Is Electrification Killing the Auto Industry?

For years, the auto industry has been hyping the transition to electric vehicles with optimistic sales forecasts for electric models and huge growth projections. Investors pumped up valuations for automakers, based on their visions for an electric future.

Now the hype is dwindling, and companies are again cheering consumer choice. Automakers from Ford Motor and General Motors to Mercedes-Benz, Volkswagen and Volvo are scaling back or delaying their electric vehicle plans.

Tesla’s annual vehicle deliveries declined for the first time in more than a decade during a period when overall car sales are up. Have automakers overinvested in EVs and are EVs killing the car industry?

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[SFDY]

Years of ridiculously low interest rates convinced automakers that anyone can afford $100K car which is definitely not the case at >%5 interest rates.

[DataIsBeautifulOfficial]

You can't sell a green car if everyone's in the red.

[Hythlodaeus]

No, the lack of attention/foresight is killing the car industry lol.

I’ve recently been thrusted back into the market and I’ve been blown away by how unimpressive new cars are, despite the astronomical price tags. Cheap materials, random noises/rattles, and horrid interior designs — pretty much across the board. I’m not paying $60k for poorly-airbrushed “wood grain” plastic or touch-screen infotainment systems with latency like a 2005 Amazon Kindle.

[DavidMorley]

Small EVs make total sense. Commuting, school run, local trips.. hugely expensive luxury 2.5 ton SUVs that are expensive to run, have massive depreciation and can only be purchased by most with massive subsidies and bank loans, seems absurd.(edit obviously I mean electric or fuel based SUVs)

[Zeuskabob]

2:15 "All of which are coming next year" Patrick, your dry humor is really incredible.

[lindenhoch]

It's ironic to me that Norway only could afford transitioning to EV's because of their vast oil exports.

[UNgineering]

One of the massive problems with EVs is the manufacturers actively suppressing any attempts at independent repair.

[freetheworld]

It's killing the manufacturers who thought they will continue selling cars at a premium forever

[mgs]

Across the board, car prices have gone into the stratosphere - even a modest car is pushing $30K (CAD), a base EV starts close to $60K - an average salary is $50-60K - how the heck does anyone afford anything in this climate?

[Strykenine]

Patrick, you missed an opportunity to say that Dyson and Jaguar are both in the sucking business now, but I'm not a comedian or a wrapper so I don't know about how to present these things.

[aer]

"Cheap Chinese imports" should be renamed to "Normally priced imports" when the prices are at 30k eur plus.

[Sticksandstones]

I work as a millwright in a GM plant that has recently transitioned to making EV’s and batteries. It doesn’t require a totally different work force to do so.

[zim-zfmq]

Who could have predicted, (I) price gouging during a cost of living crises and (II) refusing to make the cars your customers want; would have bad results?!?

[Mrarmageddon]

Insane prices are what’s killing the industry.

[Denni]

"All of which are coming next year." This is the type of stoic sarcasm I come here for

[ichifish]

The problem in the US, and increasingly the EU, is with the size of cars. Here in Japan tiny low-cost hybrids are everywhere, and while pure EV sales are slow because of a lack charging infrastructure, they are coming. The difference is that people here aren't sacrificing size because land arks are impractical and dangerous (although a fair number of assholes insist on buying them). Back in the US you need to tower over the road in your Mad Max machine or risk being run over. Small hybrids and EVs are proven technology, but nobody can make an affordable 2, 000kg vehicle. This is a direct result of the truck exemption from fuel efficiency back in 1975.

[Ipergorilla]

Just wanted to say how much I admire prof. Boyle's commitment to his sponsor: getting clean shaven for the sponsor segment and immediately growing back his stubble once that's done.

[brokenrecord]

"Stellantis" sounds like a medication advertised on the evening news.

[Merry-]

Another thing to add on the rapid adoption of EVs in Norway is that Norway has historically been a very electrified country due to its great abundance of hydro energy. The fact that most of the country runs purely on electricity made the adoption a lot smoother

[CainXVII]

In Sweden EVs have been preferentially treated because of pollution, not climate change. The government tried to impose a "gas car free zone" in the middle of Stockholm. They had to back away from that though because it imposed such a big burden on companies in the area. I think it's pretty stupid because nobody drives there anyways unless they have to, and this just means gas cars and hybrids have to drive around.

What made my mom spring for a hybrid and now maybe full EV is free charging in her garage. If all garages in Stockholm had an outlet by every parking space that would probably do a heckuva lot more for EV sales.

Now I don't know what to think about EVs. As you said, if driving is cheap nobody takes the train. I used to travel five hours by car a lot because it was much cheaper for me than taking the train. What we really need are better and less expensive trains that actually work.