President Joe Biden’s administration has been pushing electric vehicles on the country since shortly after they took office, and the president himself has regularly touted attempts to ‘move beyond’ the internal combustion engine, but a growing majority of automobile dealerships just gave him a big dose of bad news.
According to a survey conducted by CDK Global, a research firm focusing on dealership data, 65% of dealership managers and executives expressed pessimism about the future of electric vehicles (EVs). Among the 250 respondents, 29% reported feeling very pessimistic about EVs. Additionally, one-third of respondents stated that their customers showed little interest in EV technology, Just the News reported.
According to the survey results, 25% of the respondents stated that their dealership sells less than 50 electric vehicles (EVs) per month. Meanwhile, 33% of them sell between 51 and 100 EVs, and 29% sell between 101 and 250 EVs per month. Additionally, 13% of the respondents reported selling more than 251 EVs per month. Only 13% of dealers expressed confidence in automotive manufacturers’ plans.
“Those numbers are troubling on the surface but when you consider the brands our respondents represent, it might be even more distressing,” the report stated, which said the respondents sell brands with the most EVs in their lineups or have well-regarded EV lines. “These are dealers with experience in volume and quality EVs. Yet, they’re still pessimistic,” the report added.
The survey revealed varying perspectives on the timeline for electric vehicle (EV) adoption among dealership managers and executives across different regions of the U.S. Only about half of the respondents believed that EVs would constitute half of all sales within the next 5-15 years, with differences noted among regions. In the South, 36% of respondents held this view, while in the East, 52% agreed with the projected timeframe. Additionally, a quarter of respondents expressed skepticism, suggesting that widespread EV adoption might not occur for several decades.
According to those surveyed, 62% of customers are passing on EVs because of the limited range, 47% of customers mentioned charging too difficult or takes too long, and 34% were concerned about the high purchase price. Last November, over 4,000 dealerships signed onto a letter telling President Joe Biden to put a halt on EV mandates, calling them “unrealistic.” Since then, 1,000 more have signed onto the campaign.
Ford Motor Co., like all American and European automakers, responded to the Biden administration’s electric vehicle push by investing billions of shareholder dollars in designing and manufacturing EVs that are not selling. And now, the company is paying a huge financial price.
According to CNN, the auto manufacturer’s electric vehicle unit disclosed on Thursday that it faced a 20 percent decline in sales volume and had to reduce prices due to weak consumer demand after the division lost $1.3 billion.
Due to industry-wide price cuts, revenue for Ford’s electric vehicle, the Model E, decreased by 84% to approximately $100 million. “That resulted in the $1.3 billion loss before interest and taxes (EBIT) and the massive per-vehicle loss in the Model e unit,” the outlet noted.
The recent data adds to Ford’s ongoing losses, as their Model e reported a full-year EBIT loss of $4.7 billion from the sale of 116,000 units. This translates to an average loss of $40,525 per vehicle—only a fraction of the per-vehicle loss observed in the first three months of 2024. Company officials estimate that their EV division will lose $5 billion this year, up from $4.7 billion last year.
“Americans don’t want EVs at levels Biden’s climate hysteria require,” author and businessman Andy Puzder wrote on X. “Ford’s EV Q1 losses soared to $1.3 billion — a ridiculous $132,000 per EV sold. All Ford’s profits came from combustion engine vehicle sales. Collectivist policies destroy prosperity.”
Disclaimer: This article may contain commentary which reflects the author’s opinion.