Just like Fords “Edsel” model in the 1950s, Trump administration economist Steve Moore cautioned that electric vehicles (EVs) may be the auto market’s “next big flop.”
“Henry Ford’s son was named Edsel, and this was going to be the great car, all of the executives said, ‘This is the car everybody’s going to want to buy.’ Ford made 500,000 of these new sedan cars, but guess what?” Moore said on “Varney & Co.” Monday. “Nobody bothered to ask consumers whether they wanted the car.”
“And of course, the Edsel was one of the great flops of all time,” the economist continued. “I’m here to tell you, if these trends continue, we’re going to see the EV market become the next big flop because car buyers don’t want them.”
Moores comments come as the EV push at Ford and General Motors hit a speed bump thats cutting into the automakers profits and causing them to reevaluate their electric plans amid a price war and supply chain challenges.
Ford noted in its earnings report released last week that its EV unit posted a quarterly loss before interest and taxes (EBIT) of $1.33 billion an acceleration after a loss of $1.08 billion in the prior quarter. It added that its cutting production of its Mustang Mach-E while scaling back about $12 billion in planned investments in the EV segment, including delaying its second battery plant in Kentucky.
General Motors saw its quarterly profit reduced by about $1.5 billion because of higher costs and the impact of selling more EVs, though it doesnt break out losses from its EV unit in the same way Ford does.
GM CFO Paul Jacobson said that it would abandon an interim goal of building 400,000 EVs from 2022 through mid-2024, instead focusing on a goal of “getting to 1 million EVs of production by the end of 2025 alongside hitting our margin targets.”
“Given the huge losses that these companies like Ford are suffering because of the EV mania, I saw a statistic this morning that Ford is losing something like between $40,000 and $60,000 per car,” Moore reacted. “It’s been a bad bet.”
The economist further argued that auto industry-wide bailouts may be likely amid companies EV losses.
“The federal government is also already offering all of these sweeteners to get people to buy electric vehicles. You get a $7,500, basically, check from the government every time you buy an EV. Let’s not forget that we’re subsidizing the battery companies, all of these things,” Moore noted.
“The taxpayers are paying for these things,” he added. “And yet the most amazing thing is, even with all these sweeteners, Americans are still saying, I don’t want them.”
Speaking to car dealers around the country, Moore reported that their lots “are full of EVs” and only 10% of clients purchase EVs off the lot today.
“I think the car companies would be smart going to hybrids where you can have gas and an electric battery,” the economist and adviser suggested. “But the car companies aren’t making those cars. And the reason they aren’t making them is because the government has increasingly mandate[d] that all cars be EVs.”
FOX Business Eric Revell contributed to this report.
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2:23
Trump issues nuclear sub order
‘I didn’t hear a sound’
Mr Mimaki was three years old when the US dropped an atomic bomb on the city of Hiroshima.
It was the first time a nuclear weapon had been used in war, and it’s remembered as one of the most horrific events in the history of conflict.
It’s estimated to have killed over 70,000 people on the spot, one in every five residents, unleashing a ground heat of around 4,000C, melting everything in its path and flattening two thirds of the city.
Horrifying stories trickled out slowly, of blackened corpses and skin hanging off the victims like rags.
“What I remember is that day I was playing outside and there was a flash,” Mr Mimaki recalls.
“We were 17km away from the hypocentre. I didn’t hear a bang, I didn’t hear a sound, but I thought it was lightening.
“Then it was afternoon and people started coming out in droves. Some with their hair all in mess, clothes ragged, some wearing shoes, some not wearing shoes, and asking for water.”
Image: Toshiyuki Mimaki
‘The city was no longer there’
For four days, his father did not return home from work in the city centre. He describes with emotion the journey taken by his mother, with him and his younger bother in tow, to try to find him.
There was only so far in they could travel, the destruction was simply too great.
“My father came home on the fourth day,” he says.
“He was in the basement [at his place of work]. He was changing into his work clothes. That’s how he survived.
“When he came up to ground level, the city of Hiroshima was no longer there.”
‘People are still suffering’
Three days later, the US would drop another atomic bomb on the city of Nagasaki, bringing about an unconditional Japanese surrender and the end of the Second World War.
By the end of 1945, the death toll from both cities would have risen to an estimated 210,000 and to this day it is not known exactly how many lost their lives in the following years to cancers and other side effects.
“It’s still happening, even now. People are still suffering from radiation, they are in the hospital,” Mr Mimaki says.
“It’s very easy to get cancer, I might even get cancer, that’s what I’m worried about now.”
Image: This image shows the city in March 1946, six months after the atomic bomb was dropped on 6 August 1945. Pic: Reuters
Tragically, many caught up in the bomb lived with the stigma for most of their lives. Misunderstandings about the impact of radiation meant they were often shunned and rejected for jobs or as a partner in marriage.
Many therefore tried to hide their status as Hibakusha (a person affected by the atomic bombs) and now, in older age, are finding it hard to claim the financial support they are entitled to.
And then there is the enormous psychological scars, the PTSD and the lifelong mental health problems. Many Hibakusha chose to never talk about what they saw that day and live with the guilt that they survived.
