2 December 2024

Legacy Automakers: From Resistance to Electric Vehicles to Their Future Strategies

Stay updated with daily news from CleanTechnica via email or follow us on Google News! We receive numerous insightful comments on our articles daily, and occasionally, a comment stands out so much that it deserves to be transformed into an article. One such comment, made under my recent article, encapsulates a significant sentiment... [continued]

Legacy Automakers: From Resistance to Electric Vehicles to Their Future Strategies

Sign up for daily news updates from CleanTechnica via email or follow us on Google News! At CleanTechnica, we receive numerous insightful comments on our articles daily. Occasionally, a comment stands out so much that it deserves to be transformed into an article. One such comment, made under my recent article, encapsulates a significant sentiment:

"For years, traditional automakers have actively sought to hinder the progress of electric vehicles (EVs), and they nearly succeeded. Rather than embracing the shift towards EVs, they did everything possible to maintain the dominance of internal combustion engine (ICE) vehicles. It’s no coincidence that in August 2018, Tesla's short balance was over $13 billion, marking one of the largest short positions in history. By the end of 2018, Tesla was on an upward trajectory, gaining momentum. It took a full year for automakers like GM to realize they had missed opportunities to lead in the EV market, prompting them to hop on the 'Me Too' bandwagon. The image of Arnold Horshack frantically waving his hand in Mr. Kotter’s class comes to mind. In 2020, GM promised 20 new electric vehicles by 2023, supported by press releases, which many readers here tend to overlook."

Indeed, this comment highlights key points that have characterized the narrative of legacy automakers in the US over the past 15 years:

  • Electric vehicles are impractical and will never capture more than a small share of the auto market. (In contrast, visionaries, including some of our readers, and early EV leaders like Tesla predicted that EVs would dominate the market.)

  • Electric vehicles are too costly, and battery technology isn't yet sufficient for mass adoption. A breakthrough in solid-state batteries is necessary for EVs to gain popularity.

  • The EV charging infrastructure is inadequate, making it unreliable for consumers. (Tesla has addressed this by developing the Supercharging network, alleviating concerns for long-distance travel and for buyers without home or workplace charging.)

  • While EVs are becoming more popular and offering longer ranges, they still remain expensive.

  • Oh, Tesla's sales skyrocketed and its stock price soared? Absolutely, we’re definitely going to lead the EV revolution too!

  • We are going to outpace Norway in EV adoption. [Side note: I still don’t understand what that was supposed to imply.]

  • Unfortunately, it seems consumers don’t desire EVs as much as we anticipated, prompting us to scale back our electric vehicle initiatives (and marketing efforts).

And let’s not even delve into the hydrogen hype.

The crux of the matter is that many in the automotive and oil industries, as well as other lagging sectors, have historically resisted a swift transition to electric vehicles. They felt compelled to follow the growing enthusiasm for EVs and the surge in EV sales for a time, but now they seem intent on slowing the momentum and reverting to old ways.

Tesla remains crucial in propelling the industry forward and encouraging other automakers to accelerate their electrification efforts, especially given the near-ban on Chinese EVs in the US market. This makes it all the more frustrating that Elon Musk has tarnished the Tesla brand image while disseminating misleading information about climate change. The silver lining might be that if many potential Tesla buyers opt for other brands' EVs, it could motivate those brands to enhance their EV offerings. Perhaps.

Returning to the initial discussion, what lies ahead for legacy automakers? What strategies will they adopt moving forward? I must admit, I haven’t pondered this extensively, and I remain uncertain. Will they revive a narrative of being "EV leaders" with a robust marketing campaign? Will they largely ignore EVs and produce a limited number of models in the coming months or years? Will any of them strive to stand out and commit to going 100% electric by the next Olympics? Will they witness a continuous decline in overall sales as they struggle to remain competitive in various global markets (as is already occurring in China)? What are your thoughts on this?

Source: CleanTechnica