(AIER)—In August, Ford announced it was spiking its plan to roll out an all-electric three-row SUV, citing low consumer demand and a crowded market.
“We’re seeing a tremendous amount of competition,” John Lawler, Ford vice chair and CFO, told journalists in a conference call. “In fact, S&P Global … said that there’s about 143 EVs in the pipeline right now for North America — and most of those are two-row and three-row SUVs.”
The news that Ford was scrapping its SUV EV came just a month after the company announced a manufacturing pivot at its plant in Oakville, Ontario. The plant, which had been earmarked for EV production, was shifting production to Ford’s F-series pickups, its flagship gas-powered trucks.
“The move,” the New York Times reported, “is the latest example of how automakers are pulling back on aggressive investment plans in response to the slowing growth of electric vehicle sales.”
The Cost Problem
Ford’s latest pullback from EVs is no surprise to people who’ve been paying attention to the EV market.
More than a year ago I pointed out that news outlets were reporting of EVs “piling up” at dealership lots because of low consumer demand, which ultimately prompted Ford to halve production of its popular F-150 Lightning, reducing output to about 1,600 vehicles per week.
The reality is both lawmakers and Washington and auto companies severely misjudged consumer demand for EVs, which has proven far lower than estimates had projected. There are many reasons for the low demand, but the primary reasons are concerns consumers have with EVs.
Price is one factor. Research in recent years has indicated that despite government subsidies, EVs typically cost on average between $5,000 and $10,000 more than a similar gas-powered vehicle. That EVs are more expensive than gas-powered cars may surprise few readers, but what’s less known is that the price gap is widening.
“EV prices aren’t just going up; they are rising faster than inflation…faster than [internal combustion engine] vehicle prices” Ashley Nunes, a senior research associate at Harvard Law School, testified before Congress in 2023, noting that the inflation-adjusted average price of a new EV had risen to over $66,000 in 2022, compared to $44,000 in 2011.
The Charging Problem
Cost, however, isn’t the only concern of consumers.
An overwhelming percentage of Americans—77 percent, according to a 2023 survey led by the Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago—have concerns about how they would charge an EV if they bought one.
These concerns are not baseless. In February, the New York Times profiled a man Michael Puglia who had recently bought a Ford F-150 Lightning and said it was the “coolest” vehicle he’d ever owned.
“It’s unbelievably fast and responsive,” the Ann Arbor, Mich., anesthesiologist told reporter Neal E. Boudette. “The technology is amazing.”
The problem was the vehicle’s range. When the weather grew colder, Puglia found that the distance his vehicle could travel fell dramatically. His faith in the $79,000 truck dampened, and he found himself wondering if he should sell it.
“People say ‘range anxiety’ — it’s like it’s the driver’s fault,” Puglia told the Times. “But it’s not our fault. It’s actually they’re not telling us what the real range is. The truck says it’s 300 miles. I don’t think I’ve ever gotten that.”
The range problem of electric vehicles is exacerbated by another challenge facing EVs: a lack of charging stations. Nationwide, there was 68,475 private and public charging stations at the beginning of the year, according to the Department of Energy. That’s more than twice the number in 2020, but it’s still just a third of the number of gas stations and far below projections.
The range problem of electric vehicles is exacerbated by another challenge facing EVs: a lack of charging stations. Nationwide, there was 68,475 private and public charging stations at the beginning of the year, according to the Department of Energy. That’s more than twice the number in 2020, but it’s still just a third of the number of gas stations and far below projections.
One reason charging infrastructure has lagged is due to the federal government’s incompetence. Nearly three years ago, the U.S. Departments of Transportation and Energy announced a $5 billion spending effort to build fleets of charging stations to lead “an electric vehicle revolution.” As of the summer of 2024, just seven charging stations had been built.
“That is pathetic,” said US Sen. Jeff Merkley, a Democrat from Oregon. “We’re now three years into this … That is a vast administrative failure.”
Of Profits, and Losses
The decision of automakers to bet big on EV adoption was in some ways rational, in that they were responding to powers in Washington that were pressuring them and incentivizing them to expand electrical vehicle production. But the costs of listening to industry experts and politicians in Washington instead of consumers — and profits — have been severe.
In August 2023, NPR reported that Ford CEO Jim Farley was charging ahead with its ambitious EV expansion even though the company was “losing money on each EV it sells” and consumer demand for EVs was plummeting. Farley’s reasoning was that Ford was attracting new customers, but it was a costly endeavor. Ford reported a loss of $4.7 billion on EV sales in 2023, roughly $40,525 per vehicle sold.
“If the great mass of consumers dislike purple cars with green polka dots, then a society based on private property will not waste resources in the production of such odd cars,” wrote economist Robert Murphy. “Any eccentric producer who flouted the wishes of his customers and churned out vehicles to suit his idiosyncratic tastes, would soon go out of business.”
Murphy wrote these words more than twenty years ago, but in a sense they describe Ford’s business strategy. By producing mass amounts of pricey EVs that consumers didn’t want and selling them at a loss, Ford was in a sense cranking out green polka dotted cars. It was a losing strategy and path to going out of business.
Ford’s massive pullback from EVs is part of a broader return to economic reality. Companies flourish in a free market economy not by serving bureaucrats but consumers, the true “bosses.”
“They, by their buying and by their abstention from buying, decide who should own the capital and run the plants,” Mises wrote. “They determine what should be produced and in what quantity and quality. Their attitudes result either in profit or in loss for the enterpriser.”
Automakers bear responsibility for their decision, and paid the price in the form of losses. But this misallocation of resources likely could have been avoided if not for the federal government’s hamfisted attempts to coerce Americans into EVs, which included not just taxpayer-funded subsidies, but overt pressure from Washington and federal regulations designed to phase-out gas-powered cars.
