October 20,2020

According to Reuters, automakers are gearing up for tough new vehicle emissions rules and policies favoring electric vehicles if Democratic presidential candidate Joe Biden wins the White House.

Biden and U.S. President Donald Trump both need the votes of auto workers in Midwestern swing states such as Michigan and Ohio, and both say they want automakers to create more auto jobs in the United States, rather than Mexico or China.

From there, Trump’s and Biden’s policies for autos and transportation diverge, presenting automakers with very different sets of risks and rewards. If elected, Biden is expected to quickly reinstate the legal basis for California’s zero-emission vehicle rules and begin the process of reversing the Trump administration’s decision to ease fuel efficiency and carbon emission requirements through 2025.

Automakers could also face sharply higher penalties for failing to meet fuel-efficiency requirements. The Trump administration rolled back those penalties, which the industry said saved at least $1 billion in annual compliance costs, but a federal appeals court in August reversed the administration action.

However, Biden’s positions offer the auto industry some offsetting gains.

Under Trump, the White House rejected new tax credits for electric vehicles while making it easier to sell gas-guzzling SUVs.

Biden promises new tax incentives including rebates to buy EVs and a dramatic expansion of charging stations for electric vehicles – policy measures automakers have long advocated.

Days after Trump won the 2016 election, the trade group representing major automakers in Washington called on him to reconsider fuel-efficiency standards proposed by the outgoing Obama administration, and backed by California and other coastal states.