Fiat's Electric Gamble with the 500E; A Space Sunshade for Climate Change; Shifting Gears in Certified Pre-Owned Cars

Can Fiat's solo electric dance in North America with the 500E lead the charge, or will it trip over market realities? This episode puts the spotlight on Fiat's bold decision to play the North American market with just one electric minicar, the 500E. We raise hard questions about the car's high price tag and the feasibility of Fiat's fashion-inspired 'drops' strategy. With the automaker's shaky sales history in the U.S., we ponder the risk for dealerships and Fiat alike, challenging the manufacturer's chief claims and dissecting the economic practicality of betting big on a single model.

As we shift from the pavement to the cosmos, prepare to have your mind expanded with the audacious concept of a space sunshade to combat climate change. Reminiscent of the innovative spirit that gave rise to the Chrysler LH cars, this episode navigates the logistical hurdles and mind-boggling scope of deploying a colossal shade in space. We consider the daring long-term commitment required to manage space debris and the potential cooling effects on our warming planet. It's a conversation that reaches for the stars while firmly grounded in the urgent need for climate action.

Finally, we turn our attention back to Earth and the changing dynamics of certified pre-owned vehicle programs. Spotlighting Toyota's recent inclusion of older, high-mileage cars in their CPO program, we examine the benefits these vehicles offer consumers, such as thorough inspections and extended warranties. This move by Toyota could reshape the auto industry landscape, providing buyers with affordable, quality options without the new-car sticker shock. We explore how such shifts introduce a new era of value and reliability, presenting consumers with protected choices that were once deemed too aged or high-mileage to consider. Join us for an episode that revs up the conversation on the electric vehicle market, climate intervention, and the evolution of car buying.

Transcript

Speaker 1: 0:15

it's time for the tech mobility show with ken chester. Ken is a veteran journalist who doesn't always color between the lines, so here he, the host with the electrified personality Ken Chester.

Speaker 2: 0:28

Real facts, real opinions, real talk. It's the Tech Mobility Show, America's program for news, information and perspective at the intersection of mobility and technology. I'm Ken Chester, and let's get started On. The docket Is a giant parasol. The answer to climate change? Would you buy a certified, pre-owned car with 125,000 miles on the odometer? And then, finally, why all coal power plants are sticking around for now. To join the conversation, to suggest an idea for a future conversation, or ask a question or even share an opinion, call or text the TechMobility hotline, that number, 872-222-9793, or you can email the show. Talk at techmobilityshow, and that is talk at techmobilityshow. And if you are joining us for the first time, I want to invite you also to check out our social media. We are all over the place in social media, doesn't matter X, facebook, tiktok, youtube. We be there, check us out. That's the Tech Mobility Show, pretty much in any of those places, with the exception, though, of Twitter. There is Tech Mobility Pod. But check us out and be sure to like and follow us wherever you enjoy social media. We'd love to hear from you, from the Tech Mobility News Desk.

Speaker 2: 2:04

I'm looking at this article and I'm having difficulty because I don't believe the headline. Let me share it with you Electric Fiat 500E drawing dealer interest ahead of launch. This is from a trade publication. Automotive News had a launch. This is from a trade publication, automotive News, and it says the brand's buzz building strategy has prompted some dealers to ask about adding the single vehicle line. According to Fiat North America chief, amir Ahmad that's what he said and, I'm sorry, brother, I don't believe you. Here's why as of the end of 2023, as of the end of the model year, fiat dropped the one vehicle they were still selling, which was kind of their take on a small kind of SUV-ish crossover called the 500X. That left Fiat dealers with nothing to sell new, other than the inventory. Maybe they already had, which was sparse, and maybe some used vehicles, service parts, whatever. Needless to say, being a standalone Fiat dealer in the United States of America is not a good idea. So many are not.

