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On a recentepisodeof This Car Pod!
DeMuro and his guests discussed how President-elect Donald Trumps second term in office could impact theautomotive industry.
Also seetwo possible changes coming to American car prices in the next four years under Trump.
A lot of cars that are sold in the U.S. are built in Mexico, DeMuros guest said.
The implication would be that will raise the cost of cars sold in the U.S. by a fair amount.
Honda, for example, builds hundreds of thousands of cars in Mexico.
Ford does as well.
Detroit could feel the squeeze too.
According toReuters, GM exports more cars from Mexico to America than any other automaker.
Its not just the cars themselves.
Tariffs could impact the entire industrys supply chain.
More important than the tariffs, the electric vehicle incentives will change, DeMuro said.
According toReuters, Trumps transition team is strategizing to kill the credits as a top priority.
I do have a sense that EVs may not be as heavily incentivized going forward, DeMuro said.
According to the Times, President Bidens2022 Inflation Reduction Actestablished the credits.
Therefore, Congress would have to amend the law or pass a new one to eliminate them.
Competitors like Ford and GM sell a fraction of the EVs, and they do it at a loss.
But it remains to be seen what Trump will end up doing regarding EV initiatives.
And DeMuro thinks the changes may not be as drastic as some expect.
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