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Legacy automakers want the US Congress to stop California's plan to greatly restrict the sale of gas-only cars by 2035. Eleven other states follow California's emission plan, including New York, Massachusetts, and Oregon. Together, these 12 states account for approximately 40% of the US new vehicle market.
In May, the US House of Representatives voted to cancel the special Environmental Protection Agency (EPA) permission given to California by all previous administrations (Republican or Democrat). Without this permission, vehicles in these states would only be required to follow the (much more relaxed) federal emissions standards. On June 12th, President Donald Trump signed the resolutions that revoked the EPA waiver for three California vehicle emissions rules.
Hours later, California's Governor said the state would sue for the right to regulate its own air quality and would double down on its efforts to transition away from fossil fuels. The Governor went on to say this move by Congress and the Trump administration will “Make America Smoggy Again.”
The Alliance for Automotive Innovation, representing companies like GM, Toyota, and Volkswagen, claims that complying with the California mandate will cause financial hardship for the automakers. They said that to comply with the rule, automakers will have to reduce the total number of cars they sell to inflate the share of EVs. They don't seem to understand that increasing EV sales is the better option. This is especially ironic that this "innovation" alliance is arguing for the status quo to continue even into 2035. Perhaps they should consider renaming themselves The Alliance of Luddite Automakers.
EVs are poised to dominate the future of personal transportation, driven by declining battery costs, technological advancements, environmental imperatives, and shifting consumer preferences. Charging infrastructure is expanding rapidly, with over 170,000 public chargers in the US as of 2025. Battery costs have dropped over 80% since 2010. This has improved EV range while making them more affordable (and more profitable). By 2035, battery costs will (again) decline significantly, and EVs will be more profitable than gas-powered vehicles.
EVs offer superior performance, lower maintenance costs, and zero tailpipe emissions, aligning with global efforts to combat climate change. Governments worldwide are setting ambitious targets, with the EU aiming for all new cars to be zero-emission by 2035. Consumer demand is surging, as evidenced by EVs accounting for 9.5% of US vehicle sales in 2024, up from 3.2% in 2020. These trends signal that EVs are not a niche but the future of mobility.
US legacy automakers risk falling behind if they resist this transition. By lobbying to delay California’s 2035 EV plan, companies like GM and Ford threaten to cede ground to EV-only brands such as Tesla, Rivian, and Lucid. These newer players are fully committed to electrification, with Tesla alone commanding over 50% of the US EV market in 2024. Rivian and Lucid are gaining traction with premium electric trucks and luxury sedans. If legacy automakers slow their EV investments, they will struggle to compete with these agile, EV-focused brands that are capturing market share and consumer loyalty.
Meanwhile, Chinese automakers are accelerating their EV ambitions, posing a long-term threat. Companies like BYD and NIO are making significant inroads in Australia and Europe, with BYD’s affordable Atto 3 SUV becoming a top seller in Australia. China is the world’s largest EV market, with over 50% of global EV sales in 2024. Chinese firms are investing heavily in innovation. They are not lobbying to slow progress. They are producing cost-competitive models with advanced features. By 2035, Chinese brands are likely to enter the US market (even if that means buying out US brands to gain a foothold). If US automakers stay on the Luddite path, they will not be prepared to face the fierce competition from these global players.
Even if the current US administration supports delaying EV mandates, this will not ensure the competitiveness of legacy automakers. Short-term policy reversals cannot halt the global shift toward electrification. Delaying EV adoption risks leaving US companies unprepared for a future where EVs dominate. To remain competitive by 2035, US automakers must embrace the EV revolution right now and invest in innovation, rather than using political obstructionism to cling to outdated technologies.
The US has a storied history with automotive innovation, and companies like Tesla, Rivian, and Lucid are now leading the charge in the EV revolution, showcasing American ingenuity on a global stage. These homegrown brands have set benchmarks for performance and sustainability, with Tesla’s market dominance and Rivian’s rugged electric trucks capturing the nation’s imagination. Meanwhile, legacy automakers like GM and Ford are steadily adapting, contributing to the EV landscape with models like the Chevrolet Equinox EV and F-150 Lightning, even if they’ve been slower to pivot. The presence of Chinese EV brands like BYD and NIO in the US market underscores global competition, yet American innovation continues to shine.
This July 4th, as families gather for barbecues and fireworks, the most patriotic thing our politicians could do is to support American-made innovation, put the US on track to be globally competitive, and stop trying to drag our energy policy back to 1950.