Speaker 2: 3:24

But the question I have up till Fiat joined forces with the Europeans and became Stellantis, the Fiat 500E in previous generations was always considered an afterthought. Now they're getting excited. Always considered an afterthought, now they're getting excited. My point is Fiat, since in the last 14 years they've been here, haven't really sold in any meaningful volume, and that was even when they had a choice of the 500 and the 500 convertible. They had an extended 500L, then they had the 500X and they were trying to sell that all. At the same time. They even went as far as rebranding a Mazda Miata and I believe they called it the 124. It did not do well, and everybody loves the Miata, except when you put a Fiat badge on it. Not so much you put a fiat badge on it, not so much. The thing that I'm having a tough time with is, according to the automaker themselves, the electric minicar will be fiat's only offering, and they've been working to generate buzz for the 500e through a limited release strategy. It calls, and I quote, drops borrowing approach from the fashion world.

Speaker 2: 4:47

Here's my point the auto business is a numbers game period. It's a numbers game. It is high capital investment. You need a certain number of vehicles to make your investment worthwhile, and that's either the factory or the dealers or whomever. Because even if you're selling just one model, you have to have people who are qualified to fix it. You have to stock a certain amount of parts. You have to be able to guarantee a certain amount of service. Is that enough to even justify an incremental investment, saying that you are selling other things, new and used, even maybe within the Solantis family.

Speaker 2: 5:28

But is it worth the money to invest if you're not already a fiat dealer trying to make back your investment? Is this even worth it? The article says it is. I say it isn't. You don't believe me. Okay, when is the last time you saw any model built in the last 10 years of a Fiat 500? Think I'll wait. Yeah, that's exactly my point. On top of that, the sticker price for this car $34,095. Do you know what I could get for that For that kind of money? A lot more vehicle and a lot more value, pretty much anywhere else. So I'm really not sure when Fiat is getting this from. There may be pockets, maybe like Southern California or something. Maybe Miami or South Beach getting this from. There may be pockets, maybe like Southern California or something, maybe Miami or South Beach, but in terms of a national strategy or a North American strategy to sell one car and it's an electric, I don't know. I don't know Now. According to them, they did say we've had multiple handfuls of dealers in California reach out to us looking to add lines of Fiat into their dealerships. I'm going to twist that for you, southern California maybe. But how many cars can you sell? And can you sell enough cars to justify Fiat making the investment to build it, fiat making the investment to build it? And can you sell enough cars to justify the investment you're going to make to carry the cars, train the mechanics, have the parts, prepare the service, have all of that work? The numbers just don't work for me. So I'm going to be curious. But I wanted to share that because I looked at the title and I'm like yeah, no, no, uh-uh, and I've driven. I have driven a couple of the Fiat 500s. It's a cute little car and if it was going for $12,000 to $15,000 and was getting 40 miles to the gallon, it might be worth it. Not sure that is.

Speaker 2: 7:37

While I'm on a roll, let's talk about Tesla for a minute. Talk about Tesla for a minute, specifically the Tesla Roadster. For those of you that may not realize, when Tesla was launched in the early part of this century, it was launched with one model and that was a two-door Roadster. That is what launched the company. Most people came to know Tesla and years later, with the launch of the upscale Model S sedan and the Model X crossover EV. I remember seeing my first Tesla Model S 10 years ago actually 10 years ago in California. So I went for the first time. Little did I know the thing had only been in production a few years. I didn't get to drive a Tesla actually until last year. And you know I'm going to. I'm going to hold my fire because I did a review of the Tesla Model X. You can check out my podcast and find out what I had to say about it. I think I'm going to not say anything and let you go check that out and then you'll understand why. Check that out and then you'll understand why.

Speaker 2: 8:47

Remember, a couple of weeks ago I was talking about Japanese I'm sorry, chinese EV manufacturer BYD, and I was talking about them for a couple of reasons One, because Warren Buffett, who invested in them years ago. Two, because they're becoming a player of size in their own right and in some markets it's outselling Tesla. And three, because last week their upscale brand released a $233,000 EV sports performance car and we talked about that and I explained why a mainstream manufacturer would do that. We call those halo cars. They are a vehicle to generate buzz for the brand, even though most people may never ever be able to own one, let alone see one. It gets excitement. Number one, it shows the public what they are capable of from a technological standpoint. And number two, it gives you something to aspire to, because, honestly, seeing pictures of it, it was really neat, cool and it looked great.

