(TheLastPatriotNews.com) – In a major embarrassment for the Biden-Harris administration, automakers have been revising their electric vehicle (EV) targets downward over the past year as consumer interest has waned, despite substantial financial support from the federal government.
Several major car manufacturers, including Volvo, Ford, and Mercedes-Benz, have scaled back or abandoned their electric vehicle initiatives.
Experts attribute this shift to consumer reluctance due to limited driving range, sparse charging options, and higher costs, The Daily Caller reports.
Despite the government’s extensive incentives, including a $7,500 federal tax credit and $12 billion for factory upgrades under significant legislative acts like the 2021 Bipartisan Infrastructure Bill and the 2022 Inflation Reduction Act, the transition to electric vehicles is struggling.
The administration has also implemented strict regulations to decrease reliance on internal combustion engines, with new rules mandating a significant increase in the sale of EVs and hybrids by 2032.
“Even after throwing money at EVs hand over fist, basically paying people tax dollars to drive these cars off the lots, you have a dire spiral of (1) not enough demand to support the number of cars being produced, and (2) the people you paid to buy them now wanting to go back to what they had before,” said O.H. Skinner, executive director of the Alliance for Consumers and the former solicitor general of Arizona.
Despite favorable tax breaks, consumer uptake of EVs has been tepid. Growth in EV sales has not met expectations, with increases of 50% in early 2023 and 31% in early 2024, compared to a 71% rise in early 2022.
Surveys indicate a significant portion of the population is still reluctant to switch to electric vehicles, and even among current EV owners, many express a desire to return to conventional vehicles.
“The [EV market] headwinds come from physical realities that translate into economic and practical realities,” commented Mark Mills, a distinguished senior fellow at the Texas Public Policy Foundation and an expert on the automobile market.
“EVs are inherently more expensive… and most consumers are very price sensitive; EV fueling for most people is far less convenient… [and] EV fueling infrastructure is extremely expensive and will take a long time to build out,” he added.
The cost difference remains a hurdle, with new EVs costing about 10% more than standard vehicles as of early this year, and specific models like the electric Ford F-150 being significantly pricier.
Ford recently scrapped plans for a new electric SUV and scaled back production of its F-150 Lightning due to substantial financial losses.
“These are staggering costs to impose on American families,” commented Diana Furchtgott-Roth, director of the Center for Energy, Climate and Environment at the Heritage Foundation.
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