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10 Used And Affordable SUVs That Have 5-Star Safety Ratings

During the COVID-19 pandemic, the legislation of provide and demand, in addition to common hysteria, despatched the costs of used autos by means of the roof. Things have since come again to actuality, however now new car costs are getting out of hand and out of attain for most individuals. Given the state of the financial system, it is sensible to buy a used car, particularly for households on a price range, and a pre-owned SUV goes to examine off most of their wants affordably.

Obviously, everybody has a special thought of what constitutes “affordable” however something beneath the typical worth of a brand new car is an efficient place to begin. Unfortunately, in 2024 the typical worth for a brand new automobile is nearly $50,000, which is as bonkers because it sounds. A greater perimeter for affordability is someplace between $13,000 and $35,000. That’s a spread that matches nearly anybody’s price range and permits for a big selection of stable used SUVs from fundamental transportation to a little bit of luxurious.

There’s actually no level in shopping for a used, or perhaps a new SUV if it is not secure and dependable, so TopSpeed has compiled an inventory of the perfect in all classes. Each of those autos has an total five-star security score from the NHTSA, a better-than-average reliability score, and a price ticket that works for everybody. Those searching for full-size SUVs on this record are going to be upset, as a result of, for no matter purpose, they do not do properly in front-end crash-testing and have a higher danger of roll-over.

In order to provide the most recent and correct info doable, the info used to compile this text was sourced from numerous producer web sites and different authoritative sources, together with NHTSA, Edmunds, and Car and Driver.

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10 Best SUVs With Affordable Maintenance Costs

With advancing tech and complexity, sustaining trendy vehicles has turn into costlier, however listed below are 10 SUVs that handle to stay reasonably priced

10 2019 Buick Encore

Starting Used Price: $13,000

2019 Buick Encore
Buick

The incontrovertible fact that most individuals could not identify something that stands out a couple of Buick is a reasonably good indication that they’ve a repute for making reasonably bland autos. The Encore, nevertheless, bucks the corporate’s mediocre pattern with a stylish subcompact SUV. This little four-door is so filled with options and design aesthetics that it nearly qualifies as a luxurious car.

Performance Specifications

Engine

1.4-liter turbo I-4

Transmission

Six-speed computerized

Horsepower

153 hp

Torque

177 lb-ft

Driveline

AWD

0-60 MPH

7.8 seconds

Top Speed

119 MPH

Towing Capacity

N/A

Payload Capacity

N/A

(Data was collected from Buick, and Car and Driver)

The Buick Encore additionally has surprisingly good acceleration for a price range trip. It was priced proper when it was new and a used 2019 mannequin in glorious situation with low mileage could be snagged for as little as $13,000. More than simply fundamental transportation, the Encore offers somewhat style of luxurious with out breaking the financial institution.

Pros

  • Quick acceleration
  • Loaded with normal options
  • Attractive styling

Cons

  • Engine sounds bizarre
  • Rough trip
  • Limited second-row legroom

9 2022 Kia Soul

Starting Used Price: $13,000

2022 Kia Soul 
Kia

The Kia Soul is one other subcompact SUV that’s loaded with features and comfort that comes at an affordable price. Where this tiny crossover actually shines is with the seemingly unimaginable inside area. It is a lot greater on the within than it appears to be like from the road, and an ideal trip for individuals who do not usually match comfortably in a subcompact.

Performance Specifications

Engine

2.0-Liter I-4

Transmission

Continuously variable transmission

Horsepower

147 hp @ 6,200 RPM

Torque

132 lb-ft @ 4,500 RPM

Driveline

FWD

0-60 MPH

8.0 seconds

Top Speed

120 MPH

Towing Capacity

N/A

Payload Capacity

N/A

(Data was collected from Kia Soul, and Car and Driver)

Like the Buick Encore, the Kia Soul is a short-wheelbase car, which interprets right into a less-than-smooth driving expertise. It’s not a deal-breaker, neither is it that large of a problem, however do not count on the silky trip of an $80,000 luxurious car from this price range SUV that may be discovered used for as little as $13,000.

