President Donald Trump’s rollback of EV incentives and emissions rules is reshaping the U.S. auto industry, freeing up billions of dollars for Detroit’s carmakers to reinvest in gasoline-powered vehicles, Bloomberg News reported Sunday.
General Motors (NYSE:GM), Ford (NYSE:F) and Stellantis (NYSE:STLA) are all shifting resources away from electric models toward pickups, hybrids, and even big engines like Jeep’s Hemi V-8. GM recently cut EV production plans at two factories, while Ford scrapped a planned electric SUV to fund internal combustion models. Stellantis, meanwhile, is reviving its once-retired V-8.
The administration’s $3.4 trillion budget eliminates the $7,500 EV tax credit and cancels fines for missing fuel-economy targets, reducing the need for costly regulatory credits. GM has spent $3.5 billion on credits since 2022, while Ford said it has already saved $1.5 billion this year.
Ford CEO Jim Farley called the policy shift a “multibillion-dollar opportunity,” with the company’s gas and hybrid division expected to benefit most. GM CFO Paul Jacobson said the changes would save the company money starting in 2026.
Environmental groups slammed the move, noting Biden-era standards would have cut U.S. carbon emissions by 7 billion tons and saved drivers money on fuel. But automakers argued those rules forced them to sell EVs faster than demand allowed.
Near-term savings from weaker standards will help offset Trump’s tariffs on imported cars and parts, which are driving up costs. Still, EV specialists like Tesla (NASDAQ:TSLA) and Rivian (NASDAQ:RIVN) face a major hit: Tesla could lose as much as 40% of its profit from disappearing credit sales, while Rivian already warned revenue from credits will dry up this year.
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