In my past life, I worked in IT, and in IT, all the support staff knew something nobody else wanted to talk about: No matter what you sell, your main product is support. Support is what makes it work when issues come up, support explains it when users get lost, and support is among the first questions people ask before buying into a new software solution.
Is the quality issue with EVs ONLY about the software, or is there a vacuum where people ready to support customers oughta be?
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According to JD Power's latest quality study, electric vehicles are experiencing significant quality issues, primarily due to software problems. The study, which measures problems per 100 (PP100) vehicles, found that EVs reported 266 PP100 compared to 180 PP100 for ICE vehicles. These issues are concentrated in advanced tech features rather than mechanical components, presenting a unique challenge for the automotive industry.
Despite these challenges, some brands continue to excel in quality. Maintaining high-quality standards becomes crucial as the automotive industry increasingly integrates complex tech into vehicles. Dealers should consider addressing software issues and improving customer support for tech-related problems to enhance overall vehicle satisfaction and brand loyalty.
After navigating the bumpy road of software issues, let's take a moment to look at some victories, innovations, and announcements.
Hyundai's Victory at Pikes Peak
Hyundai's Ioniq 5 N, developed in six months, shattered Tesla's record at the Pikes Peak International Hill Climb. Pro driver Dani Sordo achieved a remarkable 9:30.852 run, demonstrating the Ioniq 5 N's superior cooling and performance capabilities.
Toyota's Autonomous EV for China
Toyota will launch its first EV with advanced autonomous driving in China 2025. Partnering with Guangzhou Automobile Group and using Huawei's software, the Bozhi 3X SUV aims to restore Toyota's market share with cutting-edge technology and cost-effective batteries.
Volvo Feature Delay Email
Volvo's EX90 will miss several features at launch due to software issues. Owners may experience delays in wireless Apple CarPlay, bidirectional charging, and certain safety features, with updates expected post-delivery to address these gaps.
Volkswagen's recent $5 billion investment in Rivian has sparked curiosity about the future of Scout Motors, VW's electric SUV project. Despite similarities between Scout and Rivian's products, VW assures that Scout's development remains on track for its 2026 launch.
So... is Scout Motors affected by the Rivian deal? No, VW assures that Scout's development remains on track for its 2026 launch.
Volkswagen's Head of Strategy and Finance Communications, Christopher Hauss, emphasized that the collaboration with Rivian is focused on software development, benefiting both companies without altering Scout's trajectory. This partnership aims to leverage Rivian's software and electrical architecture expertise to enhance VW's capabilities.
Notes:
This strategic collaboration between VW and Rivian is a significant move in the EV industry. It showcases a blend of legacy automaker stability and startup innovation. Let's break down the benefits and implications of this partnership.
An initial $1 billion investment, with a further $4 billion over time, focusing on improving software and EV architecture.
Benefits:
Joint Goals:
Key Points:
Rivian's investor day further underscored the company's commitment to cost reduction and efficiency improvements. CEO RJ Scaringe outlined plans to achieve profitability by 2027, focusing on significant material cost reductions for current and future models. The VW investment strengthens Rivian's balance sheet, aiding the production ramp-up for its R2 vehicles by 2026.
Achieving profitability by 2027 through significant material cost reductions and streamlined manufacturing processes.
Investors are hype:
Rivian is focused:
Some other deets from the investor call:
The collaboration between VW and Rivian, as well as Rivian's focus on cost and efficiency, presents a promising outlook for the EV market. Dealers should prepare for a wave of innovative and cost-effective EV models, ensuring they stay ahead in the competitive landscape by emphasizing the advanced features and reliability of upcoming products.
Polestar's revenue dropped from $2.45 billion in 2022 to $2.38 billion in 2023, with net losses widening to $1.17 billion. The decline is due to reduced demand for higher-priced models and lower sales of carbon credits. Despite these challenges, Polestar introduced a more affordable Polestar 3 Long Range Single Motor model to boost sales and expand its market presence.
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