The first U.S. Senator with a background in car dealing has commended President Trump’s proposed plans for the American auto industry which, if implemented, could lead to a significant reset of tactics in the Detroit car industry that has already consumed billions of dollars. This shift comes in the face of the industry’s ongoing push towards electric vehicles.
Rather, the spotlight under the Trump administration would be on freezing existing fuel economy rules for a span of at least 10 years. While critics argue this may inhibit growth of Electric Vehicles (EVs) and displease the environmental lobby, it is remarked by many that such a pivot is necessary for the industry’s overall health considering it deals with the vehicles that consumers are truly invested in purchasing.
A potential second term of Trump administration might take on the establishment by challenging California’s unilateral authority to impose its own rigid emissions standards. Additionally, there could be moves towards repealing defined sections of the Inflation Reduction Act. One of them includes the current $7,500 tax credit for EV consumers, a measure that has so far aided the Detroit automakers to market their electric vehicles effectively.
Along with these transformative measures, President Trump’s blueprint likely encompasses grand tax benefits for those corporations that choose to manufacture vehicles on American soil. Observations on the scale of these plans are truly astonishing, particularly in the face of General Motors’ 2035 objective to produce their cars solely on electric power. Both Ford Motor Co. and Stellantis are also charting aggressive paths to embrace electrification within their fleet over the coming decade.
However, informed industrial experts caution against governmental interferences which might hinder research and production efforts on EVs, saying it would result in the American giants left trailing in the electrified future of automobiles. It’s strange some hold this viewpoint as the proposed plans emphasize on building a stronger, more competitive automotive industry.
One curious detractor is Kathy Harris, director for clean vehicles at the Natural Resources Defence Council. She suggests that diluting clean car requirements could bring adverse circumstances for drivers, auto-makers, and essentially everyone who breathes. To this, many raised an eyebrow, pointing out the need for a more balanced and practical stance regarding the direction the auto industry should take which is firmly rooted on consumer demand.
Moreno, with vast industry experience, maintains that car manufacturers ought to concentrate on crafting vehicles that consumers seek out and can financially acquire. It was clear in few of his remarks that he disagreed with the aggressive push of EVs to merely conform to government-imposed fuel economy standards that do not reflect current market realities.
But Moreno’s criticism of the EV industry doesn’t end there. A notable example he pointed out is Ford’s EV division, which is known as Ford Model e. Despite the hype, this division suffered from a significant loss of $1.2 billion in pretax profits during the third fiscal quarter. Moreover, it’s projected to stumble upon a total loss of approximately $5 billion by the end of the year.
Moreno, a seasoned veteran of the industry, is a 1989 University of Michigan graduate with a bachelor’s degree in business administration. He voiced that for these initiatives to pass, both Congress and Trump would have to be on the same page – which seems to be the state of affairs currently due to their aligned views.
An American-first mindset is echoed in his words, ‘The moment China assumes they can encroach here with their inexpensive, fully electric rubbish cars… they’re grievously mistaken. Any such vehicles imported will be slapped with hefty tariffs making them effectively unsellable. We will not be exploited anymore. It’s time we put a premium on protecting American labor and American jobs.’
Moreno signaled that the Detroit Three should reconsider their strategies as the electric vehicle tax credit could be on its way out. He emphasized that without subsidies to artificially prop up the market, each electric car would have to prove its worth on its own merits.
Moreno praised the divergent approach of Toyota, that decided to make substantial investments in hybrid technology instead of solely focusing on electric. He expressed his desire to see the Lordstown Motors plant back in action, suggesting it could follow similar strategies.
Finally, he proposed a revision of tax codes to favor American companies that employ American workers. A bold example given was, ‘if you’re an American company employing American workers, perhaps you can deduct whatever you pay in salaries twice.’ Moreno firmly believes that if Trump’s auto agenda is implemented, ‘It’ll usher in the golden age of American manufacturing with Ohio and Michigan at the forefront.’