Detroit mishandled the EV transition, and Trump’s emission rule rollback worsened the situation. For decades, America’s auto industry, led by Detroit’s Big Three, was world-renowned. However, various missteps such as the 1970s fuel crisis and the 2000s’ financial collapses led to its decline. The failure to embrace electric vehicles during the 2010s and 2020s further exacerbated the problem, resulting in costly write-downs: Ford’s $19.5 billion, GM’s $7.6 billion, and Stellantis’ $26.6 billion. This exceeds $50 billion.
The reasons behind the failure include a lack of serious commitment from Detroit, resistance from dealerships, and political actions by President Trump. These led to the elimination of the EV tax credit, a reduction in emissions standards, and decreased EV sales. This regression towards irrelevance contrasts with the global shift towards electric vehicles, spurred by investments in technology and infrastructure.
In 2025, global EV sales hit 20.7 million, while US EV sales lag behind. Countries like China have heavily invested in EV technology, positioning themselves as global leaders. Measures like California’s push for emissions regulations could challenge the current status quo and compel automakers to continue developing multiple powertrains. Ford, GM, and Stellantis show commitment to EVs, as does the global auto industry, which is advancing the transition despite setbacks in the US. The transition continues but has yet to fully take hold in America.