Though still only in her 40s, Germany Kent is an award-winning journalist, activist, beauty queen, producer, business leader, philanthropist, and author of the best-selling series of “Hope Handbooks.” She’s been around enough to have learned some of life’s great truths and is frequently quoted, this being among her wisest advice: “It is more important to go slow and gain the lessons you need along the journey than to rush the process and arrive at your destination empty.”
The great playwright and poet Molière famously pointed out the negative of the same theme: “Unreasonable haste is the direct road to error.” Or as DaVinci put it, “Learn diligence before speedy execution.” Oh, how we wish politicians had that same ancient wisdom. Instead, they commonly rush headlong into requiring things that don’t work, mandating technology that is yet untested, and pushing policies whose long-term consequences are unknown.
At least three times in the last decade, EPA has attempted to force compliance with an emission standard for which there is no known technology. But the best example imaginable is the worldwide rush, by governments on every continent, to force the manufacture and purchase of electric vehicles. Before there is a market for such vehicles, before the public is ready, before the technology is fully developed, before there is any supporting infrastructure.
Governments have pursued the electric car dream with various combinations of tax incentives, disincentives, grants, loans, and even directly banning internal combustion engines by specified dates. Dozens of countries have enacted such strategies, including the U.S., Canada, China, Japan, South Korea, Norway, Sweden, Thailand, India, Saudi Arabia, New Zealand, Australia, and the entire European Union.
Auto makers around the globe responded predictably – in that highly competitive industry they all want the subsidies. So, they ramped up electric vehicle production, made grand promises to go all or mostly electric. Several even invested in charging stations the way Ford invested in roads in the 1920s. But something went wrong. Several years into their committed timelines, they discovered that the public is not playing. At least not to the extent hoped.
Rather, electric vehicle sales are growing far slower than planned, and manufacturers are reaching the conclusion that most buyers just don’t want these cars. It isn’t because people hate the idea of electric cars – it’s that the technology and infrastructure are just not there yet. And whatever politicians want, people are not about to give up their cars, which for most people represent not only transportation, but the freedom to come and go as they please.
How have auto companies reacted to this dearth of public interest? They have begun to scale back production, in some cases dramatically. Mercedes-Benz had pledged to become fully electric by 2030, calling its highly publicized strategy “the economics of desire.” But in May Mercedes cited a sales slump in rolling back that promise, now saying it will make gas-powered cars “well into the 2030s.” The company CEO said simply that, “the transformation might take longer than expected.”
In France, Renault announced it was postponing the highly touted launch of its electric car business, Ampere. In Britain, Astin Martin has scaled back its electric vehicle production. In Germany, the government had pressured Porsche to build more electric cars, and the company had promised to be 80 percent electric by 2030. But by the first half of this year, sales had fallen 51 percent, and the company backed away, now saying future production will depend on consumer demand and technology improvements. Notably, Volkswagen announced a year ago it would invest $193 billion in electric production, battery factories, and even building charging stations across Europe. Within two months, it “introduced measures to temporarily scale back production of electric models” and laid off 300 workers. By the end of 2023, production was scaled back at its two main German plants and the government cancelled electric car subsidies.
American car companies are seeing the same problems and responding the same way. General Motors has cut electric vehicle production targets, and Tesla stock has fallen because of declining sales. Ford is reportedly “retrenching,” cutting $12 billion in spending on electrics, delaying the introduction of new models, and shrinking its investment in battery plants.
If the technologies were dependable and the markets solid, taxpayers would not have to subsidize electric cars. Certainly not in such a rush. The British statesman and renowned 18th century wit, Lord Chesterfield, wrote, “Whoever is in a hurry shows that the thing he is about is too big for him.”
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