End of the Road for Chevy's Malibu Model Amid Shift to Electric Vehicles

Chevy Malibu's Discontinuation

The Chevrolet Malibu, one of Chevy's longest-standing vehicle models, is being discontinued as the company transitions to electric vehicles (EVs). According to a recent report from Car and Driver, the production of the Chevy Malibu will cease in November 2024. This decision comes as Chevrolet plans to invest $390 million in its Fairfax Assembly Plant in Kansas.

GM's Production Shift

General Motors (GM), the parent company of Chevrolet, is also planning to halt the production of the Cadillac XT4 in January to make way for the Ultium-based Bolt EV. The production is expected to resume in late 2025, with the XT4 and Bolt EV sharing an assembly line.

Malibu's Legacy and GM's EV Challenges

Despite Chevy's recent focus on crossovers and SUVs, the Malibu has maintained its popularity, with over 10 million units sold across nine generations. However, its discontinuation is unexpected, given GM's recent struggles with its EV goals. These include falling short of its target to sell 400,000 EVs by mid-2024 and reintroducing plug-in hybrids to North America.

Financial Challenges in the EV Market

Just recently, it was reported that Ford is losing $120,000 per vehicle, casting doubt on the feasibility of California's EV goals. Ford reported a loss of $132,000 for each of its 10,000 electric vehicles sold in the first quarter of 2024. This significant loss includes hundreds of millions spent on research and development for the next generation of EVs, which are years away from yielding returns.

Impact on the Car Industry

With Californians purchasing 1.78 million new vehicles in 2023, the losses would amount to $235 billion. This could potentially bankrupt every car manufacturer, forcing them to stop selling in the state. The government would then have to establish government-owned companies to manufacture the cars, a situation reminiscent of the infamous Yugo car, dubbed “the worst car in history,” which was produced by the communist Yugoslav government in the 1980s.

In light of these developments, it's interesting to ponder the future of the automotive industry. Will the transition to electric vehicles be as smooth as envisioned, or will it present more challenges than anticipated? What are your thoughts on this? Share this article with your friends and let us know your opinions. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.