In January, Vroom officials announced a Value Maximization Plan, which discontinued the company’s eCommerce operations and wound down its used vehicle dealership. As part of the Value Maximization Plan approved by Vroom’s board of directors, the company will suspend transactions on vroom.com, sell its existing used vehicle inventory through wholesale channels, stop acquiring additional vehicles and implement a workforce reduction in line with its scaled-back operations.

Included among Vroom’s long-term strategic initiatives are building a world-class lending program, along with a sales and marketing program, create operational excellence in originations, build operational excellence in servicing to achieve pre-COVID cumulative net losses and lower operating costs.

UACC and CarStory, both leaders in their respective spaces, will continue to serve their third-party customers and focus on growing those businesses, according to the strategic plan.

“We believe our Vroom IP and Tech Stack have the potential to create value for our business and continue to explore opportunities to monetize these assets through asset sales, licensing and a SaaS model,” according to the plan.

Vroom’s long-term strategy is designed to transform the automotive retail landscape, the plan said, with a keen focus on technology and customer experience. The company aims to streamline its operations by divesting non-core segments and focus on what it does best: facilitating seamless vehicle transactions.

At the heart of Vroom’s strategy is the integration of advanced technology, according to its plan. By harnessing data analytics, the company seeks to better understand customer preferences and optimize its inventory management. This technological infusion extends to artificial intelligence and machine learning, which promise to simplify the vehicle purchasing process and improve customer satisfaction.

A cornerstone of Vroom’s approach is its commitment to customer experience, according to the strategic plan. The company strives to make buying and selling vehicles as transparent and hassle-free as possible. Key features, such as home delivery, a seven-day return policy, and thorough vehicle inspections, are designed to build trust with consumers and encourage repeat business.

To sharpen its focus, the plan calls for Vroom to make strategic divestitures. This decision allows the company to channel resources more effectively into enhancing its online platform and improving customer service. Company officials aim to diversify their revenue streams beyond just vehicle sales. The company is expanding its financing options and exploring partnerships that enrich the customer experience, offering services such as warranties and vehicle accessories to create loyalty.

Another part of the plan is geographic expansion. The company is strategically investing in logistics and distribution networks to strengthen its presence in key markets, driving sales and increasing brand recognition.

Vroom’s long-term plan focuses on enhancing its operations and customer experience by emphasizing the benefits of online vehicle purchasing through strategic marketing. The company’s strategy centers on innovation and customer satisfaction, with a goal of growing its revenue streams and forming partnerships within the automotive ecosystem.

The post Vroom Completes Business Wind-Down; Shifts Focus to Core Assets appeared first on PYMNTS.com.

In July Ford shifted its strategy for the Oakville Assembly plant in Canada, pivoting from its original plan to produce EVs to instead manufacture larger gasoline-powered versions of its popular F-Series pickup trucks. This delay is due to slower-than-expected EV demand. Despite the adjustment, Ford remains committed to EVs but has not announced alternative sites for future EV production.

Ford led traditional automakers with a 61% increase in EV sales year over year, reaching 23,957 units. This surge contributed to the company’s overall sales growth and cemented its position as the second-largest EV seller in the U.S., surpassing General Motors.

This latest federal funding is part of the $7.5 billion program created as part of the 2022 Inflation Reduction Act, which aims to build out fast chargers along interstate highways as well as bringing charging infrastructure to underserved communities.

In June 2023 Tesla secured a $3 billion boost following agreements with General Motors and Ford to adopt Tesla’s North American Charging Standard (NACS) for their EVs. This deal highlights Tesla’s edge, given that its network is more extensive and considered more reliable compared to the competing combined charging system (CCS).

Tesla’s network serves as the primary EV network in North America, covering about 70% of the EV market. Meanwhile,, CCS,  American companies are also ramping up their EV charging capabilities. Walmart revealed in April plans to expand its fast-charging network across thousands of Walmart and Sam’s Club locations, increasing the total to nearly 1,300 stations. Similarly, 7-Eleven announced in March its intention to build one of the largest retail EV fast-charging networks, adding stations across its 7-Eleven, Speedway, and Stripes locations.

