Reasons For The Legacy EV Retreat - CleanTechnica

The article "Reasons For The Legacy EV Retreat" from CleanTechnica analyzes why traditional Detroit automakers have retreated from electric vehicle (EV) leadership despite substantial subsidies and political support. Historically, these legacy manufacturers consistently sold EVs below their cost of production, resulting in losses exacerbated by cutting corners and costly recalls. They benefited from massive government subsidies intended for EV manufacturing, including tax breaks and facility upgrades, but often repurposed these subsidized assets to produce internal combustion engine (ICE) vehicles instead. This practice highlights a systemic abuse of subsidy programs, facilitated by political narratives framing these incentives as tax breaks rather than direct government support. Furthermore, the article argues that the U.S. market's protectionist policies have blocked competition from more efficient and profitable EV manufacturers, particularly from China, where automakers have successfully produced affordable, profitable EVs that outpace legacy automakers’ offerings. Detroit’s automakers prioritized regulatory compliance over innovation and cost-effective EV design, moving too slowly to compete globally.