bitkahuna

iTrader: (20)

Wow, this is bold.

Excerpt:
https://www.businesskorea.co.kr/news...ml?idxno=84657

GFerg

Damn! They are all in. Last generation of their ICE engines.

SLegacy99

Wow. That is a bold move. I hope that they have the battery production to accommodate an EV lineup.

ninetwo

We all remember how Korea's cars hit the scene in America. Lets see how they do it the second time. I predict junk.

bitkahuna

iTrader: (20)

Being in SK they have good ties to domestic battery maker LG.

Now that's funny. yes, their early products were bad. So were Honda's by the way. But they now they get to leverage all they've learned, and they're no longer new to cars or even EVs. The new EVs are getting rave reviews. I think 'junk' is unlikely.

Bob04

The reasoning isn't probably what people think. A lot of engine development is driven by efficiency in order to meet gov regulations. No need to do that anymore if you are going to selling more EVs to offset the current emissions from ICE. They probably consider the efficiency of the current engines good enough. Then, regulations will probably tighten, forced automakers to push all models to EV instead of ICE. I doubt there will be an outright ban on ICE engines, but the gov will manipulate the market to make ICE financially unappealing to everyone but the rich.

I predict it will be a mess. As EVs become more popular, supply demand should kill gasoline prices and spike electricity prices. People will be furious when they realize they are now paying high prices for electricity to fuel cars, and that cost has now bled over into running their homes. The rest that didn't go EV will realize that gasoline prices are artificially inflated by the gov to prevent people from returning to ICE as electricity prices spike and they will be just as furious. In the end, everybody will pay more, and nobody will likely be happy, which is par for the course when the market isn't allow to sort itself out.

EZZ

It's more nuanced than that. The grid can handle more EVs simply because the times that EVs charge aren't during peak demand. It would take quite a number of EVs to get to electricity usage equal to peak demand during the day. California with issues during the day has no issues charging EVs at night. Not even close and it's around 9% penetration of EVs. Grid has plenty of time to adapt (as they are all upgrading now) so I don't really believe the doom and gloom scenarios. Let's see what happens.

bitkahuna

iTrader: (20)

i think your predictions are correct, in particular that it will be a mess.

bitkahuna

iTrader: (20)

i don't think bob said anything about the grid not being able to handle lots more EVs.

but i think bob is exactly right that EVs are being heavily pushed / subsidized / and regulated into dominance. Car makers have no choice but to go with it. Hyundai doesn't want to be behind (like toyota).

LeX2K

Which car companies are being heavily subsidized? And how much?

Allen K

iTrader: (4)

The oil and gas industry has been subsidized for decades in the US so it's not like green tech is the only industry being subsidized.

mmarshall

What's going to happen is that there will be a huge public reaction at the polls, but that's probably something that we can't discuss in detail because of political restrictions.

Bob04

Well, in some cases that is true, but a lot of what people like to call subsidies were really just tax deductions and credits that were available to any business.

Also, the situation was different. Oil wasn't being pushed on people. The entire economy was starving for oil, and it was needed in almost every sector. . We were and still are an oil based economy, and the investment wasn't being done to the detriment of any other industry. There was no other viable option. And public support was overwhelmingly in agreement.

This is different.

bitkahuna

iTrader: (20)

the federal and state tax credits to CONSUMERS are subsidies making EVs cheaper to buy than they otherwise would be. This is specifically to encourage consumers to choose EVs over ICE vehicles.

swajames

There are many examples of artificially accelerated credits which are highly specific to the oil industry, for example artificially accelerating deductions for intangible drilling costs. Generally speaking, other industries have to amortize the deductions over the useful life of the asset.