All car options in the ‘electrified’ market

DETROIT – Buying a vehicle has never been easier. But shoppers walking into traditional dealership showrooms for the foreseeable future may face a new challenge: An alphabet soup of “electrified” vehicle offerings.

As adoption of all-electric vehicles slows in the US, automakers are increasingly releasing a variety of hybrid vehicles as alternative options to EVs and traditional gas 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 and pricing shortages used vehicle record.

“More choice in the marketplace is good for consumers, but only if they understand the differences,” said Paul Waatti, director of industry analysis at AutoPacific. “There needs to be more clarity on what the terms and acronyms mean, and what the potential benefits and disadvantages are.”

A car buyer today has his choice of traditional internal combustion engine (ICE) vehicles; mild hybrid electric vehicles (MHEV); hybrid electric vehicles (HEV); plug-in hybrid electric vehicles (PHEV); fuel cell electric vehicles (FCEVs) and battery electric vehicles (BEVs), commonly known as EVs. Also coming later this year from Stellantis: range-extended electric vehicles (REEVs) that are similar to plug-in hybrid vehicles, but can operate exclusively as an EV, with its electric motors powered by a gas engine.

Each type of vehicle may be better for a different type of customer. All but EVs and fuel cell vehicles continue to offer a traditional internal combustion engine combined with “electrified” technologies such as a battery or motor to help with performance or fuel economy.

Heather Seymour, of St. Johns, Florida, said she did a lot of research before purchasing a 2022 Jeep Wrangler Rubicon plug-in electric vehicle, 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 of interest to me,” said Seymour, who said she typically uses the SUV’s all-electric range. except for longer journeys. “The more we learned about it, the more we understood what we wanted.”

While consumers may not need to know every acronym or technology to find their right model, automakers aren’t exactly helping the situation with their consumer nomenclature.

For example, Hyundai’s Genesis brand calls its all-electric vehicles “electrified,” while many others reserve the term for hybrids. Chrysler’s Pacifica minivan is a plug-in hybrid labeled as a regular “hybrid,” and Toyota markets some of its traditional hybrids as “hybrid EVs.” Stellantis says its REEV vehicles are not PHEVs, despite operating similarly.

“Each automaker uses different terms. There is no standardization and it causes some confusion on the consumer side,” Waatti said.

Some vehicle manufacturers such as General Motors also use traditional nameplates like the Chevrolet Blazer and Equinox for new EVs that share little or nothing with their gas-powered counterparts other than the name.

Stellantis’ Jeep also uses the “Wagoneer” moniker for two large gas-powered SUVs, as well as a smaller, all-electric Wagoneer “S” SUV.

Jeep CEO Antonio Filosa has said he is not concerned about any confusion, as the brand has a strong name heritage and customers can decide which vehicle is best for their needs.

“I believe we need education, but after education we have many choices for the consumer,” he said during a recent interview. “This is all for the benefit of the consumer. They will have a lot of flexibility.”

One thing auto executives from Japan and South Korea to Detroit and Germany can agree on is the need for consumer education.

Whether the vehicles are electrified or all-electric, they are critical for automakers to meet tightening emissions and fuel economy targets, as well as build production scale, lower prices and increase profits.

“We don’t want to force a customer to do something they’re not ready for,” Kia America vice president of marketing Russell Wager told CNBC earlier this year. “We are trying our best to educate them.”

Kia and its dealers have published myth-busting pages online to answer concerns or frequently asked questions about electric vehicles and hybrids. They range from technical questions about batteries to practical questions like whether you can drive through a car wash in an EV (you can).

GM has taken it a step further. The Detroit automaker launched EV Live in 2022. It’s an online video platform, now known as GM Energy Live, that allows attendees to interact one-on-one with EV specialists and learn about electric vehicles and charging.

Ford Motor recently launched its own video-based training program aimed at more than 3,000 franchise dealers in the US to improve customer service, better engage employees and provide dealers and the company with lots of data to help sell vehicles.

Drivers say it’s up to the companies as well as their dealers to train and educate themselves about the benefits of the vehicles, whatever they are.

“Each customer, after all, is very different,” said Jérémie Papin, president of Nissan America, earlier this year. “I think it’s what the vehicle can do for them,” not necessarily how the technology works, he said.

According to Cox Automotive, 96% of those looking to buy a vehicle in the next 24 months could be enticed to consider an EV earlier than a three- to five-year window if they had greater knowledge of how ownership works. of EV.

That was true for Seymour, a Florida resident, as well as 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 as a way to save money on gas and as a possible stepping stone to an EV.

“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 out there about PHEVs and EVs.”

According to Cox Automotive, consumers spend more time researching EVs than traditional gas-powered vehicles. The company found that roughly 9 out of 10 EV buyers already have a vehicle in mind for purchase before visiting a dealership or ordering online.

“There’s a lot of information out there. It’s hard to explain,” said Stephanie Valdez Streaty, director of industry knowledge at Cox Automotive. “Education is so critical. It’s awareness, education and engagement for consumers.”