All the car options on the 'electrified' market

DETROIT — Buying a vehicle has never been easier. But buyers entering traditional dealer showrooms for the foreseeable future may face a new challenge: an alphabet soup of “electrified” vehicle offerings.

As adoption of all-electric vehicles continues to advance in the United States, automakers are increasingly introducing hybrid vehicles as alternative options to traditional electric vehicles and gasoline engines. A variety of models means more customer choice, but also more complexity for automakers and consumers, many of whom are returning to the new-vehicle market for the first time in years following unprecedented supply chain shortages and record-low used-vehicle prices.

“More choice in the marketplace is good for consumers, but only if they understand the differences,” said Paul Waatti, director of industry analysis for AutoPacific. “There needs to be more clarity about what the terms and acronyms actually mean, and what the potential benefits and drawbacks are.”

Today, a car buyer can choose from traditional internal combustion engine (ICE) vehicles, mild hybrid electric vehicles (MHEV), hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV), fuel cell electric vehicles (FCEV), and battery electric vehicles (BEV), also commonly known as EV. Stellantis: Extended-range electric vehicles (REEVs) that are similar to plug-in hybrid vehicles but can operate exclusively as electric vehicles, with their electric motors powered by a gasoline engine.

Each type of vehicle may be better for a different type of customer. All but electric and fuel cell vehicles continue to offer a traditional internal combustion engine combined with “electrified” technologies, such as a battery or motor, to improve performance or fuel economy.

Heather Seymour of St. Johns, Florida, said she did a lot of research before purchasing a 2022 Jeep Wrangler Rubicon plug-in hybrid electric vehicle, known as the 4xe model.

“I knew I wanted to try my hand at hybrids. I wasn't ready to go all-electric, so the plug-in was definitely interesting to me,” said Seymour, who says he normally uses the SUV's all-electric range, except on longer trips. “The more we learned about him, the more we realized what we wanted.”

While consumers may not need to know every acronym or technology to find the right model, automakers aren't exactly helping the situation with their consumer-facing names.

For example, Hyundai’s Genesis brand calls its all-electric vehicles “electrified,” while many others reserve that term for hybrids. Chrysler’s Pacifica minivan is a plug-in hybrid labeled as a regular “hybrid,” and Toyota markets some of its traditional hybrids as “hybrid EVs.” Stellantis says its REEV vehicles are not PHEVs, despite functioning similarly.

“Each automaker uses different terms. There is no standardization and that causes some consumer confusion,” Waatti said.

Some car manufacturers such as General Motors It also uses traditional nameplates like the Chevrolet Blazer and Equinox for new electric vehicles that share little or nothing with their gasoline-powered counterparts other than the name.

Stellantis' Jeep also uses the “Wagoneer” name for two large gas-powered SUVs, as well as a smaller all-electric Wagoneer “S” SUV.

Jeep CEO Antonio Filosa said he's not worried about any confusion, as the brand has a strong naming heritage and customers can decide which vehicle is best for their needs.

“I think we need education, but after education we have a lot of options for the consumer,” he said during a recent interview. “It's all for the benefit of the consumer. They will have a lot of flexibility.”

One thing auto executives from Japan and South Korea to Detroit and Germany can agree on is the need to educate the consumer.

Whether electrified or fully electric, vehicles are critical for automakers to meet strict emissions and fuel economy targets, as well as to increase production scale, lower prices and boost profits.

“We don't want to force a customer to do something they're not ready for,” Kia America's vice president of marketing Russell Wager told CNBC earlier this year. “We're doing everything we can to educate them.”

Kia and its dealers have created online pages that demystify electric and hybrid vehicles to answer frequently asked questions or concerns about electric and hybrid vehicles. Questions range from technical questions about batteries to practical questions such as whether you can wash an electric vehicle (you can).

GM has gone a step further. The Detroit automaker launched “EV Live” in 2022. This is an online video platform, now known as “GM Energy Live,” that allows participants to interact personally with EV specialists and learn about EVs and charging.

Ford engine recently launched its own video-based training program targeting its more than 3,000 U.S. franchised dealers to improve customer service, better engage employees, and provide dealers and the company with more data to assist in sale of vehicles.

Auto industry executives say it is the responsibility of companies, as well as their dealers, to educate themselves about the benefits of vehicles, whatever they may be.

“Each client, in the end, is very different,” says Jérémie Papin, president of nissan In America earlier this year, he said: “I think what's important is what the vehicle can do for them,” not necessarily how the technology works.

According to Cox Automotive, 96% of those who intend to purchase a vehicle in the next 24 months could be tempted to consider an electric vehicle sooner than three to five years if they had a better understanding of how car ownership works. electric vehicle.

This was true for Seymour, a Florida resident, as well as Kevin Storimans of Winnipeg, Canada, who leased a plug-in Jeep Wrangler 4xe. He said he wasn't ready for an all-electric vehicle, so he decided to rent the add-on as a way to save money on fuel and as a possible stepping stone to an electric vehicle.

“It's the best of both worlds. You have a gasoline engine. You have some electric range,” said Storimans, who previously drove a V-8-powered Jeep. “Do your research. There is a lot of information and misinformation about PHEVs and electric vehicles.”

According to Cox Automotive, consumers spend more time researching electric vehicles than traditional gasoline-powered vehicles. The company found that about 9 in 10 EV buyers already have a vehicle in mind for purchase before visiting a dealership or placing an order online.

“There's a lot of information out there. It's hard to explain,” said Stephanie Valdez Streaty, director of industry insights for Cox Automotive. “Education is key. It's about consumer awareness, education and engagement.”