During an appearance at the Bernstein Annual Strategic Decisions Conference in May, Ford CEO Jim Farley eagerly shared a mobility solution he envisioned as appropriate for the American auto market. Fresh off a 10-day trip to China, Farley preached about EREVs, or Extended-Range Electric Vehicles. These are fully electric vehicles with an onboard generator (usually a gas engine) that charges the battery whenever needed, extending its range.Unlike plug-in hybrids, EREVs virtually eliminate the need for owners to deal with America's under-developed EV charging infrastructure or wait on "charger hogs" that make EV charging difficult; the only "refueling" that can occur would be at a gas pump.Related: Ford's aggressive EV plan aims to be Toyota's worst nightmareThe Ford CEO argued that these "in-between" vehicles could convert American EV skeptics into EV believers and prove very profitable for automakers."They don't drive like combustion engine vehicles, so you get an EV, and you have 700 miles of range. You don't have range anxiety for a long trip. You don't have to rely on any charges," Farley said. "And those vehicles have half the batteries, so they're very profitable.""It's a good solution; that's why it's popular in China, that's why it's doubled its sales in China, and we really like that solution."Although EREVs are not mentioned in Ford's radically revised EV plans, one of Ford's competitors may be getting a head start on the technology its CEO is fascinated by.
The 2024 Hyundai Santa Fe hybrid sports utility vehicle (SUV) at AutoMobility LA ahead of the Los Angeles Auto Show Bloomberg/Getty Images
Meet the "xEV"According to a report from Korea Economic Daily, Hyundai Motor Group, the parent company of Hyundai and Kia, is developing its own next-generation powertrains with extended-range electric vehicle technology.Hyundai company officials who spoke to KED noted that the exploration into EREV tech, called "xEV" by Hyundai, is a result of examining the realities of traditional battery-powered EV ownership. They find that battery-powered EVs like their Ioniq series have limited range and suffer from a lack of EV infrastructure, which can be huge barriers to EV adoption.Korea's EV fire ParanoiaAdditionally, increasing skepticism of EVs in Hyundai's native country, South Korea, is motivating the automaker to pursue EREVs before fully committing to traditional battery-electric vehicles. According to Korea JoongAng Daily, authorities in the country's capital and largest city, Seoul, have been rocked by a horrific EV fire in an underground parking garage. The fire damaged 880 nearby vehicles and left 1,600 households without electricity and water for a week.As a result, the Seoul Metropolitan Government is proposing new rules that would restrict EVs charged over 90% from accessing underground parking garages and enforce a charging limit of 80% on rapid charges within the Seoul metro area. More Business of EVs:Waymo finds new way to bring chaos to quiet city streetsGavin Newsom's 'EV mandate' is under U.S. Supreme Court threatBMW's clever, new EV app is a privacy nightmareNonetheless, a Hyundai official who spoke with KED noted that the new tech will help transition car owners into fully electric vehicles. They noted that amidst the EV transition's ups and downs, automakers are currently in a period of "suffering" that can be solved by providing a diverse range of electrified vehicles. Hyundai is not exempt from the "suffering;" as of July 13, global EV wholesale sales within Hyundai Motor Group decreased by 34%.Related: Lucid exec lays out the game plan to destroy Tesla“Global automakers will enter a period of suffering for at least two to three years starting in the second half of this year,” a senior Hyundai Motor official told KED. “Hybrids and EREVs are our weapons to fight this battle.”Range extenders have been used in vehicles like the compact BMW i3 and the upcoming Ram 1500 Ramcharger, but they have not been released on a large scale like what Hyundai is planning. KED reports that Hyundai plans to add EREV powertrains to the popular Santa Fe SUV and the luxury Genesis GV70 within two to three years. According to results published on July 2, Hyundai has sold 56,622 Santa Fes year-to-date.Related: Veteran fund manager picks favorite stocks for 2024
