U.S. automakers have reportedly begun lobbying to prevent the phased elimination of electric vehicle (EV) tax credit programs under the Donald Trump administration, Bloomberg News reported on the 11th (local time).
Bloomberg, citing anonymous sources, reported that automakers such as General Motors (GM) and Ford, along with lobbying groups, are urging the Trump administration and Republican lawmakers to maintain the EV incentives established under the Inflation Reduction Act (IRA) passed during the Joe Biden administration.
Sources said companies are considering a three-year grace period to allow time to adjust their operations if the Trump administration withdraws EV incentives.
Bloomberg noted it was unclear whether President Trump was favorable to such a plan or if automakers could secure enough Republican votes to maintain the EV incentives.
Currently, Republican-leaning states such as Ohio, South Carolina, Georgia, and Alabama are home to a large number of EV and battery plants, earning the nickname "Battery Belt." According to the U.S. Electric Vehicle Jobs Alliance, approximately $167 billion has been invested to create 200,000 EV-related jobs across 12 states.
Automakers have invested billions of dollars to build EV and battery manufacturing plants in the U.S., supported by IRA subsidies that promote EV production and demand. However, if President Trump, who has been critical of EV expansion, cuts these subsidies, such investments risk being stranded. Trump has criticized the Biden administration's Green New Deal as a "green scam" and EV incentives as "EV mandates." On his first day in office, he signed an executive order rescinding the EV mandate.
Automakers argue that a multi-year phased elimination of EV subsidies would provide time to reduce EV and battery prices, allowing companies to lower prices and increase sales without government assistance. They also emphasize that government support helps U.S. automakers build domestic supply chains to better compete with China.
Jim Farley, CEO of Ford, said at an automotive industry conference hosted by Wolfe Research in New York on the same day, "We have already invested capital," adding, "If the IRA is repealed, many jobs will be at risk." He also revealed plans to visit Washington, D.C. this week to meet with lawmakers and officials, marking his second visit in three weeks.
Bloomberg reported that GM CEO Mary Barra recently met with President Trump to discuss tariffs and other policies affecting the automotive industry.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