Pros

  • Roomy inside
  • Peppy acceleration
  • Great normal tech

Cons

  • Rocky trip
  • No AWD
  • Excessive wind noise

8 2020 Mazda CX-5

Starting Used Price: $18,000

Front 3/4 of the 2020 Mazda CX-5
Mazda

For drivers who need some further efficiency to go together with the practicality of an SUV, the Mazda CX-5 is a good selection. The compact crossover has a sporty suspension, crisp dealing with, and a few highly effective turbocharged engine choices. For the beginning used worth of round $18,000 for a 2020, it is arduous to discover a car in any class that may go like CX-5.

Performance Specifications

Engine

2.5-liter I-4

Transmission

Six-speed computerized

Horsepower

187 hp @ 6,000 RPM

Torque

186 lb-ft @ 4,000 RPM

Driveline

FWD

0-60 MPH

8.6 seconds

Top Speed

130 MPH

Towing Capacity

2,000 kilos

Payload Capacity

N/A

(Data was collected from Mazda, and Car and Driver)

The Mazda CX-5 has the added benefit of being a sharp-looking trip, with distinct styling that units it other than the conformist mid-size crossover SUV phase. Add within the upscale inside and this is likely one of the finest values within the used market. The solely drawbacks are the inside is much less roomy than rivals, and the gas financial system might be higher.

Pros

  • Great driver
  • Powerful obtainable engine
  • Elegant styling

Cons

  • Low cargo capability
  • Below-average gasoline mileage
  • Puts efficiency over practicality

Related

The Safest Mid-Size SUVs In 2023 According To IIHS

As SUVs proceed to promote in large numbers, this is why the IIHS has rated these fashions because the most secure mid-size crossover’s on the highway immediately

7 2020 Hyundai Santa Fe

Starting Used Price: $22,500

White Hyundai Santa Fe Hybrid
Hyundai

The Hyundai Santa Fe could also be the perfect SUV for families, and a 2020 used one is unquestionably excellent for households on a price range. With loads of inside room and brimming with practicality, it is a not-too-fancy mid-size crossover that delivers worth, security, and dependability above different autos in its class. Available in both FWD or AWD, there are additionally a few engine choices to configure the Santa Fe for a lot of makes use of.

Performance Specifications

Engine

2.4-liter I-4

Transmission

Eight-speed computerized

Horsepower

185 hp @ 6,000 RPM

Torque

178 lb-ft @ 4,000 RPM

Driveline

FWD

0-60 MPH

7.8 seconds

Top Speed

130 MPH

Towing Capacity

N/A

Payload Capacity

N/A

(Data was collected from Hyundai, and Car and Driver)

The high turbo engine possibility is not probably the most highly effective factor on this planet, however the Santa Fe is not a efficiency mannequin or a severe off-roader, it is a household trip. For a pristine 2022, used base mannequin Santa Fes run round $20,000 and if a purchaser would not thoughts a couple of beauty flaws, they are often had for a grand or two much less. Dealer markup provides some pointless worth, however a little analysis and a few haggling will carry that down.

Pros

  • Great worth
  • Practical car
  • Roomy inside

Cons

  • On the sluggish aspect
  • Basic inside
  • Mediocre gasoline mileage

6 2022 Subaru Ascent

Starting Used Price: $23,500

2022 Subaru Ascent
Subaru

The Subaru Ascent is the proper mid-size SUV for rising households with three rows of seating. It’s additionally loaded with cubbies and cupholders, making the simplest use of the inside area of any car within the phase. The cabin is plush, the suspension {smooth}, and the turbo engine is competent, which provides as much as a really pleasant driving expertise.

