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Blaze News investigates: Biden and Newsom’s electric vehicle schemes are going up in smoke

The Biden administration has made promoting electric vehicles a goal in its climate change plan, but recent developments have hindered efforts to replace gasoline-powered vehicles with electric ones.

Despite huge subsidies and government mandates, demand for electric vehicles has plummeted after a period of increased interest. Blaze News spoke to industry insiders to find out why the lack of demand continues despite government efforts to encourage and/or mandate the switch to electric vehicles.

“Electric cars just aren’t realistic for a lot of people.”

Companies in the automotive industry can no longer ignore the lack of demand, with many announcing their withdrawal from the market after the end of 2023.

In April, Ford Motor Company Announced Ford has made some course corrections that could seriously undermine its campaign to get Americans to adopt electric vehicles. The company announced it would significantly scale back its electric vehicle production plans, including canceling two new electric vehicle models, an SUV and a pickup truck, and also scaled back efforts to build factories to make EVs and parts.

Ford reported an overall profit of $4.3 billion in 2023, but suffered a huge $4.7 billion loss from its Model e EV division. according to Go to Yahoo Finance.

EV maker Rivian reported a staggering loss of $43,000 per vehicle sold in the last fiscal period, but the company said it believes future sales will be profitable.

Even Tesla, once considered the dominant EV brand, has struggled to keep up with the pace of electric vehicle sales growth. report It’s the first annual sales decline since the pandemic began.

Tesla on Friday announced a recall of more than 124,000 vehicles over a seatbelt defect but said it would fix the problem with an over-the-air software update. The company’s shares have soared in 2021 but have since fallen sharply. It plummeted Now it’s less than half that value.

Why are automakers turning their backs on electric vehicles? Experts say it’s because demand for them has plummeted.

“Automakers tried to lead first with ideology and then with superior consumer products, and it didn’t work in practice.”

It has become increasingly clear in recent months that demand for electric vehicles is not keeping up with the supply that the federal government is encouraging through subsidies and requirements on industry.

Autotrader editor-in-chief Brian Moody spoke to Blaze Media about the current state of the electric vehicle industry.

“I think the problem with electric cars is that automakers put ideology first and tried to offer a good product to consumers second, but in practice that hasn’t worked,” he explained.

“It’s common knowledge that you can do some repairs yourself on a gasoline-powered car, but that’s not the case with electric cars, which is putting off many buyers. Many of those buyers are early adopters of the technology, Moody said, but that’s a narrow demographic.”

“So they want the latest thing, the latest Apple Watch, the latest Air Jordans. And I think that’s happening with a lot of electric cars. But once those people are gone, or they get what they wanted, you have to start appealing to the average person,” he continued.

To appeal to the general public, Moody says the equation is very simple.

“This is going to be a great addition to your life. It’s going to save you time, it’s going to save you money,” he added. “And it’s going to be more convenient for you. That’s what people are going to buy.”

Ray Huffines, president and CEO of Huffines Auto Dealers in Texas, also told Blaze Media that there isn’t enough public demand for electric vehicles.

“Electric cars are more expensive than regular gasoline cars, and even with incentives they don’t necessarily make them competitively priced. And the incentives are confusing in many ways and have many restrictions on which vehicles qualify and who the buyer’s income is,” Huffines said.

“Demand is not strong, it’s actually slowing. There are plenty of electric cars, but not enough customers,” he added.

He further said the government was trying to force manufacturers to sell cars that would cause losses and not bring profits to dealers.

“Governments can do this, but from a business perspective it’s very problematic as to how on earth manufacturers are going to make a profit,” he concluded.

“It’s a pretty tough fight.”

California Governor Gavin Newsom also tried to lead the nation in forcing Americans to buy electric cars by signing a bill. Presidential Decree In 2020, he announced a total ban on the sale of gasoline-powered vehicles by 2035. The Democrat drew criticism on social media as the expansion of regulations was seen as too strict.

“For decades, we have allowed cars to pollute the air our children and families breathe. Californians should not have to worry that their children will develop asthma because of cars,” Newsom said at the time. “Cars should not exacerbate wildfires or increase the number of smoky days. Cars should not melt glaciers or raise sea levels that threaten our precious beaches and coastlines.”

Moody and Huffines agreed that the plan is unfeasible.

“Yeah, I don’t think so,” Moody said, adding that even places like California, which has more electric vehicle sales than the rest of the U.S., are still far from the goal Newsom has set.

California New Car Dealers Association Said Electric vehicle sales are surging, accounting for 21.5% of sales in the first quarter of 2023. EV Sales increased It increased by 20% in the second quarter, declined slightly in the third quarter, and then dropped significantly from its second quarter high to 15% in the fourth quarter.

“For a company that makes money selling a variety of things, this is still a pretty uphill battle,” Moody said.

Huffines added that EVs only make sense for people who live in residential areas and are not suitable for very densely packed areas.

“There really aren’t any reliable places to charge your car. Cars are expensive. So for people on a budget, with inflation and interest rates right now, people’s budgets are really tight,” Huffines responded.

“They have to make very financial decisions about purchases, including cars, so electric cars just aren’t realistic for many of them,” he concluded.

EV industry advocates argue that the decline in demand is simply a sign of the market maturing, but unless something changes, none of Biden and Newsom’s electric vehicle dreams are likely to come true.

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