Federal meddling backfires as Ford and GM bleed cash over unwanted cars.
The push for electric cars has created a fiscal disaster for U.S. automakers, and it was an entirely avoidable disaster created by government policy.
For years, under the administration of former President Joe Biden, the United States government essentially forced manufacturers to build electric cars at the expense of those powered by internal combustion engines. The U.S. was hardly alone in these endeavors, with European countries rushing to push EV’s due to overwrought, inaccurate fears about “climate change.”
And when gas prices exploded due to runaway inflation, in part because of Biden’s laughable “Inflation Reduction Act,” it seemed like increased demand for electric cars would stick.
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Almost immediately, though, manufacturers learned otherwise. Despite massive investment in new production, the launch of several all-electric car companies, and the development of new models from established car builders, interest in electric cars has fallen off a cliff. And it’s now cost legacy Detroit automakers like Ford and General Motors tens of billions of dollars. Particularly Ford, whose F-150 Lightning truck required a massive investment, with little in sales to show for it. Those investments created losses for once-profitable companies thanks to absurd policy decisions.
A 2025 Ford F-150 Lightning XLT truck sits while being charged at Village Ford dealership in Dearborn on Wednesday, January 7, 2026. (© Ryan Garza / USA TODAY NETWORK via Imagn Images)
Ford Admits Nobody Wants EV’s, GM Loses Billions
For several years, EV sales were propped up by a $7,500 federal tax credit that served as a massive subsidy for EV car buyers. Sure enough, the Biden administration continued it in their “Inflation Reduction Act,” and expanded it by allocating $7.5 billion in car charging infrastructure across the country.
Massive subsidies were added to incentivize building EVs in the US, including battery manufacturing. Then Biden’s administration tightened up EPA standards and NHTSA “CAFE” rules with stiffer emissions targets, making gas cars even more difficult to build. None of it worked.
When the $7,500 credit expired, demand immediately cratered. EV sales in the United States are now down nearly 40% year over year, according to the Wall Street Journal. And as a result, Ford, GM, and Stellantis reported nearly $50 billion in combined losses, primarily due to the expense of building EVs.
Ford CEO Jim Farley said they’re essentially ending the majority of their investments in EV production, because nobody wants them. “Instead of plowing billions into the future knowing these large EVs will never make money, we are pivoting,” Farley said recently.
Stellantis admitted that EV production has “distanced us from many car buyers’ real-world needs, means and desires.”
This is what happens when governments attempt to control the free market. If consumers wanted electric cars, they’d buy them. Instead, policymakers try to force people to buy things they don’t want. And it cost private companies tens of billions of dollars. Arguably some of the most costly mistakes in the history of the automotive industry.
