech, green pledges, and surprising trends. Rivian and VW are tying the knot with a $5.8 billion venture aiming to bring fresh EVs by 2027, while Honda’s Prologue quietly edges into Tesla territory with a loyal fan base. Ford, on the other hand, is easing off its EV pedal as demand cools.

Price tags? Steady on the upswing—don’t expect budget cars back soon. Meanwhile, Japanese car enthusiasts are going full “American” with carefully curated car trash, and Stellantis is going green-diesel for fleets. Global drivers seem on board with EVs, but many still expect practical basics like solid charging options.

Fuel for Thought

• 🌐 Rivian & VW: A $5.8 Billion Duo

• 🌍 Rivian’s Eco-Push Goes Beyond EVs

  • Can an automaker really “save the world”?

  • Is Rivian just ‘greenwashing’?

• 🔋 Why Ford’s EV Production Just Hit Pause

  • What’s with the stop-and-start? Is Ford getting co …

  • Didn’t Ford just unveil these models?

• 📊 Vehicle Incentives Soar in October

  • Seasonal Sales Drive Higher Incentives

  • 🚗 Why American Car Prices Are Sky-High

  • Sticker Shock Is Here to Stay

• 🇯🇵 Japan’s USDM Love: Trash and All

  • American Culture, One Piece of Trash at a Time

  • 🛢 Stellantis Diesel Now Runs on Biofuel

  • Sustainable Diesel That’s Easy on the Air

• 🚙 Honda’s Prologue: The Quiet Tesla Challenger

• 🌍 Global Drivers Lean Toward an Electric Future

BUSINESS

🌐 Rivian & VW: A $5.8 Billion Duo

Rivian and Volkswagen’s joint venture just went up to $5.8 billion, merging Rivian’s tech with VW’s scale. Their software and electric architecture plan could reshape how both companies approach EVs, reaching drivers as early as 2027.

• Investment Hike: VW initially planned to invest $5 billion, but upped the stake to $5.8 billion to fund an expansive rollout, covering brands from Audi to VW’s Scout.

• Scope of Integration: Rivian's tech will be tailored for various VW models, from economy to luxury lines, with pilot software already tested on a VW prototype.

• Global Presence: Engineers from both companies are stationed in Palo Alto, with additional centers opening across North America and Europe.

• Financial Lifeline for Rivian: VW's capital infusion supports Rivian’s ramp-up of the R2 model in Illinois by 2026 and builds capacity for an upcoming midsize EV platform in Georgia.

🌍 Rivian’s Eco-Push Goes Beyond EVs

Rivian CEO RJ Scaringe’s recent call-to-action sounds more like a manifesto than a memo, doubling down on the company’s mission to fight climate change beyond manufacturing EVs.

Can an automaker really “save the world”?

It’s a tall order, but Scaringe insists that Rivian’s focus on eco-friendly practices, from renewable energy projects to animal-free interiors, positions the brand as more than a car company—it’s a clean energy advocate.

Is Rivian just ‘greenwashing’?

No cheap talk here. Rivian backs its ethos with utility-scale solar in Tennessee and renewable-powered charging stations. Scaringe argues that the EV transition is about more than business; it’s about survival, for our kids and beyond.

🔋 Why Ford’s EV Production Just Hit Pause

Market shifts have forced Ford to hit the brakes on some EV production lines. The decision underscores a cooling EV market and reveals deeper production and sales strategies.

What’s with the stop-and-start? Is Ford getting cold feet about EVs?

No one’s got the jitters, but the market has undeniably softened. Ford’s ramp-up was ambitious, so they’re now right-sizing to reflect what’s happening on the ground.

Didn’t Ford just unveil these models?

Yes, the Explorer Electric and Capri were fresh off the line. But the Cologne plant now has workers alternating weeks until demand picks up—or until new strategies take root. A $2 billion EV factory upgrade sits in idle until market demand justifies production.

📊 Vehicle Incentives Soar in October

Seasonal Sales Drive Higher Incentives

With year-end targets in sight, automakers are rolling out incentives to lure buyers, especially in competitive segments like full-size pickups and compact SUVs.

