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Why Trump's looming battle with California over EVs will affect the entire auto industry

An electric vehicle charges in California
A Trump spokesperson said the president-elect would create policies to support both gas-powered cars and electric vehicles.

PATRICK T. FALLON/AFP via Getty Images

  • The Biden administration on Wednesday approved California's ban on gas cars by 2035.
  • Trump has promised to revoke California's authority to set strict limits on tailpipe pollution.
  • It's a high-stakes fight over the future of electric vehicles and tackling the climate crisis.

The stage is set for another battle between President-elect Donald Trump and California over the state's aggressive push for electric vehicles that could affect the rest of the country.

The Environmental Protection Agency on Wednesday said California can go ahead with its ban on the sale of new gas-powered cars by 2035. The approval is an attempt to safeguard the state's strict limits on tailpipe pollution from Trump's promise to revoke them and roll back other federal incentives for electric vehicles.

The stakes are high for automakers because what happens in California can dictate companies' broader EV strategies and the pace of the country's shift away from fossil fuels. The state accounts for some 11% of the US auto market and is also the top EV market in the country. In the first half of 2024, EVs and hybrids accounted for nearly 40% of sales in California.

On top of that, 11 other states and Washington D.C. have adopted rules similar to California's as they seek to reduce the country's largest source of greenhouse gas emissions. The rules require automakers to sell a growing number of zero-emissions vehicles over time. In 2026, at least 35% of new cars, pickup trucks, and SUVs must be electric in California and five other states, while other states' targets kick in in 2027.

Automakers largely support easing emissions regulations

While Trump will face legal challenges in trying to roll back California's rules, he could find some automakers on his side.

The Alliance for Automotive Innovation, a lobbying group representing most new vehicle manufacturers in the US, has already asked Trump to ease emissions regulations but keep federal tax incentives that keep EVs affordable.

John Bozzella, president of the alliance, said Wednesday that the waiver was an expected development and the Trump administration will likely revoke it next year.

"We've said the country should have a single, national standard to reduce carbon in transportation," Bozzella said in a statement. "But the question about the general authority of California to establish a vehicle emissions program – and for other states to follow that program – is ultimately something for policymakers and the courts to sort out."

Trump, some Republican lawmakers, and groups linked to fossil fuel interests have repeatedly attacked EVs on the campaign trail, falsely claiming that Americans would be forced to abandon their gas-powered vehicles.

Those attacks come as the EV market deals with a marked slowdown in demand, forcing many companies to reasses their long-term plans for battery-powered cars and, in some cases, add more hybrids to the mix. A pullback in production has made it harder for many companies to meet long-term emissions requirements. Automakers including General Motors, Ford, and Stellantis have laid off thousands of workers.

Auto market analysts, environmental lawyers, and policy experts told Business Insider that they expect the shift to zero-emissions vehicles to continue regardless of who's in the White House β€” albeit at a slower pace if Trump and Congress overturn tax incentives to buy EVs and investments in charging infrastructure.

"Whatever the Trump administration does this time, automakers' concerns about stability will come up again because all of these manufacturers have said zero-emissions vehicles are the future," Sean Donahue, an attorney who's represented the Environmental Defense Fund in litigation over California's emissions waiver, said.

He added that there's pressure from regulators in other countries to address the climate crisis. US automakers also don't want to fall far behind competitors in countries like China, where affordable EVs have taken off.

California looks to 'Trump-proof' its regulations

Even if Trump does revoke California's emissions waiver, Gov. Gavin Newsom is already trying to "Trump-proof" the state, including its EV and climate policies.

Newsom said he would restore rebates for consumers who buy EVs if Trump ends the federal $7,500 tax credits enacted in the Inflation Reduction Act. This month, the state's energy commission approved a $1.4 billion investment in EV charging and hydrogen fuel stations over the next four years. The commission said the funding could help build nearly 17,000 new public chargers for passenger vehicles β€” on top of the 152,000 available now.

Newsom also convened a special legislative session to bolster California's defenses against Trump's attacks. Lawmakers could pass $25 million in new funding for the California Department of Justice so the state can file litigation against the Trump administration. That will likely happen if Trump revokes the state's tailpipe pollution waiver.

Karoline Leavitt, a spokeswoman for the Trump transition team, said that Trump plans to stop what he says are attacks on gas-powered cars.

"When he takes office, President Trump will support the auto industry, allowing space for both gas-powered cars AND electric vehicles," she said in an email.

Ann Carlson, a professor of environmental law at the University of California at Los Angeles, told Business Insider that she expects the Trump administration to face an uphill legal battle.

She said the EPA has approved California's authority to set strict rules for tailpipe pollution for decades because the state's air quality is so bad. Otherwise, areas including Los Angeles and the Central Valley wouldn't comply with federal air pollution laws and could be penalized.

"The sanction is the withholding of federal highway funds," Carlson β€” who recently served as chief counsel to the National Highway Traffic Safety Administration β€” said. "It's quite draconian. So California has a pretty good argument that it needs these waivers to meet federal law."

The Supreme Court last week agreed to consider a lawsuit that oil and gas producers filed against the EPA over its waivers allowing California to set stricter limits on tailpipe pollution than the federal government. However, SCOTUS will only decide whether fossil fuel makers have standing to sue over what they say is bureaucratic overreach and won't consider whether California's waiver is legal.

James Di Filippo, a principal policy analyst at the research firm Atlas Public Policy, said automakers will likely continue to walk back their EV investments while the legal battles play out. Companies could seek another compromise with California to restore more certainty as they plan new vehicle models for years to come.

"If they're uncertain about a regulatory outcome, they'll default to a less intense push," he said.

Read the original article on Business Insider

How to get the most out of your electric vehicle's range

SIgn for electric vehicle charging station
To maximize your EV battery's lifespan, don't overcharge it, an electric-vehicle expert told Business Insider.

Smith Collection/Gado/Getty Images

  • EV owners experience range anxiety despite advancements in mileage numbers and charging speeds.
  • Maintaining battery health requires optimal charging levels and managing temperature and speed.
  • This article is part of "Getting Ready for Electric," a series of guides and practical advice for buying your next EV.

Electric vehicles have come a long way since their debut about 15 years ago. One of the first EVs, the Nissan Leaf, had just over 120 miles of range. Meanwhile, many of today's EVs boast 400-plus miles on a single charge.

That hasn't stopped EV owners from feeling what's known as "range anxiety." If your gas tank says you have only 50 miles left, there's comfort in knowing you can quickly find a gas station and fuel up in five minutes. With electric, though, "drivers tend to watch the miles-remaining estimate way more than they did in the gas car," John Higham, a board member of the Electric Vehicle Association, said.

So for many consumers who have purchased an electric vehicle, or are ready to take the plunge, range is a big factor. How do you keep your car's range going strong?

You don't need to become an engineer or battery expert to keep your EV in top shape. Following a few simple tips can help you make the most of your car.

As Higham said: "Arming yourself with a few facts will help alleviate some anxiety."

Find the charging sweet spot

Best practices for charging your car depend on which vehicle you have and the composition of its battery.

"When you buy or lease an EV, the dealer or manufacturer" lets you know "the best charging level for the vehicle," said Ingrid Malmgren, a senior policy director at Plug In America, an organization focused on EV education, advocacy, and research.

For many vehicles, keeping the battery charged between 20% and 80% can minimize stress on the battery cells, according to Aatish Patel, the president and cofounder of XCharge North America, a provider of EV charging solutions.

Think of it like charging your phone, said Mark Barrott, a partner in the automotive and mobility practice at the consulting firm Plante Moran. Leaving your phone plugged in for a long time after it's reached 100% can overcharge the battery and could reduce its capacity over time.

On the flip side, other vehicles and batteries function better when charged to 100%, Malmgren said.

She and Higham advised reading the owner's manual and following the manufacturer's recommendations for charging your car.

