Rumors of $30 Honda EV Coming to USA

To avoid tariffs, of course, the smallest model in the Honda 0 series would be built in the US. It is expected to come to market as early as 2026.

Tesla just pointed out that cost of materials for EVs has come down significantly in recent quarters. Presumably, this is a trend Honda is seeing as well and the Japanese automaker feels confident it can capitalize on that by busting open a new segment on the bottom of the market.

1 Like

Meanwhile, the “big three” insist “no-one wants a little car. everyone wants big big big, so that is the only thing we want to build”

I have been gaming out how Ford will deal with the Mexican tariffs, if implemented. I’m sure Farley sees plenty of dollar signs.

Steve

1 Like

You are not the only one to notice that factoid.

Theoretically, legacy automakers don’t want the transition to electric vehicles to go too fast. They want to make the most money possible from existing fossil-fueled models and production lines for those models. The investments have been made — into R&D, production lines, supply chains, etc. Now automakers want to get maximum profit out of those models.

When it comes to electric vehicles, it takes a lot of investment to develop a new model, build the supply chain, create the production lines, and, importantly, get buyers aware of the vehicle and eager to buy it. Hence automakers using existing brands, like Mustang, F-150, Equinox, and Escalade. They have to balance pouring money into these new models and living off of the profits of the old fossil-fueled ones.

However, EV startups and EV-only companies want the transition to happen as fast as possible. That allows them to ramp up production and take more market share from their incumbent competitors.

What really doesn’t make sense from legacy automakers, though, is funding these disruptors — sending money to their enemies. However, that’s exactly what they are doing.

Tesla reported its 4th quarter finances today. Included in that, it noted $692 million in regulatory credits in the quarter, and about $2.8 billion across 2024

Legacy automakers don’t have to switch to 100% electric vehicles overnight, but by dragging their feet and sending so much cash money to Tesla and other EV leaders, they are digging their own grave. It’s just dumb.

1 Like

Re: cost of materials

We certainly know that lithium prices are way down. Copper doubtful. Steel maybe.

Is that enough to make a difference?

It isn’t just EVs. Automakers have been discontinuing their smaller, lower priced, ICE models as well. Remember the Fiesta, Focus, Fusion, Sonic, Cruze, Malibu, Impala? All gone.

Having dropped all their normal passenger cars, the bright spark that runs Ford wants to drop all of their smaller, two row, SUVs. Push everyone in to ever bigger, ever more expensive, cars, by taking away alternatives, so the company can take more money off them.

https://fordauthority.com/2023/02/ford-ceo-farley-says-company-is-done-with-two-row-ice-suvs/

Steve

You forgot the Chevette…and the Pinto!

Mike

https://www.motor1.com/news/747728/someone-paid-crazy-money-chevrolet-chevette/

$33000 for a Chevy Chevette

Of course, those models were replaced by better products, in the same segment.

The big three has done it to itself repeatedly: pushed bigger, more expensive, models, to take more money off their customers. Then, someone comes in to the low end market the big three don’t want, gets established, then moves into the big three’s core makret and eats their lunch. So the big three go crying to the government for protection.

I have been having a great time working out how the various automakers would be impacted by the promised tariff on Mexican products. By my estimate, Ford stands to make a packet. The Bronco Sport and Maverick are built in Mexico. Take them off the market, and Ford dealers will push prospects into the larger, US built, Bronco and Ranger, and take an extra $10K off their customers.

Steve

Then the finance companies take a bath when many of those approvals go belly-up in 1-3 yrs.