Former Chrysler and Home Depot CEO Bob Nardelli talks about the collision between consumer expectations, the outcome of the EV market and the state of the U.S. economy.
With electric vehicle (EV) makers such as Tesla and Rivian recently announcing financial difficulties, Chrysler’s former CEO and chairman has sounded the alarm about the future of the market.
“They’re going through a tough time. These startups are going to have a hard time getting by,” said Bob Nardelli, who was at the helm of Chrysler during the Great Recession. Coast” said.,” Tuesday.
“This is just another problem, another blunder by a regime that wants to start a revolution and one that wants to allow evolution,” he continued. “You can’t force it down the consumer’s throat.”
On the same day as Nardelli’s comments, Tesla stock began to fall due to significant delivery shortfalls. The EV maker produced more than 433,000 vehicles in the first three months of this year, down 12% from the previous quarter, with deliveries down 20 to 387,000. % quarter-over-quarter, the company reported. Analysts had expected the automaker to deliver more than 400,000 units, according to estimates.
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Former Chrysler Chairman and CEO Bob Nardelli predicted that the EV company is “not going to be successful” with “Kabuto: Coast to Coast.” (Getty Images/Images)
Just last month, Rivian announced it would lay off 10% of its salaried employees, even as it expected auto production to be flat. The company said in a regulatory filing that it expects to produce about 57,000 vehicles in 2024, the same number as last year.
Regarding President Biden’s policy of promoting parallel regulations for the zero-emission, EV-only vehicle market, Nardelli is said to have served as Chrysler’s CEO during the Obama-Biden administration.
“They basically said that it would limit the number of Ram trucks they could produce because they would have to significantly increase the average mileage of the internal combustion engine. So they had to produce smaller cars. .The consumer said, ‘No thank you.’ And they had to produce a smaller car.’Then off-ramp,’ Nardelli explained.
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“When I was at Chrysler, the average [car] He was 11 years old. It has now grown to 12.6 years,” adding, “Consumers still say, ‘I decide what I buy.'” [This] The government is not going to force me to make another big mistake with EVs. ”
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A recent survey found that U.S. consumers’ interest in electric vehicles is waning, with 41% of respondents saying they are interested in buying or leasing an EV as their next vehicle, down from 49% a year ago. did.
In the same study, when respondents were asked to choose between two hypothetically identical vehicles of the same price: a hybrid that does not require charging and an EV that requires charging, 83% chose the hybrid. It shows what you did. The most commonly cited reason (66%) was the option to use gasoline, followed by limited EV range (57%) and the inconvenience of charging an EV (52%).
FOX Business’ Daniella Genovese and Breck Dumas contributed to this report.