Speaker 2: 9:58

Tesla is finally bringing their Roadster the latest one to to market and he says he plans to start shipping this next year. This is a quote. Remember this quote. The car will be capable of accelerating at 60 miles an hour less than a second, which is the least interesting part. Uh, why a second? Why, I don't know why. He also says there'll never be another car like this. Just remember, the original Roadster was released in 2008 and he's been promising this vehicle now For seven years. I have no fear that BYD's announcement Hastens this one, because he hates to be upstaged. A giant parasol in space no, really, it could be a thing. That's next. You are listening to the Tech Mobility Show.

Speaker 3: 10:53

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Speaker 2: 11:24

Social media is the main place to be these days, and we are no exception. I'm Ken Chester of the Tech Mobility Show. If you enjoy my program, then you will also enjoy my weekly Facebook videos, from my latest vehicle reviews to timely commentary of a variety of mobility and technology-related topics. These short features are designed to inform and delight. You Be sure to watch, like and follow us on Facebook. You can find us by typing the Tech Mobility Show in the search bar. Be sure to subscribe to our Facebook page. Social media is the place to be these days, and we're no exception. I'm Ken Chester of the Tech Mobility Show. If you enjoy my program, then you will also enjoy my weekly Instagram videos, from the latest vehicle reviews to timely commentary on a variety of mobility and technology-related topics. These short features are designed to inform and delight. You Be sure to watch, like and follow us on Instagram. You can find us by typing the Tech Mobility Show in the search bar.

Speaker 2: 12:21

For those of you that listen to podcasts, we have just the one for you. Hi, I'm Ken Chester. Tech Mobility Topics is a podcast where I upload topic-specific videos each week. Shorter than a full show. These bite-sized programs are just the thing, particularly if you're interested in a particular topic covered on the weekly radio show, from Apple Podcasts to iHeartRadio and many podcast platforms in between, we got you covered. Just enter Tech Mobility Topics in the search bar, wherever you listen to podcasts.

Speaker 4: 12:54

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Speaker 2: 13:24

I would have loved to have leased the New Yorker. For those of you that may not remember, those cars were kind of a revolution for Chrysler back in the early to mid-1990s. They were called the LH cars and it was unlike anything Chrysler had ever made before. It was such a departure from what Chrysler was selling up to that time. They actually had a program to retrain everybody at the dealership. They said literally from the owner all the way down to the janitor, and they retrained everybody how to sell, how to greet customers, because it drew a new type of customer into the dealership. And I can tell you those LHs were big, comfortable and they were fast. Oh, they were wonderful cars. I miss them. I would love a New Yorker because they only made the New Yorker, though, for two and a half years, the first two and a half years into that production run and then they stopped making that one. But it was an amazing car.

Speaker 2: 14:24

Anyway, a recent article in the New York Times starts with the following statement it's come to this. Those are the first four words, and let me tell you, anytime somebody starts with that it is never good, with Earth at its hottest point in recorded history and humans failing to address the situation with the level of seriousness required. A small but growing number of astronomers and physicists are proposing something radical. This is topic A, this one you might. I would not blame you if you thought that I was reading from science fiction, but hear me out. They're proposing the equivalent of a giant beach umbrella floating in outer space in order to blunt the warming of the earth by the sun. They estimate that they'd only need to cover 2% of the sun's surface coming towards the earth in order to get temperatures back down by 1.5 degrees Celsius. Why is that number magical? That number is magical not just because of the Paris Peace Accord, but 1.5 degrees Celsius is the difference between sustainability on Earth and global warming or climate change getting beyond our grasp to be able to handle. Once it hits that and runs away and goes from there, it's over Extreme weather, more of it, more often and more extreme.

