Four Traditional U.S. and Japanese Automakers Scale Back EV Strategies, Incurring Nearly $70 Billion in Combined Losses

Hit by a sharp decline in U.S. electric vehicle (EV) demand and shifting government policies, Honda, Ford, General Motors (GM), and Stellantis have all scaled back or canceled their EV plans. Honda has scrapped three all-electric models slated for the U.S. market, including the Acura RSX. Ford has halted production of the underperforming F-150 Lightning and axed a planned new EV SUV project. GM has paused production of its electric van to resume manufacturing gasoline-powered pickups, while Stellantis has also terminated development of multiple EV models. According to Auto News, the combined losses from these automakers’ scaled-back electrification investments amount to nearly $70 billion (approximately RMB 483.6 billion). In December last year, U.S. EV registrations plunged 48% year-over-year, with EVs accounting for just 5.3% of the overall market share. On the policy front, the federal $7,500 EV tax credit was eliminated, further dampening market momentum.