Opel Ampera E Stars In Paris

Opel Ampera E Stars In Paris.

Electric Cars Head For Mainstream With Autonomy, Sharing, Connectivity.
But What Will Electric Cars Do For The Bottom Line?

“we think this creates significant uncertainty. how relevant are current manufacturers’ key competencies in an EV world?”

Electric cars headlined at the biennial Paris Car Show, with the Opel Ampera E hailed as the first practical battery-powered vehicle for the mass market.

More new SUVs were unveiled from SEAT, Skoda, Suzuki, Peugeot and Land Rover, while other introductions include a new Honda Civic hatchback, small cars including the Kia Rio and Nissan Micra, and a Volkswagen Golf/Ford Focus fighter from Hyundai – the new i30. Usually new concept cars and ideas are flagged well before show-time, but some new ones crept under the radar including the Renault Trezor, a two-seat electric sports car, Mercedes EQ electric brand and a (well-flagged) new model, and the BMW Concept X2.

Surprisingly, Ford, Volvo, Mazda, Aston Martin and Rolls Royce didn’t exhibit at the show and this might be a sign that car manufacturers are preparing for tougher financial times ahead.

And electrification was the main theme with more than 24 new electric models. The displays also showed how the auto industry is exploring radical new ways of doing business, with autonomy, connectivity and car-sharing ideas on view.

IHS Markit analyst Stephanie Brinley wondered if the industry might be getting a bit over-excited.

“The automakers are presenting a utopian view of how people will move, but also new ways to make a vehicle even more integral to one’s lifestyle. As example, the scenario that Mercedes-Benz laid out for a car that picked up dry-cleaning for the owner coming back from a business trip-while the car was also shared with another instead of just sitting at airport parking. Car not only as mobility but also errand-runner,” Brinley said.

Still reeling from dieselgate
Meanwhile Mercedes launched its latest generation 2 and 4 seat battery-powered Smart city cars. BMW also announced it plans an electric Mini and X3. Volkswagen’s new I.D. electric concept car has a claimed range of 300 miles from a single 15-minute charge.  Volkswagen, still reeling from the impact of dieselgate one year ago, is desperate to change the subject and hopes its focus on electrification will help. The company isn’t holding back the hyperbole talking about its new car.

“The vehicle is as revolutionary as the Beetle was seven decades ago, before it evolved into the world’s best-selling car of the last century. This car, too, has the potential to make history with its completely new vehicle concept,” VW said.   

The Ampera E, the European version of the Chevrolet Bolt, has a claimed range of 249 miles.

Professor David Bailey of the Aston Business School believes that, after many false dawns, the Bolt/Ampera will provide GM the prize of being first to market.

“It is a genuine step change and is likely to be the first of a generation of electric cars which can be really competitive with the internal combustion engine with significantly longer range. Tesla’s Model 3 is coming, but GM is getting it to market first,” Bailey said. 

Is it a breakthrough?
Peter Fuss, partner at consultants Ernst & Young’s Global Automotive Center in Frankfurt, Germany, isn’t so sure it’s a major breakthrough.

“Electric cars will still take their time to become fit for the mass market. Range anxiety, sharing infrastructure, still higher purchase prices and uncertainties around residual values of used electric vehicles are challenges for the EV market,” Fuss said.

Morgan Stanley also had some reservations about the rush to electrification.

“Paris Auto Show announcements highlight the conversion of European (manufacturers) to electric drive – we think this creates significant uncertainty. How much will it cost to develop the powertrains,

alongside existing technologies? How much will consumers pay for proposed EV drive vehicles versus combustion engines? When will EVs generate similar margins to existing cars, and how much dilution to auto margins before that happens? What impacts will EV launches have on ICE product pricing?” said Morgan Stanley analyst Harald Hendrikse.

“In fact, how relevant are current (manufacturers) key competencies in an EV world,” he said.