Delta_V

I'm skeptical of the problem being that simple. I think if that were the only issue, we would have cheaper cars.

Part of the rational for producing high margin trucks and SUVs is that investors demand the most margin possible out of every unit of production capacity. If a factory can only turn out 100 vehicles a year, its more profitable to turn out an expensive SUV that only 100 people can afford, compared to selling 100 cheap sedans that thousands of people want but you just can't produce enough of them.

If there were overcapacity, then in a vacuum, it would make sense to put it to work turning out low margin cars that are in high demand and making some money with that capacity instead of no money.

But its hard to predict years in advance when your factories are going to have excess capacity, and to know when to begin years long engineering projects so the vehicles you're going to want to produce will have their designs finished in time to fill those gaps. And its extra risky to begin those kinds of long range projects during times of rapidly changing regulations of ICE vehicles, and rapidly advancing tech for EVs that might invalidate years of engineering and factory tooling investments because you can't sell the vehicle you planned to produce for a long enough time to make back your investment and start seeing a profit. Not that I'm anti-regulation - I like breathing clean air and drinking clean water.

That's R&D cost divided over a small number of vehicles, not the cost of material and labor that goes into each vehicle. It only looks bad on paper.

For example, if you invest $100 in R&D and it costs $1 to produce each car, then the first car out of the factory costs $101. Sell that first car for $10 and you've "lost" $91. But if you can sell 100 cars, then each car only costs $2, not $101, and now on paper it looks like you've made $8 on each sale.

Time will tell if Ford made the right decisions about what kind of car to engineer and if consumers will continue to buy it long enough to make back the one time R&D expenses. That would happen faster if their margins on labor and material is high, like it is on trucks and SUVs, which makes those a safer investment.

Wait a minute, are you talking about taxi services? Those are for people who don't own a car when they need to make short trips that can't be done through public transportation. For people who do own a car, those kinds of short trips can be done with a PHEV without burning any gas.

For longer trips, its cheaper and more convenient to rent a car compared to taking a taxi. Yes, if the trip is to someplace with chargers along the way, an EV would be ideal. Yes, if there are no chargers along the way, then a HEV would be ideal. But a PHEV is almost as good as an HEV in that case - certainly better than a diesel in terms of emissions - and it lets you make the short trips without burning any gas, without having to make car rental reservations for long trips to areas without chargers, and without needing to purchase an entire second vehicle for driving in areas that do have chargers.

OK, so we've established a person can do the math and come up with some value of long trips where its not economical to rent.

Given that a person needs to make that many long trips, how many short trips would they also need to make for the gas savings from a PHEV in EV mode during short trips to exceed the gas loss from doing long trips in a vehicle that gets somewhat lower MPG on long trips compared to a pure hybrid?

How much value might a person reasonably assign to the flexibility to take a weekend road trip without having to plan ahead and make reservations with a rental company?

How frequently would you need to make that trip for it to be more expensive to rent a car each time?

Exactly. You can't choose to occasionally take road/business trips into the under developed parts of the world in a Leaf.

don't get me started

Yeah, it depends on the user.

I had an alcoholic neighbor with learning disabilities who had a PHEV minivan purchased for them, and they only kept the battery charged for the first few months of ownership. After that, they seemed to lose interest in plugging it in when they got home.

On the other hand, a friend of the family owns a PHEV sedan they keep charged religiously, and they need to buy fuel stabilizer because they almost never use any gas.

Plug in hybrids make a lot of sense during this transitional period of rapidly advancing battery technology and incomplete deployment of charging infrastructure.

Building a small, relatively cheap factory for manufacturing a small number of super expensive, pavement princess trucks is less risky than making a large investment in a megafactory capable of producing a meaningful number of affordable cars. That big car factory would need the market to demand its products for a long time for the investment to pay off. For example, if there's a big leap in battery tech in the near future, the car manufacturer would take a loss - either they continue to offer outdated EVs and sell fewer than projected (only utilizing a fraction of the factory's maximum output, while still paying taxes and maintenance on a larger facility), or they throw away their expensive, brand new factory tools and build expensive new ones for manufacturing cars with the new batteries.

Meanwhile, charging an EV at home still isn't possible for a lot of people, and quick charger stations aren't available yet in a lot of areas. However, a plug in hybrid can be adequately charged overnight by a standard home electrical outlet, letting it act like an EV for quick trips around town. Meanwhile, longer trips into not-yet-electrified areas are still possible thanks to the ICE, and the range can be quickly topped up at a gas station. More plug in hybrids on the roads also generates demand for building charging infrastructure - if someone just has $5 to spend on gas, they could get more miles by spending it on electricity at a quick charger.

Been there. Chose 4. Can you believe they had a slightly different approach to liberation of the working class? Really dodged a bullet on that one.