Our good friend Anton Wahlman sounds off on Ford turning off the juice and stepping on the gas.
Ford is about to dramatically increase its profitability of making gasoline and diesel vehicles, and the dominant driver is that the “EV mandate” is going away. From CAFE fines to GHG credits, Ford will no longer have its gasoline vehicles subsidize unprofitable electric vehicles (EVs).
Until 2025, Ford’s profitability was sabotaged by the US government “thanks” to its insistence that Ford must sell a certain portion of its output in the form of EVs. This portion would increase dramatically from 2025 all the way to a point in the 2030s when effectively 100% of everything sold must be EVs.
The problem is that EVs are unprofitable, in part because customers don’t want them. It’s like having the government forcing everyone to eat a steady diet of tofu and rice cakes, banning burger joints and KFC by taxing them out of business within a decade.
Until now, EVs were heavily subsidized and the consumer purchased them well below true cost, mostly thanks to the automakers being forced to sell an ever-increasing EV mix against the will of the consumer. That meant that gasoline vehicles had to carry a higher price burden. It was barely six years ago that you could buy a basic new vehicle for $16,000. Today, the prices have gone up radically, in large part because of the EV mandates, most importantly the GHG credits, fines and mandates. The consumer has had no idea what went on behind the scenes to make America poorer, as the price to buy a new vehicle has skyrocketed “thanks” to the government EV mandate.
Do you agree?
Full article at the link.
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