Despite some reports of a slow rollout of EV chargers nationally, in an interview with PYMNTS a spokesman for the U.S. Department of Energy said “We are on track to achieve the president’s goals years early. President Biden set a goal to build a network of 500,000 publicly available EV chargers to support the adoption of EVs and the development of a U.S. supply chain, creating good-paying jobs in manufacturing, installation, operations and maintenance in all pockets of the country.”

As of Aug. 27, according to the spokesperson, the U.S. had more than 192,500 EV chargers and 71,937 stations publicly available. 

“Nearly 1,000 new public chargers are turned on every week, thanks to a combination of direct federal funding, federal tax incentives, state and local funding, and private investment,” the spokesperson said. “We expect to see hundreds of federally funded chargers operational this year, thousands next year, and hundreds of thousands of chargers by the end of the decade.” 

For new high-power stations benefiting from federal funding from the National Electric Vehicle Infrastructure Formula Program (NEVI), “we are right where we expected to be.” 

The Bipartisan Infrastructure Law passed in late 2021, and states began planning their EV charging infrastructure deployment in mid-2022, the spokesperson noted.

“We released minimum standards for federally funded chargers in early 2023,” the spokesperson explained. “After laying the groundwork to set up the NEVI and Charging and Fueling Infrastructure (CFI) programs, states and localities are now in the driver’s seat and all states are moving forward on implementing their federal EV charging funding. We are seeing a ramp up of infrastructure from federal dollars as the federal government passes money to state governments and state governments pass money to local governments and the private sector.” 

For high-speed chargers along highway corridors, it takes 12 to 18 months, on average, to build, commission and energize a station, the spokesperson noted. Federal funding will help speed up the process.

“The growing number of chargers shows progress, but the true measure of success is the convenience and reliability of the network, along with the coverage and capacity of stations to ensure every EV driver gets the charge they need when they need it,” the spokesperson said. “The NEVI and CFI programs are designed to fill in gaps unmet by private investment and ensure reliable coverage along travel corridors and within communities so that rural and urban residents alike can have the choice to drive electric. We are closing gaps fast.”

When Biden took office, only 38% of the most heavily trafficked corridors had fast chargers at least every 50 miles, the spokesperson explained. Now, families can travel 57% of the most heavily trafficked corridors and expect a fast charger at least every 50 miles. By the end of next year, the spokesperson expects 70% of those corridors to be covered.  

Currently, 80% of charging happens at home. For the other 20%, according to the spokesperson, “We are building a robust network of Level 2 charging close to home and at key destinations. For longer trips, this means making sure a network of fast charging is available along highway corridors.”

In the past year EV sales have slowed amid concerns among consumers about recharging as investors wait patiently to see profits.

The Federal Highway Administration released final standards for EV charging infrastructure funded by the NEVI program. These standards aim to create a nationwide, reliable network, support U.S. leadership in EV adoption, and generate skilled jobs by ensuring transparency and equity in the charging infrastructure.

The post Federal Funds Boost EV Charging Infrastructure, but Scaling Production Faces Hurdles appeared first on PYMNTS.com.

Uber, one of the platform economy’s original giants, announced Thursday (Aug. 29) that is making a strategic investment in autonomous driving software provider Wayve, agreeing to put self-driving vehicles powered by Wayve’s software on the Uber platform in multiple markets around the world — at a date to be determined. Observers are wondering whether robotaxis represent the tip of autonomous and self-driving innovation.

“Wayve’s advanced embodied AI [artificial intelligence] approach holds a ton of promise as we work towards a world where modern vehicles are shared, electric and autonomous,” Uber CEO Dara Khosrowshahi said.

Still, Uber and Wayve are far from the only companies pushing ahead with robotaxi initiatives. As recently as Tuesday (Aug. 27), Google-owned Waymo began offering 24/7 robotaxi service at the Phoenix Sky Harbor International Airport.

And it’s all happening as Tesla is planning, at least according to the firm’s latest timeline, to launch its own robotaxi in just a few weeks, this October. Of course, Tesla CEO Elon Musk had earlier predicted in 2019 that Tesla would launch a robotaxi by 2020.

These companies have poured billions into developing self-driving vehicle technologies, each vying for a piece of what they believe will be a lucrative market. But a critical question arises: Are robotaxis truly the future of self-driving cars, or is the promise of fully autonomous transportation still more hype than reality?

