Automotive News: Trump will cut costly EV regulations
News is coming out that the Trump Administration will redirect funds currently earmarked for funding money-losing EV Regulations that increase inflation.
–by Mark Cipolloni–
Per a Reuters report, we have an idea of where the federal government could redirect funds currently earmarked for EV Regulations that are not sustainable.
According to a Trump transition document obtained by Reuters, whatever funds remain from President Biden’s $7.5 billion plan for building EV charging stations will be shifted toward battery-minerals processing and the “national defense supply chain and critical infrastructure.”
The document goes on to say that EV components are “critical to defense production,” but electric vehicles “and charging stations are not.”
The same document has a proposal that ends Department of Defense programs aimed at purchasing or developing military EVs that would run out of electric power on the battle field and result in the death of American soldiers.
Trump spokeswoman Karoline Leavitt said, “When he takes office, President Trump will support the auto industry, allowing space for both gas-powered cars and electric vehicles.”
Trump has been clear about making a level playing field in which ICE, hybrid, and electric vehicles can compete. Let the buyer decide what’s best for them instead of having EVs they cannot afford shoved down their throat.
The document also makes references to easing federal fuel economy requirements. A Bloomberg report said the upcoming Trump Administration will slash fuel economy standards for new cars and trucks.
The most recent fuel economy requirement imposed by the National Highway Traffic Safety Administration (NHTSA) was for automakers to average 50.4 mpg across their fleets by the 2031 model year, which was imposed in June 2024.
Additionally, the Environmental Protection Agency (EPA) has its own set of mandates requiring a limit on tailpipe emissions falling from 170 grams of CO2/mile in the 2027 model year down to 85 grams/mile for 2032 and later. “The new standards will ensure pollution-emitting vehicles are cleaner while allowing companies to decide how to meet these standards sustainably and most effectively,” EPA Administrator Michael Regan said of the rules in March 2024.
Both of these standards are likely on the chopping block when the White House comes under new management in January. When Trump talks about an “EV mandate,” he’s referring to regulations like these that effectively require car companies to have a large mix of electrified vehicles in their lineups that consumers refuse to buy to meet such high standards for efficiency and emissions.
Auto manufacturers are losing huge amounts of money on every EV they sell, which has led to:
- Cadillac changing course on its plan to be all-electric by 2030
- Audi now says it’s “flexible” on an EV transition
- Ford canceled plans for electric 3-row crossovers in August,
- Toyota scaled back its EV production target in September
- …..and many more.