Automakers from Ford Motor and General Motors to Mercedes-Benz, Volkswagen, Jaguar Land Rover and Aston Martin are scaling back or delaying their electric vehicle plans.
The broad return to a more mixed offering of vehicles — with lineups of gas-powered vehicles alongside hybrids and fully-electric options — still assumes an all-electric future, eventually, but at a much slower pace of adoption than previously expected. "These technologies exist within the VW group, whether it's hybrids or plug-in hybrids," he said. "I think it's just a matter of time until we bring it here."
Since first adopting an all-electric deadline, of sorts, in January 2021, GM CEO Mary Barra and other executives have more recently said customer demand will steer its efforts. They maintainremains its guiding plan. Cadillac now says it will offer a full lineup of EVs, but not necessarily end production of all gas-powered models by 2030.
"We have to keep tabs on it ... although the ramp-up is slower than planned last year, we are always in a position to respond flexibly," he said, adding the company will "have to see in 2026 and 2027" regarding its plans to significantly reduce spending on gas-powered vehicles., the world's top-selling automaker has argued for years that a diversified lineup was the right strategy to meet all customer needs and reach its goal of being carbon-neutral by 2050.
"The expectations for EV growth in the U.S. market have shifted from 'rosy to reality' as sales increase, but customer acceptance of EVs isn't keeping pace," Cox Automotive said inThe available inventory of EVs in the U.S., measured in days' supply, has ballooned to 136 days, according to Cox. That compares to the overall U.S. industry at a 78 days' supply of new vehicles.
Shifting strategy comes with its own costs: Automakers that invested heavily in EV infrastructure and have since changed course could face write-downs or higher capital needs to shore up different production lines. But without consumer sales, they're left with little option.