Ford, GM, Mercedes Reveal Diminishing Demand for Electric Vehicles Amid Increasing Costs and Challenges

Automakers Ford, GM, and Mercedes Lose Billions as Consumers Deem Electric Vehicles Too Expensive and Demand Drops, Despite Industry Push and Tax Incentives

Top executives from Ford, General Motors and Mercedes-Benz noted this week that demand for electric vehicles (EVs) is waning, resulting in major financial losses and intense price wars.
Ford withdrew its full-year results forecast due to 'uncertainty' over its deal with the United Auto Workers, and highlighted continued pressure on EVs as customers refuse to pay a premium for them compared to other models.
General Motors has pulled its 2023 profit outlook and announced plans to slow the launch of several of its planned EV models to cut costs.
Mercedes-Benz reported lower-than-expected margins on EVs in its third quarter earnings, suggesting that the cost of producing these vehicles is significantly impacting overall profitability.
In addition to declining EV sales, automakers are grappling with higher labor costs, with Ford's recent labor contract expected to cost up to $2 billion per year over four years.