Why are US automakers abandoning electric vehicles? Explained
Why are US automakers abandoning electric vehicles? Explained
Ford’s Electric SUV Initiative
Bharatmorningnews.com – In May 2023, Ford unveiled a new three-row electric SUV during an investor gathering in Dearborn, Michigan. The vehicle was touted as swift, roomy, and capable of covering roughly 350 miles on a single charge. At the time, the company’s EV division leader, Doug Field, described it as a “personal bullet train,” as noted by Ford representatives.
Shifting Focus in the US Auto Industry
EV sales in the US surged by approximately 60% between 2021 and 2022, rising from roughly 490,000 to over 800,000 units. This growth was fueled by government investments in charging infrastructure and a federal tax incentive of $7,500 for electric car buyers. Experts anticipated a broader consumer adoption of electric vehicles, not limited to early adopters.
Challenges in Development
Ford initially viewed its electric SUV as a strategic long-term move. However, the project encountered hurdles. By April 2024, the company pushed back the launch by two years, citing the need for advanced battery technology. By August 2024, the initiative was fully canceled.
Broader Industry Trends
Other automakers followed suit. In July 2024, General Motors postponed its Buick electric SUV launch. By September 2024, Volvo scaled back its all-electric vehicle goals in the US. During 2025, Dodge and Jeep canceled their EV models, while Honda and Nissan reduced their sedan plans. The New York Times reported that these decisions reflected a shared shift among US manufacturers.
Policy Impact on EV Growth
The situation worsened after Donald Trump returned to the presidency. His administration eliminated the federal EV tax credit and relaxed tailpipe emission standards. Without financial incentives or environmental pressure, EV demand declined. As a result, the Big Three—Ford, General Motors, and Stellantis—reverted their focus to traditional gasoline-powered trucks and larger SUVs.
Production Challenges and Workforce Effects
Several EV assembly lines halted operations due to reduced production targets. Battery factories built during Biden’s presidency were either shut down or repurposed for industrial energy storage. Thousands of jobs were lost as companies scaled back their EV efforts. Doug Field, who oversaw Ford’s canceled project, departed the company during a 2026 restructuring, per The New York Times.
Global EV Market Trends and Future Outlook
Despite the US setbacks, global EV demand remains robust. The International Energy Agency (IEA) noted that one in four vehicles sold worldwide in 2025 was battery-powered. Bloomberg analysts predict this figure could nearly quadruple in the next decade, signaling a potential decline in gasoline-powered car sales. While Asian and European automakers continue heavy investment in battery tech, US companies have eased their spending. China now dominates 75% of global EV production, with BYD leading as the largest manufacturer.
“China is advancing rapidly in EV technology. Its companies can design and release new models 33% faster than US automakers,” said Stephen Ezell, a senior economist at the Information Technology and Innovation Foundation (ITIF), per The New York Times.
Financial losses from these cancellations have been significant. Stellantis reported around $26 billion in EV-related costs, while Ford incurred approximately $19 billion, according to the New York Times. Analysts warn that the US auto industry may struggle to close the gap with Chinese rivals if current trends persist.
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