The Biden Administration is dictating that 2/3s of new vehicles manufactured in the U.S. be electric-powered or something other than the current internal combustion engines that run on gasoline or diesel fuel. It reminds me of the Soviet Union's quota system, which was a failure on many levels.
All these mandates remind me of the 60's hit by The Animals, "I'm just a boy whose intentions are good, Oh Lord, please don't let me be misunderstood." Leaders always want to be judged on their intentions. Unfortunately decisions also have consequences. Understanding how markets work, and the laws of supply and demand, is a rather important variable.
Here are a coupe stories from last year, followed by a several others from this past week in response to the new EV Mandate.
* * * * *
WSJ Ten Point
Lordstown Motors files for bankruptcy.
The electric-truck startup—cheered by investors during the SPAC boom and lauded by former President Donald Trump as a savior for a closed GM factory in Ohio—filed for chapter 11 bankruptcy protection, after talks with its investment partner fell through. The truck maker sued Foxconn Technology for fraud and breach of contract, claiming it reneged on a deal to acquire Lordstown shares. Foxconn didn’t immediately respond to a request for comment.
The day began less bright for electric-truck startup Lordstown, which filed for bankruptcy. It is the latest company in a crop of aspiring EV manufacturers that have so far failed to deliver on their promises to revolutionize the auto market.
Jan 11, 2024
The Street
Here's Why EV Experts Are Flaming Joe Biden's Car Policy (July 2023)
The Biden Administration has set lofty goals for the electric vehicle market, but some automakers and union officials have their doubts.
https://www.thestreet.com/electric-vehicles/heres-why-ev-experts-are-flaming-joe-bidens-car-policy
Jan 16
Stellantis shares fell 3% after temporarily laying off 2,250 workers at a plant in Italy, citing weak electric vehicle (EV) demand. This is not the first time the company has implemented such a measure, reiterating the ongoing challenges the EV industry faces.
Jan 19
WSJ
The EV Backlash Builds
Companies cut output amid flagging demand. Could it be the product?
A Consumer Reports survey in November found that new EVs have 79% more problems than internal-combustion cars.
Jan 20
Fortune
New Biden administration pollution rules would require almost 10 times as many EV sales in 2032 as today
CNBC
Stellantis CEO says automaker won’t sell EVs at a loss like other carmakers
https://www.cnbc.com/2024/01/19/stellantis-ceo-says-automaker-wont-sell-evs-at-a-loss.html
WIFR
Electric vehicle experts say EVs are rising in popularity
https://www.wifr.com/2024/01/19/electric-vehicle-experts-say-evs-are-rising-popularity/
Jan 19
The Hill
As demand for EVs plummets, Biden’s green fantasy is pummeling US auto dealers
Fox Business
Biden's EV insanity just got even worse
Frigid January temperatures have given electric vehicle owners nightmares as they struggle to keep their cars charged and on the road
https://www.foxbusiness.com/politics/bidens-ev-insanity-got-worse
In addition, the cars’ batteries reportedly drain faster in frosty weather. One study from 2019 reported that low temperatures can reduce EV range by 40% or more when drivers are using the cars’ heaters. And yes, when it’s below freezing most people will be using their heaters.
That’s not the only blow to EVs in recent days. Hertz announced it is ditching one-third of their EVs – 20,000 cars -- from their rental fleet and will be replacing them with good old-fashioned gas-powered vehicles, the kind customers actually want to drive.
Here's "the official story" from the White House
FACT SHEET: Biden-Harrishttps://www.whitehouse.gov/briefing-room/statements-releases/2024/01/19/fact-sheet-biden-harris-administration-announces-new-actions-to-cut-electric-vehicle-costs-for-americans-and-continue-building-out-a-convenient-reliable-made-in-america-ev-charging-network/ Administration Announces New Actions to Cut Electric Vehicle Costs for Americans and Continue Building Out a Convenient, Reliable, Made-in-America EV Charging Network
Related Link
Will Electric Cars Rule? If So, When?
Robert Bryce’s U.S. Senate Testimony On EPA's EV Mandates: "Unrealistic And Unattainable"
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