The 2024 Honda Prologue Electric SUV: Will It Be Worth the Wait?

The 2024 Honda Prologue Electric SUV: Will It Be Worth the Wait?

Honda is late to the electric vehicle party. Now, Honda is depending on General Motors to get their EV plans off of the drawing board and onto the ground. Will their much-anticipated Prologue electric SUV be worth the wait? The automaker’s first North American EV will undoubtedly be compared to their decades-long reputation for great hybrid powertrains. As the 2024 Honda Prologue nears production, here’s what you need to know about Honda’s plans for EVs.

General Motors Lends Honda a Jump-Start For EVs

2024 Honda Prologue

Honda’s electric SUV will be Honda on the outside, and GM on the inside. The automaker didn’t quite play their cards right when it comes to electrification. After stubbornly sticking to internal combustion and hybrid vehicles for the past several development cycles, Honda is now scrambling to make one heck of a U-turn. Why? As a global automaker, Honda pays close attention to the regulatory environment in Europe, Asia, America and beyond. Most of Honda’s major markets have announced timelines for the elimination of new combustion vehicle sales as part of efforts to combat climate change and poor air quality. 

The European Union will ban sales of new gas and diesel cars, including hybrid vehicles, starting in 2035. Japan and the United States have also announced a series of policies aimed at encouraging the adoption of EVs. Several European countries are even establishing EV-only zones in densely populated urban centers in an effort to slash emissions for public health. If Honda wants to have a future, they have to go electric.

In 2020, Honda and General Motors announced a partnership that will bring Honda’s first North American electric vehicle to market mid-decade. Why the collab? GM has invested BILLIONS in its new Ultium battery technology and electric motors, and they’re eager to increase their returns by sharing with a competitor in dire need of an electrification jump-start. Honda is far behind the others, even behind other former EV skeptics like Toyota. 

General Motors will do everything except design in the exterior and interior of the 2024 Honda Prologue. GM will even build the Prologue in its North American factories. By mid-2023, Honda-branded EVs will be leaving GM plants in Michigan.

2024 Honda Prologue Specs: What We Know

honda prologue

All that we can infer about Honda Prologue specs comes from what’s been announced about the 2023 Cadillac Lyriq, which shares GM’s Ultium platform with the Prologue. The Prologue is likely to be about the size and weight as the Lyriq, since they will share the same drivetrain and battery. Honda is keeping their cards close, so it’s the best we have for now.

Arriving in mid-2022, the Cadillac Lyriq will have a large 100 kilowatt-hour battery and a single rear-mounted permanent magnet electric motor delivering 340 horsepower and 325 lb-ft of torque. An all-wheel drive version will arrive later.

The Lyriq can receive 190 kW charging at a DC fast charger, which is enough to add 200 miles of range in a half-hour. The Lyriq will have a top-end range of about 300 miles, and we expect the Prologue to have similar figures. We recently featured the Cadillac Lyriq with a full YAA preview if you’d like to know more about the electric crossover entering production in 2022.

Also, we have everything you need to know about GM’s new Ultium electric platform here. It’s fascinating stuff!

Honda Electric Cars: Are More Honda EVs On the Way?

honda e

Honda does already have a full BEV for sale, but it’s not coming to North America. The pocket-sized Honda ‘e’ is a much-loved city car in Europe. It seems to appeal to the same folks who love their Mini Coopers. The Honda e wouldn’t do well on the sparse interstates of America. It only has 137 miles of range.

General Motors is providing the Ultium platform for an Acura EV that will arrive shortly after the Prologue. Nothing else is known about the Acura EV, but it will likely share all of the same underpinnings as the Honda Prologue SUV. 

Still, Honda has jumped on the all-EV bandwagon. Or rather, they were left with few options considering the global regulatory environment. Honda’s target for the electrification of its full lineup is planned for 2040. That’s 5 to 10 years behind many competitors, including their partner GM. 

