{"id":337866,"date":"2024-07-28T09:58:56","date_gmt":"2024-07-28T07:58:56","guid":{"rendered":"https:\/\/climatescience.press\/?p=337866"},"modified":"2024-07-28T09:58:59","modified_gmt":"2024-07-28T07:58:59","slug":"heads-should-roll-over-the-electric-car-fiasco","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=337866","title":{"rendered":"Heads should roll over the electric car fiasco"},"content":{"rendered":"\n
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<\/p>\n\n\n\n

Policymakers have wasted billions chasing a net zero pipe dream. It is time they were held accountable<\/em><\/strong><\/p>\n\n\n\n

Profits at the German auto giant Mercedes plunged on Friday as sales of its slick new range of electric vehicles (EVs) went into freefall.\u00a0Porsche abandoned its sales targets for battery-powered cars<\/a>\u00a0amid waning demand from customers. Ford is losing nearly $50,000 (\u00a339,000) on every EV it sells, while Tesla\u2019s profits dropped 45pc. Meanwhile, battery manufacturers such as Germany\u2019s Varta are getting wiped out. The Telegraph<\/a> has the story.<\/p>\n\n\n\n

Over the last few days, it has become clear that the EV industry is on the brink of collapse. Hundreds of billions of euros, dollars and pounds have been pumped into this industry by political leaders and the subsidy junkies that surround them \u2013 and it is surely time they were held to account for the vast quantities of taxpayer cash that has been wasted.<\/p>\n\n\n\n

In the last few days alone, there has been a steady stream of bad news from auto manufacturers. Mercedes, the company founded by Gottlieb Daimler that pioneered petrol driven cars, is struggling to replicate that success in the battery version. Group net profits were down 21pc on Friday, mostly on falling sales of its new range of EVs. Earlier in the week, its great rival Porsche watered down plans for its electric models.<\/p>\n\n\n\n

Across the Atlantic, Ford reported that profits were down by 35pc in the latest quarter amid losses in its EV unit. And Tesla slashed prices and offered generous financing deals to try and revive flagging demand.<\/p>\n\n\n\n

It is even worse for component manufacturers. Shares in Germany\u2019s Varta are down by 70pc over the last month amid reports that the company may have to be rescued from bankruptcy after making heavy losses on batteries for hybrid sports cars. This week, the Belgium chemicals group Umicore announced a \u20ac1.6bn (\u00a31.4bn) hit, as manufacturers warned of waning EV demand, and it postponed plans for a battery recycling plant.<\/p>\n\n\n\n

The list goes on and on. In reality, the EV balance sheet looks to be awash with red ink. It is not hard to work out why. Costs are too high, as companies such as Ford have discovered, with electric cars much more expensive to produce than their traditional petrol rivals, and with shortages of critical materials pushing prices higher all the time.<\/p>\n\n\n\n

There is too much capacity in the industry, with companies over-investing in too many factories and distribution centres. Demand for the end product has started to crumble, with consumers increasingly nervous over what may become obsolete technology. Insurance and maintenance costs are proving far higher than expected for many, once the vehicles are actually on the road.<\/p>\n\n\n\n

And all that was before the Chinese entered the market with a new range of slick, cheap vehicles<\/a>. The word \u201cbloodbath\u201d is used too often in business journalism. But right now, it may be the only one appropriate to describe the state of the Western EV industry.<\/p>\n\n\n\n

Surely it is time that political heads started to roll for the catastrophe that is now unfolding. Policymakers, under pressure from industrial and climate change lobby groups, picked this \u201cwinner\u201d and spent eye-watering amounts of taxpayer money on it. <\/p>\n\n\n\n

In 2019, France\u2019s President Macron grandly announced a Franco-German plan to dominate battery production, with \u20ac700m invested by France and another \u20ac1bn in Germany. The EU proudly boasts that \u20ac80bn has been invested in the \u201cEV value chain\u201d as part of its Green New Deal, but when the books are finally opened it is unlikely they will be good.<\/p>\n\n\n\n

