At the North American International Auto Show in Detroit, excitement fills the air as attendees experience the thrill of new vehicles navigating indoor tracks. This year marks a notable shift, as tracks once dedicated solely to electric vehicles (EVs) now accommodate hybrids and gas-powered cars. This evolving landscape reflects broader trends in the industry, particularly following changes in the political climate since the return of President Donald Trump, who has reinstated a pro-fossil fuels agenda.
Todd Szott, chairman of the event and an auto dealer, emphasized that the show’s focus mirrors consumer preferences. “Obviously things have changed in the EV landscape,” he noted, hinting at a recalibration within the industry.
This change of direction has raised concerns among industry experts regarding the long-term viability of American automakers. As many countries, especially China, accelerate their transition to electric vehicles, fears about competitiveness on a global scale have surfaced. Michael Robinet, vice president of forecast strategy at S&P Global Mobility, articulated these fears during a panel discussion, suggesting that the U.S. risked falling behind as the global market continues to evolve.
Sales data reveals a stark contrast in EV uptake between the U.S. and other markets. Last year, U.S. sales of electrified vehicles grew by a mere 1%, while China and Europe reported robust increases of 17% and 33%, respectively. As of 2025, the pure EV market share in the U.S. sat at just under 8%, indicating a slight decline from the previous year.
This week, during a tour of the Ford River Rouge Complex, President Trump asserted that his administration’s policies have revitalized U.S. automakers. He expressed his intention to promote a diverse automotive energy landscape, discouraging policies that exclusively favor electric vehicles. Recently, he rescinded a Biden-era goal to make half of all new vehicle sales electric by 2030 and has made moves to reduce federal support for EV infrastructure.
Trump highlighted his administration’s initiatives to roll back tax incentives for EV purchases and weak fuel economy standards, sparking concern about the implications for the automotive sector. Ford Motor Co. reported substantial charges due to its electrification efforts and a halt on the production of the all-electric F-150 Lightning truck. General Motors also revealed losses linked to EV initiatives, indicating a trend of cutbacks across the industry.
Despite the challenges, industry figures, including Ford’s marketing manager Shawn Strain, affirmed a commitment to electric vehicles, stating that they remain a critical component of the company’s future strategy.
As industry leaders shared their perspectives at the Auto Show, the words of Michigan Governor Gretchen Whitmer echoed a growing sentiment: America must respond effectively to the challenge posed by China, which has been aggressively expanding its presence in the automotive market. Whitmer underscored the importance of innovation and competitiveness to safeguard American interests in the global auto industry.
Research lead Will Roberts at Benchmark Minerals indicated that U.S. policy significantly impacts the industry’s trajectory. He encouraged automakers to maintain a strong presence in the EV market even as they navigate the current political landscape. Former Transportation Secretary Pete Buttigieg echoed this sentiment, warning that while electric vehicles will inevitably gain prominence, the U.S. risks losing its leadership position in the sector without proactive measures.
With the industry at a crossroads, the decisions made today could determine the future landscape of American automotive manufacturing as global competition intensifies.
