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GM & Ford Are Struggling With EVs Again, But Why? (cleantechnica.com)

submitted 2 months ago by [email protected] to c/[email protected]

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Recently, there’s been some bad news out of Detroit. Ford’s backing off on some upcoming EV models, including a three-row SUV many had been looking forward to, and will instead be focusing more on hybrids. GM has been having different problems with software, recently laying off 1,000 developers after a string of Silicon Valley types failed to acclimate to more traditional corporate culture.

While these companies would like to have us all believe that making EVs and software for EVs is simply too hard, other companies like Tesla and Rivian have been doing a lot better. Tesla is now making more EVs than anybody, even beating out ICE models in some segments. Rivian is still climbing the profit ladder, but is selling software to Volkswagen, a pretty good sign that “legacy auto” is struggling in odd ways while newcomers are having no problem churning out EVs.

So, we need to ask ourselves why these established players are struggling while newcomers are doing just fine.

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[–] [email protected] 7 points 2 months ago (1 children)

I'm not convinced that this comparison is true anymore.

I think Doug Demuro phrased it well when he called the Model 3 "The Greatest Appliance Ever Made". The M3 and MY LR RWD cost the same as the cheap Ford and Chevy cars and crossovers / "CUV"s. Teslas aren't just playthings for tech bros. Now, Rivians on the other hand...

[–] [email protected] 5 points 2 months ago (1 children)

Tesla's have become much more price competitive, in those two segments (obviously that's not the case in the truck segment, since the Cybertruck is the most niche of niche trucks). If you're looking specifically for what Tesla is selling, it can be a great option. But, not everyone wants those models. Price isn't the only dividing line, it's also how it drives, styling and features, but also the brand. Companies like Ford and GM are pretty simple: they make and sell cars. Tesla is explicitly trying to disrupt the auto industry. I don't think everyone wants to buy a disruptive product. I think Tesla has tried to "fix" problems that weren't really problems, at least not for everyone. For instance, I don't think most people were thinking, "I wish I could replace all the physical dials and switches in my car with a single, 20 inch iPad." Or, "I don't like how door handles work, let's change them." Tesla is clearly selling what some people want, I'm just not sure it's what most people want.

[–] [email protected] 2 points 2 months ago (1 children)

Obviously people can buy whatever they want, whether it's for a rational reason or not. It would be cool if any other vehicle on the US market could hit the same balance of performance, range, speed, price, etc.

[–] [email protected] 2 points 2 months ago

It would be cool if any other vehicle on the US market could hit the same balance of performance, range, speed, price, etc.

It could and the US government has explicitly banned that from happening because it would put the "legacy" (and what legacy is that, exactly?") automakers out of business overnight.