Performance Specifications

Engine

2.4-liter turbo I-4

Transmission

Eight-speed computerized

Horsepower

260 hp @ 5,600 RPM

Torque

277 lb-ft @ 2,000 RPM

Driveline

AWD

0-60 MPH

6.9 seconds

Top Speed

130 MPH

Towing Capacity

2,000 kilos

Payload Capacity

N/A

(Data was collected from Subaru, and Car and Driver)

The Ascent, like all Subarus, is all-wheel drive, nevertheless it’s road trip all the way in which. For these searching for an off-road Subie, a 2022 Crosstrek will do the trick, and for much less cash. Used 2022 Ascents begin simply above $23,000, however a Crosstrek from the identical yr could be had for as little as $20,000. It would not provide the identical consolation, however there’ll all the time be trade-offs.

Pros

  • Spacious inside
  • Comfortable trip
  • Looks much less like a station wagon than most Subarus

Cons

  • Annoying driver’s help system
  • Rear seats do not fold flat
  • No off-road packages

5 2021 Nissan Murano

Starting Used Price: $25,500

2021 Nissan Murano
Nissan

The Nissan Murano has aggressive styling that gives the look it is strictly a efficiency SUV, however on the within, it is a comfy family-friendly car. The normal 260-horsepower V-6 offers it loads of acceleration, however the mid-size crossover actually shines with its way-above-average {smooth} trip and dealing with. It’s the proper mixture of a household each day driver and a weekend adventure-mobile.

Performance Specifications

Engine

3.5-liter V-6

Transmission

Continuous variable transmission

Horsepower

260 hp @ 6,000 RPM

Torque

240 lb-ft @ 4,400 RPM

Driveline

RWD

0-60 MPH

7.3 seconds

Top Speed

120 MPH

Towing Capacity

1,500 kilos

Payload Capacity

N/A

(Data was collected from Nissan, and Car and Driver)

Probably not a best choice for mountaineering, it’s a nice SUV for nation and mountain highway excursions. While there are different SUVs within the class with a bit extra cargo room, the Murano is spacious sufficient that few would complain. It’s additionally close to the highest within the phase for gas financial system and the value is true, particularly for a used 2021, which begins at round $25,000.

Pros

  • Aggressive styling
  • Comfy inside
  • Good gasoline mileage

Cons

  • Low towing capability
  • Less cargo area
  • All-wheel drive possibility will get costly

Related

The Only Large Luxury Sedan To Earn An IIHS Top Safety Pick+ In 2024

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4 2021 Ford Bronco

Starting Used Price: $26,500

Red Black and blue 2021 Ford Broncos at Moab
Ford

A model new 2024 Ford Bronco begins at $41,525, however a 2021 used one could be had for about half the value and likelihood is it should be simply pretty much as good. The rebooted Bronco, launched in 2021, offers so many configurations and trims that there’s actually one for each doable use. It generally is a cool-looking grocery-getter or a killer off-road monster.

Performance Specifications

Engine

2.3-liter turbo I-4

Transmission

Seven-speed computerized

Horsepower

275 hp @ 5,700

Torque

315 lb-ft @ 3,400

Driveline

4WD

0-60 MPH

7.1 seconds

Top Speed

99 MPH

Towing Capacity

3,500 Pounds

Payload Capacity

1,243 Pounds

(Data was collected from Ford, and Car and Driver)

There’s no method a decked-out Wildtrack goes to promote for that worth, however decently optioned decrease trims are very reasonably priced. Edmunds experiences {that a} 2021 Bronco Black Diamond two-door four-wheel drive with the turbo four-cylinder could be bought for round $26,500 from a personal get together and $28,500 from a vendor. That’s for a car in excellent situation, so if a couple of scratches do not matter, they’re much more reasonably priced.

