Bank of America's recent analysis highlights various challenges facing U.S. automakers, particularly concerning the future of electric vehicles (EVs). The report suggests a potential decline in EV model launches due to a drop in consumer demand, ongoing tariff issues, and the likelihood of reduced federal incentives. Analysts propose that automakers should pivot away from EVs and focus more on internal combustion engine (ICE) vehicles to secure capital and navigate an unpredictable market over the next few years. This shift reflects a significant change in strategy amid uncertainty for product lineups.
The unprecedented EV head-fake has wreaked havoc on product plans. This has driven a pothole in product launches in Model Years 2026 and 2027.
To deal with those uncertainties, Bank of America analysts recommend that automakers back away from EV models and lean heavily into their core ICE product portfolios.
The next four-plus years will be the most uncertain and volatile time in product strategy ever for U.S. automakers.
Slowing EV sales are illustrating a challenge for carmakers: All the early adopters have bought EVs, making it difficult to attract mainstream buyers.
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