When Will the Honda Prologue Be Available?

Honda estimates that the 2024 Honda Prologue electric SUV will be available starting in late 2023 as a 2024 model. If that’s too long of a wait, dozens of other EVs will be on sale by mid-2022. In 2022, the Honda Prologue’s direct competitors in the crossover SUV segment are already battling it out for market share. These are the top picks for car buyers eager to get into an electric crossover sooner:

Need an EV in 2022? Here’s the pricing and availability of every electric vehicle on the market in 2022.

We’ll be sure to update this page as more information becomes available. Add it to your bookmarks if you’re excited about the first Honda EV in America!

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The 10 Best Cars to Lease in 2022

The 10 Best Cars to Lease in 2022

Buying a car is tricky in today’s market, and even leasing can feel like three-dimensional chess these days. Although 2022 isn’t the best time in history to buy or lease a car, some shoppers don’t have a choice. It doesn’t help that the average new car payment is a bank-draining $650 a month in 2022. Fortunately, leasing provides a window of opportunity for those who don’t mind what is essentially a long-term rental. These are the best car lease deals in 2022. All examples assume a 5% down payment at signing.

Not sure where to start? Head over to our YAA complete guide to leasing to find out what leasing a car is, and when it’s a good idea.

2022 Mitsubishi Outlander PHEV

mitsubishi outlander lease

The plug-in hybrid (PHEV) version of the Mitsubishi Outlander sells for an average MSRP of $40,356 depending on the trim. If leasing is an option, you can get into this versatile SUV for $412 per month with an allowance of 12,000 miles a year. How does a plug-in hybrid work? The Outlander can drive 24 miles on pure electricity (which is much cheaper than gas), and then can drive another 300 miles as a regular hybrid system with the help of a combustion engine. It’s kind of the best of both worlds, especially for a lease.

2022 Hyundai Kona EV

hyundai kona lease deal

The Kona EV made our YAA list of the five best electric cars you can get for under $50,000. The Hyundai Kona EV has an average MSRP of about $40,000, and you can lease one for just $401 a month. The Kona is a great alternative for those considering the Chevy Bolt. Plus, it comes with Hyundai’s unbeatable 10 year, 100,000 mile battery and electric powertrain warranty. This front-wheel drive subcompact crossover gets 258 miles on the charge, exceptional range for a budget EV. Some owners get over 275 miles on a single charge. 

2022 Toyota Tundra 4WD 

toyota tundra lease deal

If you can find one that’s not marked up, the 2022 Toyota Tundra 4WD is $51,400 at MSRP. If you’re open to leasing, you can sign up for $525 a month for 36 months and 36,000 miles. That’s $125 less per month than today’s average monthly finance payment. The downside? The Tacoma gets 14 miles per gallon when gas prices are well over $4 per gallon.

2022 Toyota Tacoma 

toyota tacoma lease deal

Last year, the Toyota Tacoma won Best Buy of the Year award from Kelly Blue Book in the mid-size truck category, and now you can lease a 2022 model for under $400 a month. If you buy, the 2022 Tacoma has an average MSRP of $36,300. If you lease, monthly payments are as low as $361. 

2021 Honda Civic Type R

honda civic lease deal

With an MSRP of $41,900, it’s a pleasant surprise that you can get into a Civic Type R lease for just $410 a month. Over 300 horsepower propels this budget racer to 60 mph in just 5.3 seconds. The challenge is finding one on a dealer lot.

2021 Chevrolet Bolt

2021 chevy bolt

Pre-facelift, the 2021 Chevy Bolt was the least ‘sexy’ electric vehicle on the market. It may look bland, have slow charging, and be subject to one of the most scrutinized recalls in recent memory, but you can lease one for cheap. The 2021 Chevrolet Bolt sells for $38,567 (average MSRP across trim levels), but you can lease one for $367.63 a month. Just make sure that you have proof from the dealer that your Bolt has already had the recall fix. Learn more about the Chevy Bolt recall and vehicle specs here.