Pros

  • Fun off-road
  • Tons of configurations
  • Retro-modern styling

Cons

  • No V-8
  • Cheap inside
  • Excessive highway noise

3 2022 Toyota Venza

Average Used Price: $27,000

White 2022 Toyota Venza
Toyota Newsroom

For an reasonably priced, dependable, SUV that will get good gasoline mileage, patrons cannot go mistaken with a used Toyota Venza. The mid-size crossover takes the sting on the pump away with a solid hybrid engine setup, and it really delivers respectable efficiency. The refined, however stylish physique curves give it a classy look, which is an added bonus to this all-round nice car.

Performance Specifications

Engine

2.5-liter I-4/3 electrical motor hybrid

Transmission

Continuously variable transmission

Horsepower

219 hp @ 5,700 RPM

Torque

163 lb-ft @ 5,200 RPM

Driveline

AWD

0-60 MPH

7.6 seconds

Top Speed

118 MPH

Towing Capacity

N/A

Payload Capacity

N/A

(Data was collected from Toyota, and Car and Driver)

The Toyota Venza additionally delivers unprecedented luxurious and options for a mid-level trip, placing it in Lexus territory for a lot much less money. The Venza would not have as a lot inside area for passengers and cargo as many different mid-size SUVs, however that does not imply it has a cramped cabin. With good gas financial system, luxe options, and that legendary Toyota reliability, these infants are a steal within the beneath $30,000 used bracket.

Pros

  • Great gasoline mileage
  • Luxury options
  • Solid trip

Cons

  • Smallish cargo capability
  • Hybrid engine whines
  • Acceleration might be higher

2 2020 Lexus RX

Starting Used Price: $30,000

2020 Lexus RX
Lexus

Speaking of Lexus, the 2020 RX is an ideal used SUV for many who need precise luxurious, reasonably than the luxury-adjacent Toyota Venza. The mid-size crossover from Lexus has a bit more refinement and higher options, however would not take that many extra {dollars} to personal. The RX is somewhat longer and a bit extra roomy than its Toyota cousin, and comes with extra normal options.

Performance Specifications

Engine

3.5-liter V-6

Transmission

Eight-speed computerized

Horsepower

295 hp @ 6,300 RPM

Torque

267 lb-ft @ 4,700 RPM

Driveline

FWD

0-60 MPH

6.9 seconds

Top Speed

124 MPH

Towing Capacity

3,500 kilos

Payload Capacity

N/A

(Data was collected from Lexus)

A serious part that separates a luxurious trip from a standard one is efficiency, and the RX has that lined with highly effective engine choices. It is obtainable with a smart hybrid set-up, however the formidable V-6 is far more enjoyable. If the price range permits, a implausible luxurious Lexus SUV could be discovered for as little as $30,000.

Pros

  • Roomy, luxurious cabin
  • Great acceleration
  • Impressive normal tech and options

Cons

  • Stiff trip
  • Steering might be extra responsive
  • Third row in identify solely

Related

14 Electric Vehicles That Landed On The IIHS Top Safety Picks List In 2024

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1 2022 Acura RDX

Average Used Price: $32,500

2022 Acura RDX
Acura

Hitting the higher stage of five-star reasonably priced used SUVs, the 2022 Acura RDX is a bit pricier than the others on this record, but also maybe the best value. The compact crossover has all of the consolation and efficiency of a full-size luxurious mannequin in a good little package deal. Unlike most small wheelbase SUVs with excessively stiff or spongy suspensions, the RDX rides like a dream.

Performance Specifications

Engine

2.0-liter turbo I-4

Transmission

10-speed computerized

Horsepower

272 hp @ 6,500 RPM

Torque

280 lb-ft @ 1,600 RPM

Driveline

FWD

0-60 MPH

6.2 seconds

Top Speed

112 MPH

Towing Capacity

N/A

Payload Capacity

N/A

(Data was collected from Acura, and Car and Driver)

Thanks to the Acura Super Handling All-Wheel Drive system, the RDX has a full-size luxurious trip with a compact’s agility. It’s additionally a slick-looking crossover that’s loaded with options and a luxurious inside, making for an total spectacular package deal. The solely downside is that it’s a compact, so those that want extra room for teenagers and cargo in all probability wish to look elsewhere.

