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Detroit Automakers Backpedal on EVs, Bet Big on Gas Giants

In a surprising move that signals a shift in strategy, Detroit’s biggest carmakers are hitting the brakes on electric vehicle (EV) expansion. General Motors (GM), Ford, and Stellantis are redirecting their focus to what they do best — building and selling gas-powered pickups and SUVs. Despite years of promoting EVs as the future, profit pressures and uncertain consumer demand have made gas vehicles more attractive in the short term.

GM recently made headlines by canceling plans for a second electric vehicle plant. Instead, the company will continue producing its most profitable gas-powered models. Industry experts say the decision reflects a broader industry hesitation amid rising costs, slow EV adoption, and supply chain issues.

Why Detroit is Betting Big on Gas

While EVs have gained attention and support from the government, the reality in showrooms tells a different story. Pickup trucks and large SUVs remain bestsellers in America, particularly in rural and suburban markets. These models offer high profit margins, often thousands of dollars per vehicle — something EVs haven’t yet matched.

Ford’s F-150 and GM’s Chevy Silverado continue to dominate the U.S. market. Even as EV versions like the F-150 Lightning receive praise, they haven’t taken off in sales. EV trucks remain expensive and face charging infrastructure challenges, especially outside major cities.

“The math is simple,” said Michelle Krebs, executive analyst at Cox Automotive. “Detroit automakers make more money on gas trucks today than they would on EVs for years.”

GM Cancels Second EV Plant Amid Market Uncertainty

General Motors’ latest decision to cancel a planned EV plant has sent a strong message to the market. Initially part of a broader $35 billion EV investment plan, the facility was expected to boost production of battery-powered trucks and SUVs. However, slow sales and high battery costs have forced GM to reconsider.

The automaker said it would “pause investment in future EV facilities until consumer demand justifies the scale.” Instead, GM will increase output of profitable gas-powered models, particularly in the SUV and full-size truck segments.

This isn’t the first sign of EV slowdown. In late 2024, GM already delayed production of several EV models, including the Chevy Silverado EV and GMC Sierra EV. Now, it appears the company is taking a more cautious approach.

Details on GM’s plant cancellation

Ford and Stellantis Also Pull Back

GM isn’t alone. Ford Motor Co. has also slowed EV production plans. Earlier this year, Ford delayed nearly half of its planned electric vehicle launches, citing weak demand and rising interest rates. CEO Jim Farley acknowledged that hybrid and gas models would play a bigger role in the next few years.

“We’re meeting customers where they are,” Farley said. “Right now, that’s still with powerful trucks and SUVs that run on gas.”

Stellantis, parent of Jeep and Ram, has similarly emphasized hybrid and plug-in hybrid vehicles over full EVs, particularly in North America. The company said it would roll out more hybrid options while delaying some of its EV-only models.

Ford adjusts EV roadmap to match consumer demand
Stellantis to expand hybrids, ease off on EV-only models

Consumers Still Unsure About EVs

One of the biggest challenges facing the EV market is customer hesitation. High prices, range anxiety, and limited charging networks continue to dampen enthusiasm — especially outside major urban areas.

Even with federal tax credits and incentives, the average EV in the U.S. still costs over $53,000, according to Kelley Blue Book. That’s far higher than most consumers are willing to spend, especially in the face of inflation and rising interest rates.

Furthermore, charging infrastructure remains patchy. While urban centers and the West Coast are seeing improvements, many Midwest and Southern states still lack adequate public charging stations.

“As much as automakers want to go all-in on EVs, the real-world conditions just aren’t there yet,” said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions.

What This Means for the Auto Industry’s Future

While the move may seem like a step backward in the EV revolution, industry insiders say it’s more of a strategic delay than a retreat. Automakers are still committed to long-term EV goals, but they’re adjusting timelines to fit financial realities and consumer behavior.

By prioritizing gas-powered trucks and SUVs, companies like GM and Ford can maintain strong cash flow and invest in technology more cautiously. Meanwhile, they continue to work behind the scenes on battery improvements, software development, and charging infrastructure partnerships.

Still, critics argue that this delay could hurt the U.S. in the global EV race. China and Europe are moving full speed ahead with EV production and regulation. If American automakers fall too far behind, they risk losing market share globally.

Final Thoughts

Detroit automakers are making a calculated bet: that profits from gas-powered vehicles can sustain them until the EV market matures. While this decision might frustrate environmental advocates and some investors, it aligns with current market trends and consumer preferences.

The future of EVs is not canceled — just delayed. For now, expect to see more gas-powered trucks and SUVs rolling off Detroit assembly lines.

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Humesh Verma