Internal Department of Energy (DOE) documents circulating Capitol Hill reveal a sweeping plan to unwind more than $7.5 billion in clean-energy and EV-related funding grants.
The details: Should the Trump administration move forward with the cancellation of these programs, automakers stand to collectively lose billions, reports Reuters.
The funding includes $500 million granted last year to GM to convert its Lansing Grand River Assembly Plant in Michigan for EV production.
Another $335 million was awarded to Stellantis to retool the shuttered Belvidere Assembly Plant in Illinois to build mid-size electric trucks.
Stellantis could also lose an additional $250 million to convert its Indiana Transmission Plant in Kokomo for EV component manufacturing.
Why it matters: The potential rollback comes as automakers are already scaling back EV production with the repeal of federal EV tax credits. And stripping away federal funding could intensify that pullback—delaying plant conversions, thinning future product pipelines, and giving global competitors more room to advance their EV strategies.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
No-BS insights, built for car dealers. Free, fast, and trusted by 55,000+ car dealers.
And between the lines, other possible cuts include:
A $32 million award to Hyundai Mobis, which supplies Stellantis from its Ohio plant, for plug-in hybrid and battery pack production.
And $208 million slashed from the Volvo Group to upgrade facilities in Maryland, Virginia, and Pennsylvania for expanded EV capacity.
Worth noting: Additional proposed reductions include $89 million for Harley-Davidson, $80 million for school bus maker Blue Bird, and $75 million for engine manufacturer Cummins, with roughly $1.2 billion in energy funding already canceled.
What they’re saying: The Energy Department stated it “continues to conduct an individualized and thorough review of financial awards made by the previous administration. No determinations have been made other than what has been previously announced.” (via Reuters).
Bottom line: If enacted, the DOE cuts could trigger another wave of uncertainty for dealers—slowing EV product flow, delaying new model launches, and heightening hesitation from automakers and consumers alike until policy direction and market demand regain stability.
A quick word from our partner
Want insider knowledge on today’s auto retail trends?
The Haig Report® is the industry’s longest-published, most-trusted quarterly resource on dealership values. Since 2014, it has delivered insights on performance, market shifts, and franchise desirability—helping leaders spot opportunities and risks.
Each edition includes exclusive insights on valuation trends, brand outlooks, and blue sky values.
Looking to grow your portfolio or explore investments? Join our exclusive buyer and investor database at haigpartners.com/buyerdatabase.
