Major automakers are slowing down their electrification plans, citing lower-than-expected consumer demand for EVs, even as sales continue to grow.
Tim Stevens reports for Canary Media.
In short:
- Ford has delayed the release of some EV models and cut its EV development budget by $12 billion, citing cost concerns.
- Mercedes-Benz pushed back its goal for 50% EV sales from 2025 to 2030, citing market conditions, while Volvo and Volkswagen have softened their EV plans.
- EV sales are growing, but slower than expected, leading automakers to re-emphasize hybrids as a bridge to full electrification.
Key quote:
“The expansion of the plants will depend on how the market for e-cars develops.”
— Thomas Schmall, Volkswagen chief technology officer
Why this matters:
Despite EV sales rising, the shift away from internal combustion engines is slower than expected, risking delays in reducing vehicle emissions and slowing progress toward climate goals.
Related: Electric vehicle purchases show a political divide in the US