Read more: Google’s $5 Billion Bet on the Bumpy Road to Self-Driving Cars

Robotaxis and the Future of Autonomy

Autonomous vehicles (AVs) have been heralded as a transformation for the transportation industry, promising safer roads, reduced congestion, and enhanced mobility for all. Central to this vision is robotaxis — self-driving vehicles that operate as ride-hailing services.

The robotaxi embodies the ideal of fully autonomous vehicles operating in a shared, on-demand economy. Theoretically, these vehicles could revolutionize urban transportation by offering a convenient, cost-effective alternative to car ownership.

Robotaxis are also commonly seen as a solution to the “first-mile/last-mile” problem in public transportation, providing a link between mass transit hubs and final destinations. This could lead to increased public transit use, reduced dependence on personal vehicles, and a more sustainable urban environment.

Despite the optimism surrounding robotaxis, the road to full autonomy has been anything but smooth. The development of self-driving technology is a complex and costly endeavor, requiring advancements in artificial intelligence, sensor technology, and vehicle-to-everything (V2X) communication. While companies like Waymo have achieved milestones — such as launching a fully autonomous ride-hailing service in select areas — these services are still limited in scope and geography.

Underscoring the challenges, Hyundai-backed self-driving car startup Motional announced in May that it was delaying its driverless taxi fleet, explaining that “large-scale deployment of AVs remains a goal for the future, not the present.”

Read also: From Factories to the Fast Lane, Unpacking Autonomy’s Potential

Where Payments Play in Robotaxis

For robotaxis to be widely adopted, the payment process must be integrated into the ride-hailing experience. Users expect a frictionless, cashless payment system, similar to the embedded experience they enjoy across with current ride-hailing platforms.

With the absence of a human driver, robotaxis might need to incorporate autonomous transaction systems for additional services, such as in-ride purchases (e.g., snacks, entertainment, Wi-Fi). The vehicle itself could act as a point-of-sale terminal, processing transactions automatically.

“It’s a new market. We do not have transactions right now inside cars. None of us are familiar with what it would even mean. Therefore, when we talk about launching a new category like in-vehicle payments, we have to make it as convenient as our existing payment methods,” Evgeny Klochikhin, founder and CEO at Sheeva.AI, for the “AI Effect” series.

And payments could play a vital role in the business-to-business (B2B) aspect of robotaxis, particularly in managing fleet operations. This includes payments for maintenance services, fuel or energy (in the case of electric vehicles), and other logistical expenses. Automated payment systems that handle these transactions efficiently are critical to keeping the fleet operational and cost-effective.

Ultimately, payments in robotaxis aren’t just about the ride itself. The data generated by these vehicles — such as user preferences, travel patterns, and in-vehicle purchases — can be monetized. Companies might develop new revenue streams by selling anonymized data to third parties or using it to offer targeted services and advertising, all of which require a robust payment infrastructure.

The post Can Robotaxis Accelerate the Future of Automated Driving? appeared first on PYMNTS.com.

As The Wall Street Journal (WSJ) reported Sunday (July 28), pressures on car company profits only add to the challenge of embracing electric vehicles (EVs), with several major automakers recently releasing earnings that missed market expectations.

Among the issues: warranty expenses, overstocked vehicle inventory, and problems with overseas operations. On top of that, the report said, investors are worried that the robust pricing power car companies had during the pandemic is waning. 

“The results of our competitors are not demonstrating that price pressure is going to vanish,” said Carlos Tavares, chief executive of Stellantis.

The report also noted that Wall Street’s enthusiasm for car companies’ connected car/EV ambitions have faded as well, as demand for electric cars hasn’t taken off as much as expected.

“The overarching feeling for the auto industry is that the good times can’t last,” said Martin French, managing director at auto consulting firm Berylls Strategy Advisors.

In one example of the way carmakers are putting their EV ambitions on hold, Ford announced last week a revised strategy for its Oakville Assembly plant in Canada. That facility was initially designed for EV production, and will now focus on manufacturing larger gasoline-powered versions of Ford’s popular F-Series pickup trucks.

As PYMNTS noted, this marks a shift from Ford’s original intention to launch three-row electric SUVs at Oakville in 2027, a delay attributed to slower-than-expected growth in EV demand.

And as that report asked, where do developments like these leave the future of EV sales? Jennifer Weiss, co-director, NC Clean Energy Fund, said that educating the public about the benefits of EVs is critical to making them a serious consideration for consumers.

