Detroit Automakers Bet Big on Gas-Guzzling Trucks and SUVs

Regulatory rollbacks under Trump free US carmakers to focus on high-margin, emissions-heavy vehicles, risking long-term competitiveness.

Published on Feb. 24, 2026

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Detroit automakers have rediscovered their love for powerful, gas-guzzling trucks and SUVs under the Trump administration's rollback of environmental regulations. While this strategy promises short-term profits, it risks sending American automakers off a cliff as the rest of the world embraces electric vehicles backed by government policies. Executives pledge to invest in an electrified future, but the allure of fat margins on large internal combustion engine vehicles remains strong.

Why it matters

The sudden shift back to gas-powered trucks and muscle cars threatens to undermine US automakers' long-term competitiveness. EVs are still backed by regulations and incentives globally, and Chinese automakers are rapidly advancing their EV technology and lowering prices. If Detroit turns its back on electrification, its sales outside the US will likely shrink, and it risks falling further behind its international rivals.

The details

Gutting climate regulations under Trump has freed US automakers to sell as many gas-burning trucks and SUVs as they can. Muscle cars like the Dodge Charger and Ford's Mustang Dark Horse are back in vogue, with executives touting the "sound and roar of the V-8." This strategy promises a new era of fat profits, as large vehicles with powerful engines have always been the automakers' best margins. However, it risks sending them off a cliff long-term, as EVs backed by global regulations and incentives continue gaining traction, especially in markets outside the US.

  • In January, GM's earnings blew away expectations, leading more than a dozen analysts to boost their price targets.
  • Last summer, Congress blocked California's plan to ban sales of new vehicles with internal combustion engines by 2035, and the Trump administration proposed weaker fuel economy standards.
  • In December, Ford took $19.5 billion in charges on its money-losing electric car business and announced plans to convert an EV plant to make gas-fueled pickups instead.

The players

Donald Trump

The former US president whose regulatory rollbacks have freed automakers to focus on gas-guzzling trucks and SUVs.

Bill Ford

Executive chair of Ford Motor Co. and great-grandson of the company's founder, who says Ford is investing in an electrified future while also highlighting new gas-powered Mustang models.

Mary Barra

CEO of General Motors, which continues to develop battery-powered vehicles but has also canceled EV investments in favor of expanding production of its V-8 engines.

Jim Farley

CEO of Ford Motor Co., who says the company's profitability is improving and is looking forward to this year, even as it invests in EVs.

Mark Wakefield

Head of the global automotive practice at consultant AlixPartners, who warns that if US automakers just focus on gas-guzzlers, it would be a "horrific disaster" in a few years.

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What they’re saying

“Now is a great time for the V-8 engine. 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.”

— Ryan Shaughnessy, Mustang brand manager (Bloomberg)

“We certainly are not turning our back on the rest of the world. We are investing.”

— Bill Ford, Executive chair, Ford Motor Co. (Bloomberg)

“If they just go back to Hemi Land and not do anything, it would be disastrous in a few years — a horrific disaster.”

— Mark Wakefield, Head of global automotive practice, AlixPartners (Bloomberg)

What’s next

The Trump administration has proposed substantially weaker fuel economy standards that would require an average of 34.5 miles per gallon by 2031, down from about 50 mpg under the Biden administration's policy. This regulatory change is a key factor enabling Detroit automakers' current focus on gas-guzzling trucks and SUVs.

The takeaway

Detroit's automakers are prioritizing short-term profits from powerful, emissions-heavy vehicles, but this strategy risks undermining their long-term competitiveness as the global auto market rapidly shifts toward electric vehicles backed by government policies and incentives. If US carmakers fail to invest sufficiently in electrification, they could find themselves falling further behind their international rivals, especially those in China.