Trump has railed against the EV rules, which strictly limit the amount of tailpipe pollution while also ramping up fuel economy standards
Three of the nation’s largest automakers, Ford, General Motors and Stellantis, are strategizing with other car manufacturers on how to make a delicate request of President-elect Donald Trump: Don’t scrap the federal regulations that compel the industry to sell electric vehicles.
In fact, most automakers don’t love the more stringent rules Biden put in place. But they have already invested billions in a transition to electric vehicles and fear that if Trump made an abrupt change as he has promised, they could be undercut by automakers who sell cheaper, gas-powered cars. They argue it would harm an industry that is a backbone of American manufacturing and employs 1.1 million people.
Transportation is the sector of the U.S. economy that produces the most greenhouse gases – pollution that is dangerously heating the planet. The Obama administration was the first to limit tailpipe emissions of such pollution. During his first term, Trump effectively erased those rules, replacing them with standards that were little more than business as usual.
Electric vehicle supporters had hoped that Musk would persuade Trump to retain the EV rules. But that seems unlikely; he is now poised to lead the Trump administration’s initiative to reduce regulations. “In my view, we should end all government subsidies, including those for EVs, oil and gas,” Musk said on X last week.
Still, virtually all auto executives expect electric vehicles to displace gasoline cars over time, and if the American carmakers falter now, they risk being overtaken by carmakers from Europe and China. “The worst thing of all for the automakers, even worse than a difficult regulation, is a back-and-forth swing every four years,” Brinley said.
Among Trump’s biggest grievances with automakers includes a 2019 legal agreement that four of the world’s largest automakers – Ford, Volkswagen, Honda and BMW – secretly struck with the state of California to reduce their tailpipe emissions according to stringent limits set by that state. In a letter at the time to environmental groups, Barra wrote: “President-elect Biden recently said, ‘I believe that we can own the 21st-century car market again by moving to electric vehicles.’ We at General Motors couldn’t agree more.”Barra further cemented her relationship with Biden in 2022, when GM hired his niece, Missy Owens, as its head of environmental, social and corporate governance.
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