The U.S. administration is continuing its efforts to slow down vehicle electrification. It is taking aim at nearly $12 billion USD in promised federal subsidies intended for the transition to electric.
If those subsidies disappear, that could mean the cancellation of $500 million for the conversion of General Motors' Lansing Grand River plant. Ford, Stellantis, Harley-Davidson, Hyundai Mobis and several young startups in the sector could also be affected, affecting the transformation of the North American automotive landscape.
GM, Ford, and Stellantis affected
General Motors would be particularly affected by the removal of the subsidies. The company was set to use the funds to invest in the conversion of its Michigan plant to produce electric and hybrid vehicles.
Ford, for its part, could lose numerous grants intended for electric models and its new hybrid platforms.
At Stellantis, the Belvidere, Illinois plant project and the conversion of the Indiana Transmission plant are at risk of being frozen, as is the production of electric and hybrid components.
The rollback of regulations adopted by President Trump's predecessors benefits internal combustion and hybrid vehicles. It allows automakers to save billions in compliance costs and emissions credits, while slowing the pace of investment in electrification.
In recent months, GM has publicly announced the scaling back of two of its sites dedicated to EVs and the reconversion of a plant to manufacture gasoline-powered trucks. Ford has redirected funds from a canceled electric SUV towards the development of gasoline models, and Stellantis has brought the Hemi V8 engine back into the spotlight.
Harley-Davidson sees its expansion project for manufacturing electric motorcycles in Pennsylvania threatened. Meanwhile, Hyundai Mobis could lose a strategic subsidy for an electric components plant in Ohio.
Domino effect in Canada
Canada, which is directly dependent on American plants for its supply of EVs, will suffer the knock-on effects of this reorientation. Local subsidiaries anticipate a scarcity of new electrified models and increased import delays.
The White House's latest steps follows ones it has taken to abandon investments in the development of the charging station network, as well as the end of the $7,500 federal tax credit for electric cars, effective since September 30, 2025.
The energy transition slowed
The risk now is an overall slowdown in the conversion of the vehicle fleet. Electric models could become rarer and more expensive in Canada, while manufacturers rebalance their offerings towards gasoline and hybrid.
As a reminder, Ford long ago abandoned its electric SUV project at its Oakville, Ontario plant, opting instead to assemble Ford Super Duty trucks there starting in 2027.