"GM had planned to completely phase out gas-powered light-duty vehicle sales by 2035, a goal announced in 2021 and reaffirmed in 2023 by CEO Mary Barra. This target was aggressive even at the time, set against federal policies like the $7,500 EV tax credit that aimed to boost adoption. The plan required massive investments in battery production and EV models, but demand has not materialized as expected."
"Other manufacturers set more tempered goals. Ford, for example, targeted half of its global vehicle volume to be hybrids, extended-range EVs, or full battery EVs by 2030, up from 17% in 2025 - a mix that proved less disastrous than GM's all-EV push. Ford's $19.5 billion charge covered pivoting factories, like converting a Tennessee plant from EV pickup production to gasoline models, and redirecting battery capacity to energy storage."
General Motors is taking a $6 billion charge after scaling back electric vehicle initiatives, cancelling supplier contracts and reducing production plans. Ford took a $19.5 billion charge in December after canceling EV programs and shifting focus as the EV market weakened. GM's stock rose 52% over the past year versus Ford's 32%, but Ford offers stronger investment prospects because broader powertrain options match consumer preferences for hybrids and gasoline vehicles. GM had targeted phasing out gas-powered light-duty sales by 2035 and invested heavily in batteries and EV models, but demand fell and the loss of a $7,500 tax credit pushed GM's EV sales down 43%, prompting plant slowdowns and repurposing.
Read at 24/7 Wall St.
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