Motoring
BMW, Cadillac Aim to Pull Plug on Tesla With Pricey New Cars
LOS ANGELES — Tesla Motors Inc. TSLA +0.58% is about to get deep pocketed rivals in the luxury electric luxury car market after largely having the business to itself since the 2012 launch of the Model S sedan.
BMW AG BMW.XE -0.17% , General Motors Co. GM +2.04% ‘s Cadillac and Volkswagen AG VOW3.XE +0.18% ‘s Porsche and Audi brands are among the luxury brands using this week’s Los Angeles Auto Show to promote new plug-in models aimed at affluent, eco-conscious Californians who make up the heart of Tesla’s buyers.
While models such as the BMW i3 and i8, the Cadillac ELR or Porsche’s plug-in Panamera sedan offer different propulsion technology from the Tesla Model S and different body styles, they are all cars that get much of their energy from the electric grid instead of a gasoline pump.
So far, electric cars aimed at mass market consumers have sold in relatively low volumes, although the head of Nissan Motor Co. 7201.TO +0.54% ‘s U.S. sales arm said Tuesday that demand for the Nissan Leaf electric car has improved enough to justify adding production capacity. Still, electric cars have made up about 1% of U.S. light vehicle sales this year.
One reason electric cars are a tough sell to budget-conscious consumers is the high cost of lithium-ion batteries, and the limited driving range of cars like the Leaf. However, Tesla so far can’t keep up with demand for its $70,000 and up Model S with an 85 kilowatt-hour battery, which has a driving range rated at 265 miles by the federal government.
Wealthy car buyers “can afford to have another vehicle” to deal with long road trips, says Devin Lindsay, an analyst with forecasting company IHS Inc. IHS +0.07% As more auto makers follow Tesla’s move to make electric cars a luxury lifestyle accessory, “buyers are going to have a lot of choice,” Mr. Lindsay says.
Established luxury brands are muscling on to Tesla’s turf in part because government policies are forcing them to, and in part because they see Mr. Musk peeling away influential trend setters they don’t want to lose.
“If you look at Audi buyers, they are interested in high tech, they are young, progressive and affluent,” says Scott Keogh, head of Audi’s U.S. arm. That is why Audi is promoting the A3 etron plug-in hybrid model at the Los Angeles show, ahead of its early 2015 launch.
Audi eventually will have an all-electric model, Mr. Keogh says, though he won’t say when. Rudolf Krebs, the VW Group executive Vice President in charge of electric vehicle programs said Audi will get plug in hybrid versions of its A6, Q7 and A8 models next year as part of a broader VW Group strategy to roll out 40 plugin hybrid or battery electric models over the next several years.
GM’s ELR is a luxury model that borrows its basic propulsion system from the plug-in Chevrolet Volt but at about $76,000 has a starting price more than $30,000 higher. Mark Reuss, head of GM’s North American operations, says the ELR “will inevitably be compared to the Model S,” but GM will focus on its combination of a gasoline-fueled engine and battery power that gives it a longer driving range than a Tesla.
“It’s a dramatic design statement,” Mr. Reuss says. “Which Cadillac really needs right now.”
BMW is highlighting the i8 plug-in hybrid sports car at the LA show, The car, with a starting price above $135,000, has a carbon fiber body architecture and is propelled by electric motors in the front, and a three-cylinder gasoline engine in the back. BMW is also launching early next year a second electric model, the BMW i3, which is a small “city car” that will start at about $40,000 in the U.S.
“California plays a pivotal role in this technology,” says Ian Robertson, BMW’s global sales and marketing chief. The state’s mandates requiring auto makers to sell more electric or plug-in vehicles are a major factor in auto makers’ decisions to launch such vehicles. But there is also consumer demand, Mr. Robertson says.
Since BMW began offering test drives in the i3, about 100,000 people have signed up world-wide, including about 45,000 in the U.S., Mr. Robertson said. As for the i8, he said, “we are sold out for the whole of next year.”
What impact the arrival over the next year of new luxury plug-ins will have on Tesla will depend a lot on whether the new entries expand the segment, or merely cut more slices from a same-sized pie.
Tesla Chief Executive Elon Musk has assured analysts he isn’t concerned. Tesla didn’t have a display at the LA Auto Show this year, a spokeswoman said. Mr. Musk has said the company doesn’t need to try to generate more demand right now.
“I think there’s a huge amount of untapped demand in North America,” he said, regarding his company’s outlook. Mr. Musk has said he expects Tesla can eventually sell 500,000 cars a year.
