Detroit Automakers Take $50 Billion Hit
6 178The Detroit Big Three -- General Motors, Ford and Stellantis -- have collectively announced more than $50 billion in write-downs on their electric-vehicle businesses after years of aggressive investment into a transition that, even before Republican lawmakers abolished a $7,500 federal tax credit last fall, was already running below expectations.
U.S. EV sales fell more than 30% in the fourth quarter of 2025 once the credit expired in September, and Congress also eliminated federal fuel-efficiency mandates. More than $20 billion in previously announced investments in EV and battery facilities were canceled last year -- the first net annual decrease in years, according to Atlas Public Policy.
GM has laid off thousands of workers and is converting plants once earmarked for EV trucks and motors to produce gas-powered trucks and V-8 engines. Ford dissolved a joint venture with a South Korean conglomerate to make batteries and now plans to build just one low-cost electric pickup by 2027. Stellantis is unloading its stake in a battery-making business after booking the largest EV-related charge of any automaker so far. Outside the U.S., the trajectory looks different: China's BYD recently overtook Tesla as the world's largest EV seller.
6 comments
China is leaving the US in the dust (Score: 5, Insightful)
by OrangeTide ( 124937 ) on Friday February 13, 2026 @06:34PM (#65987702)
We can't compete, and it appears we don't even want to try anymore.
In 20 years your average American won't even be able to afford an American car, so I guess this hardly matters.
Re:China is leaving the US in the dust (Score: 5, Insightful)
by caseih ( 160668 ) on Friday February 13, 2026 @07:20PM (#65987818)
In 20 years? The big three US automakers have been focused on the luxury market for years, ceding much of the affordable compact car market to the likes of Kia and Toyota (foreign-owned, some domestic production). GM, Ford, and whatever you call Chrysler hardly make any cars anymore. They mostly make trucks and luxury SUVs. And they have been very successful at it and make tons of money. But the side effect is that few average Americans can really afford their products right now.
When GM's CEO whines about Canada letting in Chinese EVs , the hypocrisy is on full display, since that is a market they decided they don't want to bother with anyway. They were happy enough to try it when the could get the subsidy.
Re:China is leaving the US in the dust (Score: 5, Insightful)
by LDA6502 ( 7474138 ) on Friday February 13, 2026 @07:58PM (#65987874)
This. When GM brought back the Bolt after a massive outcry, only the compact crossover was resurrected, not the smaller sub-compact hatchback. So if you want a tiny electric city car for commuting, you're out of luck.
Meanwhile, every major Chinese automaker has compact and sub-compact BEVs (and often PHEVs) that are affordable. So I can only imagine how quickly US brands are going to cede the Canadian, Caribbean, and Latin American markets to the Chinese and Koreans.
Re: How I'm reading it... (Score: 5, Interesting)
by alcmena ( 312085 ) on Friday February 13, 2026 @07:15PM (#65987810)
As a three time Tesla owner, I can state their cars were not low quality. In virtually every possible way they were better than any Big 3 car I ever drove. Owned a 2016 S that I traded in for a 2022 S. Wife had a 2018 3. Both traded in last April.
We ditched our Teslas last year for Ioniq 5's, but that decision had nothing to do with the car quality. I just couldn't keep dealing with the Musk that hovered in the air being a Tesla owner anymore.
Re:Maybe US automakers should focus on quality (Score: 5, Insightful)
by cusco ( 717999 ) on <brian@bixby.gmail@com> on Friday February 13, 2026 @07:56PM (#65987872)
My uncle worked at the Chrysler Proving Grounds where he got to do the fun things like drive cars into brick walls and T-bone them with steel rails. In the late '70s they sent most of his team out to wreaking yards around the country. There they looked for vehicles with more than 70,000 miles and tore them apart, their task was to look for parts that were not wearing as fast as others. For example if the swing arms were still in good shape the company would lean on the manufacturer to lower the quality so that they would also fail before 100,000 miles, that way high-mileage vehicles would rapidly become too expensive to maintain and owners would be forced to buy a new vehicle. He said that he met testers from the other big car companies in some of the junkyards doing the same thing.
I suspect management had been "inspired" by the poem "The Wonderful One-Hoss Shay".
https://www.gutenberg.org/file... [gutenberg.org]
RIP US automakers (Score: 5, Insightful)
by Cyberax ( 705495 ) on Friday February 13, 2026 @09:00PM (#65987990)
Well, the Ford guy toured the Chinese companies, got scared, and decided that it's a good time to squeeze the automakers for the last dregs of profits. Before they go down for good.
Meanwhile, Africa and Asia are getting flooded by Chinese EVs. That are now superior to gas cars on price and reliability. And that can be charged from local solar, not depending on imported gas. The cheapest Chinese EVs are now less than $10k, and you can get a very reasonable EV for $15k.
It's amazing seeing the entire industry self-destructing before our eyes.