General Motors $GM ( ▼ 0.96% ) CEO Mary Barra still sees electric-powered vehicles as the “end game,” even amid all the setbacks the EV sector has been hit with in recent months.
The details: At a kickoff press event for the Detroit Auto Show, Barra said the elimination of the $7,500 EV tax credit and rollback of fuel emissions standards have required GM to shift its product strategy but stressed that EVs are still key to the company’s long-term plan, reports Reuters.
GM will continue to develop plug-in hybrids and evaluate traditional hybrids while focusing on EVs because they are better products, said the CEO.
She also expects easier charging capabilities and lower pricing for electric vehicles will help grow adoption, even with policy rollbacks.
“It will take longer without the incentives, but I still think we’ll get there over time,” said Barra.
Why it matters: For GM dealers, Barra’s message is clear: Instead of going away completely, EVs are now on a slower, more complicated path. That means stores need to be ready to sell and service a mixed portfolio of ICE, hybrids, and EVs for years, while staying aligned with GM’s evolving incentives, product cadence, and charging solutions as policy winds shift.
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Between the lines: Barra’s comments at the event come as automakers continue to scale back on their EV strategies amid the Trump administration’s rollback of EV-focused policies and slowing market growth.
Ford, which took a $19.5 billion write-down last month, has killed several EV programs, adjusting to policy and market challenges tied to electric vehicles, per Reuters.
Last week, GM said it would record a $6 billion charge to unwind some electric-vehicle investments, following a $1.6 billion third-quarter charge.
Even amid the challenges, electric vehicles will continue to be a priority for GM, as the U.S. volume leader focuses on maintaining flexibility to be able to adjust to regulations imposed by other administrations down the road, explained Barra.
“I’m a little surprised at some [automakers] that are really pulling away very quickly, because we don’t know what will be in ‘29, ‘30, ‘32,” added the CEO.
Bottom line: Dealers who lean into the new reality by fostering EV and hybrid expertise, educating customers on the long game, and staying nimble as GM adjusts investments and timelines, will be better positioned than others.
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