EV owners don't necessarily need to shy away from fast chargers. In extreme circumstances, like if the battery is under 5% or over 90%, fast charging could stress the battery, Malmgren said. But her organization has seen many EV drivers who used fast chargers for years and didn't see abnormal battery loss.

Car and battery makers have also refined the technology so that batteries can accept charge much faster. At this point, the time to charge your EV is similar to how long it takes to fill your gas tank, Barrott said. That helps with range anxiety, since a low battery doesn't mean you'll be waiting hours before you can get on the road again.

Regulate your car's temperature and speeds

Modern EVs are designed to maintain their own temperatures, but you can help further that. If possible, park in the shade when it's hot or inside a garage if it's cold.

Range can decrease in colder temperatures. It's a best practice not to leave your car with a nearly zero charge in extremely cold weather. Owning an EV in a cold climate isn't a dealbreaker, though.

"Hey, over 95% of car sales in Norway are electric, where it actually gets cold," Higham said. "EVs do work in the cold. You just need to know how they are affected."

You can also regulate your car's speeds, accelerating and braking smoothly when it's safe to do so, which helps prolong the vehicle's range. Aggressive acceleration can wear on the battery over time, Patel said.

Carmakers are betting big on EVs

The technology continues to advance as the auto industry invests in electric vehicles. Carmakers, battery manufacturers, and charging providers continue to look for ways to lengthen range, "working together in concert to design solutions that make sense," Barrott said.

If you're already an EV owner and suspect your car's range may be declining, contact your dealer or manufacturer. Technicians can check out your car, and there may be software updates to make the vehicle more efficient. Battery replacements, which are extremely rare, may be covered under warranty.

But for the most part, unless you spot a big red flag, experts say you don't need to worry about your car's battery health or have anxiety about your EV's range. Stick to the manufacturer's recommendations for charging, and do your best to avoid extreme temperatures or speeds.

"Focusing on proper habits ensures you get the most out of your EV for years to come," Patel said.

Read the original article on Business Insider

Jaguar's rebranding rollout was either a 'brilliant' way to get attention — or a 'dangerous strategy.' Ad vets weigh in.

The vision concept for a new blue jaguar viewed from the side.
Jaguar's concept car came after a controversial reveal of the brand's new image.

Jaguar

  • Jaguar's rebrand has been controversial β€” but its rollout might also be a genius move.
  • Advertising veterans told Business Insider the strategy could help mark a new era for the brand.
  • Still, not everyone was convinced: Other marketing experts said Jag's final product might disappoint.

Jaguar has generated a lot of buzzΒ since unveiling its rebranding campaign, culminating this week with the release of a conceptual design for its next generation of electric vehicles.

When the luxury British carmaker debuted its redesigned logo, brand philosophy, and promotional video last month, it stirred up controversy on social media. Some conservative personalities argued that the new aesthetic abandoned Jaguar's heritage and pushed into "woke" politics, while others questioned why the promo video didn't feature any cars.

That first phase of Jaguar's rebrand had some advertising veterans divided on whether the strategy was a smart move for the iconic brand.

And that division carried through to Jag's latest update on Monday, which finally paired images of cars with its "exuberant modernism" vision. Now that concept cars are connected to the initial rebranding video, some marketing professionals are praising Jaguar's "brilliant" strategy β€” while others remain less convinced.

jaguar PR photo showing models walking in pink desert
Jaguar's video ad, released in November, featured models in colorful, modern clothing but didn't show any cars.

Jaguar

"Jaguar's paced unveiling is a brilliant strategy to keep people talking and interested in a highly competitive auto marketplace," Jim Heininger, the founder and principal of the Chicago firm The Rebranding Experts, told Business Insider after seeing the conceptual car rollout.

"This is a master class in what rebranding can accomplish for a company β€” a new forward-facing product and brand, clearly designed for its new customer persona, that everyone is talking about," he said.

Heininger β€” whose 30-year career includes work for P&G, McDonald's, and Anheuser-Busch β€” argued that Jaguar set high expectations when it debuted its controversial rebrand last month.

He said the concept car unveiling delivered on those expectations. The car effectively signals the company's "boldly modernistic" vision and "departure from the past," he said. The colors, design shapes, and new logo "feel right when you see it on the concept car."

The concept vision for a new pink Jaguar car seen from the front.
A front view of Jaguar's concept car.

Jaguar

Greg Andersen, the CEO of the Omaha, Nebraska, creative agency Bailey Lauerman, also lauded Jag's marketing strategy.

"What exceeds expectations is the breadth and depth of the Jaguar brand vision," said Anderson, who's worked for brands such as Google, Levi's, Burberry, and Axe before joining Bailey Lauerman.

"They have revealed much more than a concept car," he said. "It seems it is the beginning of the story of the Jaguar brand vision, which they can easily chapter out and stretch to the production model reveal."

But looking to the future, Andersen said the company's strategy has to remain well-executed when it comes time to reveal its new EV, which the company has said it expects to happen in late 2025 before hitting showrooms in 2026.

"I think the biggest risk for them now is making sure the production model lives up to the promise and doesn't suffer death by a thousand cuts," Andersen told BI. "Rolling out an unapologetic, future-facing brand along with a marginally better car might not go so well."

The proof of success will be in the production model

Still, not all of the ad veterans who spoke to BI had so much praise for Jaguar and its rebranding rollout.

Christos Joannides, the founder and creative director of the luxury branding agency Flat 6 Concepts in Los Angeles, told Business Insider that Jaguar's initial rebranding announcement did too much all at once, "overwhelming and confusing" the carmaker's long-standing audience.

And, in releasing its concept car this week, Jaguar didn't do enough to ground its new ethos in reality, Joannides said.

Joannides, who's worked with Jaguar competitors like Maserati and Lotus, argued that the concept car's features, like the rear with no window and the brass-toned divider running through the middle of the cabin, are impractical and bizarre.

vision concept car interior brass lines
Three brass lines run through the length of the concept car, with one right down the middle.

Jaguar

"By showcasing a production model with more realistic features, Jaguar could have conveyed its vision more effectively and provided tangible evidence of its direction," Joannides said. "As it stands, the concept car feels superficial and gimmicky, like a desperate attempt to be different without any real substance or coherent strategy."

Joannides said that while Jaguar's initial teaser video was "certainly audacious," the final product would be what matters.

Richard Brandon Taylor, the founder and CEO of the UK-based brand consultancy firm Brandon, told BI that while Jaguar's rebrand was a smart play in some ways because it got everyone talking, there's still a significant period of time before the first production model comes out to try to maintain that buzz.

"Why they've left a year between concept and car is beyond me β€”Β that is a dangerous strategy to play," said Taylor, who's worked with brands like Coca-Cola, Kraft Heinz, and Kimberly-Clark.

Sunny Bonnell, the cofounder and CEO of the strategic branding firm Motto, said that to hold the audience's attention until the new cars hit the market, Jaguar needs to dive deeper into the "why" behind the rebrand.

"What does 'Copy Nothing' mean in practice?" said Bonnell, who's worked with brands like Google and Virgin. "How will it shape the driving experience, not just the look?" To do that, Jaguar needs a storytelling narrative, she said.

Jaguar's next steps in its rebranding rollout

It's unclear which specific design elements of the new concept will be implemented in Jaguar's forthcoming electric-vehicle models. Jaguar said its concept car was "an indicator of design philosophy and intent for the coming new vehicles," which are expected to be available for purchase sometime in 2026.

The new EV model will use dedicated Jaguar Electric Architecture, have a projected driving range of up to 430 miles on a single charge, and be able to add up to 200 miles of range after 15 minutes of rapid charging, the company said.

And the new EVs are expected to be much more upscale than previous Jags. Though Jaguar has not confirmed a price range, Wired reported, without citing a source, that the new Jag could cost at least $127,000 β€” a significant increase from current average price of around $70,000.

