Auto Industry Cuts Costs Amid EV Challenges

Car production in the UK fell by 15.3% in October, with manufacturers facing pressure to meet government mandates requiring 22% of sales to be electric vehicles (EVs). This decline is compounded by a 17.6% drop in exports and a 4.7% decrease in domestic vehicle production, prompting industry leaders to express concern over the lack of consumer demand and necessary incentives. Major automakers like Ford and Stellantis are implementing cost-cutting measures, including layoffs, as they grapple with the high costs associated with EV and autonomous vehicle development. The Biden administration's push for EV adoption faces challenges due to logistical hurdles despite the allocation of federal funds for infrastructure. Analysts note that the auto industry is shifting focus towards capital efficiency, prioritizing profits over aggressive spending on new technologies. Overall, the sector is experiencing a significant slowdown following years of unprecedented investment in electric and self-driving vehicles.