The $25 Billion Reality Check: GM Ford EV Loss 2026 and Strategic Retreat
GM and Ford report over $25 billion in combined losses as they retreat from aggressive EV targets. Read our analysis of the GM Ford EV loss 2026 and their shift back to ICE vehicles.
A massive bill for over-optimism has arrived for Detroit's auto giants. Yesterday, General Motors (GM) informed investors that its decision to scale back EV production will cost the company $6 billion. This follows rival Ford's shocking $19.5 billion write-down last month, signaling a painful end to the aggressive electrification era. Combined, the two companies have wiped over $25 billion off their books in what experts call a historic strategic miscalculation.
GM Ford EV Loss 2026: Pivoting Back to Profits
While GM isn't ditching its EV lineup entirely, the shift in priorities is undeniable. The company is reducing shifts at multiple plants and repurposing facilities—such as the one in Orion, Michigan—to build combustion-powered pickups and SUVs instead of electric models. Current offerings from Cadillac, Chevrolet, and GMC will stay on sale, and the refreshed Chevy Bolt is set to launch this year. However, the volume targets that once defined GM's future are being slashed.
The Triple Threat Facing the EV Market
The retreat is driven by a perfect storm of policy and market friction. The U.S. government has abolished the $7,500 clean vehicle tax credit, a crucial incentive for mass adoption. Furthermore, regulatory pressure on fuel efficiency has eased, allowing automakers to pivot back to high-margin gas guzzlers. Added to this is the intense hostility from car dealers, who have struggled to move expensive EV inventory off their lots. For GM and Ford, these hurdles proved too steep to ignore.
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