In the past 10-years, I haven’t reviewed an electric vehicle I didn’t really like, and I think the same is true of our Executive Producer, Amy Plemons. They are fast, they are quiet, and aside from the normal trepidation of range anxiety, upfront costs, the lack of long-term reliability history, and the pain of finding a public charger, slightly more than 7% of vehicles sold in America this year are all-electric. As I have said on the air, there is no doubt I’ll own (likely lease) one someday, likely sooner than later. I already have the Level 2 charger in my garage.
I have been hard on the U.S. Government publicly as well as some automakers for pushing electric vehicles too hard, too fast. The result has been an oversupply of EVs, resulting in massive losses to car companies to the point of fears about the future viability of those automakers that went “all-in” on all-electric. A week ago Saturday I had had strong words for General Motors and pointed out that Ford lost $100,000 in the first quarter of this year on each electric vehicle it sold. Tesla is in a freefall trying to balance sales and stock prices, not an easy task for Mr. Musk. If you missed my on-air comments, it is a short listen, and you can hear it here:
I monitor many automotive websites to make sure I bring you the most up-to-date information available. I look for trends and directions. So, I wanted to share with you lead automotive stories from just two days in the previous week. There were others, but you’ll get the idea. Is it too soon to say the electric car bubble has burst? Are hybrids the cause? You be the judge.
From Automotive News:
Hybrids Replace EVs on Industry's Center Stage
Once all-in on EVs, automakers are now turning to older technologies, including plug-in hybrids and conventional hybrids, as consumers tiptoe rather than race into electric transportation. Combined, registrations of hybrid and plug-in hybrid vehicles rose 48 percent to 412,926 in the first quarter of this year compared with the same quarter a year earlier, according to S&P Global Mobility. Meanwhile, electric vehicle registrations grew 5.2 percent to 264,268.
From Bloomberg:
Volkswagen Walks Back EV-or-Bust Strategy That Rankled Rivals
Volkswagen AG’s all-in on electric vehicles plan is no more. The namesake VW brand, which pitched its ID family of electric cars as central to its future, admitted last week it will need more plug-in hybrids as EV sales decelerate.
Also From Bloomberg:
Hybrids Delivering Cash Chest for Toyota’s, Honda’s EV Ambitions
When Toyota Motor Corp. introduced the world’s first hybrid gasoline-electric vehicle in 1997, it incurred a loss on every Prius it sold. Decades later, booming sales in the category are delivering a much welcome cash boost. The world’s largest auto manufacturer recently reported annual operating profit of ¥5 trillion ($32 billion), the first time any Japanese company reached that threshold, with an industry-topping margin of 11.9%. Hybrid sales jumped 32% to 3.59 million units, accounting for one out of every three cars Toyota sells.
From Automotive News:
Ford Issues 'Call to Action' for EV Suppliers
Ford Motor Co. has issued a “call to action” to suppliers, asking for help reducing costs on electric vehicle production, where the automaker is bleeding billions of dollars. The company recently contacted parts makers on EV programs and requested ideas for cutting costs, according to a copy of the supplier memo obtained by Crain’s Detroit Business, an affiliate of Automotive News.
From Wards Auto:
Mercedes-Benz to reduce EV plans
Mercedes-Benz is set to dramatically reduce its investment in electric-vehicle platform development with a decision not to proceed with plans for the so-called MB.EA-Large structure, according to media reports in Germany. The new platform, planned to be launched in 2028, originally was earmarked to underpin successor models to the existing EQE and EQS sedans and SUVs.
From the Wall Street Journal:
Why the Hybrid Boom Is Funding EVs
Electric vehicle or hybrid? While car buyers debate the technologies’ relative merits, manufacturers need to invest in both. Take Japan’s hybrid leaders, Toyota and Honda. Last week they both reported by far their most profitable fiscal years ever. The weak yen played a part… So too did the resurgence of the hybrid technology pioneered by the Toyota Prius in the late 1990s. In the U.S., hybrid sales rose 62% from a year earlier in February, according to the latest Kelley Blue Book data, while EV sales fell. Only the much smaller market for plug-in hybrids grew faster. The trend is similar in Europe.
From MotorTrend:
The Game Might Be Up For Fisker
After a raft of bad news earlier this year, it seems like Fisker is headed directly for bankruptcy, and it may cease operations as well. The latest news hails from the contract manufacturer that actually builds the Ocean SUV for Fisker, Magna International of Austria. In the company’s earnings report, it says “Our current Outlook assumes no further production of the Fisker Ocean,” and furthermore that the company could suffer $75 million in losses related to the abbreviated Ocean contract.
From Reuters:
Fewer People in the US Plan to Buy EVs This Year, Study Shows
The number of buyers in the U.S. considering an electric vehicle purchase in 2024 has fallen from a year ago due to a shortage of affordable cars, inadequate charging infrastructure and ignorance about EV benefits, a study by J.D. Power has shown. Other factors contributing to waning EV demand in the United States include stubborn inflation, high interest rates and underwhelming growth in model availability, the study said.
Photo Credit: Southworks/Shutterstock.com.
