Ford, GM, Mercedes come clean on EV demand weakness
Top executives of Ford, General Motors and Mercedes-Benz all addressed concerns over waning demand for electric vehicles this week, as the major automakers navigate losses and price wars amid an EV push that not enough consumers are buying.
Ford CEO Jim Farley
On Thursday, Ford withdrew its full-year results forecast, citing «uncertainty» over its tentative deal with the United Auto Workers and warned of continued pressure on electric vehicles as customers balk at paying a premium for EVs over other models.
«It's been a challenging situation, for sure,» Ford CEO Jim Farley said during the company's third-quarter earnings call after posting greater losses than expected on EVs. «Matter of fact, our business is never short of challenges, especially right now with the evolution of the EV market and new global competitors from China, as well as the technology disruptions.»
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Ticker Security Last Change Change %F FORD MOTOR CO. 10.14 +0.23 +2.32%Ford Motor Co.
«A great product is not enough in the EV business anymore,» Farley continued. «We have to be totally competitive on cost.»
He added that, for consumers, «affordability is an issue» when it comes to EVs.
General Motors CEO Mary Barra
GM on Tuesday withdrew its 2023 profit outlook, and CEO Mary Barra said the automaker will slow the launch of several planned EV models to cut costs.
«We are reducing our fixed costs by $2 billion net of depreciation and amortization as we exit 2024,» Barra wrote in a letter to shareholders. «We are also moderating the acceleration of EV production in North America to protect our pricing, adjust to slower near-term growth in demand, and implement engineering efficiency and other improvements that will make our vehicles less expensive to produce, and more profitable.»
Ticker Security Last Change Change %GM GENERAL MOTORS CO. 28.80 +0.80 +2.86%General Motors Co.
The next day, GM and Honda issued a joint statement announcing the end of a $5 billion partnership to develop affordable EVs together, just one year after launching the effort.
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