Ford Motor Company takes another big loss in its electric vehicle (EV) department. Reporting a loss of $1.224 billion for the third quarter of the year. But they aren’t the only ones. Volkswagen is also taking a big loss. For the first time in the company’s history, it is closing factories in Germany. This further proves that the EV market is unstable and not the future of the automobile market.
The Wall Street Journal Editorial Board writes,
“Germany’s auto industry is trapped in a vise between higher energy prices that drive up the cost of production, and electric-vehicle mandates that drive down sales. VW is cracking under the pressure. Electricity prices for large industrial users in Germany are well above the European Union average, let alone the U.S., China or Japan. This is largely the result of Berlin’s decision to eschew coal and nuclear power in favor of renewables that are more expensive and less reliable. Natural-gas prices have been on a rollercoaster since Russia’s 2022 invasion of Ukraine disrupted gas supplies. VW is the latest of many companies to scale back production in Germany to escape these costs.”
The Biden-Harris administration has put our country on the same path as Europe, with an EV mandate to have 50 percent of all new vehicle sales be electric by 2030.
“The EU requires that EVs constitute a higher share of vehicle sales each year, with internal-combustion engines phased out by 2035. This is forcing companies such as VW to divert large sums of investment capital to making EVs despite chronically soft sales.”
Power The Future Founder Daniel Turner joined Fox Business to discuss the closing of Volkswagen factories and electric vehicle mandates.
“We have a similar (electric vehicle) mandate in America, the Biden/Harris executive order, which mandates that half of all cars sold by 2030 have to be electric. If your car dealer, how do you mandate that? Do you get fined if you sell four combustion engines? You can’t sell a fifth until I sell four EVs; this mandate is still on the books. I’m sure the Trump Administration will rescind it, but if Kamala wins next week, that guarantees that she will double down on this.”
Daniel’s full interview with Fox Business can be found here