Fortunately, the centrally planned EV revolution now appears dead in the water, or at least in full retreat. A spokesman for Kamala Harris recently told Axios the presidential candidate “does not support an electric vehicle mandate.”
Forcing Americans into EVs was always a bad idea economically, but it now appears to be a bad idea politically, too.
That’s good news for Ford and American consumers.
It’s becoming increasingly clear that fiat currencies across the globe, including the U.S. Dollar, are under attack. Paper money is losing its value, translating into insane inflation and less value in our life’s savings.
Genesis Gold Group believes physical precious metals are an amazing option for those seeking to move their wealth or retirement to higher ground. Whether Central Bank Digital Currencies replace current fiat currencies or not, precious metals are poised to retain or even increase in value. This is why central banks and mega-asset managers like BlackRock are moving much of their holdings to precious metals.
As a Christian company, Genesis Gold Group has maintained a perfect 5 out of 5 rating with the Better Business Bureau. Their faith-driven values allow them to help Americans protect their life’s savings without the gimmicks used by most precious metals companies. Reach out to them today to see how they can streamline the rollover or transfer of your current and previous retirement accounts.
Empty-Suit Kamala Harris Nukes Her Only Proposal to Lower Prices for Hurting Americans
by Red State
With high prices continuing to slam average Americans following three years of explosive inflation under Kamala Harris, the issue has become top of mind for many voters. That’s led both nominees to put forth their proposals to bring relief. Donald Trump has promised to lower taxes, increase energy production, and…
Kamala’s Money Machine
by Frontpage Mag
“Kamala demands a life of luxury,” a former aide revealed. “She treats the campaign like a personal checking account to fund a lifestyle she aspires to,” another aide warned. “Staff has always worried about Kamala’s spending, but she is adamant about using campaign money as she wants,” that aide on…
US Home Sales Dropped in August Despite Falling Mortgage Rates
by The Epoch Times
U.S. existing home sales declined more than expected in August, even as mortgage rates fell to their lowest levels in more than a year. Last month, home sales tumbled 2.5 percent to a seasonally adjusted annual rate of 3.86 million units, according to new data from the National Association of…
Open Borders America: A New Generation of Victims
by Liberty Nation
Crimes committed by migrants are another hot-button issue sweeping the nation, especially with the recent influx of so many illegal immigrants. President Joe Biden and his administration opened the nation’s doors to the undocumented and started two programs to fast-track even more. Critics claim this has allowed for more crimes…
How a Faith-Based Gold Company Is Changing the Way Americans Protect Their Retirement
by Sponsored Post
When Genesis Gold Group was first conceived, co-founder Jonathan Rose knew two things were necessary in order to thrive in the extremely competitive precious metals industry. First, he knew they wouldn’t repeat the same deceptive marketing tactics “Big Gold” companies use to entice customers. Second, he knew they needed spiritual guidance if they were going to succeed in reaching Americans who want their life’s savings protected from the tumultuous markets. …
Trump Suggests Capping Annual Credit Card Interest Rates at 10% — But Critics Fear ‘Price Controls’
by NY Post
Former President Donald Trump floated limiting annual credit card interest rates to a maximum of 10% during a campaign stop on Long Island Wednesday night, prompting banking groups to push back against the plan as the Republican version of Democrat Kamala Harris’ widely panned “price controls.” “While working Americans catch…
New Costco Breaks Ground in South Los Angeles With 800 Upper-Floor Apartments
by The Epoch Times
Mayor Karen Bass and other officials broke ground Wednesday on a mixed-use project featuring a new Costco and 800 apartment units in South L.A., which they say will provide local residents with housing and job opportunities. Developed by Thrive Living, a national real estate firm, the project known as 5035…
Why a Kamala Harris Presidency Would Be Devastating for Small Businesses
by The Blaze
Kamala Harris claims under her and Biden’s leadership, a record of 19 million small business applications were received — but Glenn Beck and small business expert Carol Roth aren’t buying it. “What is a small business application?” Roth begins. “When I started my business, I didn’t have to apply at…
Dan Campbell Relocates Family After Doxxing Incident, Sells Mansion for $4.5M
by The Dupree Report
In light of safety concerns, Dan Campbell, the head coach of the Detroit Lions, has decided to relocate his family from their current residence in suburban Detroit. The decision comes after a series of harassment incidents at their home, prompting the family to sell their 2-acre property. “The house itself…
An Economy So Strong It Requires Crisis-Level Fed Action
by Mises
In the last few months, the Federal Reserve has signaled that it is prepared to cut interest rates. Today’s 50bps rate cut, however, exceeded most expectations. As ZeroHedge has noted, “only 9 of 113 economists surveyed” expected this sort of move, and the Fed’s own dot plot shows a growing…
Congressional Probe Into Democrat Fundraising Platform, ActBlue, Finds Potential “Criminal Activity”
by Darlene McCormick Sanchez, The Epoch Times
(The Epoch Times)—A congressional investigation analyzing more than 200 million political contributions found potential “criminal activity” and referred the information to five state attorneys general for further review. The review involved donation reports from ActBlue, an online Democratic fundraising platform, to the Federal Election Commission, according to Rep. Bryan Steil…
Obamacare Premiums Rise Again, No End in Sight
by Heartland Daily News
Some 324 Obamacare insurers across the 50 states and the District of Columbia are proposing a median premium increase of seven percent for 2024, according to an annual analysis by Peterson and KFF. Growth in health care prices, increased utilization, and the costs of diabetes and weight-loss drugs are among…