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Electric vehicles now make up 9% of the global market, and 4.5% of American auto sales. Estimates vary, but many analysts expect electric vehicle sales to reach 40% market share in 2030. Will their crystal ball prove correct? It’s now looking possible. New data from the International Energy Agency beat previous forecasts by 26%. In 2020, Loren McDonald of EVAdoption predicted that electric vehicle sales would make up 3.55% of the US market in 2021. With the official tally now coming in a full percentage point higher, the electric momentum is accelerating. When the chip shortage finally ends, the production of EVs will likely be prioritized by automakers. Considering the massive half-trillion dollar investments OEMs have committed to electrifying their lineups, I’m sure they’re happy to see that there’s a growing market for their future products.
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Tesla Supercharger Installations Can’t Keep Up With Incredible Demand
Tesla’s pioneering Supercharger network of DC fast chargers remains the industry standard for electric vehicle charging. With 3,476 locations, hassle-free plug-and-charge and consistent reliability, only Electrify America has come remotely close to what Tesla offers. For the past decade, Superchargers have been known for convenience and accessibility, but a few pending developments could change that. Here’s what we’re watching:
Sales Continue to Outpace Charger Installations
Tesla continues to dominate electric vehicle sales in America and abroad. In 2021, Tesla year-over-year sales grew 87% to 936,172 vehicles globally. In the United States, Cox Automotive estimates that Tesla delivered 352,472 vehicles to customers. Tesla’s 2021 sales were enough to (probably) unseat BMW as luxury sales leader in the US.
In 2021, Tesla installed 8,221 new Superchargers at 912 stations around the world. This represents 35% growth in just one year, a huge accomplishment for the EV leader. However, will it be enough? Sales have been outpacing Supercharger growth for years now. The vast majority of charging stations never see a crowd, but that could change soon as Tesla’s zero-hassle sales model and superior technology have drawn more buyers to the brand.
Tesla CEO Elon Musk confused Tesla owners and thrilled non-Tesla owners when he shared the company’s intentions to open up some Superchargers to non-Tesla cars. In early 2022, several Supercharger locations in France, Norway and the Netherlands are open to all. If open access spreads to North America, Superchargers will see a flood of traffic as Ford Mustang Mach-E’s, Volkswagen ID.4’s, Hyundai IONIQ 5’s and dozens of other models gain access to America’s largest fast charging network.
Electrify America Races to Catch Up
Something positive came out of Volkswagen’s dieselgate debacle. As part of a 2016 settlement with the United States Environmental Protection Agency and the California Air Resources Board, VW was ordered to spend $2 billion on something that would clean up the air. The result was the birth of Electrify America.
After installing their first chargers in 2018, Electrify America now has 3,500 charging stations at 800 locations around the US. The big difference between Electrify America and Tesla Superchargers is accessibility. Any electric vehicle can pull up to an EA station to charge. Only Tesla models are allowed to charge at Superchargers, except for select Superchargers in Europe that are open to all.
Electrify America has its faults though. Drivers often encounter out-of-order chargers, and most vehicles are not yet compatible with the convenient plug-and-charge capability that you’ll find at Tesla Superchargers. Reports indicate that reliability is improving at Electrify America, and several automakers say their new EVs will have seamless plug-and-charge capability.
What Does the Future Hold?
Tesla’s record growth is great news for the automaker, but the picture is more complicated for Tesla owners. Tesla Superchargers in California and East Coast hotspots already fill up during peak travel. You could argue that gas stations do too, but waiting in line to plug in and then wait another 20 minutes to charge is not the same thing.
Some gas stations are getting into the charging game. Why don’t more add DC fast chargers to their parking lots? DC fast charger installation is expensive. We’re talking over $100,000 in most cases. Public-private partnerships appear set on helping businesses overcome the prohibitive costs of installing chargers. That would certainly benefit a rapidly electrifying nation of drivers.
Let us know what you think in the comments below. Better yet, connect with auto experts and fellow car enthusiasts at caredge.kinsta.cloud/community, where we work for YOU.
Over the past year, electric trucks have gone from nothing to the most-watched vehicle segment on the planet. Back in the pre-pandemic good ol’ days of 2019, electric trucks were relegated to the concepts of startup fantasies like Rivian, Nikola and Bollinger. Tesla’s Cybertruck was the first to be unveiled in November of 2019, however it’s still at least a year away from production. In 2022, buyers have two to choose from: The $100,000+ GMC Hummer EV, and the mid-size luxury-oriented Rivian R1T, which starts over $70,000. Electric trucks have remained out of reach for the average consumer.
