Trump attacks electric cars and manufacturers defend themselves

That’s it, Donald Trump has taken power and already implemented his promise to cut all aid for electric cars, but he could find an unexpected adversary on his way, the manufacturers themselves.

Before taking power, Mr. Trump also pledged to fight against California’s more restrictive laws, which around fifteen states follow.

“Under George W. Bush and during Trump’s first term, California challenged federal intervention and it will do the same. “There are only lawyers who are going to make money from this,” says Daniel Breton, of Electric Mobility Canada.

Lots of money

Except that even though the stricter standards have been shoved down their throats, manufacturers are tired of playing yo-yo.

The Alliance for Automotive Innovation represents the vast majority of manufacturers that sell cars in the United States. According to the New York Timesthe organization wrote to the future president a week after his election to explain to him that they have invested hundreds of billions of dollars in the transition and that the 1.1 million workers in this industry could be in danger.

The Alliance estimates that by 2030, the manufacturers it represents will have invested $1.68 trillion (1680 billion, or a little more than half of Canada’s GDP in 2023) in the transition to electric.

The automakers wrote that for the auto industry to remain “profitable and competitive,” it needed “stability and predictability in emissions standards.” »

Automakers want the regulations put in place by Joe Biden to remain, with adjustments like having more time to comply and lower penalties.

Car and Driver then contacted the Big Three. Ford and GM referred the magazine to the Alliance’s letter. Stellantis responded, however, that it could adapt to Trump’s changes and that its platforms were versatile, with the ability to run on gas or battery.

“Stellantis is having problems (following the transition). And it’s too late to turn back. Manufacturers have invested hundreds of billions of dollars,” agrees Daniel Breton.

Musk’s role

As for the presence of Elon Musk alongside Trump, it would serve the interests of his company – Tesla, which is not a member of the Alliance – more than the cause of EVs.

Regarding the $7,500 tax credit for purchasing an EV that Trump abolished, Musk responded that it would hurt other manufacturers much more than Tesla.

Still according to the New York TimesMusk’s intentions would rather be to abolish government obstacles to autonomous cars.

And if Tesla avoided bankruptcy in the past, it would only be because of the emissions credits it sold to other manufacturers. During the first nine months of this year, these credits represent 43% of its profits.

According to the United States Environmental Protection Agency (EPA), to meet standards set by the Biden administration, 56% of new vehicles sold in 2032 would need to be electric and 16% hybrid. These figures are currently 9 and 11%.

See also: Trump’s tariffs and the automobile