Automakers urge Trump to preserve EV tax credits, accelerate self-driving car deployment

Toyota, GM and Volkswagen are among at least 28 major automakers that have joined a push to maintain key tax credits for electric vehicle (EV) purchases and get the highest level of fast lane paved ahead of the roll out of self-driving cars. On November 12 in a letter, the Alliance for Automotive Innovation — representing the companies — worried about vehicle emissions regulations and that of competitive landscape in the auto industry.

Under Trump’s transition plans, automakers are particularly worried about losing the USD 7,500 consumer tax credit for EV purchases. But reports indicate that Trump’s team is seeking to do away with this credit, a step that could stymie U.S. efforts to transition to electric vehicles, which are already facing headwinds. It also calls for more favourable regulatory conditions for the innovation of self driving vehicle technologies, referring to Chinese progress on advancing regulatory frameworks for autonomous cars.

And the group objected to existing federal and states emissions rules, especially in California, saying they are at odds with the state of the automotive market and add extra expense for consumers. The letter does not spell out specific changes but asks for 'reasonable and achievable' emissions standards. Trump was also asked by the automakers to reverse new rules finalised in April that would require more than 99 percent of new cars to have advanced automatic emergency braking starting by 2029. And they say it just isn’t possible using current technologies.

The letter also criticises unfair competition from Chinese export EVs and technologies that are heavily subsidised by Chinese government, confusing the U.S. auto market even further. The calls come just days after Trump made clear his intention to reverse environmental regulations put in place by the Biden administration, such as ones that make EVs fuel efficient, while accelerating the transition to EVs by 2032. The automakers’ requests could influence the future direction of U.S. automotive policy as the industry navigates a critical transition toward electrification and autonomy.