Staff Reports
The auto industry is taking a long, hard look at its electric vehicle (EV) strategy as it burns cash faster than a toddler with a matchbook at a pajama party. The bold ambitions set forth by Kamala Harris during her 2020 White House bid to flood American roads with electric cars are clashing head-on with reality. Hers was a vision of 50% of all cars being electric by 2030, ramping up to a whopping 100% by 2035. If only good intentions translated into viable products, but alas, it seems that wishing upon a star doesn’t pay the bills.
In a transparent display of economic lunacy, automakers are scaling back their lofty EV targets while staring down the barrel of the Biden administration’s strict mandates. Vice President Harris is no shrinking violet when it comes to going green; she’s leading the charge like a drill sergeant pushing troops into battle. All of this while auto manufacturers, like Ford, report staggering losses that make one wonder if the only thing electric in their lineup is their financial meltdown. Ford lost $1.1 billion on EVs in just one quarter, equating to losing nearly $44,000 per vehicle sold. That’s a loss any sensible business would shy away from, but evidently, that’s not the case for the EV pushers.
Automakers are rethinking EVs, but a Harris administration isn’t likely to ease up on the mandates https://t.co/9aOX3RbYTW
— Just the News (@JustTheNews) July 29, 2024
Yet the Biden-Harris machine remains steadfast in its quest to force Americans into battery-operated boxes, ignoring the market signals that consumers aren’t exactly clamoring for a shift to electric. The reports from various automakers indicate a troubling pattern; dwindling demand has firms like Ford announcing sorely disappointing adjustments, including a two-year delay in the launch of a much-anticipated electric SUV, which is now on hold while they pump out more gas-guzzling Super Duty trucks. Because nothing screams environmentalism like taking a detour to profitability by capitalizing on diesel.
The situation is so grim that even the high-flying Tesla is starting to feel the pinch. Satellite coverage is out, and a 45% drop in net income over just one year has raised eyebrows across the board. With targets set high, the company is now reevaluating its expectations while other smaller auto producers like Porsche are retracting commitments left and right. They’re finally realizing that selling 80% of cars as EVs, which seemed feasible only in the echo chambers of green policy discussions, isn’t exactly grounded in reality.
As the laws of supply and demand go, people prefer freedom of choice over being mandated into a corner with nowhere to go but to the charging station. Analysts suggest that the promoting of these mandates is akin to giving a goldfish a car and expecting it to drive. It’s clear that if Harris or any of her eco-warrior allies stick around, these mandates won’t be going anywhere either, and the future remains grim for traditional auto manufacturing. The real question remains, can the economy withstand the forced transition into EVs, or will we watch the fragility of the auto sector unfold in tragic and financially devastating fashion? The future of the North American automobile industry may very well depend on it.
