Electric vehicles: the dogs don’t like it

There’s a famous story in American marketing circles about a pet food company that spent a fortune on a new dog food, but were horrified to find sales tanking. They’d done everything right! What could possibly have gone wrong? As the story goes, a high-priced consultant was brought in. His verdict? “The dogs don’t like it.”

A similar story about electric vehicles (EVs) will probably one day be taught in business schools. For years, and particularly during the Mummified Meat Puppet Administration (MMPA) we’ve been told EVs are the future, and all manner of mandates, tax incentives, regulations and other “expert” manipulations have been pushed on Americans to see that EV future arrives no later than 2030. Unfortunately for the MMPA, the dogs don’t like it:

The electric vehicle (EV) push is eating into Ford’s profit margins as the company seeks to find the right mix between profitable vehicles consumers want today and the next generation of EVs that may be in higher demand as the market’s preferences shift in the future.

Ford Model e, the company’s EV division, had a net loss of $4.7 billion last year — with $1.6 billion of that in the last quarter — and Ford’s chief financial officer John Lawler explained during the company’s earnings call on Tuesday that both “the quarter and year were impacted by challenging market dynamics and investments in next-generation vehicles.”

Ford expects to lose at least $5.5 billion, in 2024 which, like the $4.7 billion, is what they’re willing to admit at the moment. That’s real money even for Ford, and despite MMPA demands, they’re a publicly traded company with fiduciary obligations to their stockholders. It has taken Ford awhile to remember that. They’ve claimed to have reduced EV production by 50%, but have laid off 66% of their F-150 Lightning production force. EVs, it turns out, are bottomless money pits, as Rivian has discovered. They’re laying off workers, and their stock has plummeted.

Apart from the real and insurmountable problems all EVs have, Rivian’s price structure is deadly. The average EV price is $67,000. The cheapest Rivian model starts at $70,000, which means a reasonably well-equipped Rivian approaches $100,000. Not many Americans, unless they’re buying one for greenie street cred, and have all the conventionally powered vehicles they need, can afford that. Rivian isn’t alone:

Fisker’s stock plunged this week as investors worry about the company’s ability to survive amid a cash crunch. The auto company also said it would slash 15% of its workforce.

In its original incarnation, Fisker went bankrupt in 2013, disappearing the 529 million the Obama Administration “loaned” it, even though they knew Fisker was going under. Fisker, in its former and current incarnations, made luxury vehicles most Americans couldn’t remotely afford.

It appears Fisker is days, not months, from going under again. General Motors has “postponed” its EV production plans, and 50% of Buick dealers have opted for buy-outs—they’re going out of business—rather than invest in the equipment and training necessary to sell and service EVs. Ford and other makers have canceled or “postponed” EV battery making ventures, some with the Chinese, and even the MMPA is starting to worry, at least a little, about Chinese EVs and espionage:

During an interview aired on Friday’s [02-23-24] broadcast of CNBC’s “Closing Bell: Overtime,” Commerce Secretary Gina Raimondo said that we “Probably” need to take more action to keep Chinese electric vehicles from flooding the market and stated, “I have national security concerns about electric vehicles.” [skip]

By the way, I have national security concerns about electric vehicles. An electric vehicle has sensors and semiconductors. They know who’s driving it, where they’re driving, huge amounts of data. Chinese EVs on our road, is that data going back to Beijing in ways that undermine our national security? 

Graphic: X screenshot.

A Biden Cabinet Secretary saying that about China?! That’s probably an indication of Joe Biden’s sinking political capitol and worries about losing political power rather than much concern about America. 

Electric Vehicle Derangement Syndrome is every bit is debilitating as Trump Derangement Syndrome. Transportation Secretary Pete Buttigieg recently contradicted reality and Raimondo. 

Appearing on Fox’s “American Reports,” he argued America is “moving towards EVS.” and his only worry about China’s EVs obliterating American auto manufacturing has nothing to do with national security.  He wants to out-produce China, even though China can severely undercut American EV prices.

Rational people understand economic reality: Americans don’t like EVs, and what they don’t like, or can’t afford, they’re not going to buy. The MMPA, however, can’t even keep its arguments, economics, or the necessities of national security, straight.

Mike McDaniel is a USAF veteran, classically trained musician, Japanese and European fencer, life-long athlete, firearm instructor, retired police officer and high school and college English teacher. He is a published author and blogger. His home blog is Stately McDaniel Manor.