Ford, GM, Stellantis, Toyota plead with Trump not to cut EV tax

U.S. automakers have joined forces to ask Donald Trump not to eliminate electric vehicle tax credits when he takes office next January. Volkswagen, General Motors, Toyota Motor and other companies have invested tens of billions of dollars to develop electric vehicles and retrofit factories to produce them, fearing they will lose competitiveness if the incoming Republican administration eliminates the sweetener.

In a Nov. 12 letter to Trump, the Alliance for Automotive Innovation said incentives provided through President Biden’s inflation-cutting bill could help ensure the U.S. auto industry’s growth amid growing demand for automakers. “Global competitiveness”. Worried about the threat posed by Chinese competitors.

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But in the same letter, the automakers also expressed their concerns about “federal and state emissions regulations (particularly California and its satellite states) that are inconsistent with the realities of the current automotive market and increase consumer concerns.” cost”. Reuters Report.

The Biden team has introduced strict tailpipe emissions rules that are becoming increasingly stringent as we get closer to 2035, the date California hopes to ban the sale of gas-powered vehicles, a move that will be echoed in other states. But carmakers say this can only be achieved by selling more electric cars, even as dealers find that most customers would still rather own a combustion engine car or a hybrid.

Given Trump’s well-known stance on green issues — he previously rolled back President Obama’s emissions regulations and his team has vowed to attack Biden’s rules — it seems entirely possible that automakers will be given more time to clean up their vehicles of carbon dioxide emissions. However, Politico There are reports that Trump may not be able to recoup the $7.5 billion that has been earmarked for infrastructure fee projects because the funds have already been committed.

Automakers have also urged Trump to make legislative changes to help speed up the development and rollout of self-driving cars. But while Democrats insist that automatic emergency braking must be mandatory starting in 2029 (and meet strict universal standards), car companies are asking for more time.