Amid stalled federal funding reviews, automakers like GM and Stellantis have hit pause on EV factory conversions, opting to maintain petrol production as uncertainty clouds America’s clean mobility shift.
General Motors, Stellantis and other manufacturers have reportedly paused plans to convert existing plants for electric vehicle (EV) production, as uncertainty grows over key US federal funding.
According to a report by Wards Auto, the companies had been in line to receive grants under the Domestic Manufacturing Auto Conversion Grants (DMCG) programme, intended to help retool at-risk factories for EV and component manufacturing.
However, with the US Department of Energy (DOE) yet to confirm the status of awards made under the previous administration, automakers are continuing to produce petrol-powered vehicles and components at those facilities.
In early October, the DOE announced the cancellation of more than 300 other financial awards tied to energy initiatives, a move expected to save $7.6 billion. The department said it is still reviewing individual grants.
Ben Dieterich, the DOE press secretary, mentioned that the Department continues to conduct a thorough review of awards made by the previous administration.
GM confirmed it has received no updates on its $500 million grant application, while Stellantis said its two requests, worth a combined $585 million, remain under review. Both companies signalled readiness to cooperate with the DOE once the process resumes.
Stellantis spokesperson Jodi Tinson said the company was hopeful that once the government reopened, the review process would resume and be completed soon after. GM’s Liz Winter added that the automaker would continue to work with the Department of Energy to support American innovation, jobs, and manufacturing.
Meanwhile, supplier ZF North America has withdrawn its $158 million application to convert its Marysville, Michigan plant for e-Mobility products such as the e-Beam axle. The company cited slower-than-expected demand for battery-electric vehicles as the reason.
Despite the setback, ZF said it remains confident about the long-term shift towards vehicle electrification in the US.
