Legal Insurrection readers may recall that in 20222, I reported that Toyota Motor chief Akio Toyoda was very skeptical of moving to only producing electric vehicles (EVs). Toyoda also indicated that most people in the auto industry agree with him.
“People involved in the auto industry are largely a silent majority,” Toyoda said. “That silent majority is wondering whether EVs are really OK to have as a single option. But they think it’s the trend so they can’t speak out loudly.”
Then, this fall, I noted that Now BMW’s CEO Oliver Zipse argued that Europe’s 2035 ban on internal combustion engines (ICE) is unrealistic and could increase reliance on Chinese batteries.
The re-election of President Donald Trump is now sending a signal to other concerned automotive officials about the rush to EVs.
Toyota Motor Corp.’s North American chief operating officer criticized the US’s policies promoting speedy adoption of electric vehicles, calling them “de facto mandates” out of sync with consumer demand.Noting government support for EVs has been a hotly debated issue in the US presidential election, Toyota North America COO Jack Hollis said sales of all-electric vehicle should grow organically, without rules penalizing gas-powered car sales.“The whole EV ecosystem is ahead of the consumer,” Hollis told reporters Friday, pointing to tailpipe emission rules from the Environmental Protection Agency and California. “It’s not in alignment with consumers. It’s just not.”
It is interesting to note that Toyota recently revealed plans to cut EV production by a third to its suppliers. These new plans cut the production of EVs by 500,000 in 2026 than originally planned.
Japan’s largest automaker is lowering its global EV production goal to 1 million by 2026. The update comes after Toyota announced plans last May to sell 1.5 million EVs by 2026.The new plans call for building 400,000 electric cars in 2025, doubling that number to 1 million by the following year.Although Toyota is cutting EV production, it still expects a big jump in sales from the 104,018 electric cars sold in 2023. Through the first seven months of 2024, Toyota has sold about 80,000 EVs.
Toyota and other like-minded automakers likely feel empowered to share honest observation on market forces. President-elect Trump has said he wants to scrap the “Green New Scam,” otherwise known as the Inflation Reduction Act, that was essentially the Green New Deal dressed-up as economic policy.
Trump is targeting Biden’s climate insanity “on day one“:
“And I will end the electric-vehicle mandate on day one,” Trump said during his speech at the Republican National Convention in July, adding that he would save “the U.S. auto industry from complete obliteration.” There is no nationwide U.S. electric-vehicle mandate, but some states, led by California, have implemented their own rules to phase out fossil fuel-powered vehicles.Although rolling back environmental regulations would give automakers more wiggle room to continue selling gas-powered vehicles, which account for the bulk of many automakers’ revenues, it would rattle their EV plans.
Trump plans to begin by rescinding California’s authority to dictate emission levels, which Biden reinstated after Trump’s first term. Trump is also going to explore tariffs to help the US automotive industry.
The American Trucking Associations on Wednesday called on Trump to replace the EPA’s tighter tailpipe emissions with national emission standards that were “technologically achievable and account for the operational realities of our essential industry.”Trump plans to rescind California’s ability to set its own vehicle emissions rules, as he did in 2019. President Joe Biden reinstated California’s authority. Trump will also decide how to spend billions of dollars in EV charging grants.Trump has repeatedly warned he will impose tariffs of 200% or more on vehicles imported from Mexico and could also impose them on Asian and European vehicles.Trump wants to prevent Chinese auto imports, but is open to Chinese automakers building vehicles in the United States.
The EV market may expand naturally, as Team Trump plans to pare back or eliminate EV tax breaks and other incentives.
In the end, Toyota and other car manufacturers can now make strategic decisions based on consumer preference and not on the whims of eco-activist bureaucrats.
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