Automotive industry leaders are expressing concerns over the future of electric vehicles as sales slow and inventories pile up. Executives from major car manufacturers, including General Motors and Mercedes-Benz, have voiced doubts about the viability of their EV strategies, which are worth billions of dollars.
GM’s CEO, Mary Barra, who has been a strong advocate for EVs, announced during the company’s Q3 earnings call that GM is stepping back from its goal to produce 100,000 EVs in the second half of this year and another 400,000 by the first half of 2024. The company did not provide a new timeline for achieving these targets.
Tesla’s Elon Musk also warned of potential economic issues that could dampen vehicle demand, even for the leading EV manufacturer. Mercedes-Benz, which has had to offer significant discounts on its EVs to boost sales, described the EV market as “brutal.”
Most EVs are currently selling below their sticker price, and manufacturers are offering incentives of nearly 10% to encourage sales. However, these strategies are not proving effective, as EVs are taking longer to sell than their gasoline counterparts due to concerns over cost, infrastructure, and lifestyle changes.
Ford was the first to adjust its EV strategy, extending its deadline to reach annual EV production of 600,000 by a year and abandoning its 2026 target to build 2 million EVs. Honda also scrapped plans to co-develop affordable EVs with GM, citing the unpredictable EV market.
Read more at Business Insider.