Key Takeaways:
- General Motors (GM) has backed away from its 2035 goal of an all-electric vehicle lineup.
- The company is investing $4 billion in gasoline-powered cars and moving production of 500,000 gas vehicles from Mexico to the U.S.
- Cooling consumer demand and reduced federal support for green energy under the Trump administration are key factors.
- GM claims to still believe in an EV future but is lobbying against strict emissions standards.
- The company is investing heavily in traditional engines while underusing its EV plants.
General Motors Hits the Brakes on Electric Vehicle Goals
In a surprising reversal, General Motors (GM) has quietly stepped back from its ambitious plan to stop making gasoline-powered vehicles by 2035. Just two years ago, GM announced it would go all-electric by 2035, aligning with President Biden’s push for greener energy. But now, the automaker is shifting gears, investing billions in gas cars and moving production back to the U.S.
Why the Change?
In January 2021, GM made headlines by pledging to phase out gas-powered cars. This was shortly after President Biden took office, when new regulations and tax credits for electric vehicles (EVs) seemed inevitable. However, things have changed.
On Tuesday, GM revealed it’s putting $4 billion into producing mostly gas-powered vehicles. This move comes as the company moves half a million gas car production jobs from Mexico to the U.S. to avoid tariffs.
Auto analyst Sam Abuelsamid says this decision means GM is “giving up any hope” of meeting its 2035 EV goal.
Cooling Demand and Reduced Support
The shift isn’t just about money. Consumer interest in electric cars has dropped, and federal support for green energy has weakened under President Trump. Trump recently signed bills blocking California’s plan to ban gas-powered cars by 2035, a key part of the Democrats’ national EV strategy.
GM’s Mixed Messages
While GM still says it believes in an all-EV future, its actions tell a different story. CEO Mary Barra has often praised EVs, calling them “fundamentally better” and the future of transportation. Yet, behind the scenes, GM is lobbying against strict emissions standards, arguing they hurt consumer choice and affordability.
In a recent email, GM asked its employees to help fight these standards, calling them a “serious threat” to its business.
Production Plants Underused
GM continues to build EVs like the electric Chevrolet Silverado and Cadillac Escalade at its Factory Zero plant in Detroit. However, the plant is far from full capacity. Meanwhile, the company is investing in traditional engines. For example, it’s spending nearly $900 million to make V-8 engines in New York and $579 million to renovate an engine factory in Michigan.
In May, GM even halted plans to produce electric motors at its Buffalo plant, focusing on gas engines instead.
What’s Next for EVs?
GM’s move reflects a broader challenge for the auto industry. While EVs are seen as the future, high costs, limited charging infrastructure, and shifting political priorities are slowing the transition.
For now, GM seems to be hedging its bets, keeping one foot in the EV world while doubling down on gas cars. Whether this strategy pays off remains to be seen.
One thing is clear: GM’s decision marks a significant step back from its earlier promises, leaving many wondering if the 2035 goal is still achievable—or if it’s just a distant dream.