Advertisement
invest

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

CNBC 46



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

» Subscribe to CNBC:
» Subscribe to CNBC TV:

About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Want to master your money this fall? Sign up for CNBC’s new online course. We’ll teach you practical strategies to hack your budget, reduce your debt, and grow your wealth. Start today to feel more confident and successful. Use code EARLYBIRD for an introductory discount of 30% off, now extended through September 30, 2024, for the back-to-school season:

Connect with CNBC News Online
Get the latest news:
Follow CNBC on LinkedIn:
Follow CNBC News on Instagram:
Follow CNBC News on Facebook:
Follow CNBC on Threads:
Follow CNBC News on X:
Follow CNBC on WhatsApp:

#CNBC

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

source

Related Story
46 comments
@nickfromm9492

They can make all the electric vehicles they want. We still dont have the infrastructure to support it. People always choose whats convenient. Theres a gas station within 50 miles of almost every where in the usa.

@jimysk8er

WHAT KIND OF IDIOT THOUGHT WE COULD TRANSITION FROM ONE TO ANOTHER JUST LIKE THAT!!! IF ANYONE EVER EVER EVER SAYS SOMETHING SO SMALL MINDED THEY ARE EITHER COMPLETELY UNDERQUALIFIED FOR WHATEVER THEY ARE SAYING OR THEY ARE WITHOLDING SOME SORT OF MASTER PLAN LEVEL INFORMATION.

@jimysk8er

just make ev conversions easier. no one should expect the same performance from two completely different propulsion systems

@jimysk8er

the larger auto makers have forgotten how to start new vehicles. it used to be a few hundred cars were made and production would ramp up slowly. making an ev is not difficult, making one that is a seamless transition for all consumers is very difficult. they have decided to put all this pressure on themselves or maybe it was put on them by government or market or investors or whatever when they could have easily made short production runs then ramp up then ramp up just like they used to do. the last few decade has been easy to produce a new model of ice vehicles because they reuse the same chassis but you can't expect the same methods to work for everything. Making and EV is childs play for big auto makers, theres literally an electric motor hooked up to the flywheel in every car on startup. Making an ev that can be made by the same plants and people at the same rates as your traditional vehicles is just dumb.

@G2_JP48

The Main problem is the country never build the electric infrastructure to support EV charging. Even in the north east corridor, you only have Tesla super chargers off I-95.

@stuffdo_er

Make a compact 4 door hatchback ev for $18k after incentive and sell it direct to consumers and you won't be able to make enough.

@Runnifier

Cars would be affordable if loans didn’t exist.

@colintang3910

Big suprise, also mechanically the gas are better. I will never give up my ICE cars.