The tentative deals that brought an end to the 6-week strike by the United Auto Workers could bring collective bargaining power to workers at new electric battery plants jointly owned by the automakers. But the deals could also make electric vehicles even less profitable for the companies at a time when sales aren’t quite going as planned.
Electric vehicle sales have been growing — just not as as quickly as hoped, per Guidehouse Insights analyst Sam Abuelsamid.
“A lot of the projections that automakers talked about were pretty optimistic,” he said.
And now, many are dialing them back. GM is scrapping its target of producing about half a million new EVs by the middle of next year, Ford extended its timeline to hit a goal of 600,000 EVs a year, and even Tesla sees demand softening.
Electric cars are a harder sell, in part, because of prices, said Abuelsamid. “It’s actually become somewhat more of an issue in the past year or so, even though prices of a lot of EVs have come down.“
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