Electric vehicle sales may be losing momentum after Congress and the Trump administration eliminated federal tax credits, but General Motors CEO Mary Barra insists it’s only a matter of time before buyers make the transition, arguing that EVs are ultimately “better vehicles.”
Since federal EV tax incentives were phased out last September, the electric vehicle market has cooled noticeably. Even so, General Motors Chairman and CEO Mary Barra remains convinced that the dip is temporary and that consumer demand will eventually rebound.
Over time, she said, “people will choose (EVs) because they’re better vehicles,” during a meeting held Monday at GM’s newly opened Detroit headquarters.
Barra acknowledged that General Motors must respond pragmatically to the slowdown by reallocating more investment toward internal combustion engines. At the same time, she remains unconvinced that plug-in hybrids, embraced by several rival automakers as a transitional solution, are the right near-term answer.
While the company has intensified development of combustion engines, it has continued introducing new electric models, including the revived Chevrolet Bolt. Priced at $28,995, plus $1,395 in destination charges, the Bolt now ranks among the most affordable EVs available.
Looking further ahead, Barra outlined several factors she believes are essential to reigniting EV momentum. Chief among them is a dependable, widely accessible national charging network, which former President Joe Biden allocated $5 billion to support.
That initiative has since been paused by his successor, Donald Trump, as part of a broader pullback on EV-related policies. Barra also stressed the importance of developing lower-cost battery technology, noting that batteries remain the most expensive single component in any electric vehicle.
Like many industry executives, Barra is wary of excessive government intervention. And while the elimination of federal incentives has clearly hurt EV sales in the U.S., she said, “I don’t want the regulatory environment to drive EV adoption.”
Instead, she added, “I want it to be because people choose them because they felt they were better vehicles and they fit their lives.”
Barra also expressed surprise at how quickly some automakers have reversed course on electric vehicles altogether. “I’m a little surprised at some (automakers) that are really pulling away very quickly” from their EV strategies. Mazda, for instance, has said it won’t introduce its first new EV for several more years.
Stellantis has canceled the all-electric Ram 1500, while Ford scrapped multiple three-row electric pickups and announced last month that it would end production of the F-150 Lightning, previously the best-selling all-electric pickup.
Barra said GM, by contrast, will take a more measured approach toward full electrification, while significantly increasing spending on internal combustion engine development.
A year earlier, Barra had suggested that GM would introduce plug-in hybrid variants of some larger truck models. Her latest remarks suggest that plan may now be in question. One challenge, she explained, is that many PHEV owners fail to regularly plug in their vehicles, preventing them from realizing the benefits of electric-only driving.
Asked about her personal vehicle, Barra said she can often be seen driving a GMC Hummer EV, which she joked makes her feel like a “badass soccer mom.” Trained as an electrical engineer, Barra spoke enthusiastically about the expanding array of digital safety systems and comfort features entering modern vehicles.
She has previously predicted that GM will generate billions in new revenue through advanced technologies and subscription-based digital services, including its Super Cruise hands-free driving system.
Despite that enthusiasm, Barra has pulled back from certain high-profile technology bets. In 2024, GM shut down its San Francisco-based Cruise robotaxi subsidiary following a near-fatal accident. “We don’t want a (robo)taxi business. We don’t want a (robo)bus business.” Instead, she said, “We want to focus on personal autonomy, not on ride-sharing.”
GM has continued to expand Super Cruise, which now allows hands-free driving on approximately 750,000 miles of roads across the U.S. and Canada.
The next milestone will be a “Level 3” upgrade, enabling drivers to take both hands off the wheel and eyes off the road, allowing activities such as texting or watching videos, while still remaining ready to regain control in emergencies.
The long-term objective is a “Level 4” system capable of operating without a driver at all. Barra acknowledged, however, that she has been overly optimistic in the past about timelines and declined to provide a new target date.
After turning 64 early last month, speculation has intensified about when Mary Barra might step down. She is now in her twelfth year as CEO of the largest U.S. automaker, making her the longest-serving GM chief executive since Alfred P. Sloan, who led the company from 1923 to 1946. Still, retirement does not appear imminent.
If a transition were to happen soon, industry observers often point to Sterling Anderson, co-founder of autonomous technology firm Aurora, who joined GM last June as global chief product officer.
Barra offered no hints, noting only that “We have several people who are very, very talented,” and capable of succeeding her. Ultimately, she said, the decision will rest with GM’s Board of Directors, though as chairman, she will clearly play a significant role in choosing who eventually steps into her distinctive high-heeled shoes.
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