GMADA Supplement - S16

AMPING UP
PRODUCTION

Get ready for a parade of electrified green machines to jolt the light-truck market

The 2020s are shaping up as the decade in which
electrified light trucks finally gain traction in-if not
radically alter-the automotive world.
And just to make it interesting, more than just legacy
automakers are competing. A cadre of brash upstarts
is crowding onto the battlefield as well as pushing
the envelope-and more-established automakers-in
design and technology.
That's the overriding message gleaned from
presentations by industry experts at the recent
National Truck Summit. The Twin Cities Auto Show in
Minneapolis hosted the event, which was sponsored
by the Greater Metropolitan Automobile Dealers
Association of Minnesota and Automotive News.
Tesla has generated a lot of industry debate with
its radical and polarizing Cybertruck, unveiled in
November.
But lured by high profit margins, other hungry
entrants are joining the field with sexy and provocative
products: the Endurance from Lordstown Motor Corp.,
Atlis Motor's XT and Nikola Motor Corp.'s Badger. Or
the Rivian R1T pickup and R1S SUV and the B1 SUV and
B2 pickup from Bollinger Motors.

PROTECTING THEIR TURF

Legacy automakers are responding in kind. Ford
Motor Co. recently announced the latest development
in its $11.5 billion investment in electrification: an
all-electric version of the popular Transit cargo van,
available in 2022.
"It's a game-changer," Tim Stoehr, Ford's North
American truck regional product line manager, told
summit attendees. Ford also has an electrified Mustang
Mach-E crossover and F-150 pickup in the works.
In addition, General Motors recently announced it
will produce 10 new electric trucks and SUVs, said Matt
Weiss, president of JATO Dynamics North America,
16

which helps automakers price and spec vehicles.
"One reporter that was in the room [during a GM
press event] described them as 'big and bad-ass,' "
Weiss said.
With six hybrid models in addition to a hydrogen
fuel-cell electric car called the Mirai, Toyota Motor
Corp. plans to increase sales of electrified vehicles to
15 percent of overall North American deliveries in 2020,
compared with 13 percent in 2019. And beyond that,
Toyota's goal is 25 percent by 2025, said Jay Sackett,
executive program manager for trucks at Toyota Motor
North America.
"It's exciting to see," Sackett said, adding that
the number of new manufacturers speaks to the
opportunities the electrified-truck segment offers. "It'll
be very interesting to see how the product lineup of
these powertrains improves and plays out over time,"
he said.

CHALLENGES REMAIN

It's not all unicorns and rainbows, however. As Weiss
pointed out, electrified trucks still must overcome
obstacles such as range anxiety, limited access to
charging and service points, and reliability.
Another issue is cost, he said, noting that the prices
of the new startup entrants are at the higher end of the
current market. JATO data show the prices range from
$40,000 for a lower-end Cybertruck to $125,000 for a
Bollinger B2, before government incentives and other
discounts.
At the same time, option packages appear to be
less robust than those found on comparable trucks
with internal-combustion engines, Weiss said.
It's challenging for manufacturers to handle all the
complexities of building various powertrain platforms
while still keeping costs in check, said Ford's Stoehr.
"The market wants choices," he said, "but they want

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GMADA Supplement

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