Pros

  • Seriously fast
  • Smooth trip
  • Top-tier luxurious

Cons

  • Awful push-button Infotainment system
  • Blind-spot points
  • Gearbox could be wonky

How To Choose The Right Power Supply For Your Electric Guitar Pedalboard

Arguably, a very powerful think about figuring out which energy provide brick is true on your guitar pedalboard is figuring out the voltage necessities.. Depending on a number of elements, you could possibly have quite a lot of completely different voltages requirements that you could be not have even realized while you bought them, and never each energy provide will have the ability to accommodate them.

Luckily, most pedals have a tendency to make use of a 9V energy provide, and a lot of the bricks available on the market are made for these 9V pedals. Finding an influence provide for these pedals might be pretty simple. However, not each pedal is a 9V pedal, and you could possibly have pedals that attain upwards of 12, 18, and even 24V. These easier 9V energy provides simply will not work. This doesn’t suggest you must get one energy provide on your 4 9V pedals and two 18V pedals, for instance. There are energy provides on the market that assist a number of voltages throughout the identical brick, both by having designated outputs for sure voltages — as every output is remoted — or by having variable outputs that permit a number of completely different voltages.

To work out what voltage your pedals are, that data is both printed instantly on the pedal itself or discovered within the handbook. If you’ve bought a used pedal that comes with no handbook and the quantity has been scratched or worn off the pedal, take to the Internet to seek out out, as some guitar fanatic on the market has in all probability answered the query.

Where Are iPhones And iPads Made?

Apple publishes prolonged provide chain reviews annually. These are primarily PR paperwork and the claims made in them ought to be taken with a pinch of salt, however they supply some helpful insights into how the corporate operates. In the latest report, Apple acknowledges that its provide chain spans over 50 international locations. This international community contains over 3 million folks, and hundreds of amenities.

In the report, Apple additionally boasts about supporting numerous human rights and environmental rules, whereas guaranteeing its suppliers are recurrently assessed by third-parties. According to Apple, greater than half 1,000,000 provider workers had been surveyed and interviewed by unbiased our bodies in 2022 alone. The suppliers that fail to fulfill the corporate’s Code and Standards are barred from getting into the chain, the report says.

In a separate document that particulars how Apple works with firms around the globe, it’s acknowledged that suppliers are held to excessive requirements, which incorporates aligning with worldwide labor guidelines and human rights ideas. The doc even touches on little one labor, stating that if such practices are found, the provider is “required to immediately prevent the employee from continuing to work, and return the underage individual to his or her home safely.”

How Canada And The U.S. Could Shake Up The EV Battery Supply Chain

Summary

  • Canada surpasses China as the highest nation in BloombergNEF’s Global Lithium-Ion Battery Supply Chain Ranking, highlighting its potential in constructing a safe and sustainable battery ecosystem.
  • Canada’s benefit lies in its considerable uncooked materials assets, sturdy integration with the US automotive sector, and clear coverage commitments that assist the event of a home battery provide chain.
  • While China stays the dominant participant within the battery provide chain, different areas like Africa and Asia are making progress and have the potential to reshape the worldwide provide chain panorama sooner or later.

The electric vehicle (EV) revolution is electrifying the world, however its continued success hinges on a important element: the battery. As the demand for cleaner transportation soars, considerations concerning the stability and safety of the EV battery provide chain rise. Currently, China reigns supreme, controlling over 80% of worldwide manufacturing capability. This dominance, fueled by government support, early investments, and resource access, has sparked worries about overreliance on a single supply.

Geopolitical tensions and moral concerns surrounding battery supplies add additional urgency to diversifying the provision chain. Enter the United States and Canada. Recognizing the opportunity and challenges, these North American neighbors are becoming a member of forces to construct a sturdy and sustainable battery ecosystem. According to BloombergNEF’s newest rating, North America is about to disrupt the Chinese established order.