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This is where Ford has a chance to really make a splash in the market. With the best-selling F-150 being the unofficial symbol of working America, it’s only natural that the F-150 gets the honor of being the first electric truck for the masses. Even better, it’s going to offer features and utility that no truck has ever seen before. The anticipation is building.
The 2022 Ford F-150 Lightning may not turn heads like the Cybertruck, but the Lightning’s capabilities are astounding. What exactly makes the F-150 Lightning so innovative, and will it overtake Tesla as the face of electric trucks?
Here’s What Stands Out With the F-150 Lightning
It’s the most powerful F-150 ever
You can power tools, other EVs and even your entire home with the truck
The Lightning looks normal, but features state-of-the-art technology
The front trunk is bigger than most regular trunks
320 miles of range
2022 F-150 Lightning pricing won’t break the bank
The 2022 F-150 Lightning Reimagines Truck Capability
2022 Ford F-150 Lightning Platinum.
Look, I get it. Most traditional truck buyers don’t follow the latest and greatest in the EV space. What does matter, however, is the utility of the truck they drive. Can it get the job done reliably?
Ford’s most anticipated electric vehicle is not the Mustang Mach-E. It’s not an electric Explorer. It’s without a doubt the 2022 F-150 Lightning electric truck. For well over 30 years, the F-150 has been the best-selling vehicle in America. Now that Ford expects 40% to 50% of its global sales to be fully electric by 2030, how does the F-150 fit into the picture?
Ford has made it clear that they intend to entice traditional truck buyers into an electric F-150, while also attracting new consumers to the brand. So far, it seems to be working like a charm. As of January 2022, Ford has 200,000 reservations for the F-150 Lightning in the books. This truck hasn’t even entered series production yet and it’s already sold out until 2024.
Light Bars and Typical F-150 Looks
On the exterior, the Lightning looks a lot like a combustion-powered F-150. The distinguishing features are daytime-running light bars across the top of the front grille and across the tailgate in the back. The Lightning also has aero wheel options to improve efficiency for maximum range. They don’t look silly like some aero wheels do. Other than that, you really have to stare at it to notice the Lightning is any different. Three new faux grille options are there for looks. With an EV, the grille merely protects the spacious front trunk.
The charge port right in front of the driver’s door doubles as a name plate. Ford intentionally designed the exterior to appeal to traditional truck buyers. Not everyone wants a spaceship.
Interior: A Huge Touchscreen Tops Off a Classic Interior
2022 Ford F-150 Lightning Platinum.
The F-150 Lightning is only offered in crew cab configurations. The interior dimensions are the same as the gas-powered F-150, but that’s a compliment. Plenty of space up front, and lots in the back. Up front, the biggest difference is the 15.5” infotainment screen. It’s only in the higher trims of the Lightning for now, but it’s probably a sign of what’s to come for the whole lineup. Everything from drive modes to towing configurations and entertainment is all accessed through the huge vertical screen. Climate controls are always fixed at the bottom of the display, although it’s still a touch-screen feature. Sorry physical button enthusiasts!
2022 Ford F-150 Lightning Pro.
Utility reigns supreme in the F-150 Lightning electric truck. The center console folds down into a work desk, but that’s a feature that combustion-powered versions also have. The rear seats offer the same generous space that you’ll find in the gas equivalent, including under-seat storage. Available Max Recline Seats offer nearly 180 degrees of recline. Perhaps a charging nap is in your future?
American-Made Batteries Power Dual Electric Motors
The 2022 F-150 Lightning is powered by dual electric motors, each of which could fit inside a duffel bag. The electric motors are powered by large lithium-ion batteries produced through a joint venture with SK Innovation in Georgia. American-made batteries for American-made EVs! That’s not as common as you’d think.
The F-150 Lightning’s battery lives under the floor of the truck, where it’s out of the way and secured in a waterproof casing surrounded by crash-absorption protection. Ford says the battery was designed with extreme weather and abuse in mind. It can handle off-road adventure like a champ. Innovative thermal management keeps the battery at optimum temperatures.
