Scott Wood of the Wood Family Dealerships in Southside gave the Batesville Rotary Club an electric vehicle (EV) primer at its meeting this week as well as an update on the microchip shortage affecting car dealerships and consumers.
Wood said the automobile business was turned on its head when the pandemic hit in 2020. Semiconductor chips and micro-processing is an integral part of every phase of vehicle functionality. Only about 10% of the chips are produced in the U.S. while 56% come from Taiwan. The rest come from various parts of China and Asia. With COVID and other extenuating circumstances, the world has since experienced a severe shortage of microchips.
Before the pandemic, Wood said his dealership had about 300 new vehicles on the ground. Since the pandemic and the resulting shortage of chips, there are now only 40 or 50.
In 2021, Wood said 11.3 million units of production were lost worldwide. This year, the projected figure of lost production is down to 4.2 million units with 1.5 million in the U.S. and 1.4 million in Europe.
The lost production will never be made up, Wood said.
Things are getting better, but he noted the shortage is expected to last through 2023. Because of the shortage of new vehicles, used vehicle prices soared, but Wood said used pricing has started to decline.
As EVs start to filter into the auto world, Wood highlighted the three types of vehicles that either use electricity as a boost or for all propulsion:
Fully Electric — Elon Musk’s Tesla line of vehicles helped put full EVs on the map. EVs usually have a driving range of 235 to 400 miles before needing a charge. Oil changes and regular maintenance are also things of the past with fully electric vehicles. Wood says the GMC Hummer EV pickup truck is in the highest range for EVs — pushing close to 400 miles.
Plug-in Hybrid — The plug-in hybrid, such as the Jeep 4xe models, are electric but also gas-powered with onboard motor/generators and a gas engine to travel long distances. The electric range is usually 25 to 40 miles, but then the gas engine takes over for long-distance driving. The fully electric range works well for daily town driving and commuting while the gasoline backup allows long-range driving for trips. Plug-in hybrids are a good compromise vehicle for many people, Wood said.
Hybrid — The best-known hybrid is the Toyota Prius which has been around since October 1997. It has a battery that self-charges as it is driven. The battery system assists the gasoline engine when the vehicle starts from a standstill position and assists in other ways to maximize gasoline consumption.
Wood said General Motors has embraced producing fully electric models while Stellantis (formerly Chrysler) is producing plug-in hybrids.
There are three ways to charge a plug-in hybrid or EV:
Both Level 1 and Level 2 use AC current to charge through an onboard charger built in the vehicle. Wood says regular consumers will likely go with Level 2.
Prices are all over the map. The Chevy Bolt starts at $26,595. A Silverado goes for about $39,900, and a Hummer will go for around $110,000. Battery life for the Hummer is warranted at 10 years or 150,000 miles. Other EVs may be at eight years or 100,000 miles.
Tax credits are coming for new U.S.-made electric vehicles and plug-in hybrids, with some provisions coming into effect on Jan. 1. Wood said anyone interested should check with their accountant.
Wood said there is a public EV charger at the Wood Family Dealerships. Level 2 charging (at about $6 per hour) is available with a credit card. There is also a public EV charging station at the Mark Martin Kia dealership at 1601 Batesville Blvd. (An earlier version of this story noted there was only one public EV charger in Independence County.)
Wood said EVs make up about 4% of current U.S. production. For now, the larger markets for EVs will be on the coasts with things in Arkansas moving slower, especially until more charging stations are installed, Wood told the club. However, as the public learns more and improvements are made over time, he said EVs will be everywhere.
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