“We have a huge hurdle right now getting people to test drive and trying things out and realizing they can do what they do on a daily basis with an electric vehicle,” she said.

“Dealerships right now don’t have a lot of electric vehicles on the lots. It’s the chicken and the egg. Until we see a lot more of the electric vehicles actually on the lots so people can test drive them and compare them to a traditional fuel vehicle, I think we have a little bit more of an uphill climb.”

The post Automakers Face Roadblocks in Switching to Electric Vehicles appeared first on PYMNTS.com.

This move follows a successful limited launch of the platform in January, the company said in a Friday (July 26) press release.

The company also said Friday that it has closed on additional funding, bringing its total amount of funding raised externally to $12 million.

“Our vision at Curbee is to change car care for good,” Denise Leleux, CEO of Curbee, said in the release. “The dealers who have been with us since the beginning of the year are reporting immediate success, to the extent that our investors have injected more funds, allowing us to scale to serve any dealer nationwide.”

The Curbee platform enables established dealerships to add a mobile service business to their existing operation, according to the release. It offers auto dealers an end-to-end mobile service solution that can integrate into existing dealer management software.

The white-labeled mobile service experience offered by Curbee is designed to facilitate easy access for both dealership employees and customers, the release said. It features artificial intelligence (AI)-powered scheduling, predictive maintenance analytics, personalized customer communication tools and direct access to technician training and education programs.

Curbee built the platform based on its own experience running a mobile service operation, per the release. The company did so for three years, completing 20,000 visits across 9,000 consumer vehicles and 1,100 fleet and partner vehicles.

“At Curbee, our goals are aligned with those of our customer dealers: empowering them to offer excellent customer satisfaction, maximize revenue and sustain profitability by offering a service today’s vehicle owners demand,” Leleux said in the release. “Curbee is focused on empowering dealerships to succeed in today’s rapidly evolving automotive landscape.”

Consumers and fleets alike are increasingly calling on mobile service providers that enable them to have work done on their vehicles at their location, at the time that works best for them, Wrench CEO Ed Petersen told PYMNTS in an interview posted in June 2022.

“We talk to a lot of people, and whether it’s the OEMs, the big independent repair shops or what have you, they know this is where the world is heading,” Petersen said.

The post Curbee Launches Platform to Help Car Dealerships Add Mobile Service appeared first on PYMNTS.com.

In the second quarter GM reported a 40% year-over-year growth in U.S. EV deliveries, outpacing the industry’s 11% increase. The Cadillac Lyriq emerged as the top luxury EV in 22 states. GM is scaling production of models like the Chevrolet Equinox EV and preparing for upcoming launches such as the GMC Sierra EV and Cadillac Optiq to drive future growth. Despite market adjustments, GM remains focused on sustainable growth and profitability in the EV sector, supported by strategic partnerships and advancements in battery technology.

Next year, Barra noted, GM will follow with the Cadillac Celestiq, adding the company would then have a “beautifully designed EV” in every global luxury SUV segment.

“We’re going to focus on winning new customers with these nameplates, as well as with the next generation Chevrolet Bolt EV because they represent the largest growth opportunities for us,” Barra said during the company’s Q2 earnings call on July 23.

“But we’ve also made adjustments to ensure we have a balanced approach as the market develops. This includes deferring Buick’s first EV which had been planned for 2024. As we’re expanding choice, other barriers to EV adoption like public charging access are also improving.”

GM’s EV portfolio is expanding successfully and capturing greater market share, Barra noted, adding, “these initial outcomes are promising, as disciplined volume expansion is crucial for achieving positive variable profits from our EV portfolio by the fourth quarter, while also bolstering our strong ICE (internal combustion engine) margins.”

Early EV sales are “mostly incremental,” Barra added, as 54% of customers are new to GM. “We’re working to increase our conquest rate by raising awareness and launching new models. Our best-selling EV so far this year is the Cadillac Lyriq and it is now the market-leading luxury EV in 22 states including Florida, Texas and Michigan.”

The GMC Hummer EV and the Chevrolet Blazer EV are also building momentum, she said. To unleash the next cycle of EV growth, “we’re scaling production of the Chevrolet Equinox EV with its unique combination of performance, technology, range and affordability. We delivered our first 1,000 units late in the second quarter and the reaction from customers, dealers and the media is very strong.”

