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Does a Gas-Guzzler Revival Risk Dead-End Futures for US Automakers? (thedailynewsonline.com) 384

If U.S. automakers turn their backs on electric vehicles, "their sales outside the U.S. will shrivel," warns Bloomberg. [Alternate URL.] They're already falling behind on the technology, relying on a 100% U.S. tariff on Chinese EVs to keep surging rivals like BYD Co. at bay.... While the American automakers "mostly understand the challenge in front of them, they don't have full plans" to confront it [said Mark Wakefield, head of the global automotive practice at consultant AlixPartners]...

"Now is a great time for the V-8 engine," said Ryan Shaughnessy, the Mustang's brand manager. "We've done extensive customer research in multiple cities, looking at a variety of powertrains, and the V-8 is always the number-one choice." It isn't just customers. U.S. automakers have long been run by "car guys:" enthusiasts who live for the bone-shaking rumble of a big engine. For them, quiet and smooth EVs — even the absurdly fast ones — can't satisfy that craving. They're convinced many American car buyers share the same enthusiasm for what Shaughnessy described as "the sound and roar of the V-8."

Wall Street couldn't be happier with the new direction... Ford's fortunes are also on the rise, as it's predicting operating profits could grow by as much as 47% this year to $10 billion. Ford's stock has risen nearly 50% over the last 12 months. Under the previous environmental rules, automakers effectively had to sell zero-emission vehicles in growing numbers to offset their gas-guzzlers. When they fell short, they had to buy regulatory credits from EV companies such as Tesla Inc. or face penalties. GM spent $3.5 billion on credits from 2022 to the middle of 2025. Now, according to JPMorgan Chase & Co. analyst Ryan Brinkman, GM and Ford each have "billion dollar tailwinds"...

[T]he hangover from all that new horsepower could leave US automakers lagging their Chinese rivals who already build the world's most advanced — and lowest priced — electric cars. Indeed, there is much talk in Detroit about the competitive tsunami that will be unleashed on American automakers once Chinese car companies find a way to break through trade barriers now protecting the US market. [Ford Chief Executive Officer Jim] Farley even calls it an "existential threat"... "They're going to build as many V-8 engines and big trucks as they can get out the factory doors," said Sam Fiorani, vice president of vehicle forecasting for consultant Auto Forecast Solutions. "And as the rest of the world develops modern drivetrains, newer batteries and better electric vehicles, GM and Ford in particular are going to find themselves falling even further behind."

The article notes GM "continues to develop battery-powered vehicles, and CEO Mary Barra said the automaker would begin offering a 'handful' of hybrids soon," while Ford and Stellantis "have plans to launch extended-range electric vehicles, or EREVs, a new kind of plug-in hybrid with an internal combustion engine that recharges the battery as the vehicle drives down the road." But while automakers may be investing in future EV vehicles, they're also "leaning into the lucre that comes from selling millions of fossil-fuel vehicles in a rare moment of loosened regulation."
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Does a Gas-Guzzler Revival Risk Dead-End Futures for US Automakers?

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  • by rossdee ( 243626 ) on Sunday March 01, 2026 @10:48PM (#66017532)

    With a long term conflict in the Persian Gulf just started.'

    • by caseih ( 160668 ) on Sunday March 01, 2026 @11:11PM (#66017556)

      Nah the US has plenty of oil and gas to keep the coal rolling. And the conflict in the gulf just raises prices making everyone richer, right?. What's not to like. More money for the 1%. Keep those subsidies flowing to the oil companies.

      That said, I've always been uncomfortable with the various government schemes to promote/force EVs. I think I'm much more in favor of removing oil subsidies (in whatever form they actually are), and let the market move on its own. However I recognize that the "free" market hasn't really existed for some years, so maybe that's a silly thought.

      • by higuita ( 129722 ) on Sunday March 01, 2026 @11:59PM (#66017616) Homepage

        the guys that get richer are in the top, everyone below will be poorer!
        they are the ones that get better margins and increase their profits, for everyone else, it is just more expense in everything and causing a chain of price increases in everything that used oil...

        the other guys getting richer are the EV car manufactures, that while more expensive, can get much cheaper per mile than oil cars, paying themselfs quickly

      • by dfghjk ( 711126 ) on Monday March 02, 2026 @08:25AM (#66018064)

        "...and let the market move on its own."
        Government subsidies exist for when this doesn't happen, at least not fast enough. You have subsidies to promote new markets in the interests of the people, BEVs are a perfect example.

