New vs Old Carmakers: Who Will Survive?
The list of established automotive manufactures rarely seems to change – it’s a hard industry to break into. But, between established manufacturers falling behind the curve and new ones nipping at their heels, the automotive landscape could be set to change.
Before the EV boom, while not impossible, it was incredibly difficult to enter the automotive market with a new and competitive brand. The market was saturated with established, global manufacturers. Now, however, new manufacturers are popping up and focused solely on the EV industry.
Lucid Motors was founded in 2007 and is based in California. Originally, Lucid Motors developed battery technology but it made its first aluminum prototype EV in 2014, although that never went into production.
The ‘Lucid Air‘ was unveiled in December 2016 and is planned to be released to the public in 2019.
Faraday Future was established in 2014 and, like Lucid Motors, is an EV producer based in California. At the Consumer Electronics Show (CES) in January 2016, the company unveiled its first concept vehicle, the FF ZERO1.
Then, at the same show in 2017 Faraday Future debuted its first production EV, the FF 91 – first deliveries are expected in 2018.
Another California based manufacturer, Fisker Automotive, was established in 2007. A mixture of bad luck and bad management led Fisker to bankruptcy in 2013. But the company’s assets were quickly bought up and production started again in 2014.
Since its assets were bought, Fisker has been working on its latest EV, the EMotion, which will be shown at the 2018 CES. The EMotion promises to have a 400-mile range and a 9-minute charge will give it a 125-mile range. A base price of $129,900 means the EMotion is likely to go head-to-head with Tesla’s Model S.
Yes, Tesla is a well-known highly competitive company, leading many to forget it only launched its first EV in 2008. The company was created just 13 years ago and is now, arguably, the most well-recognized manufacturer of EVs in the world.
Compared to manufacturers like Ford, BMW, Chevrolet – all of which have been around for over 100 years – Tesla is in its infancy.
Although Tesla is a young company, competing with the most well-established automotive manufacturers, it’s had a meteoric rise to success. And it now has one of the highest market capitalization values in the automotive industry.
More Manufacturers to Come
Over the last 10 years, we’ve seen a number of new electric vehicle manufacturers on the scene. This number looks set to keep rising, as more companies show an interest in entering the EV market.
Dyson is investing $2.7 billion in the hopes of building their first EV by 2020. Between bagless vacuums and bladeless fans, Dyson is well known for its innovative technology. It’s unknown whether or not Dyson can apply this ingenuity to an EV, but it’s an exciting prospect.
Many manufacturers, like BMW and Chevrolet, have been doing enough to keep up with the competition from Tesla. The same isn’t true for all established manufacturers, however.
Honda, one of the worlds leading automotive manufacturers, is committed to making strides in the EV market. Over the last 10 years, it focused primarily on hydrogen fuel cell technology and, as a result, got left behind by its competitors.
By 2019, Honda plans to produce the Urban EV, a concept car shown at the 2017 Frankfurt Auto Show.
Ex-Ford CEO, Mark Fields, was dismissed in May for not focusing on the future of EVs and autonomous vehicles. Ford is looking to the future now, however, and plans to release 13 vehicles over the next five years.
Ford’s ability to pull this off highlights the advantage established manufacturers have – massive amounts of resources.
The question is, do new manufacturers focused on EVs really have a chance to enter the market and shake things up? Or do established manufacturers simply have the financial resources to retake control whenever they see fit?
Drive Sustainably is a new partnership between leading automakers trying to ethically source conflict minerals.
Find out how the Tesla Model 3 compares to its competition in the electric vehicle industry.