How GM Made the $35,000 Chevrolet Equinox EV into a 319-Mile Range Champ

https://insideevs.com/news/720117/gm-equinox-affordable-tech-preview/

by peutetre • 2 years ago

46 68 2 years ago

Animats• 2 years ago

Nice. That's the business Chevrolet is supposed to be in. "Basic transportation", their ads once read. The push for "more crap per car" and higher margins has gotten completely out of hand.[1] Detroit is abandoning the rest of the world to China and hiding behind US tariffs.

If it were were not for the new 100% tariff on Chinese electric cars, we'd have $25,000 electrics from BYD and Nio in the US now. Like the rest of the world.

[1] https://www.washingtonpost.com/business/2024/05/18/china-us-...

teaearlgraycold• 2 years ago

If it were were not for the new 100% tariff on Chinese electric cars, we'd have $25,000 electrics from BYD and Nio in the US now.

Seems ridiculous that American manufacturers don't have to compete.

peutetre4• 2 years ago

It's not competition when it's not a level playing field.

European and American manufacturers don't get equal access to the Chinese market. Almost all of them have had to enter into partnerships with local Chinese companies with technology transfer agreements to get access to China.

China has subsidized its domestic car industry with cheap loans, cheap land, and direct subsidies for the last decade. What the tariffs do is balance the Chinese government's support of its local car industry:

https://www.nytimes.com/2024/05/14/business/china-exports-ma...

If anything tariffs should have been applied sooner.

dataviz10002• 2 years ago

Hopefully VinFast will start to introduce lower priced models sooner than later as they gain traction in the United States with their electric vehicles. Perhaps the tariff is to protect VinFast also and therefore US interests in Vietnam.

alephnerd3• 2 years ago

Vinfast has a kind of bleh reputation in VN as well (most Vinfast EVs I'd see in VN are bought by a taxi company that I think might be owned by VinGroup as well), and most US interests in VN use a Korean or Japanese proxy (like how they used to do it in China 20-30 years ago)

Perhaps the tariff is to protect VinFast also and therefore US interests in Vietnam

With To Lam as President now, I wouldn't be too hopeful. His rise right now is very similar to Xi's a decade ago.

He'll most likely leverage China to consolidate power, especially because a lot of the US detente was done by his rival's faction a decade ago.

Depends on how important the SCS issue is (US and Vietnam's Armed Forces have been very aligned on against China) versus authoritarian consolidation of power (China and factions of the VCP and MPS are aligned as they don't want a "Color Revolution"-lite like in Korea in the 1980s, Thailand in the 1990s, and CEE in the 90s-2000s. Also much of VN's leadership studied in Czecholovakia during the collapse of the Eastern Bloc).

Unlike Xi who started his career in the PLA under Geng Biao and had a shot at leadership track within it in the 1980s, the VN Military doesn't really like To Lam and the MPS in general.

Seriously hope I am wrong and overreading.

SubiculumCode4• 2 years ago

It's annoying that most cars today start in the 40's, what happened to basic budget cars? Personally, I just want a reliable and safe car, not a flashy one, and given the CA mortgage I carry, I have no interest in indulging in frivolous expenditures.

somerandomqaguy• 2 years ago

If I had a guess? A lot of people asking, "Why buy a new cheap car when you can spend the same money on one that's off a 2 year lease that is much nicer equipped?"

bagels• 2 years ago

Margins were too low and were not made up by sales, so most of the cheap (small) cars are simply not made. People want large cars.

itsoktocry8• 2 years ago

There are tons of cars under $40k, what do you mean?

Honda, Toyota, Mazda, Kia, Hyundai, Subaru, Nissan, GM, VW all make safe, basic cars well under $40k.

The Honda Accord is a perennial "10 best" selection, stars under $30k. Most cars in Consumer Reports cars of the year start under $25k.

glimshe• 2 years ago

I bought a brand new Mazda CX-5 last year for 29K - and not the most basic model. Very reliable and safe. Given our safety requirements nowadays (cameras, crash resistance, air bags), and technology expectations (CarPlay/Android Auto, Bluetooth, USB chargers), it will be hard to make a car for a lot less than that while remaining appealing for the average buyer.

Some people would be fine with a tiny barebones car, but that's a minority. I used to have one of these when living abroad and let tell you... It SUCKED. Uncomfortable and was not safe when compared even with a small sedan like the Jetta.

m_fayer• 2 years ago

Indeed. Here in Germany EVs are taking a beating and it seems that the political right wants to spin that as a wholesale rejection of the whole concept.

Whereas the reality is that the country’s proud megabrand (VW) has launched a ridiculous line of overpriced glitchfest EVs with unwanted faux-apple styling, then had a public meltdown about how no one wants to buy EVs.

Give me a reasonably priced and reasonably featured EV Caddy workhorse and I will buy one along with half this country.

rasz• 2 years ago

Article is about a car that doesnt exist yet. As stated in one of first comments under current cheapest Equinox sells at Tesla Y price.

asadotzler4• 2 years ago

More like $30K-$45 EVs from BYD. When you see the dollar price in China, double that to get the German or Australian prices and you could expect to pay at least that much in the US if BYD builds cars in the US or Mexico where labor and transportation prices will hike the price even further.