Related

How China Became A Dominant Force In The EV Race

China’s EV dominance did not occur in a single day, and this is what it did to turn into the world’s EV hub.

In order to provide the newest and correct info attainable, the information used to compile this text was sourced from BloombergNEF and different dependable sources. While Canada presently holds the highest spot in BloombergNEF’s (BNEF) Global Lithium-Ion Battery Supply Chain Ranking, it is essential to do not forget that that is BloombergNEF’s predictive rating and China nonetheless boasts the strongest established provide chain.

Canada Takes The Lead But China Remains The Powerhouse

Polestar Battery Model Prototype
Polestar

The latest edition of BNEF’s annual ranking, published on February 5, 2024, marks a major shift. For the primary time, Canada has surpassed China to assert the primary place. This rating assesses 30 international locations based mostly on their potential to construct a safe, dependable, and sustainable lithium-ion battery provide chain.

What we’re seeing now’s solely the tip of the iceberg of what Canada and the remainder of North America are able to in the case of creating a neighborhood provide chain for EVs. To at the present time, the province of Quebec’s filière batterie financial challenge is estimated to have an financial price of $11 billion. That quantity will develop as extra new investments, such because the latest Northvolt challenge, will assist strengthen the Canada-USA-Mexico provide chain.

– William Clavey – TopSpeed EV Journalist And Expert

Key Factors Behind Canada’s Ascent

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Sodium-ion Battery Is Shaping Up To Be A Viable Alternative To Lithium-ion Battery In EVs

U.S. researchers have achieved breakthroughs in sodium-ion batteries, promising cheaper, sustainable power storage for electrical automobiles.

Friendshoring And Policy Drive Progress

BYD Blade Battery
BYD

The rating displays a broader pattern of North America’s rising potential within the EV battery provide chain. The U.S. Inflation Reduction Act (IRA) performs a vital function on this, incentivizing friend-shoring – bringing manufacturing nearer to residence. This advantages Canada as a key companion within the U.S. automotive business.

Mexico Is Also Ripping Benefits

Battery research lab
Volkswagen 

Mexico has additionally seen spectacular progress, climbing 9 positions to nineteenth within the rating. While scaling up the home business stays a problem, Mexico’s current mining and automotive actions present a powerful basis. The IRA’s support for the EV and energy storage sectors in Mexico additionally performs a serious function.

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This New Solid-State Battery Design Will Offer 10-minute Charge And 6,000 Cycles

A brand new battery design claims it may possibly forestall stray lithium from spiking its approach by solid-state batteries.

Challenges And Opportunities For Other Regions In The Booming Battery Supply Chain

A front rendering of the Mercedes-Benz Vision One Eleven Concept, its motors and battery pack
Mercedes

While North America basks within the sunshine of considerable assets, sturdy coverage commitments, and tight integration, different areas across the globe are navigating a posh panorama of challenges and opportunities in the lithium-ion battery supply chain. BloombergNEF’s (BNEF) annual Global Lithium-Ion Battery Supply Chain Ranking paints a nuanced image, highlighting each regional strengths and areas for enchancment.

  • “…Long Live The King”: Despite being dethroned by Canada within the rating, China stays the undisputed heavyweight when it comes to established battery provide chain infrastructure.
  • Rising From The Ground Up: African nations, rich in battery metals, are capitalizing on the chance by partnering with world gamers to increase their mining sectors and set up new manufacturing services. The three African international locations included within the rating – South Africa, Morocco, and the Democratic Republic of the Congo – witnessed enhancements of their upstream presence. To absolutely harness their potential, these international locations must prioritize maximizing worth addition inside their very own borders, specializing in actions like metals refining and battery precursor manufacturing.
  • The Rest Of Asia Is Chasing The Dragon: The area noticed essentially the most important progress in comparison with the previous year’s BNEF ranking, with India and Indonesia main the cost. As introduced initiatives materialize all year long, the area’s momentum is predicted to proceed, doubtlessly reshaping the worldwide provide chain panorama. Targeted provide chain roadmaps have been instrumental in propelling these rising economies up the ranks, however sustained efforts are essential to translate potential into actuality.

