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Transportation

Auto Execs Are Coming Clean: EVs Aren't Working (businessinsider.com) 352

Amiga Trombone shares a report from Insider: With signs of growing inventory and slowing sales, auto industry executives admitted this week that their ambitious electric vehicle plans are in jeopardy, at least in the near term. Several C-Suite leaders at some of the biggest carmakers voiced fresh unease about the electric car market's growth as concerns over the viability of these vehicles put their multi-billion-dollar electrification strategies at risk. Among those hand-wringing is GM's Mary Barra, historically one of the automotive industry's most bullish CEOs on the future of electric vehicles. But this week on GM's third-quarter earnings call, Barra and GM struck a more sober tone. The company announced with its quarterly results that it's abandoning its targets to build 100,000 EVs in the second half of this year and another 400,000 by the first six months of 2024. GM doesn't know when it will hit those targets.

While GM's about-face was somewhat of a surprise to investors, the Detroit car company is not alone in this new view of the EV future. Even Tesla's Elon Musk warned on a recent earnings call that economic concerns would lead to waning vehicle demand, even for the long-time EV market leader. Meanwhile, Mercedes-Benz -- which is having to discount its EVs by several thousand dollars just to get them in customers' hands -- isn't mincing words about the state of the EV market. "This is a pretty brutal space," CFO Harald Wilhelm said on an analyst call. "I can hardly imagine the current status quo is fully sustainable for everybody."
"It's clear that we're dealing with a lot of near-term uncertainty," said Barra. "The transition to EVs, that will have ups and downs."
Toyota Chairman Akio Toyoda said that people are "finally seeing reality" regarding EVs. "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," such as hybrids and plug-in hybrids which have 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."
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Auto Execs Are Coming Clean: EVs Aren't Working

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  • by haruchai ( 17472 ) on Friday October 27, 2023 @10:15PM (#63960397)

    and by a bigger margin. They should have been the ones to bring something like the Volt to production as well as a hybrid work truck like what Via Motors originally intended

    • GM killed the Volt because they (stupidly) though the world was ready for 100% EVs. Maybe in California, but the rest of the US has terrible charging infrastructure that exists in theory, but maybe works well 25% of the time. (Slow charging and broken charging is common.) The Volt still works very well, if you can get your hands on one.

  • by MpVpRb ( 1423381 ) on Friday October 27, 2023 @10:16PM (#63960401)

    Only Tesla has decent charging options

    • by slashdot_commentator ( 444053 ) on Saturday October 28, 2023 @12:03AM (#63960613) Journal

      This is all freaking moot anyway. The NA manufacturers are all moving to Tesla compatible chargers anyway. Its not an viable excuse for competitive failure to Tesla.

      • Will they offer a retrofit kit (as a recall) for every existing CCS car on the market? No? Oh I see, it's just another way to screw people over and differentiate "old EVs" from the new models.

      • The problem was never the connector. It's the payment options.

        No, I am not downloading your app and subscribing to your service to get a quick charge. What a fucking joke this is.

    • >"Only Tesla has decent charging options"

      That is not "the" problem, as if that is all that matters. There are advantages with EVs and problems with EVs, as well. And there are a LOT of people that just hand-wave the problems and think mandating EV will make the problems magically disappear. It won't.

      The two primary problems are vehicle cost and charging speed for those who cannot charge at home- and there are a LOT of such people. Those people don't want to be forced to go out and spend 10 to 50 time

  • Poor Execs (Score:5, Insightful)

    by Hank21 ( 6290732 ) on Friday October 27, 2023 @10:19PM (#63960407)
    Lack of determination is the problem. Interest rates get jacked high and people stop buying cars (gas cars included) and the suits blame EV's as the reason? Suck it up, take lower bonuses and reinvest in lowering production costs to protect long term profit. This looks like a poker game to me - who's bluffing?
    • Lack of determination is the problem.

      That and short-term profit goals.

      This is a long-term thing.

    • Lack of humility (Score:3, Interesting)

      by ghoul ( 157158 )
      GM's problem is they are trying to behave like a Big 3 in the EV market. They are at best a Hyundai, more a Lada in the EV market. They are far behind technologically so they need to come in with cheap models selling as loss leaders to grab market share. Instead they are trying to make profits on EVs. Why would people buy their crap at premium prices?
    • Re:Poor Execs (Score:4, Insightful)

      by cowdung ( 702933 ) on Saturday October 28, 2023 @01:17AM (#63960769)

      Yeah, headline should be: MBAs scratch their heads and don't know what to do.