Speaker 2: 16:02

This is their concept. The idea is to create a huge sunshade and send it to a faraway point between the Earth and the sun to block a small but crucial amount of solar radiation enough to counter global warming. Scientists have calculated that if just shy of 2% of the sun's radiation is blocked, it'd be enough to cool the planet by 1.5 degrees Celsius or 2.7 degrees Fahrenheit and keep the Earth within manageable climate boundaries. Before I even go any further, two words space junk. We got all this stuff up there. We reported on that a few weeks back and we're going to put more stuff in the air. Oh, lovely. And even if they are able to deploy this thing, how are you going to keep all the space junk depending on where it is in orbit, from damaging it? Just questions. This idea has been at the outer fringes of conversations about climate solutions for years, they said. But as the climate crisis worsens, interest in sun shields have been gaining momentum, with more researchers offering up variations. There's even a foundation dedicated to promoting solar shields.

Speaker 2: 17:14

Why is this a thing? Let me drop an inconvenient truth on you right here. If we as a planet could go to zero in greenhouse emissions today, right now, from this day forward, we'd still have enough greenhouse emissions in the air to cause this problem. Anyhow, we've reported over the last few years about attempts for carbon sequestering removing carbon dioxide from the air, putting it in the ground, doing a whole bunch of things with it. The problem is, they're talking, at best, millions of pounds, and we're talking about what we put in the air every year in the billions of pounds. So even if everything we were currently doing right now was working, it's still not enough. Going to zero is not enough at this point. We have also said on this program that it would take, if we went to zero right now, 20 years of intestinal fortitude to stay the course, in order to blunt this, if we didn't do anything else. The problem is, if we don't do it in 20 years, this becomes unmanageable, even though you may not see change for 20 years. And that's part of the problem being able to stay the course even though you don't necessarily see an improvement or a change in condition. Hence the solar shields thing.

Speaker 2: 18:46

A recent study led by the University of Utah explored scattering dust deep into space, while a team at the Massachusetts Institute of Technology is looking into creating a shield made of their words, not mine space bubbles. There was even an idea out there from an astronomer at the Institute for Astronomy at the University of Hawaii. He published a paper that suggested tethering a big solar shield to a repurposed asteroid. I've seen too many of these end-of-the-world scenes with asteroids hitting what could possibly go wrong right Now scientists say that they are ready to build a prototype shade to show the idea will work. Here's a little drawback. I mean, just let's talk logistics for a minute. To block the necessary amount of solar radiation, the shade would have to be about a million square miles For comparison's sake, roughly the size of Argentina. A shade that big would weigh two and a half million tons to have it launch into space. So the project would have to involve a series of smaller shades. So the project would have to involve a series of smaller shades and they wouldn't completely block the sun's light but rather cast a slightly diffused shade on Earth. He said and in case you think this is out there, out there, this particular fellow said his team was ready to design a prototype shade Of 100 square feet and they're looking for between 10 to 20 million dollars To fund the demonstration. And even if they're looking for between 10 to 20 million dollars to fund the demonstration, and even if they're able to get, it's still going to take up two to three years to get the thing built and get it out there.

Speaker 2: 20:26

Proponents say that a sunshade would not eliminate the need to stop burning coal, oil, gas the main drivers of climate change and even if greenhouse gas emissions from fossil fuels was immediately to drop to zero and and I just said this there's already excessive heat trapping carbon dioxide in the atmosphere. That's my point that 1.5 degrees Celsius, that's the point beyond which the chances of extreme storms, droughts, heat waves and wildfires would increase significantly, of extreme storms, droughts, heat waves and wildfires would increase significantly, and humans and other species would have to struggle more to survive. The scientists say we are already at 1.2 degrees Celsius right now. That is why they're talking this stuff. That sounds crazy, and they've been talking about this on and off, believe it or not, for almost 40 years, so this is nothing new. They're talking about getting this stuff to a place called L1, where it's a place LaGrange Point 1, 932,000 miles from Earth where the gravitational pull from the Earth and the sun cancel each other out. They want to put them there. We'll see.

