Ford Motor Company and GM have recently announced major plans and shown what they intend to do with electric vehicle manufacturing.
There’s no doubt about it, the electric car is here to stay. But that doesn’t mean the internal combustion engine is going the way of the buggy whip.
However, this transition will impact the way auto companies do business.
GM is ready to give the Hummer a new life as an electric SUV, Cadillac will build its luxury Lyriq SUV as an electric SUV and Ford is ready with the Mustang Mach-E and an electric F-150.
Guidehouse Insights auto analyst Sam Abuelsamid said the Big Three are expected to have 100 new electric vehicle offerings in the next five years and 300 worldwide.
Volkswagen plans 75, GM has 20 coming by 2023 and Ford has 14.
This will change manufacturing considering it takes far fewer parts to make an electric vehicle.
Not to worry, IHS Markit analyst Stephanie Brinley said the industry won’t just flip a switch and a lot of jobs will disappear.
“Internal combustion engines aren’t going anywhere soon," Brinley said. "It’s going to be a mix for a long time.”
Electrics account for under 2% of the market and won’t likely be a majority of vehicles on the road until 2050.
“Building up a volume to make a difference will take a long time," Brinley said. "This is like the opening chapter of a very long book.”
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