Summary
- Automakers are urging President-elect Trump to preserve electric vehicle tax credits to support EV manufacturing and remain competitive globally
- The letter from the auto industry lobbying group urges the administration to maintain incentives for EVs and advance the framework for autonomous cars
- General Motors is committed to continuing its EV efforts despite potential policy changes, with a focus on producing vehicles that customers want
- Hyundai Motor Group showcased several new and upgraded EV models at the LA Auto Show, with factory-fitted Tesla charging ports
- Automakers are exploring different strategies to convince Trump to maintain tax credits, considering his ties to the oil and gas industry and the potential impact on EV adoption.
Article
Automakers Urge Trump to Preserve EV Tax Credits
A week after the U.S. elections, top auto industry lobbying group sent a letter to President-elect Donald Trump urging him to maintain the electric vehicle tax credits. Automakers, including GM, Ford, and Hyundai, have heavily invested in EV manufacturing and want to remain competitive globally, especially with China leading the way in EV adoption. The urgency of the letter indicates the importance of tax credits in continuing EV production.
GM’s Commitment to EVs Despite Policy Changes
General Motors Chief Financial Officer, Paul Jacobson, confirmed that GM’s efforts in the EV sector will continue even if related policies change. Despite facing production challenges and software issues with the Bolt EV last year, GM has turned things around and become America’s second best-selling EV maker in Q3. Jacobson emphasizes the importance of consumer demand and the advancement of technology in the EV market.
Hyundai Motor Group’s Showcase at the LA Auto Show
Hyundai Motor Group made a significant impact at the LA Auto Show with the unveiling of the three-row Ioniq 9, upgrades to the 2025 Kia EV6, and the 500 horsepower 2026 Kia EV9 GT. One key feature across these models is the factory-fitted Tesla charging port, providing access to Tesla Superchargers. The Ioniq 9 offers a larger battery and better range, while the EV6 has received battery upgrades and a more powerful GT trim.
Automakers Push for Regulatory Framework and Emission Standards
In their letter to the President-elect, automakers are urging the preservation of incentives that support the development of EVs and promote global competitiveness. They also emphasize the need for a federal regulatory framework for autonomous vehicles to ensure the U.S. remains a leader in AV technology. The industry stresses the importance of stability and predictability in emissions regulations to support customer needs and maintain competitiveness.
The Impact of Deleting EV Tax Credits on Tesla
While Tesla CEO Elon Musk supports ending the tax credits, the move could have a significant impact on the company’s balance sheets. Tesla has benefited from selling emissions credits to other automakers, accounting for a substantial portion of its net profits. The potential removal of tax credits could affect Tesla’s profitability and its position as a leader in manufacturing EVs profitably.
Strategies to Persuade Trump to Maintain Tax Credits
Convincing President-elect Trump to retain the EV tax credits may require additional efforts from the auto industry. With Trump’s ties to the oil and gas industry and the appointment of a fracking veteran to lead the Department of Energy, automakers may need to explore alternative strategies to ensure the continuity of tax credits. Engaging with Trump’s transition team and highlighting the benefits of EV incentives could be crucial in securing support for tax credit extension.
Read the full article here