2022 Ford F-150 Lightning.
The base ‘standard range’ battery is a 98 kilowatt-hour (kWh) usable lithium-ion battery. Stepping up to the extended range configuration gets you a 131 kWh battery pack built from the same chemistry. This extended-range battery offers more towing, a lot more performance, but less payload. Why less payload? The bigger battery is much heavier. The F-150 Lightning weighs 6,500 pounds!
The base standard range battery supplies the two motors with 425 HP and 775 lb-ft of torque. The extended range battery opens up to 565 HP and the same 775 lb-ft of torque. Notably, four-wheel drive is standard across all trims. One motor is located at the front axle, and another is in the rear. Both the battery and motors get metal skid plates that shield the underbody from impacts, water and the elements for durability.
Range
F-150 Lightning offers two battery options: a standard-range battery with 230 miles of EPA-estimated range and an extended-range battery with 320 miles of EPA-estimated range.
The official EPA numbers are out! The standard range battery is rated for 230 miles on a charge, and the available extended range battery is good for 320 miles. The final EPA numbers exceed what Ford had previously estimated. Ford engineers have fueled rumors that the Lightning’s range estimates are calculated with 1,000 pounds of payload included. With an empty bed, the F-150 Lightning may go even further on a single charge.
Drive Modes
Ford offers four drive modes: normal, sport, off-road, and haul. Additional settings include one-pedal driving (a Tesla favorite) and the option to lock the differential with the touch of a button. Why would you want a sport mode on your F-150? The Lightning launches to 60 mph in just 4.4 seconds!
Fast-Charging Capability, At Home and On the Road
2022 Ford F-150 Lightning Platinum, Lariat, XLT.
More than 80% of electric vehicle charging is done at home. Ford is the only automaker to offer an 80-amp charge station as standard equipment. At home, the F-150 Lightning adds an average range of 30 miles per charging hour, fully charging an extended-range truck from 15% to 100% percent in about eight hours. Keep in mind that the truck charges overnight while you’re sound asleep. EV owners typically wake up each morning with a full battery to start the day.
At a public DC fast charger like you’ll find at Electrify America, The 2022 F-150 Lightning can accept 150 kilowatt charging speeds. This is below what the upcoming Silverado EV offers, but it’s still decent. If the charging curve is above average, 150 kW won’t be a problem at all. At a DC fast charger, the extended-range F-150 Lightning is targeted to gain up to 54 miles of range in 10 minutes. In 41 minutes, Ford says it can charge from 15% to 80%.
Charging an electric truck is A LOT more affordable than fueling up at the gas station. Fuel savings just might justify the time it takes to charge. At Electrify America, a typical charge from 5% to 90% (adding 255 miles of range) will only cost about $35. The real savings are in your garage. At home, where most charging is done, the same charge to 90% would only cost $15 at average residential electric rates. Learn more about how much it costs to charge an electric vehicle here.
Towing, Payload and Storage
On the surface, the bed of the F-150 Lightning is pretty standard. It’s the usual 5’5” bed with a power tailgate. Sadly, it lacks the magical pass-through feature of the upcoming 2023 Chevrolet Silverado EV. Upon closer inspection, there are some very useful gadgets. The side of the bed includes several household 120-volt outlets and a more powerful 240-volt outlet. Ford says the Lightning can power worksite tools for days without having a big impact on the state of charge. This really highlights the immense energy capacity of the 98 to 131 kWh battery, and how comparatively little energy small appliances and tools consume.
2022 Ford F-150 Lightning Pro.
How does towing or hauling around a bed full of materials impact range? Just like with any gas or diesel-powered truck, fuel efficiency decreases with towing and higher payloads. Ford’s engineers thought of this, and they’ve used the Lightning’s electrical infrastructure to offer an impressive remedy. Using the scales built into the truck and a fancy computer, real-time range estimates are constantly calculated based on payload and towing demands. The gauge cluster displays an accurate estimate of how much range you have in any given scenario. No need to do calculations in your head.
With the 230-mile standard battery, payload capacity is 2,000, and towing is up to 7,700 pounds. The extended range battery opens up towing to 10,000 pounds, but the added weight of the battery lowers payload to 1,800 pounds. The Lightning weighs about 1,000 pounds more than regular F-150s.
