The Expert Podcast

• The EV Crisis in the Automotive Industry: A major automotive manufacturer warns that the transition to electric vehicles (EVs) could lead to a disaster for both automotive dealers and new car buyers.
• The Cost of EVs: The introduction of EVs could make new cars 40-50% more expensive, with fewer available on the market.
• The Impact on Dealerships: Vehicle technology costs might lead to a smaller market for new cars, leaving dealers with fewer vehicles to sell.
• EV Manufacturing vs. Traditional Cars: Although electric vehicle production seems simpler compared to gasoline-powered vehicles, the technological tolerance in EVs is more complex and expensive.
• Job Cuts in the Industry: Even though EVs make up a small portion of new car sales, companies are already cutting jobs in automotive manufacturing due to the EV transition.
• The Rising Costs for Consumers: The cost of EVs is expected to rise by 40% compared to traditional vehicles. Currently, new cars average $42,000, and with the added 40% cost, this would push prices near $60,000.
• Middle Class Affordability: The challenge of keeping EVs affordable for the middle class is growing. The concern is that high prices could limit sales and reduce the number of EVs on the road.
• The Domino Effect on Employment: If fewer cars are sold, it will affect manufacturing plants, suppliers, dealers, and jobs across the industry. This shrinking market could lead to widespread employment issues.
• Impact on Climate Goals: The push for more EVs might be undermined if prices remain too high for the average consumer. This could hurt the industry's ability to reach climate goals.
• The Future of EVs: If the industry doesn't find a way to reduce costs, the transition from combustion vehicles to EVs could falter, leading to one of the most significant management and consumer adoption challenges in the history of the automotive industry.