Ford was the only one among Detroit’s Big Three to avoid the 2009 government bailout, managing to emerge from the crisis on its own. Today, however, the context looks very different, and the American automotive industry, along with much of the global sector, faces a complex phase marked by a more difficult than expected electric transition and strategic choices that have not always delivered the desired results.
Ford, GM and Stellantis rethink strategy as electric transition slows
Ford, like General Motors and Stellantis, invested massive sums in electrification without achieving the expected returns. Since 2021, the Blue Oval has revised more than $22 billion tied to electric programs, slowing what was initially a very aggressive strategy. The issue has not been purely technological but also related to positioning. American manufacturers focused mainly on expensive electric SUVs and pickups, assuming the market would accept higher prices to move to electric, while many customers continued to prefer more affordable or traditional models.
The Mustang Mach-E marked the first step of this strategy, an electric reinterpretation of an icon produced in Mexico. Ford then introduced the F-150 Lightning, the battery-powered version of the best-selling pickup in the United States for decades. Despite a strong start, it never truly replaced combustion variants. The lineup later expanded with the e-Transit for the commercial sector. However, inflation, rising raw material costs and high final prices slowed demand. The entire electric pickup segment proved overestimated, and even Tesla, with the Cybertruck, recorded numbers below early expectations.
General Motors followed a similar path, investing heavily in the Ultium platform and building a range that spans from the Equinox EV to the luxury Celestiq, as well as the Silverado EV, Sierra EV and the massive electric Hummer. Industrial ambition has been enormous, yet no model has dominated sales charts, and in China, crucial for electric vehicles, local competition has reduced the group’s presence. The Bolt EV, one of the few truly affordable models, was discontinued and later relaunched in a new generation. Despite everything, GM remains the second-largest EV seller in the United States after Tesla, showing that potential still exists.
Stellantis North America has taken a more cautious approach. The new electric Dodge Charger struggles to gain traction, some Ram projects have been delayed or revised with the introduction of hybrid range-extender systems, and the return of the V8 HEMI in certain models signals a partial shift in direction. In Europe, Stellantis offers a broader electric lineup, but many models do not suit the North American market, and in several cases combustion engines have been reintroduced on platforms initially designed only for electric power.
Another key factor behind these difficulties lies in an increasingly indebted market, with more than $1.6 trillion in auto loans and customers more sensitive to final prices. Electric technology itself is not the real issue, as Tesla and fast-growing Chinese manufacturers demonstrate. The real challenge has been overestimating the market’s ability to absorb expensive vehicles in an uncertain economic environment. The Big Three must now find the right balance to prevent current difficulties from turning into a long-term structural problem.
