As we inch closer to the 2024 presidential election, the stakes for the U.S. automotive industry couldn’t be higher. The potential face-off between Joe Biden and Donald Trump is set to have far-reaching implications, especially when it comes to environmental policies and the shift towards electric vehicles (EVs). It’s a pivotal moment that could redefine the path for every car dealer and manufacturer nationwide.

How the Election Could Reshape the Industry

The outcome of this election will influence key policies affecting everything from federal tax incentives and regulations to substantial investments in U.S. battery and EV manufacturing. Under Biden’s leadership, initiatives like the Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL) have given the U.S. EV market a significant push forward. However, a change in administration could see a shift in direction, potentially dialing back these efforts and impacting North American sourcing strategies and the overall automotive supply chain.

Regulatory Reversals on the Horizon?

One of the critical battlegrounds is regulatory policy, particularly around greenhouse gas emissions and fuel economy standards. The Trump administration’s approach was markedly less aggressive, even revoking California’s emissions waiver. In contrast, Biden’s tenure has set targets to curb emissions. A Republican win could mean a return to more lenient policies, affecting car dealers and the broader market’s move towards greener alternatives.

The Investment Landscape

The past couple of years have seen a surge in investments in U.S. battery and electric car manufacturing, spurred by incentives like the Investment Tax Credit (ITC) introduced under the IRA. Over $100 billion has been funneled into this sector, dramatically scaling up the country’s battery plant capacities. With the 2024 election, these investments and the future projects they support could be at risk, especially if there’s a significant policy shift.

What This Means for Every Car Dealer

For a car dealer, the election’s outcome could change things in several ways. A continued push towards EVs under a Democratic administration would likely mean greater availability of electric models, more competitive pricing, and potentially higher demand among eco-conscious consumers. On the flip side, a Republican victory might slow the pace of the EV transition, impacting the types of vehicles car dealers will be selling and promoting shortly.

Navigating Uncertainty

As we look towards the election, the automotive industry, particularly car dealers, finds itself at a crossroads. The policies and regulations that come into play in the aftermath could either accelerate the move towards electric vehicles or put the brakes on this shift. With debates heating up and the future as unpredictable as ever, car dealers and the entire automotive sector are bracing for significant change.

In the end, whether it’s adapting to new regulations, capitalizing on federal incentives, or navigating shifts in consumer demand, every car dealer will need to stay agile. The road ahead is uncertain, and the 2024 election could very well determine the direction of the U.S. auto industry for years to come. As this moment approaches, staying informed and ready to pivot will be key for anyone in automotive.