The car manufacturer Ford predicts “incredible pressure” on the price of electric cars in 2025 in the United States.
According to Ford, future President Donald Trump’s measures against electric cars could further slow down the market. Explanations.
Electric cars: Ford’s fears in the USA
The American manufacturer Ford provides for a “incredible pressure” on the price of electric cars in 2025 in the United States. A sector where demand is less strong than anticipated. And which could especially be affected by measures by President-elect Donald Trump.
Indeed, according to certain media, referring to the billionaire’s entourage, he plans to remove the $7,500 tax credit granted to buyers of electric vehicles as part of Joe Biden’s flagship law to fight climate change.
Thus, Donald Trump considers that global warming is not due to human activity. And during his campaign, considered that the Biden administration’s measures would lead to the end of combustion vehicles. For his part, John Lawler, Ford’s financial director, warned that a withdrawal of tax credit was going worsen excess supply of electric cars. Since these cost more than those running on hydrocarbons.
“One of the things we think is there’s going to be incredible pricing pressure next year.”in this market, he noted during a conference in New York.
More flexibility to adapt to demand
“One thing we know is that consumers are not not willing to pay too much excess for electric cars”underlines the Ford manager. Before specifying that the development of hybrids would offer the brand a greater flexibility in the face of possible developments. “We are modeling several scenarios and we will adjust accordingly,” he declared again.
Furthermore, for his part, the financial director of General Motors estimated that it was “too early” to speculate on policies that Donald Trump could implement. And assured that the group was determined to carry out its electricity strategy as a “long term objective”. However, GM could “temporize” investments depending on the trajectory of the electricity market. In addition, the two American giants have already slowed down or scaled back projects in this area in recent months. And this to face a less dynamic demand than anticipated.
Finally, the president-elect seems to have watered down his positions on electric vehicles. And this thanks to his rapprochement during the campaign with Elon Musk, owner of the manufacturer Tesla.
However, the latter recognized that the elimination of the tax credit could harm competitors who are attacking its market shares.
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