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For EV drivers, realities may dampen the electric elation

The Atlantic, a decades-old monthly journal well-regarded for its intelligent essays on international news, American politics and cultural happenings, recently turned its attention to the car world. A piece that ran in The Atlantic in October examined the excesses of the GMC Hummer EV for compromising safety. And now in its latest edition, the magazine ran a compelling story about the challenges of driving an electric vehicle and how those experiences “mythologize the car as the great equalizer.” Titled “The Inconvenient Truth About Electric Vehicles,” the story addresses the economics of EVs, the stresses related to range anxiety, the social effects of owning an electric car — as in, affording one — and the overarching need for places to recharge that car. Basically, author Andrew Moseman says that EV life isn't so rosy: “On the eve of the long-promised electric-vehicle revolution, the myth is due for an update. Americans who take the plunge and buy their first EV will find a lot to love Â… they may also find that electric-vehicle ownership upends notions about driving, cost, and freedom, including how much car your money can buy. "No one spends an extra $5,000 to get a bigger gas tank in a Honda Civic, but with an EV, economic status is suddenly more connected to how much of the world you get to see — and how stressed out or annoyed youÂ’ll feel along the way.” Moseman charts how a basic Ford F-150 Lightning electric truck might start at $55,000, but an extended-range battery, which stretches the distance on a charge from 230 miles to 320, “raises the cost to at least $80,000. The trend holds true with all-electric brands such as Tesla, Rivian, and Lucid, and for many electric offerings from legacy automakers. The bigger battery option can add a four- or five-figure bump to an already accelerating sticker price.” As for the charging issue, the author details his anxiety driving a Telsa in Death Valley, with no charging stations in sight. “For those who never leave the comfort of the city, these concerns sound negligible," he says. "But so many of us want our cars to do everything, go everywhere, ferry us to the boundless life we imagine (or the one weÂ’re promised in car commercials),” he writes. His conclusions may raise some hackles among those of us who value automotive independence — not to mention fun — over practicalities.

An all-electric Hummer is reportedly under consideration at GM

GM is reportedly considering a return to the Hummer brand, but not in the traditional Hummer way. No, a report from Bloomberg says that GM is mulling over the idea of building an electric Hummer. The report cites unnamed sources within GM, as the folks prefer not to be named due to the private nature of the conversations. At this point, Bloomberg characterizes the Hummer talks as preliminary discussions. GM is figuring out how it wants to organize its future electric trucks and SUVs, and Hummer is a part of those discussions. Just as anyone would expect, Hummer could be used to profit off the current demand for rugged and tough vehicles. Mark Reuss didn't commit either way to a Hummer revival when asked by Bloomberg. "I love Hummer. I don't know. We're looking at everything," Reuss said. Other GM sources said that the company sees an opportunity to compete with Jeep for off-road vehicles that have creature comforts commanding high premiums. The report states that designers have done work with Hummer concepts, experimenting with Hummer styling to implement it on GMC-branded products, too. There's also the question of whether an electric Hummer is a smart move to begin with. Folks bought up Hummers before because they're big, brawny, good off-road, and gas was cheap. Gas is relatively cheap today, but attitudes around cars that achieve 10 mpg have changed. Rivian thinks that consumers are interested in premium electric SUVs and trucks, and the hype around that company is real right now. An electric Hummer would undoubtedly go after the same space as the Rivian R1S. The number of people willing to drop over $70,000 on an electric adventure vehicle is still untested, though. Even if GM did give an electric Hummer project the green light, we're still years away. We know GM is currently in development of an electric pickup truck platform, but that doesn't mean it's anywhere close to production. We haven't seen a new Hummer since GM halted sales of the brand in 2010. The recession and high gas prices drove sales down so low that Hummer declared bankruptcy in 2009, but GM still kept the brand in its portfolio. It's hard to think of a better time than the SUV and crossover hoopla of today to introduce something like an electric Hummer, but until we hear something more substantial from GM, the vehicle is going to remain a rumor.

Humvee maker AM General reportedly for sale, with interest from FCA, GM

WASHINGTON — AM General has put itself up for sale and has hired investment bank Macquarie Group Ltd to seek potential bidders in a deal that could value the builder of Humvee military vehicles at more than $2 billion, people familiar with the matter said this week. Potential bidders include competitors in the military ground vehicle market, such as General Dynamics, Oshkosh Corp and BAE Systems, according to two people familiar with the matter. Automakers like Fiat Chrysler and General Motors may also be potential buyers. GM licensed Hummer from AM General in 1998 to build civilian SUVs. None of the companies would comment or reply to a request for comment. The South Bend, Indiana-based AM General is currently owned by private equity firms. A possible sale of AM General follows a rash of deals over the past 18 months among defense contractors. But relatively fewer makers of defense equipment have gone on the auction block. Last year, United Technologies acquired Rockwell Collins for $30 billion, and in March, TransDigm Group continued its acquisition spree with a $525 million deal for Extant Components Group. AM General could fetch about 10 times its annual earnings of $160 million, one of the people said. The company's favorable tax treatment because of its current status as an limited liability corporation, would allow a buyer to reduce the company's taxable earnings for 15 years. That coupled with recent contract awards could push the ultimate value of the company to over $2 billion in a sale. The sale, should it happen, comes as the U.S. Army is gearing up for a broad effort to modernize its forces, including seeking prototypes of its Next-Generation Combat Vehicle in fiscal year 2022. Last month, AM General was awarded an Army contract for as many as 2,800 new M997A3 High Mobility Multipurpose Wheeled Vehicle (HMMWV) ambulances. The contract could be worth as much as $800 million if all options were exercised, AM General said at the time. Last year, the Pentagon awarded AM General a $550 million contract to deliver HMMWVs for use as protected weapons carriers, cargo transporters and ambulances to Afghanistan, Iraq, Ukraine, Jordan, Slovenia, Bahrain, Columbia, Bosnia and Kenya as a part of a larger Foreign Military Sales agreement. The sale of AM General offers an opportunity to purchase a prime contractor that delivers a finished product to the Pentagon, and not just an add-on system or service.