The car industry has been going on a steady decline through the years and the past administrations. Electric vehicles have been emerging and gas prices are going up. The automotive policies have also not received any or very small changes to improve its economic growth. With a new president that is also a businessman himself, the industry may be back on its feet in no time.
A New Opportunity Arises
According to Automotive News, car manufacturers are seeing the new president as an opportunity to recast their relationship with the federal government. The Alliance of Automobile Manufacturer has already handed their new policy proposal to the presidents' transition team just after a day of the election. The new policies could reform the relationship between the government and car companies that could improve vehicle costs.
The alliance cites changes that will give the full complement to agencies such as the Federal Trade Commission and Homeland Security in order to improve automotive policies. One policy discussed an approach on greenhouse gas and fuel economy regulations. Another is a scenario that could possibly change everything that is being currently followed regarding the fuel economy program with the National Highway Traffic Safety Administration or NHTSA. Another scenario is for the administration to simply work with carmakers and the congress to just adjust the policies with a goal of lowering gas prices.
No Climate Change Issue
The opportunity also follows the appointment of Myron Ebell, a climate skeptic, as the head of the U.S. Environmental Protection Agency. Ebell is known to be denying the issue of climate change, much like when president Trump said that the change is just a hoax. With a climate skeptic leading the EPA, gas emission policies may also be adjusted.
Ebell, being someone who denies that there really is a climate change happening, is highly possible to reduce carbon emissions regulations or even cancel the whole agreement. This move, if and when it happens, could mean that car manufacturers can add more power to their cars and not think about how the gasses affect the environment. This, in turn, can boost sales since most car enthusiasts have always longed on how they can make their cars faster and stronger. Removing the current policies means no more restrictions for car companies and they can do as they will in terms of engine engineering.
Before the former president Obama was seated as the head of the state, the car industry almost went bankrupt. The policies of the previous administration only make actions to save the industry from dying but did not give any real opportunity to improve the business. Especially, since Obama is a well known for being a climate change advocate. The policies just became strict with emissions that forced companies to cut back on power to avoid getting fined due to high carbon emission ratings.
A Businessman To Lead The Business
Trump as a businessman is known to make measures to improve the business. His personal insight can be useful in improving policies, sales, import/ export, and improving costs in the car industry. American car brands like Ford and Chevrolet can gain back their glory as they are struggling in catching up with other car brands. American car companies have constantly been competing with Japanese and German car companies, and strict American automotive policies have been restricting them from leading the car business.
The plans have been submitted and the upcoming head of the EPA does not seem to worry about any climate change. The American car industry might change sooner than we expect it to be. Everyone just needs to wait and see.