Dyson, a renowned household appliances company established in 1991 by Sir James Dyson, has reportedly released additional details about the highly anticipated electric car project that it abandoned before it could attain large-scale production.
In a blog posted on the company’s official website, James Dyson described how the project evolved and the reason behind it shutting down.
The company put together a very exceptional team, developed world-class facilities, and made a radical car with electric technology. The company already possessed some technologies such as motors as well as batteries in its portfolio to help it effectively develop an EV. Additionally, it also solved several issues that were generally linked with electric vehicles, and together its team made massive progress and developed an electric car that was ready for commercial scale production.
However, the project was eventually shelved after one of the world’s most renowned conventional automotive firms, Volkswagen, suffered its biggest scandals yet, it was caught cheating on diesel emissions tests back in 2015.
Dyson stated that after that incident, several conventional automakers realized that electric vehicles were the best chance they had at a future. Subsequently, they started shifting efforts towards building electric vehicles. This shift, drastically reduced Dyson’s ability to compete in the automotive industry.
James Dyson further stated that electric cars are significantly more expensive to manufacture, and market players often incur heavy losses in the sale of an electric car. However, these losses don’t matter much to them because offset the losses made on electric car sales through the sale of their traditional ICE vehicles, where they make heavy profits. This strategy allows them to effectively remain competitive in a crowding market landscape.
However, that same luxury was not afforded to Dyson as it did not have the same means to offset its losses. The company quickly realized that a technology-based electric vehicle, being manufactured by a non-automotive firm was not commercially viable.