Carmakers' answer to US EV lull: hybrids, cheaper models

Core Insights - Automakers are adjusting their product strategies in response to the recent removal of a $7,500 federal tax credit for electric vehicles (EVs) and plug-in hybrids, focusing on more affordable models to attract buyers [1][5] Group 1: Automaker Strategies - Volkswagen is shifting its focus to hybrid vehicles, particularly full hybrids, due to lower costs and higher consumer demand, moving away from its previous strategy of prioritizing electric vehicles [2][3] - Lucid Group plans to introduce a more affordable electric model by the end of next year, having absorbed half the cost of the lost tax credit for its Air sedan [4] - Rivian is offering deals for its leased vehicles and is concentrating on launching the R2 SUV at a price around $45,000 in the first half of next year [6] Group 2: Market Trends - U.S. EV sales have not met earlier forecasts, with consumer hesitance regarding charging infrastructure and high prices contributing to this trend [5] - Traditional automakers, including General Motors, Ford, and Stellantis, are scaling back their EV plans in light of the changing regulatory environment and the loss of federal subsidies [7]