$75 Billion: The Price of 12 Automakers Retreating From EV Targets

 Strategic reversals in the global automotive industry have cost manufacturers at least $75 billion over the past year, according to Financial Times calculations. The shift, driven by canceled EV launches and restructured investments, follows resilient demand for internal combustion engines and weakening regulatory support across the U.S. and Europe.

At least 12 global automakers have decelerated their electric transitions. Last week, Honda abandoned its 2040 phase-out goal for gasoline engines, forecasting a $16 billion hit over the next two years. Other giants, including Mercedes-Benz, Ford, Stellantis, and Volvo Cars, have similarly lowered their all-electric targets.

In the luxury segment, Rolls-Royce confirmed it will produce gasoline engines beyond 2030, while Bentley, Lotus, Audi, and Porsche scaled back their 80%-100% electrification goals, opting to extend hybrid availability. Lamborghini scrapped plans for its first all-electric "Lanzador" slated for 2030, pivoting to a plug-in hybrid; CEO Stephan Winkelmann cited a "clear rejection" of EVs due to the lack of engine sound and emotional engagement.

While Ferrari halved its 2030 EV target, it proceeds with its first electric model in May, with CEO Benedetto Vigna vowing to preserve the "familiar roar" of its engines. This industry-wide pivot follows significant policy shifts; since Donald Trump took office, federal EV tax credits have been eliminated, and the EU has eased emission standards. Chris Brownridge, CEO of Rolls-Royce, noted: "Since the launch of the Rolls-Royce Spectre, the world has changed."