GM CEO "US Electric Vehicle Tax Credit Abolition, Direct Hit to Net Profit"

Mary Barra, General Motors (GM) Chief Executive Officer (CEO), expressed concerns that if the electric vehicle tax credit of up to $7,500 is eliminated after the inauguration of Donald Trump’s next administration next year, it would inevitably impact GM’s performance. The imposition of high tariffs on Mexico and Canada, where GM’s production bases are located, is also expected to have a significant effect on GM. However, she showed optimism regarding manufacturing promotion policies and deregulation following the start of Trump’s second term.

Reuters Yonhap News

According to Bloomberg News and Axios, Barra attended an automotive press event in Detroit, Michigan, on the 11th (local time) and stated, “If the $7,500 tax credit is eliminated, it will negatively affect profits.” Currently, the Trump transition team is pushing to repeal the electric vehicle tax credit benefits under the Inflation Reduction Act (IRA) implemented by the Joe Biden administration. If the tax credit of up to $7,500 per vehicle is removed, consumers’ price burdens will increase, which is expected to adversely affect electric vehicle sales.

GM, which has set a goal to stop producing conventional internal combustion engine vehicles in the North American market by 2035 and switch to electric vehicles, faces a setback. On the other hand, Elon Musk, CEO of Tesla, the world’s largest electric vehicle company and a close ally of Trump, has expressed support for the elimination of subsidies. During the presidential campaign, he argued that the removal of the electric vehicle tax credit would not be a big problem for Tesla but would hit competitors who rely heavily on it.

Additionally, Barra expressed concern that Trump’s threat to impose high tariffs on Mexico and Canada immediately after taking office would also raise production costs. She said, “It could have a very large impact on GM.” GM also produces vehicles at plants in Mexico and Canada.

However, she expressed optimism about deregulation and manufacturing promotion policies. In an interview with Axios, she said there is ample room for Trump to simplify environmental regulations as promised. Regarding autonomous vehicle regulations, she indicated that federal-level regulations would be better than state-level regulations. This stance aligns with that of Musk, who has emerged as one of Trump’s closest allies. Barra said, “I expect to work together because I believe the Trump administration will enhance the importance of the automotive industry and manufacturing,” adding, “We have a lot in common.”

This content was produced with the assistance of AI translation services.