Former Ford CEO Predicts Gradual US EV Market Growth After Federal Incentives Pullback

The auto ancillary sector is showing signs of potential growth amid the ongoing transition to electric vehicles (EVs) and recent GST reforms, with some companies adapting their offerings to the EV ecosystem and demonstrating improved financial performance. However, former Ford CEO Mark Fields and current Ford CEO Jim Farley caution that the elimination of federal EV tax credits by the Trump administration will lead to a short-term pullback in demand, causing automakers to adjust their strategies. Despite this, Fields believes that long-term demand for EVs in the U.S. will gradually increase as consumers shift away from internal combustion engine vehicles due to the finite nature of fossil fuels, although growth will be slower than initially expected. This slower adoption has led to significant impairment charges by major automakers like Ford and General Motors, reflecting adjustments to production capacity and strategy. Additionally, factors such as tariffs and supply chain challenges, including aluminum shortages, are impacting profitability and production plans for EVs. Overall, the EV market is entering a period of measured expansion rather than explosive growth, with hybrids serving as a transitional technology amid consumer hesitancy and infrastructure gaps.