Car dealerships lack new models amid EV pullback
Image: Getty
The auto industry has spent decades convincing Americans they need the latest model in the driveway. But that process is now getting a bit harder, with the “newest model” looking suspiciously like the last one.
Car dealerships across the US are facing an unusual drought of new and redesigned vehicles in the coming years, with significantly fewer models set to make their debut compared to historical averages.
By the numbers: Automakers are expected to redesign just 9% of their vehicle lineups on average across the 2026-2028 model years, well below the industry’s 20-year average of 14%, according to auto analyst John Murphy.
- Data shows the current new-model drought ranks as more severe than the ones following the pandemic and the 2007-09 major recession.
- The timing is especially rough for dealers; US auto sales are already down ~2% this year, and now fewer new models will be available to help reverse the slide.
Where did all the new cars go?
Much of the drought stems from the industry’s massive EV push earlier this decade—more specifically, the subsequent scramble to change course away from EVs, as demand fell short of expectations and federal tax credits for EV buyers expired.
- Automakers devoted billions of dollars and years of development work to electric models, then began canceling or delaying many of those plans as the market shifted, contributing to a combined $70+ billion in charges and impairments.
- Overall, US EV registrations fell 31% year over year in July, marking their 10th straight monthly decline.
Swapping those canceled EV models for more in-demand vehicles can take years, since automakers have to develop new models, retool factories, and reorganize supply chains before anything reaches a dealership.
The slow turnaround is giving rival automakers an opening:
- Toyota, Honda, and Hyundai have gained US market share this year with lineups featuring more hybrids—an increasingly important part of companies’ EV replacement strategy—and other lower-cost options.
- Meanwhile, GM and Ford have lost market share recently as they work to reshape their offerings.
Looking ahead…Companies across the US auto industry are fast-tracking new hybrids, pickups, sedans, and SUVs to refill their lineups following an EV pullback, though many of those new vehicles won’t reach dealerships until 2028 or later.
đź“Š Flash poll: In hindsight, do you think federal EV incentives accomplished enough to justify their cost?
See a 360° view of what pundits are saying →
Sprinkles from the Left
- Some commentators argue that the recent drop in EV sales shows the market still needs government support after the end of federal incentives made EVs less affordable for many buyers. They argue that California should introduce its own incentives to stabilize demand, protect EV-related jobs, and prevent the US from falling further behind China in the transition to electric vehicles.
- Others contend that the Iran war could force automakers to reconsider their recent pullback from EVs, as disruptions to global oil supplies drive up gasoline prices and make EVs more attractive to consumers. They argue that automakers need to be prepared to adjust their plans if higher fuel costs revive EV demand just as the industry is scaling back its investments.
- “Can California keep leading the electric vehicle transition?” –Mike Murphey, The Sacramento Bee
- “Global auto industry may end up a casualty of prolonged Iran war” –Atomotive News Editorial Board
- “EV adoption is stagnating among racial minorities in California. That’s a red flag on multiple fronts” –Jerel Ezell, San Francisco Chronicle
Sprinkles from the Right
- Some commentators argue that Ford’s retreat from EVs shows the industry expanded production beyond what consumers actually wanted, relying on government subsidies and regulations to prop up demand. They argue that with those policies being rolled back, automakers can stop pouring money into unprofitable EVs and focus more on gas-powered and hybrid vehicles that consumers are willing to buy.
- Others contend that automakers’ retreat from EVs shows the danger of the government trying to steer an industry toward products consumers aren’t yet ready to embrace. They argue that federal mandates pushed carmakers into costly EV investments that the market couldn’t support, and that removing those requirements allows consumer demand to determine which vehicles companies produce.
- “Ford Learns a Brutal EV Lesson” –WSJ Editorial Board
- “Ford shows why government shouldn’t steer the economy” –Las Vegas Review-Journal Editorial Board
- “US automakers have to build more affordable cars” –Chicago Tribune Editorial Board
Share this!
Recent Discussion stories
Discussion
  | September 28, 2026America turns up the economic pressure on Iran
President Trump on Saturday publicly rejected Iran’s latest proposal for a seven-day ceasefire, as the two sides continue negotiating a potential end to the war.
Discussion
  | September 25, 2026Breaking down America’s Greenland deal with Denmark
President Trump signed an agreement Tuesday with the prime ministers of Denmark and Greenland that will expand America’s military presence in Greenland, while also recognizing Danish sovereignty over the island and residents’ right to self-determination.
Discussion
  | September 23, 2026Xi Jinping visits Washington for key US-China talks
Chinese President Xi Jinping arrives in Washington, D.C., today for his first US state visit in over a decade, with Xi’s three-day agenda including official meetings with President Trump at the White House tomorrow.
You've made it this far...
Let's make our relationship official, no 💍 or elaborate proposal required. Learn and stay entertained, for free.👇
All of our news is 100% free and you can unsubscribe anytime; the quiz takes ~10 seconds to complete