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U.S. President Donald Trump and CEO of Ford Jim Farley clap, as President Trump visits a Ford production center, in Dearborn, Michigan, U.S.,January 13,2026.
Evelyn Hockstein | Reuters
DETROIT – The only consistency has been inconsistency for the U.S. automotive industry during the first half of this decade – a trend that’s expected to continue amid challenging market conditions in 2026.
The U.S. auto sector - a crucial driver of the economy estimated around 4.8% of America’s gross domestic product – has endured rolling crises as the Covid-19 pandemic shuttered U.S. assembly plants in early 2020. the global health crisis was followed by yearslong supply chain issues, semiconductor chip shortages, political whipsawing, tariffs and other challenges for all-electric and autonomous vehicles.
Automakers have been surprisingly resilient during the challenges, but those issues are now combining with more traditional industry problems of affordability and slowing consumer demand. That’s all creating a more challenging environment for automakers in 2026.
“we’ve got to plan for the worst and hope for the best,” Hyundai North America CEO Randy Parker told CNBC during an interview. “That’s the situation that we’re in right now.”
Other executives have expressed similar sentiments as they prepare for a “new” U.S.automotive industry: one that’s more expensive, smaller and, by many means, less predictable.
Automotive forecasters are calling for steady to lower sales this year, despite industry sales only hitting 16.3 million units last year. That was the highest level since the pandemic in 2020, but down from more than 17 million for five consecutive years before the global health crisis, according to industry data.
“Anyone in the auto industry … we should all be very careful about consumer demand,” Ford Motor
Ford currently sells sedans outside of the U.S., but discontinued them in the domestic market with the 2020 cancellation of the michigan-made Fusion. Prior to that, Ford also eliminated the larger Taurus sedan, as well as the smaller fiesta and Focus models.
Ford’s competitors, General Motors and Stellantis, have also largely exited the traditional U.S. sedan market.
Concerns about vehicle affordability are attracting attention beyond the automotive industry. A Senate committee, led by Sen. Ted Cruz (R-Texas), requested a hearing with ceos from Ford, GM, and Stellantis to discuss affordability and other issues. The hearing, originally scheduled for January 14, was postponed due to scheduling conflicts and Ford’s objections regarding the absence of Tesla CEO Elon Musk.
Here’s a summary of the key points from the provided text regarding the shift in the EV market:
* Slowing EV Demand & “Mosaic of Powertrains”: automakers are reassessing thier all-in EV strategies due to slowing demand. The industry is moving towards a more diversified approach,described as a “mosaic of powertrains” – meaning a mix of gasoline,hybrid,and electric vehicles.
* Major automakers Adjusting Plans:
* GM: Scaling back EV expansion, focusing on trucks/SUVs, and introducing plug-in hybrids.
* Ford: Shifting investment to hybrids (including plug-ins), cancelling large all-electric trucks in favor of smaller, affordable EVs, and prioritizing core products.
* Stellantis (Jeep): Deprioritizing EVs, even for Jeep, to boost U.S. sales. Jeep’s CEO anticipates a slowdown in the EV industry.
* Hyundai: Taking a mixed approach – continuing current EV models and introducing new ones, while also increasing hybrid production.
* Others (Honda, Nissan, Porsche, Volvo, Jaguar): Have cancelled or scaled back ambitious EV plans. GM has also walked back its 2035 all-EV pledge.
* Factors Contributing to the Shift: Industry dynamics, Wall Street pressure, and changing political landscapes (Trump vs. Biden administrations) all played a role.
* The “Tesla Effect”: The initial surge in EV enthusiasm was largely driven by Tesla’s success, but the market is now evolving beyond that initial hype.
In essence, the article details a significant correction in the EV market, with automakers becoming more cautious and flexible in their approach to electrification. they are responding to slower-than-expected consumer adoption and are hedging their bets by continuing to invest in hybrid technologies and customary internal combustion engine vehicles.
Okay, here’s a draft article based on the provided text, expanded with semantic branching, E-E-A-T considerations, and the required components. Its designed to be thorough, informative, and Google News-friendly. I’ve included placeholders for data tables and further analysis where appropriate. I’ve also added sections to address the “what it means,” “who’s affected,” “timeline,” and “next steps” aspects.
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Trump Administration Rolls Back Fuel Economy Standards – What You Need to Know
Traffic on Interstate 80 in San Pablo, California, US, on Wednesday, Nov. 26, 2025.
David Paul Morris | Bloomberg | Getty Images
President Donald Trump on Wednesday proposed important cuts to strict fuel economy standards for passenger cars enacted under the Biden administration.
“We are officially terminating Joe Biden’s ridiculously burdensome, horrible actually, CAFE standards that imposed expensive restrictions,” Trump said at the Oval Office, flanked by the CEOs of Ford Motor and St
Here’s a breakdown of the key details from the text:
* Ford’s CEO believes embracing electric vehicles (EVs) is crucial for the company’s success. He states they “can’t walk away from EVs.”
* this is not just a US market issue, but a global one. The CEO emphasizes the need for EVs to compete on a global scale.
* Ford is concerned about competition from China. He specifically states he doesn’t want to “cede that to the Chinese” - meaning he doesn’t want China to dominate the EV market.