The F-150 Lightning has a massive 14 cubic-foot front trunk. Finally, a truck with a trunk! There are four power outlets providing 2.4 kW of power and two USB ports, all within the front trunk. The floor has a drain too. You can even charge tools in the front trunk while driving the vehicle.
Power Your Tools, Appliances or Entire Home With the Lightning
Pro Power Onboard is Ford’s vehicle-to-load system that produces . Power reserve functions allow the driver to automatically cut off power supply once the battery state of charge drops to a predetermined level.
An even bigger deal is Ford Intelligent Backup Power. With the proper setup and accessories, the F-150 Lightning automatically kicks in to power your house when the power goes out. Once power is restored, the truck automatically reverts to charging its battery. Ford says that based on 30kWh of electricity usage in the average American home, F-150 Lightning with extended-range battery can power an entire home for up to three days, or as long as 10 days with power rationing. THIS could be the feature that wins over the masses.
2022 Ford F-150 Lightning Pro.
Wait, that’s not all. Ford has more tricks up its sleeve than a dealership F&I manager:
“In the future, Ford will introduce Ford Intelligent Power, which can use the truck to power homes during high-cost, peak-energy hours while taking advantage of low-cost overnight rates to charge the vehicle in time for your morning drive. This can help save money on electricity that powers your vehicle and home while also taking pressure off the grid in peak usage times.”
You heard here first, folks. You’ll soon have the ability to buy a truck that can lower your entire utility bill. Considering that this feature alone would save a ton on monthly bills, charging the F-150 Lightning will basically pay for itself! That could be HUGE savings for those accustomed to paying $60-$80 for every tank of gas.
Tech In the F-150 Lightning
2022 Ford F-150 Lightning Lariat.
The Lightning can learn all about your hauling habits. The truck recognizes which trailer you’re hauling, combines that with info from the onboard scale, and provides immediate updates to driving range and power.
The F-150 Lightning has games! Tesla popularized in-cabin gaming, and now Ford has seen the appeal of a lighthearted, fun-yet-functional vehicle experience. Automakers are all about ‘experience’ these days.
The gauge cluster is conveniently located within the line of sight for the driver. It displays useful information about real-time battery conditions, motor performance and power distribution. In the Lightning, everything is customizable.
Does Ford want to spy on you? Probably not. However, two driver-facing cameras are built into the dash. These are actually safety monitors for Blue Cruise, Ford’s advanced driver assistance technology. Blue Cruise enables hands-free driving on divided highways, as long as your eyes are on the road. This is wading into level 2 autonomy, but Ford has more ambitious driver assistance plans in the works.
There’s also a 360-degree camera for parking assistance. Exterior zone lighting lets you illuminate precisely what you need to see in the dark.
F-150 Lightning Pricing and Trim Options
The work and fleet-oriented Pro edition starts at $39,974. The Pro includes bare-bones manual vinyl seats and no frills. Most consumers will start their shopping at the $52,974 XLT trim. This is where most of the desired features and comforts enter the scene. A step up will land you at the $67,474 Lariat. Both the XLT and Lariat come with the 230-mile standard range battery unless you opt for the extended range battery. On top of the spec sheet is the Platinum. For $90,874, you can get an extended range battery, 22-inch bright machined aluminum grille, the larger (15.5-inch) touchscreen, upgraded sound, and both heated and ventilated seats. Check out the major differences below:
These are the base configurations for each F-150 Lightning trim option.
Notice that the soon-to-be-popular XLT trim listed at a starting MSRP of $52,974 is actually a $72,474 truck in disguise. If you want to step up from the 230 mile standard range battery to the bigger battery, going for the XLT just doesn’t make sense for most buyers. Ford clearly wants buyers to take the dive for the Lariat or Platinum trims. Kind of sneaky if you ask me.
No Dealer Markups? F-150 Pricing Under the Spotlight
Ford recently sent a memo regarding F-150 Lightning pricing to their dealers, and it was swiftly leaked online. It reveals that the automaker intends to preserve what little is left of positive dealership experiences. The memo cuts right to the chase. “It has come to our attention that a limited number of dealerships are interacting with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation.” Wow, Ford actually wants their customers to have a pleasant dealership experience.
