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Now that Donald Trump has been declared the victor of the 2024 presidential election and it appears his own party will seize control of the House and Senate, many are wondering what’s on the horizon for the auto industry. While we don’t know everything, there definitely will be some shifts in the market in the coming months.
Lamborghini crashes and burns to a crisp during high-speed rally.
One of the most obvious changes is that Trump has vowed to end the federal EV mandate on his first day in office. Some argue no such mandate exists, but EPA regulations have set up consumers to be forced into buying EVs in large numbers later in this decade. Now that appears to be going away.
He will also likely torpedo the $7,500 tax credit for buying an EV with Republican support in Congress. Considering those subsidies often lead automakers to increase prices by roughly the same amount, it might change little.
While some might fear without the government propping up that niche part of the industry will lead to its demise, we’re not so sure. In fact, as EVs have to compete on a more leveled-out playing field, we expect their quality and features will improve. This could be great news for anyone who loves electric propulsion, ironically.
Trump also will likely pull back government support for electric charging stations nationwide. However, the promise under the current administration to have stations set up from sea to shining sea hasn’t exactly panned out. We don’t know what might happen next with that, but it will likely have to be the private market managing any infrastructure expansion.
More surprising is the possibility Trump will green light robotaxis nationwide, allowing existing services like Waymo to expand into new markets and clearing the way for Tesla to get its own fleet of driverless cars on public roads.
As the 47th President of the United States has vowed, regulatory agencies like the EPA and NHTSA could see their power and staffs greatly diminished. That in turn might put an end to federal authorities going after businesses for selling or installing what they classify as an “emissions defeat device.” That activity has chilled a good portion of the aftermarket parts industry, so it might come alive again.
Although, talk of a possible trade war with China would force parts manufacturers to scramble and find new places to host factories for production. That one is quite uncertain, but a shift might be coming with consequences nobody can fully anticipate.
Image via Ford
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