Concerns over potential changes in the auto industry
President Donald Trump has once again taken the role of commander in chief. Trump addressed the nation after his inauguration and laid out his plans for the coming years.
One of Trump's often-repeated promises is to end what he calls the "EV mandate." While no such mandate actually exists federally, lots of incentives to boost the industry do.
Sam Abuelsamid, Telemetry Insights vice president of market research, said laws surrounding EVs aren’t as simple as one mandate.
“California and a few other states do have an EV mandate, but nationally there has never been an EV mandate. What we do have are fuel economy and emission standards that get progressively tighter as we go forward in time,” said Abuelsamid.
So how will changes to the auto industry impact the “Voltage Valley”? Abuelsamid told 21 news any change to the auto industry could have lasting effects.
Some of the expected changes are an increase in domestic oil and gas production, a change in greenhouse gas emissions standards and removing electric vehicle tax incentives.
For places like Ultium Cells in Lordstown, these changes could have devastating effects. Abuelsamid worries the loss of EV tax incentives with stop people from purchasing electric vehicles.
“If those tax credits go away, those EV's become more expensive. GM is probably going to sell fewer of those because people can't afford to buy them, and as a result you're probably going to have job losses in Ohio,” said Abuelsamid.
Because the auto industry takes years of planning and investing, one of the biggest concerns is the uncertainty on what laws will be changing.
“It takes years to develop new products, to build factories, and the thing that they hate is uncertainty, not knowing what the rules are going to be 5, 10 years from now.”
Regardless of what changes come to the auto industry, Abuelsamid feels the EV sector will continue growing.