Powerline 11/21/2022
Governments at both the federal and state levels tell us we are in the midst of a transition from internal combustion vehicles to electric vehicles. For a number of reasons, I don’t believe that is true, regardless of the level of bribery and coercion that governments bring to bear. I think the whole project will crash and burn, after doing enormous damage in the meantime. But the Wall Street Journal sheds light on how corrupt the EV project now is:
The transition to electric vehicles might not kill traditional auto makers after all—as long as they qualify for Washington’s flagship subsidy program.
At an investor day Thursday, General Motors laid bare the economics of its technological shift. The bad news: GM estimated that its operating margins on EVs would still only be in the low to mid-single digits at the end of 2025. That calculation includes sales of regulatory credits for greenhouse-gas emissions, but excludes new tax credits that President Biden signed into law in August as part of the Inflation Reduction Act.
GM also said its capital expenditures would rise to between $11 billion and $13 billion a year through 2025, from $9 billion to $10 billion this year, as it brings forward EV investments. Such numbers play into investors’ fears that Detroit is on a hugely expensive road to a technology that expensive battery metals will make less profitable for years to come.
More:
https://www.powerlineblog.com/archives/2022/11/the-ev-boondoggle.php