Speaker 2: 21:35

One automaker is offering certified pre-owned vehicles for sale with up to 125,000 miles on the odometer. What's up with that? This is the Tech Mobility Show. Do you listen to podcasts? Seems that most people do. Hi, I'm Ken Chester, host of the Tech Mobility Show. If you've missed any of our weekly episodes on the radio. Our podcast is a great way to listen. You can find the Tech Mobility Podcast just about anywhere. You can enjoy podcasts. Be sure to follow us From Apple Podcasts, iheart Radio and many platforms in between. We are there. Just enter the Tech Mobility Podcast in the search bar. Wherever you listen to podcasts, social media, it's the place to be, and we're no exception. Hi, I'm Ken Chester, host of the Tech Mobility Show. Several times a week I post to TikTok several of the topics that I cover on my weekly radio show. It's another way to keep up on mobility technology news and information. I've built quite a library of short videos for your viewing pleasure, so be sure to watch, like and subscribe. That's the Tech Mobility Show on TikTok. Check it out.

Speaker 2: 22:50

Certified pre-owned vehicles. Almost 35-40 years ago, when Lexus came into the world, they also brought that with them and changed the game. Factory inspected used vehicles with an extended warranty from the manufacturer. Typically, it's a better deal for consumers due to the maintenance that can often be lurking in a used car that has already been done or otherwise mitigated as a result of the many-point inspection these vehicles must go through, because not every used car, even if it meets the mileage criteria, qualifies as a certified pre-owned.

Speaker 2: 23:27

As a certified pre-owned, let me ask you something. Would you buy a certified pre-owned vehicle if it had a legitimate 100,000 miles or more on the odometer? That's the question. This is topic B. What happens if you are an automaker that builds vehicles that are so well made that the average owner doesn't even have to do anything, save for maybe change wiper blades and tires and the oil? For the first 100,000 miles? They literally don't have to touch the car. How do you think the second 100,000 miles would go?

Speaker 2: 24:14

For years, toyota's always been the standard. In other words, if you had to put on a lot of miles in a short time, you want a reliable vehicle. Nine times out of 10, folks would say you need to own a Toyota, and for the most part that has been true. Toyota started their certified pre-owned program back in 1996. It was no accident that Lexus is the luxury division of Toyota who actually started this thing a few years before that, few years before that.

Speaker 2: 24:49

Toyotas today are so well made that the automaker has joined Honda, who is also boasting pretty well made cars, in offering its silver certified pre-owned program. This silver certification level will include vehicles that are up to 10 years old and have up to 125,000 miles, it will still go through a 134-point inspection. Now, that's a little less than their gold standard, which is 160 point inspection. And the cars are newer. They're younger.

Speaker 2: 25:36

But work with me for a minute. How many 10 year old cars you know of, with over a hundred thousand miles, that you would even trust, knowing that you would have to do maintenance on them? Just the fact that it's been through 134-point inspection and I'm getting at least a year's worth of factory warranty. Today I buy a car that age, that mileage, regardless of who made it. It's as is. And you check it out, buddy, you're going to need tires, brakes, chain fluids. That's the minimum. Here comes Toyota and says hey, what if I could provide you a Toyota quality ride, guarantee it for a year and get it to a price point where even you can afford it. And, by the way, we'll offer financing, new car level financing for this thing. Are you in? Think about this?

Speaker 2: 26:34

Toyota is opening up an opportunity for a lot of people who cannot afford to swing on a new Toyota, can't afford to pull the trigger on, maybe, a Toyota lease. Now they have the ability to get into a 10-year-old car with some consumer protections built in. I think it's a win-win. You're buying a car that somebody's checked out and will vouch for at least the first 12 months, 12,000 miles which, by the way, back in the day that was the warranty on new cars. Way back in the day, that's all you got on a new car. Today, now you can get that on a 10-year-old car.

Speaker 2: 27:17

What does that say about the quality of these vehicles? Now, it does differ from the gold standard ones. I mean those 160-point inspection, seven-year 100,000-mile limited warranty on top of a 12-month limited comprehensive warranty. But a 10-year-old vehicle that somebody has gone through, checked over, done all the consumables, changed the oil, changed the filters, changed the wiper blades, decent, decent tires on it, the brakes are okay.

