2030 EV Deadline Pushes Automakers Into Making Costly Mistakes
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Climate change awareness is changing the way the world will drive in years to come. The transition from gas-powered cars to electric vehicles (EVs) is already underway. But the aggressive push toward the EV future doesn’t come without its problems.
Many automakers are eagerly embracing electric car technology in their upcoming model lineups. They’re spending billions of dollars to make the switch and help meet the Biden administration’s 2030 EV goals.
It turns out the learning curve for traditional automakers is more difficult than they first thought. Industry giants are scrambling to develop the best and most efficient battery technology while minimizing production costs. Automakers have faced several issues with developing EVs.
Why electric vehicles are the future of transportation
President Joe Biden made it clear. America will join in the robust global effort to curb greenhouse gases. His bold plan to make half of our new vehicles electric by 2030 was met with both praise and criticism. As the world ramps up efforts to combat climate change, automakers seem ready to rise to the occasion.
Fossil fuel-powered cars contribute 30% of the carbon emitted into the atmosphere, according to the EPA. Electric vehicles offer a viable solution that will allow Americans to stay on the road.
The popularity of EVs is growing among consumers as governments and automakers rush to reach a zero-emission future. But this major transition is no easy task. Costly mistakes and unexpected EV issues are proving to be more common than anticipated.
What kind of problems are automakers dealing with?
Automakers seem to be facing an uphill battle as they work to improve EV batteries. Tesla is a pioneer in developing EV technology, but the company has not been immune to setbacks. According to CNBC, here are some of the common problems that EV manufacturers are facing:
- Manufacturing defects and overheating during EV production have caused sudden fires.
- Several automakers have experienced battery charging issues, especially with hybrid models. Software and battery system problems are causing cars to lose power while driving.
- The COVID-19 pandemic has caused supply chain problems and a global shortage of semiconductor chips. As a result, vehicle production has been slowed.
The chip shortage has had a major impact on car prices and inventory for all types of vehicles, whether they’re gas-powered or electric. Tesla is rewriting some of its software to support alternative vehicle chips.
Car recalls show that EVs need more work
One of the most frustrating things for traditional automakers as they transition to electric cars is costly recalls. General Motors recently recalled 2017-2019 Chevrolet Bolt models for the second time. The recall was prompted by reports of battery cell fires, and cost the company an estimated $800 million.
Battery-pack fires were also cited as the reason for a major recall of the Hyundai Kona EV. The company stated that the recall would cost them around $900 million. Hyundai, along with battery-maker LG, decided to replace the batteries rather than try to solve software issues.
Last year, Ford’s European branch had to recall over 20,000 of its Kuga plug-in hybrids because of overheating batteries. The automaker spent $400 million to resolve the problem. Porsche just recalled the Taycan, its flagship electric model, for faulty software issues causing sudden shutdowns.
Recalls and mistakes are expected when new technology is introduced. For the automobile industry, meeting the 2030 EV deadline is turning out to be a costly endeavor.
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