Electric cars were unprofitable for manufacturers

Electric cars were unprofitable for manufacturers


Electric cars are not going anywhere, there is no doubt about that. However, while President Biden’s administration aims to have half of all U.S. car sales come from electric vehicles by 2030, the transition from old to new technology is far from painless.

GM, Tesla, Porsche, Ford, Hyundai and BMW are just a few of the brands that have had problems with electric vehicles. According to a CNBC report, while they spend billions on developing them, they also spend significant sums on testimonials.

Customers reported electric vehicle fires, power outages, and difficulty starting and charging vehicles. For example, the Chevrolet Bolt was recalled due to two “rare manufacturing defects” of lithium-ion battery cells in the battery pack, which is expected to cost GM $ 800 million. The Porsche Taycan was also sent to a service center due to a software error that could cause loss of control. Other examples of recalls that automakers have encountered are the Ford Mach-E crossover and the $ 400 million Kuga PHEV recall and the $ 900 million Hyundai Kona EV recall.

While electric vehicles account for only about 3% of annual car sales in the United States, they seem to be disproportionately involved in vehicle fires. While experts are still trying to determine the frequency of fires in electric vehicles, one report from the London Fire Brigade says that plug-in vehicles were responsible for more than doubling the incidence of gasoline or diesel fires.

According to Sam Abuelsamid, Chief Analyst at Guidehouse Insights, “Manufacturing processes really need to be toughened up. This is part of the battery life. They don’t like heat and pollution. They are very sensitive. ”

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