In fact, according to Barra, one product reviewer said, “Chevy seems positioned to grab a piece of the pie that no one else has quite grabbed onto yet, and we think that is spot on.”

GM is working to finalize commercial agreements with Tesla to give its customers access to their charging network. “The Ionna fast charging venture we joined is expected to bring its first chargers online before the end of the year, and customers are telling us the drive-thru plazas we’re rolling out with Pilot company are the best public charging experience out there.”

Given GM’s promising EV sales growth and trajectory, Barra said GM is “committed to growing responsibly and profitably in any demand environment. Over the next few years, third-party forecasters now see the EV market growing steadily, but more slowly than it did over the last few years.”

As a result, she said GM is adjusting its spending plans to make sure “we’re capital efficient and moving in lockstep with customers. For example, our Altium cells joint venture continues to ramp up domestic battery cell supply this year, which is helping drive profit improvement in our EV portfolio.”

Moving forward, Barra said, “We’re going to bring additional capacity online in a measured cadence. This will enable us to better optimize our battery chemistry and form factors to meet our customers’ needs on cost and range.”

GM also plans to reopen the Orion assembly as a battery electric truck plant in mid-2026, Barra noted, adding, “We’re confident that we can meet customer demand for standout EV trucks in the interim by leveraging the production capability and flexibility we have in factory zero. We will also continue to take advantage of the flexibility we have to mix production between ICE and EV at key plants.”

The post GM Eyes ‘Winning New Customers’ as EV Sales Soar appeared first on PYMNTS.com.

The investigation is to “ensure the airline is following the law and taking care of its passengers during continued widespread disruptions,” Department of Transportation (DOT) Secretary Pete Buttigieg wrote on X (formerly Twitter) Tuesday (July 23) morning.

“All airline passengers have the right to be treated fairly, and I will make sure that right is upheld,” he continued.

.@USDOT has opened an investigation into Delta Air Lines to ensure the airline is following the law and taking care of its passengers during continued widespread disruptions.

All airline passengers have the right to be treated fairly, and I will make sure that right is upheld.

— Secretary Pete Buttigieg (@SecretaryPete) July 23, 2024

The announcement comes as Delta continues to deal with the fallout of what has been called “the worst IT outage in history,” triggered when a software update by security company CrowdStrike took down Microsoft’s systems.

“Banks, airlines, hospitals, fast food chains, retailers, even the Paris Olympics, and nearly any and every business relying on a Microsoft Windows computer system found themselves grappling with a massive disruption that brought critical services to a standstill,” PYMNTS wrote last week.

According to a report by Bloomberg News, Delta said it is “fully cooperating” with the DOT investigation and remains “entirely focused” on restoring operations. More than half of its systems rely on Windows, the report said.

Bloomberg also cited data from tracking service FlightAware showing that Delta had canceled 440 daily flights as of mid-morning Tuesday, or 12% of its normal schedule, bringing its total number of canceled flights to around 5,400. Other major airlines — American, United, and Southwest — had under 100 canceled flights the same day.

Delta CEO Ed Bastian had told several news media outlets on Monday (July 22) that it would take “another couple of days” to get all the airline’s operations running smoothly.

As PYMNTS wrote last week, the CrowdStrike incident shines a spotlight on the pervasive reliance on access to IT infrastructure in today’s digital economy and highlights fact that — as within the digital payments and commerce landscape — when systems go down, organizations need to make sure they have an analog backup in place.

“It’s really a core lesson in the ability to not have a single point of failure,” said CompoSecure/Arculus Chief Product and Innovation Officer Adam Lowe. “If you look at the systems and look at the way the tool affected the problem, it did not affect Linux servers. It did not affect Mac systems. It only affected Windows. That’s a challenge and it’s a lesson in picking alternatives to critical systems.”

The post DOT Probes Delta’s Handling of CrowdStrike Outage appeared first on PYMNTS.com.

Ford’s decision follows second-quarter EV sales in the U.S. Ford led the pack among traditional automakers, with EV sales soaring 61% year over year to 23,957 units. This helped propel the company’s overall sales growth for the quarter and solidified its position as the second-largest EV seller in the U.S., ahead of General Motors.

