The EV plans and targets are being postponed as EV demand is not as high as anticipated.
Ford and GM are backtracking on their ambitious EV plans as they get down to keep making ICE cars and trucks. The two American giants had their EV plans and targets set for the coming years. However, the global automobile industry is reeling under a slowdown in the growth and adoption of electric cars. This is particularly the case in the top three automobile markets on the planet – the U.S., China and Europe. Interestingly, the emerging nations, who are still at a nascent stage of the EV revolution, as posting some promising sales numbers.
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Ford & GM Focus Back On ICE Cars
Just like many other legacy and new carmakers, Ford and GM had pledged billions of dollars to EV development. In fact, huge amounts of money have already been spent on various aspects of EVs. This includes investments in electric motors, batteries, platforms and collaborations. However, the demand has not kept up with the expenditure. As a result, the automobile giants are having to rethink their strategies.
For instance, a Bloomberg report captures GM CEO Mary Barra announcing a second delay to its EV line at its Orion Assembly plant in Detroit. This is where the Chevrolet Silverado EV was supposed to commence production. This site won’t see an EV production until at least mid-2026. Barra even confessed a few days ago that GM won’t achieve its target of manufacturing 1 million EVs by the end of 2025. What I felt a bit strange is that even the Buick PHEV has been delayed. This reflects that the American automaker isn’t even sure about the demand for hybrid cars.
At the Blue Oval, the story is almost similar. Last week, Ford announced that it will produce its legendary old-school Super Duty pickup trucks at its Oakville plant in Ontario, Canada in place of the planned electric Explorer and Lincoln Aviator SUV. A New York Times report contains Ford CEO Jim Farley mentioning that EVs are expensive to build and hard to sell. Ford will spend $3 billion to update the Oakville plant to save 1,800 jobs after the news of EV production being delayed to 2027 surfaced.
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Learn Electric Cars Says
The fact that two of the most prominent American carmakers in the world are unsure about the ongoing proceedings is a reflection of how complex the EV conundrum is. In the last few years, every major carmaker had a concrete plan in place to achieve carbon neutrality. However, it was basis of EV mass adoption. Unfortunately, the ground reality looks a lot different today. Everyone knew that there were some major hurdles in widespread EV adoption.
Nevertheless, there was a general consensus that these will go away in some time. Sure issues like charging infrastructure would take a lot of time. But at least, people would’ve been open to the idea of owning and living with EVs in some years. Unfortunately, that hasn’t happened. As a result, the demand after the initial surge is declining. Having no other alternative, car marques are beginning to delay EV production plans and new products. Let us keep an eye out for what happens next.