Staff Reports
The Biden-Harris administration has been busy painting the town green with a flurry of emissions rules that have left American automakers scrambling to comply. The only real answer for these beleaguered manufacturers? Pump out a bazillion electric vehicles. Naturally, the Big Three automakers jumped on board the EV train, vowing to crank out more and more electric models. However, the consumers who rely on these products have thrown a wrench into the plan, leaving companies bleeding money as they try to pivot to this untested market.
To make matters worse for these manufacturers, their hefty investments in the EV sector are now teetering on the brink of failure. With the incoming GOP President Donald Trump making clear that the days of the Biden-Harris EV edicts are numbered, the automakers might soon find themselves wishing they’d invested in something a little more stable than a government-mandated electric dream. Trump has been vocal in his disdain for the EV tax credit and the accompanying rules, hinting that there’s a good chance those perks could be pushed into the history books soon after he takes office.
*TRUMP PLANS TO KILL $7,500 EV TAX CREDIT, HAS SUPPORT FROM TESLA
Elon is literally putting the country above his own financial interests at this point…
Hard to say otherwise. Patriot. pic.twitter.com/NP7U3PEjpq
— Geiger Capital (@Geiger_Capital) November 14, 2024
However, all this uncertainty has led to a confusing jumble of opinions from the auto industry itself. While The New York Times suggested that various car companies were lobbying to keep the mandates, their claims quickly came under fire. An official from Stellantis set the record straight, indicating the company had no interest in keeping the unproductive mandates alive, which left some scratching their heads and questioning the Times’ narrative. The Alliance for Automotive Innovation’s president also revealed that current regulations don’t match the realities of the auto market, leading to inflated costs for the consumer. Apparently, the auto industry is less about climate heroics and more about what makes it to the cash register.
Meanwhile, a piece from the Wall Street Journal gave a shout out to the idea of scrapping artificial mandates entirely. Instead, it suggested that letting consumers decide may actually help curb emissions more effectively. The notion was that a free market approach could lead to innovation and competition, giving consumers more choices while ensuring automaker profits. This sounds infinitely more appealing than the current situation, where the government is effectively choosing winners and losers based on an environmental checklist.
Despite the chaos, executives from Ford and General Motors have noted that they expect to handle any upcoming regulatory shifts quite expertly. With Ford’s lineup still featuring a buffet of options, from gas-powered vehicles to hybrids and, of course, EVs, they’re positioning themselves to make any necessary adjustments. GM is similarly optimistic, promising to work with Trump to find a better path forward. It’s almost as if they are saying, “Don’t worry, we’ll make it work,” but one has to wonder if they’re genuinely convinced of this or merely trying to save face.
The reality is that many automakers are tied to federal policies like a fish to a line, stemming from a history of bailouts that has left the industry reliant on government decisions. Just as they were cozying up to the Biden administration, they’re now trying to appease Trump, who is decidedly pro-American worker. But with an incoming president looking to dismantle the very strategies they’ve invested heavily in, one has to wonder how this marriage of convenience will play out. After all, navigating through this tangled web of EV mandates may just lead to fewer choices for average Americans, who might soon find themselves without reliable wheels—or forced onto a lime scooter.
