Overview

• 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.