Electric cars at the price of thermal cars in 2025? – Companies

Good journalists know that when you want to know what’s really going on in an economic sector, it’s better to go to the source than rely on the comments of name commentators, some of whom flirt with nonsense.

In Trends Tendances to be published on the 22nd of December, you can find the interview with the new head of Volvo. Everyone still thinks Volvo is a Swedish automaker when it belongs to Geely, a very discreet Chinese group. This shows that China has been rising in the market for a long time. Another interesting point to remember: Volvo is one of the most advanced automakers with regard to the electrification of motor vehicles.

First good news, according to the CEO of Volvo, price parity between combustion cars and electric cars it should arrive faster than we imagine, it even talks about the year 2025. What is also interesting in this battle for the electric car is that the interior of this car will be more and more complex and more and more expensive. Hence the question for car manufacturers: should they do everything themselves, or can they rely on suppliers? The answer is mostly a matter of trust. Some automotive brands, for example, don’t want to outsource certain elements to Google or Microsoft because they are afraid of becoming like Foxconn, that Asian company that makes most of the iPhone, but with Apple taking over the profits. The fear of certain automobile manufacturers is to reduce themselves to manufacturing the casing, so to speak, while the entire software part would be in the hands of more technologically advanced suppliers.

Obviously, the Volvo boss doesn’t ask these kinds of questions: he assumes he can’t do everything, and therefore for chips he calls well-known companies like Qualcomm or Nvidia. Likewise ? he has no problem bringing Google into the cabin of his cars, he says: it doesn’t matter if your customers say Hello Siri or Hello Google instead of Hello Volvothe important thing is that the voice assistant works and answers your questions.

The other important information you should know is that many start-ups have rushed into the electric car market. However, according to him, these startups will suffer now, because making an electric car requires a lot of money. And with rising interest rates, these startups will find it harder to refinance. However, before spending 30 to 40,000 euros on an electric car, a household will want to know if this brand will still be there in the future and this household will also want to know if the purchased car will still have a residual value on the market when it wants to sell. it. Rising interest rates will therefore restore a premium to established car brands. for decades. Note that this is one view among others.

The head of D’Ieteren, a well-known Brussels car importer, thinks that some customers will no longer have access to new cars, probably because they will be too expensive. He adds that not all customers will necessarily want to buy an electric car. Instead, they will opt for softer forms of mobility. the head of D’Ieteren believes in this so much that he estimates that 30% of his income will no longer come from cars by 2028 but, for example, from Lucien, its famous electric bicycle subsidiary or from EDI, its subsidiary that installs 1000 charging stations per month. You see, once again, companies are showing their very high adaptability. Too bad politicians can’t do the same.

In Trends Tendances to be published on the 22nd of December, you can find the interview with the new head of Volvo. Everyone still thinks Volvo is a Swedish automaker when it belongs to Geely, a very discreet Chinese group. This shows that China has been rising in the market for a long time. Another interesting point to remember: Volvo is one of the most advanced automakers in terms of electrification of motor vehicles. First good news, according to the CEO of Volvo, the price parity between combustion cars and electric cars should happen faster than we imagine, he even talks about the year 2025. What is also interesting in this battle for the electric car is that the cabin of this car will be more and more complex and more and more expensive. Hence the question for car manufacturers: should they do everything themselves, or can they rely on suppliers? The answer is mostly a matter of trust. Some automotive brands, for example, don’t want to outsource certain elements to Google or Microsoft because they are afraid of becoming like Foxconn, that Asian company that makes most of the iPhone, but with Apple taking over the profits. The fear of some car manufacturers is that they will reduce themselves to manufacturing the shell, so to speak, while all the software would be in the hands of more technologically advanced suppliers. and so for chips it uses well-known companies like Qualcomm or Nvidia. Likewise ? he has no problem bringing Google into the passenger compartment of his cars, he says it himself: it doesn’t matter if your customers say Hello Siri or Hello Google instead of Hello Volvo, the important thing is that the voice assistant works and responds to your The other important information is that you should know that many start-ups rushed into the electric car market. However, according to him, these startups will suffer now, because making an electric car requires a lot of money. And with rising interest rates, these startups will find it harder to refinance. However, before spending 30 to 40,000 euros on an electric car, a household will want to know if this brand will still be there in the future and this household will also want to know if the purchased car will still have a residual value on the market when it wants to sell. it. Rising interest rates will therefore restore a premium to decades-established car brands. Note that this is one view among others. The head of D’Ieteren, a well-known Brussels car importer, thinks that some customers will no longer have access to new cars, probably because they will be too expensive. He adds that not all customers will necessarily want to buy an electric car. Instead, they will opt for softer forms of mobility. The head of D’Ieteren believes in this so much that he estimates that 30% of his revenue will no longer come from the car in 2028, but, for example, from Lucien, his famous subsidiary of electric bicycles or from EDI, his subsidiary that installs 1000 terminals of recharge per month. You see, once again, companies are showing their very high adaptability. Too bad politicians can’t do the same.

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