|
By
Ian Krietzberg
October
26, 2023
Toyota has an important warning for
electric vehicle enthusiasts
Despite major investments in EVs,
automakers have been sounding the alarm.
The electric vehicle roadway has been bumpy lately. The battery
supply chain has presented an expensive challenge to automakers. Both
price and a lack of charging infrastructure have consumers holding off
on making the EV switch. And in a price war led by Elon Musk's Tesla (TSLA)
- Get Free Report, the margins of EVs, an already largely unprofitable
style of vehicle, are continuing to plummet.
Amid this challenging environment, Toyota Chairman Akio Toyoda said
that people are "finally seeing reality" regarding EVs.
Toyota's pronouncement came a day after General Motors (GM) - Get
Free Report and Honda (HMC) - Get Free Report canceled their proposed
partnership to develop more affordable electric vehicles. The goal of
the partnership was to create and sell EVs for less than $30,000 by
2027.
But the EV environment isn't feeling as lucrative to automakers as it
once did.
“After extensive studies and analysis, we have come to a mutual
decision to discontinue the program. Each company remains committed to
affordability in the EV market,” GM spokesman Darryll Harrison told
CNBC. “Each company remains committed to affordability in the EV
market.”
Toyoyta unveiled a series of concept EVs during
the Japan Mobility Show Oct. 26. Bloomberg/Getty Images
GM on the same day said that it was delaying the production of its
coming EV lineup, which includes the Chevy Equinox EV, Chevy Silverado
EV and GMC Sierra Denali EV. GM CEO Mary Barra said that the brief
delay will “make the trucks more efficient and less expensive to
produce, and therefore more profitable."
The company also ditched a target to make 400,000 EVs by mid-2024, but
said that it is still planning to produce 1 million EVs by 2025.
“It’s clear that we’re dealing with a lot of near-term uncertainty,”
Barra said. “The transition to EVs, that will have ups and downs.”
Last week, Ford (F)
- Get
Free Report said it was slowing down the production of its
F-150 Lightning truck.
Even Tesla, widely regarded as the leader in the sector, missed Street
delivery expectations for the quarter before posting weaker-than-expected
earnings. And CEO
Elon Musk said high interest rates were to blame.
“I have continued to say what I see as reality,” Toyoda, who recently
stepped down as Toyota's CEO, said. "There are many ways to climb the
mountain that is achieving carbon neutrality."
One of these alternative methods involves hybrids and plug-in hybrids,
something that has long made up a significant share of Toyota's EV
sales.
"The reason (hybrids) are so powerful is because they fit the needs of
so many customers," Toyota North America's vice president of sales Bob
Carter told CNBC last
year. "The demand for hybrid has been strong. We expect it to continue
to grow as the entire industry transitions over to electrification
later this decade."
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
509 995 1879 Cell, Pacific Time Zone.
General office: 509-254 6854
4501 East Trent Ave.
Spokane, WA 99212
|
