Big legacy U.S. and European automakers are frantically dialing back their electric vehicle bets, scaling back once-hyped roadmaps to full electrification as demand for these vehicles implodes.
The latest automaker to reverse course is not a mass-market sedan or SUV maker, but a luxury supercar brand: Lamborghini.
CEO Stephan Winkelmann told the UK'sThe Sunday Timesthat he has ended plans to build EVs, saying customers are not seeking quiet supercars and that demand has collapsed.
Winkelmann said that EV development risked becoming "an expensive hobby" for the car company. He stated that the previously announced all-electric concept car, Lanzador, will no longer be part of its future lineup of supercars.
He noted that the "acceptance curve" for EVs in Lamborghini's target market was flattening and "close to zero."
Winkelmann said the Lanzador will be replaced by a plug-in hybrid electric vehicle. He added that the Italian carmaker will produce internal combustion engines "for as long as possible."
"EVs, in their current form, struggle to deliver this specific emotional connection," Winkelmann explained, pointing out that customers who buy luxury cars seek the sound of a roaring engine.
The slower path toward full electrification, or in some cases partial electrification, is not just a Lamborghini story or limited to the luxury auto market. There has also been a sharp reversal by mass-market automakers over the last six months or so, as they dial back EV ambitions or entirely scrap their electrification plans:
Ford: Hit with a $19.5 billion charge, canceled multiple planned EV programs, and redirected spend away from larger EVs toward hybrids and other priorities.
General Motors: Announced a $6 billion charge to unwind some EV investments, alongside factory and battery-plant adjustments to better match demand.
Source: ZeroHedge News
