If you buy a mobile phone today, the choice is between Android and iOS, or, more specifically, between Samsung and Android. [LG's announcement to stop making smartphones is a testament to how the technology and (economy of scale) of Apple and Samsung have evolved to a duopoly of smartphone brands. For most consumers, two choices are enough. Quick: name the third in line: Coca Cola, Pepsi and ...? Or McDonald's, Burger King and ...?) Will the same happen for electric cars? Ford is already building their EVs on a VW chassis. For example: whether you buy an electric Kia or electric Porsche, what are the real engineering differences between the car, considering: - the drivetrain is electric
- the center of gravity is lowered in almost all EVs because of the (current state of the art) of battery placement
- Many key (security) parts are bought OEM from the same suppliers, including tyres, audio systems and airbags.
- The manufacturer with the most driven miles will likely have the least amount of "bugs" Will car brands go even more the way of fashion brands, where the difference between Porsche and Kia will be like the difference between Balenciaga and Nike: both are functional footwear, but I'd choose the Nikes and save the difference. Will "internal luxury" and "prestige" take the overtone in marketing and branding for the next 20 years, as opposed to how "clean" a car is and the engineering of their engines? And, of this technology, how will supercar automakers adapt? E.g. why buy a Ferrari if the "soul" (engine) is replaced with an electric drivetrain that is likely less mature in engineering than what would be inside a Tesla S? |
People buy a Toyota Corolla or Prius because it's below the median price, reliable and efficient. They will buy it and then never think about it again because it'll "just work."
People buy a Ford F150 because they either have some real use for a full-sized truck or, as we know is often the case, they want to feel like they are in the "big" vehicle, the "fancy" but "powerful" looking truck.
People buy a Porsche 911 because it's a symbol for having the money to throw at a fun, slightly exotic machine.
People buy a Tesla because it's a symbol of embracing the future, seeing cars as technology, and freeing them from generating exhaust and visiting gas stations.
People buy a Honda CR-V because it can do enough things well that they can just use it, fit people and stuff inside, feel safer when it snows, and so on.
People buy a Kia Soul because it's a little off the beaten path and comes in crazy colors.
Obviously the exact reasons behind each car purchase vary a little per person, but that's kind of the point. People want a car that feels like "them", and has enough practical use to justify their decision.
Automotive maker consolidation isn't new, just like any other industry, and it certainly would leave many unhappy if the options narrowed severely, because there are different use cases and preferences out there. For now, the market is so big that Toyota can have 6 different SUVs that are all slightly different, and you can configure a Ford F150 about a million different ways. (Though with colors converging back on black, white and gray, we're nearly back to the days of "You can have it any color, as long as it is black."
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