Everyone loves the Jeep Wrangler 4xe, Lucid needs a win, and Ferrari can’t lose. All that and more in this Friday edition of The Morning Shift for April 14, 2023.
1st Gear: It’s a Jeep Thing
What’s the best-selling plug-in hybrid in the United States? It’s not the Toyota Prius Prime, though it was the Prius Prime up until 2021, when the Wrangler 4xe showed up. Jeep has held the spot for the last two years, and its slice of the pie has only grown since then. From Automotive News:
Initially offered on the Wrangler High Altitude, Rubicon and Sahara, the 4xe quickly became the most popular PHEV, with 2021 sales of about 29,000, Stellantis said. It accounted for 14 percent of total U.S. Wrangler volume.
Sales surged to more than 43,000 vehicles last year, representing nearly a quarter of all Wranglers. [...]
Jeep’s entrenchment in the PHEV market has become even clearer this year. Wrangler 4xe sales increased 72 percent in the first quarter, representing 38 percent of the total for the nameplate, and it was joined at the top by another Jeep, the Grand Cherokee 4xe that went on sale in late 2022. Jeep sold 7,222 Grand Cherokee 4xe models in the quarter, accounting for 13 percent of that nameplate’s total volume.
Buyers of the two 4xe models can get a $7,500 federal tax credit only through Monday, April 17, when that amount is cut in half. Stellantis said the vehicles will remain eligible for up to $7,500 on leases.
As of February, a quarter of all plug-in hybrids sold through 2023 were Wranglers. The 4xe line is normalizing electrified off-roaders, and preparing Jeep for the arrival of the Recon, its first battery-electric SUV, next year. Data shows that plug-in hybrid owners are far more likely to buy a fully electric car as their next purchase, compared to owners of entirely internal-combustion-powered vehicles:
Jeep’s hybrid 4xe lineup could serve as a bridge to BEVs, said Thomas Libby, S&P Global Mobility’s associate director of industry analysis. The difference in the migration patterns to full EVs for households with conventional gasoline models and those that own PHEVs is drastic, he said.
Registration data for the fourth quarter of 2022 shows 5.1 percent of households with a gasoline-powered vehicle in the garage that were back in the market for a new vehicle bought a BEV. That percentage jumps to 29 percent among households with a PHEV.
The upshot is plenty more people considering electric or electrified cars that otherwise wouldn’t, which is a good thing. But it would be an even better thing if electric cars didn’t have to be big and mean to be palatable. The new Prius Prime looks breathtaking — people should buy those, too!
2nd Gear: Nissan Wants to Do This Itself
You may have heard over the last year or so that Nissan and Renault are working to hash out a fairer relationship, in which Renault doesn’t get to jerk Nissan around. That’s probably for the best, but even after all that is said and done, it’s become clear that Nissan really just wants to see other people. From Reuters:
Japan’s third-biggest automaker by sales is seeking a partner outside the auto industry to develop software that connects vehicles to cloud-based services, two people involved in discussions said, without elaborating on candidates. That would address a relative weakness for Nissan as it tries to make cars “smarter and more connected”, one of the people said.
It is also working on an expanded strategy for all-battery and plug-in EVs for North American and Asian markets that will be for Nissan alone, they said.
The revelations come as the alliance oversight board met this week to discuss a rebalance that will see Renault cut its stake in Nissan to 15% from 43% - matching the size of Nissan’s stake in Renault - and Nissan gain reciprocal voting rights.
As part of the new arrangement, Nissan will invest in Renault’s new EV unit, Ampere. But that’s all it will do. Nissan doesn’t want to raise the kid — just throw it some money on holidays and big life milestones.
Imbalance had long riled Nissan executives who complained Renault did not pay its fair share of costs for innovation and development. Nissan’s emerging strategy reflects a belief within the automaker that the 23-year-old alliance has run its course for many of the biggest challenges it faces, the people said.
While Nissan sees continued savings in shared parts procurement with Renault, it has no plan to provide engineering support to Ampere, said two of the people, who all asked not to be identified because talks between the pair are ongoing.
It also has no plan to provide its e-Power hybrid technology to a gasoline powertrain-focused joint venture Renault has with China’s Zhejiang Geely Holding Group Co Ltd and Saudi Aramco Base Oil Co JSC, two of the people said.
Nissan has a long, long way to go. But you don’t reinvent yourself overnight. Carlos Ghosn’s vision for two, totally integrated halves of a conglomerate in Europe and Asia has all but evaporated, but, in its place, the world might get Renault and Nissan products that actually take a damn risk again, and that’s nice to think about.
3rd Gear: Lucid Needs Luck
Last month, Lucid announced it’d be laying off 18 percent of its staff. This week marked the end of the first quarter, and it hasn’t brought good news. The startup underperformed analyst expectations of production and deliveries by about 1,200 and 500, respectively. From Reuters, by way of Automotive News:
The luxury electric car-maker late Thursday said it produced 2,314 vehicles and delivered 1,406 in the quarter ended Mar. 31, lower than the 3,493 vehicles produced and 1,932 delivered in the December quarter.