2022 Chevrolet Bolt

2022 Chevrolet Bolt EUV

The 2022 model year gets a refreshed, modernized front fascia and improved interior. Sadly, driving range figures for the 2022 year remain the same. At least it doesn’t look like a cheap appliance anymore. Here’s the great news: the 2022 Chevrolet Bolt has a lower MSRP than the 2021 model. GM electric vehicles no longer qualify for the federal EV tax credit, so GM must have felt compelled to keep pricing competitive. Whether you go for a 2021 or 2022 Bolt, ensure that the car has had all of the mandatory fire-related recall fixes completed. 

You can lease a 2022 Chevy Bolt for $312 a month for 36 months. If you’re considering buying, remember that the $33,595 price tag will not get any help from the federal tax credit. State and local incentives may apply, depending on where you live. Here’s everything you need to know about the 2022 Chevrolet Bolt.

2022 Chevrolet Bolt EUV

2022 Chevrolet Bolt EUV
2022 Chevrolet Bolt EUV

The Bolt EUV is the slightly larger new sibling to the regular Chevy Bolt EV. The EUV sells for $36,245, but you can lease one for just $341 per month. Range is 247 miles, but charging isn’t that great. Learn more about the Bolt here.

2022 Kia Niro EV 

kia niro EV lease

The 2022 Kia Niro EV has an average MSRP of $43,500, but it can be all yours (for 36 months) for just $395 with a lease. There’s generous lease support for the Niro for a few reasons. The Kia Niro is about to receive a major upgrade in 2022, and it’s being overshadowed by the new Kia EV6 electric crossover. The Niro can make it 239 miles on a charge, and charging from 0-80% takes about one hour at a DC fast charger. However, if you plug it in at home, it should work just fine for those who drive less than 50 miles a day.

2021 BMW i3 

bmw i3 lease

Why is the 2021 BMW i3 such a phenomenal deal in 2022? It was recently discontinued, but it’s still a great option if you’re looking for an affordable, low-emissions way to get around town. Keep in mind that it’s no Tesla. The i3 gets 200 miles of range, 153 of which are on pure electricity. Not to be confused with the new BMW iX3, the 2021 i3 has an optional range extender (on the BMW i3 REX version). All trims considered, the 2021 BMW i3 has an average MSRP of $48,970 while supplies last.

If you’re looking for an all or mostly-electric bargain lease, you can lease the 2021 BMW i3 for $425/month. That’s well under the budget-friendly 10% threshold for a smart lease.

Have questions or comments about the best car lease deals in 2022? Or maybe you’d simply love to connect with fellow car buyers and auto enthusiasts? Check out the YAA Community at!

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2022 Consumer Reports Car Brand Rankings Announced

2022 Consumer Reports Car Brand Rankings Announced

Mazda CX-30 rankings

Every year, Consumer Reports sends dozens of car models through half a million miles of track testing and data collection. The non-profit organization buys all of its test cars anonymously from dealers and does not accept free samples from automakers. The Consumer Reports testing regimen includes more than 50 scientific tests on every vehicle it evaluates. 

The respected organization combines their findings with survey data from their 6 million subscribers to publish their annual Consumer Reports brand rankings. The pinnacle of the Consumer Reports’ annual rankings is the overall scores tallied for each brand.

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In 2022, Consumer Reports scored 32 automotive brands based on their overall scores in reliability, consumer satisfaction, road testing and safety. This year’s rankings bring surprising changes and a new leader.

Subaru Overtakes Mazda as the Top-Ranked Auto Brand

Subaru climbed two spots to number one in the 2022 Consumer Reports brand rankings. The Japanese automaker known for standard all-wheel drive dethroned Mazda with an overall score of 81. The 2022 Subaru Forester has ranked among Consumer Reports’ top picks for the 9th consecutive year. Fascinatingly, six of the top 10 brands in 2022 are Japanese automakers: Subaru, Mazda, Honda, Lexus, Toyota and Infiniti. 

