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Kia to offer 11 EVs by 2025 as part of 'Plan S' strategy, launch first dedicated EV in 2021

Kia Motors has given insight into the company's future product plans.

Photo courtesy of Kia Motors

Kia is charging ahead with an aggressive electric vehicle (EV) implementation plan that includes 11 new vehicles in the next five years. The strategy, called "Plan S" starts with the company's first dedicated EV in 2021.

Plan S is a dual-focus shift for the company. On one side they will be progressing toward an EV-centric product strategy while in the other hand Kia will be focusing on customized mobility solutions. They will also be focusing on autonomous vehicle development.

By the end of 2025, Kia plans to offer a full line-up of 11 battery electric vehicles. The company is aiming to have 25 percent of its vehicle sales outside of China come from what they call "eco-friendly cars" by 2025 on their way to achieving a 6.6 percent market share in the global EV market (500,000 annual EV sales excluding China). According to a McKinsey & Co. analysis published April, the U.S. EV market almost doubled to 360,000 EV units in 2018, mainly because of the strong sales performance of Tesla's Model 3.

From 2022, Kia plans to add EVs in the passenger vehicles, SUVs, and MPVs categories. They further outlined their electric vehicle development:

The dedicated EV model to be launched 2021 will be built on a unique platform specifically engineered to accommodate the car's world-leading EV powertrain and technologies. It will offer a crossover design which blurs the boundaries between passenger and sport utility vehicles, a future-oriented user experience, a single-charge driving range of over 500 kilometers, and sub-20-minute high-speed charging time.

Across its EV line-up, Kia plans to operate two different types of EVs with different charging capabilities (400V/800V) -- high-performance dedicated models and derivative models with reasonable pricing -- to meet the diverse needs of customers.

Growth in global EV sales will be pursued in accordance with a customized, market-oriented strategy, which considers regional differences in environmental regulation, subsidies, infrastructure and more.

These EVs are expected to first be sold as a trim level option in Kia vehicles in the same vein as the Niro EV and Soul EV.

Additional Kia expansion is planned to come from car-sharing and e-commerce businesses.

"Plan S is a bold and enterprising roadmap for Kia's future business transition, buttressed by the two pillars of electric vehicles and mobility solutions," said Han-woo Park, president and CEO, Kia Motors. "Our approach is to put customers first, and Kia will reinvigorate its brand innovation by developing products and services that offer new experiences for customers."

Easily missed in this plan is Kia's proposition to raise the sales of internal combustion engined vehicles while at the same time establish the development system for EV architecture. Though they say that they'll focus those efforts on emerging markets, it's relatively safe to say that the Soul, Forte, and Telluride aren't going away any time soon.

Kia is activating recent partnerships and company share acquitions to get to this goal. Last year, the Korean automaker invested in Croatian performance EV manufacturer Rimac Automobili and IONITY, which specializes in building high-speed charging infrastructures.

They're also planning on building "Mobility Hubs", transfer stations between electric vehicles and internal combustion engine vehicles. Long term plans call for self-driving robotaxis and on-demand roboshuttles to also populate these Mobility Hubs.

Kia is part of a car-sharing services joint venture with Repsol, Spain's major energy corporation, in Madrid via its WiBLE brand.

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Biden will target 50 percent of all vehicle sales for EVs by 2030.

Ford

In the last several months, we've seen automakers from all corners of the globe commit to some degree of electrification by the end of the decade and beyond. That includes the American Big Three: Ford Motor Company, General Motors, and Stellantis (Chrysler, Dodge, Jeep, others). Today, President Joe Biden plans to throw his weight behind these efforts by signing an executive order that sets a goal of pushing the sales of zero-emissions vehicles to half of all vehicle sales in the U.S. by 2030.

Biden's target is not legally binding, but the industry is already jumping on board. In a joint statement, Ford, General Motors, and Stellantis confirmed that they aim to hit an EV sales volume of 40-50 percent annually. It's worth noting that the President's 50 percent goal and the automakers' sales targets also include plug-in hybrid vehicles, which still use a traditional gasoline engine.


Jeep PHEV The target also includes plug-in hybrid vehicles, which still use gas engines.Jeep


Auto unions and dealers are not opposed to the ambitious roadmaps laid out by the Big Three, but both have differing views on what is essential and how things will ultimately play out. While aware of the goals, the UAW is focused on wage growth and the preservation of jobs and benefits. It feels that an increase in EV production volume must happen here in the U.S. to include good-paying American union jobs.

Dealers, to a degree, are supportive of the goals but skeptical of their ultimate success. Some feel that electric vehicles do not present the earth-shattering shift in functionality and usability that other new products, such as smartphones, did in different industries. Regardless of concerns and skepticism, it appears that automakers are going all-in on the shift to electrification, so we're bound to see a wealth of new battery-electric and plug-in hybrid vehicles in the next few years.


GM battery facility rendering Automakers are pledging billions to increase EV and PHEV production volume.GM

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Research and development

Ford names site for battery development facility

Ford's new facility will house battery research and development.

Ford

Ford is in the news again for its electrification efforts, this time with the confirmation of a Michigan location for a new battery research and development facility in Romulus, Michigan. The facility may eventually help Ford in-source much of its EV supply chain, a shift that could prevent or mitigate the challenges presented by parts and technology shortages.

As part of its electrification initiative, the automaker plans to build a new research and development facility, called Ford Ion Park. The facility will house new tech research, pilot programs for new manufacturing techniques, and will help give Ford more control over its supply chain.


Ford Ion Park Once complete, the facility will initially house 200 engineers.Ford


The price tag for the new facility and related efforts lands at $185 million, which sounds like chump change for a global automaker until we consider that Ford has committed $30 billion to electrification by 2025. The automaker says that its new facility renews its dedication to Michigan as its home base for EV development, a promise it originally made back in 2010. The company's new electric F-150 Lightning pickup truck will be built in Dearborn, which will add 500 jobs. An additional 225 jobs will be retained at Ford's Dyke Electric Powertrain Center.

As part of Phase One of the project, Ford plans to hire 200 engineers within 18 months of the 270,000-square-foot facility's opening. Ironically, the site was previously owned by A123 Systems, a battery manufacturer that closed the facility in 2017 due to low demand for batteries.


Ford Ion Park Ford has committed $185 million to the new facility and related efforts.Ford

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