{"id":31448,"date":"2023-09-12T10:52:50","date_gmt":"2023-09-12T14:52:50","guid":{"rendered":"https:\/\/henrypayne.com\/?p=31448"},"modified":"2023-09-12T10:52:50","modified_gmt":"2023-09-12T14:52:50","slug":"as-government-ev-mandates-near-automakers-introduce-parallel-product-lines","status":"publish","type":"post","link":"https:\/\/henrypayne.com\/index.php\/2023\/09\/as-government-ev-mandates-near-automakers-introduce-parallel-product-lines","title":{"rendered":"As government EV mandates near, automakers introduce parallel product lines"},"content":{"rendered":"

California City, California<\/em>\u00a0\u2014 In 2020, Kia introduced the affordable, V-6-powered, three-row Telluride with upscale design, a suite of standard features, and a price tag $5,000 south of a comparable Ford Explorer or Toyota Highlander. It flew off dealer shelves and brought Kia the 2020 award for North American Utility of the Year.<\/p>\n

Now Kia is bringing a second SUV to the three-row segment: the pricey, battery-powered EV9 that Car and Driver estimates will start at $56,000 \u2014 $20,000 more than the Telluride \u2014 when it hits dealer lots in the fourth quarter of 2023 to take on luxury EVs like the Tesla Model Y and Cadillac Lyriq. Though it shares the Telluride\u2019s design cues and interior software, it sits on an entirely different battery-electric platform and introduces cutting-edge tech like haptic-touch dash buttons and self-driving assist.<\/p>\n

The parallel product strategy in the same segment is evidence of the uncertain crossroads that today\u2019s auto manufacturers face with massive, multibillion-dollar fines looming from California and the Environmental Protection Agency if they don\u2019t meet new emissions standards.<\/p>\n

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The Telluride\/EV9 double team covers a lot of bases: It satisfies consumer demand, conforms to looming government EV mandates, and recasts the Korean mainstream brand as a luxury player in the emerging, pricey EV market.<\/p>\n

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It\u2019s a trend that other automakers are following as well. Kia is the first mainstream automaker to double up in the three-row segment, but expect Chevrolet to introduce two \u2014 gas and battery-powered \u2014 versions of the Chevrolet Blazer later this year in the mid-size SUV segment, much like the subcompact SUV Chevy Trax\/Bolt EV and Silverado\/Silverado EV pickup trucks before it. Ford is expected to follow with parallel versions of the Ford Explorer. Luxury automakers like Cadillac (gas XT5\/battery Lyriq), BMW (gas X5\/electric iX) and Mercedes (gas GLS\/electric EQS) have already been working this parallel strategy.<\/p>\n

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In a consumer-driven market, automakers might roll out new EVs in a measured manner to gain an understanding of EV demand \u2014 particularly in a market where Tesla dominates 60% of EV sales. But like utilities, today\u2019s manufacturers are governed by government mandates, and the hammer is about to drop with tough 2026 EV sales requirements that could cripple automakers if they don\u2019t build electric models.<\/p>\n