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Title: Does a Gas-Guzzler Revival Risk Dead-End Futures for US Automakers?

Link: https://tech.slashdot.org/story/26/03/02/0232...

If U.S. automakers turn their backs on electric vehicles, "their sales
outside the U.S. will shrivel," warns Bloomberg. [Alternate URL.] They're
already falling behind on the technology, relying on a 100% U.S. tariff on
Chinese EVs to keep surging rivals like BYD Co. at bay.... While the American
automakers "mostly understand the challenge in front of them, they don't have
full plans" to confront it [said Mark Wakefield, head of the global
automotive practice at consultant AlixPartners]... "Now is a great time for
the V-8 engine," said Ryan Shaughnessy, the Mustang's brand manager. "We've
done extensive customer research in multiple cities, looking at a variety of
powertrains, and the V-8 is always the number-one choice." It isn't just
customers. U.S. automakers have long been run by "car guys:" enthusiasts who
live for the bone-shaking rumble of a big engine. For them, quiet and smooth
EVs - even the absurdly fast ones - can't satisfy that craving. They're
convinced many American car buyers share the same enthusiasm for what
Shaughnessy described as "the sound and roar of the V-8." Wall Street
couldn't be happier with the new direction... Ford's fortunes are also on the
rise, as it's predicting operating profits could grow by as much as 47% this
year to $10 billion. Ford's stock has risen nearly 50% over the last 12
months. Under the previous environmental rules, automakers effectively had to
sell zero-emission vehicles in growing numbers to offset their gas-guzzlers.
When they fell short, they had to buy regulatory credits from EV companies
such as Tesla Inc. or face penalties. GM spent $3.5 billion on credits from
2022 to the middle of 2025. Now, according to JPMorgan Chase & Co.
analyst Ryan Brinkman, GM and Ford each have "billion dollar tailwinds"...
[T]he hangover from all that new horsepower could leave US automakers lagging
their Chinese rivals who already build the world's most advanced - and lowest
priced - electric cars. Indeed, there is much talk in Detroit about the
competitive tsunami that will be unleashed on American automakers once
Chinese car companies find a way to break through trade barriers now
protecting the US market. [Ford Chief Executive Officer Jim] Farley even
calls it an "existential threat"... "They're going to build as many V-8
engines and big trucks as they can get out the factory doors," said Sam
Fiorani, vice president of vehicle forecasting for consultant Auto Forecast
Solutions. "And as the rest of the world develops modern drivetrains, newer
batteries and better electric vehicles, GM and Ford in particular are going
to find themselves falling even further behind." The article notes GM
"continues to develop battery-powered vehicles, and CEO Mary Barra said the
automaker would begin offering a 'handful' of hybrids soon," while Ford and
Stellantis "have plans to launch extended-range electric vehicles, or EREVs,
a new kind of plug-in hybrid with an internal combustion engine that
recharges the battery as the vehicle drives down the road." But while
automakers may be investing in future EV vehicles, they're also "leaning into
the lucre that comes from selling millions of fossil-fuel vehicles in a rare
moment of loosened regulation."

Read more of this story at Slashdot.

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