Over the past year and recently there have been significant changes happening in the North American automotive sector. Other parts of the world have been ramping up the development of the Electric Vehicle, with a number of countries and cities proposing banning or limiting sales of fossil fueled powered vehicles to meet future Climate Accord CO2 emission reductions.
World wide we see that auto manufacturers are making the switch over to the development of the EV which will eventually replace the ICE (Internal Combustion Engine).
Industry involvement in promoting electric vehicles
“To meet future demand for EVs, auto manufacturers need to plan and gear up for the relevant changes to design and manufacturing processes. Normally, government calls for reduced vehicle emissions are met with resistance from the private sector. According to Winfried Hermann, transport minister for Stuttgart, “We say, clean up your technology, they say it is impossible.” Nevertheless, many automakers are now planning to sell most of their vehicle fleet in electric versions. According to Volvo’s CEO, the manufacturer aims for 50 percent of sales to be fully electric by 2025.
Other companies including BMW and Renault have committed to significant increases in EV production in the next two years and plan on a full transition in the near future. The PSA Group, which owns Peugeot and Citroen, stated its intentions to electrify 80 percent of its fleet for production by 2023, and Toyota is manufacturing its first fully electrified Prius to meet California’s updated vehicle standards for 2020. Toyota also announced it will be adding more than 10 EV models by the early 2020s, and has partnered with Panasonic to develop a new EV battery. Companies that have already produced fully electrified cars, such as Nissan, are setting the pace by providing more variety to make EVs appealing to consumers with diverse needs. Aston Martin, Jaguar, and Land Rover, producers of luxury cars, have also spoken publicly about their company goals to move toward electrifying vehicles. German-owned makers of Rolls-Royce and Mini Cooper vehicles plan to bring 25 electric models to market by 2025, in line with the goals that several European countries have targeted for the end of new ICE vehicle sales. Additionally, they hope to stay ahead of shifting market demands and the impending European target goals by increasing research and development spending to 7 billion euros. The largest auto manufacturer in Europe, Volkswagen, has pledged 20 billion euros for its electric car program, and its luxury brand Porsche, in collaboration with Audi, will release 20 electrified models by 2025. […]”
One recent report details statistics provided by the US EPA, where 15% of man-made carbon emissions are produced by the transportation sector, and the US transportation represents 27% of national carbon emissions.
Technological developments in renewable energy, energy storage and batteries, autonomous vehicles, Internet of Things, materials, and many other nascent and emerging sectors. Changes in society as more people congregate in cities while the baby boomer generation are departing from the consumer sector, and emerging Millenials are making new choices in spending and interaction with the world.