GM launched “EV Live,” a free online platform that connects electric vehicle owners or consumers who have questions about zero-emission cars and trucks with an expert who can answer them.
Thanks to: GM
DETROIT — Buying a vehicle has never been easier. But buyers entering traditional dealer showrooms in the near future may face a new challenge: an alphabet soup of “electrified” vehicle offerings.
As adoption of all-electric vehicles slowly progresses in the US, automakers are increasingly releasing various hybrid vehicles as alternative options to EVs and traditional gasoline engines. A variety of models means more choice for customers, but also more complexity for automakers and consumers, many of whom are returning to the new vehicle market for the first time in years after unprecedented supply chain shortages and record used vehicle prices.
“More choice in the market is good for consumers, but only if they understand the differences,” he said Paul Wattidirector of industry analysis at AutoPacific. “There needs to be more clarity on what the terms and acronyms actually mean, and what the potential benefits and drawbacks are.”
A car buyer today has a choice of traditional internal combustion engine (ICE) vehicles; mild-hybrid electric vehicles (MHEVs); hybrid electric vehicles (HEVs); plug-in hybrid electric vehicles (PHEVs); fuel cell electric vehicles (FCEVs) and battery electric vehicles (BEVs), also known as EVs. Also available later this year Stellantis: Range Extended Electric Vehicles (REEVs) that are similar to plug-in hybrid vehicles, but can only function as EVs, where the electric motors are powered by a gas engine.
Each type of vehicle may be better for a different type of customer. All vehicles, except electric and fuel cell vehicles, still offer a traditional combustion engine combined with “electrified” technologies such as a battery or motor to improve performance or fuel economy.
Heather Seymour of St. Johns, Florida, says she did quite a bit of research before purchasing a 2022 Jeep Wrangler Rubicon plug-in hybrid electric car, also known as a 4xe model.
“I knew I wanted to dip my toe in the hybrid water. I wasn’t ready to go all-electric, so the plug-in was definitely interesting to me,” said Seymour, who said she typically uses the SUV’s all-electric range except on longer trips. “The more we learned about it, the more we figured out what we wanted.”
EV naming
While consumers don't need to know every acronym or technology to find the right model, automakers aren't exactly helping the situation with their consumer-facing names.
Hyundai's Genesis brand, for example, calls its all-electric vehicles “electrified,” while many others reserve that term for hybrids. Chrysler's Pacifica minivan is a plug-in hybrid that's labeled as a regular “hybrid,” and Toyota sells some of its traditional hybrids as “hybrid EVs.” Stellantis says its REEV vehicles are not PHEVs, despite working similarly.
“Every automaker uses different terms. There is no standardization, and that causes some confusion on the consumer side,” Waatti said.
GM's 2024 Chevrolet Equinox EV (right) next to a gasoline-powered Chevy Equinox on May 16, 2024 in Detroit.
Michael Wayland/CNBC
Some car manufacturers such as General Motors are also using traditional nameplates like the Chevrolet Blazer and Equinox for new EVs that, aside from the name, have little to nothing in common with their gas-powered counterparts.
Stellantis Jeep also uses the “Wagoneer” brand name for two large gasoline SUVs and for a smaller all-electric Wagoneer “S” SUV.
Jeep CEO Antonio Filosa has said he is not concerned about any confusion because the brand has a strong naming history and customers can decide which car best suits their needs.
“I believe we need education, but after education we have many choices for consumers,” he said during a recent interview. “It's all for the benefit of the consumer. They will have a lot of flexibility.”
Education is the key
One thing drivers from Japan and South Korea to Detroit and Germany can agree on is the need for consumer education.
Whether vehicles are electric or fully electric, they are critical for automakers to meet stricter emissions and fuel economy targets. They are also crucial for scaling up production, lowering prices and increasing profits.
“We don't want to force a customer to do something they're not ready for,” Russell Wager, VP of Marketing at Kia America, told CNBC earlier this year. “We do our best to educate them.”
2024 Jeep Wagoneer S EV
Jeep
Kia and its dealers have created myth-busting pages online to answer concerns and frequently asked questions about electric cars and hybrids. They range from technical questions about batteries to practical questions like whether you can go through a car wash with an EV (you can).
GM has gone one step further. The Detroit automaker launched “EV Live” in 2022. It is an online video platform, now known as “GM Energy Live,” allowing participants to interact one-on-one with EV specialists and learn more about electric vehicles and charging.
Ford engine recently launched its own video training program, aimed at its 3,000+ franchised dealers in the U.S., with the goal of improving customer service, engaging employees, and providing dealers and the company with more data to facilitate vehicle sales.
Automotive companies believe that it is the responsibility of the companies and their dealers to be trained and educated on the benefits of the vehicles, whatever they may be.
“Ultimately, every customer is very different,” says Jérémie Papin, chairman of Nissan America, earlier this year. “I think this is what the vehicle can do for them,” and not necessarily how the technology works, he said.
Automotive alphabet soup
The automotive industry has more drive and 'propulsion' options than ever before. Here's a rundown:
- Internal combustion engine (ICE): A 'traditional' vehicle with an engine that runs on petrol or diesel.
- Mild-hybrid electric vehicle (MHEV): A vehicle with an internal combustion engine that functions largely as a non-hybrid vehicle, but may include minimal electrical features such as a small battery, regenerative braking, or an electric motor.
- Hybrid electric vehicle (HEV): Consider the Toyota Prius, a vehicle with a hybrid drive system in combination with an engine.
- Plug-in hybrid electric vehicle (PHEV): These vehicles have an internal combustion engine combined with a hybrid system, including a larger battery than traditional hybrid vehicles and a plug to charge the vehicle's battery. They typically allow drivers to travel a certain number of miles on the battery before the engine is needed to power the car or truck.
- Battery Electric Vehicle (BEV): These fully electric vehicles are not equipped with a combustion engine. Instead, they contain an electric motor powered by a large battery. They must be charged via a wall socket and a charging port or charging station.
- Fuel cell electric vehicle (FCEV): Hydrogen fuel cell electric vehicles and equipment work much the same as BEVs, but are powered by electricity generated from hydrogen and oxygen instead of pure batteries, which usually contain lithium. They are filled with a nozzle, similar to traditional petrol and diesel vehicles.
- Extended Range Electric Vehicles (REEV): This is an emerging technology that functions much like a PHEV, but after the battery runs out of energy to power the vehicle, an engine acts as a generator to power electric motors exclusively. The vehicle still drives like an EV instead of the motor directly controlling the vehicle's movement.
consumer adoption
According to Cox Automotive 96% of those planning to buy a car in the next 24 months could be enticed to consider an EV sooner than a three to five year window if they had more knowledge of how EV ownership works.
That was the case for both Florida resident Seymour and Kevin Storimans of Winnipeg, Canada, who rented a Jeep Wrangler 4xe plug-in. He said he wasn’t ready for an all-electric vehicle, so he decided to lease the plug-in as a way to save money on gas and as a potential stepping stone to an electric car.
“It's the best of both worlds. You have your gas engine. You have electric range,” said Storimans, who previously drove a V-8-powered Jeep. “Do your research. There is so much information and misinformation about PHEVs and electric vehicles.”
According to Cox Automotive, on average, consumers spend more time researching electric vehicles than traditional gas vehicles. The company found approx 9 out of 10 EV buyers already have a vehicle in mind to purchase before visiting a dealer or ordering online.
“There's a lot of information out there. It's hard to explain,” said Stephanie Valdez Streaty, Cox Automobile director of industry insights. “The education is so critical. It's about consumer awareness, education and engagement.”
