In a dramatic shift from traditional industry-regulator dynamics, America’s largest automakers are quietly strategizing to preserve Biden’s EV mandates despite Trump’s promises to eliminate them, according to a New York Times report.

The High-Stakes EV Transition

The auto industry finds itself in an unprecedented position – defending regulations they once resisted. Ford, GM, and Stellantis have jointly invested $146 billion in EV development, creating dozens of battery plants across the US. The current rules require about 56% of new vehicles to be electric by 2032, with another 16% as hybrids, up from current levels of 9% and 11% respectively.

“Given their track record with Trump, I don’t know how much sway the autos will have in terms of the decision the president makes,” warns Thomas J. Pyle, president of the American Energy Alliance.

Complex Political Dynamics

The relationship between automakers and Trump is complicated by past conflicts. Four major manufacturers – Ford, Volkswagen, Honda, and BMW – secretly struck a deal with Califórnia in 2019 to follow stricter emissions standards, prompting Trump to launch an antitrust investigation. Later, Stellantis and Volvo joined this agreement.

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GM’s Political Balancing Act

Mary Barra, GM’s CEO, has demonstrated particular skill in navigating changing political winds. After initially supporting Trump’s standards rollback, she quickly pivoted to support Biden’s EV agenda. In a telling move, GM is now planning to provide about 250 vehicles for Trump’s inauguration VIPs, showing their effort to rebuild bridges.

Tesla’s Unique Position

While traditional automakers scramble, Tesla stands apart. The EV pioneer earned $2.1 billion from emissions credits in just nine months of 2024 – representing 43% of its net profit. Elon Musk, despite being a Trump adviser, appears uninterested in preserving the regulations, stating, “we should end all government subsidies, including those for EVs, oil and gas.”

Manufacturing and Jobs at Stake

The investment landscape has transformed dramatically since Trump’s first term. The US has grown from fewer than six EV battery plants to over three dozen today. Many of these facilities are in states Trump won in 2024, including Ohio, Tennessee, Georgia, and Carolina do Sul.

Industry’s United Front

John Bozzella, representing 42 car companies through the Alliance for Automotive Innovation, emphasized in a November 12 letter to Trump that the industry needs “stability and predictability in auto-related emissions standards” to remain competitive globally.

Strategic Concerns

Auto industry analysts worry about competitive implications. “You don’t want one automaker sticking to making the cheapest fossil fuel cars to sell domestically, while the other automakers are trying to fazer these investments to compete globally,” explains Stephanie Brinley of S&P Global Mobility.

Risk to Future Planning

The situation is particularly challenging because automakers plan vehicles years in advance. Cars planned for 2028 are already in development, designed under the assumption that current EV rules will remain in place.

EVXL’s Take

The auto industry’s unprecedented defense of environmental regulations marks a historic shift in American manufacturing. Looking at Ford e GM’s massive investments in EV technology, it’s clear that manufacturers see electrification as crucial for remaining competitive globally, regardless of domestic political shifts. The industry’s stance suggests that the EV transition has reached a point of no return, driven by market forces and global competition rather than just regulation.

What do you think about automakers defending EV regulations? Share your perspective in the comments below.