Automakers Rethink Ambitious EV Goals as Adoption Slows

The automotive industry is facing a reality check as automakers around the world are forced to scale back their ambitious electric vehicle (EV) sales targets for 2030. A new report from BloombergNEF reveals that the 14 automakers who had set EV goals for the end of the decade will now produce a combined 23.7 million electric cars, down from the previously pledged 27 million. This slowdown in EV adoption is leading to more automaker reluctance and a shift in strategies, with some companies opting to diversify their power options by adding more hybrids to their lineups.

Automakers Struggle to Meet Lofty EV Targets

Automakers Backtrack on EV Expansion Plans

Automakers like Ford and GM have been forced to backtrack on their plans to expand production of popular electric models, instead opting to diversify their power options by adding more hybrids to their ranges. This shift in strategy is a direct response to the slower-than-expected uptick in electric vehicle adoption.For companies like Volkswagen, the slowdown in EV adoption has meant canceling some models that were destined for the U.S. market, such as the ID7 electric sedan, which will now only be sold overseas in territories like Europe. This decision reflects the automaker's need to reevaluate its product lineup and prioritize its resources based on the current market conditions.

Toyota Distances Itself from LGBTQ+ Support

In a surprising move, Japanese automaker Toyota has attempted to distance itself from its own LGBTQ+ initiatives, after facing a barrage of online abuse from a weirdo named Robby Starbuck. The company argued that the activities were led by employee groups and were not sanctioned by the company itself.This backtracking on diversity, equity, and inclusion (DEI) efforts has drawn criticism from LGBTQ+ advocates, who warn that such actions will have a lasting, negative impact on business success. The automotive industry is facing increasing pressure to maintain its commitment to supporting diverse communities, and Toyota's response has been seen as a step in the wrong direction.

Stellantis Aims to Cut Inventory by 100,000 Cars

Jeep owner Stellantis is also facing its own set of challenges, with flailing sales, dwindling profits, and even a revolt from its dealers. In an effort to address these issues, the automaker is planning to reduce its stock of new cars by roughly 100,000 vehicles by the start of 2025.To achieve this reduction in inventory, Stellantis will need to implement sharp price cuts and dealer incentives to clear out some of its models. The company's Chief Financial Officer, Natalie Knight, admitted that the automaker has faced difficulties over the summer, with July being "a very poor month" for the company. However, they remain optimistic about the future, with Knight stating that there were "definitely" improvements last month, though the company is not "out of the woods" just yet.

Toyota Production Drops for Seventh Consecutive Month

Toyota, the world's largest producer of cars, has also seen its production drop for seven consecutive months, as it deals with production stoppages and emission scandals. According to a report from Reuters, the Camry maker's global production fell 11% in August, with production in its home market tumbling 22%.This drop in production follows the news that three of Toyota's cars, the Highlander, Tacoma, and Mirai, have seen significant drops in demand so far this year. The automaker's woes are further compounded by an emission scandal that is currently sweeping through the company, adding to the challenges it faces in maintaining its position as a global automotive leader.