This memo brings up a key concern about F-150 Lightning pricing. Will dealers use unprecedented demand to try and justify outrageous additional dealer markups? Clearly, Ford corporate is intent on getting ahead of the problem before it snowballs out of control and tarnishes the brand for hundreds of thousands of new Ford customers. Find out more about this secret memo and what CarEdge advocates think about it here.
Incentives
Does the Ford F-150 Lightning electric truck qualify for the EV tax credit? Yes! The federal EV tax credit slashes up to $7,500 off of the Ford F-150 Lightning pricing. Lawmakers are considering revisions to the EV tax credit that could possibly add to the discount. Right now, buyers receive the incentive when they file taxes. Proposed changes to the law would make the discount effective at the point of sale.
I Want One! Where Can I Buy a Ford F-150 Lightning?
All-new, all-electric Ford F-150 Lightning revealed at Ford World Headquarters in Dearborn, Michigan, on May 19, 2021.
Sadly, there’s no easy answer. If you were among the hundreds of thousands to place a pre-order back in early 2021, you just might receive your F-150 Lightning by the end of 2022. Most current reservation holders will receive theirs in 2023. Ford is doubling down on production capacity due to high demand, so if you get in line soon, maybe you’ll also get your truck before 2024. For the time being, reservations are closed so that existing deposit-holders can place their official orders. Soon, Ford says they will open reservations back up to the masses. Ford currently has about 200,000 reservations in the books. With the doubled production capacity, Ford will be making about 150,000 per year. Do the math, and that means most F-150 Lightning buyers will have to wait until 2024.
If you’re ready to buy an electric truck now, there are only two options with immediate availability. The popular Rivian R1T is an outdoorsy luxury mid-size truck. The R1T starts around $70,000 before incentives. The GMC Hummer EV is crab-walking its way into dealerships, but only at a hefty price tag. For $100,000, the reimagined electric hummer truck can be all yours. The Tesla Cybertruck was just delayed to 2023 at the earliest, so there’s not much to say about that concept for the time being.
Is it worth the wait for the Ford? F-150 Lightning pricing is attractive, and it’s sure to get truck buyers the most value for their money out of the few options we have today. Plus, who wouldn’t want to have a truck that also serves as a generator for backup power? Tesla has been stubbornly against adding vehicle-to-grid functionality to their models, probably because Tesla also sells home battery products.
CarEdge’s Take
The 2022 Ford F-150 Lightning electric truck is the pinnacle of utility. You can power a dozen tools, save hundreds to thousands on fuel, and even power your entire home with this truck. Unfortunately, Ford didn’t anticipate so much love for the Lightning. If this truck was at dealerships today, they’d be flying off the lot. F-150 Lightning pricing is what you’d expect from a truck in today’s market. It’s likely to set buyers back by at least $60,000 with options included. If only there was an electric Ford Maverick for those of us who prefer to spend less.
Do you think the F-150 Lightning will sell to traditional truck buyers? Or will Ford appeal to a different demographic altogether? We’d especially love to hear from you if you’re a reservation holder. The Lightning will have a lot to live up to after the long wait we’re in for.
December 2022 Update: To the dismay of many on social media (particularly Reddit), VinFast made an unwelcome announcement recently. The good news: The first VinFast EVs will arrive in California by January 2023. In fact, there are 999 VF8 electric SUVs on the way to America. The bad news: VinFast says that these will be “City variants” with just 180 miles of estimated range, according to the company.
Previously, VinFast had advertised to everyone, including reservation holders, that the VF8 had either 249 miles of range for the Eco variant, or 261 miles of range for the Plus variant.
Okay, say you’re fine with 180 miles on a charge, as long as it comes with a significant price discount. You’d be disappointed. VinFast is offering these City variants of the VinFast VF8 at a $3,000 discount. That means that this 2023 electric SUV will still cost either $55,500 or $62,500, with 180 miles of range. Note, that’s the same range as the Nissan LEAF, and is much less than the Chevy Bolt. With this range and at this price point, we can’t recommend the VinFast VF8 City version. Competitors offer more range for the same (or less) money.
Now, on to the original first-look of VinFast EVs:
Just as legacy OEMs are jumping into the EV race, newcomers and startups are set to enter the North American market within the next year or so. Today, a glance at electric vehicle sales numbers finds Tesla dominating with 67% market share, but that figure is slowly falling as the competition heats up. Volkswagen Group, Ford and Korean automakers trail behind, eager to bite into Tesla’s success. Here to spice things up are newcomers like Rivian, Fisker, Lucid and a half-dozen other boutique automakers.
