Illinois Governor Pritzker prepares for bright EV future. Will lack of demand ruin his plans?

Caryn Lipson

March 10, 2024

Illinois governor anticipates bright EV future

Illinois Governor J.B. Pritzker participated in a ribbon-cutting ceremony for a new taxpayer funded electric vehicle (EV) manufacturing training facility. Pritzker stated at the ceremony that this would benefit the state’s future workers, as reported by ABC7 in the video below:

"Programs such as Heartland's represent the best of Illinois' commitment to investing in and educating the next generation of workers," Pritzker said. "That's why my administration pledged $15 million to open these centers and why my FY25 budget proposes another $24 million-Illinois must be ready for the jobs of the future."

Center Square’s Kevin Bessler reported that Pritzker hopes to have one million EV cars on the state’s roads by 2030.

State EV mandates rob consumer of their rights

Despite Pritzker's projections for EV usage, American Fuel and Petrochemical Manufacturers (AFPM) President and CEO Chet Thompson, whom Bessler quoted, believes that the switch to EVs and away from gas- and diesel-powered vehicles comes at the expense of the consumer:

“The fact that consumers in a couple years are literally going to be robbed of their ability to choose the cars that are most popular and most meet their needs, that is not something that people are happy about.” [Emphasis added.]

Thompson stated that Biden’s push for EVs is “bad for families, bad for the economy and bad for U.S. manufacturing jobs and is happening too fast.” California, he noted, is another example of a state removing consumer choice:

“In a few short years in California, you will absolutely, without qualification, not be able to buy a car that runs on gas or diesel. That’s 35% of the new car market and the rest of the country, two-thirds of cars are forced to be electric.”

EV market facing downturn

However, Bessler noted, that consumer reluctance to purchase electronic vehicles has some manufacturers reconsidering future manufacturing plans:

Americans have been slow to give up their gas-powered vehicles for EVs. EV manufacturers, including Tesla and Ford, have been slashing prices to pick up sales, and General Motors is talking about bringing back plug-in hybrids, possibly taking a step back from the company's earlier commitment to shifting straight to pure EVs.

Rivian Automotive, with a plant in Normal, recently announced it was laying off 10% of its workforce and plans to keep production this year flat compared to 2023. The company just announced that it was halting construction of a $5 billion factory in Georgia. Rivian officials said production of R2 mid-sized SUVs will now be moved to Normal. In 2017, the company received nearly $50 million in Illinois tax credits to create jobs in Illinois.

Concurring with Bessler’s market assessment is Forbes contributor Greg Petro, who reported on the softening demand for EVs:

[f]ully electric passenger car demand is softening, fast.

Unsold inventories have been clogging dealers’ lots. Manufacturers–from the biggest brands down to the smallest startups–are cutting back on production and investment plans. AppleAAPL +1% recently scrapped a passenger car project after spending more than $10 billion trying to turn a car into another device.

In fact, a lack of enthusiasm for EVs was in evidence at the recent Pittsburgh International Auto Show. Attendees, he said, found a small EV test drive area in this year's show in space that would ordinarily have been filled with exhibitors:

A large swath of what is usually exhibitor space had been converted to a small EV test drive course. The electric car buzz of previous years was notably absent.

Too many EVs?

There may even be a glut of EVs soon. China’s economy, he points out, is cooling off and, with it, EV demand, which could lead to a surge in exports to the U.S.:

The situation is worse in China. As its economy cools off, EV demand is softening and a price war has broken out. Manufacturers continue to produce at a record pace, with the potential export of over-supply a threat to an already saturated global market.

Petro says survey results over the last couple of years have been overly optimistic. While 30-40% of consumers indicated their intention to buy an EV, "where the rubber meets the road, drivers have been ambivalent or skeptical all along.”

Will Pritzker's gamble pay off?

All this begs the question – will future EV manufacturing workers Pritzker is so enthusiastic about training have jobs waiting for them when they finish?

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