{"id":304435,"date":"2024-02-26T13:06:47","date_gmt":"2024-02-26T12:06:47","guid":{"rendered":"https:\/\/climatescience.press\/?p=304435"},"modified":"2024-02-26T13:06:50","modified_gmt":"2024-02-26T12:06:50","slug":"just-how-bad-are-evs","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=304435","title":{"rendered":"Just How Bad are EVs?"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Master Resource<\/a><\/p>\n\n\n\n

By\u00a0<\/em>Allen Brooks<\/a><\/p>\n\n\n\n

\n

\u201cThis isn\u2019t the Field of Dreams: \u2018If you build it, he will come.\u2019 \u2026  Automakers are wrestling with the reality of the EV market as politicians continue to believe in fairy tales about them.\u201d<\/p>\n<\/blockquote>\n\n\n\n

A recent headline on The Drive<\/a> website read: \u201cFord Slashes 2023 Mustang Mach-E Price by up to $8,100 With 0% APR<\/a>.\u201d<\/em>  More interesting was the tagline under the headline. \u201cNow\u2019s a really great time to nab a solid, yet slow-selling EV.\u201d<\/em> <\/p>\n\n\n\n

Even the advertising department at Ford Motor Company cannot hide the company\u2019s problem with EVs \u2013 \u201cslow-selling!\u201d<\/strong><\/em> Customers do not want them to the degree politicians believe and have incentivized and mandated. As a report on EV battery costs stated, technology should lead policy rather than the other way around. We are hard-pressed to cite any example of a policy leading the technology. <\/p>\n\n\n\n

After 120 years of history, batteries and EVs remain heavy, expensive; destructive of the environment during the mining of the minerals needed; limited in charging range; and poor performers in extreme cold and hot climate conditions. Despite the rhetoric from EV believers, none of these problems have been solved. So, the solution is to give buyers subsidies and provide huge credits to automakers to build them. <\/p>\n\n\n\n

This isn\u2019t the Field of Dreams: \u201cIf you build it, he will come.\u201d I don\u2019t remember the government demanding that people wire their homes for electricity or purchase telephones, now cell phones. The latter demonstrates the technology over policy dictum. How many people remember the shoebox-sized cell phones with limited battery life we started with, let alone how few people purchased them? Technology solved the size and battery-life issues and the market took off. <\/p>\n\n\n\n

Ford\u2019s eMustang; Star to Loser<\/strong><\/h4>\n\n\n\n
\"\"<\/figure>\n\n\n\n

EVs have been a disaster for domestic auto manufacturers with Ford being the poster child. Last year Ford lost $4.7 billion on EV revenues of $5.9 billion. The company estimates it will lose $5-5.5 billion on EVs this year. The company\u2019s goal of reaching an 8% operating margin by 2026 was dismissed by Ford\u2019s CFO John Lawler during his presentation to investment analysts earlier this year. \u201cI don\u2019t think anybody believes we can bridge from here to 8% by 2026,\u201d he said. The EV division \u201cneeds to be profitable and provide a return.\u201d Shareholders, not only taxpayers and automobilists, are losers.<\/p>\n\n\n\n

Ford\u2019s publicists crystallized their problem. \u201cMany North American customers interested in buying EVs are unwilling to pay premiums for them over gas or hybrid vehicles, sharply compressing EV prices and profitability,\u201d they wrote. Like any good marketer, slashing prices on leftover merchandise is required.  The chart below from The Drive shows the cuts for left-over 2023 EVs Ford has announced.  They are hoping this step will spur buyers and help clean out dealer lots. <\/p>\n\n\n\n

EV Price Cuts may Attract Buyers but Add to Ford\u2019s Loss per Vehicle<\/h4>\n\n\n
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\"\"<\/figure>\n<\/div>\n\n\n

EV companies Rivian and Lucid posted larger EV losses than forecast and reduced their 2024 production outlooks. Rivian is cutting 10% of its salaried staff. The company delivered 50,122 EVs last year but produced 57,232. They are projecting producing 57,000 EVs this year, although Wall Street analysts expected 66,000. The company\u2019s operating margin was a negative $2,030 million in 2023, or a loss of $40,500 per vehicle sold. <\/p>\n\n\n\n

Rumors are that Biden\u2019s Environmental Protection Agency will delay its revised tailpipe emissions rules for model years 2026\u20132032. Those were the rules that backed up their estimate that two-thirds of vehicles sold in 2032 would need to be EVs to meet the new standards. If the delay rumor is true, it justifies the delay in EV investments automakers have announced. It is another black eye for Biden\u2019s green agenda. <\/p>\n\n\n\n

