Hyundai Reassures Dealers as Battery Shortage Adds Dark Clouds to Kona Electric Launch

by Steph Willems

Published: November 15th, 2018

hyundai reassures dealers as battery shortage adds dark clouds to kona electric

By all accounts, the Hyundai Kona Electric is a zippy little crossover endowed with surprising range and the same basic utility as its gas-powered sibling, minus the whole all-wheel drive thing. However, a battery shortage afflicting the Korean automaker has added uncertainty to a model arriving on American shores this year.

Will it actually show up when a customer wants one?

Don’t worry about that, Hyundai’s telling dealers. There’s a plan to get Kona Electrics to America.

As reported by Wards Auto, Mike O’Brien, vice-president of product planning for Hyundai Motor America, recently travelled to the automaker’s HQ to ensure supply would be met. He was told that production of the 258-mile vehicle, already a hit in Europe, would get a boost.

“Our top management simply told us, ‘We’re going to make sure you have enough.’ So we’re going to be all-in on the Kona EV,” O’Brien said. The plan is for EV-hungry California to serve as the first recipient of the subcompact crossover. Shortly after that, the Kona Electric arrives in U.S. states that conform to California’s zero-emission vehicle mandate. The automaker has ordered the installation of three charging plugs at dealers in those states.

While ZEV jurisdictions remain the company’s chief focus, Hyundai claims that any buyer who pays for a Kona Electric, regardless of location, will get one.

It’s hard to gauge demand for the vehicle. In Norway, a country that snaps up EVs like it’s its job, 20,000 orders for the Kona Electrics turned into 7,000 sold orders, Wards Auto reports. The company has already pushed up its production forecast once. While this increase in anticipated demand ran head-on into an existing lithium-ion battery shortage, Hyundai says it has a second supplier ready to deliver the cells.

“Battery capacity is a bottleneck, but we’re working that out right now,” O’Brien said “We’re very fortunate one of our sister companies is helping us with that. So that’s going to help us a lot in terms of being able to respond rapidly to the market.”

The publication notes that Enercell, Hyundai Motor Group’s only battery subsidiary, does not build lithium-ion batteries, adding a bit of mystery to the issue. Other companies in the Hyundai supply chain have the capability, but aren’t members of the group.

[Image: Hyundai]

#Batteries #ElectricVehicles #EVs #Hyundai #HyundaiKonaElectric #Suppliers

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SCE to AUX on Nov 15, 2018

"So we’re going to be all-in on the Kona EV" Building a compliance car is the definition of *not* being all-in.

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Darex on Nov 15, 2018

I love that paint scheme in the picture above. It's identical to my MINI Cooper's "Moonwalk Grey" and black. Even now, it still looks awesome to me. Really tasteful.

