The Next Four Years in the American Automotive Industry

The American automotive industry regulation and requirements tend to follow a path that leads directly to the White House.

The American automotive industry under Democratic Presidents is more regulated and environmentally conscious than when a Republican President is in office. When a Republican holds the Executive Office, global supply chains are impacted, which makes things more difficult for automakers. Regardless of the party in the White House, the auto industry has to face challenges.

Going Forward What Should We Expect

Coming out of the recent election, it appears the Democratic party will be seated in the Oval Office, which means the American Automotive Industry will face stricter regulations and a push for more EV models than over the past four years. While the industry recently enjoyed deregulation, tariffs that were put in place impacted the industry negatively until they were lifted. The goal of having more Americans do the jobs needed was a good one but slightly failed because the auto industry is a global business.

Will There Be More Government Support?

Because the incoming administration will likely push for more EV models than ever, we should expect more government support in the auto industry. The platform of the Democratic party shows us that the environment is one of the top four concerns of the party. Electric models are certainly more environmentally-friendly, which may give a renewed level of tax credits and implementation of national fueling standards across the country.

The Federal Direction Will Align with California

Going forward, the American automotive landscape will likely align more with the California Air Resources Board than ever before. This means sales of more hybrid and electric vehicles, the potential of bringing back the Car Allowance Rebate System along with adopting more efficiency and emissions standards for all vehicles. Changes to technology and emissions will likely increase the price of vehicles going forward.

Change Isn’t New in the American Automotive Industry

Take a look back at the history of America and the various Presidents that were in office. Over the past century, the auto industry had to change and adjust many times to ensure compliance with what each new administration chose to bring to the conversation. Because of this, automakers already have predicted the upcoming changes and have a plan to remain in compliance and continue to build vehicles that we want to enjoy when we drive.

Not Much Will Actually Change

We could discuss the different party politics of the American automotive industry all day, but the fact is, not much will actually change when a new president takes office in January. Many automakers already had a plan in place to create several hybrids and EV models for the next several years. Most of what will happen will be business as usual for automakers, with only minor changes to meet emission standards and allow easier charging around the country.

As we come closer to the changing of the guard in the Executive Office, we prepare to see the changes that will impact automakers around the country.