        "However I recognize that the "free" market hasn't really existed for some years, so maybe that's a silly thought."
        It's a silly thought that this is a free market issue. The interests of society are not always satisfied by free markets, not that we have them.

        It is cheaper to buy the government, make the rules and steal the wealth than it is to compete for it with merit. That's where we are now, this isn't a BEV issue but a MAGA identify politics issue. No one wants V8's, they just want a car they can afford to buy and operate, hopefully that doesn't destroy the planet in the process. The V8 is just a BS narrative to justify terrible politics, it will disappear as rapidly as it was resurrected. The people can no longer afford to buy homes and new cars, so who is it demanding V8s?

      • by toutankh ( 1544253 ) on Monday March 02, 2026 @08:41AM (#66018088)

        Another option would be to tax emissions, given what they cost in mitigation. All that research on how to reduce global warming needs financing, and it only exists because we've manufactured the problem with all these emissions.

      • by skam240 ( 789197 ) on Monday March 02, 2026 @12:34PM (#66018502)

        The problem isn't that we'll run out of oil or gas in this country. The problem is that both are internationally traded commodities and this war is looking like it is having a dramatic effect on prices which will effect Americans at the pump.

        I do wonder if this will make a meaningful dent in gas guzzler ownership like last time this happened (although unfortunately last time those change in ownership patterns didn't stick)

    • EVs imported get a 100% tariff. Two uncompleted parts of a car (two parts that are officially "not a car"), that require an American to screw them together, can easily be imported without the 100% tariff nonsense.

    • by niftydude ( 1745144 ) on Monday March 02, 2026 @02:25AM (#66017766)
      Putting two and two together:

      We've done extensive customer research in multiple cities, looking at a variety of powertrains, and the V-8 is always the number-one choice."

      plus

      Wall Street couldn't be happier with the new direction... Ford's fortunes are also on the rise, as it's predicting operating profits could grow by as much as 47% this year to $10 billion.

      What Detroit seems to be saying is that their market research shows that people who are dumb enough to be climate change deniers are the same people who are dumb enough to prefer driving ICE over EV, and are the same people who are dumb enough to happy when they are ripped off for massive profit margins when they buy a car.

      And so there seems to be a short term business opportunity there.

      I'm never going back to ICE from EV, but I guess I'm old enough and grumpy enough to enjoy watching fossil fools get ripped off.

      It's a pity the current govt is killing so many foreign civilians in forever wars to try and keep gas prices down though.

  • EREVs are not new (Score:4, Interesting)

    by madbrain ( 11432 ) on Sunday March 01, 2026 @10:51PM (#66017540) Homepage Journal

    The BMW i3 was released in 2014.

    EREVs are only new to GM.

    I had a GM Volt PHEV for 10 years. It was great. But this timeline belongs to EVs.

    Gas engines are unnecessary compromises nowadays for passenger cars.

    • Says the guy living in detached single family housing, presumably. For those of us trying to live into more land efficient development, there ainâ(TM)t the charging infrastructure for us. Which would be fine, if there was decent public transit.

      • You got me. But i see plenty of largely unused DC fast chargers in many parking lots. These are totally adequate to charge once a week if you drive an average number of miles, such as for commutting or normal errands. Issues may only arise on long road trips on the busiest days of the year. You won't catch me doing that the day before Thanksgiving in any car again, ICE or EV. Actually I find flights to Asia rather cheap and empty during that time of the year, so that's where i usually end up.

        I would love to

        • by Viol8 ( 599362 )

          "Actually I find flights to Asia rather cheap and empty during that time of the year, so that's where i usually end up."

          So clearly your conversion to EVs isn't for enviromental reasons then. Any flight is equivalent to each passenger driving a small car the same distance in CO2 output.

      • by SirSlud ( 67381 )

        That's a chicken and egg problem, and you know it. There was a time when you were the guy with the horse, and he was the guy who lived near a place that sold gasoline.

      • Says the guy living in detached single family housing, presumably.

        Half of the anti-EV Americans claim America isn't dense enough and the other half claim it's too dense for EVs. It can't be both.

        Which would be fine, if there was decent public transit.

        That's a different but also big problem.

