General Motors is flip-flopping on electric vehicles. The company announced this month that it would pour $888 million into a New York engine plant in order to produce a new V8.
General Motors’ shift away from EVs
Reuters reported that the new propulsion plant will build a “next-generation” V8 engine in what seems like a clear departure from the company’s previous pledge to manufacture electric vehicles there.
This news comes as the EV market in the U.S. is in turmoil with the Trump administration’s tariff policy, the ongoing chaos at Tesla, and decreasing consumer demand.
Back in April, Bloomberg Business posted a clip to its TikTok account discussing “GM’s big bet on electric vehicles.”
The caption asks, “Will the company weather the downturn and come out on top? And what would this ambition mean for electric vehicle owners and for the consumers who want them?”
What happened to GM’s investment in electric vehicles?
In the video, journalist David Welch said the company was working on a 6-7 year strategy on EVs, but hinted that the Trump tariffs could derail that plan. “It’s kind of changed everything,” he said. “First of all, GM’s two most affordable EVs, which are the Chevy Equinox and the Chevy Blazer, they’re made in Mexico. So they’re facing a tariff right now.”
Welch continued, “The exception of the U.S.-made content on those vehicles. The rest of the vehicle will face a 25% tariff. There are other parts and things on U.S. assembled EVs that are going to be tariffed as well. And then the other big thing, of course, is Trump has vowed to get rid of the electric vehicle tax credits—that’s $7,500 to the consumer who buys one. It makes life that much more difficult when you’re trying to sell vehicles.”
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