The highest ranking American automakers in 2022 are Buick (72), Chrysler (71), and Dodge (67). Cadillac and Ford just barely passed the test, scoring 63 and 62 overall. Chrysler and Dodge have been known for reliability issues in the past, so it’s great to see them improving. Likewise, BMW’s luxury vehicles have long been known for their maintenance expenses, so to achieve #3 overall is a notable feat. 

As more automakers make advanced safety features standard on their models, the weight of Consumer Reports’ safety scoring is separating the winners from the losers.

The Best Car Brands in 2022

With Subaru now number one overall, Mazda falls to second place, followed by BMW, Honda, Lexus, Audi, Porsche, Mini, Toyota, and Infiniti. Here are the overall brand scores from Consumer Reports.

Consumer Reports car brand rankings top brands
Consumer Reports car brand rankings
Source: Consumer Reports

Tesla Slips With Polarizing Steering Wheel 

Tesla fell seven spots to #23 in Consumer Reports’ overall brand rankings. In a press release, Consumer Reports cited the so-called ‘yoke’ steering wheel in the refreshed Tesla Model X and Model S as causes for concern and consumer dissatisfaction. Jake Fisher of Consumer Reports told Automotive News that Tesla’s tendency to push the limits is partly to blame. “It dropped more than any other automaker, kind of due to their own decisions,” he said.

Consumer Reports Green Choice Awards Remain Hybrid-Focused

2022 Toyota Prius
2022 Toyota Prius

Everyone’s talking EVs, however Toyota’s hybrid powertrains remain the top-rated low-emissions choice at Consumer Reports. As part of their focus on low-emissions transportation, CR included the Green Choice designation for the second year. Toyota (9th overall) leads the Green Choice awards with 11 hybrid and plug-in hybrid models on the list. 

What’s particularly interesting about this is the fact that Toyota has yet to release a single fully-electric vehicle. Their first, the 2023 Toyota bZ4X, is due to arrive later this year. 

You can access the detailed 2022 Consumer Reports brand rankings with a membership to the non-profit. 

OEM EV Investments and Roadmaps to Electrification

OEM EV Investments and Roadmaps to Electrification

Ford Electric Vehicle Center F-150 Lightning

This year’s LA Auto Show marks a turning point for the auto industry. What seemed unlikely a decade ago is now very real: like it or not, OEMs are committed to electrification. There are a whole host of reasons for the shift, from international climate initiatives and clean transport incentives, to simply responding to Tesla overtaking market share. Every automaker has its own strategy. Some are going it alone, while many are laying the groundwork for new partnerships with competitors. And as 2021 comes to a close, all OEMs have at least this in common: they’re planning to electrify and they’re spending a LOT of money doing it. Here are the latest updates on the major players in the North American auto market. 

Nissan, an Early EV Pioneer, Is Now Playing Catch Up

2023 nissan ariya

The 2011 Nissan Leaf changed the world and spurred interest in electrified transportation. The Leaf led EV sales for several years before falling behind the likes of the Chevrolet Bolt and the Tesla lineup. The turmoil of Nissan’s leadership surely didn’t do electrification any favors. But here we are, a decade after they brought EVs to the masses, and Nissan has unveiled the successor to the Leaf, the 2023 Nissan Ariya. This compact crossover is the start of something bigger. 

The Japanese OEM just announced ‘Ambition 2030’, a roadmap for electrification. In just five years time, Nissan says it will spend at least $17.6 billion in EVs and battery tech. That includes the engineering and production of its own solid-state battery by 2028, which would be a major feat for any automaker. Another part of the investment is a new $1.3 billion electric vehicle hub in England where it will build an all-electric crossover. By 2030, Nissan says that half of their lineup will be EVs. Will it be enough to reclaim EV dominance? 