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Bouzouki Cadillac (aka GM!!) made so many mistakes over the past 40 years, right up to today, one could make a MBA course of it. Others have alluded to them, there is not enough room for me to recite them in a flowing, cohesive manner.Cadillac today is literally a tarted-up Chevrolet. They are nice cars, and the "aura" of the Cadillac name still works on several (mostly female) consumers who are not car enthusiasts.The CT4 and CT5 offer superlative ride and handling, and even performance--but, it is wrapped in sheet metal that (at least I think) looks awful, with (still) sub-par interiors. They are niche cars. They are the last gasp of the Alpha platform--which I have been told by people close to it, was meant to be a Pontiac "BMW 3-series". The bankruptcy killed Pontiac, but the Alpha had been mostly engineered, so it was "Cadillac-ized" with the new "edgy" CTS styling.Most Cadillacs sold are crossovers. The most profitable "Cadillac" is the Escalade (note that GM never jack up the name on THAT!).The question posed here is rather irrelevant. NO ONE has "a blank check", because GM (any company or corporation) does not have bottomless resources.Better styling, and superlative "performance" (by that, I mean being among the best in noise, harshness, handling, performance, reliablity, quality) would cost a lot of money.Post-bankruptcy GM actually tried. No one here mentioned GM's effort to do just that: the "Omega" platform, aka CT6.The (horribly misnamed) CT6 was actually a credible Mercedes/Lexus competitor. I'm sure it cost GM a fortune to develop (the platform was unique, not shared with any other car. The top-of-the-line ORIGINAL Blackwing V8 was also unique, expensive, and ultimately...very few were sold. All of this is a LOT of money).I used to know the sales numbers, and my sense was the CT6 sold about HALF the units GM projected. More importantly, it sold about half to two thirds the volume of the S-Class (which cost a lot more in 201x)Many of your fixed cost are predicated on volume. One way to improve your business case (if the right people want to get the Green Light) is to inflate your projected volumes. This lowers the unit cost for seats, mufflers, control arms, etc, and makes the vehicle more profitable--on paper.Suppliers tool up to make the number of parts the carmaker projects. However, if the volume is less than expected, the automaker has to make up the difference.So, unfortunately, not only was the CT6 an expensive car to build, but Cadillac's weak "brand equity" limited how much GM could charge (and these were still pricey cars in 2016-18, a "base" car was ).Other than the name, the "Omega" could have marked the starting point for Cadillac to once again be the standard of the world. Other than the awful name (Fleetwood, Elegante, Paramount, even ParAMOUR would be better), and offering the basest car with a FOUR cylinder turbo on the base car (incredibly moronic!), it was very good car and a CREDIBLE Mercedes S-Class/Lexus LS400 alternative. While I cannot know if the novel aluminum body was worth the cost (very expensive and complex to build), the bragging rights were legit--a LARGE car that was lighter, but had good body rigidity. No surprise, the interior was not the best, but the gap with the big boys was as close as GM has done in the luxury sphere.Mary Barra decided that profits today and tomorrow were more important than gambling on profits in 2025 and later. Having sunk a TON of money, and even done a mid-cycle enhancement, complete with the new Blackwing engine (which copied BMW with the twin turbos nestled in the "V"!), in fall 2018 GM announced it was discontinuing the car, and closing the assembly plant it was built in. (And so you know, building different platforms on the same line is very challenging and considerably less efficient in terms of capital and labor costs than the same platform, or better yet, the same model).So now, GM is anticipating that, as the car market "goes electric" (if you can call it that--more like the Federal Government and EU and even China PUSHING electric cars), they can make electric Cadillacs that are "prestige". The Cadillac Celestique is the opening salvo--$340,000. We will see how it works out.
Lynn Joiner Lynn JoinerJust put 2,000 miles on a Chevy Malibu rental from Budget, touring around AZ, UT, CO for a month. Ran fine, no problems at all, little 1.7L 4-cylinder just sipped fuel, and the trunk held our large suitcases easily. Yeah, I hated looking up at all the huge FWD trucks blowing by, but the Malibu easily kept up on the 80 mph Interstate in Utah. I expect a new one would be about a third the cost of the big guys. It won't tow your horse trailer, but it'll get you to the store. Why kill it?
Lynn Joiner Just put 2,000 miles on a Chevy Malibu rental from Budget, touring around AZ, UT, CO for a month. Ran fine, no problems at all, little 1.7L 4-cylinder just sipped fuel, and the trunk held our large suitcases easily. Yeah, I hated looking up at all the huge FWD trucks blowing by, but the Malibu easily kept up on the 80 mph Interstate in Utah. I expect a new one would be about a third the cost of the big guys. It won't tow your horse trailer, but it'll get you to the store. Why kill it?
Ollicat I am only speaking from my own perspective so no need to bash me if you disagree. I already know half or more of you will disagree with me. But I think the traditional upscale Cadillac buyer has traditionally been more conservative in their political position. My suggestion is to make Cadillac separate from GM and make them into a COMPANY, not just cars. And made the company different from all other car companies by promoting conservative causes and messaging. They need to build up a whole aura about the company and appeal to a large group of people that are really kind of sick of the left and sending their money that direction. But yes, I also agree about many of your suggestions above about the cars too. No EVs. But at this point, what has Cadillac got to lose by separating from GM completely and appealing to people with money who want to show everyone that they aren't buying the leftist Kook-Aid.
Jkross22 Cadillac's brand is damaged for the mass market. Why would someone pay top dollar for what they know is a tarted up Chevy? That's how non-car people see this.