auto dealer in black and red logo
MenuMENU
SearchSEARCH

A Measured Approach

Shifting to neutral on power train strategy makes more sense as we look to automotive retail’s future.

July 23, 2025
A Measured Approach

Manufacturers had already pivoted to a more realistic vision of power train by choice. 

Credit:

Pexels/Negative Space

2 min to read


In the past couple of years, electric vehicles became a political issue as both the auto industry and consumers felt pressure to accelerate adoption. I got the impetus behind the push: the need to slow pollution, which is never a bad idea, in my mind. 

The U.S. also saw the need to compete with the rapidly rising Chinese auto industry, which has pulled ahead on EV development, production and sales. China-based automaker BYD passed U.S. EV market leader Tesla in global sales last year.

Ad Loading...

One by one, U.S. automakers made plans for all-EV lineups by next decade, and California banned the sale of new gas-powered vehicles in 2035, a move followed by 11 other states. But consumer demand failed to rise with the expectations. ISeeCars.com declared in July that EVs have peaked in the U.S. after starting to flatten late last year. 

Manufacturers had already pivoted to a more realistic vision of power train by choice – offer all of the types and let the consumer pick from among them, a very democratic, capitalistic concept.

The Trump administration has taken a car crusher to various EV incentives, from federal tax breaks, which will now expire in October, to pulling previously approved federal funding to states for EV charger development. In June a federal judge ordered the administration to reverse the latter in 14 states that sued over the freeze. Congress, meanwhile, killed California’s zero-emissions vehicle mandate.

While I think it makes sense to incentivize clean energy in whatever form, recalibrating the approach to EV development seems like a wise correction. 

I was talking with a friend recently about wishing I’d bought a hybrid years ago. I didn’t want to be a guinea pig but feel now that I waited too long. We both agreed that we’re uncomfortable with the idea of a purely electric model for charge-range anxiety reasons. In addition to higher prices for new EVs, insufficient public chargers in less-developed areas is a top impediment to adoption.

Ad Loading...

Now that the American foot has eased up on the EV accelerator, it seems there should be time to get all of the infrastructure in place for those who want to make the switch. Others can opt for hybrids or different clean technologies, like biodiesel and hydrogen if those models end up making practical sense. 

Hopefully as group, we’ll clear the air while also retaining consumer discretion.

 

 

Subscribe to Our Newsletter

More Industry

Dealer Debrief 04/15/2026 with Lauren Lawrence
Industryby Lauren LawrenceApril 17, 2026

Dealer Debrief: Exploding Airbags & Risk Management

In this week's Dealer Debrief, host Lauren Lawrence covers a potential air bag ban and reinsurance and risk management.

Read More →
Sue Bai and Brian Bautsch standing on a road
Industryby Lauren LawrenceApril 17, 2026

Pilot Program Meant to Improve Roadway Safety

Honda and the Ohio Department of Transportation achieved highly accurate results with their pilot project the Honda Proactive Roadway Maintenance System that concluded this year.

Read More →
Line graphic showing Cox Automotive's March Credit Availability Index status
Industryby Hannah MitchellApril 13, 2026

Auto Lending Opens Up in March

Lenders loosened access for subprime borrowers, and consumers with negative equity reached a record high, Cox Automotive reported.

Read More →
Ad Loading...
Photo of the facade of one of Mercedes' new city studios, with a vehicle displayed in the window
Industryby Hannah MitchellApril 13, 2026

Mercedes Opens ‘Studios’ in Select Cities

The shops help mark the automaker’s beginnings 140 years ago and are to designed to offer major urban center consumers ‘exclusive’ experiences.

Read More →
rendering of outside of Ford's World Headquarters South connection to the new World Headquarters complex
Industryby Lauren LawrenceApril 10, 2026

Ford Expands HQ Facility Renovations

The automaker's renovated Product Development Center, World Headquarters South, will be connected to the World Headquarters complex it opened in November.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Ad Loading...
Dealer Debrief 04/08/2026 with Lauren Lawrence. Auto Dealer Today logo
Industryby Lauren LawrenceApril 8, 2026

Dealer Debrief: Loan Terms & Service Drives

In this week's Dealer Debrief, host Lauren Lawrence covers extended loan terms, a service technician initiative, and the DOWC Fix it Forward Program.

Read More →
front of Porsche Des Moines car dealership
Industryby Lauren LawrenceApril 2, 2026

Auto Group Acquires Porsche Rooftop

Family-owned and operated Ed Morse Automotive Group has added Porsche Des Moines to its Iowa locations.

Read More →
Photo of Lexus of Warwick car dealership exterior
Industryby Hannah MitchellMarch 27, 2026

Lexus Dealership Changes Hands

The addition of a coveted brand, picked up from Penske Automotive, makes 15 total stores for a family-owned auto group in the Northeast.

Read More →
Ad Loading...
chart showing the quarterly electric vehicle market share from 2020-2025
Industryby Lauren LawrenceMarch 27, 2026

EV Sales Slide While Hybrids Climb

California, as usual, led the country in EV registrations in the fourth quarter, but the U.S. as a whole saw a 43% year-over-year volume decrease.

Read More →