Electrification of Jeep

I have written previously about my opinion of the electrification of Jeeps under the pretense that driving an electric Jeep will “Save the Planet”!!!

Setting aside your beliefs on global warming, climate change, or whatever it’s being marketed as today.  I would like to posit the idea that Jeep, like all automakers, has a vested interest in electric vehicles for several reasons, OTHER than the fallacy of “saving the Planet”!

Profit Center vs. Cost Center

As soon as you drive your new vehicle off the lot, it becomes a cost center to the OEM.  Warranty, recall and customer support are costs that every manufacturer must contend with.  The fantasy of an “all-electric vehicle future” also promises that vehicles will become a profit center.

  • Electric vehicles are touted as having fewer mechanical parts, with “simple electric motors” that are more reliable than internal combustion engines (ICE)

Automakers could theoretically not incur as much in after-sales warranty costs

Automakers could theoretically maintain fewer dealers and service centers

Based on this logic, automakers may incur less warranty cost

  • Over the Air (OTA) updates

Tesla offers greater performance features that they can provide via an OTA software upgrade, AFTER you have purchased your vehicle.  Tesla just announced their Track Mode V2 upgrade that comes with the purchase of their race focused Track Package.

Tesla Track Mode V2 turns the Model 3 Performance into a more potent racing beast

Features such as OTA updates opens up new opportunities for auto manufacturers to offer upgrades, for a cost, to vehicle performance, infotainment and driver assistance features.

“Free Money”

Governments around the world are subsidizing the production and sales of electrified vehicles.  What automaker or Consumer wouldn’t chase after “free money”?

Toyota has denied this claim, however, it’s certainly more than plausible that the Japanese government did subsidize the development.

The US Government provides free money via Federal Tax Credit subsidies to Consumers as an incentive to purchase electrified vehicles for as much as $7,500!

Click Here for a link to the complete listing of Federal Tax Credits from the U.S. Department of Energy

Many other governments around the world provide similar tax incentives to Consumers who choose to purchase electrified vehicles.

Of course, anytime a government offers “free money”, especially with the condition that the Consumer must purchase a specific product, why wouldn’t an automaker promote their product that fits these criteria?

#MeToo / Follow the Leader

Once one automaker does something different, the rest follow suit.  The market and the media begin to ask each automaker what they are doing to provide electrified vehicles, and what their “electrification strategy” is?

  • The Fiat Chrysler Automobiles (FCA) and PSA Groupe merger was touted as the creation of an “electric vehicle powerhouse”

The FCA-PSA merger could create an electric-vehicle powerhouse, under Carlos Tavares

  • Every automaker is in the business to sell as many units as they can, and every automaker wants to be everything to everyone.  For those Consumers that believe in the climate change hoax, they are more inclined to buy an electrified vehicle.

By offering an electrified version of each vehicle, automakers believe that they can gain sales that they otherwise would lose out on.

Electric vehicles are getting a lot of excitement in the media right now due to the latest climate change hysteria around the world, and every auto manufacturer has jumped on the bandwagon.

As an ancillary benefit, manufacturers may be able to reduce warranty cost, create new revenue streams, get “free money” from the government!!!