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GM adjusts powertrain plans to reflect market demand and infrastructure limits
The automaker announced an $888 million investment in the production of a next-generation V-8 engine. (3 min. read)

Mary Barra
General Motors $GM ( ▲ 2.1% ) is still all-in on EVs, even amid all the uncertainty surrounding electric vehicles and plans to ramp up its V-8 offerings. However, it’s clear: the Detroit automaker sees no reason to rush into electrification.
First things first: The reaffirmation of the automaker’s commitment to electric vehicles came from GM CEO Mary Barra during the Wall Street Journal’s Future of Everything conference, a day after the automaker announced an $888 million investment into an engine plant to make gas- and diesel-powered V-8s for trucks and SUVs.
Barra touted that GM has more EVs in the market right now than any other automaker in the U.S., as it continues to grow its market share in the segments.
The GM CEO said infrastructure will determine the path to all electric vehicles—but feels the market will get there because EVs are getting better.
Barra’s comments about GM’s commitment to EVs follows her backing of a Senate vote last week to end California’s EV mandate. The GM CEO has also said that to meet the required mandate, 37% of new vehicle sales need to be electric right now, a far cry from the national average for new EV sales in April, which was 7%.
What they’re saying: “I’ve been saying for a couple of years now that I thought the regulatory environment was getting in front of the customer. We’re committed to the customer, and the customer was telling us they weren’t ready,” said Barra.
Why it matters: While GM certainly isn’t deviating from its EV strategy, the company is clearly aiming to better align its product and powertrain strategy with market demand—which should ease some of the stress felt among GM dealers associated with selling electric vehicles.
Between the lines: During the Wall Street Journal event, Barra also spoke of how the auto tariffs imposed by President Trump helps Detroit automakers be more competitive in the EV sector and with other automotive innovations.
The GM CEO talked about the ground Chinese electric vehicle companies are globally, offering high-tech vehicles for much lower prices than what American car buyers pay.
Barra said tariffs are a tool that helps to level the playing field for U.S. automakers globally, noting how important it is for them to continue to innovate.
“We can’t let ourselves fall behind. It’s important that other companies do what GM is doing: keep investing in the technology of the future—EVs, connectivity, AI. That’s where I see the president looking deeply, to make sure there isn’t unfair advantages trying to displace the innovation or manufacturing in this country,” explained Barra.
Why it matters: By reaffirming its EV commitment while doubling down on gas-powered vehicles, GM signals a pragmatic strategy aimed at sustaining dealer confidence, remaining competitive against foreign EV makers, and navigating regulatory pressures without overextending.
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