"We have forged a fearlessly creative new character for Jaguar that is true to the DNA of the brand but future-facing, relevant, and one that really stands out," Rawdon Glover, Jaguar's managing director, said of Monday's concept debut.

Update: December 5, 2024 β€” This story has been updated with comments from two additional marketing veterans.

Read the original article on Business Insider

Stellantis CFO reveals 2 tensions around the CEO's abrupt exit and promises to rebuild trust

Former Stellantis CEO Carlos Tavares
Controversial Stellantis CEO Carlos Tavares resigned early on Sunday. His term was set to end in early 2026.

Magali Cohen / Hans Lucas / Hans Lucas via AFP

  • Stellantis CEO Carlos Tavares abruptly resigned on Sunday.
  • The Jeep-maker's CFO on Wednesday gave one of the first public interviews since the departure.
  • He described disagreements between the company's board and the former CEO.

A top Stellantis executive on Wednesday gave an internal peek into CEO Carlos Tavares's abrupt exit.

Doug Ostermann, the Jeep maker's CFO, said at an investor conference that he noticed a divergence between Tavares and the company's board on two key issues: operational priorities and how leaders interacted with key stakeholders like dealers, suppliers, and unions.

Tavares stepped down on Sunday. Ostermann said Tavares and the board couldn't agree on how to run the company through the end of his tenure, previously scheduled to last until early 2026.

Most of the disagreements "related to tactical issues on how to run the business over that kind of short-term time period and what actions should be taken in regard to short-term metrics versus longer-term benefit of the company," Ostermann said in response to a question at a Goldman Sachs conference.

Critics of Tavares have argued that his cost-cutting actions, particularly in the Jeep brand, created a short-term illusion of success while fueling a long-term problem for demand in the critical US market. He cut popular models like the Jeep Cherokee and Renegade, which will now return in 2026.

His decision to step down from the top job at Stellantis came after months of pressure from disgruntled investors, dealers, and union officials.

"We need to build back trust," Ostermann said. "There's a strong desire among the management team today to really work on that β€” and it'll take time."

On the road to recovery

Parting ways with Tavares was a good first step in rebuilding trust, US dealers and union leaders said.

Dave Kelleher, a Chrysler-Dodge-Jeep-Ram dealer in Pennsylvania, told Business Insider he was encouraged by the company's about-face from its previous commitment to Tavares through his initial contract and saw the CEO's departure as a sign that dealers' concerns were being taken seriously.

"It was clear to me, and to other dealers, that we needed to move on quickly and get this thing on the right track," Kelleher said.

Stellantis's US sales this year through September, the most recent report, were down 17% compared to a year ago. Profit-generators Jeep and Ram posted the biggest volume losses, with Jeep ceding significant market share to competitors like Hyundai in the affordable SUV segment.

Stellantis's US dealers released an open letter to Tavares over the summer, accusing the chief executive of "reckless short-term decision-making" that has had "devastating, yet entirely predictable, consequences in the US market."

UAW President Shawn Fain released a statement this week calling Tavares's exit a "major step in the right direction."

"For weeks, thousands of UAW members at Stellantis have been calling for the company to fire Carlos Tavares due to his reckless mismanagement of the company," Fain said in the statement. "We are pleased to see the company responding to pressure and correcting course."

Fain also said that the union is still committed to holding Stellantis accountable amid planned layoffs the union says violate the 2023 collective bargaining agreement.

"We are looking forward to sitting down with the new CEO, backed up by thousands of UAW Stellantis members ready to take action, and discussing their plan to keep making world-class vehicles here in the United States," Fain said.

Read the original article on Business Insider

Jaguar releases a concept for its new EV model after a controversy over its rebranding — which didn't feature a car

The concept vision for two new Jaguar cars in blue and pink.
Jaguar debuted a concept car ahead of its all-electric vehicle lineup, seen here in "Miami Pink" and "London Blue."

Jaguar

  • Jaguar has unveiled a concept car as part of its newly rebranded identity.
  • Its rebrand stirred controversy for not including any cars β€” and some argued it was "woke."
  • Jaguar said it would reveal a new electric model in late 2025 as part of its all-electric future.

Jaguar unveiled a design concept on Monday for its next generation of electric vehicles β€” finally pairing an image of a car with its "exuberant modernism" rebranding campaign.

Jaguar's rebrand had drawn fierce criticism over the past few weeks from some who said it was "woke" for featuring diverse models and bright colors. The campaign also didn't feature any cars.

Now, the luxury British carmaker has filled in some of the blanks regarding its new identity by revealing a concept car at Miami Art Week.

The concept vision for a new pink Jaguar car seen from the front.
A front view of Jaguar's concept car.

Jaguar

The exterior of the concept car β€” dubbed "Type 00" for zero tailpipe emissions and its status as car zero in the brand's new lineage β€” features butterfly doors, a glassless rear tailgate, and a panoramic roof.

It's conceptualized in two colors β€” "Miami Pink," honoring the pastel art deco architecture of the city in which it was unveiled, and "London Blue," inspired by the Opalescent Silver Blue of the 1960s and in honor of the company's British roots, Jaguar said in a statement.

"Type 00 commands attention, like all the best Jaguars of the past," Jaguar's chief exterior designer, Constantino Segui Gilabert, said in the statement. "It is a dramatic presence, channeling a unique spirit of British creativity and originality. It celebrates art and embodies the essence of Exuberant Modernism."

The vision concept for a new blue jaguar viewed from the side.
A side view of Jaguar's concept car.

Jaguar

A wheel on a pink car with a simplistic logo in the center.
The wheels of the concept car feature Jaguar's new logo.

Jaguar

The Jag's exterior design also showcases the redesigned Jaguar "leaper" mark laser-etched into brass ingots that open up to reveal rear-facing cameras when needed.

On the inside, three brass lines run the length of the interior β€” one on each door and one straight down the middle of the cabin.

Floating instrument panels mark either side of the middle brass line, which is supported by a pedestal of travertine stone, as are the floating seats.

A woven wool-blend fabric surrounds the two seats, sound bar, and cabin floor.

"Just as on the outside, deployable technologies are a hallmark of the interior," Jaguar's chief interior designer, Tom Holden, said in the statement. "Screens glide silently and theatrically from the dashboard, while powered stowage areas slide open softly on demand, revealing hidden splashes of exuberant color."

vision concept car leaper mark showing camera
Jaguar's new "leaper" mark pops out the side of the concept car to reveal a camera.

Jaguar

vision concept car interior brass lines
Three brass lines run through the length of the concept car, with one right down the middle.

Jaguar

vision concept car interior cabin view
An interior view of Jaguar's concept car.

Jaguar

It's not clear which specific design elements of the new concept will end up being implemented in Jaguar's forthcoming electric vehicle models. Jaguar said Type 00 was meant as "an indicator of design philosophy and intent for the coming new vehicles."

The brand announced in 2021 that it would be moving to all-electric vehicles. The first model of its new lineup β€” an electric four-door β€” will be unveiled in late 2025, the company said Monday.

It said the model would use dedicated Jaguar Electric Architecture, have a projected driving range of up to 430 miles on a single charge, and be able to add up to 200 miles of range after 15 minutes of rapid charging.

With the new vehicles expected to become available in 2026, the company is already phasing out production of its internal-combustion-engine cars, converting its Halewood, England, factory to all-electric production andΒ ceasing sales of new cars in the UK.

In preparation for its EV lineup launch, Jaguar debuted its rebranding campaign in November. It included an updated typeface for its "Jaguar" logo, a redesign of the leaping jaguar mark, and a colorful new video advertisement that showed models clad in high fashion and had no cars in sight.

The new Jaguar logo.
The British carmaker released a redesigned logo this week.

Jaguar

The promo video caught a lot of flak on social media, on late-night TV, and in the media for not featuring any cars, while some conservative personalities accused the company of abandoning its history and pushing into "woke" politics. Elon Musk even weighed in.

