If Democrats and environmentalists thought they could save the world by pushing—actually, “imposing”—an electric vehicle revolution, then this is not a Wall Street Journal lede they want to see. “The auto industry’s push to boost sales of electric vehicles is running into a cold, hard reality: Buyers’ interest in these models is proving shallower than expected.”
Now, while “nobody came” is hyperbole, so are environmentalists’ assurances that car manufacturers could easily ramp up production and consumers would eagerly embrace the EV revolution.
Consider this prediction cited in the Detroit Free Press in November 2020. “GM CEO Mary Barra said the automaker will bring to market 30 all-electric models globally by mid-decade. GM had previously said it would bring 20 electric models to market by 2023.”
So, how’s that prediction of 20 EV models by 2023 working out? There are two: the Bolt EV and the Bolt EUV. There are several GM cars, trucks and SUVs scheduled to come out in late 2023, or 2024 and 2025. But given the company’s multiple missed deadlines, skepticism is in order.
The Journal does point out that EV sales are increasing, but at a slower pace. Inventories are backing up on car lots, so manufacturers and dealers are cutting prices, including Tesla. And that’s a problem because the Big Three are already losing money on every sale. WSJ columnist Andy Kessler writes, “Ford said it loses $32,000 for every electric car it sells. High labor costs are the culprit.” The company apparently has only two EVs: the F-150 Lightening and the Mustang Mach E.
With the United Auto Workers on strike, in part to ensure union workers are included in EV and battery manufacturing, those labor costs are likely to remain high.
But while EV sales growth is declining, hybrids—which combine a gasoline-powered engine with battery power—sales are picking up. The journal writes, “Hybrid sales in the year’s first three quarters jumped 48% over the prior-year period, according to Motor Intelligence.”
Recently, Akio Toyoda, CEO of Toyota, which makes the very popular Prius hybrid, announced the company would keep its primary focus on hybrids instead of EVs. “Battery-electric vehicles ‘are just going to take longer than the media would like us to believe,’” he said, according to Fortune, saying the company would provide consumers with several options.”
The response: “Environmentalists and shareholders have criticized Toyota for dragging its feet in embracing EVs.”
No clean deed goes unpunished.
While IPI has no problem with hybrids or EVs if that’s what consumers want, we do have a problem with the government trying to impose them on unwilling consumers. And backing up that push with billions of taxpayer dollars.
October 17, 2023