GM Estimates That EVs Will Soon Cost The Same As ICE Vehicles
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GM just released a new episode of its educational EV web series in South America, claiming that EVs will soon cost the same as equivalent internal combustion vehicles.
The automaker estimates that the price of electric vehicle batteries will continue to fall in the short and medium term, as the development of new, more sustainable chemical compounds advances and zero-emission vehicles are produced on a larger scale. This will allow EVs to soon benefit from a lower production cost that translates into a final price equivalent to a combustion vehicle of similar size and characteristics.
Ultium Battery technology
According to market studies cited by the company, the average battery cost per kWh has almost halved in the last five years and is expected to drop another 30 percent by the middle of this decade, thanks to progressing technology and further deployment of EV models around the world. In this sense, GM projects that the new-generation Ultium batteries will cost 40 percent less per kWh than those previously designed.
This significant reduction in battery costs – coupled with increased model offerings, large investments in charging infrastructure and stricter emissions laws – has made the electric vehicle segment already the fastest growing in the global automotive market and manufacturers are able to offer models that are increasingly affordable.
In fact, GM revealed that it is already working on the next evolution of Ultium battery packs with an even more advanced composition so that its electric vehicles have a total cost of ownership compatible with higher-volume combustion models. This is expected to happen from the second half of this decade in all market segments, including compact vehicles designed for South America.
GM is paving the way for a larger rollout of EVs in South America, where it aims to lead the zero-emissions market and make Chevrolet the brand with the most comprehensive lineup of all-electric vehicles. In June, the company announced the three Chevy electric vehicles it will launch in the region starting this year, including the Bolt EUV as well as the upcoming Chevy Blazer EV and Equinox EV powered by Ultium technology.
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Big difference between manufacturing cost and retail cost. I don’t see gm passing savings on to consumers especially with the government subsidizing purchases.
Sure thing GM…..keep jacking up costs of ICE vehicles every year until when ready to go full electric you can say “See, they are the same price”
The one thing that’s scaring me away (other than the fires) is the battery cost. I can stomach a catastrophic $5,000 repair fee. Maybe even $8-$9,000, but a potential bill of $14,000-$18,000 for a new battery is too much sticker shock for me.
Well first off you can stop with the fire worry since that was a specific manufacturing flaw by an outside supplier on a battery that’s no longer in use (except for the Bolts still to be built).
Second, you will likely never have to replace your battery out of warranty unless you think you’re still going to have the same EV 15 years from now in which case a new $18k battery will be cheaper than a new EV. The only maintenance you’re going to have to worry about are brakes and tires. You won’t even have to change the oil.
It’s not just the Bolt. Many lithium ion batteries experience fires, including the Kona, Teslas, and even the Boeing 787 Dreamliner. Lithium fires are a real problem, but I’m not demanding they’re all banned. I simply acknowledge there’s risk and that it factors into my decision to purchase one. That is my right as a consumer to feel that way.
As for replacing the battery, you’re missing the point. Not everyone has $18,000 in cash to repair their vehicle, and who wants to buy your $10,000 used car that needs an $18,000 battery to operate again? Yes, maintenance is supposed to be cheaper. Consumer Reports estimates savings to be $4,600 for the life of the EV, but if you have to pay $18,000 in catastrophic repairs, then you’ve *lost* $13,400. This feels more like Russian roulette.
There are many reports of owners facing an exorbitant sticker shock for a vehicle that was working just the other day. One Volt user this year saw a dealership quote him $30,000 for a battery replacement. They must come down in price to be a reasonable purchase. Otherwise you will have quite a few irate consumers decide EVs are not for them.
You probably have an iPhone in your pocket with lithium batteries and rarely give thought to fire risk. Not saying you should be logically consistent in this regard but at least more open to the idea that batteries can be safe and reliable.
Watch the news.
No
Batteries belong in kids toys not VEHICLES !!! GO GREEN MY A..!!
Only if you stop farting Bob.
Clearly….those Denali EV reservations went so fast…just a bargain at 100+k a unit….the gap is closing!!
Look the fires are not as common as you think but they make news when they do happen.
The replacment will go down as new batteries reduce cost with cheaper materials.
Note to unlike Tesla where you have to replace the entire pack. GM has replaceable cells so you would only need to replace the bad one. You can even upgrade to new batteries as GM developed them.
Battery replacements will be about as common as Engine replacements.
Odds are good the vehicle will be pretty worn out by the time a full cell needs replaced.
Now the real concern I have is how will a 5 year old car do for resell? Most people will want the latest tech like the latest I phone. No one wants a IPhone 9.
Their will be some changes to the used market.
If it still works , why fix it? If it works ,why spend $thousands of dollars just to Flaunt it an show what I got?
I estimate that I will be dating Monica Belluci by the year 3000.
ok… your taste, comprehend but she is ugly… would give her to you just now…. try an Aurora Mohn… then maybe you can put year 4000
There is no “equivalency” between an ICEV and an EV of the same features or options., only similarity. Besides,there are ICEVs that cost more than a similar EV. The correct view between them is the higher initial cost of such EV but then you add the lower TCO in the next ten years or more as an EV can be operational for much longer time than an ICEV. So those who buy an EV pay more now but save thousands a year later on. I prefer to pay now more and not pay anything else as money is worth lesser per year in the future.
