Shift into Gear (our chat for today)

Hello, Ayrton here.

Welcome to this week’s edition of theGearShift, today we are going to cover very interesting topics, so stay tuned for:

• Affordable electric vehicles coming to us, autonomous freight

• Perspective on warranties and insurance for your vehicle

• Discussion on why China is leading EV

• As always, curiosities and recommendations for a fun time

Now, please go ahead, enjoy the read and, if you really like it, share with 1 friend!

Auto Buzz (news news)

🏅 Lexus Leads in Safety: Lexus outshines Tesla and Mercedes in the latest IIHS driver-assistance system safety ratings, with its system on the Lexus LS sedan being the only one among 14 tested to earn an "acceptable" mark.

🚚 Autonomous Freight Future: Navistar teams up with Plus for a pioneering move into hub-to-hub autonomous trucking plan to launch a commercial pilot program with fleet customers by the end of this year.

💡 Affordable Electric Dreams: Unveiled at a starting price of $45,000, the R2 SUV by Rivian marks a pivotal move towards making electric vehicles accessible to a broader audience, showcasing the industry's potential for growth and widespread adoption.

⚡ Electric Dreams Close to Reality: everyone from industry giants to innovative newcomers like Lucid and Rivian in the mix, the upcoming electric vehicle lineup (just in 24): Acura ZDX, Audi A6 e-tron, BMW i5 M, Buick Electra, Cadillac Celestiq, Cadillac Escalade iQ, Jeep Wrangler EV, Lexus TZ, Mercedes-Benz EQG and others

🚗 Electrification Leads the Pack: With an eco-friendly twist, this year's winners of the Best Car of the Year include four hybrids, three PHEVs, and one electric vehicle. Subaru and Toyota emerge as frontrunners with two and four models.

Gear Talk (questions answered)

Are car warranties worth it?

Car warranties are like promises to fix your car if parts break, can be helpful but might not always be worth the cost. There are two main kinds: one that covers almost everything (bumper-to-bumper) and one that just covers the big stuff like the engine (powertrain). The cost depends on your car and what the warranty covers.

Newer or expensive cars could benefit from warranties due to high repair costs. But older or reliable cars, like Toyota and Hondas, might not need one. Their repairs are usually cheaper, making the warranty cost not worth it. Expensive and tech-dependent vehicles have pricier parts and repairs, so a warranty can save money. Affordable cars under $40,000 or known for reliability, may not justify the expense of an extended warranty

On the Road Ahead (what is coming)

How China Is Churning Out EVs Faster Than Everyone Else?

Have you ever wondered how China zoomed past everyone in the electric vehicle (EV) race? Well, it's not just about fast cars; it's about smart planning and a whole lot of support from the government. China's been implementing subsidies, tax breaks, and all sorts of boosts to get those homegrown EV brands off the ground. The result? A lineup of EVs that are not just tech-savvy but also wallet-friendly, attracting lots of young, eager buyers.

But wait, there's more to the story. Beyond just making cool cars, China's EV push was aimed to tackle some serious issues like air pollution and oil dependency, big problems over there. Plus, it's been a turbo boost for their economy, especially after the rough patch in 2008. They had the factories, the tech, and the materials all lined up, ready to shift from gas to electric machines.

Lets discuss some examples: the company BYD was responsible for Shenzhen's government fully electric bus fleet. Having federal and local support the companies were able to develop, supplying the demand created by the entities. Another example is Tesla's Shanghai Gigafactory, which practically sprouted from the ground in record time, thanks to some policy moves. Now, that factory is creating Teslas like there's no tomorrow, making it a crucial piece in Tesla's global puzzle and China as a leader in the sector.

The cherry on top? The appetite for EVs in China is huge, with more than half of the folks planning to make their next vehicle an electric one. And now, companies want to expand beyond their borders, Chinese EV brands are gearing up to take on the world, eyeing markets in Europe and even the U.S. Therefore, the main action here was strategic planning from the government, pushing the agenda and becoming the leader in the sector.

