Sunday, December 03, 2023

The US doesn't want EVs (or its car dealerships don't)

There's an interesting conundrum occurring in the American electric vehicle (EV) market. I have pointed out in a previous post that the USA is reporting a glut of unsold EVs, while Canada is facing the opposite problem: not enough cars available to fill demand.

So, now we have thousands of US car dealerships banding together to protest to Joe Biden that the American public is just not ready for the EV revolution and that demand has dried up (after the initial flurry of early adopters), and there is no way that they can possibly comply with the new regulations and targets in the Inflation Reduction Act, which effectively mandates that two-thirds of all new passenger cars be electric by 2032.

Despite a wide variety of good battery EV options available on the market, the dealerships claim that "electric vehicle demand today is not keeping up with the large influx of BEVs arriving at our dealerships prompted by the current regulations. BEVs are stacking up on our lots... Consumers don't want them; they're not buying them."

As a response, the dealerships and the manufacturers want the government to roll back its progressive targets. They have little or no interest in what is the right thing to do for the country or the planet; they are solely concerned with their bottom line and their shareholders' returns.

They seem to have no interest in getting creative either. For example, when was the last time you saw a television advertisement for an electric car? If you watch a sporting event, for example, most of the adverts are macho pitches for more-or-less interchangeable trucks and SUVs, with a heavy emphasis on speed, off-roading capability and towing capacity. Is it any surprise, then, that people think they want to buy macho trucks?

It remains to be seen whether the Biden administration has the courage of its own convictions, or whether it caves under pressure like the Trudeau government did over home heating oil.

No comments: