by Trump Administration Changes Rules for Automakers
The administration of former U.S. President Donald Trump has initiated a rollback of federal Corporate Average Fuel Economy (CAFE) standards. According to experts, these changes could stimulate automakers to focus on producing gasoline and diesel vehicles while reducing pressure to develop electric transport. Such steps have been anticipated for a long time.
Reaction of Auto Giants and Denial of Compensation
Companies such as Ford, Stellantis, and General Motors have expressed support for the new rules, calling them “sound.” However, it should not be expected that the government will reimburse them for the billions invested in electric vehicles made under the previous, stricter standards of the Biden era.
During the announcement of the new standards at the White House, a Detroit Free Press journalist asked President Trump whether automakers deserve compensation for these investments, given that they were made in anticipation of continued government support for electric vehicles.
“No, I’m not going to do that,” President Trump quickly replied. “No, no, I won’t let them recoup the costs, they’ll be fine anyway. You know how they recoup? From now on, everything will be very good for them.”
Trump Explains Changes with Tariffs
During the same presentation, the president stated that it is precisely due to the tariffs he implemented that companies like Stellantis, Ford, and GM are returning production to the United States.
“The people here from Stellantis, Ford, and General Motors, great companies… they wouldn’t be here today if it weren’t for our tariffs,” Trump asserted. “They would be building their plants in Mexico and other places. They are leaving Mexico and Canada. They are leaving because they were ripping off our country, they were taking our business. And now, because of the tariffs, they are all coming back, and that’s great.”
Position of Ford’s Leadership
Ford CEO Jim Farley stated that the previous CAFE standards “were completely detached from market reality,” claiming that the company was “forced to sell electric vehicles and other vehicles.”
He noted that Ford wants to give customers freedom of choice, saying: “We have many electric vehicles and many hybrids at Ford, but now customers get a chance to choose what they want, not what we impose on them.”
Farley added that easing the requirements will allow the company to “offer greater availability of our popular models, and we will be able to launch new American-made cars that will be more affordable thanks to this rule change.”
These changes are occurring against the backdrop of a global transformation of the automotive industry. The Trump administration’s decision could significantly impact the pace of electrification of the U.S. vehicle fleet and the competitiveness of American automakers on the international stage, where many countries, on the contrary, are strengthening environmental standards. The question of the long-term consequences of such a regulatory reversal, especially for achieving climate goals, remains open. The positive reaction from auto industry leaders indicates their readiness to adapt to new conditions while preserving their own developments in the field of electric vehicles and alternative technologies.
