Key Requests
- Preservation of EV Tax Credits
The group asked Trump to retain the $7,500 federal tax credit for EV purchases, warning that eliminating the credit could stall the U.S. transition to electric mobility. These credits are seen as vital for keeping EVs competitive in a market increasingly dominated by China, which heavily subsidizes its EV sector and has established regulatory frameworks to support self-driving technology. - Advancement of Self-Driving Technology
Automakers urged measures to facilitate the deployment of autonomous vehicles, highlighting the need to stay competitive with China and other global players making rapid strides in this area. - Revision of Emission Rules
The automakers also raised concerns about federal and state emissions standards, particularly those led by California, arguing that they are misaligned with current market realities and inflate consumer costs. While the letter did not propose specific revisions, it called for "reasonable and achievable" standards. - Reevaluation of Safety Technology Mandates
The Alliance questioned regulations requiring all vehicles to have advanced automatic emergency braking systems by 2029, describing these rules as "practically impossible" to achieve with current technologies.
Potential Policy Shifts
The Trump transition team has already signaled intentions to:
- End the EV Tax Credit: Reports suggest the team aims to eliminate the $7,500 EV tax credit, a move likely to hinder the EV market's growth.
- Roll Back Emissions Standards: The team plans to undo Biden-era regulations aimed at increasing fuel efficiency and incentivizing a shift toward EV production, aligning with Trump's campaign promise to "end the EV mandate."
Although no formal "EV mandate" exists, Biden's policies encourage automakers to transition at least 35% of production to EVs by 2032, effectively pushing the industry toward electrification and phasing out fossil-fuel-powered vehicles.
Industry Implications
Automakers argue that eliminating the EV tax credit would further disadvantage U.S. manufacturers against heavily subsidized foreign competitors, particularly from China. The call for regulatory flexibility reflects concerns about balancing innovation, market competitiveness, and consumer affordability while adapting to shifting technological demands.
As the Trump administration prepares to reshape federal auto policies, the outcome will likely have significant implications for the pace of EV adoption, emissions reductions, and the U.S. auto industry's global competitiveness.