Former Ford CEO Mark Fields Says EV Market Didn't Develop The Way Automakers Thought Amid GM's $1.6 Billion Charge

Former Ford Motor Co. (NYSE:F) CEO Mark Fields says that the automakers in the U.S. didn't anticipate the slowdown of EV adoption in the country as General Motors Co. (NYSE:GM) announced it would take a $1.6 billion charge.

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EV Market Didn't Develop The Way Companies Thought, Says Mark Fields

"The automakers really went full bore in putting in capacities for EVs," Fields said during an interview with CNBC on Tuesday. Fields added that automakers made the decision without discussing EV adoption among consumers.

"This is clearly an issue where the market didn't develop the way that automakers thought," Fields said. He also outlined that GM's scale advantage has turned into "an albatross" with EV adoption expected to be lower in "the near, medium-term."

GM's $1.6 Billion Charge

GM on Tuesday announced it would take a $1.6 billion impact due to EV investments in a public filing with the SEC. "On October 7, 2025, the Audit Committee of the Company's Board of Directors approved charges of $1.6 billion in GM North America," GM said in the filing.

The automaker also added that $1.2 billion in charges came from EV capacity adjustments, while the $400 million stemmed from "contract cancellation fees and commercial settlements associated with EV-related investments."

GM And Ford Scale Back Incentives

GM recently scaled back on EVs by rescinding the proposed extension of incentives offered on EVs after concerns from Sen. Bernie Moreno (R-OH), a former car dealer currently active in auto policy. Following GM, Ford, too, rolled back EV incentives.

Texas Offers Incentives On EVs And Alternative Fuel Vehicles

Meanwhile, Texas has announced benefits of up to $2,500 on EVs as well as benefits of up to $5,000 on Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) vehicles in the state.

EVs and PHEVs from major automakers like Ford, GM and Stellantis NV (NYSE:STLA), as well as Tesla Inc. (NASDAQ:TSLA) qualify for the incentive. Ford also recently slashed the price of the F-150 Lightning EV Pickup truck by $4,000.

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