There have been some intriguing signs that American automakers are reembracing internal combustion engine (ICE) vehicles.
To begin with, General Motors (GM) recently announced a major initiative to expand production of its ICE vehicles, including SUVs and pickup trucks, in Michigan.
The Detroit giant and many of its U.S. competitors have pulled back on some goals around production of electric vehicles as demand has been weaker than expected. GM’s continued investment in vehicles like the Sierra and Escalade calls into question its plan to end the production of gas-powered cars and trucks by 2035.The Escalade is currently produced in Arlington, Texas, alongside other large SUVs such as the GMC Yukon, Chevrolet Suburban and Chevy Tahoe. Production at Arlington is expected to remain consistent after the Escalade moves to Michigan, a GM spokesperson said.The automaker will be adding production of the Silverado and Sierra trucks at its Orion Township, Michigan factory, in addition to existing production in Fort Wayne, Indiana. The gasoline-powered trucks and SUVs are among GM’s biggest money makers.GM told Reuters the moves would “help meet continued strong customer demand.”
The plant in Orion, Michigan, was slated to be the home of an EV-exclusive production facility.
The move builds on GM’s plans to invest $4 billion in U.S. facilities, which the automaker announced in June. That announcement came after President Donald Trump earlier this year implemented 25% tariffs on imported vehicles and 25% duties on many auto parts imported into the U.S.It also builds on the automaker’s gas-powered vehicle production.The Orion Assembly plant in suburban Detroit, which is being retooled for gas products, was expected to be its second electric vehicle-exclusive plant in the U.S.
Earlier this year, Stellantis announced that it’s bringing back internal combustion engines for the Dodge Charger and potentially other models. Apparently, EV’s did not provide the same turbo-charged thrill as the ICE versions.
The return of ICE means that upcoming versions of the Dodge Charger and Challenger will once again pack serious heat under the hood. Expect to see the return of powerful HEMI V8s and perhaps some modernized inline-six turbo options. While Dodge had teased electric versions of these iconic nameplates, the latest reports suggest that internal combustion will remain an option for those who crave the growl and performance that made the Challenger and Charger household names.On the design front, Dodge is rumored to blend classic muscle car styling with modern performance tech, ensuring that these models not only perform but also look the part. Whether it’s aggressive widebody kits, functional hood scoops, or retro-inspired interiors, the upcoming models promise to be a hit with both old-school gearheads and new-generation muscle car fans.
These moves align with a global trend of automobile makers rethinking their EV production objectives given the loss of tax incentives and continuing weakness in consumer demand that was evident late last year.
…General Motors cut its EV production forecast, and shortly thereafter, rival Ford scrapped its plans for a large three-row all-electric SUV and postponed the launch of its next electric pickup truck. German luxury carmaker Porsche also scaled back its target of selling 80% full/battery powered EVs this summer.Meanwhile Toyota, the world’s leading automaker by units produced in a year, has adopted a stance of strategic ambiguity by placing faith in the future of EVs but not losing sight of interim production of conventional petrol cars as well as plug-in hybrids, hybrids and fuel cell electric vehicles.The downgrading of EV targets by Volvo and its automaking rivals bottles down to changing market conditions and a likely misplaced optimism on consumer demand for EVs.
It will be interesting to see exactly how strong the EV market remains, especially as President Donald Trump and his team continue to gut the “Green New Deal” imposed during the Biden eara.
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