Hoot of the Day: Ford Wants Stricter Tailpipe Emissions

Tyler Mitchell By Tyler Mitchell Jun7,2024 #finance

Ford has gone to courts, siding with Biden to defend the EPA’s rules on tailpipe emissions.

Ford bet on EVs and failed. Its backup plan is to force the rest of the automakers to comply with the EPA’s new rules. The Wall Street Journal calls this Ford’s EV Stockholm Syndrome.

“Ford has taken steps to transform its business to ensure compliance with stricter emissions standards,” the company said in a brief to the D.C. Circuit Court of Appeals opposing the lawsuit. “Ford is investing billions in electrification efforts” and it “has a critical interest in ensuring that a level regulatory playing field applies to the entire industry.”

Translation: Ford has committed to spending tens of billions of dollars to comply with government EV mandates.

The Environmental Protection Agency’s new tailpipe standards for greenhouse gas emissions will effectively require that EVs and plug-in hybrids make up roughly 70% of auto-maker sales by 2032, up from about 9% last year. Companies will have to produce one to two electric trucks for every gas-powered one in 2027, and closer to four to one by 2032. Republican states rightly say the EPA is exceeding its authority under the Clean Air Act by “attempting to use the weight of the federal government to force manufacturers to produce more EVs.”

The EPA’s quotas will also result in higher prices for gas-powered cars, as auto makers seek to offset EV losses. Note that Ford has slashed EV prices to boost sales, while raising prices on some popular gas-powered models. This cost-shift won’t be sustainable as the EPA mandate ratchets up. Ford’s worry is that its EV investments will be for naught if the rule gets blocked in court. Then competitors that haven’t spent as much on EVs will speed ahead.

Ford is supporting the Administration’s regulation because it wants to socialize EV losses across the industry, even if this means consumers can’t buy the cars they want. To adapt Henry Ford, customers can have any car they want as long as it’s electric. The company may also be trying to grease the wheels for more government handouts. The Energy Department last year awarded Ford’s battery joint venture a $9.2 billion low-interest loan for three plants.

The Biden Administration is using subsidies and mandates to take companies captive to its climate agenda. Ford is the latest business to come down with Stockholm syndrome, but it won’t be the last.

Stockholm Syndrome

Stockholm syndrome is a coping mechanism to a captive or abusive situation. People develop positive feelings toward their captors or abusers over time.

This condition applies to situations including child abuse, coach-athlete abuse, relationship abuse and sex trafficking, and now EPA rules.

2024 EV Sequence of Events

Jan 11, 2024: Hertz Is Selling 20,000 EVs Due to Lack of Customer Demand

Hertz is selling a third of its EVs globally, with 20,000 in the US and will use some of the money to buy more Internal Combustion Engine (ICE) gasoline-powered cars.

Jan 18, 2024: $2 Billion in Subsidies, Only 2 EV Stations Opened, the Holdup is Social Justice

In yet another example of Biden incompetence, the administration is setting up rules making it harder to deliver EV charging stations.

Jan 20, 2024: Ford Loses $36,000 on Each EV, Cuts Production of Electric Trucks

Demand for EVs is nowhere close to projections so car makers are slashing production.

April 4, 2024: Ford to “Re-Time” New EV Production, Expand Hybrid Production

Today Ford announces a two-year delay, “retiming” until 2027, on new EV models scheduled for 2025. In addition. Ford will focus on a full line of hybrids.

April 11, 2024: Volkswagen EV Sales Plunge 24 Percent in the First Quarter

When the subsidies run out, EV sales show their true colors.

April 15, 2024: Elon Musk Fires 10 Percent of Tesla Workforce, Prepares for “Next Phase of Growth”

In preparation for more growth, Musk issues a memo announcing an workforce cut of 10 percent and two top Tesla (TSLA) executives resign. Let’s cut through all the lies.

April 26, 2024: Ford Loses $132,000 on Each EV Produced, Good News, EV Sales Down 20 Percent

Ford (F) reports a huge loss on every EV. Sales are down 20 percent holding the losses to $1.3 billion.

May 6, 2024: Another Round of Mass Firings at Tesla, Sales Must Be Imploding

Tesla announced yet another round of layoffs today. News came in the typical way, an email starting “Dear Employee”. It seems “Dear Ex-Employee” would be more fitting.

May 14, 2024: BYD Unveils the “Shark” a Plug-in Hybrid Pickup Truck Built in Mexico

The Chinese automaker BYD (Build Your Dreams) announces a 700-mile range PHEV that will be built in Mexico, this year.

Drum roll ……..

May 26, 2024: Hoot of the Day: Ford Wants Stricter Tailpipe Emissions

Any questions?

Tyler Mitchell

By Tyler Mitchell

Tyler is a renowned journalist with years of experience covering a wide range of topics including politics, entertainment, and technology. His insightful analysis and compelling storytelling have made him a trusted source for breaking news and expert commentary.

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