Election result likely means disruption for auto industry
Trump’s return could cause chaos among some players
What does yesterday’s election mean for the auto industry? A whole lot of uncertainty for an industry that likes its rules and regulations to be exactly the opposite. Automotive News reports on some of the changes that could be coming with a return to the old administration.
Trump has promised to take steps to isolate Chinese automakers and parts company, part of an effort to protect US auto jobs. That may not change from the Biden administration, which recently announced major tariffs on cars imported from that country.
He could also seriously change the Inflation Reduction Act and its associated EV credits. That could hurt EV adoption, as many buyers rely on the significant incentives to buy electric models. The same change could have a serious effect on the current rush to build EV production and battery fabrication capacity in the US in order to have vehicles qualify for the incentives.
Trump has also mentioned changing light vehicle emissions rules. New rules were set to come into place after the 2028 model year. These could be pushed back or eliminated entirely. Trump could also remove California’s ability to have its own standards, which could greatly increase auto emissions.
Lastly, expect big benefits for Elon Musk. The CEO of Tesla jumped on board with Trump in a big way in the later part of the campaign. The billionaire has pushed to improve government efficiencies, and will no doubt look to secure approval of his problem and delay-plagued Full Self Driving software.
