Does a Gas-Guzzler Revival Risk Dead-End Futures for US Automakers?

Source: Slashdot

Background

If U.S. automakers turn their backs on electric vehicles, “their sales outside the U.S. will shrivel,” warns Bloomberg. [Alternate URL]

American manufacturers are already falling behind on EV technology and are relying on a 100 % U.S. tariff on Chinese EVs to keep surging rivals like BYD Co. at bay.

Mark Wakefield, head of the global automotive practice at AlixPartners, notes that while “the American automakers mostly understand the challenge in front of them, they don’t have full plans” to confront it.

Industry Perspectives

V‑8 Enthusiasm

“Now is a great time for the V‑8 engine,” said Ryan Shaughnessy, the Mustang’s brand manager. “We’ve done extensive customer research in multiple cities, looking at a variety of powertrains, and the V‑8 is always the number‑one choice.”

U.S. automakers have long been run by “car guys”—enthusiasts who live for the bone‑shaking rumble of a big engine. For many, quiet and smooth EVs— even the absurdly fast ones— cannot satisfy that craving. They believe many American buyers share the same enthusiasm for “the sound and roar of the V‑8.”

Wall Street Reaction

Wall Street has welcomed the renewed focus on traditional powertrains. Ford, for example, is forecasting operating profits that could grow by as much as 47 % this year to $10 billion, and its stock has risen nearly 50 % over the past 12 months.

Under previous environmental rules, automakers had to sell zero‑emission vehicles in growing numbers to offset their gas‑guzzlers. When they fell short, they bought regulatory credits from EV companies such as Tesla Inc. or faced penalties. GM spent $3.5 billion on credits from 2022 to mid‑2025.

According to JPMorgan Chase & Co. analyst Ryan Brinkman, GM and Ford each now have “billion‑dollar tailwinds.”

Competitive Landscape

The “hangover” from renewed horsepower could leave U.S. automakers lagging behind Chinese rivals that already build the world’s most advanced—and lowest‑priced—electric cars. Detroit is abuzz with talk of a competitive tsunami that could be unleashed once Chinese car companies break through the trade barriers currently protecting the U.S. market.

Ford CEO Jim Farley calls this an “existential threat.”

“They’re going to build as many V‑8 engines and big trucks as they can get out the factory doors,” said Sam Fiorani, vice president of vehicle forecasting for Auto Forecast Solutions. “And as the rest of the world develops modern drivetrains, newer batteries and better electric vehicles, GM and Ford in particular are going to find themselves falling even further behind.”

Future Outlook

• GM continues to develop battery‑powered vehicles, and CEO Mary Barra has said the automaker will soon offer a “handful” of hybrids.
• Ford and Stellantis plan to launch extended‑range electric vehicles (EREVs), a new kind of plug‑in hybrid that recharges the battery while the vehicle drives.

While these investments signal a shift toward EVs, the article notes that automakers are also “leaning into the lucre that comes from selling millions of fossil‑fuel vehicles in a rare moment of loosened regulation.”