It will do little to change consumer minds about the problems with EVs. It will go a long way to confirming that EVs are a niche auto market rather than a universal solution for America\u2019s travel. We expect the EPA\u2019s delay will be pitched as an appeasement for voters upset with Joe Biden\u2019s economic policies, but we wonder how great the outrage will be from the environmentalists. <\/p>\n\n\n\n

Hybrid Fall-back?<\/strong><\/p>\n\n\n\n

One can already see the pushback to market realities from these environmentalists. Aaron Regunberg, senior policy counsel at consumer group Public Citizen and a former member of the Rhode Island House of Representatives, commented<\/a>, \u201cPutting more gasoline-powered cars on roads and saying that\u2019s good for the climate is just misleading.\u201d  <\/p>\n\n\n\n

This is an opening shot in the Public Citizen\u2019s attack on hybrids and Toyota Motor Corporation, the world\u2019s largest auto manufacturer and the number one provider of hybrid vehicles, in particular.  Public Citizen has urged attorneys general in states including Oregon, New York, Rhode Island, and Illinois to look into Toyota\u2019s marketing of hybrids as being misleading.  No surprise about this collection of states. <\/p>\n\n\n\n

Toyota has long questioned the market for EVs and has aggressively pushed its hybrid technology starting with its Prius model in 1997.  Last year in the U.S., 1.4 million hybrids were sold compared to 1.1 million EVs.  And that comes with hybrids scoring only a $2,500 per vehicle subsidy versus the $7,500 awarded EVs. <\/p>\n\n\n\n

What environmentalists continue to ignore is that EVs are mineral-intensive, which in most cases come from overseas and often are mined with terrible environmental devastation and human suffering.  Toyota has shown it can produce 90 hybrids with the minerals used in one EV battery.  Hybrids deliver better mileage than gas-powered vehicles.  Because of the emissions legacy of EVs during their assembly, as demonstrated by Volvo in studies of its comparable gas and EV models manufactured in South Carolina<\/a>, it takes years of driving with zero emissions from the vehicle to reach parity with gasoline vehicles.  The time needed to offset the legacy emissions is also influenced by the emissions of the electricity provider used to charge the EV. It can take 6-7 years optimistically or 8-10 years of driving to offset the legacy emissions. [1]<\/strong><\/p>\n\n\n\n

Still, hybrids will reduce emissions considerably, Net Zero aspirations aside. It could be viewed as a better alternative to EVs while better vehicle technologies are developed. But do taxpayers need to be involved?<\/p>\n\n\n\n

Ford\u2019s publicists have nailed the reality of the EV market \u2013 slow-selling<\/em>. There are many issues that customers face when purchasing vehicles, especially EVs. Contrary to the optimists, vehicles are not bought the same way cell phones are \u2013 they cost much more and are purchased less frequently. Automakers are wrestling with the reality of the EV market as politicians continue to believe in fairy tales about them. <\/p>\n\n\n\n

\u2014\u2014\u2014\u2014\u2014\u2014\u2014-<\/p>\n\n\n\n

[1]<\/strong> Volvo\u2019s mid-2021 study calculated the kilometers based on electricity generation mixes \u2013 global, EU28, and wind.  The numbers are: Global 146,000 km (90,709 miles); EU28: 84,000 km (52,189 miles); and wind 47,000 km (29,201) miles. A key conclusion was was that an EV generates 70% more carbon emissions when built than an ICE vehicle. <\/p>\n\n\n\n

\u2014\u2014\u2014\u2014\u2014<\/p>\n\n\n\n

For more of G. Allen Brooks<\/a>, see Energy Musings: Insights into the Energy Industry<\/a>, where this post first appeared. It has been slightly revised for publication here.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