In an interview with the Financial Times, Jaguar's managing director, Rawdon Glover, defended the rebrand, saying that the campaign's intended message was lost "in a blaze of intolerance" and that the controversial promo video wasn't meant to be a "woke" statement.

The revamp of the iconic brand β€” and chosen vehicle of Britain's royal family and prime ministers β€” also included an introduction to its new design philosophy of "exuberant modernism," which the company defined as "imaginative, bold, and artistic at every touchpoint."

A model in the new Jaguar video ad wearing an orange dress and holding a big yellow hammer. There is a text overlay that says "break moulds."
Jaguar's new video ad has baffled people online.

Jaguar

Some marketing and rebranding experts have heavily criticized Jaguar's new identity.

One told Business Insider the rebrand was "bonkers," and another said he wasn't convinced the company was making the right statement.

Still, others were more positive, with one advertising expert saying the rebranding rollout had been relatively successful and another saying it was a "significant disruption" that could eventually work for the company.

image of old jaguar car
An SS Jaguar 100, which was built between 1936 and 1941 by SS Cars, the company that preceded Jaguar before its founder, Sir William Lyons, renamed it in 1945.

Universal History Archive/Universal Images Group via Getty Images

It's not just the shift in Jaguar's brand identity that has gotten marketers talking β€” it's also the apparent pivot in the audience base the company is now trying to target.

As part of the brand's positioning, the newly announced Jags are expected to be significantly more upmarket than the ones being phased out. Car and Driver previously reported that the brand, which is owned by India's Tata Motors, was looking toward Range Rover, its corporate cousin, as inspiration for where it wants to be. The magazine cited a Range Rover that costs about $400,000; most Jaguar models for 2024 had list prices of about $50,000 to $80,000.

"We have forged a fearlessly creative new character for Jaguar that is true to the DNA of the brand but future-facing, relevant, and one that really stands out," Glover said of Monday's concept debut.

Read the original article on Business Insider

Jaguar's rebrand has been criticized as 'woke.' Marketing experts say it's either 'bonkers' — or a genius disruption.

picture of model from Jaguar video ad
Jaguar's new video ad has baffled some people online.

Jaguar

  • Branding experts have mixed reviews on Jaguar's new identity but agree it's a radical change.
  • Jaguar's rebranding campaign sparked debate over its new image β€” and carless promo video.
  • Jaguar wants to target a younger, wealthier audience as it transitions to an all-electric future.

Jaguar's controversial new rebranding campaign has stirred a ton of discussion across social media, late-night TV, and in the news.

Some conservative social media users have railed against the company as going "woke." Others have questioned why Jag's new promotional video didn't contain any cars.

But what do marketing and rebranding experts think of Jaguar's transition? Their reviews are mixed, ranging from one who called it a it a "bonkers" strategy to another who said it was a relatively "successful" rollout.

One thing they agree on: It's a radical change for a legacy brand like Jaguar.

The high-end British carmaker β€” Jaguar has been an icon of elegance and luxury for nearly a century β€” first unveiled its rebranding campaign in late November. It included a new typeface for its logo, a redesigned leaping jaguar mark, and a colorful promotional video that featured high-fashion models β€”Β and no cars.

The rebrand comes as Jaguar prepares to entirely abandon its internal combustion engines in favor of a new all-electric future.

Copy nothing. #Jaguar pic.twitter.com/BfVhc3l09B

β€” Jaguar (@Jaguar) November 19, 2024

Will Sears, the founder and CEO of Cincinnati-based marketing agency W.Bradford, said the intent behind Jaguar's new branding rollout is unclear. And he said he was confused by the decision not to include any cars in the video.

Sears, who has worked on campaigns for Eli Lilly, L'OrΓ©al, and Vegas.com, told Business Insider that Jaguar changed too many things at once in its rebrand launch. Updating the logo is a "huge change" on its own, he said, but then combined with the conceptual ad that didn't have any cars β€” it could all be too much for the consumer to take in.

"So now consumers who follow this are completely unfamiliar with what they're looking at," Sears said. "What has made them a solid brand is the beautiful design and performance of their cars: That is not on display at all β€”Β in any even cryptic way. So it's very confusing to the market."

Sears added: "I think we are all hoping, or people who follow this are all hoping, that their next steps in this campaign are remedying what is kind of a bonkers rollout."

Getting attention is success on its own

Another marketing expert said the eyeballs the rebranding has attracted could be considered a win for Jag.

Jim Heininger, the founder and principal of Chicago rebranding firm The Rebranding Experts, told Business Insider that Jaguar has clearly received a lot of attention over its rebrand β€” and that's a kind of success in itself. (The YouTube video of the Jag rollout has more than 160 million views so far.)

"I think what they're doing is just kind of stirring up some emotions and stirring up some creative kind of look and feel of what the new brand is going to look like," said Heininger, whose 30-year career includes work for P&G, McDonald's, and Anheuser-Busch. "It wasn't necessary that they show cars. They're just trying to get our attention at this point in time, and they're doing that successfully."

It's not just the shift in Jaguar's brand identity that has gotten marketers talking β€” it's also the apparent pivot in what audience base Jaguar is now trying to target.

As part of the brand's positioning, the newly announced Jags are expected to be significantly more upmarket than the ones that are being phased out. Car and Driver previously reported that the brand, which is owned by India's Tata Motors, was looking toward its corporate cousin Range Rover as inspiration for where it wants to be. The magazine cited a Range Rover that costs around $400,000; most Jaguar models for 2024 had list prices of around $50,000 to $80,000.)

image of new leaping jaguar logo
Jaguar's revamped makers mark, the leaping jaguar.

Jaguar

Chris Bowers, the founder and CEO of branding agency CMB Automotive Marketing, which has offices outside Detroit and in the UK, said he's "not 100% convinced" Jaguar's rebranding is making the right statement but said the company is clearly trying to define a new audience.

"The only thing I can guess is that they're intentionally alienating their existing customer base," Bowers said, who has decades of experience building brands for major suppliers, manufacturers, and technology companies from the auto industry.

"They want to make a break from their existing customers to attract a younger, wealthier demographic who are more interested in style and individuality," Bowers said. "They're taking a massive gamble on the existence of a market who will be interested in them β€” and Jaguar know they can't attract them with the old brand."

Reorienting a brand to an entirely new audience is a "massively difficult" endeavor, Heininger said.

Jaguar is signaling a significant disruption

It can also be very risky, one advertising expert said.

"It's a risk to so radically divorce a brand from its inherent equities," Greg Andersen, the CEO of Omaha-based creative agency Bailey Lauerman, told Business Insider. Before joining Bailey Lauerman, Andersen worked for brands, including Google, Levi's, Burberry, and Axe β€”Β and also on several automotive campaigns, including Cadillac and Toyota.

"But at the same time," he said, "I think this work could eventually make sense if their vehicles are going to take the brand and the category in a completely different direction from the norms and dogma of the past. It's obviously a signal of significant disruption."

While the relevance and relatability of Jaguar's rebranding campaign have been much debated, each expert concluded that it represents a massive change for the brand β€”Β and change can be hard to accept.

But change is exactly what Jaguar said it wants as it heads into its EV-only future.

"Our brand relaunch for Jaguar is a bold and imaginative reinvention and, as expected, it has attracted attention and debate," the company said in a statement to Business Insider. "The brand reveal is only the first step in this exciting new era, and we look forward to sharing more on Jaguar's transformation in the coming days and weeks."

Jaguar said it would announce more details about its new branding strategy in December, though it's not clear whether that will include specifics about any of its forthcoming electric vehicles.

Read the original article on Business Insider

I drove the Xiaomi SU7 that Ford's CEO raved about. An EV from a smartphone maker simply shouldn't drive this well.

Xiaomi SU7
The SU7 is the first vehicle made by Xiaomi.

