Is it possible that we are now seeing the first of the dominos to fall? Is it possible that after what just happened at Ford and Hertz that we will see many similar things at GM or Avis?
For those who are not aware recently realistic thinking came to both Ford and Hertz. The reality appears to be that the market for EVs is not what the government is forcing down the throats of American citizens.
First, from The Epoch Times:
“Ford to Scale Down EV Production, Transfer Crew to Gas Vehicle Assembly Plant”
“Ford’s decision came amid reports that electric vehicles are piling up at dealers’ parking lots and more Americans are hesitant to buy electric vehicles.
Ford Motor Company will transfer some workers from the F-150 Lightning assembly line at Rouge Electric Vehicle Center to another plant for gas-powered vehicles.
The company made the move to “meet demand for the popular Bronco and Bronco Raptor and the all-new Ranger and Ranger Raptor.”
The crew at the Michigan Assembly Plant will work seven days a week on two shifts after the transition.”
Meanwhile at Hertz:
“Rental firm Hertz Global Holdings is selling about 20,000 electric vehicles, including Teslas, from its U.S. fleet about two years after a deal with the automaker to offer its vehicles for rent.
The company will instead opt for gas-powered vehicles, it said on Jan. 11, citing higher expenses related to collision and damage for EVs even though it had aimed to convert 25 percent of its fleet to electric by 2024 end.
The car rental giant lists more than 700 EVs on sale, including BMW’s i3, Chevrolet’s Bolt, and Tesla’s Model 3 and Model Y SUVs. It is selling some Tesla Model 3s for as low as about $20,000, nearly half the purchase price for the cheapest variant of the compact sedan, according to its used car website showed.
Analysts expected Hertz’s latest move will press the price of used electric vehicles lower.”
To me while this is big news, it is not unforeseen as both Ford and Hertz are out to make a profit. If consumers are not buying or renting EVs then this was bound to happen. Is it possible that the pendulum is now starting to swing?
1/23/24