Production is set to begin at the former Detroit-Hamtramck Assembly Plant less than two years after General Motors announced a $2.2 billion overhaul of the plant to build a variety of all-electric trucks and SUVs.
Photo by Jeffrey Sauger for General Motors
Detroit – President-elect Donald Trump’s victory The appointment of Vice President Kamala Harris is expected to usher the U.S. electric vehicle industry into a period of uncertainty.
Republicans, led by the former president, have largely denounced electric vehicles, claiming they are being foisted on consumers. Trump has vowed to roll back or eliminate many vehicle emissions standards mandated by the Environmental Protection Agency, as well as incentives to boost vehicle production and adoption, such as the Biden administration’s Inflation Reduction Act of 2022.
car Industry insiders Trump and other officials said it would be difficult for Trump to completely destroy the IRA, but he could eliminate or limit electric vehicle subsidies through executive orders or other policy actions.
Some say they expect Trump to target federal Currently offering consumer credit up to $7,500 Used to purchase electric vehicles rather than the company’s targeted industrial production credit.
“The IRA may make some adjustments…I don’t think the IRA is going away,” David Rubinstein, co-founder and co-chairman The Carlyle Group The investment firm told CNBC on Wednesday. “There’s some really good stuff in it that I think both Republicans and Democrats will enjoy.”
Many of the investments in electric vehicle production under the IRA are taking place in Republican states such as Ohio, South Carolina and Georgia.
Winners and losers?
Several Wall Street analysts have speculated that legacy automakers—especially “Detroit” companies General Motors, Ford Motor Company and Chrysler parent company star ——will be the biggest winner of Trump’s second term and the Republican Party’s control of Congress.
“We view F and GM as key beneficiaries from the Trump administration,” BofA Securities analyst John Murphy said in a note to investors on Wednesday. “The current environmental regime will force traditional core businesses (automakers, trucks) by the end of the decade, while rapidly shifting the portfolio to electric vehicles.”
General Motors Desire for an “all-electric future” The electric vehicle business, which is profitable in the short term, relies heavily on federal tax credits.
Analysts say EV startups such as Rivian Cars and sobriety group If Democrats win, they will benefit even more.
Shares of General Motors and Ford rose early Wednesday, while Stellantis shares were experiencing America’s big issuesslightly lower. Lucid and Rivian fell 3% and 6% respectively.
Automaker stock prices following President-elect Donald Trump’s victory.
U.S. EV leaders are the exception Tesla. Chief Executive Musk has strongly backed Trump in swing states, and Trump has discussed making the billionaire a government efficiency czar.
All-electric car maker Tesla shares soar In early trading, the stock opened up about 13%, setting a new 52-week high.
“We see RIVN and LCID being challenged, and that’s reflected in the stock to a large extent,” Murphy said. “We don’t expect Tesla to have meaningful issues because it’s already profitable and will be launching new products. An entry-level product that is likely to appeal to the general public.”
Several automakers did not immediately respond to requests for comment following reports from NBC News and several other outlets. Calling for Trump’s election.
Ford congratulated Trump and newly elected officials at all levels of government in a statement Wednesday: “We look forward to working with the new administration and Congress on policies that strengthen the U.S. auto industry, which supports 9.7 million American jobs and drives economic growth. more employment opportunities.
California electric vehicle mandate
Trump is also expected to renew his fight with California and other states that set their own vehicle emissions standards, including requirements for the sale of all-electric vehicles.
Current requirements “Advanced Clean Vehicle II” The 2022 regulations require 35% of 2026-model vehicles (which will be rolled out beginning next year) to be zero-emission vehicles. Battery electric vehicles, fuel cell vehicles, and to some extent plug-in hybrid vehicles all meet zero-emission standards.
Before the election, auto industry officials said many automakers would push for a delay in the mandate no matter who wins the White House.
California Air Resources Board 12 states reported and Washington, D.C., have already adopted these rules; however, starting with the 2027 model year, about half of them have done so. They are part of CARB’s advanced clean car regulations, which require 100% of new vehicle sales in California Zero-emission vehicles by 2035.
Starting this year, electric vehicles account for 10% or more of the local market share in 11 states and the District of Columbia, according to the agency. Automotive Innovation Alliance, Trade associations and lobbying groups representing most major automakers operating in the United States
Auto executives and industry experts also expect Trump may reduce or freeze corporate average fuel economy (CAFE), 2027-2031 style standards.
