GM Navigates EV Challenges
GM Reports 4.2% Q2 Sales Drop as EV Demand Weakens, Pauses Next-Gen Truck
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Key Points
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GM reported an average transaction price of more than $52,400 in the quarter, highlighting strength in trucks and SUVs and noting six budget-friendly Chevrolet and Buick models starting around $30,000, which underscores its pricing strategy and broad affordability options.
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GM’s EV program faced deeper issues: Blazer EV fell 83% year over year and Silverado EV dropped 41% in the prior period, and the company indefinitely suspended development of its next-generation electric truck, while incurring about $8 billion in EV-related charges in 2025 including writedowns and canceled battery contracts.
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GM’s competitive position is challenged by a stronger push from Toyota, which is narrowing the gap in market share as hybrids gain traction; GM remains limited in hybrids with Corvette E-Ray being its only hybrid, while executives have dismissed hybrids as transitional, potentially leaving GM vulnerable as industry demand shifts toward a more hybrid mix.
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In Q2, EV demand overall fell 33% year over year, with Silverado pickups declining (the EV version down about a quarter), and first-half brand performance showing steep declines (Cadillac down 19.2%, Buick down 7.5%, Chevrolet down 3.9%, GMC down 0.3%), even as GMC Sierra rose about 5%.
General Motors sold 714,896 vehicles in the second quarter of 2026, a 4.2% drop from a year earlier, according to Seeking Alpha. The decline was led by a collapse in electric vehicle demand and weaker Silverado sales, even as GM's trucks and SUVs kept the company atop the U.S. sales rankings.
For the first half of 2026, GM moved roughly 1.3 million vehicles — down 6.8% year over year, Reuters reported. The results still beat some analyst forecasts, but the numbers signal a painful retreat from GM's once-bold electric ambitions.
EV Sales Crater as GM Pulls Back on Electric Trucks
GM's electric vehicle lineup fell apart in Q2. The Equinox EV dropped 61.8% to just 6,660 units. The Blazer EV fell 68.1% to 2,089 units. The Silverado EV slid 25.9% to 2,266 units, according to Intellectia AI. Overall, EVs shrank to just 3.8% of GM deliveries, down from 6.2% a year ago.
The damage goes deeper than soft sales. GM has racked up roughly $7.6 billion in EV-related writedowns and canceled battery contracts since early 2026, Bloomberg reported. In April, the company indefinitely suspended its next-generation electric truck program. Factory Zero, GM's flagship EV plant in Detroit, was idled in March, leaving 1,300 workers temporarily laid off.
Trucks and Pricing Hold Up Margins Despite the Slump
While EVs struggled, GM's gas-powered trucks and SUVs carried the quarter. The GMC Sierra posted a record 95,147 units, up 5% year over year. GM's average transaction price topped $52,400, well above the industry norm, according to Seeking Alpha. CFO Paul Jacobson credited
Toyota Closes In on GM's Century-Long Sales Crown
GM has been the top-selling automaker in the U.S. almost every year since 1931. That title is now under threat. Cox Automotive forecasts Toyota trails GM by just 83,255 units through mid-2026 — the narrowest gap since 2021, according to CBT News. Economist Charlie Chesbrough warned,
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