How much it costs automakers to transform ICE factories to EV

How much it costs automakers to transform ICE factories to EV

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[hamiltonasseiro]

Great commentary as usual. Shocking how these legacy automakers are not adapting very well to change. I fear many will declare bankruptcy.

[thomasruwart]

VW did it a while back and it was something like $1.3B to convert one plant and it took 2 years. I need to go back to the BestInTESLA video that walks thru the details. Bottom line is that it is cheaper and faster to just build a new facility.

[voluntaryist]

All of us wondering if the legacy makers will survive needed this info. Thanks, Sam. The intangible in business is the person in charge. Aptera founders found that out the hard way. They gave power away and it backfired on them, costing them many years. Or, as Elon quipped when he was asked if his competition could surpass Tesla, "No. They won't have me."

[johndair]

Consider this, in certain parts of Europe, it probably makes more sense to reconfigure an existing plant rather than go through permits and EIS for a new plant (remember Tesla Germany and all the hopes it had to jump through). As Fo the money, $2 billion to reconfigure and develop an new EV isn’t all that much for a high run vehicle. If it’s not well designed, it will struggle to sell and the money is wasted…look at how much VW put into developing MEB, $17 billion to now think it unimpressive, slow and takes too long to build…

[gregchristie]

Being a retired manufacturing production engineer 80% sounds pretty sensible to me. Retraining is not so bad.. it's not much different really than just training production line staff to build a brand new car they have never before, it's the phisical production equipment, assembly machinery, that changes.. for instance for assembly and installation of battery packs, electric motors & drivetrains, motor speed controllers and logic boards, inverters etc... All the other things that are different about electric vehicles, all unique to electric vehicles. But then there are many things which are the same on ice and evs .. body panel shell assys, shell painting, glass, interiors, wheels etc etc.. and hopefully they use some of the old equipment on this.. around 20% I guess, as you stated Sam.

[jamescripe]

They only kept 20% of the equipment, but how much equipment did they add?

If less equipment for simpler electric car assembly is needed, can they put in a second or third assembly line and boost production eventually?

[danielstapler]

Cars need a body, doors, bonnet and boot, painting, windows and windscreens, steering wheel and peddles, seats, mirrors, brakes and suspension, wheels and tyres. That seems a lot more than 20%. They may have changed 80% of the factory but they were upgrading al lot of things imo. A ten year old factory is getting on in years.

[sandmehlig]

If going through the hellish nightmare of bureaucracy, supply chain constraints and CO2-emmissions when putting up a new building in Europe can be avoided, retrofitting an existing building could be preferable.

[ovi]

Wow 😱😱 that's crazy expensive and huge work to convert ice factory to EV. Carlos Ghosn said Tesla's big advantage was starting with a white paper with new workers. Not good news for car automakers this next decade. Nokia, Eriksson time ?

[gpgt]

Quite interesting, thank you for sharing, car makers are in the biggest transformation in there history...

[alanjameson]

Another presumably huge cost would be writing off the unamortized value of the discarded equipment.

[MbeyaIsHome]

Their plans are likely to ramp up to at least 4000/week. That is where they can make a profit long-term

[ewmism]

Few makers will survive in this recessionary environment and this will send prices up.

[mefobills]

You have to start a new company and then strand ICE assets. After stranding collapse the debts in bankruptcy.

[noleftturns]

Sure sounds like a new EV production line needs a new factory built specifically for them.
and they don't use castings like Tesla does.

[murphylas]

I was watching a video on electric planes. Current batteries would have to have an increase of its energy density 53 times to compete with jet fuel. This means a 300 mile battery would be able to go 15, 900 miles on a single charge?

[jambay]

I've gotten to the point where I automatically dismiss "percentages" given as independent factoids. They are meaningless without a value context. Is that less than 10, more than 100, thousands?

[qilu]

byd says it is not hard or time consuming. u just need to know how to do it efficiently.

[sudhaapna]

Repurposing an old factory not that hard if you are willing to tear down walls and do try storms. The fact they spent 2 years planning means Renault does not understand lean design/manufacturing

[jackwhiteside]

I hear the click bait about Musk refusing to purchase GM. I'm thinking it makes a lot more sense to build a product designed factory from the drawing board up than to repurpose an existing factory built with the wrong infrastructure!