Maybe old news, but it has an angle on profitability, and how the poor-poor car makers are just scraping by...lol...Surely they foresaw all of this when deciding to go all-in on EVs, but nonetheless it sounds more and more like they are flying by the seat of their pants...Yes, the EV future is inevitable.
I recall the sales pitch for EVs was that they would be less expensive to manufacture due to their simplicity compared to ICE with fewer systems to design like cooling, exhaust, fuel delivery, etc...Yet here we go, they are costlier and less profitable.
Anyhoo, they do mention a consulting firm to bolster the claims of less profitability...
Here's the link...and some of the article...
https://www.msn.com/en-us/autos/news...f5fe6803&ei=38
Subscriptions and additional offerings post-initial transactions are part of why automakers are especially interested in leasing their EVs. If they can get consumers locked into an EV lease at a reasonable monthly payment, they could capitalize on that to later upsell them on more functionalities — made possible through over-the-air software updates — throughout the contract of the lease.
While consumers might need to warm up to the idea, the industry might not have much of a choice, according to Deloitte's recent future of automotive mobility to 2035 report. The consultancy estimates 50 to 60% of future profits might be at stake if companies keep going on with business as usual.
So major changes are in store as automakers navigate shifting consumer behaviors, industry headwinds, and especially, increasingly attractive competition.
"To be blunt, the price for inaction by industry players could be fatal, especially in an industry on the move in so many directions," the report said. Changes, including vehicle feature subscriptions "are expected to unlock a variety of new revenue streams."