      MBAs realize they don't really know much about products or how to ramp up production in a new competitive world. Expecting to make money of the coattails of innovators that died 100 years ago, they can't explain how they can't make money doing new things. In response, they suggest that we go back to the old way of doing things that made them money for the last 100 years.

      Henry Ford was so inspiring, lets stick to his tech. We know that'll work. Building batteries would require us to actually have to take risks and work for our bonuses.
      EVs are broken.

  • by backtick ( 2376 ) on Friday October 27, 2023 @10:21PM (#63960409) Homepage Journal

    Seriously, EVs are racing into high percentages. GM and others are falling behind in capabilities so of course it’s because “no one wants them” when the issue is “no one wants the fairly bad ones these automakers put out when forced to and while trying to kill the market”.

    https://www.ev-volumes.com/cou... [ev-volumes.com]

    Global EV Sales for 2023 H1

    By Roland Irle, EV-Volumes
    Global EV sales continue strong. A total of 6 million new Battery Electric Vehicles (BEV) and Plug-in Hybrids (PHEV) were delivered during the first half of 2023, an increase of +40 %. 4,27 million were pure electric BEVs and 1,76 million were PHEVs. Preliminary July results show +40 % growth again. The regional growth pattern has shifted: China EV sales increased by +37 % in 2023 H1 y/y, compared to +82 % in 2022 vs 2021. Sales in Western and Central Europe were up +28 % in H1 compared to just +15 % growth in 2022. EV sales in USA and Canada are +50 % higher YTD to June than last year. EV sales outside the aforementioned markets increased by 102 %, albeit from a low base. Overall vehicle markets saw a considerable recovery, with +17 % y/y growth in Europe in H1 but weaker and more volatile in China. The global light vehicle market was 11 % higher in 2023 H1 than in 2022 H1 but still trailed the 2015-2019 average by five million units on an annualized basis.

    EV shares continued to climb in all markets. BEVs (10 %) and PHEVs (4,1 %) stood for 14,1 % of global light vehicle sales at the close of H1, compared to 11,3 % in 2022 H1. Norway had the highest market share of EVs in H1 (BEVs 75 % + PHEVs 6 %), China had 30,5 %, Europe 19,7 % and USA 8,7 %.

    • by Rei ( 128717 )

      It's not capabilities per se, but rather margins. Excepting Tesla and some Chinese companies (mainly BYD), EV margins in the auto industry are awful. Usually in the rough ballpark of "zero". And that's automotive margins, not net margins. Ford's EV division for example is en route to lose $4,5 billion this year.

      GM has always talked big but hardly tries. Their engineering solutions and volumes scream "don't take me seriously". Ford actually seems to care. But dammit, they really need to get their COG

      • by slashdot_commentator ( 444053 ) on Saturday October 28, 2023 @12:08AM (#63960629) Journal

        Usually in the rough ballpark of "zero". And that's automotive margins, not net margins. Ford's EV division for example is en route to lose $4,5 billion this year.

        Its always the case when you're entering a product market late. What you're supposed to do is take the profit hit until you can get enough of your product onto the road and let consumers "brand" themselves to the still minuscule EV market. Then you're supposed to utilize your manufacturing advantage in ICE to sell more cars at lower prices, and that's how you're supposed to seize market share from Tesla. Except that you also need to put out a superior product, not some American piece of shit that's full of flaws (some requiring recalls) but at an inflated price, so most new customers buy Tesla (or BYD) anyway.

      • Which is impossible, Tesla is subsidizing their production with fake carbon credits. China is producing golf-carts with a shell and claiming they make SUVs. Ford is trying because their idiot CEO drank the green cool-aid but is on a path to lose billions and probably should go out of business as a result and GM only exists due to several consecutive government bailouts but shouldâ(TM)ve failed during the Obama years.

    • by quantaman ( 517394 ) on Saturday October 28, 2023 @12:16AM (#63960649)

      Seriously, EVs are racing into high percentages. GM and others are falling behind in capabilities so of course it’s because “no one wants them” when the issue is “no one wants the fairly bad ones these automakers put out when forced to and while trying to kill the market”.

      The automakers aren't really being forced and I doubt any of them are trying to "kill the market".

      Instead, everyone sees that EVs are the future. Outside of Toyota who is hedging a bit all of them believe ICE is a dead technology and the sooner they're able to sell almost entirely EV product line the better.

      And in often happens in such cases they got a bit ahead of themselves, realized they weren't ready to build up that quickly, and so they've pulled back.

  • Tesla can be the Foxconn of the auto industry.. Use their platform and just customize the exterior and inside of the vehicle.
  • I'll buy one. If... (Score:5, Informative)

    by spaceyhackerlady ( 462530 ) on Friday October 27, 2023 @10:33PM (#63960431)

    If an electric car meets my needs at a price I can afford, I'll consider it. If it doesn't, I won't.

