Policy shifts shake up automotive landscape in 2025
President Donald Trump moved quickly to sign executive orders that could have widespread effects on automakers. The orders made Trump’s campaign promises to curtail the transition to battery electric vehicles and funding to grow charging infrastructure a reality. Other action by the president also signaled a shift on emissions policy, which could keep gas and diesel-powered vehicles on U.S. roads longer. It’s clear that automakers were preparing for sweeping changes, including tariffs, which could have a range of impacts on imported vehicles and automotive parts, particularly those sourced from Mexico and Canada-based suppliers.
Implemented or not, Trump's 25% tariff threat is challenging the auto industry
DETROIT — As President Donald Trump’s threat to impose 25% tariffs on imports from Canada and Mexico as soon as Saturday looms, the global automotive industry is collectively holding its breath. For months, automakers have been taking a “wait-and-see” approach to the Trump administration’s potential tariffs. Trump promised to impose duties upon his inauguration this month, then he set a target date of Feb. 1 for levies on the key U.S. trading partners.
Consumer car buying satisfaction reaches record high in 2024
New vehicle consumers in 2024 praised improved online shopping tools and transparent pricing, a Cox Automotive study found. With the pricing volatility and vehicle supply issues of the pandemic largely in the rearview mirror, consumers now use online resources to make the car buying process smoother and more efficient, the study found. Consumer satisfaction with the new car purchasing process reached a record high of 75% in 2024, the study found.
Zeldin is confirmed to lead EPA. What’s next?
Lee Zeldin has been confirmed as administrator of the U.S. EPA. The Senate confirmed the appointment 56-42 on Wednesday. Zeldin, a former member of the U.S. House of Representatives from 2013 to 2023, will take the helm of an agency that the Trump administration has vowed to take in a different direction than the Biden administration. Zeldin’s supporters see him as the right fit for prioritizing economic growth while still protecting the environment. Democrats who opposed the nomination say Zeldin is too aligned with oil and gas company interests that could exacerbate climate change. Automakers are also weighing the administration’s actions to ease emissions rules and pause disbursement of federal funding for charging infrastructure, which could impact adoption of electric vehicles.
Mitsubishi weighs decision to be part of Honda, Nissan merger
As merger talks continue between Honda Motor Co. and Nissan Motor Corp., uncertainty surrounds whether Mitsubishi Motors Corp. will also be a part of that combination. A Jan. 24 news report said that the automaker was considering withdrawing from the merger talks. However, Mitsubishi in a statement said it did not release any information about its future involvement and indicated it is “studying various options and no conclusion has been reached.” While it’s still unclear if Mitsubishi will be part of the combination, the merger may benefit both Honda and Nissan. Sharing resources could help each automaker remain competitive in a evolving global auto market where China is becoming a major force, experts say.
GM expects to save $1B by shutting down Cruise robotaxi
General Motors expects shutting down its Cruise robotaxi unit will lead to $1 billion in annual savings, CEO Mary Barra said during a call with analysts on Tuesday. The move, however, doesn’t mean the automaker is abandoning autonomous technology, the CEO said. Instead, GM is shifting its strategy to advance its development of personal vehicles to capitalize on the popularity of the Super Cruise hands-free driving system. “We see it being consumer demand driven,” Barra said. “When people arrive at their destination after using Super Cruise, they’re more rested, which is why 80% of our customers say they either wouldn’t buy a car without it or they strongly would desire it to be on their next vehicle.”
NHTSA launches safety probe of Ford’s BlueCruise
The National Highway Traffic Safety Administration’s Office of Defects Investigation has opened a safety probe of Ford Motor Co.’s BlueCruise automated driving feature after the agency received notice of two fatal collisions last year involving Mustang Mach-E vehicles. In both of the accidents, a Mustang Mach-E collided with a stationary vehicle while traveling over 70 mph on a “controlled-access highway” at night with BlueCruise engaged. Analysis of data from the vehicles found that neither the driver or BlueCruise system applied the vehicle’s brakes prior to impact, according to the NHTSA.
Why this China-made BYD Shark pickup is drawing attention in the global truck market
DETROIT — There’s a Shark circling one of the greatest profit pools for American automakers globally, as Chinese automaker BYD Auto expands its reach and product portfolio with a pickup truck. Without the vehicle’s branding badge, the BYD Shark could pass as an American-made product. In many ways, it looks like a smaller pickup from Ford Motor. The China-made truck features uncanny exterior resemblances to a Ford Explorer mixed with the popular F-150 — part of the Ford brand’s best-selling truck lineup in the U.S. for 48 years.
Georgia Rivian plant to resume construction
The Department of Energy announced Jan. 16 that it has closed a $6.57 billion loan to electric vehicle manufacturer Rivian for an electric vehicle plant that previously had been put on pause. The loan will support the construction of the 9 million-square-foot manufacturing facility near the city of Social Circle, Georgia, near Atlanta. The project anticipates will create 2,000 full-time jobs through construction, according to the announcement. Rising costs caused the firm to pause construction of the plant in the spring of 2024. The EV manufacturer — which selected Chicago-based Clayco as the general contractor — said at the time it remained committed to the project.
Sean Duffy confirmed as Transportation Secretary
The U.S. Senate has approved the nomination of Sean Duffy as secretary of the Department of Transportation. The 77-22 confirmation vote on Tuesday springs the former Wisconsin congressman into the helm of a department overseeing agencies that fund transportation infrastructure projects and regulate safety in the automotive, aviation, rail and trucking industries. “Throughout his congressional service, Secretary Duffy was a steadfast supporter of hardworking truckers and the work that they do to deliver the nation’s freight,” American Trucking Associations CEO and President Chris Spear said in a statement. “We look forward to building on our partnership with Secretary Duffy in the years ahead to modernize our infrastructure and increase the resiliency of our supply chain.”