Mark Andrews

  • Chinese smartphone maker Xiaomi started selling its first car, the SU7, earlier this year.
  • Ford's CEO says the EV is "fantastic." Our reviewer says it looks good and delivers on performance too.
  • The SU7 simply shouldn't drive this well given it's from a company that has not produced vehicles before.

Ford CEO Jim Farley made headlines recently after saying he'd been driving a Chinese EV for the past six months β€”Β and didn't want to give it up because he thought the car was "fantastic."

The car in question is perhaps the year's biggest sensation in China's EV market: the Xiaomi SU7.

Xiaomi is not that big a name outside Asia despite being one of the world's biggest smartphone makers. It's the latest to enter the hypercompetitive Chinese EV market, in which the only Western company doing well these days is Tesla.

There's no doubt the SU7 is a looker; the problem is it looks a bit too much like a few other well-known sports cars. Luckily, I found the car not only looks the part but delivers the goods when it comes to performance, too.

My test drive was quite limited by time, so I didn't get to try the car as fully as I would have liked. One of my first experiences was driving it down into an underground parking lot for a wash before the video shoot.

With the tight spiral, the SU7's near-five meter (16.4 foot) length proved a challenge, although the array of sensors offering a 360-degree view on the screen helped. The car has a respectable turning radius of 5.7 meters (18.7 feet).

Given Xiaomi's consumer electronics origins, the SU7 is packed full of equipment. The infotainment screen in the center is impossible to miss, and there's also an instrument screen that revolves to greet you. My car even had a fridge in the center console large enough for about six canned drinks, although I later discovered it's an optional extra.

Once on the move, the wide-angle heads-up display takes center stage. I would say the SU7's emphasis tends to be on tech rather than creature comforts. Yes, there is a 25-speaker sound system that boasts Dolby Atmos 7.1.4 β€” but even on my top-spec Max version, the leather seats are an add-on cost.

Xiaomi SU7 interior
The Xiaomi SU7 has plenty of storage spots.

Mark Andrews

You can forget a massage seat function that's common on many Chinese EVs. Yet you will find a fixed panoramic roof, and rear passengers have a reasonable amount of space.

Talking of space, the designers put in storage places for all your gadgets. A laptop fits in the glovebox, there's a pocket for a smartphone on the front passenger door, and front seat headrests have tablet mounts for back-seat entertainment.

The car also has the largest "frunk" I've seen on a Chinese EV: 105 liters of space hidden under the hood.

For a car from a company that had never produced a vehicle before this year, the SU7 simply shouldn't drive this well. In fact, it is one of the best-handling Chinese EVs I've driven to date. Although my test didn't really push the car that hard, it remained stable when cornering at speed and felt like it could be thrown around corners thanks to firm, well-weighted steering.

Xiaomi SU7
The SU7 has impressive handling and performance.

Mark Andrews

On paper, the Max version has formidable performance, with a 0-62mph acceleration time of just 2.78 seconds. However, that requires "Launch Control" mode and my test conditions didn't feel safe enough to try it. I did try flooring it from a standstill in the Sport mode, though, and that was certainly fast enough.

The Max is the only version to use a dual-motor setup. The single-motor versions do the dash in a pedestrian in 5.28 seconds.

Along with the Pro version, the Max is equipped with lidar and a suite of other sensors and can provide what is known for legal reasons as "driving assistance."

Unlike Tesla, most Chinese companies use lidar β€” a laser-based ranging device used for detecting objects on the road.

Despite having driven many Chinese cars with such systems, Xiaomi would only let me experience the system as a passenger for safety reasons. While it seems to work, the limited demonstration left me feeling it doesn't function as well as the systems from Huawei and XPeng.

A supercar at everyday prices

Xiaomi sold out of this year's planned production run within days of the SU7 going on sale in March. It's increased production to 20,000 cars a month and is having no difficulty finding buyers.

From my limited test drive, I can see the appeal very well: it's a supercar at everyday prices. My test car came in at a bargain $41,500 equivalent in renminbi, and the range starts at an even more affordable $29,900.

While the SU7 was on display at the Paris auto show this summer, don't get too excited β€” you won't be able to buy one outside China anytime soon.

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Holiday car deals are back, and it could be your last shot at a really cheap electric vehicle

Ford Mustang Mach-E electric vehicles on a dealer lot
Electric vehicles are likely to have the best discounts on dealer lots this holiday season.

Scott Olson/Getty Images

  • It won't be hard to find a deal on a car this holiday season.
  • The best deals will be concentrated in the EV market.
  • It might be your last chance to get a really good deal on an EV.

This holiday season could be your last chance to get discounts worth thousands of dollars on electric vehicles.

Holiday car deals overall are expected to be generous this year, as several brands face oversupply. Edmunds data said brands with some of the deepest discounts in November include Stellantis's Ram and Volkswagen's Audi, both of which have struggled with slow sales this year.

But the best deals will likely be concentrated in the EV market, where car companies are looking to offload the last of their oversupply before pulling back production next year in response to slower demand.

This holiday season is likely to be the last gasp for the big EV discounts that dominated the market in 2024, according to Ivan Drury, an automotive analyst for car-shopping website Edmunds.

It has been a topsy-turvy year for the EV market as companies scrambled to adjust their offerings to meet changing demand. The wealthy early adopter buyer base dried up, and was replaced by bargain-hungry shoppers more willing to compromise with a hybrid.

That has been a problem for many car companies, who are just now rolling out big, expensive EVs.

An ongoing price war in the segment has led to a buyer's market for EVs, particularly when it comes to leasing. Access to aΒ $7,500 EV tax creditΒ has also helped car companies by further lowering purchase prices and stimulating demand.

These discounts could end in the near future, as President-elect Trump has vowed to dismantle them.

Here's what you need to know when hunting for an EV deal this holiday season.

EV discounts should be bigger than gas-car deals

Look no further than the EV market if a great deal is all you're after.

Manufacturers and dealers have spent most of this year trying to offload slow-moving EVs, which means that the discounts are much deeper than other car segments.

For people purchasing an EV, the average discount on an electric vehicle in November was more than $3,560 off the sticker price, according to Edmunds. That's compared to an average discount of $1,885 on gas-powered vehicles.

Any EV will likely cost more overall than a comparable gas-powered alternative, however, even with these discounts (and a potential $7,500 federal EV tax credit).

Discounts included, the average price of an EV last month was $59,228, or about $12,000 more expensive than the average price paid for a gas-powered car in the same period.

Focus on the monthly payment

If you want a deal and you're on a tight budget, leasing may be the way to go.

Thanks to a mix of discounts and government incentives, a good lease deal can help you get a lower monthly payment for an EV than a gas-powered car.

EVs with sticker prices under $50,000 in November leased for an average of $44,570 when including discounts offered by the dealer or manufacturer, according to Edmunds. With downpayments around $2,400, the average monthly payment on these EVs was $428. That's $144 a month cheaper than the same segment of gas-powered cars.

EV leasing has taken off in the second half of this year as dealers and manufacturers take advantage of a loophole in the tax credit rules. Leases now account for a majority of EV purchases, according to Edmunds, as green-car shoppers prioritize affordability.

Dealers and manufacturers like these leases because more of their vehicles can qualify for the additional $7,500 EV tax credit. Restrictions that went into effect in January made it harder for EV purchasers to qualify for this credit, but lessees are not held to the same standards.

Leasing is a lower-stakes financial commitment in general, as the lessee is only responsible for the depreciation during the lease term.

The monthly payment on a lease is also more malleable than on a financed car because it is calculated with somewhat squishy numbers. The lender subtracts the estimated residual value of the car from the current value and dividing that by the lease term (plus taxes and fees, of course).

Read the original article on Business Insider

The full list of auto companies cutting jobs, including GM, Ford, and Stellantis

New Volkswagen cars at a factory
Volkswagen and other automakers battling with sliding sales this year.

Hendrik Schmidt/dpa/Getty Images

  • Car companies are scrambling to adjust to a rapidly changing EV market.
  • Restructuring efforts include massive job cuts in some cases.
  • Cost-cutting measures come as automotive execs double down on expensive EV commitments.

