Automotive giant General Motors is the latest car maker to reassess its electric car plans as customers simply aren’t ditching petrol-power fast enough. It joins the likes of Honda and Porsche that have also been forced to publicly admit they went too fast, too soon on the transition to electric vehicles (EVs).
According to a report from The Wall Street Journal, General Motors (GM) is pushing for California to be stripped of its rights to set its own emissions targets as it could cause major problems across the rest of the USA and, potentially, the world. At present, California is free to impose its own state-wide vehicle laws, separate from the US federal government, and the state has set a target of 2035 to ban internal combustion vehicles. This is in direct contrast to the federal government that has cut incentives to EVs, putting the car makers in the middle of a state v federal conflict.
The Wall Street Journal claims to have seen an email written to GM employees that read: “We need your help! Emissions standards that are not aligned with market realities pose a serious threat to our business by undermining consumer choice and vehicle affordability.”
Making matters worse is that up to 11 other US states have said they will follow the California ban, but even in California, which has some of the most generous EV incentives in the world, EVs only make up approximately 20 per cent of total new vehicle sales.
Overnight Porsche held its Annual General Meeting and didn’t hold back on the difficult reality car makers are facing as governments around the world push for more EV sales but customers are simply not transitioning fast enough.
“The world has changed,” admitted Porsche CEO, Oliver Blume. “We are experiencing a fierce storm. But we are doing everything we can to counteract them. We are resolutely investing in the future. In challenging times we are continuing to develop Porsche with a precise focus. This requires more resources in the short term, but it will make our company even more profitable in the long term.”
“Due to the recent market slowdown, the Honda EV sales ratio in 2030 is now expected to fall below the previously announced target of 30 per cent,” the carmaker said on Tuesday.
“In light of this outlook, Honda is reassessing its EV strategy and roadmap, including plans for the EV product lineup and the timing of relevant investments including one to build a comprehensive EV value chain in Canada.
While EVs remain a long-term focus for all three brands it is clear that in the medium-term, which includes moving into the next decade, the widespread adoption of EVs seems unrealistic unless there is a major consumer behaviour shift or dramatically increased government incentives – or likely both.
What do you think – are car makers trying too hard to switch to electric cars to soon?
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