For Mr Mimaki, it’s there when he recounts a story of how he and another young girl about his age became sick with what he now believes was radiation poisoning.
“She died, and I survived,” he says with a heavy sigh and strain in his eyes.
He has subsequently dedicated his life to advocacy, and is co-chair of a group of atomic bomb survivors called Nihon Hidankyo. Its members were awarded the Nobel Peace Prize in 2024.
Image: The city is marking 80 years since the blast. Pic: Reuters
‘Why do humans like war so much?’
But he doesn’t dwell much on any pride he might feel. He knows it’s not long until the bomb fades from living memory, and he deeply fears what that might mean in a world that looks more turbulent now than it has in decades.
Indeed, despite advocacy like his, there are still around 12,000 nuclear warheads in the world in the hands of nine countries.
“In the future, you never know when they might use it. Russia-Ukraine, Israel-Gaza, Israel-Iran – there is always a war going on somewhere,” he says.
“Why do these animals called humans like war so much?
“We keep saying it, we keep telling them, but it’s not getting through, for 80 years no-one has listened.
“We are Hibakusha, my message is we must never create Hibakusha again.”
Eighty years ago today, an American B-29 bomber dropped an atomic bomb on the Japanese city of Hiroshima.
It was the dawn of the atomic age, but the birth of the bomb can be traced beyond the deserts of New Mexico to Britain, five years earlier.
A copy of a hand-typed document, now in the Bodleian library in Oxford, is the first description of an atom bomb small enough to use as a weapon.
The Frisch-Peierls Memorandum was written by two nuclear physicists at the University of Birmingham in 1940.
Image: The memorandum is the first description of an atom bomb small enough to use as a weapon
Otto Frisch and Rudolf Peierls don’t feature in the film Oppenheimer, but their paper is credited with jump-starting the Manhattan Project that ultimately built the bomb.
Both Jewish scientists who had both fled Nazi Germany, they built on the latest understanding of uranium fission and nuclear chain reactions, to propose a bomb made from enriched uranium that was compact enough to be carried by an aircraft.
The document, so secret at the time only one copy was made, makes for chilling reading.
Not only does it detail how to build a bomb, but foretells the previously unimaginable power of its blast.
“Such an explosion would destroy life in a wide area,” they wrote.
“The size of this area is difficult to estimate, but it will probably cover the centre of a big city.”
Radioactive fallout would be inevitable “and even for days after the explosion any person entering the affected area will be killed”.
Both lethal properties of the bombs that would subsequently fall on Hiroshima and Nagasaki, killing around 100,000 instantly and more than 100,000 others in the years that followed – most of them civilians.
Image: The atomic bomb was dropped by parachute and exploded 580m (1,900ft) above Hiroshima
‘The most terrifying weapons ever created’
Those bombs had the explosive power of around 16 and 20 kilotonnes of TNT respectively – a force great enough to end the Second World War.
But compared to nuclear weapons of today, they were tiny.
“What we would now term as low yield nuclear weapons,” said Alexandra Bell, president of the Bulletin of Atomic Scientists, which campaigns for nuclear disarmament.
“We’re talking about city destroyers…these really are the most terrifying weapons ever created.”
Image: The atomic bomb flattened Hiroshima – but is much less powerful than modern nuclear weapons
Many of these “high yield” nuclear weapons are thermonuclear designs first tested in the 1950s.
They use the power of nuclear fission that destroyed Hiroshima to harness yet more energy by fusing other atoms together.
Codenamed “Mike”, the first test of a fusion bomb in 1952 yielded at least 500 times more energy than those dropped on Japan.
Impractically devastating, but proof of lethal principle.
Variants of the W76 thermonuclear warhead currently deployed by the US and UK are around 100Kt, six times more powerful than the Hiroshima bomb.
Just one dropped on a city the size of London would result in more than a quarter of a million deaths.
The largest warhead in America’s current arsenal, the B83 has the explosive equivalent of 1.2 megatonnes (1.2 million tonnes of TNT) and would kill well over a million instantly.
But modern intercontinental ballistic missiles (ICBMs) are designed to carry multiple warheads.
Russia’s Sarmat 2, for example, is thought to be capable of carrying 10 megatonnes of nuclear payload.
They’re designed to strike multiple targets at once, but if all were dropped on a city like London most of its population of nine million would be killed or injured.
If that kind of power is incomprehensible, consider how many nuclear warheads there now are in the world.
Nine countries – the US, Russia, China, France, the UK, India, Pakistan, North Korea and Israel – have nuclear weapons.
Several others are interested in having them.
The US and Russia have around 4,000 nuclear warheads each – 90% of the global nuclear arsenal and more than enough to destroy civilisation.
According to analysis from the Stockholm International Peace Research Institute, China us thought to have around 600 warheads, but has indicated a desire to catch up.
Beijing is believed to be building up to 100 new warheads a year and the ICBMs to deliver them.
Five more nuclear powers, including the UK, plan to either increase or modernise their existing nuclear stockpiles.
The nuclear arms race that created this situation was one imagined by Frisch and Peierls in their 1940 memorandum.
