General Motors $GM ( ▲ 0.17% ) and Ford $F ( ▲ 0.07% ) seem well positioned to weather the storm of shifting their electrification strategy in the U.S., while Stellantis’ $STLA ( ▲ 1.03% ) EV transition could be higher risk, according to a Morningstar DRBS analysis.
First things first: Practically every automaker is adjusting its electrification strategy in the U.S. amid slowing EV demand growth (especially the Detroit Three) with EVs making up 8% of U.S. car sales in 2025 and 7.5% in Canada, compared to 18% globally.
Ford is focusing on affordable EVs and hybrids, with plans to launch a $30,000 electric pickup in 2027, while also leaning into its success with internal combustion engine (ICE) models.
GM is also prioritizing affordable hybrids and EVs such as the new $35,000 Chevrolet Bolt, while expanding its gas-powered offerings, announcing a $4 billion investment to expand both its ICE and hybrid powertrains.
Stellantis is taking a more aggressive approach in its shift away from EVs, pulling the plug on several planned electric models, while also pushing more plug-in hybrids onto the road and doubling down on ICE vehicles.
Why it matters: These pivots will shape what’s available on the lot, and what customers ask for, over the next 12 to 24 months. More emphasis on hybrids and mainstream-price EVs could help stabilize showroom traffic and reduce inventory risk, while abrupt product resets can create gaps in pipeline, mixed messaging to shoppers, and faster swings in incentives and residual values.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
Get insights trusted by 55,000+ car dealers. Free, fast, and built for automotive leaders.
Between the lines: Neither Ford, GM, nor Stellantis will be able to avoid significant financial strains associated with their EV shifts, but the pains endured by Stellantis already appear to be outweighing those of its cross-town rivals, per the Morningstar DRBS analysis.
With Ford having $28.7 billion in cash and cash equivalents as of December 31, the report contends the automaker’s revised electrification strategies will have a relatively neutral effect on its credit risk profile.
Morningstar DRBS’ analysis projects that GM’s EV plan will have a relatively neutral effect on its credit risk profile as well, with the automaker having $21 billion in cash and cash equivalents as of December 31.
However, the next 12 to 18 months are poised to negatively impact Stellantis, given €22.2 billion ($26.3 billion US) in charges as it scales back its electric vehicle strategy, according to the analysis.
What they’re saying: “…if the company's (Stellantis) current strategy is successful and leads to an improvement in operating performance, we could change the trend on Stellantis' credit rating to Stable from Negative," said Edoardo Danieli, Vice President, European Corporate Ratings, per the Morningstar DRBS analysis.
Bottom line: Dealers should plan for a market that’s increasingly hybrid-forward and value-focused on EV pricing. Stellantis’ near-term headwinds could translate into more volatility in production cadence, incentive posture, and model mix, making disciplined ordering and faster turn strategy even more important.
A quick word from our partner
ChatGPT can write emails, plan trips, even tell jokes…
But it can’t tell you which VINs are at risk of sitting too long, how your dealer performs against your competition, or how to improve your VDPs.
That’s where LotGPT comes in. It's the only chatbot built exclusively for car dealers. It knows your market, dealership and inventory.
Fueled by Lotlinx’s decades of VIN and Shopper data, plus your live inventory, Google Analytics and CRM, it delivers relevant answers and guidance to help you sell cars faster and more profitably.
LotGPT is free for dealers, but invite-only.