Read the full story here<\/a>.<\/p>\n\n\n\n

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

Policymakers have wasted billions chasing a net zero pipe dream. It is time they were held accountable<\/p>\n","protected":false},"author":121246920,"featured_media":337869,"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":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"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":[691829888,691821977,691818154],"class_list":{"0":"post-337866","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-automotive-industry","9":"tag-electric-vehicles-evs","10":"tag-net-zero","12":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/OIG.yx_C2rcCyzGheFi.jpeg?fit=1024%2C1024&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1pTs","jetpack-related-posts":[{"id":440778,"url":"https:\/\/climatescience.press\/?p=440778","url_meta":{"origin":337866,"position":0},"title":"\u201cPotentially Existential Crisis\u201d: Carmakers Lose Nearly \u20ac60 Billion as E-Car Bet Goes Wrong","author":"uwe.roland.gross","date":"21\/04\/2026","format":false,"excerpt":"European and US carmakers recorded nearly \u20ac60 billion in impairments and write-downs on electric vehicle (EV) investments during 2025. These were not pure operating cash losses in every case but accounting charges on overbuilt battery factories, development programs, joint ventures, and specific models that no longer made economic sense due\u2026","rel":"","context":"In \"China market\"","block_context":{"text":"China market","link":"https:\/\/climatescience.press\/?tag=china-market"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/04\/0-Potentially-Existential-Crisis-Carmakers-Lose-Nearly-E60-Billion-as-E-Car-Bet-Goes-Wrong.jpg?fit=784%2C1168&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/04\/0-Potentially-Existential-Crisis-Carmakers-Lose-Nearly-E60-Billion-as-E-Car-Bet-Goes-Wrong.jpg?fit=784%2C1168&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/04\/0-Potentially-Existential-Crisis-Carmakers-Lose-Nearly-E60-Billion-as-E-Car-Bet-Goes-Wrong.jpg?fit=784%2C1168&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/04\/0-Potentially-Existential-Crisis-Carmakers-Lose-Nearly-E60-Billion-as-E-Car-Bet-Goes-Wrong.jpg?fit=784%2C1168&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":338067,"url":"https:\/\/climatescience.press\/?p=338067","url_meta":{"origin":337866,"position":1},"title":"Electric car fiasco \u201con the brink of collapse\u201d","author":"uwe.roland.gross","date":"31\/07\/2024","format":false,"excerpt":"The best news for the EV industry this month is that Ford is only losing $50,000 a car now on its electric vehicles. 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The one sure bet in the\u2026","rel":"","context":"In \"China\"","block_context":{"text":"China","link":"https:\/\/climatescience.press\/?tag=china"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/OIG-40.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/OIG-40.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/OIG-40.jpeg?fit=1024%2C1024&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/OIG-40.jpeg?fit=1024%2C1024&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":285981,"url":"https:\/\/climatescience.press\/?p=285981","url_meta":{"origin":337866,"position":2},"title":"The EV bubble popped: VW orders are down 50%, Ford loses $38,000 on each car, Toyota chief, says \u201cpeople are waking up\u201d","author":"uwe.roland.gross","date":"01\/11\/2023","format":false,"excerpt":"Errr, what\u2019s going on here? 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From JoNova By Jo Nova Godzilla Image by\u00a0seanselbie\u00a0from\u00a0Pixabay Last week the EV bubble popped It\u2019s been a crushing week for the EV industry as the bad news\u2026","rel":"","context":"In \"electric vehicles (EVs)\"","block_context":{"text":"electric vehicles (EVs)","link":"https:\/\/climatescience.press\/?tag=electric-vehicles-evs"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/image-6.png?fit=1024%2C1024&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/image-6.png?fit=1024%2C1024&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/image-6.png?fit=1024%2C1024&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/image-6.png?fit=1024%2C1024&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":305167,"url":"https:\/\/climatescience.press\/?p=305167","url_meta":{"origin":337866,"position":3},"title":"Germany\u2019s Dream of 15 Million Electric Vehicles Is Fading Away","author":"uwe.roland.gross","date":"27\/02\/2024","format":false,"excerpt":"Standing at the front of the room at an auto industry association\u2019s new year reception in Berlin this week, BMW CEO Oliver Zipse had reason to feel vindicated.","rel":"","context":"In \"battery electric vehicle (BEVs)\"","block_context":{"text":"battery electric vehicle (BEVs)","link":"https:\/\/climatescience.press\/?tag=battery-electric-vehicle-bevs"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/OIG-69.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/OIG-69.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/OIG-69.jpeg?fit=1024%2C1024&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/OIG-69.jpeg?fit=1024%2C1024&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":299874,"url":"https:\/\/climatescience.press\/?p=299874","url_meta":{"origin":337866,"position":4},"title":"The West\u2019s humiliating electric car climbdown has begun","author":"uwe.roland.gross","date":"05\/02\/2024","format":false,"excerpt":"France\u2019s President Macron had a plan to make millions of electric vehicles a year. 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