Given the mass civilian casualties it would inevitably cause, the scientists questioned whether the bomb should ever be used by the Allies.
Image: Chinese soldiers simulate nuclear combat
They wrote, however: “If one works on the assumption that Germany is, or will be, in the possession of this weapon… the most effective reply would be a counter-threat with a similar bomb.”
What they didn’t believe was that the bomb they proposed, and went on to help build at Los Alamos, would ever be used.
Devastated by its use on Japan, Peierls disavowed the bomb and later campaigned for disarmament.
But that work is now as unfinished as ever.
Non-proliferation treaties helped reduce the expensive and excessive nuclear arsenals of Russia and the US, and prevent more countries from building nuclear bombs.
Image: A Russian airman on a nuclear-capable strategic bomber
‘Everything trending in the wrong direction’
But progress ground to a halt with the invasion of Ukraine, as nuclear tensions continued elsewhere.
“After all the extremely hard, tedious work that we did to reduce nuclear risks everything is now trending in the wrong direction,” said Alexandra Bell.
“The US and Russia refuse to talk to each other about strategic stability.
“China is building up its nuclear arsenal in an unprecedented fashion and the structures that were keeping non-proliferation in place stemming the spread of nuclear weapons are crumbling around us.”
Image: The US president is always in reach of the ‘nuclear football’ , a bag which contains the codes and procedures needed to authorise a nuclear attack
‘New risks increasing the threat’
The world may have come closer to nuclear conflict during the Cuban missile crisis of 1963, but the fragmented and febrile state of geopolitics now is more dangerous, she argues.
Conflict regularly flares between nuclear armed India and Pakistan; Donald Trump’s foreign policy has sparked fears that South Korea might pursue the bomb to counter North Korea’s nuclear threat; some states in the Middle East are eyeing a nuclear deterrent to either nuclear-wannabe Iran or nuclear armed Israel.
Add to the mix the military use of AI and stressors like climate change, and the view of the Bulletin of Atomic Scientists is the situation is more precarious than in 1963.
“It’s more dangerous, but in a different way,” said Alexandra Bell. “The confluence of all these new existential risks are increasing the threat worldwide.”
The US House Oversight Committee has issued subpoenas for depositions with former president Bill Clinton and former secretary of state Hillary Clinton relating to the sex trafficking investigation into Jeffrey Epstein.
The Republican-controlled committee also subpoenaed the Justice Department for files relating to the paedophile financier, as well as eight former top law enforcement officials.
Donald Trump has denied prior knowledge of Epstein‘s crimes, claiming he ended their relationship a long time ago.
Image: Mr Trump and Mr Epstein at a party together in 1992. Pic: NBC News
The US president has repeatedly tried to draw a line under the Justice Department’s decision not to release a full accounting of the investigation, but politicians from both major political parties, as well as many in Mr Trump’s political base, have refused to drop their interest in the Epstein files.
Epstein died in a New York jail cell in 2019 awaiting trial on sex trafficking charges, and since then, conspiracy theories have swirled about what information investigators gathered on him and who else may have been involved in his crimes.
Republicans on the House Oversight Committee initiated the subpoenas for the Clintons last month, as well as demanding all communications between former president Joe Biden’s Democrat administration and the Justice Department about Epstein.
The committee previously issued a subpoena for an interview with Epstein’s former girlfriend, Ghislaine Maxwell, who had been serving a prison sentence in Florida for luring teenage girls to be sexually abused by Epstein. She was recently transferred to another facility in Texas.
Mr Clinton was among those acquainted with Epstein before the criminal investigation against him in Florida became public two decades ago. He has never been accused of wrongdoing by any of the women who say Epstein abused them.
Mr Clinton previously said, through a spokesperson, that while he travelled on Epstein’s jet, he never visited his homes and had no knowledge of his crimes.
The subpoenaing of former president Bill Clinton is an escalation, both legally and politically.
Historically, it is rare for congressional oversight to demand deposition from former presidents of the United States.
Ghislaine Maxwell, Jeffrey Epstein’s former girlfriend and accomplice, had already been summonsed.
But the House Oversight Committee has now added Bill and Hillary Clinton, several former Attorneys General and former FBI directors to its list.
It signals bipartisan momentum – Democrats voting with Republicans for transparency.
The committee will now hear from several people with known ties to Epstein, his connection with Bill Clinton having been well-documented.
But the subpoenas set up a potential clash between Congress and the Department of Justice.
Donald Trump, the candidate, had vowed to release them. A government led by Mr Trump, the president, chose not to.
If Attorney General Pam Bondi still refuses to release the files, it will fuel claims of a constitutional crisis in the United States.
But another day of Epstein headlines demonstrates the enduring public interest in this case.
The subpoenas give the Justice Department until 19 August to hand over the requested records.
The committee is also asking the former officials to appear for depositions throughout August, September and October, concluding with Hillary Clinton on 9 October and Bill Clinton on 14 October.
Although several former presidents, including Mr Trump, have been issued congressional subpoenas, none has ever appeared before members under compulsion.
Last month, Mr Trump instructed Attorney General Pam Bondi to release information presented to the grand jury that indicted Maxwell for helping Epstein sexually abuse teenage girls.