America Risks Becoming Automotive Backwater Amid EV Transition

Detroit automakers face $50 billion in write-downs as they struggle to catch up to global EV leaders

Published on Mar. 2, 2026

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America's once-dominant auto industry is at risk of falling behind in the global shift to electric vehicles, with Detroit's Big Three automakers facing over $50 billion in write-downs on their EV investments. The industry's missteps, including a failure to take EVs seriously early on and political opposition from the Trump administration, have allowed other countries like China to surge ahead in EV adoption and technology.

Why it matters

The decline of the U.S. auto industry would have major economic and technological implications, as the sector has long been a source of American manufacturing jobs and innovation. Falling behind in the EV transition could cost the U.S. its status as an automotive leader and cede that ground to foreign competitors.

The details

After sleeping on electric vehicles for too long, Detroit's Big Three automakers - Ford, General Motors, and Stellantis - finally entered the EV market, but with vehicles that lacked the sophistication of Tesla's offerings and were too expensive for many consumers. This has resulted in massive write-downs, including $19.5 billion for Ford, $7.6 billion for GM, and $26.6 billion for Stellantis. The Trump administration also rolled back emissions regulations and eliminated the federal EV tax credit, further hampering the industry's transition.

  • In 2025, global EV sales reached a record 20.7 million units, up from just 3 million in 2020.
  • In the U.S., EV sales were around 10% of the overall auto market in 2025.

The players

Ford

One of the Big Three Detroit automakers that has struggled to transition to electric vehicles, announcing a $19.5 billion write-down on its EV investments.

General Motors

Another of the Big Three Detroit automakers that has faced challenges in the EV transition, taking a $7.6 billion charge related to its EV investments.

Stellantis

The parent company of Chrysler, Jeep, and other brands, which took a $26.6 billion hit on its EV investments, the largest of the Detroit automakers.

Donald Trump

The former U.S. president who rolled back emissions regulations and eliminated the federal EV tax credit, hampering the industry's transition to electric vehicles.

Margo Oge

Former top vehicle emissions regulator at the EPA, who stated that the U.S. no longer has any meaningful emissions standards.

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What they’re saying

“The US no longer has emissions standards of any meaning. Nothing. Zero. Not many countries have zero.”

— Margo Oge, Former top vehicle emissions regulator, EPA (The New York Times)

“Hopefully, they've learned their lesson and don't allow this breathing room to be their gas chamber.”

— Ivan Drury, Director of insights, Edmunds (The Verge)

What’s next

California is challenging the move by Congressional Republicans to revoke its waiver to enact its own emissions regulations. If California wins, automakers could find themselves stuck between the pro-EV California and the anti-EV Washington, forcing them to continue developing multiple powertrain options.

The takeaway

The U.S. auto industry's failure to embrace the electric vehicle transition in a timely manner has put it at risk of falling behind global competitors, with over $50 billion in write-downs by Detroit's Big Three automakers. Overcoming this will require automakers to ignore political pressure and continue investing in EV technology and infrastructure, or risk ceding their once-dominant position in the automotive industry.