Chevy Volt a Failure - GM to Layoff 1,300

I think he'd saying it's because supply chain snags and battery shortages are keeping him from running at capacity.

I'd suggest a few things: 1) Their margins were already anemic. They have been in the business of selling cars for a loss and I suspect it's catching up to them now that they can't just paper over the problem with more debt issuance or by diluting the stock with another offering. 2) I wonder if demand is dropping off. He'll tell you that demand is off the charts. I would like to see firsthand. One reason their margins are so weak is that the cars at cost are very expensive, and at a higher price to make margin they probably would see demand drop off a lot. They were just forced to raise prices on all of their models quite a bit, and I am wondering if that is going to be a demand-death knell, especially if the economy is dragging with borrowing costs rising.

I believe the factories he was complaining about are money pits. Remember how much hype there was when he announced them, though?

FWIW, Ford recently announced that it is going to shut a plant in Germany and shift the EV production it is anticipating in the next few years to a plant in Spain. The simple reason was that they can get the Spanish workers cheaper.

 

Hmmm, maybe. But it's a different time. EVs are still expensive and with interest rates going upupupupupup, it might not take hold.

I bought a new car a year ago. Considered a hybrid, but was still out of my range. Got locked in at 1.75%.

 

You believe correctly.

Interesting to me that people are calling it a rebate. What you are really getting is a government subsidy, not a rebate. The money doesn't come from the car manufacturer. It comes in the form of a $7500 tax credit against your Federal income tax.

 

Ford Says It Will Lose $3 Billion on EVs This Year as It Touts Startup Mentality