The decision to focus on larger, gasoline-powered versions of its F-Series pickups in Canada marks a shift from Ford’s initial plan to launch three-row electric SUVs at Oakville in 2027, a delay attributed to slower-than-expected growth in electric vehicle demand, as stated in April. Despite this adjustment, Ford reiterated its commitment to the electric vehicle segment without specifying the new production location.

The global slowdown in electric vehicle demand has prompted industry leaders like Tesla and BYD to slash prices to stimulate sales, while traditional automakers such as Ford and GM recalibrate their electric vehicle ambitions. Ford reported substantial losses in its EV business in recent years, projecting further financial challenges in 2024, reinforcing its commitment to launching profitable next-generation EVs.

Ford has increasingly focused on hybrid vehicle production to appeal to consumers not yet ready to fully embrace electric vehicles. The company aims to quadruple hybrid production in the near term, buoyed by robust demand for its profitable F-150 trucks, produced across assembly plants in Kentucky, Ohio, and now Oakville.

Amid financial pressures in its EV sector, Ford’s commercial business has emerged as a profit center, with the company banking on software-related services to drive future profitability. The division achieved operating profit margins nearing 17% in the last quarter, underscoring its strategic importance within Ford’s broader portfolio.

Some key EV developments this month include:

• Online car marketplace Carvana unveiled new tools for a smoother electric vehicle buying and selling experience.
• Starbucks announced plans to partner with Mercedes-Benz High-Power Charging to install EV chargers at more than 100 of its stores across the U.S. This initiative kicks off along Interstate 5, a key travel route on the West Coast.
• In a bid to attract high-income EV owners, shopping centers worldwide are embracing EV charging stations. The trend gained momentum earlier this month when BP Pulse, BP’s EV charging unit, announced a partnership with Simon Property Group, the U.S.’s largest mall developer.
• The federal government will grant car and auto parts factories in eight states $1.7 billion to begin producing electric vehicles and other clean energy technology, the Biden administration announced July 11.

So, where does that leave the trajectory of EV sales?

According to Jennifer Weiss, co-director, NC Clean Energy Fund, educating the public about the benefits of EVs is crucial to making them a serious consideration for consumers.

“We have a huge hurdle right now getting people to test drive and trying things out and realizing they can do what they do on a daily basis with an electric vehicle,” she noted.

“Dealerships right now don’t have a lot of electric vehicles on the lots. It’s the chicken and the egg. Until we see a lot more of the electric vehicles actually on the lots so people can test drive them and compare them to a traditional fuel vehicle, I think we have a little bit more of an uphill climb.”

The post EV Ambitions on Hold: Ford Delays Canadian Electric SUV Production appeared first on PYMNTS.com.

Fleetio has added two new integrations to its fleet maintenance management software.

These integrations with FuelCloud and Fill-Rite will help businesses with on-site bulk tank fueling streamline fuel management, gain insights and optimize fleet fueling operations, the company said in a Tuesday (July 16) press release.

“Adding these capabilities to our growing suite of solutions helps fleets control costs and minimize exposure to market fluctuations,” Jake Martino, vice president, partnerships at Fleetio, said in the release.

FuelCloud provides on-site fuel management solutions, while Fill-Rite offers on-site fuel dispensing systems, according to the release. The integrations come at no additional charge to the companies’ mutual customers.

With these integrations, transactions automatically flow into Fleetio, ensuring fuel data stays up to date and eliminating the process of managing import templates and spreadsheets, the release said.

In addition, the integrations provide a comprehensive view of fuel expenses by automatically capturing site and tank information for each transaction, per the release.

The integrations also provide insights into fuel consumption, clarify how fuel contributes to overall operating costs and prevent fuel theft by sending alerts when discrepancies are detected — such as when the report fuel volume exceeds an asset’s tank capacity, the release said.

“Fleetio is committed to equipping fleet operators with the tools and insights they need to succeed,” the company said in the release. “This addition marks a significant step for streamlined on-site fuel management.”

Fleet management is inching toward becoming a beacon of connectivity, PYMNTS reported in February.

On July 2, FleetUp and RoadFlex said they have integrated their solutions to automate fleet expense management and fuel management, from data collection to reporting.

By combining FleetUp’s fleet and asset management solution and RoadFlex’s fleet expense management and fuel card solutions, the companies aim to ensure fleet cards are used only by the appropriate employees and vehicles, block and flag suspicious transactions, and alert managers if the wrong fuel type is purchased for a vehicle.

