On January 20, 2025, President-elect Donald Trump will take the oath of office as our 47th president of the United States. He will gain an automobile industry that has suffered greatly in recent years. There are many reasons for this drop, including the misplaced economic policies of the Biden administration, Foreign industry exploitation and exploitation, and trade deals and regulations that crippled American auto manufacturers.
Just how awful are points? Well, Stellantis ( the parent company of Dodge, Chrysler, Jeep, and Ram ) reported a 48 percent profit decline in the first half of 2024, followed by a 27 percent drop in the third quarter. The Environmental Protection Agency ( EPA )’s ( EPA ) astronomical fuel-efficiency fines have forced them to discontinue their consumer-favorable Hemi V8 engines and to invest billions in developing electric vehicles ( EVs ) in which brand loyalists are uninterested. From January to June of 2024, Ford reported that their EV division lost$ 2.5 billion ( about$ 48, 000 per vehicle sold ). GM stated that it is working to reduce losses on electric vehicles by$ 2 billion to$ 4 billion in 2025 as opposed to$ 2 billion in 2024.
Some of the nation’s largest automakers does not live this government-created crisis, but collapse of the market can still be stopped. In his second term, President Trump does take some of the methods listed below to restore the American car market.
Close the Regulatory Stranglehold on Car Companies
The best mechanical minds in the world work in the U.S., but the extremely stringent regulations in Washington, D.C. have hampered the business. Former New York Rep. Lee Zeldin is being appointed as head of the EPA, an company that could have a significant impact on saving our automakers.
For years, California has attempted to govern fuel economy and pollutants, separate from the national government’s requirements. Since it has an impact on the sales of vehicles in the rest of the nation, the mind of the EPA does create and pass legislation that would require that Congress pass. California’s latest policy is absurd, costs our manufacturers hundreds of millions of dollars, and needs to end.
Next, the EPA should shift its attention to fixing the stifling Corporate Average Fuel Economy ( CAFE ) standards. Automakers now have a choice: sell cars with internal combustion engines in response to consumer demand and pay significant regulatory fines to the federal government, or spend significant sums of money to comply with national fuel economy standards and see sales decline.
The majority of manufacturers were able to accomplish this and avoid excessive charges by setting the 2015 CAFE conventional at 35 percent, which appears to be the lovely place. The EPA may stick to the 2015 normal without any phased increases and stick to it. This would give American automakers a set of standards that would allow them to continue to find ways to improve the quality and efficiency of their products while being guided by common demand and organic innovation rather than the threat of government fines or regulations.
China is Not a Competitor, They are a Hazard
At an disturbing frequency, the Chinese are taking steps to establish a dominance in the car industry in Asia, Latin America, and parts of Europe, and they have their sights on the United States as well. After a recent visit to China, the CEO of Ford, Jim Farley, called the fall of Taiwanese EV makers an “existential danger” to the U. S. car market.  , His Western rivals have echoed similar views.
How did China transition from darkness to “existential danger” in such a short amount of time? China has for decades required all non-Chinese businesses to register to a “forced engineering transfer” in order to sell products on the Chinese market, forcing automakers to do so for free.
They have even manipulated first-world states to sign onto “zero pollution” climate policies, such as the Paris Climate Accords, which require wealthier nations to spend$ 300 billion to poorer countries, including China, to change to” clean and green” power. China conveniently happens to control , 70 percent , of the world’s rare earth mining and nearly 90 percent of the global rare earth processing capacity used to power electric vehicles.
The Chinese government then subsists on the overall cost of their vehicles so that they can be sold for much less than their competition, effectively putting any rivals out of business. It’s evil and effective at the same time, and America has allowed it to happen.
So, what can be done? For starters, Congress should make it a crime for any U. S.company or individual to share their intellectual property with Chinese-based companies or individuals. Any foreign company that works with an American company that rents its intellectual property to China should also be subject to fines or a ban on doing business in the country. Additionally, it is necessary to impose a ban on Chinese-produced and manufactured electric vehicles ( including Chinese-owned software and technology ).
