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.
She said she was leaving to focus on family, but will remain part of the Radio 2 team and will give further details next year.
Announcing the news on her Tuesday show, she said: “After six years of fun times alongside you all on the breakfast show, I’ve decided it’s time to step away from the early alarm call and start a new chapter.
“You know I think the world of you all, listeners, and it truly has been such a privilege to share the mornings with you, to go through life’s little ups and downs, we got through the lockdown together, didn’t we?
“We’ve shared a hell of a lot, the good times, the tough times, there’s been a lot of laughter. And I am going to miss you cats.”
Scott Mills will replace Ball on the breakfast show following her departure next month.
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“Zoe and I have been such good friends now for over 25 years and have spent much of that time as part of the same radio family here at Radio 2 and also on Radio 1,” he said.
“She’s done an incredible job on this show over the past six years, and I am beyond excited to be handed the baton.”
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Hugging outside the BBC building on the day of the announcement, Ball said she was “really chuffed for my mate and really excited about it”.
Ball was the first female host of both the BBC Radio 1 and Radio 2 breakfast shows, starting at the Radio 1 breakfast show in 1998, and taking over her current Radio 2 role from Chris Evans in 2020 after he left the show.
She took a break from hosting her show over the summer, returning in September.
Ahead of her stint in radio, Ball – who is the daughter of children’s presenter Johnny Ball – co-hosted the BBC’s Saturday morning children’s magazine show Live & Kicking alongside Jamie Theakston for three years from 1996.
She has two children, Woody and Nelly, with her ex-husband, DJ and musician Norman Cook, known professionally as Fatboy Slim.
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Ball said in her announcement her last show towards the end of December will be “just in time for Christmas with plenty of fun and shenanigans”.
“While I’m stepping away from the Breakfast Show, I’m not disappearing entirely – I’ll still be a part of the Radio 2 family, with more news in the New Year,” she added.
“I’m excited to embrace my next chapter, including being a mum in the mornings, and I can’t wait to tune in on the school run!”
Helen Thomas, head of Radio 2, said: “Zoe has woken up the nation on Radio 2 with incredible warmth, wit and so much joy since January 2019, and I’d like to thank her for approaching each show with as much vim and vigour as if it were her first. I’m thrilled that she’ll remain an important part of the Radio 2 family.”
Mills, 51, got his first presenting role aged just 16 for a local station in Hampshire, and went on to present in Bristol and Manchester, before joining BBC Radio 1 in 1998.
He’s previously worked as a cover presenter on Radio 2, but this is his first permanent role on the station.
More than 100 politicians from 24 different countries, including the UK, the US and the EU, have written a joint letter condemning China over the “arbitrary detention and unfair trial” of Jimmy Lai, a tycoon and pro-democracy campaigner.
The parliamentarians, led by senior British Conservative MP Alicia Kearns, are “urgently” demanding the immediate release of the 77-year-old British citizen, who has been held in solitary confinement at a maximum security prison in Hong Kong for almost four years.
The letter – which will be embarrassing for Beijing – was made public on the eve of Mr Lai’s trial resuming and on the day after British Prime Minister Keir Starmer met Chinese President Xi Jinping on the sidelines of a G20 summit of economic powers in Brazil.
The group of politicians, who also include representatives from Canada, Australia, Spain, Germany, Ukraine and France, said Mr Lai’s treatment was “inhumane”.
“He is being tried on trumped-up charges arising from his peaceful promotion of democracy, his journalism and his human rights advocacy,” they wrote in the letter, which has been seen by Sky News.
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Starmer meets Chinese president
“The world is watching as the rule of law, media freedom and human rights in Hong Kong are eroded and undermined.
“We stand together in our defence of these fundamental freedoms and in our demand that Jimmy Lai be released immediately and unconditionally.”
Sir Keir raised the case of Mr Lai during remarks released at the start of his talks with Mr Xi on Monday – the first meeting between a British prime minister and the Chinese leader in six years.
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The prime minister could be heard expressing concerns about reports of Mr Lai’s deteriorating health. However, he did not appear to call for his immediate release.
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From October: ‘This is what Hong Kong is’
Ms Kearns, the MP for Rutland and Stamford in the East Midlands, said the meeting had been an opportunity to be unequivocal that the UK expects Mr Lai to be freed.
“Jimmy Lai is being inhumanely persecuted for standing up for basic human values,” she said in a statement, released alongside the letter.
“He represents the flame of freedom millions seek around the world.
“We have a duty to fight for Jimmy Lai as a British citizen, and to take a stand against the Chinese Community Party’s erosion of rule of law in Hong Kong.
“This letter represents the strength of international feeling and commitment of parliamentarians globally to securing Jimmy Lai’s immediate release and return to the UK with his family.”
Mr Lai was famously the proprietor of the Chinese-language newspaper Apple Daily in Hong Kong, which wrote scathing reports about the local authorities and the communist government in mainland China after Britain handed back the territory to Beijing in 1997.
The tabloid was a strong supporter of pro-democracy protesters who took to the streets of Hong Kong to demonstrate against the government in 2019.
But the media mogul was arrested the following year – one of the first victims of a draconian new security law imposed by the Chinese Communist Party.
His newspaper was closed after his bank accounts were frozen.
Mr Lai has since been convicted of illegal assembly and fraud. He is now on trial for sedition over articles published in Apple Daily.
Forty-five pro-democracy activists have been jailed in Hong Kong’s largest ever national security trial.
The activists sentenced with jail terms ranging from four years to ten years were accused of conspiracy to commit subversion after holding an unofficial primary election in Hong Kong in 2020.
They were arrested in 2021.
Hong Kong authorities say the defendants were trying to overthrow the territory’s government.
Democracy activist Benny Tai received the longest sentence of ten years. He became the face of the movement when thousands of protesters took to the city’s streets during the “Umbrella Movement” demonstrations.
However, Hong Kong officials accused him of being behind the plan to organise elections to select candidates.
Tai had pleaded guilty, his lawyers argued he believed his election plan was allowed under the city’s Basic Law.
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Another prominent activist Joshua Wong received a sentence of more than four years.
Wong became one of the leading figures in the protests. His activism started as a 15 year old when he spearheaded a huge rally against a government plan to change the school curriculum.
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Then in 2019 Hong Kong erupted in protests after the city’s government proposed a bill that would allow extradition to mainland China. It peaked in June 2019 when Amnesty International reported that up to two million people marched on the streets, paralysing parts of Hong Kong’s business district.
The extradition bill was later dropped but it had ignited a movement demanding political change and freedom to elect their own leaders in Hong Kong.
China’s central government called the protests “riots” that could not continue.
Hong Kong introduced a national security law in the aftermath of the protests.
The US has called the trial “politically motivated”.
Dozens of family and friends of the accused were waiting for the verdict outside the West Kowloon Magistrates Court.
British citizen and media mogul Jimmy Lai is due to testify on Wednesday.
Meeting on the sidelines of the G20 in Brazil, British Prime Minister Keir Starmer told China’s President Xi Jinping he’s concerned about the health of Lai.
He faces charges of fraud and the 2019 protests. He has also been charged with sedition and collusion with foreign forces.