“I really do encourage other manufacturers to bring electric cars to market,” Mr. Musk told analysts in a conference call earlier this year. “They need to bring it to market and then keep innovating and improving and making better and better electric cars.”
– WALL STREET JOURNAL
The Federal Capital Territory Administration (FCTA) has ended contracts with taxi rank and terminal operators due to their failure to meet engagement terms and conditions.
Mr. Ubokutom Nyah, the Mandate Secretary of the Transportation Secretariat, FCTA, made this announcement during a meeting with managers of these terminals and taxi ranks in Abuja.
Nyah clarified that due to the operators’ failure to fulfill their engagement terms, the FCTA had to terminate their contracts.
He instructed them to transfer control of the ranks to the Administration within three months, starting from Nov. 21.
He lamented the presence of unauthorized motor parks in the city and assured the readiness of the Administration to establish proper taxi ranks and terminals in the capital.
He revealed that personally visiting the city’s taxi ranks, terminals, and unauthorized motor parks gave him direct insight into the poor condition of these facilities.
He emphasized that as the federal capital city, Abuja deserves better, highlighting that the poor condition of these facilities attracts various criminal elements.
He said “We must rid Abuja of all these. I have gone round the taxi ranks, and of all the places I visited, not one is worthy to be called even a village motor park.”
The Mandate Secretary stressed that the intention wasn’t punitive; rather, it aimed to revamp the sector, introduce new engagement terms, and modernize taxi ranks and terminals in the federal capital.
He also highlighted the plan to increase the number of terminals and ranks where necessary, which would positively impact the administration’s revenue.
He emphasized that this measure was part of a broader effort to eliminate illegal motor parks in Abuja and curb the associated criminal activities.
In response, Mr. Adebisi Lawal, the Operator of Jahi Taxi Rank, praised the administration’s initiative to modernize the taxi ranks and terminals.
Lawal urged the administration to prioritize current operators’ involvement in the selection of new developers for the modernization of the taxi ranks and terminals.
It was a show of power at the Ojota area of Lagos on Monday as soldiers pummeled an officer of the Lagos State Traffic Management Authority, (LASTMA).
Eyewitness accounts claim that the ugly scene played out around 8am, and saw about eight soldiers pounce on the yet to identified LASTMA official, while his colleagues took to their heels.
The video of the melodrama has gone viral, where the LASTMA official was appealing to the soldiers, who appeared bent on ‘teaching him a lesson’.
This onslaught comes on the back of a reported assault of a soldier at the same location by LASTMA officials last week.
It would appear that what played out today was the army asserting its authority and defending their khaki as the armed soldiers carried out what looked like a revenge mission.
Eyewitnesses further averred that the victim was rushed to a nearby hospital, after the soldiers left the scene.
It was gathered that the authorities at LASTMA has reported the incident to the military authorities who are said to be looking into the matter.
Meanwhile many members of the public are rejoicing that the soldiers have taught the crude LASTMA official that power is stronger than power, for all their atrocities against motorists on Lagos roads.
The impact of the removal of subsidy on Premium Motor Spirit (PMS), otherwise known as petrol, has seen the pump prices of the product skyrocket with a corresponding increase in the cost commercial transportation in Nigeria.
According to the National Bureau of Statistics (NBS), intra-city bus transportation fares across Nigerian cities, measured between May and June 2023, increased from N649.59 to N1,285.41 in June 2023.
This translates to 98 percent growth or N635.82 within the month in view.
The NBS made the data available in its Transport Fare Watch report for June 2023.
In the report, the NBS also shared the breakdown of bus journeys within the cities per drop for constant routes; bus journey intercity (state route); charges per person, amongst others.
On a year-on-year basis, the report has it that bus fares rose by 120.63 percent from N582.61 paid by commuters in June 2022.
The average fare paid by commuters for bus journey intercity per drop rose to N5,686.49 in June 2023 compared to N4,002.16 in May 2023 indicating an increase of 42.09 percent, month-on-month.
The report read, “The average fare paid by commuters for bus journeys within the city per drop increased by 97.88 per cent from N649.59 in May 2023 to N1,285.41 in June 2023.
On a year-on-year basis, it rose by 120.63 per cent from N582.61 in June 2022.
“In another category, the average fare paid by commuters for bus journey intercity per drop rose to N5,686.49 in June 2023, indicating an increase of 42.09 on a month-on-month basis compared to N4,002.16 in May 2023.
“On a year-on-year basis, the fare rose by 55.25 per cent from N3,662.87 in June 2022.”
Biztellers reported that the twin forces of forex pressure and increasing price of Brent in the global market would likely see the pump prices of petrol, increased again in no distant time in Nigeria.
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