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ICE car makers slow walking cheap cars to pay for EV investments

561 Views 15 Replies 6 Participants Last post by  JasonF
Who doesn't love a good conspiracy theory.
Listening to a podcast about car sales it was tossed out there that ICE
car makers were slow walking all their inexpensive cars so people would
buy the big $ big profit cars to pay for their EV investments.
This seems to make sense. So many of the cheaper
cars are just not available or have huge waiting lists.
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If this is a winning strategy, then wouldn't every automaker always do this just to increase profits?
ICE is becoming the horse drawn carriage so why not squeeze what money they can out of the existing market. They pointed to GM's decision to slow their output.
GM has no choice to slow production of vehicles that aren't selling. Always said that GM and Ford would be bankrupt by 2025, maybe I was wrong 2024 more likely.
GM has no choice to slow production of vehicles that aren't selling. Always said that GM and Ford would be bankrupt by 2025, maybe I was wrong 2024 more likely.
According to the article they are doing it so they can keep prices high. So your dealer has no inventory and will not offer a discount as they used to. So far
auto is not starving enough to end this practice. I am hoping this occurs later this year when more EV's are released ICE sales slows to a point of
a need to offer them to dealers to push or they starve.
What confuses me is the competitors are not producing more to kill these slow pokes. That competition used
to be what made everyone do their best.
They're limiting all production because they learned from 2020 thru 2022 that they can claim shortages and get 25%-50% more per car. And it's not just car manufacturers doing it, this is going on with all kinds of merchandise, food items, and soft drinks. It might even be causing a large share of the inflation we're dealing with now.

What makes higher priced cars more available is simply that there are fewer buyers for them. So those models sit on the lot until the dealer convinces the buyer that they can either take what's there now, or they can wait a year for the lower priced model, and warn that when the lower priced model does come in, it will probably be marked up with a "market adjustment" fee.

Of course, then they add a "market adjustment" to the higher priced one as well, because when the customer has no choice, why not?
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Of course, then they add a "market adjustment" to the higher priced one as well, because when the customer has no choice, why not?
I will not be sad to see them go. In a few years it will be over. Tesla going for the throat processing their own lithium for batteries. I hate to say it but we need another Tesla that makes
more models to fit more situations. I would have been truly happy to own an electric Maverick but even the hybrid is unobtainable. The legacy auto makers are just dragging their feet or protecting the dwindling thiefdoms internally. Sad that happens in large corporate America. Ford is as American as the made in Mexico MachE which is also sad. I hope by 2026 that this gets fixed but I am not counting on it.
I hate to say it but we need another Tesla that makes
more models to fit more situations.
I think we're going to get several, but none of them will be U.S. based manufacturers (though they might manufacture here).

The biggest ones will be when BYD and Xpeng fully enter the U.S. market, and you can bet they're going to try to do so before the U.S. based manufacturers or Japanese manufacturers finally wake up. The market here won't be protected forever. It wasn't able to keep out Japan in the 1970's, nor was it able to keep out Korea in the 1990's. How many Japanese and Korean cars do you see driving around now?

Speaking of which, I think the next big surprise from manufacturers we already know might be Honda, who plans to replace all of their models in a few years with EV's. They are already in serious trouble, so it makes sense for them to replace all of their models with EV's, and take a chance, and try to avoid the mistake that Nissan and Mazda are making (also in trouble, but refusing to let go of their gas models).
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If this is a winning strategy, then wouldn't every automaker always do this just to increase profits?
You mean like the all the different models of cars that Ford doesn't sell anymore?
You mean like the all the different models of cars that Ford doesn't sell anymore?
And fords stock is in the gutter. GM isn't doing well either because of their faux EV drive. From seeing what Tesla is doing every year and comparing it to the rest of the manufacturing world, the rest of the world seems to be moving like molasses. Tesla is moving like windows in the early days where every year is something new and great to look forward too. Alas though they can only do so much at the pace they are moving and I had hoped that people like Toyota GM and others would have the prowess to add to this EV revolution. Instead all I see is obstacles or molasses. Either way the old manufacturing companies are making themselves irrelevant. Its like watching IBM mainframes getting replaced by a PC motherboard.
the mainline automakers are burning cash trying to get in on the EV market. canceling vehicles that are selling in larger numbers to push EV's that are not selling.
the mainline automakers are burning cash trying to get in on the EV market. canceling vehicles that are selling in larger numbers to push EV's that are not selling.
You're incorrect on the "EV's that are not selling" part. Just look at how many Ford and Hyundai EVs are being sold above MSRP due to lack of supply.

The problem is one of production. Traditional automakers can't ramp up EV production fast enough to meet demand. This is mostly because they've been unable to source the batteries required.
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And we are all supposed to move to electric cars? even busses, trucks, earth mover ect. When there are not enough batteries for even the light duty market?
GM killed all of their cars when they all sold more than the Bolt.
You mean like the all the different models of cars that Ford doesn't sell anymore?
That strategy makes sense. Closing production of vehicles means that you can save those expenses.

"Slow-walking" of cheap models generally doesn't. You still have to pay all of the overhead of the buildings and production lines anyhow. At that point, you might as well have all of those "sunk costs" pump out as many cars as they can so you can make money. Unless you have a setup where the same production line can produce multiple vehicles - then sure, you can switch production to the more profitable vehicles.
And we are all supposed to move to electric cars? even busses, trucks, earth mover ect. When there are not enough batteries for even the light duty market?
Take a breath dude. ;)

"We" must solve the battery production problem. And many of "us" are doing exactly that. There have been many announcements by major auto manufacturers teaming up with battery manufacturers to open various factories in the states in order to solve this issue. It's happening.




GM killed all of their cars when they all sold more than the Bolt.
GM and VW seem to have made a lot of mis-steps, from what I can tell.

Ford and Hyundai seem to be doing a much better job of transitioning to EVs.
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And we are all supposed to move to electric cars? even busses, trucks, earth mover ect. When there are not enough batteries for even the light duty market?
GM killed all of their cars when they all sold more than the Bolt.
Just passenger vehicles alone are proposed to be replaced by EV's by 2050 in most cases, except California who wants it by 2035. That's 12 years for California (which might be overly ambitious) and 27 years for everywhere else - which is about average for a full used vehicle replacement cycle, so it's realistic at least.

I don't anticipate, except in California maybe, that gasoline cars will become illegal at that point. It might become harder to buy gasoline, because it might become sold like kerosene is now.
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