    At the moment no EV meets my needs. They're interesting, but (for me) just not there yet. If I had somewhere to plug one in at home I'd consider a low-end EV as an around-town runabout. They're good for that. Since I don't - I live in an apartment and the building management aren't interested - I won't be driving an EV any time soon.

    ...laura

  • Trash Source (Score:5, Insightful)

    by locater16 ( 2326718 ) on Friday October 27, 2023 @10:36PM (#63960437)
    Businessinsider is pure trash, should be banned from posting on /.
    Like, I'm sure the highest selling car on the planet, the Model Y, "isn't working". Poor Tesla.
    Mods this isn't even fun conspiracy trash, this is just trash
  • by apparently ( 756613 ) on Friday October 27, 2023 @10:49PM (#63960459)
    Tesla is crashing because Musk is too incompetent to run a company and wasted his engineer's time and efforts building the designed-by-Homer-Simpson monstrosity known as "the cybertruck."
  • When I bought my first BEV 6 years ago the interest rate was reasonable. Now the interest rate adds some serious long term cost to the car.

  • They are complaining their cars aren't selling.
    This is because they didn't build a charging network worthy of the name, or work to get a standard charging system mandated in the US.

    Idiots.

  • by Alascom ( 95042 ) on Friday October 27, 2023 @11:26PM (#63960545)

    Let me start by saying I know I probably sound like a Tesla fanboy, but they really do have a great car (that just happens to be electric).

    The truth is, Tesla is the only electric car worth owning. The others are all "we make electric cars too" attempts to appeal to Wall Street. Most people (except maybe hardcore environmentalists) don't want an EV, they just want a great, reliable vehicle that makes them smile.

    Tesla sales by year tells a very compelling story and there is no need to hedge with "covid", "inflation", "supply chain", or "interest rates" as other EV makers are...
    2012: 2000
    2013: 22,400
    2014: 32,000
    2015: 50,000
    2016: 76,200
    2017: 103,100
    2018: 245,200
    2019: 367,500
    2020: 499,550
    2021: 936,172
    2022: 1,313,851
    2023: On track for around 2 million cars sold.

    That growth (and without any TV ads) tells you people like their Tesla EVs and their friends are being quickly convinced as well...

    • Yes and no. Tesla's "killer app" is its formerly proprietary fast charging network, whose connector pretty much everyone has adopted going forward, and which is currently being retrofitted with "magic dock" chargers to allow DC fast charging of older, competing brand vehicles. Tesla is going to lose a lot of its competitive advantage as an EV manufacturer going forward, but strategically, is leveraging its superior recharging network.

    • About 16M cars are sold in the US alone, annually. 2M worldwide of upper class luxury cars isnâ(TM)t really a market, itâ(TM)s a niche, and Musk himself admitted they are already hitting the global supply capacity of rare earths and lithium, with the company gobbling up about 15% of the global production of LFP batteries. If you were just to convert the US market to electric, youâ(TM)d exceed the production and mining capacity of lithium in the world.

    • Tesla succeeded because they built up an entire "soup to nuts" infrastructure to support their EV's. And it appears that with Tesla opening up their charging connector to become the SAE J3400 standard, a huge hurdle in public charging for EV's is finally being overcome. It appears that the world will likely coalesce to two charging plug standards, one-phase SAE J3400 and three-phase IEC 62196 Type 2 used in Europe. This standardization plus further improvements in DC charging station design will make commer

  • by Eunomion ( 8640039 ) on Friday October 27, 2023 @11:28PM (#63960551)
    Because they spent decades trying to sabotage them, and now are too old and lazy as an industry to understand them. The actual EV industry is going swimmingly.
  • EVs are too expensive to purchase, own, and repair. I've wanted an EV for over 20 years now but they are nothing but money pits for the average consumer. If I ever do get anything EV like it will most likely be hybrid unless one of these companies can build a basic EV that's affordable. They don't need to have a TV screen. Basic knobs will do. They don't need the latest and greatest computer system connected to the mother ship. Positive wire connected to the motor, negative wire going through a rheostat at

    • The sort of basic automobile you're looking for doesn't exist anymore for a number of reasons. Government mandates in the EU and US require backup cameras on all new passenger vehicles, which means you need a monitor. Basic mechanical knobs and switches are being replaced by touchscreen interfaces and capacitance buttons because they're seen as sleeker and because they're much cheaper to produce. And modern engines now utilize significant computing resources to keep everything in harmony. It is why a mo

  • They are too expensive. Layoffs are happening. People are struggling. No wonder they arent lining up to buy new expensive cars
  • by Tony Isaac ( 1301187 ) on Saturday October 28, 2023 @12:07AM (#63960625) Homepage

    New products usually lose money for a while. It took 17 years for Tesla to turn a profit. https://www.approve.com/time-t... [approve.com]. GM and Ford and Honda want profitability in just a few years. That's not how it works, unfortunately for them.