In the Driver's Seat (steering your way to a smarter car ownership)

Dealing With High Car Insurance Costs

Have you opened your car insurance bill and wondered why it's so high? It's not just happening to you; lots of people in the U.S. and other countries are dealing with this too. In America, car insurance prices have gone up by 39% compared to three years ago. Friends in the U.K. said their prices went up by 64%!

So, why are these prices going up? Mainly because the cost of used cars and the parts needed to fix them have gone up. This means insurance companies have to spend more money when cars get into accidents. Even though the prices of used cars are starting to level off, insurance prices still seem to be increasing because the cost of repairs remains high.

What can we do about it? I've started looking around to find better insurance deals. Also, putting my car insurance together with other insurance, like for my house, has helped me save some money. Choosing to pay a higher amount first if I get into an accident (this is called a deductible) has made my monthly payment lower. Just make sure it's an amount you can afford if something happens. And always look for discounts, especially if you are a safe driver or cutting back on mileage.

Finding a way to pay less for car insurance takes some work, but if you're smart about it, you can definitely find ways to save money. Let us know if you need help.

Fuel for Thought (curiosities to share)

🎵 An electric symphony, the sound of the Porsche Taycan: Porsche invested millions in creating a unique sound for the Taycan, differentiating it from other quiet electric vehicles. This sound, blending with Porsche's sporty heritage, offers a familiar acoustic signature that resonates with the brand's racing legacy while embracing the future. Have you heard it? Which resonates more with you: the traditional roar of the Porsche 911 or the innovative electric hum of the Taycan?

🔧 High-tech vehicle, low-tech problem: Suddenly your EV doesn’t start, it's not the big battery's fault but the tiny one, the traditional 12-volt battery powering all those gadgets inside. This small battery can unexpectedly run out, leaving you stuck. Never guessed an old-school battery could outsmart your EV, huh?

⚖️ First car designed for safety: In 1926, the Safety Stutz debuted with pioneering features like shatterproof glass and hydraulic brakes for $2,995 ($51,558 in today's money), aiming for top safety. Its high cost limited its reach, highlighting how price can stifle innovation. Does the price still challenge the adoption of advanced safety features in today's car market?

🔢 BIG number

7.3 million units

That’s how many vehicles Hyundai Motor Group sold in 2023, becoming the world's third-largest car company, just behind Toyota (~11.5M) and Volkswagen (~9.8M). The group includes Hyundai, Kia, and Genesis. They're doing really well with electric cars, getting closer to Tesla. Hyundai used to be known for cheaper, not-so-great cars, but they've changed a lot. They've invested a lot in technology and now see themselves more as a tech company than just a car maker, working on cool stuff like robotics, self-driving cars, and even flying taxis. It's pretty impressive how much they've improved.

Pit Stop (recommendation for a fun time)

🚗LEGO Builders, Start Your Engines! Dive into the world of LEGO car sets. While they may not be cheap, they're definitely worth the investment as they turn into impressive displays at home (and conversation starters on Zoom calls). I chose the Land Rover Classic Defender 90 kit to get my daughter excited about a road trip. This kit lets you customize from factory-fresh to expedition-ready, completing it with off-road accessories like a roof rack and a working winch. (Now she wants me to add the roof rack to ours). Prefer to build a sports car or Dom’s Dodge Charger instead?

📖How to Build a Car: The Autobiography of the World’s Greatest Formula 1 Designer: It covers Adrian Newey’s career from the late 1980s to 2017, showing how he created some of the fastest cars ever. It's a fast read, mixing stories from his life with how he designs cars. He shares the ups and downs of working in F1, making it a great read for anyone curious about the behind-the-scenes of racing and car design.

The end for today

Thank you again for the support and for enjoying this week’s theGearShift.club.

Share with Friends that Love Cars!

Ayrton