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Why Automakers' EV Factory Investments Aren't Paying Off In The U.S.

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Automakers aren’t selling as many cars as they used to, and the EV transition is a lot rockier and slower than some expected. This means there’s a lot of factory space in North America and around the world that is sitting empty and unused. Some companies especially challenged are Ford, GM, and Stellantis, Nissan, and EV makers such as Tesla and Rivian. That could mean billion dollar losses, job cuts, and chaos in the supply chain. Auto makers, industry analysts and even governments are adjusting expectations and trying to prepare for an uncertain future.

Chapters:
00:59 – Why automakers are losing billions on their factories
1:06 – Chapter 1: Factory utilization
04:25 – Chapter 2: EV transition
08:58 – Chapter 3: New normal

Producer: Robert Ferris
Editor: Andrea Miller
Animation: Jason Reginato
Senior Managing Producer: Tala Hadavi
Additional footage: Getty Images, Reuters

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Why Automakers’ EV Factory Investments Aren’t Paying Off In The U.S.

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46 comments
@nyxline

The Big 3 don't Want to Build Any EV's But were Forced to Build the EV's because the Democrats have a Mandate for Fleet Average of 50 mpg which it's Impossible without Any EV's in there Fleet,LOl Ford f150 or Dodge ram aren't getting 50 mpg that's why they're forced to build EV's by Biden Harris,To make Up for the Loss on EV's They Mark Up the f150 and RAMs which was selling for $45,000 Now it's $85,000 because that extra $40k it's for EV sitting in Lots 😂😂😂😂 Toyota hybrids on the other hand easily make 50 mpg😂😂😂😂

@evzenhlinovsky7082

VW is allways in trouble! Count on help from politicians only.

@FionatheFiend

It's been almost a decade since I took a car in for an oil change. I do not miss that. I've owned 3 EVs during that time all paid in cash. Maybe I'll get a plug in hybrid… or no screw that idea.

@lawrenceemke1866

yes, overpriced. But without content detail, it sounds like all EVs are way over priced (e.g. $20K over an ICE). This is totally true. It is true for legacy automakers, because they are trying to cover their loss in ICE equipment that now is useless. EVs 1,000 less parts. Some one has to pay for those useless parts. Answer, just jack up the price to cover the transition. The innovative companies don't have this problem. Tesla just introduced a new $7000 model. It is no wonder the legacy automakers are going back to ICE models. The paradigm shift problem is like the mechanical watch makers. If they don't transition, they will go out of business. Nobody will want their mechanical vehicles. ICE is to dial telephone as EV's are too smart phones.

@ryang3097

EV sucks and so do democrats. TRUMP 2024

@gatolibero8329

It's called nobody can afford those vehicles. The demand exists – you need a car in America. The prices are insane. Basic cars selling at luxury car prices.

@Nick-kr6ck

It’s because average car prices are too high for the current wages. Stupid to sell a 30-40k new car when the people buying them make that in a year. New cars used to be way more affordable

@jonathanholden8794

This disaster and unaffordable Car prices are driven by Democrat policies. Every Democrat Administration pushes more aggressive emission standards. Biden pushed for a sales target of 50% EV Sales by 2030 by offering Incentives and increasing regulatory pressure on fuel economy and emissions. What automaker can meet an average MPG of 55? 40 MPG was already aggressive. The lower MPG, the higher the price tag – the more EVs an automaker must sell to offset the low MPG vehicle. There is a reason Automakers were forced to jack up the prices of ICE vehicles, especially trucks.