Another way to think about this is BYD will undercut Tesla by 10% to win market. If a Tesla is $40K, the BYD might be $36K. It will not be $25K because that would cost BYD $11K they didn't have to sacrifice to win the sale.

telotortium• 2 years ago

I mean, Detroit ceded “basic transportation” to the Japanese decades ago, because they suck at making it compared to Toyota and Honda. Comparative advantage is the only thing saving them.

NewJazz14• 2 years ago

They've literally never made a budget sedan EV. Looks like they are happy to let Hyundai and Tesla take that market, while they churn out SUVs?

Also the 35k trim won't be available until later this year.

pkulak2• 2 years ago

That market barely has room for the two players already there. Really, there isn’t even room for Hyundai.

NewJazz14• 2 years ago

Hyundai is doing pretty well [0].

Outside the US, Polestar and BYD are also selling well.

[0] https://www.motor1.com/news/714695/hyundai-evs-sales-spiked-...

diek• 2 years ago

They made the Bolt EV from 2016-2023, and they're revamping it to use the new Ultium platform.

You could buy a 2023 Bolt starting at $26,500, and they're great cars.

NewJazz14• 2 years ago

Bolt is not a sedan. It is a subcompact SUV.

mikepavone• 2 years ago

I love my Bolt, but it's not a sedan. That said, it's not terribly surprising GM is not interested in making an electric sedan given that it's been declining in popularity over time. Ford isn't even making any sedans at all apart from the Mustang.

SubiculumCode4• 2 years ago

It's too bad the 2023 Bolts are for the most part unavailable new, even though the used 2023 bolts have super low miles, and thus not qualified for the IRA rebate.

milleramp• 2 years ago

5 years ago after they cancelled the Volt, the Equinox with a hybrid voltec system would have been a massive hit. Perhaps they didn't want a hit because of the margins. At this point after seeing them backtrack on great cars like the volt and bolt, and what happened to the Blazer EV that was promised?? Call me skeptical, on this.

peutetre4• 2 years ago

what happened to the Blazer EV that was promised??

They started selling it: https://www.chevrolet.com/electric/blazer-ev

Edmunds review: https://www.youtube.com/watch?v=ErCaN1E6Ais

MotorTrend review: https://www.motortrend.com/reviews/2024-chevy-blazer-ev-firs...

Car and Driver overview: https://www.caranddriver.com/chevrolet/blazer-ev

inferiorhuman• 2 years ago

That's their MO. Release something rough around the edges, cancel it when they refine it and/or it gains traction. Don't forget the EV1, Fiero, Corvair, the Australian GTO/G8/SS/Caprice, the entire Saturn division, etc., etc.

They bailed on the American Caprice and ceded the market for big ass cop cars to Ford. LAPD liked theirs so much they refurbished them at least once instead of going with new Crown Vics.

NewJazz14• 2 years ago

They really fumbled their Voltec platform, and not having a smooth transition from BEV2 to Ultium is kinda annoying, but Ultium seems like a solid architecture with several vehicles built on it and either shipping or close to shipping (and not just GM vehicles!).

https://en.wikipedia.org/wiki/Ultium#Vehicles_using_Ultium

guesswho_• 2 years ago

Just copy BYD or subcontract them, price can go to 20k.

asadotzler4• 2 years ago

Not a chance. BYD cars outside of china sell for twice that.

hunglee22• 2 years ago

Excellent news. US auto can clearly build EV's, what is required is to do so for the mass market, rather than the luxury segment which is Tesla's core audience. Biden's adoption of the Great Wall of Tariffs will help protect the likes of GM further, so that they can continue to iterate and produce better, more affordable vehicles for the American consumer

NewJazz14• 2 years ago

Tariffs don't decrease prices for consumers, and they don't help GM compete in the international market.

bufferoverflow• 2 years ago

Tariffs help to fight the government-subsidized Chinese EVs. Prices of which are only low because the Chinese taxpayer is paying for the difference between the real price to produce and the sales price.

Without tariffs China can destroy every single US industry, one at a time, by flooding the marked with subsidized products.

hunglee22• 2 years ago

this is true, but it will provide US auto manufacturers protection from external competition, so increase the chances they will finally address the mainstream domestic market with lower cost - and lower margin - offerings. Tariff walls are standard practice to nurture currently weak domestic industries

SubiculumCode4• 2 years ago

I happen to be in the market for a cheap commuter after I realized I spent upwards of $400 per month on my used ICE vehicle. I'm trying to choose between an older $6000 used Chevy Spark, which would probably save me $350 a month, or a 2021/22 Bolt The silly Chevy 2024 pause on the Bolt means there aren't new ones really available for sale and the new car IRA rebate. I was even considering a late model Volt, which is just a great car, and a shame that it was cut.

hnav• 2 years ago

Which market are you in? There are still 100s of unsold Bolts E(U)V nationwide, I have about 30 within 50 miles of me.

DennisL123• 2 years ago

Announced. Not shipping.

bryanlarsen• 2 years ago

Right now you can lease either a Toyota bz4x or a Kona EV for $200 a month. That's significantly cheaper, 230 or 250 mile range and available now.

How GM Made the $35,000 Chevrolet Equinox EV into a 319-Mile Range Champ

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