The world is following America’s EV pullback

American companies and elected officials have hit the brakes on EV adoption in recent months. And the rest of the world is starting to downshift, too.

General Motors this week announced it will take a $1.6 billion charge due to its EV plans not working out as intended, with the automaker blaming the financial hit on regulators’ mandates for EV production, as well as recent moves by the US government to end EV subsidies.

• GM is one of several major automakers who have lobbied heavily this year to loosen gov’t laws that require companies to manufacture a certain number of EVs.
• Automakers say US consumers aren’t adopting EVs as quickly as expected, and government efforts to boost the tech are hurting their bottom lines.

America’s U-turn is spreading globally

In recent months, government officials around the world have become far less gung-ho on EV adoption than just a few years ago.

• Canadian PM Mark Carney last month delayed an EV sales mandate that was set to take effect next year.
• UK PM Keir Starmer temporarily relaxed his country’s EV targets due to recent US tariffs, and is considering whether to rethink the UK’s ban on the sale of new gas-powered vehicles by 2030.
• The EU last month agreed to reconsider its 2035 target for eliminating CO2 emissions from cars, following pressure from automakers who say consumers aren’t ready for such a move.

Even China is showing signs of distress. The world’s most dominant EV market has seen sales continue to grow, but increasingly at the expense of profitability for automakers due to an oversaturated market.

Looking ahead…Of the 129 brands that currently sell EVs and plug-in hybrids in China, just 15 are projected to be financially viable in 2030, according to consulting firm AlixPartners.