• New-Vehicle ATP: Average prices hovered around $48,623 in October, slightly up from last year but steady through most of 2024.

• Incentive Increase: Incentives hit 7.7% of ATP, a 60% year-over-year leap, helping move inventory.

• Full-Size Pickup Promos: Pickup prices dropped 1.3% from last year, with incentives averaging 8.7% of ATP.

• EV Incentives Surge: EV discounts averaged 13.7% of ATP, doubling from last year, pushing affordability for hesitant buyers.

🚗 Why American Car Prices Are Sky-High

Sticker Shock Is Here to Stay

Car prices are on a steady climb, with affordability taking a backseat to innovation and foreign competition. The last sub-$20k car, the Mitsubishi Mirage, highlights how prices have drifted out of reach for many.

• Pricing Surge: Over the last five years, prices jumped nearly 30%, with ATPs nearing $50,000.

• Global Competition: Chinese EV makers keep costs low by 30%, with no immediate fix for U.S. automakers despite trade tariffs.

• Changing Market Dynamics: With fewer budget-friendly models and the need to invest heavily in tech, American automakers struggle to keep pace without hurting profits.

🇯🇵 Japan’s USDM Love: Trash and All

American Culture, One Piece of Trash at a Time

The American car fandom is alive and well in Japan. JDM enthusiasts replicate the American experience, trash included, in their cars to embody the “real” American look.

• Trash as Décor: Japanese drivers lovingly curate coffee cups, fast-food wrappers, and even American parking stubs for “authenticity.”

• Beyond Trash: Some even import U.S.-made vehicles or modify Japanese models to mirror their American counterparts—right down to Walmart bags.

• What It Means: For Japanese enthusiasts, it’s about capturing American car culture, warts and all, with an eye for detail that’s both impressive and a little humbling.

🛢 Stellantis Diesel Now Runs on Biofuel

Sustainable Diesel That’s Easy on the Air

Stellantis has rolled out biofuel-compatible diesel engines to help fleets cut CO2 quickly, aiming to bridge the gap while the world transitions to fully electric solutions.

• Eco-Friendly Fuel: Hydrotreated vegetable oil (HVO) can now power Stellantis diesel engines, reducing CO2 emissions by up to 90%.

• Fleet-Ready: Fleet managers can keep costs low while lowering emissions without overhauling existing equipment, making it a cost-effective eco solution.

• Regional Nuances: While it won’t exempt vehicles from all emission charges, HVO fuel offers an appealing green alternative for businesses facing strict eco mandates.

🚙 Honda’s Prologue: The Quiet Tesla Challenger

Honda’s first electric SUV, the Prologue, has managed to sneak into the top 5 U.S. EVs, winning over loyal Honda drivers who were ready for an affordable Tesla alternative.

• A Loyal Following: Honda’s long-standing brand loyalty works its magic, with two-thirds of Prologue buyers already Honda owners, and nearly 80% new to EVs.

• Priced to Entice: Starting at $47,400, the Prologue competes with traditional Hondas and EVs alike, offering a well-rounded, no-fuss experience—buttons, knobs, and all.

• Market Impact: EV sales in the U.S. climbed 11% year-over-year in Q3, with the Prologue contributing to Tesla’s dip below 50% market share as new affordable options flood the market.

🌍 Global Drivers Lean Toward an Electric Future

Over half of drivers worldwide expect to switch to EVs in the next decade, with China leading the charge and the U.S. showing strong interest as well.

• Rising Global Demand: A recent survey by Accenture shows 57% of drivers globally, and 54% in the U.S., plan to own an EV within 10 years. Only 10-11% say they'll never go electric.

• Country Variances: China leads with 65% of drivers seeing EVs as the future, while Germany and France remain more cautious at 37% and 36%, respectively.

• Buyer Priorities: Top concerns include reliability, safety, and value—suggesting that today’s EV buyers prioritize traditional car factors over environmental motivations.

• Charging Expectations: 70% of surveyed drivers expect access to charging wherever they park, showing a need for widespread infrastructure to meet future EV demands.

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