Gas guzzlers making comeback amid Trump's push to exile EVs

Daily Mail​

7 hours ago

American gas-powered vehicles, including the country's iconic pickup trucks, will not vanish forever as drivers have turned their backs on EVs. The surge in gas guzzlers is due to Donald Trump's push to exile EVs so the nation's auto industry can thrive - especially in Detroit, the 'car capital' of the world. US automakers are going back to their roots after switching their focus to electric vehicles that first became popular in 2010, and gained more notice in recent years.
Although EVs are meant to be better for the planet, car manufacturers have had to use more resources to keep up with the fuel-efficient standards. Ford, a top US car brand based out of Detroit, is already gearing up for the shift and changing its lineup by adding more commercial vehicles and large SUVs and taking out some EVs. 'This is a multibillion-dollar opportunity over the next couple of years,' Jim Farley, the Chief Executive of Ford Motors, said in a call with analysts last week.
Trump's car policy changes came after he announced a 25 percent tariff on imported cars that came into effect in April. Most electric cars sold in the US are already built domestically, meaning they won't be affected by the tariff. Still, there are costs associated with EVs that companies have to front. Because of the push to move back to gas cars, the auto industry is looking up because the fees that come with EVs will start to lower.
With EVs, the industry has to pay regulatory credits and fuel-economy rule-violation fines. Ford, GM and Stellantis - a Dutch automaker - have shelled out about $10 billion on regulatory credits and fuel-economy rule-violation fines since 2022, according to The Wall Street Journal. Although General Motors has hoped to get rid of internal combustion engines by 2035, the company has since changed its tune and told its investors there are benefits to keeping gas cars in the lineup.
During a recent call, Stellantis, who owns car companies like Jeep and Toyota, highlighted how Trump's Big Beautiful Bill allows them to add more gas-powered vehicles to the mix on dealership lots. 'This will mean to us a lot of additional profit,' Antonio Filosa, the CEO of Stellantis, who started the position in June, said. In a July 29 memo reviewed by WSJ, Stellantis wrote that they would prefer to satisfy its customers demands over anything.
'In these uncertain times of heavy competition and tariffs, there are auto workers all over the world who would happily trade their uncertainty for our customer demand and company commitment,' the company stated. In recent months, Stellantis, which also owns Ram, has been dealing with part shortages. Just last week, the automaker had to add shifts to a factory in Michigan in a bid to speed up production for its famed Ram 1500 trucks.
Although the set back was not specifically related to the regulatory charges, Stellantis will thrive from the surge in gas cars by not having to pay millions for fines and fuel-economy rule violations. In order to see how the new trend will affect the company, Stellantis plans to keep an eye on the production conflict at the Ram Michigan factory regularly. Companies aren't the only ones excited about the change, as dealerships are also on board.
'Americans do like buying giant vehicles,' Adam Lee, chairman of Maine-based Lee Auto Malls, told the outlet. 'They're going to see how many more giant SUVs they can pump out, because they sell a lot of them and make a lot of money on them.' Despite being excited, Lee said he hopes some EVs will still remain.
'Otherwise, we're going to find out we're the only country in the world not embracing fuel-efficient vehicles and EVs,' he said. With the change, several big brands have back-pedaled with their EV plans as they anticipate the shift. Mary Barra, the CEO of GM, originally planned to make the company fully EV in 10 years, but now she is mulling the idea that gas-powered cars could come back into play.
With that, her company continues to roll out EV cars, as she thinks the change will actually give GM a chance to sell more of those vehicles. 'It also gives us the opportunity to sell EV vehicles,' Barra stated while on a recent earnings call. 'Excuse me, ICE vehicles, for longer and appreciate the profitability of those vehicles.'