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Consumer Choice Over Automobile Mandates

Consumer choice should be the byword regarding the next generation of automobiles, not mandates for battery powered electric vehicles.

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A typical EV charging socket

The most refreshingly true statements articulated by Gill Pratt at the RealClearEnergy Future Forum are “Not everyone is the same” and “One size does not fit all.” As Toyota’s chief scientist, Pratt understands very well the complex nature of a very diverse consumer base (play the video to see his part).

Consumer choice is all-important

That is why a multi-path approach that enhances the customer’s quality of life is the most productive strategy. America’s motorists come from a variety of backgrounds who purchase vehicles for a variety of purposes. “Our job as a manufacturer is to adapt and provide customers with choices to satisfy their needs and desires,” says the executive.

Pratt’s discussion at the forum contained common sense that is just not so common anymore, especially among many elected officials, talking heads, and government bureaucrats. These same individuals are intent on forcing the general public into electric vehicles (EVs) regardless of the multiple issues that continue to plague the industry.

EVs problems have been rampant. Insufficient and faulty charging stations, high price tags, range anxiety, and difficulty in cold climates are among the main concerns. Some of these problems will be ironed out in the coming years, but others appear almost insurmountable. It should be up to the customer to decide what works best for their circumstances. An EV is a perfectly rational choice for a portion of car buyers; it is certainly not for others. And the data demonstrates this.

According to a survey released last month by Mckinsey & Company, nearly half of all EV owners do not plan to buy an EV for their next vehicle purchase; they will switch back to internal combustion. Citing many of the problems above, drivers seem to be experiencing some buyers’ remorse.

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Car dealers say: slow down!

Last fall, nearly 4,000 car dealers penned a letter to the Biden administration asking it to “tap the brakes” on its EV push. These cars have been stacking up on lots. That number surged to nearly 5,000 dealers less than two months later for a second letter, this time urging the president to “hit the brakes” on his “unrealistic” EV mandate. The demand is just not there.

Car manufacturers have been making some changes in their EV plans. Ford, General Motors, Mercedes, Volkswagen, and others are scaling back or delaying EV production. Even Tesla is bracing for a slower growth rate. The overall hype for an EV has worn off, and while there is still and will continue to be interest in these vehicles, it will be at a much slower pace than most executives anticipated.

Another conundrum is lithium. Aside from being a labor- and energy-intensive mineral to extract and process, there simply is not enough to produce the amount of EVs that global leaders desire. It will not be possible to switch out all gas-powered cars for EVs.

The hybrid alternative

With this in mind, Pratt made an astute observation regarding the big, over-sized batteries in EVs. It makes zero sense for most EV motorists to drive around with a heavy 1,000-pound battery containing an over-abundance of minerals when all they do is travel a handful of miles each day, then plug the car in at night. The better option is a hybrid, which has a small battery consisting of much fewer minerals, to make those frequent and smaller trips around town. Utilize the liquid fuel reserve for that occasional long-distance trek. This approach would be far less polluting and much more environmentally friendly.

A key takeaway from Pratt’s discussion is that it is rather difficult to predict the future. Technologies may try and forecast or calculate consumer behavior, but often, they miss the mark. He asserts that being in the industry requires some humility. “We have to prepare for a future that is uncertain; the solution to uncertainty is diversity.” Customers want options and they want to be able to choose products that work for them, not against.

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Those pushing the climate agenda by rushing through sweeping and radical changes could learn a lot from industry leaders. Auto manufacturers can produce vehicles that customers want while at the same time protect the environment. Technology, procedures, and techniques are constantly evolving and improving. Let the free market dictate changes and let consumers decide what works best for them.

This article was originally published by RealClearEnergy and made available via RealClearWire.

Policy Analyst at | + posts

Kristen Walker is a policy analyst for the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, visit www.theamericanconsumer.org or follow us on Twitter @ConsumerPal.

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