The North American International Auto Show in Detroit has altered its indoor track usage, now allowing hybrids and gas-powered vehicles alongside electric vehicles (EVs). This change reflects a broader industry shift away from a sole focus on EVs, influenced by recent policy changes under President Donald Trump's administration.
Industry Perspective
Todd Szott, chairman of the event, stated that the show mirrors current consumer trends. Industry players emphasize "consumer choice" in vehicle offerings. However, experts like Michael Robinet from S&P Global Mobility express concerns about the long-term competitiveness of U.S. automakers as global markets, particularly China, continue to electrify.
Electrification Trends
Data from Benchmark Mineral Intelligence indicates that U.S. sales of electrified cars (including plug-in hybrids) grew by only 1% last year. In contrast, China saw a 17% growth, and Europe experienced a 33% increase in plug-in hybrid and electric vehicle sales. The U.S. pure-EV market share was under 8% in 2025, with a slight decline from 2024.
Policy Changes and Impact
President Trump, during a visit to the Ford River Rouge Complex, highlighted policy changes he claims have boosted U.S. automakers. These changes include:
- Revoking a previous target for half of new U.S. vehicle sales to be electric.
- Attempting to block funding for EV charging infrastructure.
- Cutting tax incentives for EV purchases.
- Weakening fuel economy standards and eliminating penalties for non-compliance.
Trump stated his appreciation for electric cars but criticized the rapid push for their adoption. These policy shifts have impacted the U.S. auto industry, leading to significant investments in electrification being scaled back. Ford Motor Co. announced $19.5 billion in charges related to electrification efforts and ended production of the all-electric F-150 Lightning truck. General Motors also reported $6 billion in EV-related charges and has adjusted its EV commitments. Tesla, a former market leader, also faced challenges in 2025.
Shawn Strain, marketing manager at Ford, reiterated the company's commitment to EVs, though acknowledging a less overt approach.
Global Competition Concerns
Michigan Gov. Gretchen Whitmer addressed the auto show, noting China's aim to dominate auto manufacturing and its significant market share globally, excluding the U.S. and Canada. Will Roberts from Benchmark Minerals stated that U.S. policy changes have influenced automakers' responses. He suggested maintaining a compelling EV offering in the background to avoid falling behind.
Pete Buttigieg, former transportation secretary, commented that while electric vehicles are becoming the leading automotive technology, U.S. policies could hinder America's leadership in this sector.