It wasn't only FoMoCo that wasted billions. 'Personnel Manager Mary' of GM has the same problem.
Former Ford CEO Mark Fields said on Tuesday that US automakers overestimated consumer demand when they started ramping up production of electric vehicles.
"Over the last couple of years, the automakers really went full bore in putting in capacity for EVs," Fields, 64, told CNBC's "Power Lunch."
"They really didn't have a good discussion on the consumer, in terms of what it was going to take to get the consumer to buy these EV products," Fields said....
But but but but Fields has a Harvard MBA!! How could he...........aaaach. Nevermind.
...General Motors said in an exchange filing on Tuesday that it was taking a $1.6 billion charge "based on a planned strategic realignment of our EV capacity and manufacturing footprint to consumer demand."
... "This is clearly an issue where the market didn't develop the way automakers thought. A lot of them, particularly in GM's case, boasted that they had the full lineup of EVs," Fields said on Tuesday....
Discussion of "Free Money" (rebates) is included in the article. But there is NO discussion of the fact that the EV market began dying about mid-2024--or earlier--long before the Free Money was slated to vanish. Ask Rivian, or Tesla.
There's a lot of factory space which will soon be available, cheap. Good place for pharmaceutical manufacturers, furniture manufacturers, PC manufacturers, and--who knows--even good old-fashioned I.C.E. car manufacturers.
Trump tariffs work!!
5 comments:
Let’s allow the low price Chinese EVs into the country and see what happens. People want cheaper cars, they would prefer if they were EVs. But that isn’t available to them.
People who can afford a Rivian or Tesla don't want an EV. They're buying regular higher end cars.
If the cheap cars are EVs then yeah those folks who need a cheap car will probably buy them. Just like they buy their cheap clothes at Walmart. Doesn't mean they like them.
25% Of luxury cars were EVs this year. 50% of new car sales in EU were either hybrid or EV. Given the choice at the same price, people will take EVs.
"...people will take EV's....."
The entire point of this post contradicts your blather. They are NOT 'taking EV's' unless there's a huge tax break (which also tells you the upper-middle and upper classes are the buyers.) Check the factory shutdowns, temporary or otherwise.
SHeesh.
People can't AFFORD the EVs they are making. Like it said in the article. In the EU people continued to buy them after they "rolled off" the subsidies. Their cars are also smaller and they have the cheaper BYD options. Instead the US automakers were dumb asses and kept making larger and larger vehicles when people want a smaller EV. Give the people the options they want vs the largest margin vehicles and you see what happens. This is why no one is buying the F150 Lightning or the Tesla ugly truck.
And no shock that Tesla fell off EXACTLY the time that Elon threw his money behind Trump and started going down the insane rabbit hole.
There will be a drop in EV sales for the next few months while people wait to see what automakers do with the prices now that the subsidy is gone.
Post a Comment