A protracted transition to electric vehicles is taking its toll on global car companies, many of which still have yet to profit from battery-powered vehicles.

Demand for EVs, particularly in the critical US market, has slowed considerably this year as green car shoppers get more frugal and practical. This presents a problem for car companies that need mass adoption to deliver profits for these expensive vehicles.

Automotive executives have been scrambling to adjust to this new EV market, pulling back on some EV production and speeding up the development of more popular hybrid cars. As 2024 draws to a close, many manufacturers opt for more drastic cost-cutting options as they continue investing heavily in EV technology.

Major car companies like Detroit's GM, Ford, and Stellantis have begun slashing jobs as they cut costs and reshape their business models for this next stage of the EV transition.

Here are all car companies with job cuts planned or already underway in 2024.

General Motors lays off about 2,000 employees

Detroit car giant General Motors laid off about 2,000 workers in two rounds of layoffs in August and November. GM cited cost cutting and changing market conditions in both instances.

The majority of the 1,000 jobs cut in November were white-collar, but the United Auto Workers union reported that about 50 of its members were also affected. According to reports, most affected workers were stationed at GM's global technical center in suburban Detroit, where most design and engineering work occurs.

Prior to the November job cuts, GM also trimmed another 1,000 salaried positions in software and services, according to reports.

GM aims to trim $2 billion in costs as it adjusts its EV strategy and manages slowing sales in the US and China.

Ford to cut 4,000 jobs in Europe amid EV slowdown

Ford said in November that it plans to slash 4,000 positions from its European workforce by the end of 2027. Ford said the Germany and UK divisions are likely to be the hardest hit, as these regions suffer "significant losses."

In addition to these job cuts, Ford also announced curtailed production at a factory in Cologne in the first quarter of 2025.

The cuts to Ford's European business come as companies in the region grapple with intense competition from Chinese EV maker BYD.

In the US, Ford also recently announced an extended pause in F-150 Lightning production, which will affect the roughly 730 hourly workers at that Metro Detroit plant until 2025.

Volkswagen plans historic job cuts in Germany

German automotive giant Volkswagen announced big restructuring actions in October, which could include closing factories and cutting tens of thousands of jobs.

The planned cuts, which still face the scrutiny of German unions, were announced after VW issued its second profit warning in three months. Volkswagen faces similar issues to its rivals, with slowing EV sales in China and stiffer competition from BYD in Europe.

VW's planned restructuring would include closing three German factories for the first time in the company's history, as well as cutting salaries by 10% and freezing wages for two years.

Jeep-maker Stellantis slashes jobs amid tough year

Stellantis, the company that owns brands like Chrysler and Jeep, has had a particularly tough year.

As it struggles with oversupply, it has initiated plans to cut nearly 4,000 factory jobs in the US. Meanwhile, the company laid off 400 white-collar workers in the spring and has offered broad buyouts to salaried workers.

The factory cuts have become a lightning rod for the UAW, accusing Stellantis of violating its contract by removing product commitments from an Illinois factory that built the discontinued Jeep Cherokee.

The UAW has threatened to strike over the alleged violation. Stellantis maintains that its actions fall within its contractual right to change plans based on market conditions. The car company has filed a lawsuit against the UAW in reaction to strike authorization votes.

Tesla reduces global workforce by more than 10%

In an April memo obtained by Business Insider, Tesla CEO Elon Musk told his employees that the company would eliminate "more than 10%" of its staff.

The cuts came after Tesla reported declining sales in the first quarter of the year. After initially weathering a slowdown in EV demand, Tesla is finally feeling the pinch of a more competitive EV market in the US.

Nissan plans to cut 9,000 jobs

Japanese car company Nissan announced in November that it would cut 9,000 jobs and reduce manufacturing output amid poor performance in the critical Chinese and US car markets.

The move came as Nissan reduced its operating profit forecast for the year by 70%.

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California proposes its own EV buyer credit — which could cut out Elon Musk's Tesla

Close-up photos of Gavin Newsom and Elon Musk
Gov. Gavin Newsom's proposal for an EV buyer credit would exclude Elon Musk's Tesla models.

Mario Tama/Getty Images; Allison Robbert-Pool/Getty Images

  • Gov. Gavin Newsom plans to revive California's EV rebate if Trump ends the federal tax credit.
  • But Tesla, the largest maker of EVs, would be excluded under the proposal.
  • Elon Musk criticized Tesla's potential exclusion from the rebate.

California Gov. Gavin Newsom is preparing to step in if President-elect Donald Trump fulfills his promise to axe the federal electric-vehicle tax credit β€” but one notable EV maker could be left out.

Newsom said Monday if the $7,500 federal tax credit is eliminated he would restart the state's zero-emission vehicle rebate program, which was phased out in 2023.

"We will intervene if the Trump Administration eliminates the federal tax credit, doubling down on our commitment to clean air and green jobs in California," Newsom said in a statement. "We're not turning back on a clean transportation future β€” we're going to make it more affordable for people to drive vehicles that don't pollute."

The rebates for EV buyers would come from the state's Greenhouse Gas Reduction Fund, which is funded by polluters of greenhouse gases under a cap-and-trade program, according to the governor's office.

But Tesla's vehicles could be excluded under the proposal's market-share limitations, Bloomberg News first reported.

The governor's office confirmed to Business Insider that the rebate program could include a market-share cap which could in turn exclude Tesla or other EV makers. The office did not share details about what market-share limit could be proposed and also noted the proposal would be subject to negotiations in the state legislature.

A market-share cap would exclude companies whose sales account for a certain amount of total electric vehicle sales. For instance, Tesla accounted for nearly 55% off all new electric vehicles registered in California in the first three quarters of 2024, according to a report from the California New Car Dealers Association. By comparison, the companies with the next highest EV market share in California were Hyundai and BMW with 5.6% and 5% respectively.

Tesla sales in California, the US's largest EV market, have recently declined even as overall EV sales in the state have grown. Though the company still accounted for a majority of EV sales in California this year as of September, its market share fell year-over-year from 64% to 55%.

The governor's office said the market-share cap would be aimed at promoting competition and innovation in the industry.

Elon Musk, who has expressed support for ending the federal tax credit, said in an X post it was "insane" for the California proposal exclude Tesla.

The federal electric vehicle tax credit, which was passed as part of the Biden administration's Inflation Reduction Act in 2022, provides a $7,500 tax credit to some EV buyers.

Musk, who is working closely with the incoming Trump administration, has expressed support for ending the tax credit. He's set to co-lead an advisory commission, the Department of Government Efficiency, which is aimed at slashing federal spending.

The Tesla CEO said on an earnings call in July that ending the federal tax credit might actually benefit the company.

"I think it would be devastating for our competitors and for Tesla slightly," Musk said. "But long-term probably actually helps Tesla, would be my guess."

BI's Graham Rapier previously reported that ending the tax credit could help Tesla maintain its strong standing in the EV market by slowing its competitors growth.

Prior to the EV rebate proposal, Newsom has already positioned himself as a foil to the incoming Trump administration. Following Trump's election win the governor called on California lawmakers to convene for a special session to discuss protecting the state from Trump's second term.

"The freedoms we hold dear in California are under attack β€” and we won't sit idle," Newsom said in a statement at the time.

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A hybrid-car comeback is in the making — and it could be great news for your wallet

Electric Vehicle
Automakers are turning toward hybrid-model production in the coming years as car buyers seek more affordable and efficient EVs.

Cavan Images/Getty Images

  • EV customer bases are changing, so auto executives are investing in more hybrid-focused models.
  • Hybrid EVs can be more practical and affordable than charge-only EVs.
  • This article is part of "Getting Ready for Electric," a series of guides and practical advice for buying your next EV.

Though the electric-vehicle market is having its toughest year yet, battery-powered cars are here to stay.

