General Motors and Harley-Davidson bet big on unproven electric vehicles

In the last decade, General Motors and Harley-Davidson made significant investments in electric vehicle technologies, believing it to be the future of their products. These companies diverged from the strategies of more cautious automakers like Toyota and Honda, who continued to invest in traditional internal combustion engines while exploring electric alternatives. The aggressive pursuit of electric vehicles by GM and Harley failed to meet market expectations, resulting in lackluster sales and a negative impact on their financial performances. Harley-Davidson's decision to produce the Pan America motorcycle in Thailand, primarily due to tariffs and trade regulations, further damaged its reputation among traditional customers who expect American-made products. Ironically, despite significant innovations and efforts in electric vehicles, both companies have struggled in recent years, losing consumer confidence, especially in their trucks and SUVs, which remain their last profitable products. As consumer trust diminishes, the risks associated with their business strategies may lead to long-term consequences for these once-thriving brands. The leadership's reliance on potential government bailouts could prove costly, and they could face dire circumstances if consumer confidence erodes permanently.