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Overseas, two established EV players are poised to join the fun as well. While Chinese EV success story NIO hasn’t made any commitments, aspiring Vietnamese automaker VinFast is ready to break ground in America. How will this emerging vehicle segment evolve over the next 2-3 years? Whatever happens, it’s looking increasingly likely that VinFast will be a part of the story.
Who Is VinFast?
The 2021 LA Auto Show was all about EVs. No one lingered around the occasional displays of cross-cut engines or propped-open hoods. Yet every electric vehicle booth was packed. One of the many oddities and spectacles at the auto show was VinFast, who (almost) nobody had heard of. It almost sounds like the name of a rebranding online car seller who gets your title to you in less than a month. Founded in 2017, VinFast is the automotive wing of Vingroup, a private Vietnamese conglomerate active in tech, retail, industrial development and service industries. Now worth over $35 billion, Vingroup had humble beginnings as a food processing company working out of Ukraine in the early 1990s.
VinFast first set foot in America in the summer of 2020. That was a pretty horrible time to be launching any kind of business venture, but VinFast stuck with it. With an extensive history and enough capital to get the ball rolling, automotive industry analysts are marveling at the pace of VinFast. At the LA Auto Show, VinFast US CEO Van Anh Nguyen told TechCrunch about their expansion plans. Here’s what the ambitious automaker has in store in just the first half of this decade:
$200 million for building a headquarters and support infrastructure in California
Hiring 1,000 employees in California, including 400 at the new headquarters
Opening 60 sales locations
Opening multiple service centers and mobile service providers
Building a VinFast factory in America by the end of 2024
Two VinFast SUVs launching in the US soon
With this roadmap in mind, it’s no surprise that VinFast is eyeing an IPO into the US stock market. Rumor has it that they’re shooting for a $60 billion valuation.
Batteries Not Included?
When VinFast announced their new 15,000 square-foot headquarters, they also shared some details about future product launches. VinFast followed through on their pledge to officially debut two of its first electric SUVs, the VF 8 and VF 9, at the 2021 LA Auto Show. There’s one aspect in particular that lends so much confidence to VinFast’s growth strategy. Much of their research and development has been focused on streamlining and automating vehicle manufacturing processes. Sound familiar? That’s how a certain American company (starts with a T, ends with an A) overcame the many burdens of production ramp-up. In fact, Tesla was the first American car manufacturer to successfully ramp up automotive production in nearly 100 years. If VinFast has scalable growth in mind, their likelihood of success is far greater than the average EV startup.
VinFast’s approach to EV production isn’t all good news for the consumer. Automotive News recently reported on VinFast’s plan to NOT include a battery pack as part of the standard equipment when the vehicle is purchased. Instead, car buyers will lease a battery pack from VinFast. I guess that’s one way to guarantee a revenue stream!
How Much Is a VinFast Battery Lease?
Renting a battery pack from VinFast won’t be cheap. Unless, of course, you intend to purchase an EV that comes without the usual fuel savings associated with going electric. VinFast Global CEO Le Thi Thu Thuy said the two battery pack options will cost between $100 and $150 PER MONTH. They say the battery leasing model would buffer EV buyers from the risk of degraded battery performance over time. They’ll replace the battery if it falls below 70 percent of its initial charging capacity. The thing is, today’s EVs still retain over 80% of their initial charging capacity with well over 100,000 miles on the odometer. This would have been a reasonable strategy a decade ago, when early battery tech was on shaky, experimental ground. Now, it’s a solution in search of a problem.
Below is the official announcement from VinFast, showing the pricing tiers for the VinFast VF 8 and VF 9. VinFast battery subscription plans range from $110 to $160 per month on the VinFast Fixed Plan, and $35 to $44 per month on the VinFast Flexible plan, which includes just 310 miles of driving per month.
This is from VinFast’s marketing material.
Why would anyone buy a new car knowing they will have to pay an extra $150 every month for the required battery? That would only work if the car itself sells for ridiculously cheap. We’ll see, but I’m skeptical.
Imagine if Apple required you to purchase a battery for the IPhone separately. The behemoth wouldn’t be where they are today with such a critical product miscalculation. Will VinFast SUVs overcome this looming and unnecessary product feature? Or will they reverse course before launching US sales?
