GM has launched ‘EV Live’, a free online platform that connects electric vehicle owners or consumers who have questions about zero-emission cars and trucks with an expert who can answer them.
Courtesy: GM
DETROIT — Buying a vehicle has never been easier. But shoppers walking into brick-and-mortar dealerships for the foreseeable future may have a new challenge: An alphabet soup of electrified vehicle offerings.
As adoption of all-electric vehicles drags on in the U.S., automakers are increasingly releasing various hybrid vehicles as alternatives to EVs and traditional gas engines. The variety of models means more choice for customers, but also more complexity for automakers and consumers, many of whom are returning to the new vehicle market for the first time in years after unprecedented supply chain shortages and record used vehicle prices.
“More choice in the market is good for consumers, but only if they understand the differences,” he said Paul Waatti, director of industry analysis at AutoPacific. “There needs to be more clarity about what the terms and acronyms actually mean and what the potential benefits and drawbacks are.”
A car buyer today has his choice of traditional internal combustion engine (ICE) vehicles. mild hybrid electric vehicles (MHEVs); hybrid electric vehicles (HEVs); plug-in hybrid electric vehicles (PHEV). fuel cell electric vehicles (FCEVs) and battery electric vehicles (BEVs), commonly known as EVs. Also coming later this year from Stellandis: range-extended electric vehicles (REEVs) that are similar to plug-in hybrid vehicles, but can operate solely as an EV, with its electric motors powered by a gas engine.
Each type of vehicle may be best for a different type of customer. All but EVs and fuel cell vehicles continue to offer a traditional internal combustion engine combined with “electrified” technologies such as a battery or motor to help with performance or fuel economy.
Heather Seymour, from St. Johns, Florida, said he did a lot of research before purchasing a 2022 Jeep Wrangler Rubicon plug-in hybrid electric vehicle, known as the 4xe model.
“I knew I wanted to dip my toe in the hybrid water. I wasn’t ready to go all-electric, so the plug-in definitely interested me,” said Seymour, who said she typically uses the SUV’s all-electric range, except from longer trips. “The more we learned about it, the more we understood what we wanted.”
EV designation
While consumers may not need to know every acronym or technology to find the right model, automakers aren’t exactly helping the naming situation consumers face.
For example, Hyundai’s Genesis brand calls its all-electric vehicles “electrified,” while many others reserve that term for hybrids. Chrysler’s Pacifica minivan is a plug-in hybrid that qualifies as a regular “hybrid,” and Toyota markets some of its traditional hybrids as “hybrid electric vehicles.” Stellantis says its REEVs are not PHEVs, even though they work similarly.
“Each automaker uses different terms. There is no standardization, and that causes some confusion on the part of consumers,” Waatti said.
GM’s 2024 Chevrolet Equinox EV (right) next to a gas-powered Chevy Equinox on May 16, 2024 in Detroit.
Michael Wayland/CNBC
Some car manufacturers like General Motors Also use traditional nameplates like the Chevrolet Blazer and Equinox for new electric vehicles that share little to nothing with their gas-powered counterparts other than the name.
Stellantis Jeep also uses the “Wagoneer” name for two large gas-powered SUVs as well as a smaller, all-electric Wagoneer “S” SUV.
Jeep CEO Antonio Filosa said he is not concerned about any confusion as the brand has a strong name heritage and customers can decide which vehicle is best for their needs.
“I think we need education, but after education we have a lot of choices for the consumer,” he said in a recent interview. “It’s all for the benefit of the consumer. They’re going to have a lot of flexibility.”
Education is the key
One thing auto industry executives from Japan and South Korea to Detroit and Germany can agree on is the need for consumer education.
Whether the vehicles are electrified or fully electric, they are vital for automakers to meet stricter emissions and fuel economy targets, as well as scale production, lower prices and increase profits.
“We don’t want to force a customer to do something they’re not ready for,” Kia America vice president of marketing Russell Wager told CNBC earlier this year. “We try our best to educate them.”
2024 Jeep Wagoneer S EV
Jeep
Kia and its dealers have published myth-busting web pages to answer concerns or frequently asked questions about electrics and hybrids. They range from technical questions about batteries to practical questions like whether you can go from a car wash to an EV (you can).
GM took it a step further. The Detroit Auto Industry launched “EV Live” in 2022. It is an online video platform, now known as “GM Energy Live,” which allows attendees to interact one-on-one with EV experts and learn about electric vehicles and charging.
Ford Motor recently launched its own video-based training program aimed at more than 3,000 franchised dealers in the US to improve customer service, better employee engagement and give dealers and the company more data to help sell vehicles .
Auto industry executives say it’s up to the companies as well as their dealers to educate and educate themselves about the benefits of the vehicles, whatever they may be.
“Each customer, after all, is very different,” said Jérémie Papin, its president Nissan America, earlier this year. “I think it’s what the vehicle can do for them,” not necessarily how the technology works, he said.
Car alphabet soup
The automotive industry has more powertrain and “propulsion” options than ever before. Here is a breakdown:
- Internal combustion engine (ICE): A “traditional” vehicle with an engine powered by gasoline or diesel.
- Mild Hybrid Electric Vehicle (MHEV): An ICE vehicle that functions much like a non-hybrid vehicle, but may include minimal electrified features such as a small battery, regenerative braking, or an electric motor.
- Hybrid Electric Vehicle (HEV): Consider the Toyota Prius, a vehicle that has a hybrid powertrain combined with an engine.
- Plug-in Hybrid Electric Vehicle (PHEV): These vehicles have an internal combustion engine combined with a hybrid system, which includes a larger battery than traditional hybrid vehicles, as well as a plug to recharge the vehicle’s battery. They typically allow drivers to travel a certain number of miles using the battery before the engine is needed to power the car or truck.
- Battery Electric Vehicle (BEV): These pure electric vehicles do not have an internal combustion engine. Instead, they contain an electric motor powered by a large battery. They must be recharged using an outlet and charging port or a charging station.
- Fuel Cell Electric Vehicle (FCEV): Electric vehicles and hydrogen fuel cell equipment work like BEVs, but are powered by electricity produced from hydrogen and oxygen instead of clean batteries, which typically include lithium. They fill with a nozzle, similar to traditional gas and diesel vehicles.
- Range Extended Electric Vehicles (REEVs): This is an emerging technology that functions largely as a PHEV, however when the battery runs out to power the vehicle, a motor acts as a generator to power purely electric motors. The vehicle still drives like an EV instead of the engine directly feeding the vehicle’s motion.
Consumer adoption
According to Cox Automotive, 96% of those intending to buy a vehicle In the next 24 months they could be enticed to consider an EV earlier than a three to five year time frame if they had more knowledge of how EV ownership works.
That was the case for Seymour, a Florida resident, as well as Kevin Storimans, from Winnipeg, Canada, who rented a Jeep Wrangler 4xe plug-in. He said he wasn’t ready for an all-electric vehicle, so he decided to lease the plug-in as a way to save money on fuel and as a possible stepping stone to an EV.
“It’s the best of both worlds. You have your gas engine. You have some electric range,” said Storimans, who previously drove a Jeep with a V-8 engine. “Do your research. There is so much information and misinformation out there about PHEVs and EVs.”
According to Cox Automotive, consumers spend more time researching electric vehicles on average than traditional gas-powered vehicles. The company found approx 9 out of 10 EV buyers they already have a vehicle in mind to buy before they visit a dealership or order online.
“There’s a lot of information out there. It’s hard to explain,” said Stephanie Valdez Streaty. Cox Automotive director of the insights branch. “Education is so critical. It’s awareness, education and engagement for consumers.”
