For Donald Trump, there is no need for aid for electric cars. Photo credit: Allison Robbert – Pool via CNP/picture alliance / Consolidated News
This is his provisional White House until January 20, the day of his inauguration. At Mar-a-Lago in Florida, in the residence of Donald Trump, we not only name a future government, which must be approved by the Senate, we also make decisions which are rather the responsibility of these future ministers. And one of them could well call into question one of the key points of the IRA (Inflation reduction act), the ecological transition program of the outgoing team.
According to the Reuters agency, the 47th president will simply eliminate the bonus of 7,500 euros offered to any American buyer of a new electric car upon his accession to power. And, at the same time, it would put an end to the obligation imposed on manufacturers to produce 67% of EVs by the 2034 deadline.
A turnaround after a previous turnaround
A new surprising about-face from someone who, after declaring himself fiercely hostile to electric cars, changed his mind thanks to the millions of dollars that Elon Musk paid for his campaign. Moreover, how does the latter react to this reduction in subsidies which deprives its customers of a rebate?
He doesn’t say a word about it, but voluntarily lets his feeling escape, which is far from worry. Tesla holds half of the electric car market share in the United States and rather than seeing this bonus cancellation as a stab in the back, the future Secretary of State for Government Efficiency sees it as a way to undermine its competitors Ford, General Motors and Stellantis, while increasing its lead over the latter.
But for their part, upon learning of this new budget cut, the three from Detroit did not really panic as Musk expected. As if they had anticipated Trump’s decision and were becoming fatalistic. However, during the year, after a difficult start, EV sales increased in the United States. Their market share could reach 10% at the end of 2024 and ultimately catch up to 12% in Europe. Because charging infrastructures have taken a leap forward, and because manufacturers, under duress, have lowered the prices of their models.
Except that there are three of them sharing 50% of a not-so-huge cake and that the big three predicted a much faster rise in electrification. So, they have partially changed their tune for several months. Ford calmed things down this summer, by canceling work on its future large electric SUVs and focusing on small models such as hybrids.
At General Motors, we seem to be sailing by sight. Completed the ambitious objective of 1 million electric cars in 2025. Its boss Mary Barra no longer even wants to deliver forecasts and simply indicates that the firm “will adapt to customer demand”while relaunching R&D on the V6 and V8.
A president with fluctuating opinions?
At Stellantis, we are just as fatalistic, but a little more confident. The current concerns of the group’s American brands (Jeep, Ram, Chrysler, Dodge) are occupying people’s minds and Trump’s decision is just another small embarrassment in an ocean of problems.
Above all, we are pleased to have the STLA Frame platform, designed for the US and its large pick-ups and light trucks. It is modular and allows the design of electric or thermal cars depending on what the market wants. Moreover, Carlos Tavares, interviewed at the start of the week during his visit to the Rennes La Janais factory, was more philosophical than alarmed. « On s’adaptera » he explained. For him, Donald Trump’s decision is not finalized and he is waiting for it to be finalized before delivering the future battle plan to his troops in Detroit. So the word of a politician, even that of the 47th President of the United States, should not be taken literally?