As EV sales slowed this year, major automakers had to reconsider their lofty goalsΒ and adjust to shifting customer bases.

Automotive executives moved forward with several EV launches this year, with some companies adding more hybrid models β€” cars that industry experts say could become a bridge for future EV owners.

Companies are turning to hybrid models to appeal to a more practical and frugal shopper, as wealthy early EV adopters who fueled years of growth have recently fled the market.

It's clear that the expansion the EV segment enjoyed over the past few years is no longer a guarantee of future growth. But executives insist they're committed to an all-electric future, even at a slower clip and with an updated strategy.

In the coming years, you can expect a greater menu of green vehicles on dealer lots β€” at various price points and with more seamless charging options.

Why more consumers are considering hybrid EVs

Hybrids β€” once thought to be a relic of the pre-Tesla EV market β€” are quickly gaining in popularity as EV demand slows.

Green-car shoppers are increasingly drawn to hybrid cars, which come in plug-in and non-plug-in varieties. These cars offer a stepping stone to full EV adoption, with the safety net of a gas-powered engine to ease range anxiety.

While these vehicles solve a pervasive concern among new EV shoppers, a lack of supply has also driven up the price of these cars, creating an affordability barrier for some shoppers.

Still, companies that stayed in the hybrid market over the past several years are now reaping the benefits of a renewed interest in these cars.

Toyota, which was once criticized for its slow adoption of EV technology, is now enjoying big increases in hybrid sales. That's elevating the brand's cache among green-car shoppers in general, with Toyota often at the top of brand considerations for EV shoppers now.

Ford is also taking this approach. The company has said that Ford's hybrid cars are converting more car buyers than any other segment. More than half of all Ford Maverick pickup truck hybrid buyers are new to the brand.

A strategic shift after EV growing pains

The nascent EV market experienced a demand shift this year: The new generation of shoppers are more frugal and practical than their early-adopter counterparts.

But the market is still growing. J.D. Power said that battery-powered cars accounted for 10.2% of retail sales in the US in September, up by 0.8 percentage points from the same month a year ago.

This growth rate isΒ much slowerΒ than the rates of the past four years.Β EV market share soared from about 2% of retail sales in the 2010s to nearly 8% by the end of 2023, Kelley Blue Book said.

The important distinction here is that demand hasn't dried up β€” it's just changing.

Companies are scrambling to adjust, pulling back production on big, expensive EVs and prioritizing more affordable models. Ford, for example, recently said it would pause production of its F-150 Lightning pickup truck for the rest of the year.

Ford also announced plans in August to replace two electric three-row SUVs with hybrid models. GM promised this year to bring hybrids to the North American market, reversing its full-EV strategy in the region, though the company provided few details about its Stateside hybrid plan.

As companies shuffle the deck, EV launches are expected to slow. S&P Global Mobility expects that about half of the 143 EV launches it's tracking between 2024 and 2026 could be delayed or canceled.

This upheaval is likely to continue after President-elect Donald Trump takes office in January. Trump has been tough on EVs, promising to gut Biden-era legislation designed to support the EV transition.

But it's unclear how much a new administration could undo the Inflation Reduction Act, which includes electric-vehicle tax credits, without Congress's help.

These EV tax credits, which can effectively lower the purchase price of a new car by up to $7,500, have been a specific target of Trump's. As affordability becomes a top barrier to EV adoption, the dissolution of these incentives could lower demand even further.

Tesla CEO Elon Musk has become a close ally of Trump's, which initially gave industry executives and experts hope that the president-elect could soften his EV approach.

However, Musk's stances have largely aligned with Trump's so far, including opposing government subsidies for electric vehicles.

Read the original article on Business Insider

What the Trump-Musk bromance means for the global EV chessboard

Elon Musk greets Donald Trump
President-elect Donald Trump greets Elon Musk before the launch of the sixth test flight of the SpaceX Starship rocket Tuesday, Nov. 19, 2024 in Brownsville, Texas.

Brandon Bell/Pool via AP

  • Trump has been hard on EVs, but a new friendship with Elon Musk could change things.
  • So far, Musk supports Trump's plans to dismantle EV tax credits.
  • Chinese EVs will likely be the biggest threat to the EV market during Trump's second term.

President-elect Donald Trump took a hard stance against electric vehicles on the campaign trail, but his recent friendship with Tesla CEO Elon Musk has called into question his position on EVs when he takes office in January.

Among Trump's campaign promises is a plan to dismantle the Biden Administration's EV tax credits, which have helped drive down the cost of EVs this year as the vehicles remain frustratingly expensive.

Trump has also promised to pull back on EV sales requirements β€” which he's falsely referred to as "EV mandates" β€” implemented with Biden's Inflation Reduction Act.

Musk, now a close ally of President Trump's and nominee for head of a newly formed Department of Government Efficiency, has amassed more influence in Trump's decision-making after the election, calling into question whether he will advocate for or against anti-EV proposals.

Since the election, Musk has been a frequent guest at Trump's Mar-A-Lago estate, and the two have shown public support for each other frequently on social media.

Tesla has long benefited from EV tax credits and fuel economy requirements

The Model 3, one of the most popular EVs in the US, is one of the few EVs that still qualifies for a $7,500 tax credit. Meanwhile, stringent fuel economy requirements have been good for Tesla's credit-sales business, a steady stream of revenue based on Tesla selling its excess fuel economy credits to companies that are not complying with the rules.

Automakers had hoped that Musk would support EV regulations and tax credits, but it appears the CEO is siding with Trump for now. In a post on his social media platform X, formerly Twitter, Musk called to "end all government subsidies, including those for EVs, oil, and gas."

An industry group representing many automakers (but not Tesla) pleaded with Trump to preserve EV tax credits but reconsider some of the more stringent emissions regulations.

Trump wants to keep Chinese cars out of the US

The Alliance for Automotive Innovation also wrote to warn of competition from "heavily subsidized electric vehicles and technologies exported from China."

This existential threat is playing out in Europe, where car companies are hit hard by BYD's entrance. Strict trade policies in the US have so far held at bay this threat.

Trump has said he wants to increase tariffs to keep foreign goods, particularly Chinese cars, out of the US. But it's unclear how this plan can keep the cost of EVs down in the near future β€” especially with EVs costing some $10,000 more than their gas-powered counterparts.

With no government subsidies to help win over new buyers, car companies will have to discount and lower prices on these already unprofitable cars.

Musk said in May that he is "in favor of no tariffs."

This was an about-face from Musk's stance a few months earlier when he advocated for trade barriers and warned that Chinese EV companies would "demolish" competition without guardrails.

That makes it hard to pin down Musk's exact stance on EV regulations, or how that could ultimately influence Trump. So far, tax credits have helped to boost domestic EV adoption. At the same time, Biden Administration bans on Chinese goods and connected cars have shielded American factories from cheaper overseas competition like BYD or Xioami.

Some experts have seen BYD's entrance into Europe as a canary in the coal mine for US automakers. They say: Don't let them in.

Expanded tariffs on parts or cars from China or any other region are likely to inflate EV prices, and Trump's stated plans to dismantle EV tax credits that ease affordability would erode the segment's progress in reaching more budget-minded shoppers.

This affordability crisis has even dinged Tesla, which has reported rocky sales reports this year as wealthy early adopters drop out of the market.

Read the original article on Business Insider

Jaguar boss speaks out after backlash to the car brand's latest ad campaign — which didn't include any cars

jaguar PR photo showing models walking in pink desert
Jaguar's new video ad features models in colorful, modern clothing, and doesn't show any cars.

Jaguar

  • Jaguar defended its rebranding campaign after online critics roasted a promotional video.
  • Jaguar's boss said the rebranding message was lost "in a blaze of intolerance."
  • The campaign, featuring models and no cars, was criticized as "woke."

Jaguar's managing director is defending the British luxury-car maker's rebranding campaign β€” calling out some of its online critics and characterizing their reaction as "vile hatred" and "intolerance."