Ford Keeps Upping Its Commitment to Electrification….and Teasing Us with Retro Concept EVs 

Ford is determined to catch up to Tesla, and they’re not afraid to say that publicly. Having acknowledged their status as an EV underdog, Ford isn’t making any excuses. Instead, they’re writing checks. The Detroit giant is spending $22 billion through 2025 to electrify its lineup, starting with the 2021 Mustang Mach-E, a controversially-named top seller and Tesla Model Y competitor.

Next up, the F-150 Lightning. Ford is so confident in its electrification strategy that it’s giving its best-selling model the EV treatment. With over 200,000 reservations in the books, it looks like Ford has their work laid out for them. Ford says that F-150 Lightning reservations placed today may not be delivered until 2024 due to order backlogs. 

In an even greater leap towards an EV future, Ford announced BlueOval City, which they call Ford’s “largest, most advanced, most efficient auto production complex.” The massive facility will be constructed on a nearly 6-square-mile site in Tennessee. It will produce F-series electric trucks and Ford’s future battery platforms. Moreover, a new BlueOval SK Battery Park is to be built in Kentucky with the goal of powering a new lineup of Ford and Lincoln EVs.

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GM Is Spending Big Money, but Where Are the Cars?

Chevy Silverado EV teaser

GM plans to stop selling combustion vehicles by 2035, so that means one of two things: GM is either going all-in with EVs, or they plan to go out of business. Jokes aside, the General is playing the long game. GM has been investing heavily in the development of its proprietary Ultium battery technology as it prepares to launch a slew of EVs.

Unless you’ve been living under an automotive rock for the past year, you probably know that the Chevy Bolt has been going through some rough times to say the least. Battery fires have been traced to problems with how LG Energy Solutions engineered the battery pack for GM. There’s a stop-sale on new Bolt’s, and all Bolt owners are advised to park away from buildings and limit charging to 80%. The automaker has to spend $1.8 billion fixing the Bolt recall, so I’m sure they will want to avoid similar problems going forward. GM’s Bolt blunder is certainly going to turn a lot of folks away from EVs, so here’s hoping that their new Ultium platform can convince the public that their EVs are worth a test drive.

2021 has arguably been the turning point for the automotive industry. Now that the future points towards electrification, OEMs like GM are increasing their planned investments in EVs and their infrastructure ecosystem. For example, GM recently announced that they are increasing their commitment to develop EVs and autonomous vehicles by $8 billion additional dollars by 2025, amounting to a total commitment of $35 billion. In a recent press release, GM shared that they intend for combustion-powered sales to fuel their growth strategy. The roadmap includes working with partners to build new battery facilities, creating a charging network, and converting the entire Detroit-Hamtramck Assembly center into ‘Factory Zero’, an all-EV production center with over 4 million square feet. 

The Cadillac brand will be exclusively electric by 2030, and the highly-praised Cadillac Lyric EV is almost here. And of course there’s the $100,000+ GMC Hummer EV coming out next year. But we’ll know Chevrolet is serious about EVs when there’s an electric Silverado, which is scheduled to arrive in 2023-2024. The automaker is relying on the new Ultium batteries to produce a desirable electric truck with a range of up to 400 miles on a charge at a compelling price point.

Stellantis: It’s Complicated

Now that Fiat Chrysler Automobiles (FCA) and PSA Group (European brands Peugeot, Citroen and more) have merged to create Stellantis, the conglomerate is trying to agree on a path forward towards electrification. Stellantis CEO Carlos Tavares recently complained to Reuters about the added costs of engineering and building EVs, which isn’t surprising considering that subsidiary Ferrari publicly says they aren’t very interested in electrification. 

Despite the dread of some of the leadership, Stellantis is far more committed to EVs than FCA was on its own. At ‘Stellantis EV Day 2021’, the group announced $35.5 billion in EV investment through 2025. Every Jeep will have an electrified option by 2025, and an electric Ram 1500 pickup truck and Dodge performance EV will hit the roads by the same year. Their target for North America is 40% electrification (including plug-in hybrids) in 2025. 