How do you figure that an RV can be operational for a much longer time than an ICE vehicle and at what cost?
EV, sorry for the autocorrect typo, thanks Apple.
Your logic is backwards. If money is worth less in the future, you want to differ spending so you hold on to the valuable bucks now, and spend the worthless ones. Thats why borrowers are at an advantage during high inflation (pay back with lesser valued money than your borrowed)
Since the time value of money has been raised, the Present Value cost of a EV over 10 years allowing for the dismal resell value is less attractive when the cost difference of the initial purchase of an ICE, placed into a ROTH IRA will prove more attractive. Most ICE cars have a longer useful life than 12 years and require little more maintenance of the power plant than belts and oil. EV maintenance is not inconsequential either.
Is that with or without the government enticements? Either way, they’re still too inconvenient for me to seriously consider as an ICE replacement. Still just toys for the rich and woke virtue signalers, IMHO.
Well when you factor in Mary’s constant prices increases on current iCE vehicles that can happen several times a month and the governments never ending incentives that could be the case. But EV prices are not going to go down from what you see today unless the vehicle is smaller and has less equipment ot compensate.
Battery technology needs a A monumental breakthrough to compete with IC vehicles! These are 60k golf carts!
Golf carts are way over priced also, but look who has them on a cola course! They are the same ones that doesn’t care about the price of gas m groceries or utilities!! They have the money, not like most people! I hope they can pay to have the electric service updated so they can charge the electric car an pay the electric bill an hope the HELL the power doesn’t go out. When I drive down the road an see one of those electric cars on the side of the os dead the 4ways won’t even work an a spare gas can in the truck, you can’t put electric in a gas can. ILL TOOT THE HORN AN WAVE AS I GO DOWN THE ROAR!!
Hmnn, let me see, gm dropped the price of the Bolt EV and EUV by about six thousand but gm is not lowering the cost? In 2017 the price of a Bolt was $40,000 but now it’s around $25,000. And before the trolls start screaming “fire” if I’m not mistaken there hasn’t been one battery fire since gm got serious about fixing their mistake.
Also, has anyone seen a Bolt catch fire that was in salt water after Hurricane Ian? I may be wrong and I apologize to all but I cannot find one news story about a Bolt only Teslas.
Bingo!!! ^^^^^^^
I see here that we have the same I-don’t-like-EVs-so-that-technology-will-never-be-viable defeatism whereby human ingenuity and smarts suddenly disappear for everything and anything that people with such attitudes don’t like. And their only comeback is ad hominem.
Technological progress would never have happened if inventors and marketers listened to those people.
The average family cannot afford a $60,000 car or truck. On a 5 year loan the monthly payment would exceed $1,000 and the warranty would expire after 3 years in most cases.
Who gives a sh!t if battery care will end up costing the same as a ICE car? What if do not Want your sucky battery cars? Are you going to force them down our throats whether we want them or not? GM is Not the only car maker out there, what they don’t realize is how much buissness they will Lose. As of now, America is Not a communist country, we still have freedom of choice . You can keep your gadgets, do Not want one ever, even if it is for Free
Nailed it!
I don’t see the price of the EV’s coming down at all. As long as foolish people pay those foolish prices why would they. I do see the mfgs raising their ICE vehicle prices to match the EV’s so you get soaked buying either one. It’s a win-win for the mfgs. The cost of vehicles escalating has far surpassed the cost of living raises most people get, if they even get one?
It took a long time for ICE cars to be more economical than horses for the average joe, but it clearly happened. Cars used to be a novelty item for the rich. We are currently seeing that with EVs. The technology needs to be improved, supply chains need to be simplified, and we need to get them to where we do not have to rely on China for materials and manufacturing. Oh yea… and when we don’t have to rely on the same fossil fuels to charge the things. It will all happen some day, just not soon.
Whats missing in this conversation is not the economical penalty but the environmental penalty of continuing to own a ICE. Like it not, climate change warnings have been circulated since the early 2000s… Inconvenient Truth in 2006 spelled it out.. we are the problem and continuing our current course only means humans are meant to destroy ourselves. Something has to be done, and humans have to do it. If not electric, then what? ICE is doomed…get over it.. adjust, adapt, but do something
Can’t believe all the people that think mankind has caused all the climate bullsh!t the green people thrive on. Get a grip people. The weather changes daily, weekly, monthly, yearly, centuries and so on. The Hudson Bay froze over a few hundred years ago! Guess that was man made? All those Jets flying overhead I guess?? Oh wait, that theory won’t float!😂 Volcanoes spew more pollution than mankind ever will. The green people are as dumb as the hippies of the 60’s.
add the 11yr solar cycle to the list! These Woke morons are a lot more dangerous than the Hippies 😼
We plan to continue with both ICE and EV vehicles. We currently have a Tesla, a Honda Pilot and a RAM 1500. Since we tow a horse trailer, no plans for an EV truck. Tesla is a decent car but not a good quality car. Lots of details like fit and finish need improvement.
I don’t believe that EV and ICE will equal out in price in the next few years. Exotic materials will still cost more for EVs.
The big story is going to be the casualties among manufacturers of EVs.