The Alliance for Automotive Innovation, which represents most major US automakers and suppliers, has urged the Trump administration to rescind Greenhouse Gas (GHG) vehicle emissions limits designed to compel a rising share of electric vehicles (EVs).
In a filing with the Environmental Protection Agency (EPA), the group said legislation signed by President Donald Trump in June will increase the effective price of EVs and could lead to a near-term decline in EV market share.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The Alliance represents General Motors, Toyota Motor, Volkswagen, Hyundai and other major automakers.
The group argued that the rules finalised last year under President Joe Biden are no longer feasible.
“The 2027 and later standards are simply not achievable in light of significant market, charging infrastructure, supply chain, affordability, and other challenges as well as recent policy changes enacted,” the alliance said.
The 2024 Biden rules aim to cut passenger vehicle fleetwide tailpipe emissions by nearly 50% by 2032 compared with 2027 projected levels. The EPA forecast between 35% and 56% of new vehicles sold between 2030 and 2032 would need to be electric.
The filing noted that on 30 September the $7,500 EV tax credit expires and warned that “a significant portion” of automakers may lose a battery production tax credit for EVs typically worth $3,000 per year next year under the law.
“This harms not only the automotive manufacturers that have spent hundreds of millions of dollars investing in electric vehicle technology, but also the entire supply chain that has supported these initiatives,” the group said.
Separately, in July the EPA proposed rescinding the long-standing finding that greenhouse gas emissions endanger human health, a move that would remove the legal foundation for US greenhouse gas regulations and end current limits on greenhouse gas pollution from vehicle tailpipes.
Democrats in Congress and environmental groups have called on the EPA to drop that plan and retain the rules.
Automakers said the EPA should still rewrite the Biden rules, arguing they “still need to be revised to feasible levels to provide certainty for the industry.”
The alliance added that “such a contingency plan will be critical if motor vehicle GHG standards are retained or reinstated in some way.”
