An Ambivalent Auto Industry Buckles up for Trump Ideology

It is fair to say that the Obama administration to an extent was successful in rescuing the US auto industry. It also helped reshape the overall automobile business by revising policies and regulations aimed at lifting the dismantled economy, job creation and improve safety.

Now, with the arrival of Trump in the white house, the auto sector in the US is preparing for a total remodeling. The change in administration is perhaps going to affect the auto industry in all the flanks. The selection of Scott Pruitt the famous Oklahoma attorney to head the Environmental Protection Agency makes it more obvious and is surely making the industry anxious about its future.  Mr. Pruitt a well-wisher of the oil and gas industry is known for his skepticism on climate change.

Some of the possible altercation that can be expected under the Trump administration include policies that encourage automakers to establish more units in the country rather moving out, reduced electric cars subsidies, revision of Tariffs that will see a price rise on vehicles and parts imports and policies that restrict American factories to expand further in Mexico.

Any downturn of fuel-economy objectives by the new administration and possible introduction of news policies guided by Mr. Pruitt’s skepticism on climate change and hold of fossil fuels may decide on the types of vehicles the industry plans to manufacture in near future and where the place of manufacturers. Manufacturing of heavy vehicles such as pickup trucks and sport utility vehicles with higher fuel consumption and more profit margins is like to increase. As their heftier price tags can support the higher labor costs of manufacturing them in the country.

Ford Motor that faced a heavy Trump criticism has canceled its plans to manufacture Lincoln S.U.V. in Mexico and will continue its Kentucky plant. The capital-intensive industry that usually makes billion investment on regular basis is yet uncertain of its future.

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