  • by dskoll ( 99328 ) on Sunday March 01, 2026 @11:01PM (#66017548) Homepage

    If American car makers won't make cheap, small, fuel-efficient cars, then I'm not interested. I'll happily buy Japanese or Korean instead.

    Currently drive a great tiny little Honda Fit stick-shift and I love it... but it's a 2015 model and it won't last forever.

    • Re: (Score:2, Informative)

      by Anonymous Coward

      BYD is going to mop the floor with these chuckleheads in Detroit.

    • Japanese and Korean could be next on the ban list, after Chinese.

      Heavily contingent on which auto companies manage to outbid the others for a regulatory favor.

      • by dskoll ( 99328 )

        I don't live in the USA, so I think I'll still be able to source Japanese or Korean cars.

        • I feel like a lot of people commenting on this story have missed that a significant part of it is about American exports.

    • They're not interested in you as a customer either.

      The profits from a single overpriced SUV that's really just a pickup truck with seats in the back is several times more than the little Honda fit you drive. Never mind the fact that you haven't bought a car in 11 years...
  • The number of American men with small penises who will buy these gas guzzlers isn't enough to support the automobile industry.

    • Re: (Score:3, Insightful)

      by higuita ( 129722 )

      no, i think it is really huge market, seeing how most act and think, following a orange president with small ... hands... sure they want to compensate for something

    • by caseih ( 160668 )

      Well it's worked out pretty well up until now if we're honest. The "big three" US automakers pretty much abandoned the affordable car market a decade ago and focus exclusively on luxury vehicles for the upper middle class. And that's served them quite well, making money hand over fist. The government EV mandate forced them to spend money on essentially affordable cars (and EVs) which has really hurt them because they can't and don't want to compete for that market in the first place.

  • by presidenteloco ( 659168 ) on Sunday March 01, 2026 @11:39PM (#66017582)
    as far as any international sales going forward.

    BYD and a few similar Chinese companies are going to eat them for lunch, or force them to just relabel Chinese cars as theirs, as Volkswagen, Volvo, Nissan, Honda, Toyota, and Mazda are doing.

    Picked the wrong time to stop rapidly innovating their EV technology. Oops.
  • V-8? Really? (Score:4, Insightful)

    by Cyberax ( 705495 ) on Sunday March 01, 2026 @11:39PM (#66017586)

    Now is a great time for the V-8 engine

    This is like watching that section of airplane disaster re-enactment videos where the pilots are confidently flying straight into a mountain. The next section is the sound of GPWS desperately screaming "Pull-Up! Pull-Up!" just before the crash.

    The rest of the world is rapidly shifting to EVs, and the US automakers are building a bigger Canyonero. Now with more dead dinosaur exhaust! And we're supposed to be calmed down by the fact that they're bringing an overpriced shitty EV pickup truck in 2 years?

    In 20 years, the second Trump's presidency will be seen as the final straw that killed the US economy. Just an example, a company that was trying to make sodium-ion batteries in the US went bankrupt this summer. They had product sitting in their warehouses but were unable to ship it to customers before getting a UL certification. And they couldn't get a bridge loan from the government or investors. The end result: a company destroyed. I'm pretty sure we'll find competing interests in play there.

    • by Viol8 ( 599362 )

      "The rest of the world is rapidly shifting to EVs"

      Actually its not. The push to EVs is being pushed back against in europe and it looks like the EV only mandated year will be changed. Only Norway has gone full EV so far. As for south american, africa, most of asia except china and australia - forget it, they're happy with ICEs for the forseable.

  • Building planes and ships and fast cars always seems sexy but how many car companies are profitable for decades without subsidies, government bailouts, tariffs, special tax breaks and the ability to externalize costs like pollution? If we look at the path to becoming a high income country, heavy industry is not the path. Services, software, toys, appliances, luxury items, computers, are the path. The old communist countries were making almost as much steel, ships and planes as the west and their incomes
  • by bloodhawk ( 813939 ) on Sunday March 01, 2026 @11:51PM (#66017604)
    Given the war in the middle east now, I think a lot of V8 drivers are going to be having a lot of regret shortly
    • Given the war in the middle east now, I think a lot of V8 drivers are going to be having a lot of regret shortly

      Could be good for domestic producers but I don't think it will last long.

      • depends how many ships and oil wells are destroyed in the current conflict. if it is good for domestic producers it will be a nightmare for consumers.
    • We have oil from south america now, we'll be alright. But just as a precaution, I'm buying a 250 gallon tank tomorrow which I'm filling up.

