Toyota's Technology Has Nothing To Do With Ford's Decision -- October 27, 202

Locator: 45849EVs.  

Updates

Later, 1:19 p.m. CT: everyone has their own ideas on EVs. That's fine. This was from a reader with a long history following transportation issues in the US. We're pretty much on the same sheet of music, as they say.

From my standpoint in the transportation business electric vehicles are a pipe dream.

High initial cost, very rapid depreciation, very limited parts and service outlets, hidden costs for charging and license that now includes the road use tax missing from fuel tax revenue.

For limited use, very small radius delivery zones they are perfect.

For a utilitarian use where your vehicle takes you all over, has some demands as far as carrying thing from the home repair store or towing your boat to do a little fishing early in the morning they fall short.

People live in their cars/trucks and need to have some faith that the vehicle they buy will fill their needs. You can’t take a family of five on a trip in a Volt. Inflation has taken a lot of discretionary spending money away so the second car/truck is not attainable.

Hybrids have a place for some of the people but they are very expensive to repair and not many shops have tech’s that can do major malfunction diagnosis and repairs.

Not enough thought has been given to the whole cost of transportation when the electric solution was picked, not even close to enough. Electric vehicle use is very limited and extremely expensive . Cars are the second largest household expense. The typical new car/truck are in all cases too expensive because of all the mandated features and most are way out of range for the common household to afford.

The total price is what is important to Hertz and they are not happy with that. The electric car is at best a niche market, not the answer to the problems.

Original Post

A reader suggests that Toyota's battery technology is the reason Ford is delaying its pivot to EV. 

Toyota's battery technology -- which is probably years from now -- won't change consumers' minds about EVs.

As I told a reader:

The fact this "new technology" was posted on an obscure website and not on mainstream media speaks volumes. How many times have we seen reports like this? After decades of research, all of a sudden they've found the holy grail. Amazing. I don't believe it. And even if they did, Americans aren't buying. And if Toyota is successful, and Ford can't pivot to EVs, Ford will be killed by Toyota and Tesla.

Think where Toyota and Tesla will be five years from now with regard to EVs and Ford, GM will still be talking about ramping up.  Ford's debt would increase by more than 10% with the new UAW contract and the pivot to EVs. They simply can't do it. And still pay a 5% dividend.

This is the real problem, all posted over the past few weeks with lots of background. By the way, which EV company do you not see on this chart?

And we haven't even mentioned the new UAW contract (well, I guess we did, in passing).

Ford's decision had nothing to do with Toyota's battery technology.

All three US auto manufacturers are in deep doo-doo and they cannot afford the billions it will take to convert to EVs.

Meanwhile, this delay -- by both GM and Ford, and I assume Stellantis -- will make the same announcement soon will put them even farther behind Tesla, Toyota, the Chinese car companies who will dominate the European market, Mercedes, VW, and Honda.