Lucid shares fell 6.8 percent in premarket trading on Friday. The company said it will report quarterly results on May 8.
The Newark, Calif.-based company, already battling supply chain and logistics issues, was hit by aggressive price cuts sparked by Tesla Inc. that lured consumers away from its luxury cars amid rising interest rates and high inflation.
In its full-year forecast released in February, the EV company estimated it will produce 10,000 to 14,000 luxury vehicles through the year, missing analysts estimate of 21,815 cars by a wide margin.
It’s hard to know when the skies will brighten for Lucid — a company that builds one of the prettiest cars on the road today that few people seem to want. But when your biggest competitor can just obliterate its pricing floor on a whim and you’re just getting started, how do you compete with that?
4th Gear: Everybody Wants a Ferrari
Ferrari chairman John Elkann told investors on Friday that Maranello’s order books are healthier than they’ve ever been, thanks in large part to its second plug-in hybrid (following the SF90) and first-ever SUV. From Reuters:
Elkann said the Italian company’s two latest models, the 296 GTS plug-in hybrid car and the Purosangue four-seater had boosted its product portfolio, “delivering a record number of orders well into 2024".
Ferrari has promised a total of 15 new models between 2023 and 2026, including its first full-electric car, which Elkann reiterated on Friday is expected in 2025.
The company has said that, while pursuing electrification, internal combustion engine (ICE) cars will still be part of its range for some years.
Chief Executive Benedetto Vigna last month welcomed the European Union’s plans to allow production of cars running on e-fuels beyond a formal 2035 deadline to end ICE car production, saying e-fuels would extend the life of combustion engines.
Vigna returned to the theme during Ferrari’s shareholders meeting on Friday.
“ICE still have a lot to give, and thanks to their higher energy efficiency and e-fuels, together with partners, we will develop solutions that will contribute meaningfully to decreased CO2 emissions,” he said.
Ferrari’s clients can afford all the synthetic fuel in the world, so Ferrari has every reason to be enthusiastic about the future. It always seems to be good news for Ferrari, all the time.
5th Gear: From Lexus to Zeekr
Geely’s Zeekr makes some of the best-looking EVs we can’t buy on this side of the pond. The brand has long been determined to take on legacy German luxury on its own turf. It’ll now attempt that with the help of Lexus’ old global marketing chief, Spiros Fotinos, who apparently joined the company’s European operation last fall without anyone noticing. From Reuters:
China’s Zeekr has hired a former Lexus executive to helm its operations in Europe, according to a memo seen by Reuters, as the electric vehicle (EV) maker plans to sell into the region later this year.
Spiros Fotinos, who spent 24 years with Toyota and led the brand management of Lexus globally, joined Zeekr in September as the chief executive officer of Zeekr Europe to oversee the brand’s operation in the region, the memo showed.
A Zeekr representative confirmed the appointment of Fotinos.
The previously unreported move underscores Zeekr’s efforts to establish a foothold in the premium EV segment in the home markets of BMW, Mercedes-Benz and Audi.
The Geely-owned brand said on Wednesday it planned to offer the SUV-styled Zeekr X and its Zeekr 001 EV sedan in western Europe. Zeekr previously said it would start delivering in Europe in the fourth quarter of this year.
Unsurprisingly, Zeekr currently has no plans to sell in the U.S. Can’t imagine why.
Reverse: The Most 2005 Television You Could Imagine
It was on this day in 2005 — 18 years ago — that the internet tells us the Pontiac Solstice starred in an episode of The Apprentice. In the episode, teams had to design a brochure for the roadster, while viewers were told to race to GM’s website to put their names down for the first 1,000 cars built. From the Chicago Tribune:
Pontiac will produce only 20,000 copies of Solstice annually and 2,000 of Pontiac’s 2,700 dealers are taking part in “The Apprentice” promotion.
The first 1,000 buyers get a certificate listing their Vehicle Identification Number, a dash badge with the VIN and a 1:18 scale model of the car with that VIN on it.
The first 1,000 can be ordered in any color and with any options, but they will have only a 5-speed manual transmission. The automatic won’t be available until early next year.
Solstice has been priced at $19,995, including $575 for freight. [Pontiac spokesman Jim] Hopson said dealers have been “strongly advised” not to sell those first 1,000 at a premium but noted that Pontiac can’t dictate what dealers charge.
Of course, you have to expect that at least one of those first 1,000 buyers will leave the dealer and head to their computer to list the car on eBay.
“Our goal is to generate excitement, not drive up the price, but if some move on to eBay, and I’m certain that’s likely, that’s up to them,” Hopson said.
See, Pontiac merely built the excitement. What customers did with the excitement after that point was up to them.
Neutral: The Sky Was Better
Saturn’s take on the formula always looked sharper to me, perhaps influenced by the fact it was marketed as an Opel in other parts of the world.
Anyway, it was a little toasty in the Northeast this past week! Funny how spring lasted like five days this year. What fun will you have in the sun this weekend, and will it involve a GM Kappa convertible?