VinFast Models in 2022
Enough with the negativity. At the 2021 LA Auto Show, VinFast shared two impressive electric concepts. They intend to bring both to production very soon, and both will be sold in the US market. The VF 8 (formerly dubbed the e35) and VF 9 (formerly e36) are two fully-electric SUVs that feature advanced driver-assistance systems and a suite of smart features. Both VinFast SUVs are designed by Italian design firm Pininfarina, and the result is pleasant to look at.
The smaller VF 8 is advertised for up to 310 miles of range on a charge. Stepping up to the larger VF 9 will get you 301 miles of range with the (rented) standard battery, or buyers can opt for the bigger battery that’s good for 422 miles.
Aside from the range figures and pretty images, not a whole lot is known about these two SUVs. The VinFast website shows an interior with a 15” Tesla-style touchscreen front and center. What they do make clear on the website is that interested buyers are welcome to place a reservation for $200. Reservations placed before April qualify for a $3,000 to $5,000 voucher for their VinFast SUV of choice.
VinFast pricing starts at $41,000 for the crossover-styled VF 8, and $56,000 for the larger VF 9 SUV. Power is impressive, yet nothing to write home about. Check out the full VinFast pricing and spec details below. The automaker does make it abundantly clear that this information is subject to change.
CarEdge’s Take
I want VinFast to succeed in their North American expansion. Greater competition among automakers almost always results in savings for the consumer. But batteries not included? $150 every month for something that literally comes with every single other electric vehicle in the world? Come on. I hope VinFast sees the reality of the situation and the expectations of the American buyer.
What do you think? Are you willing to give VinFast a chance, or are they wasting their time with this battery nonsense? How affordable would the car have to be for this sales model to work? Let us know what you think. I’d love to hear your thoughts, especially if you might be willing to give the VinFast ownership experience a try.
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A U.S. lawmaker introduced a new ‘right to repair’ bill on Thursday. The legislation proposed by Illinois Representative Bobby Rush (D) takes aim at the auto industry eight years after Massachusetts enacted its own legislation that sent shockwaves through the industry. Rep. Rush announced the bill with comments highlighting the struggle over who has access to data as autos inch closer to becoming driving computers.
“Americans should not be forced to bring their cars to more costly and inconvenient dealerships for repairs when independent auto repair shops are often cheaper and far more accessible. As cars become more advanced, manufacturers are getting sole access to important vehicle data while independent repair shops are increasingly locked out.”
The new administration has already brought this issue back into the spotlight. In 2021, President Biden issued an executive order directing the Federal Trade Commission to take action on right to repair. The current administration is looking for ways to reach across the aisle. Representative Rush’s new bill might become a rare glimpse of bipartisanship. A spokeswoman for Rep. Rush told Automotive News that Republican support for the bill is expected soon.
How Does the New Right to Repair Bill Impact Consumers?
Source: Example data from the Georgia Tech Center for Transportation Research Cost Calculator
It’s important to remember that this proposed legislation is just now entering the revolving circus that is government in 2022. It remains to be seen if the 2022 ‘right to repair’ bill will ever end up on President Biden’s desk. If it does get enacted into federal law, how does the consumer stand to benefit?
In the vast majority of markets and scenarios, dealer service centers will charge more than independent repair shops for automotive maintenance. Often, dealership service managers make money off of the services they recommend to you. That’s simply the work-for-commission model.
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While dealership service centers have their benefits, the savings of going elsewhere are hard to overlook. If cars become so complex that repair shops can’t keep up with the tech, consumers will have no choice but to go to the dealership. That’s probably what most dealers want to happen, and it could become reality sooner than later. That’s the motivation behind the perennial ‘right to repair’ movement. Ultimately, consumers will save on repairs if pricing competition continues to exist between dealers and small repair shops, as it has for decades.
Dealers Are Upset
Automaker and dealership alliances thought they were done with the ‘right to repair’ stuff. Back in 2014, associations representing both automakers and independent repair shops agreed to a ‘memorandum of understanding’. This MOU that was seen as a compromise that could settle their differences. The MOU was inspired by a 2013 Massachusetts ‘right to repair’ law. No other state has passed its own ‘right to repair’ bill since then, which was seen as a success of this landmark agreement. The 2014 MOU gave shops in all states the same access to diagnostic and repair information.