Maintaining Momentum And Building A Sustainable Future

Audi High-Voltage Battery Project House
Audi

The fast growth of focused provide chain roadmaps has propelled rising economies on this yr’s rating. However, sustained efforts are important to comprehend their full potential. As Kwasi Ampofo, BNEF’s Head of Metals and Mining, highlights;

Trade relations will probably be an attention-grabbing issue to observe in 2024, as overseas coverage efforts within the US and EU proceed to make it troublesome for worldwide corporations to function in main markets like China.

Looking forward, collaboration, innovation, and a concentrate on environmental and social accountability will probably be key to constructing a safe, sustainable, and globally diverse EV battery supply chain. Canada and the US are poised to play a major function on this transformation. However, it is necessary to do not forget that the race is much from over, and different areas have the potential to make important strides within the years to return.

Local for local: BMW Group prioritizes regional supply chains to expand e-mobility in North America

The BMW Group is expediting its efforts in e-mobility and increasingly relying on regional supply chains, following the principle of “local for local.” The company’s goal is to procure components like battery cells close to vehicle production and gradually localize the supply chain for primary materials.

In order to establish a local supply chain in North America, the BMW Group has enlisted the services of Belgian company Umicore. Umicore will supply cathode active battery materials to our battery cell supplier AESC from a new plant in Ontario, Canada. This is a crucial step in strengthening our regional supply chains and ensuring the expansion of e-mobility.

Aligned with the “local for local” principle, our partner AESC is currently constructing a battery cell factory in Florence, South Carolina. The facility, with an initial capacity of 30 GWh per year, will manufacture cylindrical lithium-ion battery cells specifically designed for the sixth generation of BMW eDrive technology. The production of battery cells and cathode raw materials will exclusively rely on renewable energy sources.

Joachim Post, member of the BMW AG Board of Management responsible for Purchasing and Supplier Network, stated, “The BMW Group follows a globally balanced procurement strategy in the three main geographical regions of the world. Our battery cell supplier in the US will now source key primary materials from Canada. We are delighted that Canada is playing a significant role in establishing a robust and efficient battery cell supply chain for the BMW Group in North America.”

In October 2022, Oliver Zipse, Chairman of the BMW AG Board of Management, announced a substantial investment of 1.7 billion US dollars to expand the US production site. As part of this investment, 700 million US dollars will be allocated to building the BMW Group’s new assembly center in Woodruff. This facility will produce high-voltage batteries for the fully-electric BMW X models in the future. In its initial phase, the approximately 93,000 sq. m. facility will focus on manufacturing sixth-generation battery modules and will create around 300 new jobs.

The new sixth-generation battery format will offer an increase in energy density of over 20 percent and improve charging speed and range by up to 30 percent. Additionally, CO2 emissions from cell production will be reduced by up to 60 percent, partly due to cell suppliers sourcing energy from renewable resources and partly due to the utilization of secondary materials for lithium, cobalt, and nickel.

Why Janus Motorcycles Buys Its Engine From China

Janus Motorcycles, a manufacturer of lightweight hand-built bikes, has a unique reason for sourcing its engines from China. Founder Richard Worsham explains that he wanted a suitable engine for Janus’ bikes that would align with their vision of simplicity and reliability.

Worsham explored the possibility of using typical American-made motorcycle engines, such as the big V Twin engines from Harley Davidson or Indian, or even a modified version from S&S Cycle. However, these engines did not match the lightweight and minimalist design that Janus was aiming for.

