Ford, GM, Mercedes come clean on EV demand weakness

Just looks like there are too much $$ chasing EV sales that don't exist. The EV sales that are happening are still disproportionately going to Tesla despite media outrage over Elon Musk buying Twitter.
 

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Top executives of Ford, General Motors and Mercedes-Benz all addressed concerns over waning demand for electric vehicles this week, as the major automakers navigate losses and price wars amid an EV push that not enough consumers are buying.

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On Thursday, Ford withdrew its full-year results forecast, citing "uncertainty" over its tentative deal with the United Auto Workers and warned of continued pressure on electric vehicles as customers balk at paying a premium for EVs over other models.

"It's been a challenging situation, for sure," Ford CEO Jim Farley said during the company's third-quarter earnings call after posting greater losses than expected on EVs. "Matter of fact, our business is never short of challenges, especially right now with the evolution of the EV market and new global competitors from China, as well as the technology disruptions."

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GM on Tuesday withdrew its 2023 profit outlook, and CEO Mary Barra said the automaker will slow the launch of several planned EV models to cut costs.

"We are reducing our fixed costs by $2 billion net of depreciation and amortization as we exit 2024," Barra wrote in a letter to shareholders. "We are also moderating the acceleration of EV production in North America to protect our pricing, adjust to slower near-term growth in demand, and implement engineering efficiency and other improvements that will make our vehicles less expensive to produce, and more profitable."

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Mercedes-Benz reported this week that its third-quarter earnings fell as margins on EVs remained lower than previously assumed.

Mercedes-Benz financial chief Harald Wilhelm noted during a call with analysts that some traditional players are selling EVs below the pricing level of internal combustion engine vehicles despite their higher production costs, saying, "I can hardly imagine the current status quo is fully sustainable for everybody.

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The government is pushing EVs but consumers don't seem to really want them yet. At the same time, the government is also applying more regulatory pressure on energy providers despite knowing that EV's will increase demand for electricity. As the article states, this is a government mandated disaster in the making.

Looks like the government's battle against internal combustion cars will pretty much only help Tesla and will ultimately lead to the end of the automakers that are in bed with the UAW. Yet Tesla is owned by someone that clearly isn't a fan of current leadership in Washington or organized labor. And Ford is possibly the most woke car company on the planet.