Detroit’s “Big Three” automakers — Stellantis, General Motors (GM), and Ford — have together recorded approximately $50 billion in write-downs tied to electric-vehicle (EV) investments, reflecting a dramatic reassessment of the future of EVs in the U.S. market. These financial charges signal a painful retreat from ambitious electrification plans that had dominated strategy in recent years.
The write-downs span canceled projects, reduced production plans, scaled-back factory investments, and impairments on battery-related assets. U.S. EV sales have cooled sharply, particularly after the expiration of a $7,500 federal tax credit in late 2025, which previously helped buoy demand.
Big Three Breakdown: Stellantis Leads
Stellantis — the maker of Jeep, Ram, Dodge, and other brands — reported the largest single EV-related charge, at roughly $26 billion. The company’s leadership acknowledged that the pace of electrification had been overestimated and that its past strategy distanced the brand from consumer preferences. Stellantis’ CEO Antonio Filosa said the company failed to align with “car buyers’ real-world needs, means and desires,” underscoring the need for a business “reset.”
In announcing the charge, Stellantis also signaled a strategic pivot that includes renewed investment in internal-combustion platforms such as trucks and SUVs, underscoring a broader shift back to segments with established demand.
Ford and GM Follow Suit
Ford’s EV efforts have also taken a major hit, with roughly $19.5 billion in write-downs tied to canceled electric models, including its previously high-profile F-150 Lightning, and other EV program costs. The automaker’s leadership has acknowledged that broad EV investments did not resonate with the buying public as expected, prompting a sharper focus on cost discipline and lower-priced electric models in the future.
Meanwhile, General Motors has recorded roughly $6 billion in EV-related write-downs, largely tied to scaled-back production plans and reduced commitments to certain EV factory projects and supply agreements. GM plans to continue offering electric models but on a more measured scale that aligns with current demand patterns.
Demand Headwinds and Policy Shifts
Several structural factors contributed to the Big Three’s write-downs:
- Cooling U.S. EV demand: EV market share in the U.S. remains relatively modest, with electric vehicles accounting for single-digit percentages of total sales — a far cry from earlier forecasts of rapid adoption.
- Expiration of incentives: The federal EV tax credit’s sunset in late 2025 removed a key purchasing incentive, leading to a significant drop in EV purchases in late 2025 and beyond.
- Consumer behavior: Many buyers continue to favor traditional internal-combustion and hybrid vehicles, citing price sensitivity, range considerations, and charging infrastructure gaps.
These trends, combined with investments made under earlier regulatory assumptions, have forced automakers to reprice and reallocate capital across vehicle portfolios and supply chains.
Strategic Pivots and Future Focus
While these write-downs mark a sobering moment for Detroit’s EV ambitions, all three automakers stress that electrification remains a long-term goal — albeit on a more cautious timeline. Ford recently emphasized plans for a more affordable EV pickup by 2027, pursuing a strategy focused on attainable price points and broad appeal.
GM continues to support its Ultium battery platform and select EV models, though with a reduced pipeline of new electric products.
Stellantis is redirecting resources toward high-volume truck and SUV segments while maintaining a presence in electrified vehicles that align with consumer demand dynamics.
Market Implications and Investor Reaction
The combined $50 billion write-down underscores the risks of large capital commitments in rapidly evolving markets. Investors have reacted with mixed sentiment: while some view the recalibration as a necessary step toward profitability, others see it as a sign that legacy automakers may struggle to compete with leaner EV-centric competitors, including Tesla and burgeoning Chinese brands in global markets.
Despite the setbacks, Detroit’s automakers remain key players in the automotive landscape, and their evolving strategies will shape how EV adoption unfolds in the U.S. and abroad over the coming decade.
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Dan Craft
Staff Report
Staff Report