  • by Todd Knarr ( 15451 ) on Monday March 02, 2026 @12:45AM (#66017678) Homepage

    A V8 in a city is strictly for racing. It's got too much power for most purposes. The one place it does have a use, trucks or vans for carrying heavy commercial/industrial loads, isn't a huge market compared to personal use. Big pickup trucks look and sound impressive, until you need to find a parking spot for them. Or deal with rough streets. Or tight residential streets. Or stop-and-go traffic. Then practicality wins out.

    I look at the US auto industry today and see it repeating the strategy of the early 70s. We know how that ended. The same motivations are at work now. Their focus groups may say "big and powerful", but consumer wallets say "small and economical".

    • I drive a V8 in the city all the time, I don't understand what you're going on about. I have adaptive cruise control and stop n go traffic doesn't bother me one bit. Parking is annoying in the city with any vehicle, that's why there are private parking garages.

  • by jythie ( 914043 ) on Monday March 02, 2026 @01:02AM (#66017682)
    Didn't we go through this just a couple of decades ago? Protectionist policies insulated the american market from competition, US manufacturers fell more and more behind their international rivals who had to actually compete with each other, which killed US export markets and really set the US auto industry back.
  • by shilly ( 142940 ) on Monday March 02, 2026 @03:05AM (#66017788)

    It's not just that they will find it impossible to compete internationally, where Chinese, Korean, European and to some extent Japanese OEMs have all shifted towards EVs (despite the noise about various OEMs pulling back from EV-only strategies, it's clear that EVs are an increasingly large share of the new model mix across the board).

    It's also that they are cutting themselves off from economies of scale from global supply chains. This is both due to the tariffs, and also the fact that they are going to be reliant on parts that are being made in ever-shrinking volumes in the future, and at some point that will lead to supplier exists and "last man standing" pricing, driven in part by fixed costs per unit rising as tooling, casting etc gets spread over a smaller volume base, and in part by a shift in pricing power from OEMs to those last few suppliers. Camshafts, crankshafts, timing chains, fuel injectors, mass airflow sensors, catalytic converters, etc, will all become markedly more expensive. That is going to squeeze profitability even with protectionist barriers in place.

    I've said it before: the US is on track to be this place where people drive outdated overpriced cars that feels like stepping back in time when the rest of us see videoclips (because really, who's visiting now? I just made excuses for a work trip, and I'm not the only one). A bit like Cuba, except the cars being kept on the road in the US will be giant ugly SUVs and pickup trucks, not nice looking relics from the 1950s. Maybe the true comparator is Russia, where the average non-rich person with a car drives a horrible old shitmobile that no-one in the developed world would ever willingly buy.

    It is astonishing and depressing to see the US so comprehensively fuck itself over the past decade, and give up its place as *the* source of technological innovation on the planet.

  • ”Now is a great time for the V-8 engine,"

    This note is to Ford Ignorance who can’t man a maintenance bay with a mechanic. The ONLY reason the V-8 is “great” again, is because of all the overly complex and utterly unreliable bullshit you offer as alternatives under the hood. People want the simplicity of the V-8 because the actual engine is what is naturally creating the solution instead of some twin turbo supercharged hybrid dogshit version of a power plant that practically takes a psychiatrist to understand how and why engines

    • Most (not all) "petrol-heads" today are really trainspotters in a different jacket - they know the stats about the cars but wouldn't know one end of spanner from the other to maintain it.
  • V8 Engines (Score:5, Interesting)

    by Dan East ( 318230 ) on Monday March 02, 2026 @08:11AM (#66018052) Journal

    Ryan Shaughnessy, the Mustang's brand manager

    This guy is LITERALLY the cheerleader and promotor of the Mustang, which is tied very specifically to the V8 engine. So this statement really means absolutely nothing in the scheme of things, even within Ford.

    I have an F-150 for towing our camper. It has the most powerful engine available for the truck, giving me the highest tow capacity. It is NOT the V8 engine! But the V6 twin-turbo engine. Amazing engine, gives me 20 mpg with just the truck (which is impressive being a full-size bed and super-crew cab), and with twin turbo it accelerates extremely fast as well.

    Point is, even those wanting maximum power aren't going with Ford's V8. Even the Ford Raptor trucks, which are all about speed and power, use the V6.

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