Trump taketh away . . .
As discussed the other day, Trump’s tariffs are imposing major costs on U.S.-based automakers — even when the cars they sell in America are made in America — thanks to heavy tariffs on steel and aluminum.
Trump giveth . . .
On the other hand, the scrapping of federal electric-vehicle diktats (so long as California-style state mandates are, when all the litigation is over, successfully eliminated) is a tremendous opportunity for automakers.
“To build what customers really want is going to be a tailwind for us,” said Ford CEO Jim Farley, citing what he called a “multibillion-dollar opportunity” over the next couple of years.
This Jim Farley? The Jim Farley who said this during the autopen era:
For me, and for millions of Americans, electric vehicles are removing daily hassles and reminding us why we love to drive. If you want to have a blast behind the wheel, take a Mustang Mach-E Rally out on a dirt road.
Electric vehicles are not for everyone and every job. But as the CEO of a major automaker, I feel compelled to tell customers the truth about electric vehicles amid all the disinformation and misunderstandings.
Gotta say what you gotta say, I guess, but now Ford has the opportunity to build customers what they really want.
Yes, build customers what they really want.
Good plan!
Axios:
GM CEO Mary Barra had a similar message, calling Trump’s regulatory policies a “huge opportunity” that allows the automaker to keep selling profitable trucks and SUVs while EV demand slowly builds.
That’s the right way to go with EVs: Roll them out in response to (genuinely) promising areas of customer demand, and if there is no demand, move on.
Stellantis, meanwhile, is bringing back muscle cars and Hemi engines now that it’s no longer obliged to produce EVs and fuel-sipping engines. “And this will mean to us a lot of additional profit,” said CEO Antonio Filosa, trying to steer a turnaround.