The Korean OEM’s are On a Roll

2022 Hyundai IONIQ 5

Not only is Hyundai-Kia on a roll, they are investing heavily in American manufacturing for their rapidly electrifying lineup. They recently shared a $7.4 billion investment in America between now and 2025, with the goal of producing American-made battery electric vehicles. Hyundai-Kia is also investing heavily in autonomous vehicle development and urban air mobility. You know, as in flying cars. By 2025, they plan to have 23 EVs and hydrogen fuel cell vehicles on the market, with more to follow. So there’s a lot to look forward to from the group. 

Hyundai’s retro-inspired yet very futuristic IONIQ 5 has garnered attention at the 2021 LA Auto Show along with its sibling, the Kia EV6. Hyundai’s Kona EV has sold well, but it doesn’t turn any heads. The next generation of electric Hyundai’s and Kia’s are sure to change that if the Kia EV9 and Hyundai IONIQ 7 are any indication of what’s to come. 

Honda, Mazda and Subaru are Making Incremental Changes

2023 Subaru Solterra 2023 first look

Honda doesn’t have a single dedicated EV in the North American market, but has had success with its funky Honda ‘e’ in Europe. Nevertheless, Honda has big plans. CEO Toshihiro Mibe recently shared that the automaker is aiming for 2040 vehicle sales to be 100% EVs and hydrogen fuel cell vehicles. They expect that figure to reach 40% by 2030. As far as investment goes, Honda is putting their money where their mouth is and investing $46.3 billion in research and development initiatives, including electrification, over the next six years. But there’s a long way to go. In 2020, Honda sold 4.46 million cars globally, but only 14,000 were electric. 

When will Honda begin to make a splash in the American EV market? Well, no sooner than late 2023. Honda’s pride and joy is the upcoming 2024 Prologue EV, a SUV that will use GM’s Ultium battery platform. You read that right. Honda is depending on GM to deliver the most important part of their most important car of the decade. The EVs in development will surely have Acura-branded counterparts too.

In 2025, Mazda plans to introduce a unique EV platform, ‘SkyActive EV Scalable Architecture.’ For now, Mazda only intends to bring three full EVs to the American market by 2025. The company’s first, the MX-30, is out now in California and includes a very insufficient estimated range of 100 miles. For perspective, a 2013 Nissan Leaf got better miles than that. We’ll see if Mazda gets serious about EVs with an accelerated timeline. 

Subaru has been receiving plenty of attention as of late for its fruitful collaboration with Toyota to produce a new EV platform that both automakers will use for the time being. The 2021 LA Auto Show has featured the unveiling of the first all-electric all-wheel drive Subaru, the 2023 Subaru Solterra. It’s the sister to Toyota’s new bZ4X EV. Subaru is playing a bit of catch up in the electrified all-wheel drive space, but they have a plan. They recently announced plans for a new $272 million dollar R&D center in Tokyo that will employ some 2,800 people with the goal of facilitating the push to EVs.

And Then There’s Toyota, Slowly Moving From Hybrids to EVs

Toyota bZ4X

In 1995, Toyota made headlines when it unveiled a concept car at the Tokyo Auto Show that was powered by both combustion and electric motors. This concept would go on to become the first mass-produced hybrid, the 1997 Toyota Prius. 25 years later, the hybrid pioneer is lagging behind other automakers in the push to further electrify. As recently as this year, Toyota and Lexus have frequently trash talked EVs. From claiming that they prefer “self-charging hybrids” (there’s no such thing!!!), to investing heavily in the incredibly inconvenient hydrogen-powered Mirai, Toyota has kicked the ball down the road for the last decade when it comes to electrification. But things started to accelerate in 2019 when Toyota expanded its existing partnership with Subaru to include the development of a battery electric vehicle. 

