Why They Can’t Give Away EV’s Right Now

First, we have this: EV Dealers Are So Desperate to Offload Stock That They’re Offering Lease Deals For $20 a Month.

How soft is the new EV car market? Some EV vehicles have been on their lots for so long that they’re offering lease terms so generous, they may as well be giving them away.

A Kia dealer in Virginia only gets a couple of inquiries a month for EVs. The price tag of new vehicles scares them off, says Finance Director Ramon Nawabi. He’s got a few EV 6 SUVs that have been on the lot for six months that Kia is now offering discounted leases on top of the $7,500 EV tax credit “just to move the car,” he says. “In a sense, we’re giving them away.”  

That $7500 tax credit helped dealers sell a million EVs in 2022. However, the misnamed Inflation Reduction Act severely limited how that $7500 tax credit could be applied. There are now price caps for EVs ($80,000 for SUVs and trucks; $55,000 for cars), and the batteries must be American-made. Also, the vehicles must be assembled in the U.S. There’s also a cap on the net income of the potential buyer.

But you can avoid the restrictions if you lease a new EV. “That’s allowed car companies or dealers to bundle the $7,500 tax credit savings into the lease financing cost, lowering consumers’ monthly payments,” reports Bloomberg News

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Then, the EU mandate on EV’s caused this:

“The EU is in a crisis caused by low consumer demand for EVs and unfair competition from third country EV manufacturers, meaning that the EU industry will not be able to meet these reduction targets. EU industry will have little choice but to significantly cut production, which threatens millions of jobs in the EU, harms consumers, and adversely impacts the EU’s competitiveness and economic security.”

The quote above is an excerpt from a draft European Automobile Manufacturer’s Association (EAMA) document made public this week in a story by Bloomberg. The report was prepared by EAMA in preparation for formally requesting a 2-year delay in EU emissions goals set to take effect in 2025. EU EV makers say they will not be able to meet the idiotic mandate set by the EU’s authoritarian central planners, citing low consumer desire to buy the damn things and “unfair” competition from China.

It’s a reality that should come as no real surprise to anyone, especially since critics of the EU’s central planning literally predicted this very outcome a thousand times.

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It’s because people bought them because there was a subsidy. Then they found out that the current technology of an EV is flashy, but not good. It sucks in hot or cold weather and takes too long to charge.

It’s not the panacea that was promised, just another government program, nee mandate that is a failure.

There is not enough electricity nor the grid to support people driving EV’s. They are 3-5 iterations of technology away from being efficient and desirable. They are wealthy peoples salve at feeling good about themselves for the made-up environmental crisis going on.

Let’s also not ignore the fires that they cause and the inability to put them out. They just burn to the ground (or 57,000 gallons of water for the enviro-weenies trying to save the planet – irony and sarcasm there).

So unless they bribe the buyers to get a technology worse than a petroleum powered car, people don’t want them.

Let’s not ignore that the manufacturers lose 10’s of thousands on every car they build (to the tune of a billion and a half loss for Ford alone this year).

So other than to make someone feel good because they are a greentard, there is no reason to buy one, yet. There may be a better iteration in the future, but it isn’t now.

For the record, I drove last weekend for 4 hours in my diesel truck and got 36 MPG. I didn’t hurt a plant or a tree.

Economics and technology say it’s a loser. It’s just another idea by the Enviro-nuts to try and make us do something because they hate petroleum.

EU Mandate here:

The mandate is so utterly unattainable that EAMA makes this projection as part of its application for a delay:

EU rules targeting a CO2 fleet emission of about 95 grams of CO2 per kilometer per vehicle would require automakers to either halt production of about 2 million cars or be exposed to fines that could reach €13 billion ($14.3 billion) for passenger cars, according to estimates by the European Automobile Manufacturers’ Association contained in the draft and seen by Bloomberg.

Van manufacturers could also face paying an additional €3 billion for falling short of targets, said the group that’s currently headed by Renault SA Chief Executive Officer Luca de Meo.

“The EU is in a crisis caused by low consumer demand for EVs and unfair competition from third country EV manufacturers, meaning that the EU industry