Detroit Automakers Take $50 Billion Hit

Source: Slashdot

Overview

The Detroit Big Three—General Motors, Ford, and Stellantis—have collectively announced more than $50 billion in write‑downs on their electric‑vehicle (EV) businesses after years of aggressive investment into a transition that was already lagging expectations before Republican lawmakers abolished the $7,500 federal tax credit last fall.

Impact on the U.S. EV Market

• U.S. EV sales fell more than 30 % in the fourth quarter of 2025 after the credit expired in September.
• Congress also eliminated federal fuel‑efficiency mandates.
• More than $20 billion in previously announced investments in EV and battery facilities were canceled last year, marking the first net annual decrease in years, according to Atlas Public Policy.

Company‑Specific Actions

General Motors

• Laid off thousands of workers.
• Converting plants originally earmarked for EV trucks and motors to produce gas‑powered trucks and V‑8 engines.

Ford

• Dissolved a joint venture with a South Korean conglomerate to make batteries.
• Now plans to build only one low‑cost electric pickup by 2027.

Stellantis

• Unloading its stake in a battery‑making business.
• Booked the largest EV‑related charge of any automaker to date.

Global Context

Outside the United States, the trajectory differs: China’s BYD recently overtook Tesla as the world’s largest EV seller.