The auto industry faces continued uncertainty amid Trump changes

The auto industry will continue to face uncertainty as the Trump administration moves to roll back regulations favoring electric vehicles, an industry analyst said Monday.

“All this uncertainty is just not good for the auto industry,” said Stephaine Brinley, deputy director of S&P Global Mobility, during an Automotive Press Association webinar.

Trump last week said he has revoked what he called the “EV mandate,” reversing stricter fuel economy standards introduced by his predecessor, Joseph Biden.

“Today my administration is taking historic action to lower costs for American consumers, protect American jobs, and make buying a car much more affordable for countless American families — and safer, too,” Trump said at a White House event.

Brinley, during Monday’s webinar, said things can be more complicated.

For example, he said, average vehicle prices may fall if fewer electric vehicles are produced. This is because EVs are more expensive than cars and trucks powered by traditional internal combustion engines.

At the same time, Brinley said the industry may still be looking to be more fuel efficient. Instead of going full speed on EVs, automakers can emphasize hybrids, which combine gasoline and electricity.

“We’re going to see a lot more hybridization coming to market,” Brinley said during the webinar. “We will have a mixed propulsion system for much longer.”

The industry will continue to be influenced by consumer preferences, the analyst said. In the US market, buyers want larger vehicles where the driver sits high. “It’s going to be hard to get consumers to sit down again,” Brinley said.

For now, automakers that build and design vehicles for the U.S. market will have to cope.

The auto industry under the Trump administration has been kept “on a rollercoaster,” the S&P analyst said. “It was constant change.”

Automakers, he added, need to “understand what you want your business to do.”