In June, Motive began offering its card customers its Missed Savings solution that uses shared fleet and spend management data to automatically determine where fuel spending is being wasted.

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First, the sales update. As the major car companies report their second-quarter 2024 sales, the results for overall electric vehicle (EV) sales are mixed with some very bright spots to report. Ford’s EV sales surged 61% year over year in Q2, with 23,957 units sold, leading to the automaker’s overall growth for the quarter. This performance allowed Ford to maintain its position as the second-largest EV seller in the U.S., ahead of GM but still trailing Tesla. The F-150 Lightning saw a 77% sales increase, remaining the top-selling electric truck. The Mustang Mach-E and E-Transit also experienced significant growth, up 46% and 96% respectively. In the first half of 2024, Ford sold 44,180 EVs, a 72% increase from last year. In a recent interview, Ford Motor Company CEO Jim Farley emphasized the company’s strategy to introduce smaller, more affordable EVs to compete globally while still expanding the overall audience.

“You have to make a radical change as an [automaker] to get to a profitable EV. The first thing we have to do is really put all of our capital toward smaller, more affordable EVs,” Farley told CNBC recently. “That’s the duty cycle that we’ve now found that really matches. These big, huge, enormous EVs, they’re never going to make money. The battery is $50,000. … The batteries will never be affordable.”

Tesla delivered 443,956 electric vehicles globally in Q2, exceeding Wall Street’s estimate of 439,302. Despite this, deliveries fell 4.8% year-over-year, following an 8.5% decline in Q1. This marks the longest streak of quarterly delivery declines since 2012. Tesla’s production also decreased by 14% to 410,831 units, influenced by a factory shutdown in Germany and shipment disruptions. However, Tesla’s expected focus on affordable cars and its energy storage segment could drive future growth.

GM reported selling 21,930 electric vehicles in the second quarter of 2024, a 40% increase from the same period in 2023, driven by the Cadillac Lyriq and Chevrolet Blazer EVs. This total includes 490 electric delivery trucks from its BrightDrop subsidiary. In the first half of 2024, GM’s EV sales reached 38,355, up 6% from 36,322 units in the first half of 2023, with 746 units sold at BrightDrop. All EVs sold this year utilize GM’s new Ultium propulsion system, replacing the previous Bolt and Bolt EUV models. GM plans to reintroduce the Bolt with Ultium technology in 2025.

Payment Issues

Part of the consumer apprehension about buying more EVs lands in the lap of the ability to access EV charging stations and then the ability to pay for that service. JD Power released a report in May that reinforce those concerns. “As the industry inches toward mass consumer adoption, the main roadblocks to getting consumers behind the wheel of an EV are the continued shortage of affordable vehicles, charging concerns and a lack of knowledge regarding the EV ownership proposition, including incentives,” said Stewart Stropp, executive director of EV intelligence at J.D. Power.

The ability to pay at the EV charging station has been addressed by several payment companies. For example, Visa advises its merchants that the success of a charging station often hinges on the ease of payment for customers. It recommends installing Visa-accepting terminals and offering contactless payment options can enhance the experience, while digital payment solutions, such as mobile app payments, should be complemented with tap-to-pay options for accessibility. Using the correct merchant code (MCC 5552) is crucial for bank rewards and reducing service issues. Clear checkout processes, whether estimating charges or using set amounts, Visa suggests, should be communicated to customers, with additional compliance for European merchants regarding customer authentication.

The payment issue has also been addressed in a recent U.S. Department of Energy report. “Best Practices for Payment Systems at Public Electric Vehicle Charging Stations,” authored by Kristi Moriarty and John Smart, addresses significant challenges in the payment processes at public EV charging stations. Key issues include the reliability of network connections, the robustness of hardware, and the integration of payment systems. The report emphasizes the necessity of strong network connections, suggesting the use of external antennas and redundant SIM cards to enhance connectivity. It also highlights the importance of durable, weather-resistant card readers and recommends regular maintenance to ensure functionality.

A crucial point from the report states, “Failure to accept and process payment is a cause of public electric vehicle (EV) charging session failures,” underscoring the need for reliable payment solutions to avoid service disruptions. The report also recommends standardized procedures for user interfaces to reduce customer confusion and improve overall user experience.

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