GM, Ford, Toyota and other automakers have urged Trump to preserve tax breaks for electric cars and support self-driving cars

Automakers in the US have asked US President-elect Donald Trump not to remove tax breaks for electric cars when he takes office in January 2025. Volkswagen, GM, Ford and other companies have invested billions of dollars in developing electric cars and adapting plants to produce them and are concerned they will become uncompetitive.

This became known from a letter to Trump from the industry group Alliance for Automotive Innovation, sent on 12 November. The content of the letter was read by Reuters.

Here's What We Know

Alliance for Automotive Innovation also expressed concern about current environmental regulations for cars, especially in California. According to the group, these regulations do not take into account market realities and raise costs for consumers.

While the manufacturers did not specify exactly how they want to change the regulations, the letter states that they support "reasonable and achievable" emissions standards. That said, Trump's transition team has yet to comment.

The letter, signed by Alliance CEO John Bozzella, also cites unfair competition from "heavily subsidised electric vehicles and technologies that China exports". It is also mentioned that China is actively developing a regulatory framework to support the introduction of self-driving vehicles.

Another request for Trump is to reconsider rules passed in April that require almost all new cars to have automatic emergency braking systems by 2029. Meeting such requirements with current technology is "virtually impossible," according to the alliance.

Why it matters.

Earlier this month, Reuters reported that Trump's team plans to eliminate a $7,500 tax credit for electric car purchases. The move could further slow down the U.S.'s already difficult transition to electric vehicles.

The planned policy is likely in line with Trump's campaign promise to "end the electric vehicle mandate." While no such mandate exists, the Joe Biden administration has introduced regulations that effectively require 35 per cent of vehicles produced in the US to be electric by 2032, and calls for a phase-out of internal combustion engine vehicles in favour of electric cars.

Source: Reuters