A recent headline on\u00a0The Drive\u00a0website read:\u00a0\u201cFord Slashes 2023 Mustang Mach-E Price by up to $8,100 With 0% APR.\u201d\u00a0 More interesting was the tagline under the headline.\u00a0\u201cNow\u2019s a really great time to nab a solid, yet slow-selling EV.\u201d\u00a0<\/p>\n","protected":false},"author":121246920,"featured_media":304441,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"A recent headline on\u00a0The Drive\u00a0website read:\u00a0\u201cFord Slashes 2023 Mustang Mach-E Price by up to $8,100 With 0% APR.\u201d\u00a0 More interesting was the tagline under the headline.\u00a0\u201cNow\u2019s a really great time to nab a solid, yet slow-selling EV.\u201d\u00a0","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691821977,691827210,691827208,691827209,691827211],"class_list":{"0":"post-304435","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-electric-vehicles-evs","9":"tag-ev-battery-costs","10":"tag-ev-price-cuts","11":"tag-ford-mustang-march-e","12":"tag-heavy-and-expensive","14":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0ford_mustang_mach_e_gt_performance_edition_nite_pony_package_2023_5k_4-2560x1440-1.jpg?fit=2560%2C1440&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1hcf","jetpack-related-posts":[{"id":427153,"url":"https:\/\/climatescience.press\/?p=427153","url_meta":{"origin":304435,"position":0},"title":"Big Auto’s Bitter Pill: The Electric Boom Has Hit the Wall","author":"uwe.roland.gross","date":"02\/20\/2026","format":false,"excerpt":"A growing industry consensus that the rapid, widespread adoption of electric vehicles (EVs) - 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That\u2019s What Trump Cost Detroit.\u201d The thesis\u2026","rel":"","context":"In \"Bill Saporito\"","block_context":{"text":"Bill Saporito","link":"https:\/\/climatescience.press\/?tag=bill-saporito"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQMLzuNE70UHohJzPmKJvGLab0BqlQ5GYJpVHcXmqSuDzzsP9NQ526ToFcK1APU5TkXGs3lsErcIcIyC6SM_XRhqxczl00laPntleeaXeS0dCGc_XVUpFDSUXaTFTyAKrGII_vmqs1175J0MKpYoGjepD6gehA.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQMLzuNE70UHohJzPmKJvGLab0BqlQ5GYJpVHcXmqSuDzzsP9NQ526ToFcK1APU5TkXGs3lsErcIcIyC6SM_XRhqxczl00laPntleeaXeS0dCGc_XVUpFDSUXaTFTyAKrGII_vmqs1175J0MKpYoGjepD6gehA.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQMLzuNE70UHohJzPmKJvGLab0BqlQ5GYJpVHcXmqSuDzzsP9NQ526ToFcK1APU5TkXGs3lsErcIcIyC6SM_XRhqxczl00laPntleeaXeS0dCGc_XVUpFDSUXaTFTyAKrGII_vmqs1175J0MKpYoGjepD6gehA.jpeg?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQMLzuNE70UHohJzPmKJvGLab0BqlQ5GYJpVHcXmqSuDzzsP9NQ526ToFcK1APU5TkXGs3lsErcIcIyC6SM_XRhqxczl00laPntleeaXeS0dCGc_XVUpFDSUXaTFTyAKrGII_vmqs1175J0MKpYoGjepD6gehA.jpeg?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQMLzuNE70UHohJzPmKJvGLab0BqlQ5GYJpVHcXmqSuDzzsP9NQ526ToFcK1APU5TkXGs3lsErcIcIyC6SM_XRhqxczl00laPntleeaXeS0dCGc_XVUpFDSUXaTFTyAKrGII_vmqs1175J0MKpYoGjepD6gehA.jpeg?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":257611,"url":"https:\/\/climatescience.press\/?p=257611","url_meta":{"origin":304435,"position":4},"title":"A Growing Number of US Car Shoppers are rejecting EV\u2019s","author":"uwe.roland.gross","date":"05\/15\/2023","format":false,"excerpt":"Despite strong EV sales growth, the ratio of U.S. car shoppers uninterested in buying an EV is increasing, according to a new\u00a0J.D. Power survey.","rel":"","context":"In \"Electric cars\"","block_context":{"text":"Electric cars","link":"https:\/\/climatescience.press\/?tag=electric-cars"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/00new-delhi-to-get-more-ev-charging-stations-some-with-battery-swapping-facilities.jpg?fit=1200%2C765&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/00new-delhi-to-get-more-ev-charging-stations-some-with-battery-swapping-facilities.jpg?fit=1200%2C765&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/00new-delhi-to-get-more-ev-charging-stations-some-with-battery-swapping-facilities.jpg?fit=1200%2C765&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/00new-delhi-to-get-more-ev-charging-stations-some-with-battery-swapping-facilities.jpg?fit=1200%2C765&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/00new-delhi-to-get-more-ev-charging-stations-some-with-battery-swapping-facilities.jpg?fit=1200%2C765&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":271341,"url":"https:\/\/climatescience.press\/?p=271341","url_meta":{"origin":304435,"position":5},"title":"The potential looming auto industry fiasco","author":"uwe.roland.gross","date":"08\/04\/2023","format":false,"excerpt":"And then it gets even worse from there. 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