Detroit Automakers Take $50 Billion Hit

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by msmash

February 14, 2026

AI-Generated Deep Dive Summary

The Detroit Big Three—General Motors, Ford, and Stellantis—have collectively incurred over $50 billion in write-downs on their electric-vehicle (EV) businesses following years of significant investments. This downturn occurred even before the Republican-led abolition of a $7,500 federal tax credit for EV purchases last fall, which had already left the sector underperforming. U.S. EV sales plummeted by over 30% in the fourth quarter of 2025 after the credit expired in September, while Congress also eliminated federal fuel-efficiency mandates. Additionally, more than $20 billion in previously announced investments in EV and battery facilities were canceled last year—a first-of-its-kind annual decrease—according to Atlas Public Policy. The challenges have led to significant restructuring across the industry. General Motors has laid off thousands of employees and shifted production at several plants from EV trucks and motors to gas-powered vehicles and V-8 engines. Ford, too, scaled back its ambitions by dissolving a joint venture with a South Korean conglomerate focused on battery production. Instead, Ford now plans to introduce just one low-cost electric pickup truck by 2027. Stellantis, meanwhile, is divesting from its battery-making business after recording the largest EV-related charge so far among automakers. Outside the U.S., however, the EV landscape looks very different. China’s BYD recently surpassed Tesla as the world's top EV seller, highlighting the growing dominance of Asian markets in the EV sector. While American automakers grapple with financial losses and shifting strategies, global competition—and particularly the rise of Chinese manufacturers—underscores the complexities of the ongoing EV transition. This situation matters to tech readers because it reflects broader challenges in transitioning to new technologies and markets. The Detroit Big Three’s struggles highlight the risks of aggressive investments without corresponding consumer demand or government support. Their pivot back to gas-powered vehicles signals a reevaluation of priorities, with implications for innovation, global competition, and the future of sustainable transportation. As other regions like China continue to dominate EV growth, U

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Originally published on Slashdot on 2/14/2026