Former car executive warns electric car push happened ‘too soon and too fast’

The data may say it all, but former auto industry executives are setting the record straight on the electric car push.

Former Ford, Chrysler and General Motors executive Bob Lutz and former Chrysler Chairman and CEO Bob Nardelli told Fox News Digital that while electric vehicles (EVs) could revolutionize the entire auto industry, so far, they’ve all been covered.

“In the short term, I’m afraid, it will be a challenge,” Nardelli said. “It will be a challenge to convince the consumer that an EV is a reliable and affordable form of transportation.”

“You can see what’s happening out there,” he continued. “We are seeing the negative impact of a failed plan.”

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“The problem with the whole EV movement is that there was a lot of noise behind it, especially from what I like to call the liberal media, making it sound like everyone’s next car was going to be an EV,” Lutz also told. Digital. “And of course, the government was pushing it, because of their climate change policies. And obviously it wasn’t going to happen.”

Lutz added: “And yes, it came very quickly and very quickly.”

In Nardelli’s view, the forced transition to zero shipping in the United States began on “Day One of this administration,” when President Joe Biden. pulled the plug on the oil and drilling projects while boasting plans to make more than half of new car sales electric by 2030.

“Major auto companies are preparing for 50% of future sales to be electric vehicles by 2030, 100% by 2035,” President Biden said during his June 2022 rate hike speech.

In 2022, EVs were created less than 1% of all US vehicle registrations. Since then, Elon Musk’s Tesla sorely missed 2023 Q1 expectations, Ford announced it would stop production on its electric trucks and cars and Rivian, Nardelli noted, lost $5.4 billion in the last year alone.

Rivian also announced this February that it will cut 10% of the paid staff and flat car output projections due to “economic and geopolitical pressures.” The EV maker has also halted work at its multibillion-dollar factory in Augusta, Georgia.

In a statement to Digital, a Rivian spokesperson said the company has “strong confidence that the entire automotive industry will continue to electrify over the long term … We believe that Rivian has demonstrated an exceptional ability to connect with customers as evidenced by the R1S being the top selling EV in the US at a price of more than $70,000 Furthermore, when the R2 arrives in the first half of 2026, the price is expected to start around $45,000, and the R3 will be less than the R2, making Rivian cars more accessible to the masses.”

Claiming that these market moves are having a “ripple effect” within auto brands, Nardelli claimed automakers and the Biden administration would see more success in sales and acceptance of EVs by first focusing on hybrid vehicles. Lutz responded by saying that hybrids were introduced to consumers before Tesla completely revolutionized the electric car.

“Focusing on hybrids would be well positioned as an evolution towards EVs. It would allow charging stations and it would allow a larger grid network, perhaps strengthening their base distribution to be able to absorb this,” Chrysler. exec who led the company from ’07 to ’09 said. “Utility, the electrical system in this country will put us at a great disadvantage as we continue to meet the demand for electricity. That will be a deficit.”

“I was the father of what was arguably America’s first extended-range EV, which was the 2007 Chevrolet Volt,” Lutz said. “Hybrids came first. We had the Toyota Prius… Ford had hybrids, several models, as did General Motors… We did hybrids first, then they fell out of favor, and now they’re back because hybrids are the way to go. Americans in an electric vehicle with a range of 30 to 50 miles, which is plenty for most trips for most people.”

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A poll shows most Americans consider emissions when buying a new car. However, despite the push for electric vehicles, data shows consumers prefer other “green” options, such as hybrids.

Hybrid accounted for 9.3% of new light vehicle registrations in the U.S. from January to November 2023, outpacing EVs by 1.8 percent, according to S&P Global Mobility data.

Nardelli emphasized the importance of increasing America’s oil supply, claiming that the industry is “the biggest geopolitical card we can play.” Lutz calmed business leaders’ concerns that China could produce and export more EVs than American car brands.

“I’m very concerned about the trade balance in the auto industry. And if the government puts big tariffs or restrictions on (Chinese EV maker) BYD coming here in an attempt to strengthen … American manufacturing, again, I think it’s just going to bring great tension between the United States and China,” Nardelli said.

“The Chinese auto industry is a huge force, but it won’t destroy the American auto industry, which probably needs a new challenge in terms of being leaner, more focused, getting rid of unnecessary things,” Lutz said. “That’s always a good thing to do, but the Chinese are like everybody else. They’re not 10 (feet) tall. They’re a competitor in the auto industry, but they’re not a force that’s going to destroy the American industry. .”

Hoping that the industry will move forward with a market-oriented, customer-centric approach, both CEOs acknowledged that a gradual transition to EVs is inevitable, while Nardelli warned that the transition could erase the car dealership experience.

“I think it’s going to be an exciting opportunity for change. And whoever leads this industry is going to have to move at a faster pace and be more flexible to change the technology, the infrastructure, the delivery,” Nardelli said.

“Will the vendor system still be here 10 years from now?” he put. “It’s a big question.”

“You look at what Amazon did in the transition and (it) very well can happen where home delivery is a thing. We see it with Carvana,” Nardelli said.

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“If the Democrats win the election in November, we could have something close. An EV mandate where they introduce emissions regulations that are so tough that basically the industry is left (with) no choice but to produce anything but EVs. And the American public left (without) choice but to buy EVs, because that’s all there is,” Lutz said.

Ultimately, a former Big Three executive believes the most likely outcome would be EVs representing nearly a quarter of the industry.

“My guess is in 10 years, I might be close to witnessing it, but at 92, one can’t be sure. I would say EVs could, without government mandated work, EVs could be 25 to 30% of the market. And then keep going up from there.”

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Breck Dumas of FOX Business contributed to this report.