  • GM sells car loans. That they make cars is simple a side effect to their business model. It is part of the rot that the legally protected dealership structure sustains itself on.

  • Nobody needs a hummer EV. Make cheap ones, idiots
  • by BuckBundy ( 781446 ) on Saturday October 28, 2023 @01:58AM (#63960851)
    With ICE cars, manufacturers and dealerships are counting on making money from maintenance, especially the luxury brands. It's possible that because EVs have so much less maintenance requirements, their old model is a jeopardy.
  • by Arnonyrnous Covvard ( 7286638 ) on Saturday October 28, 2023 @04:33AM (#63961025)

    Would have paid list price. Couldn't. All sold out with at least a year wait time. Had to buy a car, so bought a used ICE car. Yeah, EVs totally are a failing product: You dumbasses AREN'T MAKING THEM.

  • by popdookey ( 253795 ) <sctinc AT gmail DOT com> on Saturday October 28, 2023 @09:39AM (#63961401)

    Wordy but Necessary...

    In an attempt to help advance the adoption curve of EV's, I foolishly/naively installed 2 DCFC stations at the Ute Pass on US 24. I worked with a State program that reimbursed $70k of the $200k investment. I expected it to be a loss leader for a year or two. I did not expect that:

    - ChargePoint depends on a hodgepodge of contractor/partners to conduct its installations - with no standardization, oversight, nor checks and balances. You and your friends can become installers next week, do halfway work, get paid, and suffer no consequences. It happened to me. Once.

    - Not every power company has EV friendly rates. My three phase power, required for DCFC stations, comes with a peak demand fee based on my busiest 15 minutes (no matter the time of day) multiplied by $14.35. So if I give a Tesla or a Rivian 125 kW for 15 minutes straight, that discrete charge costs 125kw*$14.35=$1793.75. Imagine having to amortize the cost of one charge across an unknown monthly number of charges. Consequently, I now limit charges to 62.5 kw, which cuts "Fast Charging" in half. It is more than enough for the first generation of BEV's.

    - Many EV's depend on Google Maps' data for their in-car navigation. It took 6 months to get my stations listed on Google - and not as my business (they still won't list it) but as a site I added to Google Maps as a random Maps user. For 6 months every EV driver looking at their dash for stations just drove by. ChargePoint is worthless at helping their drivers and their station owners. I have 6 wasted months of support tickets to prove it.

    - Independent charging operators do not control the software, so we cannot throttle our stations' power use to avoid demand charges. Tesla can. A station owner can submit feature requests to manage peak power demands via software, but their software developers (if even in-house) do not seem to ride the clue train. These request fall on the deaf ears of an understaffed support team with a ticket response time of about 8 days.

    - Not all stations can afford to provide power at a cost lower than gasoline. My power company, an EMC, is in the charging business. I am the only DCFC operator in their service area. (Did I mention that I was a fool?) They charge $.40/kWh, and less for their members. I charge $.48/kWh - which is on par with the cost of gasoline per gallon, but far more than you would pay at home. I do charge less than Ethanol free gas which is probably a better comparison than regular gas.

    - Every month I pay to subsidize the EV's which charge at my stations. I repeat that I expected this to be a loss leader, and that I am a fool. I did not anticipate an approximate $80k loss of over 5 years - if I am lucky. For my spreadsheets to turn green, I need more cars charging than I see coming up the mountain. Demand is pretty inelastic.

    - I can get salespersons galore to talk to me about buying and installing new stations. I get crickets for support of my existing stations.

    Guess who is *NOT* buying any more stations to help advance the adoption curve? This is the job of the car manufacturers. Dante said it best, "Abandon all hope ye who enter here."

  • by reanjr ( 588767 ) on Saturday October 28, 2023 @10:41AM (#63961487) Homepage

    The real story is companies like Ford are losing $36k for every EV they sell. They shit the bed by waiting a decade to invest in EVs, so Tesla has captured the entire lower end market. The other manufacturers now have to go through the same pain Tesla went through years ago, where they have to take losses and sell expensive EVs to fund the development of cheap EVs. And the big problem now is the high end market isn't big enough to support all of them doing this at the same time.

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