I was surprised to read the headline because this is going in a different direction than most car companies. For example, VW, Ford, GM, and others have been axing electric vehicles that they started selling a few years ago. They discovered that most people who wanted EVs had already purchased them, and the rest of the market wasn't interested enough to pay the price premium.
Then I read the key quote and realized that Toyota isn't transforming the Corolla into an electric vehicle. They're simply going to offer an electric option. That's much less of an interesting headline, which explains why it wasn't chosen.
> “Whether it’s a battery EV, plug-in hybrid, hybrid, or internal combustion engine vehicle―whatever the power source―let’s make good-looking cars that everyone will want to drive!” Toyota’s CEO said at the Japan Mobility Show.
The US big 3 and VW canceled several EV product lines because the government policy flipped from subsidizing them to subsidizing ICE production. With the Iran war, the economics has shifted again and some of the products they canceled could have been made profitable, but it's too late for most of them now. This actually creates an opening for Rivian's downmarket R2 line expansion.
Meanwhile the Chinese companies are disrupting the overseas market for all of them (which is why Toyota is fretting). Many don't realize the disruptive potential of China's battery, EV, and solar panel supply chain combined with the oil shock - many subtropical countries are on the verge of flipping their economies to be linked to China's because of this. The long term consequences for American and European manufacturing supply chains will be major - not just in terms of present but future orders, since many of those countries are continuing to grow their consumer base faster than US/EU.
How are they subsidizing ICE production over EVs? Or is it just that the subsidies are easier to get if you don't need to include rare earth elements, which EVs require, in your inventory?
Yeah, the subsidies for ICE production are indirect:
- repealing CAFE standards penalties (freeing manufacturers to externalize the costs of their pollution)
- a more restrictive financing environment (no government guaranteed loans) for EV supply chain development, combined with
- consumer subsidies for domestically produced vehicles - but the domestic supply chain is not ready to support EVs without further investment
To their credit, they at least didn't yank all of the domestic battery manufacturing credits - though not for a lack of trying.
apparent · · focus · HN ↗
Then I read the key quote and realized that Toyota isn't transforming the Corolla into an electric vehicle. They're simply going to offer an electric option. That's much less of an interesting headline, which explains why it wasn't chosen.
> “Whether it’s a battery EV, plug-in hybrid, hybrid, or internal combustion engine vehicle―whatever the power source―let’s make good-looking cars that everyone will want to drive!” Toyota’s CEO said at the Japan Mobility Show.
ak217 · · focus · HN ↗
Meanwhile the Chinese companies are disrupting the overseas market for all of them (which is why Toyota is fretting). Many don't realize the disruptive potential of China's battery, EV, and solar panel supply chain combined with the oil shock - many subtropical countries are on the verge of flipping their economies to be linked to China's because of this. The long term consequences for American and European manufacturing supply chains will be major - not just in terms of present but future orders, since many of those countries are continuing to grow their consumer base faster than US/EU.
apparent · · focus · HN ↗
ninalanyon · · focus · HN ↗
ak217 · · focus · HN ↗
- repealing CAFE standards penalties (freeing manufacturers to externalize the costs of their pollution) - a more restrictive financing environment (no government guaranteed loans) for EV supply chain development, combined with
- consumer subsidies for domestically produced vehicles - but the domestic supply chain is not ready to support EVs without further investment
To their credit, they at least didn't yank all of the domestic battery manufacturing credits - though not for a lack of trying.