U.S. automakers speak up against canceling EV state subsidies

Back in November, the Alliance for Automotive Innovation (AAI) voiced concern about President-elect Donald Trump’s decision to cancel the $7,500 price deduction on new electric cars. This decision has now entered into legal force.

In a new letter addressed to Trump earlier this week, AAI CEO and President John Bozzella goes into detail on why the removal of EV subsidies may threaten national security in the long term. For one thing, he argues that the United States are already lagging 10–15 years behind China in terms of EV technology and infrastructure. Hampering the growth of the industry may only make things worse.

Another major point he brings up is the vast amounts of investment money already poured into EV research and development. Dropping state support of the industry may lead to disastrous consequences for many automakers who had counted on the subsidies to stay profitable.