Thursday, February 22, 2024
News Automakers Say Trump Proposals Would Hurt EV Sales

Automakers Say Trump Proposals Would Hurt EV Sales

Inflation reduction driving EV investments

  • Removing IRA credits could kill electric investments

  • Former President has been outspoken against electric vehicles

A new U.S. administration could mean a halt in the growth of EV sales. That’s what Nissan and GM are saying after former president Trump’s advisers said he plans to slash the green-tech Inflation Reduction Act if elected in 2024.

The IRA is responsible for big consumer incentives for EV buyers. That is if they buy electric models built (and with parts like the battery sourced from) the U.S. and a few of its trading partners. The result of the legislation has been tens of billions in investments into building batteries and EVs in the country.

The Financial Times reports that Nissan’s CEO said that “penetration of EVs will be much more promising with that kind of act,” meaning if the IRA remained in place. GM’s CFO said that the IRA had “tremendous benefit.” “We don’t want to end up saying this vehicle program is really good with the IRA, only to have the IRA go away, and now suddenly, the vehicle can’t make money,” he said.

Tax credits of up to $7,500 help EV buyers, but also help automakers by driving sales, improving scale and thus profitability. Removing them could make it harder for automakers to turn a profit as the tech matures.

Korean battery companies including LG Energy Solution, SK On, and Samsung SDI have all started joint ventures with automakers in the U.S., and are spending billions on battery factories. Removing the IRA or any move that cuts EV sales or removes battery sourcing restrictions could curb or stop these investments, hurting the states where they are set to be made.


Trending Now

Kia shows new Hybrid 2025 Carnival Minivan in Toronto

Kia's new hybrid powertrain will help the minivan's fuel consumption. The new design is more in line with the latest models from Kia.   The...

Alfa Romeo Quadrifoglio Models Discontinued in North America

Alfa Romeo discontinues Giulia and Stelvio Quadrifoglio models in North America after 2024. Final orders for 505-horsepower bi-turbo V-6 models close end of...

Is GM working on a PHEV version of its full-size trucks?

The PHEV versions could help the Ultium platform to gain momentum. The project regarding the replacement of the old Express/Savana commercial vans with...

Porsche Launches New V6 Panamera E-Hybrid Models

2025 Panamera gets two new hybrid models E-Hybrid adds up to 536 hp Porsche is pouncing with a pair of new Panamera models. The...

General Motors Will Invest US $150 Million into NMG for a Supply of Canadian Graphite

NMG will supply the automaker with 18,000 tonnes of graphite annually for at least six years. NMG will process the carbon-neutral graphite into...


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.