WITH EV interest approaching all time lows after a rapid decline, some of the biggest manufacturers are going back on their words regarding electric expansion.
General Motors is the latest to do so, with a major move that emphasizes just how doomed the once seemingly inevitable green automotive future may be.
General Motors is the manufacturer behind beloved brands such as Cadillac, Chevrolet, and GMC[/caption]
General Motors is refocusing efforts away from EVs in several of its American plants[/caption]
Earlier this year, General Motors announced it would begin repurposing a suburban Detroit factory to build gas-powered pickup trucks, and the Cadillac Escalade SUV.
This decision reverses, in part, a multibillion-dollar plan announced by the automaker in 2022 which would make the Detroit factory its hub of EV-truck production.
While this hub is simply being moved to a different factory rather than totally scrapped, it’s nevertheless representative of the auto industry turning its back on EVs.
Alongside this announcement, GM also revealed a new $4 billion investment plan into domestic manufacturing plants which will produce both traditional gas-powered cars and EVs.
“Today’s announcement demonstrates our ongoing commitment to build vehicles in the US and to support American jobs. We’re focused on giving customers choice and offering a broad range of vehicles they love,” said GM chair and CEO Mary Barra at the time.
Shortly before this announcement, the manufacturer confirmed its plan to invest $888 million into a Buffalo, New York plant which will make sixth-generation V8 engines starting in 2027.
In the same move, it also decided to abandon the investment of $300 million into electric-vehicle motor production at another upstate New York manufacturing plant.
Further emphasizing the significance of these course corrective actions is GM claiming to rank second among sellers of electric vehicles in the US during the second half of 2024.
Clearly, the automaker isn’t struggling to sell EVs under its Chevrolet, Cadillac, and GMC brands, but is instead reacting to the current sociopolitical climate of the automotive industry.
Data shows that GM, Ford, Stellantis, Tesla, Rivian, and Lucid each invested $21 billion annually on average during President Donald Trump’s first term.
This swelled to $38 billion during President Joe Biden’s subsequent tenure, per consulting firm AlixPartners.
Most of this $38 billion was invested in EV and battery production, but automakers had already begun shying away from these plans even before Trump’s 2024 election win due to lessening demand.
The current Trump administration recently discontinued some of the biggest EV purchasing incentives, further diminishing interest in alternative-fuel vehicles.
These incentives include the $7,500 tax credit for buying one and the Clean Air Vehicle Decal program which allowed solo drivers of EVs to utilize high-occupancy vehicle lanes.
What is the clean vehicle tax credit?
This initiative provides new opportunities for consumers to save money on clean vehicles, offering multiple incentives for the purchase or lease of electric vehicles.
The clean vehicle tax program is a federally funded program through the US Department of Energy. Drivers who qualify could earn credit of up to $7,500 if they buy a new, qualified plug-in EV or fuel cell electric vehicle.
The amount of the credit depends on when you placed the vehicle in service (took delivery), regardless of purchase date.
The dealer should give you a paper copy of a “time of sale” report when you complete your purchase. Keep this copy for your records because it affirms that the dealer sent a report to the IRS on the purchase date.
You must file Form 8936 when you file your tax return for the year in which you take delivery of the vehicle.
Source: IRS
Culturally, EVs continue to struggle in connecting with gearheads. Some of these issues are based in fundamental differences in philosophy, while others focus on certain aesthetics of and approaches being taken with EVs.
While there are some exceptions to this, such as Hyundai’s Ioniq family and high-end luxury or performance EVs, demand and interest in them has generally slowed stateside.
Other manufacturers to abandon their EV plans in the last several years include Ford, Mercedes-Benz, Porsche, and Aston Martin, each pulling away in varying degrees but nevertheless doing so in some way.
EV EXCITEMENT
Despite the obstacles that lie ahead for EVs, the Yangwang U9 Xtreme EV’s recent success in becoming the fastest production car in the world could be the first step to breaking through them.
The highly anticipated 2026 Honda Prelude will revive the classic car as a true EV, which could help electric platforms in winning the hearts and minds of the public.
Ford is also still keeping its electric doors open despite slight pullback, evidenced by its leaked plans to revive the Ranchero platform as an EV from earlier this month.
2026 Cadillac Vistiq EV pre-production model[/caption]
