Economist explains why electric vehicles could be the 'next big flop'

Published

1 year ago

October 31, 2023

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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.

World

Donald Trump tells Volodymyr Zelenskyy ‘you’re gambling with World War Three’ in fiery Oval Office meeting

Published

3 hours ago

February 28, 2025

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Donald Trump tells Volodymyr Zelenskyy 'you're gambling with World War Three' in fiery Oval Office meeting

Donald Trump and JD Vance held a heated meeting with Volodymyr Zelenskyy in front of the media – which saw the US president tell his Ukrainian counterpart he is “gambling with World War Three”.

Mr Zelenskyy travelled to the US as he attempted to secure a ceasefire agreement with Russia and a possible mineral deal with the United States.

But his visit to the White House ended prematurely – with the signing of an agreement and a joint press conference with Mr Trump called off following their Oval Office clash.

Ukraine latest: Russian official responds to White House meeting

As the pair met with US vice president JD Vance joining them, tensions rose and a shouting match unfolded – all while cameras rolled and representatives from the media looked on.

The last 10 minutes of the almost 45-minute meeting descended into a tense back-and-forth, which began with Mr Vance telling Mr Zelenksyy: “I think it’s disrespectful for you to come to the Oval Office to try to litigate this in front of the American media.

“You should be thanking the President [Trump] for trying to bring an end to this conflict.”

As the Ukrainian president tried to object, Mr Trump raised his voice and told him: “You’re gambling with the lives of millions of people.

“You’re gambling with World War Three, and what you’re doing is very disrespectful to the country, this country that’s backed you far more than a lot of people say they should have.”

“You’re right now not in a very good position,” he continued. “You don’t have the cards right now with us, you start having problems right now.”

‘This will be great television,’ says Trump

At one point, Mr Vance blasted Mr Zelenskyy for airing “disagreements” in front of the press, but the US president remarked: “I think it’s good for the American people to see what’s going on.”

“You’re not acting at all thankful,” he said. “This is going to be great television.”

Defending himself and his country, the Ukrainian president openly challenged Mr Trump on his softer approach to Vladimir Putin and urged him to make “no compromises with a killer”.

This fiery spectacle was hard to witness

Deborah Haynes

Security and Defence Editor

@haynesdeborah

The fiery and very public bust-up between Donald Trump and Volodymyr Zelenskyy is a disaster for Ukraine and its European allies, and a triumph for Russia.

The spectacle of the US president berating his Ukrainian counterpart and telling him he is gambling with World War Three – played out on television from the Oval Office – was hard to witness.

Zelenskyy, looking increasingly uncomfortable, decided to fight back. He likely felt he had little choice but to defend himself and his war-torn country.

But this act of defiance drew even more condemnation from Trump as well as from JD Vance, who also started attacking the Ukrainian leader.

It is hard to imagine a greater contrast from the chummy scenes between Sir Keir Starmer and Trump and the scolding language used by the American president against Zelenskyy, at times addressing him as though he were a naughty schoolboy.

Ukraine’s president, his arms crossed, tried his best to speak up, but he was clearly fighting a losing battle. The extraordinary breakdown is far more serious than just a made-for-television drama.

American support for Ukraine is critical if Kyiv is to withstand Russia’s war. The UK, France and Ukraine’s other European allies have been working overtime to try to keep Trump on their side.

The US president has vowed to end the war and has started talks with Vladimir Putin. The two presidents also plan to meet. That alone was hard for Ukraine to witness.

But the Ukrainian side has attempted to work with Washington rather than against it, including by being willing to part with profits from its minerals and other natural resources in return for locking Trump into a long-term partnership with Ukraine.

That all looks to be shattered – or at best is in serious jeopardy.

If Trump, in anger, withdraws all his military support to Ukraine, Kyiv’s ability to withstand Russia’s military will be seriously diminished.

The Europeans lack the capability to fill the void. The only person who wins in this scenario is Vladimir Putin.

Posting on his Truth Social platform shortly after the clash, Mr Trump described the meeting as “very meaningful” and said: “Much was learned that could never be understood without conversation under such fire and pressure.

“It’s amazing what comes out through emotion, and I have determined that President Zelenskyy is not ready for Peace if America is involved, because he feels our involvement gives him a big advantage in negotiations.”

He continued: “I don’t want advantage, I want PEACE. He disrespected the United States of America in its cherished Oval Office. He can come back when he is ready for Peace.”

Zelenskyy posts on X after early exit

Mr Trump and Mr Zelenskyy had been due to have lunch with their delegations in the White House’s cabinet room after the meeting – but untouched salad plates and other items were seen being packed up as the meal was hastily called off.

Having left the White House early, Mr Zelenskyy said in a post on X: “Thank you America, thank you for your support, thank you for this visit.

“Thank you @POTUS, Congress, and the American people. Ukraine needs just and lasting peace, and we are working exactly for that.”

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