Instead, Janus opted for a 229cc motor originally designed by Honda in the 1970s. Worsham highlighted the importance of having an engine that is simple, reliable, and easy to service. By choosing a long-established engine design, Janus ensures that parts availability will not be an issue, as manufacturers have been producing parts for this particular engine for several decades.

Ultimately, Janus’ decision to source engines from China was based on finding the right engine for their specific needs and providing their customers with a dependable and easily maintainable product.

Toyota Faces Production Stoppage in Japan Due to Insufficient Disk Space

When an automaker halts production at a plant, it is usually due to supply shortages or accidents. However, Toyota recently had to stop production at all of its 14 factories in Japan for a different reason.

On August 29, production was suspended at several domestic plants, affecting 28 lines in total. The cause of this halt was a maintenance work mishap that occurred the day before. During regular maintenance, Toyota was deleting and organizing data in the database. Unfortunately, the system encountered an error due to insufficient disk space, leading to the production stoppage.

Volkswagen Group’s New Strategy for Semiconductor Procurement

The Volkswagen Group is reorganizing its procurement process for electronic parts and semiconductors. This strategic move aims to secure a long-term supply and establish the Group as a leading technology and competitive player in the automotive industry. To achieve this, the Group has developed a new approach to procuring parts with electronic components.

Dirk Große-Loheide, Board Member for Procurement of Volkswagen Passenger Cars and member of Group management, emphasized the importance of transparency in the semiconductor value chain. By having a clear understanding of the parts used, the Group can accurately determine global demand and availability. This level of transparency enables effective risk management, allowing the Group to detect and prevent bottlenecks in the supply chain early on. For critical semiconductors and future developments, Volkswagen will focus on direct purchasing from semiconductor manufacturers.

In the past, Tier 1 suppliers had significant autonomy in selecting electronic components like control units. However, going forward, Group procurement will work closely with Tier 1 suppliers to define the specific semiconductors and electronic parts to be used. This collaborative effort will be facilitated by the Semiconductor Sourcing Committee (SSC), which consists of representatives from the procurement and development departments of various Volkswagen brands, as well as Volkswagen Group Components and CARIAD.

Karsten Schnake, Board Member for Procurement at Škoda Auto and head of the cross-brand and cross-functional task force COMPASS (Cross Operational Management Parts & Supply Security), explained that transparent semiconductor procurement offers several advantages. It allows for the identification and implementation of technical alternatives more swiftly in case of supply bottlenecks. It also reduces hardware variants, leading to less complex software systems.

Semiconductors are crucial components in the automotive industry. They are not only essential for mass production but also drive innovation and enable the launch of new products. The growing demand for semiconductors is primarily driven by the electrification of vehicles and the increasing use of assistant functions, including fully autonomous driving. These technological advancements require cutting-edge semiconductors, while the demand for more common semiconductors continues to rise.

This shift towards advanced semiconductors and increased electronic components in vehicles has a significant impact on their value. The value of electronic components is projected to more than double by 2030 from the current average of around 600 euros per vehicle. The automotive sector’s importance as a customer in the semiconductor industry is also growing. Currently, the automotive industry ranks fifth among major buyers, with a global procurement volume for semiconductors of around 47 billion US dollars. By 2030, it is expected to secure the third position with a market volume of approximately 147 billion US dollars.

The COVID-19 pandemic and the resulting chip crisis have highlighted the need for robust semiconductor supply chains. To address these challenges and ensure a stable supply, the Volkswagen Group launched the COMPASS initiative in early 2022. The initiative focuses on safeguarding the vehicle program and includes strategic measures based on lessons learned from the semiconductor crisis. These measures aim to provide long-term solutions for the Group’s semiconductor procurement.

Challenges jeopardize the recovery of European car sales

Recent data reveals that car sales are surging in Europe due to the return of supply. However, the industry’s rebound in the second half of the year is under threat due to high new car prices and increasing interest rates.

The ACEA, a European automotive industry group, reports that overall sales in Europe, including the UK, have increased by 17% to 5.3 million during the first five months of the year.