According to Caixin News on November 22 (Editor: Ma Lan), Trump, a staunch supporter of gasoline vehicles, promised to eliminate tax credits for the electric vehicle industry after officially taking office as the president of the usa, a move that was endorsed by Tesla CEO Elon Musk but sparked collective outcry from other practitioners.

In a recently published joint letter, major lobbying groups in the auto industry hope the Trump administration will maintain the electric vehicle incentives established under Biden, emphasizing that these policies will keep the usa competitive globally while creating good jobs.

The American Automotive Innovation Alliance, which drafted the joint letter, represents the three major auto manufacturers in the usa — Ford, general motors, and Stellantis — as well as other overseas companies selling in the usa. They call on Trump to maintain the stability and predictability of automotive-related emissions standards but also agree on the need to establish reasonable and achievable emissions regulations to loosen the overly strict requirements of the Biden administration.

The alliance's president and CEO, John Bozzella, stated the hope that the Trump administration will establish reasonable and achievable federal and state emissions regulations that align with current market realities and support consumers in purchasing vehicles that meet their individual needs.

Flattering but realistic.

The Environmental Protection Agency previously mandated that auto manufacturers must reduce carbon emissions by 2032, achieving this goal through the sale of more electric vehicles. However, Trump and his team had threatened to overturn this idea on his first day in office.

In its joint letter, the auto industry in the usa clearly left a lot of room for maneuver for Trump, such as revisiting emission rules to show the industry's willingness to follow Trump's policies. At the same time, Bozzella also supported the establishment of a regulatory framework for self-driving cars in the usa to align with Musk's lobbying efforts.

As the hotshot of Trump's camp, Musk has been deploying Tesla's self-driving car business and plans to sell self-driving taxis, Cybercabs, by 2026. Trump's team had previously discussed relevant regulatory frameworks, which would also be the first set of regulations for self-driving cars in the usa.

In addition, the joint letter has drawn attention for its flattering wording. In the letter, Bozzella warmly congratulated Trump on his victory and claimed to agree with his views on the auto industry, emphasizing that consumers should be able to choose their autos, in contrast to the Biden administration's insistence that consumers purchase electric vehicles.

Stephanie Brinley, an analyst at S&P Global Mobility, stated that regulations are very important, and even more critical is the stability of those regulations, with the worst-case scenario being changes every four years.

She pointed out that many auto manufacturers have already planned their vehicle models years in advance due to the Biden administration's regulations, and under such circumstances, the willingness of the auto industry to revise certain regulations has shown sincerity.

However, many companies remain uneasy, particularly some auto giants that 'betrayed' Trump during his first term over emission standards. Ford, Volkswagen, Honda, and BMW had privately agreed to California's emissions reduction agreements, which seemed to have left Trump feeling resentful.

Auto lobbyist Christopher Grundler revealed that the three major automakers now need to submit to Trump again, returning to his side and maintaining a friendly relationship.

Republican strategist and EV Policy Project CEO Mike Murphy believes that the efforts of auto manufacturers may pay off, especially if the message conveyed is to repair it rather than end it, Trump might be receptive.