Bottom line: Trump’s decision to scrap EV incentives and emissions rules has forced U.S. automakers to write off about £37 billion.
In the last few months, big names like Ford, GM, Stellantis and VW have erased billions of dollars in U.S. electric‑vehicle projects. The policy reversal has turned years of planning into a financial black hole.
Trump’s War on EVs Costs Car Makers £37 Billion – What It Means for the Industry
Image: Trump’s War on EVs Costs Car Makers £37 Billion – What It Means for the Industry – Performance Comparison and Specifications
Policy design & outlook
President Donald Trump called climate‑related policies a “green scam” and halted the tax credits that helped buyers afford electric cars. He also killed the upcoming emissions standards that would have forced a faster shift to zero‑tailpipe vehicles. Without clear, long‑term rules, car makers lose the certainty they need to invest billions in new factories, battery lines and software.
Industry groups keep shouting, “Give us a roadmap early, and we’ll follow.” The sudden policy flip‑flop leaves them guessing, and guessing costs money.
Impact on performance & mileage plans
Many of the scrapped projects were aimed at delivering longer range and better efficiency. For example, Ford’s planned $8 billion battery plant in Kentucky was meant to power the new Mustang Mach‑E and future F‑150 Lightning models with 300‑plus mile ranges. With the incentives gone, the economics of those mileage targets evaporated, prompting the write‑off.
Similarly, GM’s Ultium battery strategy, which promised flexible cells for everything from compact cars to trucks, now faces a funding gap. The result: fewer new EV models, slower mileage improvements, and a lag behind competitors who still enjoy supportive policies.
Financial cost & rivals
The £37 billion hit is roughly the amount the UK has spent on the HS2 rail project – a staggering sum for any industry. While the large OEMs can absorb some loss, smaller suppliers and start‑ups are being squeezed out. Job cuts and reduced R&D budgets are already being reported.
This creates an opening for Chinese manufacturers, who have benefited from stable, long‑term government backing. Companies like BYD and Nio can keep investing in battery capacity and charging networks, potentially widening the gap between U.S. and Asian EV markets.
| Engine | Mileage (EPA range) | Price (US$) | Top Features |
|---|---|---|---|
| Ford‑Electric (Mach‑E) | 300 mi | 45,000 |
|
| GM‑Ultium (Bolt EV) | 259 mi | 31,000 |
|
| Stellantis‑Electric (Polestar 2) | 275 mi | 49,900 |
|
| Volkswagen‑ID.4 | 260 mi | 38,000 |
|
FAQ
- What is the total financial loss for U.S. automakers due to the policy change? About £37 billion (roughly $47 billion) has been written off.
- Will electric‑vehicle mileage improve in the U.S. after the policy reversal? Progress is likely to slow, as fewer funds are available for new battery and range‑extending technologies.
- Are smaller EV suppliers at risk? Yes, without the incentive cash flow, many smaller firms face cuts, layoffs, or even closure.
What do you think about the impact of political swings on EV investment? Share your thoughts in the comments below.
Source: Read Official News