Speaker 2: 27:54

This is the perfect environment right now, even with rising inflation and rising car prices, a 10 year old toyota is still probably a third of what it would have cost new, meaning you can get into it and have some protection from jump street. You don't have to lay out another thousand fifteen hundred the minute you buy the car because you gotta replace the tires, you gotta change the brakes, you gotta change all the fluids and the filters. If you're serious money in your pocket and they're willing to finance it for you, because usually you have no problem getting financing up to around seven years old, but a vehicle older than that. Up till recently, yeah, you were going to have really short times two years, 18 months to finance it. Now the factory the factory is going to give you better terms. You can afford the vehicle, you got some protection for the vehicle and you can own a quality vehicle at your price, roll like everybody else rolling in a Toyota. Think about that.

Speaker 2: 29:00

Honda started their expansion two years ago where they extended their pre-owned program to older vehicles. And I think this is the flip side as vehicles get better. Here is the advantage for a lot of people who up until now, really didn't have a lot of choices. Now you do and as far as I'm concerned, this is a win-win Because up until now, for that kind of vehicle at that age, you had no protection. Kind of vehicle at that age you had no protection. You know, if you were a do-it-yourselfer and you either had a good independent garage that you did business with, you'd be okay, but it was still going to cost you out of pocket. Now this is already done for you and a guarantee and 134 point inspection.

Speaker 2: 29:48

Obviously, not all these cars that are at this mileage that are Toyotas will make it into the program, but imagine the ones that do. Would it be worth a little bit more which is still a lot less for you to own one of these? And we're talking the cars, the trucks, the minivans. I think it's a brilliant idea. So you're going to end up in a 2014 Toyota and getting some of the benefits of all the new stuff on a vehicle that otherwise you might've had to buy a 15, 16, a 17 year old car back in the day. Now you can finance, own and have peace of mind with a 10 year old car that the factory says no, we're standing behind this, you are not on your own here. And that alone, that peace of mind right there is worth the premium they're going to get for these, and typically it's been.

Speaker 2: 30:41

When you go to a certified pre-owned, like the two to five years certified pre-owned, the typical programs. They said the difference in price between certified and not was about 1200 bucks. Even if it's $600 more, it'd be worth this $600 to me because I'd be spending way more than that for a vehicle that age to get it checked out, brought up to power. The tires alone would cost more than that, let alone the brakes, changing the oil, changing all the filters. All that's going to be done, it's going to be handled, it's going to be okay. I think this is a brilliant idea and I think you're going to see more of this.

Speaker 2: 31:16

The other side of well-made vehicles, from everybody putting their money where their mouth is, and the consumer will win. Absolutely, absolutely. 10 model years old, between 60,000 and 125,000 miles what a deal. And oh, did I mention roadside assistance for a year? Yep, what a deal. And oh, did I mention roadside assistance for a year? Yep. What do you do when new technology requires the use of obsolete technology? It's called Firepower Planted AI. Next, we are the Tech Mobility Show. To learn more about the Tech Mobility Show, start by visiting our website. Hi, I'm Ken Chester, host of the Tech Mobility Show. The website is a treasure trove of information about me and the show, as well as where to find it on the radio across the country. Keep up with the happenings at the Tech Mobility Show by visiting techmobilityshow. That's techmobilityshow. You can also drop us a line at talk at techmobilityshow.

Speaker 2: 32:10

Drop us a line at talk at techmobilityshow. Did you know that TechMobility has a YouTube channel? Hi, I'm Ken Chester, host of the TechMobility Show. Each week, I upload a few short videos of some of the hot topics that I cover during my weekly radio program. I've designed these videos to be informative and entertaining. It's another way to keep up on current mobility and technology news and information. Be sure to watch, like and subscribe to my channel.

Speaker 3: 32:46

That's the Tech Mobility Showbased platform that does it all. With AONmeetings, you can effortlessly communicate with clients, host virtual meetings and webinars and stay in touch with family and friends, all in one place and for one price. Here's the best part you can enjoy a 30-day free trial. It's time to simplify your life and boost your productivity. Aonmeetingscom, where innovation meets connection. Get started today and revolutionize the way.

