American automakers are shifting their strategy, moving away from electric vehicles as a top priority. Following declining sales and the expiration of tax incentives in 2025, Ford, GM, and Stellantis are increasing their focus on internal combustion engines, energy systems, and even military contracts.

One key reason was the elimination of EV purchase subsidies in September 2025, which immediately impacted demand that was already lagging behind Europe and China. Against this backdrop, traditional carmakers have returned to more profitable gasoline models. Electric vehicle production remains unprofitable, while internal combustion engines benefit from established supply chains and stable margins.

Ford CEO Jim Farley has warned about the risks, stating that Chinese electric vehicles could be devastating for the country.

Ford has changed course twice in six months, revising plans for a new electric pickup platform and losing key executives, including former Tesla executive Doug Field. GM and Stellantis are also slowing their electrification efforts, despite earlier ambitions. Some projects are being delayed or scaled back, with a shift in focus toward more traditional segments.

Tanks
Russian Defense Ministry website / mil.ru

At the same time, companies are exploring new revenue streams, including using factories for battery energy storage systems. One emerging direction is the battery energy storage system (BESS) market, where automakers aim to leverage existing battery production facilities.

Discussions are also underway regarding contracts with the defense sector. According to sources, GM and Ford are in talks about potentially repurposing plants for military production. This echoes past periods when the U.S. auto industry pivoted to government orders, including during World War II and the pandemic.