The Wall Street Journal reports GM Posts Strong Third-Quarter Profit, Scraps EV Target
General Motors is abandoning a self-imposed target for the number of electric vehicles it aims to produce through the middle of next year because of softening consumer demand, a surprise move for a company that was an early mover in this space.
The Detroit automaker walked back the goal while reporting a healthy third-quarter profit, despite the hit from the continuing United Auto Workers strike. The walkout, which began in mid-September, is now costing GM about $200 million a week.
GM planned to have produced 400,000 EVs over a roughly two-year stretch by the middle of next year, but has abandoned that goal. Chief Financial Officer Paul Jacobson cited a slowdown in the market for battery-powered cars.
Last week, the company said it would delay by one year the opening of an EV truck factory in suburban Detroit, among several recent signs that the burst of consumer interest in electrics over the past few years has faded.
Automakers Scaling Back Electric Truck Plans
Kelley Blue Book reports Some Automakers Scaling Back Electric Truck Plans
The Wall Street Journal reports, “Ford Motor is considering cutting a work shift at the plant where it builds its electric F-150 Lightning pickup as demand for the EV truck falters.”
The Journal’s source for the story is a UAW official “who leads the union’s local chapter that represents workers at the truck factory.” The official wrote, “It doesn’t take a rocket scientist to figure out that our sales for the Lightning have tanked,” the Journal reported.
Ford later confirmed the news but not the reason, telling Yahoo Finance, “We are adjusting the schedule at the Rouge Electric Vehicle Center because of multiple constraints, including the supply chain and working through processing and delivering vehicles held for quality checks after restarting production in August.”
Electric Cars Were Already Having Issues. Then Things Got Political.
Please consider Electric Cars Were Already Having Issues. Then Things Got Political.
The EV transition is running head on into polarizing politics.
Already this year, pricier electric vehicles got even more expensive for many potential buyers thanks to higher interest rates, which affect loan costs.
Now, anti-“woke” backlash and high-profile politics are increasingly making the suggestion of owning an EV a political cudgel. Or, as Ford Motor Chief Executive Officer Jim Farley recently lamented: “They have become a political football.”
President Biden’s support of the transition, through subsidizing manufacturing, extending tax credits for EVs and giving money for charging stations, has come under attack from Republican rivals seeking to challenge him for the White House next year.
Intensifying the debate is a continuing labor strike against the Detroit car companies by auto workers worried about whether they will have jobs in the new EV world.
Tesla’s Musk Warns of Cybertruck Challenges
Finally, please consider Tesla’s Musk Warns of Cybertruck Challenges
Chief Executive Elon Musk warned Wednesday that Tesla TSLA 2.49%increase; green up pointing triangle would face “enormous challenges” scaling up factory production of its long-delayed Cybertruck, signaling profits could remain under pressure in the coming quarters.
The electric-car maker reported a 44% decline in third quarter net income Wednesday, a steeper drop than Wall Street had expected, as price cuts across the company’s lineup continued to take a toll on the bottom line.
On Tesla’s earnings call, Musk struck a cautious tone about the year ahead, expressing concerns about the broader economy, including higher interest rates and their impact on consumers.
He also was tempered in his outlook for the Cybertruck, which Tesla plans to start delivering to customers at the end of November.
“We dug our own grave with Cybertruck,” Musk said, referring to the complexity of building the vehicle, which has faced cost overruns and design changes.
Tesla’s third-quarter financial results disappointed on a number of fronts, including missing analysts’ expectations on revenue and net income, adding to concerns about whether the company can sustain its growth trajectory with a rather limited lineup.
A Step in the Right Direction: UK Prime Minister Trashes Climate Change GoalsOn September 21, I commented A Step in the Right Direction: UK Prime Minister Trashes Climate Change Goals
Cheers to UK PM Rishi Sunak for pushing back climate change goals from 2030 to 2035.
Virginia Governor Bucks California in Battle to Save Gasoline-Powered CarsOn October 20, I noted Virginia Governor Bucks California in Battle to Save Gasoline-Powered Cars
Virginia opted to go along with California’s effort to get rid of gasoline-powered vehicles. Glenn Youngkin, a Republican, wants to undo the damage of the his predecessor.
It is beyond stupid for any state to cede policy to nut cases in California.
I have now seen enough to know that I support Glenn Youngkin for President.
The country could easily unite around Youngkin.
EVs don’t do a damn thing for the environment. See Biden’s Solar Push Is Destroying the Desert and Releasing Stored CarbonAnd to top it off, The National Highway Traffic Safety Administration has concluded Biden’s mileage standards have “Net benefits for passenger cars remain negative across alternatives” vs doing nothing at all.See The Shocking Truth About Biden’s Proposed Energy Fuel StandardsThose are the right reasons to kill this insane push. And it’s safe to add inflation to the mix, not that additional reasons are needed.When massive subsidies are not enough to help manufacturers nor induce consumers to buy, you know without a doubt there’s massive government overreach.More By This Author:Gold And Bitcoin Surge With Treasuries Hammered, What’s Going On?
BEA Reports GDP On Thursday, GDPNow Estimate Is A Hot 5.4 Percent
Good News: The 6 Percent Fee For Selling A House About To Get Trashed
