DETROIT — Thousands of Michigan manufacturing jobs and billions of dollars in automotive investments face growing uncertainty as electric vehicle sales plunge at Ford, General Motors and Stellantis. American consumers are increasingly choosing hybrids, gasoline-powered pickups and SUVs instead, raising questions about whether Michigan’s automakers can adjust production without disrupting employment, delaying factory investments or undermining publicly supported battery projects.
Ford’s U.S. electric vehicle sales declined 68% during the first nine months of 2026, while General Motors recorded a 43% decline. Stellantis reported even steeper losses for several electric models.
But another set of numbers tells a different story.
U.S. hybrid sales increased 23% during the same period, while used electric vehicle sales climbed 19%.
The changing market raises an important question for Michigan’s economy: Are consumers rejecting electric vehicles, or are they simply choosing vehicles that offer better affordability, convenience and value?
U.S. Electric Vehicle Sales Fall 30.7%
According to an October 8 Reuters report, citing automotive research firm Motor Intelligence, U.S. electric vehicle sales declined 30.7% during the first nine months of 2026 compared with the same period last year.
EVs accounted for approximately 6% of new vehicle sales, down from 8.5% a year earlier.
The declines were particularly severe among Detroit automakers.
Ford’s EV sales fell 68%, while GM’s dropped 43%.
Stellantis, parent company of Jeep, Ram, Dodge and Chrysler, experienced even steeper declines in several electric models.
According to the company’s third-quarter sales report, Jeep Wagoneer S sales plunged 95%, falling from 10,426 vehicles during the first nine months of 2025 to just 519 during the same period this year.
Electric Dodge Charger sales declined 89%, from 7,075 to 767 vehicles.
Fiat 500e sales dropped 80%.
Those declines contrast sharply with Stellantis’ overall U.S. sales, which increased 3% through September.
The figures suggest the company’s difficulties are concentrated in particular vehicle categories rather than its entire business.
What Americans Are Buying Instead
While new EV sales are struggling, hybrids are gaining customers.
National hybrid sales increased 23% during the first nine months of 2026, accounting for approximately 15.6% of new vehicle sales.
Ford reported that sales of its Maverick Hybrid pickup jumped 59.6% during the third quarter, reaching a record 27,793 vehicles.
The company’s third-quarter sales report also showed Explorer SUV sales increasing 17.6% through September.
At Stellantis, Ram 1500 pickup sales surged 73% during the third quarter, while the company reported stronger sales for its Jeep Cherokee Hybrid.
General Motors continues to generate substantial sales from its Chevrolet Silverado and GMC Sierra pickups, along with popular SUVs and more affordable crossover vehicles.
The contrast is significant.
Consumers haven’t stopped buying vehicles. But many are choosing gasoline-powered models and hybrids over new electric vehicles.
Winners And Losers In The U.S. Auto Market
New electric vehicles: Down 30.7%
Ford electric vehicles: Down 68%
GM electric vehicles: Down 43%
Jeep Wagoneer S: Down 95%
Dodge Charger EV: Down 89%
Hybrid vehicles: Up 23%
Used electric vehicles: Up 19%
Ford Maverick Hybrid: Up 59.6%
Ram 1500 pickup: Up 73%
Sources: Motor Intelligence, CarGurus, Ford, Stellantis and Reuters. National category figures and most EV figures cover January–September 2026 compared with the same period in 2025. Maverick Hybrid and Ram 1500 figures compare third-quarter sales.
Why Buyers Are Changing Their Minds
Affordability is one important factor.
The average new vehicle transaction price reached approximately $50,089 in August, according to Cox Automotive.
Consumers are also facing higher insurance, housing and other household expenses.
Meanwhile, the federal $7,500 tax credit for qualifying new electric vehicles expired in September 2025.
The incentive had made many EVs more affordable. Its expiration increased their effective purchase cost and encouraged consumers to buy before the deadline.
That means some of this year’s sharp sales declines reflect unusually strong EV sales during the comparison period.
But other concerns remain.
Electric vehicles can require access to reliable charging stations, and some buyers remain concerned about driving range and charging time.
Hybrids offer an alternative.
They improve fuel economy while retaining gasoline engines, eliminating the need to depend on charging infrastructure.
That combination has become increasingly attractive as gasoline prices rise.
According to Reuters, regular gasoline averaged approximately $4.43 per gallon nationally in September, compared with $3.20 a year earlier.
Used Electric Vehicles Are Selling
One of the more surprising findings involves used EVs.
While new electric vehicle sales declined more than 30%, used EV sales increased 19% through September, according to CarGurus data cited by Reuters.
That suggests electric vehicles still appeal to some consumers, particularly when purchase prices are lower.
The difference between new and used EV sales complicates the argument that Americans are rejecting electric transportation altogether.
Price may be as important as technology.
The contrast also raises questions about whether manufacturers can introduce less expensive electric models that compete more effectively with hybrids and gasoline-powered vehicles.
Michigan’s Automotive Economy Faces A Test
Michigan has spent years attracting electric vehicle and battery manufacturing investments intended to preserve the state’s position as a national automotive manufacturing center.
Those projects involve billions of dollars in private investment, substantial public economic-development commitments and thousands of promised jobs.
A prolonged EV sales slowdown could cause manufacturers to reconsider production schedules, hiring plans and future investments.
At the same time, growing hybrid demand could create opportunities for Michigan companies producing engines, transmissions, electric motors and other components.
The economic consequences will depend on how quickly automakers and suppliers can adjust.
The latest sales figures do not establish how many Michigan jobs will be lost or whether specific battery projects will be canceled.
But they raise new questions about whether the state’s automotive investments are aligned with the vehicles consumers are actually buying.
The stakes extend beyond Detroit’s automakers to suppliers, workers, local communities and Michigan taxpayers.
What Happens Next?
Electric vehicles are not disappearing.
In Europe, EVs accounted for 23.2% of new vehicle sales through September, compared with 17.7% a year earlier.
That means Detroit automakers face two different markets: growing EV demand in Europe and stronger consumer interest in hybrids and gasoline-powered vehicles in the United States.
For Michigan, the challenge is determining which technologies will support manufacturing jobs and economic growth over the next several years.
The critical question is whether Michigan’s automotive industry can follow changing consumer demand without sacrificing the jobs and investments intended to secure its future.
Coming next: Michigan has committed substantial public resources to attracting electric vehicle and battery manufacturing projects, with thousands of jobs tied to those investments. MITechNews is asking Ford, General Motors, Stellantis, state economic-development officials and automotive industry experts whether declining EV sales are changing Michigan production plans, hiring commitments and factory investments. We’ll also examine which Michigan plants could benefit from growing hybrid demand—and what the changing automotive market means for workers, suppliers and taxpayers.