Still, the automaker lobby group Alliance for Automotive Innovation touted the success of the 2014 agreement following the announcement of the new legislation. Robert O’Koniewski, Executive Vice President of the Massachusetts State Automobile Dealers Association, didn’t mince words with the perspectives he shared with Automotive News.
“If this has been such a problem nationwide under the 2014 MOU between the vehicle manufacturers and the independent repair community, why has not one other state passed a RTR law to protect repairers and car owners in their own states?”
Independent Repair Shops Benefit
Representative Rush’s new legislation and Biden’s executive order would give independent repair shops the upper hand. At a time when cars are getting more loaded with tech every model year, repair shops are struggling to adapt. It costs money to acquire the necessary equipment to run high-level diagnostics and make repairs to electronics in newer models.
Associations representing key players in the automotive aftermarket and repair industries have come out in support of the latest legislation. Both the Auto Care Association and the Automotive Aftermarket Suppliers Association have publicly shared their support.
Right to Repair for EVs?
Does your local repair shop service electric vehicles? As of 2022, chances are they don’t. Opinions vary, but the general consensus is that 40% of American auto sales will be fully electric in 2030. Will consumers be cornered into returning to the dealer service center for EV maintenance and repairs? Or will the latest push for ‘right to repair’ laws extend to the coming onslaught of electric vehicles? Behind the scenes, repair shops and dealers are in a tug of war over the future of maintenance.
Current data shows that electric vehicle maintenance costs are less than their gas equivalents. Still, millions of EVs will eventually need some work done. At CarEdge, we hope that lawmakers and industry leaders prioritize the consumer as the pace of change accelerates through this decade. We’ll update this page as the new ‘right to repair’ legislation crawls through congress.
As you meander through the empty lot at the dealership, don’t you dare feel sorry for them. Vehicle inventory is still at all-time lows, and we all know why (it’s the chip shortage!). But dealerships are in the business of making money, and the pandemic and associated bottlenecks have forced dealers to get creative with how they generate revenue. New data from J.D. Power shows that dealers have gotten TOO GOOD at making money at the expense of the consumer.
In January 2022, total profit per vehicle is up to $5,138. That’s five grand in pure profits for every customer that signs on the dotted line. In January of 2021, dealer profit per vehicle sold (PVR) was more reasonable at $2,169 per sale. That’s an unprecedented 137% jump year-over-year.
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This is the fourth straight month with average PVR over $5,000. J.D. Power estimates the increase in profits per vehicle sold was enough to offset losses from reduced inventory. The analysts also predict that dealerships’ aggregated new-vehicle sales profit will rise to $4.3 billion, up 117% from 2021.
Why Are Dealer Profits Up 137%?
Where do we start? Dealer markups masked as ‘market adjustments’ are at record-highs, and will continue to be as long as consumers are willing to pay the prices. Incentives are on the way out. Gone are the days of big incentives slashing thousands of dollars off the MSRP.
Unfortunately, consumers carry some of the blame. Data shows that car buyers are financing vehicles for longer and longer terms. The average car loan is now for a whopping 67 months. That’s over five dozen months of paying interest. With the average monthly payment for a new car now at $636 (!!!!!) per month, this isn’t looking good for consumer finances.
If you finance your purchase through a dealership, they will make money on the loan. Car dealerships offer something to lending institutions that you and I can’t: volume. Generally speaking, car dealerships get access to loans at rates that individual consumers can’t. Dealers then mark up these loans and resell them to customers. In the end, the consumer pays more interest and the dealer smiles all the way to the bank.
Keep in mind that you don’t have to get your car financed through a dealership. The next time you buy a car, you should consider getting a pre-approval on a loan from another lender, in addition to seeing what the dealer is able to quote you.
Next time you meander through a sparse dealer lot or step into the F&I office at the dealership, don’t feel obligated to shell out extra cash to line their pockets. Their bank accounts are doing just fine.
What If I Really Need to Buy Now?
That’s why we’re here. CarEdge is your team of consumer advocates. Our goal is to provide the consumer with the negotiating know-how to take control of the car buying process. We have experienced auto sales experts on the team, and a welcoming community of thousands of members. Check out caredge.kinsta.cloud to learn more. Now is not the time to go it alone at the dealership!
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