The next U.S. trade representative should set the issue at the top of any negotiations with other nations, including those that would include restrictions on China’s mining rights on their lands, a ban on China’s share of intellectual property, and a ban, or at least tariffs, on Chinese-made cars sold in that nation. These actions would significantly lessen China’s ability to influence both domestic and international markets.
Competitors but also Allies
Europe, Japan, and South Korea are competitors but also allies. They ought to begin acting in this manner. The emerging Chinese auto industry poses an existential threat not only to the U. S. but also to Europe, Japan, and South Korea’s automakers, workers, and independence. A strengthened U.S.-allied alliance would act as a buffer against the Chinese threat while also supporting our respective auto industries.
The first step is recognizing that trade practices should be reciprocal. Most European countries, for example, charge a 10 percent tariff on U. S. vehicles sold in their country, while the U. S. only charges 2.5 percent. The next U.S. trade representative should work to have our European allies lower their tariffs to match the rate offered by the United States, or have them both completely repeal them.
The myriad of different safety standards set by each country are yet another obstacle to car sales between our countries. Standardizing safety requirements between countries would drastically reduce costs, speed up development, increase competition, and allow more profitable niche vehicles to be created, while finally opening up more foreign markets to U. S. vehicles.
Additionally, the United States and our allies in Europe and Asia should set the standards for the environmental impact information on EV window stickers, including the country where the rare earth materials were extracted, the effects of manufacturing and recycling the battery, and the emissions level of an average nightly 12-hour charge.  ,  ,
Drill, Baby, Drill
President-elect Trump has pledged to immediately increase America’s capacity for oil drilling and refining, helping to make the United States energy independent and dominant globally. That means reversing the Biden administration’s decision to end Keystone XL Pipeline and oil exploration in the Arctic National Wildlife Refuge as well as approving leases for oil and gas exploration right away.
Why is this important for the auto industry? Under the Biden administration, heavy-handed environmental policies, the cancellation of already approved oil drilling projects, and unstable relations with the Middle East and Europe led to a dramatic increase in oil prices. This stifled the growth in inflation during Biden’s administration, which slowed up sales of new cars. It is more crucial than ever for America to provide its citizens with abundant oil and gas as the American public’s strong preference for internal combustion engines continues in the face of competition from EVs.
Being “energy dominant” means that the United States can supply our allies with oil at a price that is likely to be more affordable than the oil-sipping regimes they currently purchase from. This would give Europe a chance to defend easing its unattainable EV mandates and allowing more American car sales, as well as defunding regimes that use oil to fuel terrorism and war.
appoint an” Auto Czar”
These actions would require broad policy changes and negotiations. Trump ought to appoint an “auto czar” with direct reporting to him and control over coordination with all relevant organizations. This appointee would also meet with automakers ‘ leaders and employees to get ideas for streamlining regulations and expanding manufacturing capabilities in the U.S.
Due to the Biden administration’s policies, which had put the auto industry in a weakened and desperate position, a sizable portion of American auto workers and a large portion of Detroit’s voters in 2024 chose to support President Trump. They felt strongly that Trump could save the American auto industry, their jobs, and their way of life. A clear and meaningful decision that acknowledges voters ‘ concerns and puts the auto industry back on the right track would be appointing an auto czar.
The U. S. auto industry is at a tipping point. Another term as president for maintaining the status quo would lead to the bankruptcy and dissolution of at least one, or perhaps two of the Big Three automakers, with China eagerly waiting to fill the void. Trump has the chance to take bold steps to change the direction of the auto industry. Our country’s workers, future, and indeed independence hang in the balance, but the roadmap laid out here would help put America’s automakers back in the driver’s seat of innovation, success, and greatness.
The California Lutheran University’s Matthew Craffey, the chairman of the Log Cabin Republicans, graduated with a bachelor’s degree in political science from California Lutheran University.
