Well, well…wadda ya know…common sense , profit and loss, Econ 101 prevail….putting the government in charge of most anything besides military never works out…hmmm, who has been screaming this for two years now? Let me think…
Ford’s latest pullback from EVs is no surprise to people who’ve been paying attention to the EV market.
More than a year ago I pointed out that news outlets were reporting of EVs “
piling up” at dealership lots because of low consumer demand, which ultimately prompted Ford to
halve production of its popular F-150 Lightning, reducing output to
about 1,600 vehicles per week.
The reality is both lawmakers and Washington and auto
companies severely misjudged consumer demand for EVs, which has proven far lower than estimateshad projected.
“EV prices aren’t just going up; they are rising faster than inflation…faster than [internal combustion engine] vehicle prices” Ashley Nunes, a senior research associate at Harvard Law School, testified before Congress in 2023, noting that the inflation-adjusted average price of a new EV had risen to over $66,000 in 2022, compared to $44,000 in 2011
One reason charging infrastructure has lagged is due to the federal government’s incompetence. Nearly three years ago, the U.S. Departments of Transportation and Energy announced a $5 billion spending effort to build fleets of charging stations to lead “an electric vehicle revolution.” As of the summer of 2024, just seven charging stations had been built.
“That is pathetic,”
said US Sen. Jeff Merkley, a Democrat from Oregon. “We’re now three years into this …
That is a vast administrative failure.”
But the costs of listening to industry experts and politicians in Washington instead of consumers — and profits — have been severe.
“If the great mass of consumers dislike purple cars with green polka dots, then a society based on private property will not waste resources in the production of such odd cars,”
wrote economist Robert Murphy. “Any eccentric producer who flouted the wishes of his customers and churned out vehicles to suit his idiosyncratic tastes, would soon go out of business.”
Ford’s massive pullback from EVs is part of a broader return to economic reality. Companies flourish in a free market economy not by serving bureaucrats but consumers, the true “bosses.”
“They, by their buying and by their abstention from buying, decide who should own the capital and run the plants,” Mises wrote. “They determine what should be produced and in what quantity and quality. Their attitudes result either in profit or in loss for the enterpriser.”
Fortunately, the
centrally planned EV revolution now appears dead in the water, or at least in full retreat. A spokesman for Kamala Harris recently told Axios the presidential candidate “does not support an electric vehicle mandate.”
Forcing Americans into EVs was always a bad idea economically, but it now appears to be a bad idea politically, too.
That’s good news for Ford and American consumers.
https://www.aier.org/article/fords-massive-retreat-from-evs-explained/