At the 2021 LA Auto Show, we got our first look at the fruits of the Toyota-Subaru collab. On Toyota’s side, the result is a compelling EV with an eye-rolling name: the 2022 Toyota bZ4X. Apparently bZ stands for beyond zero, as in zero emissions. Subaru simultaneously unveiled its first all-electric all-wheel drive vehicle, the Solterra. 

So Toyota is off to the races. What’s next in their roadmap to electrification? In October, Toyota announced plans to invest $3.4 billion in US-built batteries through 2030. Globally, Toyota says it’s investing $13.5 billion in battery development, with the headline goal of reducing battery costs by 50% by 2030. They’ve also established a partnership with Panasonic for battery R&D. Toyota plans to expand the Beyond Zero line of cars into seven different models by 2025, and an additional eight EVs will be introduced into other Toyota segments. If all goes as planned, Toyota’s lineup will be hardly recognizable five years from now.

German Automakers Are Leading the Way in Europe, Is America Next?

2022 Volkswagen ID.4

In Europe, German EVs are arguably the face of electrification. While it’s true that Tesla and Asian EVs are quickly making inroads, Volkswagen, Audi and Porsche are doing very well in the European EV market. The irony? Volkswagen Group’s electric leadership came directly out of the dieselgate emissions scandal. Following the debacle, VW intended to rebrand itself as an automaker committed to righting wrongs and going green once and for all. And to a large extent, the rebranding has been a success. 

VW Group has allocated over $86 billion for technology development between now and 2025. CEO Herbert Diess says that nearly all of it will be spent on electrification initiatives. In fact, he recently shared with CNBC that VW aims to have at least 50% of total vehicle sales to be electric by 2030. 

Here in the US, VW has already started converting a large portion of its Chattanooga, Tennessee factory into a production facility for American-made ID.4 electric crossovers. The conversion will cost about $800 million. The Chattanooga factory recently celebrated its 10th anniversary, and over 3,800 people are employed there. 

The Porsche Taycan has seen immense success and rave reviews. It’s the top-selling non-SUV Porsche of 2021, despite a sticker price that stretches from $94,000 to $188,000. Porsche, a subsidiary of Volkswagen Group, has led the electrification of luxury performance in Europe. They’re also investing in a network of public fast-chargers and destination chargers. At least 7,500 charging points are going to be available worldwide by 2025. This is all part of Porsche’s plan to spend about $17 billion on electrification through 2025. 

BMW has been a bit of an internal combustion holdout. Not long ago, CEO Oliver Zipse declared that gas engine development will continue and that demand for internal combustion “will remain robust for many years to come.” However, even Zipse says that he expects BMW’s EV sales to grow by at least 50% year-over-year for at least the next few years. By 2025, they expect 25% of BMW’s sales to be EVs. What about investment? The latest tally shows BMW has plans to invest $23.8 billion in battery technology and EVs. They seem to be dabbling in hydrogen fuel cells too, a technology that has yet to show scalable promise. 

Mercedes-Benz maker Daimler announced in July that it intends to invest $47 billion in electrification by 2030, with the explicit goal of taking on Tesla. Daimler says that the overhaul of operations could result in job cuts. Most notably, the transition will result in an 80% drop in combustion engine investments by 2026, just five years from now. In essence, Mercedes-Benz is going all in for EVs. Daimler recently purchased British electric motor engineering firm YASA Limited, and is making strides towards battery development. 

Is It Enough to Catch Up to Tesla?

Legacy OEM’s have a solid shot at catching up to Tesla, but there’s also the possibility that we’re witnessing a great realigning of sorts in the North American auto industry. As it stands today, Ford, Volkswagen Group, GM and Hyundai-Kia are best positioned to dominate the EV industry alongside Tesla, but all OEM’s are throwing money and infrastructure at electrification. What do you think the outcome will be? Will the big three and German giants be as powerful in a decade as they are now? Only time, money and a battery-powered arms race will tell.