Like everything else in the Green Movement, electric mobility too is turning into a giant money burning pit. 

Going green is only burning away good money.  Image generated by Grok AI

Germany’s online Blackout News here reports that the global automotive industry is facing a “potentially existence-threatening crisis” due to a massive financial failure in the electric vehicle (EV) sector.

In 2024, losses in the electric car segment reached approximately 60 billion euros (70 billion dollars). Major manufacturers like Volkswagen, Ford, and General Motors have had to perform significant write-downs due to overestimating the market.

Expectations crash against reality

Blackout News points to a significant gap between manufacturer expectations and reality. Customers are reportedly rejecting EVs or delaying purchases due to 1) high purchase prices, 2) limited range and long charging times, 3) uncertainty regarding battery longevity, and 4) the end of state subsidies (purchase premiums), which previously “artificially” supported demand.

Consumers aren’t cooperating

The article claims that car manufacturers prioritized political goals (such as CO₂ regulations and combustion engine bans) over market economic logic. This “ideological misdirection” led to massive investments in production capacity that the market is currently unwilling to support.

In response to these losses, companies are making sharp course corrections. For example, Ford is reducing EV investments, General Motors is adjusting production targets and Volkswagen is intensifying cost-cutting programs.

The economic consequences are profound. The crisis is leading to production cuts, halted projects, and increased uncertainty for employees and suppliers. High raw material prices and the lack of “economies of scale” (due to low volume) mean that manufacturers are struggling with low margins and overcapacity.

In summary, the transition to electromobility is a “billion-euro grave” caused by manufacturers ignoring consumer preferences in favor of following political mandates and delusional green ideologies.

Will lawmakers ever wake up?