POLITICO Energy Why automakers are staying mum about Trump’s megabill
Jun 6, 2025
James Bikales, a POLITICO reporter, dives into the surprising silence of the auto industry's trade group on Trump’s megabill, revealing internal conflicts affecting their stance on crucial tax credits. He discusses how proposed rollbacks threaten electric vehicle investments and highlights the contrasting views of leading automakers. Additionally, a new Pew Research Center report indicates declining American support for renewable energy under the Trump administration, adding complexity to the industry’s future direction.
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Megabill Threatens Auto Tax Credits
- The House Republican megabill would eliminate key tax credits like the $7,500 EV consumer credit and leasing credit by year-end.
- The manufacturing tax credit 45X remains but with foreign entity restrictions that could make it unusable for many automakers.
Divide Silences Auto Industry Lobby
- The Alliance for Automotive Innovation remains silent publicly due to deep internal divisions over the bill.
- Members such as automakers and suppliers can't agree on how to respond, weakening unified public lobbying.
GM Stands Apart On Credit Rules
- GM supports the restrictive foreign entity clause while other automakers want it changed.
- GM feels confident they've invested enough domestically to meet these tough eligibility rules.