EV Sales Slump Forces Michigan's Automakers To Hit The Brakes

The electric-vehicle boom that reshaped Michigan's industrial plans is cooling fast, and the state's automakers are adjusting on the fly. New EV sales declined more than 30% while used EV sales rose 19% through September, according to CarGurus data cited by Reuters — a sharp reversal that is forcing hard decisions across the industry.

Jobs and billions on the line

Thousands of Michigan manufacturing jobs and billions of dollars in automotive investment face growing uncertainty at Ford, General Motors, and Stellantis. A prolonged slowdown could push the automakers to rethink production schedules, hiring, and the future of plants retooled for electric output.

A year of retrenchment

The signs have been building. Earlier in 2026, GM idled its all-electric Factory ZERO in Detroit for weeks to align output with demand, and the automaker has shifted its Orion Township plant back toward gas-powered trucks. The expiration of the federal $7,500 EV tax credit at the end of September 2025 removed a key sales incentive, and demand has softened in the year since.

What it means for Michigan

For the state that bet heavily on leading the electric transition, the slump is a sobering recalibration. The long-term shift toward electrification isn't being abandoned — but its timeline is stretching, and Michigan's factories and workers are absorbing the uncertainty in real time.