Some of the world’s biggest automakers, including General Motors, Toyota, and Volkswagen, are asking President-elect Donald Trump to keep key electric vehicle (EV) tax credits in place and take steps to support the rollout of self-driving cars. This appeal comes at a critical time as the industry looks for clear policies to help it navigate the challenges of innovation, regulation, and global competition.
The Alliance for Automotive Innovation, representing these automotive giants, submitted a letter on November 12th outlining their concerns and recommendations. The letter emphasizes the importance of the $7,500 EV tax credit, a vital tool in boosting consumer adoption of electric vehicles. The group fears that eliminating this credit, a goal reportedly targeted by the Trump transition team, could derail the U.S.’s already slow EV transition. With competition from China growing, including its government-subsidized electric vehicles and advanced regulatory frameworks for self-driving cars, automakers are keen on maintaining policies that level the playing field.
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In their letter, the alliance also addressed vehicle emissions regulations, particularly the discrepancies between federal and state rules, with California often leading the charge for stricter standards. While the group did not propose specific changes, they called for emissions regulations that are both “reasonable and achievable,” aiming to balance environmental goals with market realities and consumer affordability.
Self-driving technology also took center stage in the automakers’ proposals. The group underscored the need for regulatory frameworks that support the safe and efficient deployment of autonomous vehicles. However, they expressed concerns about rules finalized earlier this year requiring nearly all new vehicles by 2029 to include advanced automatic emergency braking systems. Automakers argue these requirements are unrealistic given the current state of technology and have requested reconsideration of the timeline.
The broader backdrop of these discussions is the Trump administration’s stated intent to roll back several Biden-era regulations designed to enhance fuel efficiency and accelerate the EV shift. These policies aim to incentivize automakers to produce at least 35% EVs by 2032 and encourage the gradual phase-out of fossil-fuel-powered vehicles. Although there is no official “EV mandate,” these regulations serve as a de facto roadmap for the industry’s transition to cleaner technologies.
Automakers fear that reversing these policies could stall progress and leave the U.S. lagging in the global race for EV and autonomous technology dominance. At the same time, they highlight the importance of balancing innovation with realistic market capabilities, consumer demand, and the competitive pressures posed by international players like China.
As the automotive industry stands at a crossroads, the stakes are high. Decisions made in the coming months will not only shape the future of mobility in America but also influence its competitiveness in a rapidly evolving global market. Automakers are clearly signaling their readiness to innovate, but they’re also calling for a policy environment that supports sustainable growth and technological leadership.
