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The new $888 million plan marks GM’s largest investment in an engine plant.

GM Backpedals on EVs

The Wall Street Journal reports GM Invests in V-8 Engines as It Backpedals on EVs

General Motors has abandoned a plan to pump $300 million into electric-vehicle motor production at its upstate New York plant and will instead invest $888 million to make the latest V-8 engines.

Since the EV announcement two years ago for its Tonawanda plant, electric-vehicle sales have slowed, prompting GM and other carmakers to walk back investment plans for the technology.

The company said Tuesday its new plan marks its largest single investment in an engine plant and makes Tonawanda its second propulsion plant to produce the sixth generation of V-8 engines.

The engines, used in full-size trucks and SUVs, use new combustion and thermal management innovations to improve performance while reducing emissions, the company said.

The investment includes new machinery, equipment, tools and facility renovations, and builds on GM’s work to boost its manufacturing facilities in recent years, including a half-billion-dollar investment in its Flint engine plant in 2023, the company said.

Nay Sayers Were Right

The nay sayers were right, at least in the US, and for now.

That’s the group I have been in. The US is just not ready for mass EV adoption.

China is another matter.

EV Sales in the US

In the first quarter of 2025, electric vehicles (EVs) accounted for approximately 7.5% of total new vehicle sales in the U.S., according to a report from Kelley Blue Book. This represents a slight increase from the 7% share seen in the same period the previous year.

EV Sales in China

In 2024, approximately 50% of all car sales in China were electric vehicles (EVs), including both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). China’s EV market share is significantly higher than that of the US and Europe. In 2024, China also accounted for nearly two-thirds (65%) of all electric cars sold worldwide.

Long-Term

I expect battery technology to improve, costs to improve, charging times to drop, and eventually there will be more charging stations.

Once infrastructure is in place sales will take off. Just don’t expect EVs to do much of anything for the environment.

One can blame Trump for the short-term but the blame really goes to Biden’s preposterous targets.

The US infrastructure was not ready, charging times too long, EPA rules too preposterous, and charging stations too few.

The house budget bill will roll back tax credits. But if you have to subsidize something, it’s really not affordable.

In due time this will change. Meanwhile, neither Biden nor Trump will allow China’s cheap EVs into the US market, slowing adoption.

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