https://insideevs.com/reviews/805609/2027-bolt-ev-affordable-car-review/
EV evangelists and pundits have begged for more affordable options. We cried when the Chevy Bolt went away, and cheered when General Motors announced it was coming back. It arrived earlier this year to great reviews.
The sales results speak for themselves: We’re delusional.
Chevy sold just 4,224 Bolts in the first six months of the year. The company moved 16,249 examples of the more expensive Equinox EV, for example. And while it wasn’t on sale until January, with volume deliveries coming later, it’s hard to imagine this is purely a supply issue. Chevy has already announced the end of Bolt production, with the factory being retooled to produce gas-powered SUVs instead.
the base Bolt is the exact kind of practical, simple family hatchback that European and Asian buyers love.
But Americans don’t want their cars to be reasonable. They want ‘em big.
It just in most American DNA.
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Yes Americans with children, pets, and gear to bring along want a bigger vehicle. And the big three love them and find them profitable.
But it’s a mistake to say that is the only market. Plenty can use a smaller vehicle that is priced right to drive to work or school, etc. That segment should not be ignored. And ceding it to imports has historically been disaster. Full line companies need to participate in this sector too. And they should figure out how to do it profitably.
My thought is it makes little sense, until battery costs come down or companies develop specific technologies that drive it down. For now, the battery pack puts a floor at where profitability is even possible. Toyota makes a budget EV that sells at $34k and then an even slimmer version for the chinese market that is sub $20k in price. Profit margin is almost non existent with both of these vehicles.
Full line companies do need to streamline manufacturing and work toward developing advantages for the consumer in terms of overall features and quality, price, range and charging capability. However, I don’t think it requires participation in every market segment, particularly the low end and certainly not at a loss.
There is something definitely to this. No idea if it the leading cause or not but as a society, we do not prefer small(er) vehicles. It could be related to cheaper gas prices or it could be the distances we travel daily as well.
By contrast, the #1 selling car (2025) in Europe is the Dacia Sandero, a sub compact that is one of the cheapest cars on the market.
Of course, our top selling vehicle in 2025 was a Ford Truck - and roughly 35% of truck buyers never even use the bed and roughly 75% never tow anything behind it - so it is not a purchase based on utility.
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There are a number of reasons for Americans vehicles of choice. Much of it has nothing do with the mostly like use but the expectation of that use, even if infrequently or if it never occurs at all. These are financially large purchases. Brand, Image one wants to project and a whole host of factors play a part in the decision process. Beyond that, Americans on average have much higher disposable incomes and it affords them the ability to make choices that go beyond simply what might be practical.
I can’t believe the price of new trucks. My youngest son purchased a new vehicle, so I went with him to the dealership. As we were waiting, I looked at a new GMC truck. The list price was just over 100k. How can anyone justify spending that much for a truck? And then there’s the taxes and insurance that goes on forever after the purchase.
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The Journal has a piece today on “big” vs “small”: GM vs Toyota. It has nothing to do with EVs (well, if you extrapolate…) but it clearly shows where the market is going:
GM Ruled U.S. Auto Sales for 100 Years. Now Toyota Is Closing In.
The American automaker is increasing profits while selling fewer vehicles as its rival pursues an opposite approach
Gov. Gretchen Whitmer, donning a yellow safety vest and goggles, celebrated a ribbon-cutting at a once-imperiled factory this week in Lansing, Mich.
[General Motors] had scrapped its plans for the electric-vehicle battery plant, built with [LG Energy Solution], and sold its stake in 2024.
Now, the factory was starting production after [Toyota] agreed to shift a $1.5 billion order there.
It wasn’t lost on the crowd that batteries made at the plant would go to a Japanese rival, not hometown hero GM. When she was asked, Whitmer demurred: “My goal is always to make sure the investment happens here,” she said. “And that it ultimately produces good-paying jobs.”
Twenty years ago, GM sold twice as many cars and trucks in the U.S. as Toyota. Today that lead has dwindled to just over 100,000 vehicles through July. Toyota is quickly closing the sales gap with GM, threatening to end the American auto giant’s nearly 100-year reign atop the U.S. auto market.
Even [as the entire new-car market shrinks], GM stands out for selling fewer vehicles, following a strategic decision to kill off traditional sedans and hold the line on profits rather than chase volume with deals and discounts.
https://www.wsj.com/business/autos/us-auto-sales-general-motors-toyota-5cf821e5
Definitely a victory for short-term Detroit thinking, I guess.
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Yes, I wonder the same thing. The large size luxury SUV market is at a similar price threshold. I can’t personally justify the capital allocation, particularly on a new vehicle where the depreciation hit is the most significant. From what I understand, at least in the truck market, inventories have been swelling and there is some heavy discounting of vehicles. Still, it’s a purchase that is going to run $80-$90k plus.
There is a youtube channel that features a dealer in the exotic car market. They sell Bentley, Ferraris, lambo, and other high end brands. These vehicles run $100k to $300k and up. They said these vehicles are frequently financed rather than cash purchases. A sign it’s often a stretch purchase. I wonder if that’s something more unique to American Culture?
If fossil fuels are to go away at some time in the future all of us will drive EVs. That conclusion is inescapable unless we manage to create green alternatives. Hydrogen or synthetic fuels from carbon dioxide or vegetation (not necessarily fats and oils). All of these require massive investment in green energy.
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