via dailysignal:
A coalition of nearly 4,000 auto dealers on Tuesday sent a letter to President Joe Biden explaining why his plans to force Americans into electric vehicles are unworkable.
The bottom line: Despite subsidies to car manufacturers to make the EVs, and tax credits for drivers to buy the cars, only 7% of new vehicle sales are electric vehicles, compared with Biden’s goal of 60% in 2030 and 66% in 2032.
The auto dealers wrote that “the supply of unsold [battery electric vehicles] is surging, as they are not selling nearly as fast as they are arriving at our dealerships—even with deep price cuts, manufacturer incentives, and generous government incentives.”
Their letter follows the announcement last month from GM and Ford that they are cutting back on projections of EV sales and lowering production targets for the cars and batteries because Americans prefer to buy other cars.
Ford Chief Financial Officer John Lawler, who postponed $12 billion in EV investments, said, “Given the dynamic EV environment, we are being judicious about our production and adjusting future capacity to better match market demand.” Similarly, GM described “evolving EV demand” as a reason for slowing production of electric pickup trucks.
Ford and GM describe EV demand as “dynamic” and “evolving,“ but in reality, it is static and devolving.
Auto dealers are getting stuck with the unwanted cars. Dealers have to pay in advance, and if the cars sit on the lots without being sold, their funds are tied up, and they don’t have room for better-selling vehicles.