“The Customer Has Spoken”: Car Industry Faces Up to Catastrophic EV Collapse

 The electric vehicle (EV) market is experiencing a significant downturn, causing substantial financial losses for major car manufacturers. Despite earlier optimism, sales and consumer interest have faltered, prompting companies to reevaluate their commitment to electric vehicles.

1. Financial Losses in the Car Industry:

• Ford reported a $5 billion annual loss, following a $19.5 billion write-down due to its aggressive investment in EVs.

• Other leading manufacturers like Stellantis, General Motors, Volkswagen, Honda, and Volvo collectively recorded over $60 billion in losses in the last year.

2. Declining EV Sales:

• Sales of popular models, including Ford's Mustang Mach-E and F-150 Lightning, have decreased.

• Ford’s Model-E division has lost over $13 billion since 2023, forcing a significant cutback in its future EV projects.

3. Consumer Sentiment:

• Many consumers remain hesitant to switch from traditional vehicles to electric ones, despite the growth in EV sales overall.

• Felipe Muñoz of Car Industry Analysis noted that many drivers are still not comfortable making the transition to EVs.

4. Regulatory Pressures and Competition:

• Increasing regulations for Net Zero emissions in the UK and Europe could lead to fines for automakers unable to meet targets.

• Low-cost competitors from China are undercutting Western manufacturers as Chinese brands also face a stagnation in domestic sales.

5. Market Overreach:

• Analysts believe that automotive companies set overly ambitious electrification goals, misjudging consumer readiness and the market's actual demand for EVs.

6. Impact of the Pandemic:

• The pandemic environment led to increased subsidies for electric vehicles and artificially low prices for leasing, which heightened expectations of rapid adoption.

• Earlier spikes in petrol prices due to geopolitical tensions made EVs more appealing, but this demand has not sustained.

The electric vehicle industry is encountering a stark reality check, as the anticipated boom has not materialized. Major car manufacturers are facing losses and reevaluating their future investments in electric vehicles amid regulatory pressures and changing consumer preferences. It appears that the ambitious plans set in the optimistic days of the pandemic are proving to be unsustainable.

The current situation brings forward critical questions about the future viability and public acceptance of electric vehicles.

https://dailysceptic.org/2026/02/19/the-customer-has-spoken-car-industry-faces-up-to-catastrophic-ev-collapse/