Staff Reports
In a surprising move, General Motors (GM) is reevaluating its investment plans in electric vehicles (EVs) as sales decline and shareholders express concerns over the company’s initial foray into the EV market. The Wall Street Journal reported on Wednesday that GM is preparing to scale back its focus on EVs and reassure investors that its core business of selling gas-powered trucks and SUVs remains strong. This decision comes as more evidence emerges that Americans are simply not as interested in EVs as left-wing government officials would like to believe.
According to the Journal, GM plans to fund a massive $10 billion stock buyback, the largest in years, by reducing its previously announced investments in EV and self-driving car development. GM’s CEO Mary Barra is determined to boost the company’s flailing shares and shift investor focus back to the profitability and cash generation of its internal combustion engine (ICE) business.
Too late GM.
General Motors Pulls Funding from Foundering Electric Vehicle Efforts in $10 Billion Bid to Appease Investorshttps://t.co/CDh8mzgkWM— Paul (@pjones461) November 30, 2023
GM’s stock has suffered a 14 percent drop this year and hit a three-year low partly due to the recent auto worker strike, which reduced the company’s profitability projections. As a response to this setback, GM has already been cutting spending on EVs, including delaying the construction of a new electric truck factory and downgrading its goal of producing 400,000 EVs by 2024. The company is also slowing down the development of its Cruise self-driving car project.
Barra, while acknowledging that EV demand is evolving slower than expected, remains convinced that EVs are the future and that sales will eventually increase.
However, many other automakers, including Toyota, have recognized the reality that EV sales are stagnating. In fact, both large and small EV companies have already had to lower their production targets. Insurance companies have also discovered that EVs are less reliable, leading to higher insurance costs, and car dealers have resorted to offering attractive discounts and leases to entice customers into purchasing EVs.
Contrary to the claims of Joe Biden and his climate change allies, electric vehicles are not the panacea they’re made out to be. As each month passes, more and more people are realizing the truth about the shortcomings of EVs. It’s time for a reality check and for the government to stop imposing unrealistic EV mandates.