Speaker 2: 33:12

Social media is the place to be these days, and we're no exception. I'm Ken Chester of the Tech Mobility Show. If you enjoy my program, then you will also enjoy my weekly Instagram videos, from the latest vehicle reviews to timely commentary on a variety of mobility and technology-related topics. These short features are designed to inform and delight you. Be sure to watch, like and follow us on Instagram. You can find us by typing the Tech Mobility Show in the search bar.

Speaker 2: 33:43

Just when you thought it was over for coal-fired electric power plants, here comes artificial intelligence. The challenge with AI is that it's power hungry. With the explosion of AI adoption by almost every major and minor tech outfit around the world, power companies are now scrambling to satisfy the needs of data centers and new factories in a country where the grid is already strained. This is topic C, about the other side of onshoring. Part of onshoring has occurred because of the pandemic exposing the weaknesses in global supply chains. Recent legislation passed by Congress, signed by the administration, is putting money on the table to bring back American manufacturing with a vengeance, and it is Battery plants, data centers, all sorts of power-hungry manufacturing facilities are coming back to the United States. We got one problem Our grid nationally is not uniformly up to the task. Hear what I said is not uniformly up to the task. Hear what I said. We don't have in the United States a national grid per se. We have a number of regional grids controlled by what they call independent regional operators, and there are four of them. Three of them are interconnected. Guess which one is not. Texas is its own and is not connected to the rest of the country. Hence some of the problems we talked about a few years ago when they had a coal snap down there and what it did to the grid.

Speaker 2: 35:26

If you are a power company in the United States today, you are confronted with a host of challenges. You are confronted with a host of challenges. You got the rise of EVs and you know charging is going to be an issue, but you don't know where the concentrations Are going to be great enough for you To allocate investment. You've got new factories coming on lines as economic development State, local and federal Are wooing companies to your neck of the woods To build a new plant and hire a bunch of folk. Problem is all of that money, all of that new access, new plants, new data centers. All of that requires planning If you've never worked for a utility and I have worked for a utility telephone utility back in the day, electric utility. Now they are very stayed long-term planning. They plan for tens of years in the future because they've got maintenance to do, upgrades to do and new construction to do. If you are a co-op and for those of y'all on the coast that don't know what a co-op is it is a utility owned by the people who use it and there are a lot of those out in the Midwest courtesy and rural areas, courtesy of some federal laws passed in the 1930s which made electrification of the country possible.

Speaker 2: 36:51

But here we are, as a result of them, trying to juggle investment. Where to put it? How to put it? How much to put it? They're petitioning their local utility agencies. Hey, this coal plant was scheduled to go offline, is at the end of its 40-year useful life as of this year, but we need it.

Speaker 2: 37:17

There's a flip side to that. It's a little more difficult than just saying, hey, can we keep this online? Remember the investment I talked about? They allocate investment. If they know a coal plant's got a life of 40 years, then they've allocated their investment to keep that plant up running A1 top shape and they know at the end of 40 years they'll replace it or decommission it.

Speaker 2: 37:39

When it gets to that point, it is not an easy matter of just saying, oh, we're just going to keep it running. No, there's another problem. Chances are it's going to need some investment because it was not originally planned to run past its expiration date. And we're not talking $10,000 to $20,000. Often it's $3,000,000, $4,000,000, $5,000,000 and some lead time. And if they're going to spend that kind of money, then they got to get official authority said in order to make the money back. If we're going to put $3,000,000 into this because we need it for the grid, because for all the renewables coming online, we can't keep up with it, and that's another problem of spending the money, any investment to bring the renewables into the grid.

Speaker 2: 38:25

And on top of all of that, most of your transmission facilities these are from the power plants to the substations and state to state haven't been upgraded in 50, 60 years. So there's that Interstate transmission lines. All of this is swirling together and they're trying to figure out where to put this investment. And in some cases, with these power-hungry data centers clustered together in certain counties, the power company had to say whoa, wait a minute, hold it. We need a minute before we can hook you up, particularly when and this is just in one example New Data Center comes to the utility and says we need two gigawatts of power when this plant is online and the utility went, can we get back to you? That's a lot of power, that's power plants, and in some cases they're even going to the authorities saying not only is our power needs that great, but we need to build new plants. Even in addition to the renewable energy that we got coming online, we need to build new natural gas power plants to even have a chance at keeping up with this.

