Some automakers who pivoted towards EVs may be hurt by the sudden about-face
of ConsumerAffairsFollowing his recent appointment as the U.S. Transportation Secretary, Sean Duffy wasted no time in carrying out one of President Donald Trumps first directives after reclaiming the White House: rewriting stricter fuel-economy rules put in place during the Biden administration.
Duffys action came just hours after his swearing-in on Tuesday, when he signed a memorandum ordering the National Highway Traffic Safety Administration (NHTSA) to reassess fuel-economy standards for vehicles produced from the 2022 model year onwards.
The new directive marked a sharp pivot from the previous administrations push for ambitious fuel economy targets, which were seen by some industry experts as burdensome. Specifically, the Biden administration had set an aggressive standard requiring automakers to reach an average of 50.4 miles per gallon across their fleets by 2031.
Duffy, who had previously served as a U.S. congressman and Fox News contributor, criticized these standards, claiming they inflated the cost of new cars and represented unnecessary government overreach.
Fossil fuel-friendly
Duffys actions, signaling the Trump administrations commitment to a fossil fuel-friendly energy policy, were not limited to fuel-economy rules.
The Transportation Secretary has also been tasked with implementing measures to reduce government support for electric vehicles (EVs). These steps align with the broader agenda to unwind policies that incentivized the manufacturing and purchase of electric vehicles, a major focus of the Biden administration.
The Inflation Reduction Act of 2022, passed under Biden, led to billions of dollars being invested in EV and battery production within the U.S. But the push for electric cars had shown signs of strain, particularly as demand for plug-in models remained tepid, and prices for EVs remained significantly higher than for gasoline-powered vehicles.
In recent months, automakers began to adjust their strategies in response to a perceived shift in the regulatory landscape. Companies like Stellantis NV and Volkswagen AG made significant decisions in alignment with the changing political climate.
Stellantis, for instance, postponed its first all-electric Ram pickup and made revisions to its plans for a Jeep plant in Ohio. Volkswagen, too, reversed plans to introduce its ID.7 electric sedan to the U.S. market. Meanwhile, Stellantis halted work on an electric Chrysler crossover and scrapped plans for Alfa Romeo to transition to exclusively selling electric vehicles by 2027.
Tailpipe pollution
The focus on electric vehicles was further complicated by the Environmental Protection Agencys (EPA) tailpipe pollution standards, which compelled automakers to sell a greater share of electric models.
Under Trumps administration, the EPA is expected to re-evaluate or rewrite these limits, potentially easing the pressure on automakers.
Photo Credit: Consumer Affairs News Department Images
Posted: 2025-01-29 19:14:50
