When Markets Speak — Electric Vehicles

It makes not a whit of difference from whence floweth the power to propel my automobile. I am energy agnostic. I am happy with the internal combustion engine and I could be equally happy with the electric vehicle.

So, what’s the beef, Big Red Car?

Funny, dear reader.

So, here’s my observation — our government, a bunch of leftist progressives wed to EVs — has moved too far and too fast to force EVs down our throats and thus has ignored the wisdom of markets and the necessity to listen to the power of the consumer.

How, Big Red Car?

OK, here’s how.

 1. The Biden admin — and all lefties, in general — decided that EVs were a religion, a subset of the climate hoax religion — one of the Stations of their Green Energy Cross.

Therefore, they enacted regulations that punished ICE vehicles and subsidized EVs. With me?

They stuck their nose into the market, a gigantic market, based solely on what THEY wanted, not what the market wanted.

 2. Markets are simply networks wherein consumers indicate their preference for alternate offerings. If enough consumers pick a certain product, that product flourishes and its competitors either make changes to be more competitive or they die.

Markets are always right.

So, what happened, Big Red Car?

When the Biden admin put its thumb on the scales by issuing regulations that hampered ICE vehicles and favored EVs, they substituted their wants for market wisdom. It didn’t work.

 1. Car manufacturers played along — like bloody sheep — and their EV offerings sat unsold even after substantial price discounts and equally grand government subsidies.

As a result, every EV manufacturer has dialed back their own ambitious internal plans. EVs are not going to take over the roads any time soon.

 2. Big companies, like Hertz, who actually changed their fleet mix to include massive amounts of EVs, have now garnered critical market business intelligence.

What did Hertz learn, Big Red Car?

Hertz — $8B annual gross revenue — has taken a huge hit because of its woke decision to go big on EVs, but also learned:

 1. Folks who drive ICE vehicles are slightly less likely to rent an EV for the first time when away from home in a strange city wherein they have no idea where the EV charging stations might be located.

Hertz had bought EVs to the tune of more than a third of their fleet.

 2. EVs suppressed sales revenue.

 3. EVs were harder and more complicated to maintain while the supply chain for parts was far less agile than for ICEs.

Certified, trained mechanics were dancing in the dark when it came to dealing with EVs which put pressure on Hertz personnel levels.

 4. EV warranty work was slow, much slower than comparable ICE warranty work. Warranty work is work to be done by the manufacturer based on the original sales contract. All Hertz EVs were under warranty.

 5. The raw cost of repairs — whether shouldered by the warranty or Hertz — and routine maintenance for EVs was substantially greater than comparable work on ICE vehicles.

 6. The rate of accidents of EVs was higher than for ICE vehicles which Hertz attributed to a lack of familiarity with the EVs for drivers.

 7. Cold weather turns out to have a monumental negative impact on EV performance. Hot weather is no drive in the park either.

So, Big Red Car, what did Hertz do?

Ahhh, dear reader, Hertz bit the bullet and is getting rid of its EVs and taking a massive charge against operations and is doubling down on depreciation.

The depreciation is actually based on the value of the cars they bought and the prices they can get for them in a “big dump” sale.

The EVs are worth way, way, way less than Hertz scheduled them to be based on market forces that are not keen on a used EV for some of the same reasons Hertz decided to get rid of them.

Bottom line it, Big Red Car, lunch plans

Fine, dear reader.

 1. You cannot force feed markets. Markets are brutal and uncompromising. They are not religious and they don’t care what the woke progressives want to be true.

 2. No question EVs are the future, but let the market absorb them while the infrastructure — charging stations, maintenance facilities, and knowledge base — is being built.

 3. The electric grid today cannot handle EVs on every street let alone EVs in every garage.

You can fool fools, but you can’t fool markets.

But, hey, what the Hell do I really know anyway? I’m just a 1966, ICE muscle man, girl magnet, candy apple red, Chevy Super Sport convertible that lives to feel the wind in my hair while running free.

Life is so great!