Auto industry’s shift toward EVs is expected to go on despite Trump threat to kill tax credits

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Trump condemned the federal tax for EV buyers — up to $7,500 per vehicle — as part of a “green new scam” that would devastate the auto industry.

FILE – Unsold 2024 electric Lyriq utility vehicles sit in a row outside a Cadillac dealership on June 2, 2024, in Lone Tree, Colo.

Yet tax credits or not, auto companies show no intention of retreating from a steady transition away from gas-burning cars and trucks, especially given the enormous investment they have already made: Since 2021, the industry has spent at least $160 billion on planning, designing and building electric vehicles, according to the Center for Auto Research.

Jonathan Chariff, an executive at Midway Ford in Miami, one of the company’s top EV-selling dealers, said he thinks ending the tax credits would severely hurt sales. The credits reduce monthly payments, he noted, making an EV closer in price to a gasoline counterpart. Asked about the president-elect’s opposition to EV tax credits, Trump’s transition team would say only that he has “a mandate to implement the promises he made on the campaign trail.”

“Cutting the EV tax credit makes it harder for the battery factory in their town to sell their product,” he noted.

 

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