General Motors (GM) has taken a major step back from its once-bold pledge to sell only electric vehicles (EVs) by 2035, opting instead for a more balanced production strategy. The Detroit automaker revealed this week that it will invest $4 billion in expanding production of petrol-powered vehicles, a move industry analysts see as effectively shelving the original EV-only ambition.

Though GM continues to assert its belief in an “all-EV future,” the new investment signals a recalibration in response to changing political, economic, and consumer dynamics. “They’re not abandoning EVs, but this investment shows they no longer see 2035 as a realistic target,” said Sam Abuelsamid, an auto analyst at Detroit-based research firm Telemetry told Politico .

GM’s revised strategy reflects broader challenges in the EV sector. Since the company unveiled its goal in 2021, momentum has slowed. The initial optimism under the Biden administration, which introduced EV incentives and green infrastructure plans, has given way to a more conservative stance under President Trump. Federal support for EVs has been reduced, new tariffs have been introduced, and public enthusiasm has cooled, prompting automakers to hedge their bets.

Despite the strategic pivot, GM reported 37,000 EVs sold in Q1 2025, securing its position as the second-largest EV seller in the U.S. behind Tesla. Still, analysts suggest the 2035 pledge was more symbolic than practical. “It was always aspirational,” said independent analyst Alan Baum. “They’ve outperformed many competitors, but policy gaps and market reluctance are limiting growth.”

GM’s current restructuring includes relocating production of petrol vehicles from Mexico to U.S. plants to dodge new tariffs. The company’s Orion plant in Michigan will now handle full-size SUV and pickup production, while the Equinox will shift to Fairfax, Kansas, and the Blazer to Spring Hill, Tennessee.

Meanwhile, EV manufacturing will continue at Factory Zero in Detroit, though it is operating below capacity. That plant will produce electric Silverados, Sierras, Escalades, and the Hummer EV. The upcoming Chevrolet Bolt reboot will be built in Fairfax.

In another telling sign, GM recently cancelled plans to produce electric motors in Buffalo, New York, redirecting nearly $900 million into V-8 engine production instead. These investments suggest GM expects internal combustion engines to remain part of its lineup well beyond 2035.

“Given the current market and regulatory climate,” Abuelsamid concluded, “GM’s pivot is not surprising – it was always a long shot.”