Are we still convinced that electric vehicles are the best way forward?

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GM backtracking more on EVs and more on gas-engined models

General Motors Co. will continue making gas engined Cadillac's XT5 at its Spring Hill, Tennessee, plant past 2026, the Detroit automaker has confirmed.
"The current-generation Cadillac XT5, an important part of our global portfolio, will remain in production until the end of 2026," spokesperson Kevin Kelly said in a statement. "The XT5 will continue to live-on as a next-generation gas powered vehicle beyond that timeframe."
Commitment to the compact luxury SUV shows continued investment in gas-powered vehicles as electric vehicle adoption lags in the United States.

Executives had sought to electrify the entire Cadillac fleet and phase out production of its gas-powered lineup
. But driver interest in EVs continues to fall behind industry expectations and likely will drop further as $7,500 EV tax credits end in September and the Trump administration seeks to axe emissions regulations.

"As Cadillac evolves, we will continue to make necessary adjustments to our portfolio to meet customer demand," Kelly said.
Cadillac is discontinuing its entry-level, gas-powered XT4 and three-row XT6 SUVs after this model year.
But executives have said the brand will continue to manufacture the gas-powered midsize XT5 and Escalade SUVs.

 

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American gas-powered vehicles, including the country's iconic pickup trucks, will not die away as drivers have turned their backs on EVs.
The surge in gas engines is due to Donald Trump's push to exile EVs, so the nation's auto industry can thrive especially in Detroit, the 'car capital' of the world.

US automakers are going back to their roots after switching their focus to electric vehicles that first became popular in 2010, and gained more notice in recent years.
Although EVs are meant to be better for the planet, car manufacturers have had to use more resources to keep up with the fuel-efficient standards.

Ford, a top US car brand based out of Detroit, is already gearing up for the shift and changing its lineup by adding more commercial vehicles and large SUVs and taking out some EVs.
'This is a multibillion-dollar opportunity over the next couple of years,' Jim Farley, the Chief Executive of Ford Motors, said in a call with analysts last week.

Trump's car policy changes came after he announced a 25 percent tariff on imported cars that came into effect in April.
Most electric cars sold in the US are already built domestically, meaning they won’t be affected by the tariff.
Still, there are costs associated with EVs that companies have to front.
Because of the push to move back to gas cars, the auto industry is looking up because the fees that come with EVs will start to lower.

With EVs, the industry has to pay regulatory credits and fuel-economy rule-violation fines.
Ford, GM and Stellantis a Dutch automaker have shelled out about $10 billion on regulatory credits and fuel-economy rule-violation fines since 2022, according to The Wall Street Journal.

Although General Motors has hoped to get rid of internal combustion engines by 2035, the company has since changed its tune and told its investors there are benefits to keeping gas cars in the lineup.

During a recent call, Stellantis, who owns car companies like Jeep and Toyota, highlighted how Trump's Big Beautiful Bill allows them to add more gas-powered vehicles to the mix on dealership lots.
'This will mean to us a lot of additional profit,' Antonio Filosa, the CEO of Stellantis, who started the position in June, said.

In a July 29 memo reviewed by WSJ, Stellantis wrote that they would prefer to satisfy its customers demands over anything.
'In these uncertain times of heavy competition and tariffs, there are auto workers all over the world who would happily trade their uncertainty for our customer demand and company commitment,' the company stated.
In recent months, Stellantis, which also owns Ram, has been dealing with part shortages.

Just last week, the automaker had to add shifts to a factory in Michigan in a bid to speed up production for its famed Ram 1500 trucks.
Although the setback was not specifically related to the regulatory charges, Stellantis will thrive from the surge in gas cars by not having to pay millions for fines and fuel-economy rule violations.

In order to see how the new trend will affect the company, Stellantis plans to keep an eye on the production conflict at the Ram Michigan factory regularly.
Companies aren't the only ones excited about the change, as dealerships are also on board.
'Americans do like buying giant vehicles,' Adam Lee, chairman of Maine-based Lee Auto Malls, told the outlet.
'They’re going to see how many more giant SUVs they can pump out, because they sell a lot of them and make a lot of money on them.'

Despite being excited, Lee said he hopes some EVs will still remain.
'Otherwise, we’re going to find out we’re the only country in the world not embracing fuel-efficient vehicles and EVs,' he said.
With the change, several big brands have back-pedaled with their EV plans as they anticipate the shift.

Mary Barra, the CEO of GM, originally dictated to make the company fully EV in 10 years, but now she is mulling the idea that gas-powered cars could come back into play.
With that, her company continues to roll out EV cars, as she thinks the change will actually give GM a chance to sell more of those vehicles.
'It also gives us the opportunity to sell EV vehicles,' Barra stated while on a recent earnings call.
'Excuse me, ICE vehicles, for longer and appreciate the profitability of those vehicles.'

 

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Vermont Ends Electric Vehicle Mandate, Sparking Debate Over Progressive Policies**
In a surprising turn of events, Vermont's Governor Phil Scott has issued an executive order halting the state's electric vehicle (EV) sales mandate.

This mandate, which sought to require that 35% of all vehicles delivered to Vermont dealerships be zero-emission by the 2026 model year, has been put on pause amid a growing realization that many states are facing challenges aligning with overly ambitious green energy policies.
The recent decision resonates with a significant trend across several states, including Virginia and Maryland, where similar attempts to adopt California-style mandates have been stalled.

Governor Scott highlighted key concerns from auto manufacturers regarding the state's inadequate charging infrastructure and the lack of technological advancements necessary to fulfill such stringent goals.
“It’s clear we don’t have anywhere near enough charging infrastructure and insufficient technological advances in heavy-duty vehicles to meet current goals,” Scott stated, underscoring the practical considerations behind his decision.

Local auto dealers have also welcomed the news, recognizing that the existing demand for EVs in Vermont simply does not match the regulatory expectations set forth by progressive policymakers.
As data shows, only about 14% of new cars registered in the state last year were zero-emission vehicles.

This predicament raises critical questions: if a state like Vermont boasting a favorable EV charging network cannot support such mandates, what does it mean for the rest of the nation, particularly states heavily reliant on fossil fuels?
Moreover, the potential opportunity for neighboring states that have not adopted California's regulations may allow them to capitalize on Vermont's shift, creating a competitive market for traditional gas-powered vehicles.

In light of these developments, the recent House-passed bill aimed at revoking California's waiver to impose strict emissions regulations further amplifies the changing tide in energy policy.
Indeed, with the Trump administration's strong stance in support of maintaining state autonomy in energy matters, it's evident that the narrative surrounding environmental regulations is undergoing a significant transformation.

As states like Vermont reconsider their paths, one wonders if California Governor Gavin Newsom, currently trying to reshape his image, might soon follow suit in delaying or even scrapping his state’s contentious EV mandates, amidst a broader critique of overreaching environmental regulations.
In a political landscape marked by an increasing pushback against overly ambitious green policies, Vermont's decision sheds light on the practical challenges that many states are grappling with, making it clear that the conversation around energy and climate change needs to evolve beyond ideological boundaries.