GM Makes a Power Move, Shifting Focus from EVs Back to Gas Engines

Core Insights - General Motors (GM) has become the second-largest electric vehicle (EV) seller in the U.S. with 62,000 sales through May, surpassing Ford and only trailing Tesla [1] - The expiration of the U.S. electric vehicle tax credit is expected to lead to a decline in sales, impacting GM's previous goal of going all-electric by 2035 [2] - GM's EV sales accounted for 4% of total sales last year and 6% this year, driven by new model rollouts and the now-defunct $7,500 federal tax rebate [3] Sales and Market Position - GM's sales growth in the EV sector was significantly supported by the federal tax rebate, which has now expired, leading to anticipated sales declines [2][3] - The company is pivoting back to combustion engine vehicles, announcing a $4 billion plan to expand production of gas cars and SUVs [3] Lobbying and Regulatory Actions - GM has initiated a lobbying campaign against emissions and fuel standards, with accusations from California's Governor that the company has compromised on tougher state emissions standards [4] - Both GM and Ford have launched programs allowing their financial arms to make down payments on EVs before the tax credit expiration, enabling them to claim the credit [4] International Strategy - GM is revamping its EV strategy in China, launching locally developed models to better compete in the world's largest battery-powered car market [4] - The Buick brand has introduced the Electra LV, its first locally developed EV in China, to leverage upcoming purchase tax exemptions [4]