Another Biden program bites the dust, this time his big push to encourage everyone to buy an electric vehicle (EV). Meanwhile, Biden keeps going on vacation (as if he REALLY cares about middle America).
Cars and light trucks are seeing declining YoY sales in January (-0.7%) as M2 Money growth remains negative.
Automotive News was the first to report Ford Motor Co. halted shipments of all 2024 F-150 Lightning electric pickup trucks for an undisclosed quality control issue just weeks after slashing production volumes for the EV model due to sliding demand.
A Ford spokesperson did not explain the reasons behind the quality check, but shipments of Lightnings have been halted since Feb. 9. Even with shipments paused, production of the Lightnings continues at the Rouge Electric Vehicle Center in Dearborn, Michigan.
“We expect to ramp up shipments in the coming weeks as we complete thorough launch quality checks to ensure these new F-150s meet our high standards and delight customers,” company spokeswoman Emma Bergg wrote in a statement.
Last month, Ford announced plans to slash the Lightning production in April “to achieve the optimal balance of production, sales growth and profitability.”
The automaker (and many others, like Mercedes Benz) is recalibrating its electric vehicle strategy as the Biden administration plans to downshift the EV transition as demand plummets.
Thousands of auto dealers nationwide recently warned the ‘climate change warriors’ in the White House: the 2030 EV push is backfiring.
“Currently, there are many excellent battery electric vehicles available for consumers to purchase. These vehicles are ideal for many people, and we believe their appeal will grow over time. The reality, however, is that electric vehicle demand today is not keeping up with the large influx of BEVs arriving at our dealerships prompted by the current regulations. BEVs are stacking up on our lots,” the dealers said.
They warned: “Already, electric vehicles are stacking up on our lots which is our best indicator of customer demand in the marketplace.”
A recent note by RBC analyst Tom Narayan said the EV slowdown is far from over:
“Key takeaways thus far from earnings season are that the EV slowdown is not showing any evidence of an inflection, Level 4 autonomy headwinds continue to persist, and fears over supplier inventory overbuild are likely overblown.
Analyst Adam Jonas at Morgan Stanley suggested consolidation is coming to the industry:
Given that Biden’s 2030 EV mandate is in full collapse, the downturn in the EV space will likely continue through the second half of this year.
Oddly, Biden’s push for chip manufacturing has worked (at least Nancy Pelosi made over $1 million on NVIDIA). I am so glad the Biden/Congress are making Pelosi even wealthier. /sarc
Biden and Pelosi, two honorary Venezuelan plutocrats.