Speaker 2: 39:35

When I worked for General Telephone, they used to be a Fortune 500 telephone utility across the United States and one of their subsidiaries was the General Telephone of Florida down in Tampa. 40 years ago Tampa was growing so quickly that the $1 billion worth of investment that GTE Florida had in the ground was five years or newer $500 million they put in in the last five years. They were building subdivisions at a rate so fast it was a 30-day wait for telephone service, not because they couldn't get them there. They had to lay the plant, they had to put the plant out there, it didn't exist. Yet. We're having the same challenge now had to put the plant out there, it didn't exist. Yet we're having the same challenge now with US electricity demand. For years it's been growing at about 1% a year.

Speaker 2: 40:25

And again, all these utilities, depending on their service area, is allocating investment, determining what to do, trying to keep up with it. Determining what to do trying to keep up with it. Now, with the data centers, AI, all this new manufacturing capacity in some places it's growing double that, triple that, quadruple. That and it's struggling, doesn't mean that our utilities or our grid is inferior. It means that the demand for investment, both for maintenance and for growth, is happening faster than they can keep up with it, because it's not just flicking a switch Saying, oh, we're going to put a plan over there, okay, click, nope. Planning, transmission facilities, power facilities, maybe a new power plant, balancing the grid, all it has to happen and you don't do it in two or three months.

Speaker 2: 41:18

That's what we're dealing with, where the new is impacting the existing and, in some cases, the old, just to keep up with it, which really kind of screws around with climate change. Because how are you going to do that when the demands for all this new clean energy stuff requires energy to make it happen in the real world right now, today. Yeah, that is the environment that the power industry is in right this minute. So, yeah, it's going to be an interesting turn of events to see how this turns out and how this gets met. Hopefully we can bring some brilliant minds to fix the problem. We've come to the end of our program. Be sure to join me again right here. This has been the Tech Mobility Show.

Speaker 1: 42:04

The Tech Mobility Show is a copywritten production of Tech Mobility Productions Inc. Any rebroadcast, retransmission or any other use is prohibited without the written consent of Tech Mobility Productions Inc.

Speaker 2: 42:26

For those of you that listen to podcasts, we have just the one for you. Hi, I'm Ken Chester. Tech Mobility Topics is a podcast where I upload topic-specific videos each week, shorter than a full show. These bite-sized programs are just the thing, particularly if you're interested in a particular topic covered on the weekly radio show. From Apple Podcasts to iHeartRadio and many podcast platforms in between, we got you covered. Just enter Tech Mobility Topics in the search bar. Wherever you listen to podcasts, social media, it's the place to be, and we're no exception. Hi, I'm Ken Chester, host of the Tech Mobility Show. Several times a week, I post to TikTok several of the topics that I cover on my weekly radio show. It's another way to keep up on mobility technology news and information. I've built quite a library of short videos for your viewing pleasure, so be sure to watch, like and subscribe. That's the Tech Mobility Show on TikTok. Check it out. To learn more about the Tech Mobility Show, start by visiting our website. Hi, I'm Ken Chester, host of the Tech Mobility Show. The website is a treasure trove of information about me and the show, as well as where to find it on the radio across the country. Keep up with the happenings at the Tech Mobility Show by visiting techmobilityshow. That's techmobilityshow. You can also drop us a line at talk at techmobilityshow.

Speaker 2: 43:53

Do you listen to podcasts? Seems that most people do. Hi, I'm Ken Chester, host of the Tech Mobility Show. If you've missed any of our weekly episodes on the radio, our podcast is a great way to listen. You can find the Tech Mobility Podcast just about anywhere. You can enjoy podcasts. Be sure to follow us from Apple Podcasts, iheart Radio and many platforms in between. We are there. Just enter the Tech Mobility Podcast in the search bar, wherever you listen to podcasts.