In an interview with the Financial Times, Rawdon Glover said the campaign's intended message was lost "in a blaze of intolerance" and that the controversial promotional video was not meant to be a "woke" statement, as some critics have argued.

The video, which features models in brightly colored clothes, didn't feature any cars β€” notable, the critics said, for a car brand.

Copy nothing. #Jaguar pic.twitter.com/BfVhc3l09B

β€” Jaguar (@Jaguar) November 19, 2024

The backlash began earlier this week after Jaguar unveiled a brand strategy ahead of its all-electric launch, which is expected sometime in 2026.

As part of the rebrand, the iconic 90-year-old company β€” a favorite of British royalty and prime ministers β€” debuted a modernized typeface for its logo, a new leaping-jaguar mark, and a video ad that showed models doing things like painting a wall, holding a sledgehammer, and gathering in a pink desert without any cars in sight.

The video generated a rash of criticism on social media, with some right-leaning personalities accusing the company of abandoning its history and pushing into "woke" politics.

Glover told the FT he was disappointed by "the level of vile hatred and intolerance" that the video garnered online, particularly against the models it featured, adding that the campaign had received overall "positive" buzz.

He said Jag's intent was to be different from other automakers.

"If we play in the same way that everybody else does, we'll just get drowned out. So we shouldn't turn up like an auto brand," Glover said in the interview.

"We need to reestablish our brand and at a completely different price point, so we need to act differently," he said. "We wanted to move away from traditional automotive stereotypes."

image of Jaguar logo
Jaguar released a redesigned logo this week.

Jaguar

As part of the brand's positioning, the newly announced Jags are expected to be significantly more upmarket than the ones that are being phased out, Car and Driver previously reported, citing a Range Rover from the brand's corporate cousin that costs about $400,000 as where the brand wants to be. (Most 2024 Jaguar models have list prices of about $50,000 to $80,000.)

Jaguar, which is part of the Jaguar Land Rover group and owned by India's Tata Motors, announced earlier this fall that it would end production of all its current models this year before debuting its new all-electric lineup.

Meanwhile, high-profile critics of this week's rebranding video β€” which has been viewed nearly 160 million times on X β€” included Tesla CEO Elon Musk, the influencer brothers Andrew and Tristan Tate, and the conservative personality Ian Miles Cheong.

In response to the video posted on X by Jaguar, Musk wrote: "Do you sell cars?" And Nick Freitas, a Republican member of the Virginia House of Delegates, replied to Jaguar on X: "Well … we know where the advertising team for Bud Light went," referring to the backlash to a Bud Light ad in 2023 that featured a transgender influencer.

image of new leaping jaguar logo
Jaguar's revamped maker's mark, the leaping jaguar.

Jaguar

Some critics said they would boycott the brand based on their assumption that it had gone "woke," while others, including some marketing professionals, mocked the video as confusing and stylistically outdated.

Jaguar said it would announce more details about its new branding strategy in December, though it's not clear whether that will include specifics about any of its forthcoming electric vehicles.

Without commenting specifically on the backlash, Jaguar said in a statement to Business Insider: "The brand reveal is only the first step in this exciting new era, and we look forward to sharing more on Jaguar's transformation in the coming days and weeks."

Read the original article on Business Insider

Jaguar debuts its new branding in a video — and it's missing one thing: cars. It's getting roasted by some online.

side-by-side images of Jaguar logos
Jaguar is phasing out its old logo (left) in favor of a new logo (right).

Jeremy Moeller/Getty Images, Jaguar

  • Jaguar unveiled its new branding, and people are mocking it online β€” including Tesla's Elon Musk.
  • And some conservative personalities are calling out the company's new video ad for being too "woke."
  • Jaguar is preparing for the launch of its all-electric fleet expected sometime in 2026.

British luxury carmaker Jaguar unveiled new branding this week ahead of its all-electric vehicle launch β€”Β and some people on social media, including Tesla's Elon Musk, were quick to pounce.

The revamp of the iconic brand β€” and chosen vehicle of Britain's royal family and prime ministers β€” includes an updated typeface for its "Jaguar" logo, a redesign of the leaping jaguar mark, and a colorful new video advertisement.

The company also debuted an all-new creative philosophy focused on "exuberant modernism," which it defined as "imaginative, bold, and artistic at every touchpoint."

image of new leaping jaguar logo
Jaguar's revamped leaping jaguar.

Jaguar

Jaguar Chief Creative Officer Gerry McGovern said in a statement that the company's new vision was inspired by its founder's belief that "a Jaguar should be a copy of nothing."

But that "exuberant modernism," particularly in the company's video ad, is being mocked by some people online.

The video that Jag released shows models clad in colorful, ultra-modern haute couture doing things like exiting an elevator, painting a wall, and swinging a sledgehammer before they all sit down on a rock in a pink desert landscape. Phrases like "create exuberant," "live vivid," and "delete ordinary," flash across the screen.

Notably for a car company, there are no cars in the ad.

In response to the video posted on X by Jaguar, Elon Musk wrote: "Do you sell cars?"

jaguar PR photo showing models walking in pink desert
Jaguar's new video ad features models in colorful, modern clothing, and doesn't show any cars.

Jaguar

The company replied to Musk on X, writing, "Yes. We'd love to show you. Join us for a cuppa in Miami on 2nd December? Warmest regards, Jaguar."

Musk replied: "I look forward to seeing your new vehicle lineup."

Jaguar said it planned to reveal more details of its relaunch in December, but its new all-electric vehicle models aren't coming until sometime in 2026.

In the meantime, the company is transitioning its Halewood, UK factory away from combustion-engine production, and has stopped selling new cars in the UK for the first time since WWII. (Current Jaguar models left in their inventories will be sold as pre-owned, a company spokesperson previously told Business Insider.)

Jaguar, which along with the UK's Land Rover brand is now owned by India's Tata Motors, first announced it was going all-in on EVs in 2021 and has been phasing out production of its gas-powered vehicles.

Copy nothing. #Jaguar pic.twitter.com/BfVhc3l09B

β€” Jaguar (@Jaguar) November 19, 2024

Its new brand strategy ahead of the relaunch of its all-electric line perhaps hasn't gone as smoothly as it might have hoped β€” though it did get people talking on social media, which some people said might have been the point.

Conservative personality Ian Miles Cheong ripped into Jaguar's new brand strategy on X, criticizing what he said was the company's "woke ideology" and promotion of DEI initiatives.

And Nick Freitas, a Republican member of the Virginia House of Delegates, replied to Jaguar on X: "Well … we know where the advertising team for Bud Light went," referring to the backlash to a Bud Light ad in 2023 that featured a transgender influencer.

Jaguar's new brand strategy was created by its own in-house design team, not an external agency, according to the UK's Creative Review.

image of monogram logo
The company's rebrand includes this artist's mark monogram.

Jaguar

But it wasn't just widely known right-wing personalities attacking Jaguar over their perception of the politics behind its rebrand. Others were simply calling out the ad for being odd and confusing.

One marketing professional, Kevin Dahlstrom, called out the brand's strategy from a different perspective, writing on X, "This is the Zoolander of rebrands β€” it reads like a parody," adding, "The tagline is 'copy nothing' but somehow it already feels tired and outdated ... based on a cultural point-in-time that has passed."

The reactions weren't all bad β€” some social media users pointed out how, no matter what you think of the company's new ad, it's gotten everyone talking.

Sports broadcaster and former Formula 1 racing driver Martin Brundle, who's raced in Jaguar cars, wrote on X: "I have no idea what this is all about, but it's genius. Everyone is talking about Jaguar in a moment of time when they're not actually making cars."

Jaguar didn't respond specifically to the online criticism but said in a statement to Business Insider: "The brand reveal is only the first step in this exciting new era, and we look forward to sharing more on Jaguar's transformation in the coming days and weeks."

Read the original article on Business Insider

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