President Donald Trump wasted no time making his mark on U.S. energy policy, declaring a “national energy emergency” and signing a flurry of executive orders on his first day back in office. Among the most significant moves for the auto industry is the elimination of what Trump calls the “electric vehicle mandate.”
This mandate, actually an EPA rule, would have required automakers to slash greenhouse gas emissions from new vehicles starting in 2027. The EPA estimated this would have pushed electric vehicle (EV) production to between 30% and 56% of new light-duty vehicles by 2032.
Trump’s order effectively pulls the rug out from under the EV push, signaling a dramatic shift back toward fossil fuels. “We’re going to drill, baby, drill,” Trump declared to a cheering crowd, making it clear that increasing domestic oil production is now a top priority.
The move comes despite U.S. crude oil production already hitting record highs in the past year. Trump argues this shift is necessary to lower energy costs for consumers and boost American energy independence.
This sudden change in direction creates uncertainty for the auto industry. Based on the previous administration’s policies, manufacturers have invested billions in EV technology and production lines. Now, they may need to quickly pivot back toward traditional combustion engines.
Environmental groups are already sounding the alarm, warning that this reversal could set back efforts to combat climate change. However, Trump insists the U.S. won’t “sabotage our own industries while China pollutes with impunity.”
As part of his Day One agenda, Trump withdrew the U.S. from the Paris Climate Agreement and signed orders to reopen drilling in Alaska. He’s also promised to overturn bans on offshore drilling along the Atlantic and Pacific coasts.
The move comes as Stellantis has paused development of its upcoming electric Chrysler C6X crossover and canceled its long-range all-electric Ram 1500 REV pickup in favor of the Ram 1500 Ramcharger, a range-extender electric vehicle (REEV).
While the full impact of these sweeping changes remains to be seen, one thing is clear: the U.S. auto industry, including Stellantis, is in for a wild ride as it navigates this dramatic shift in energy policy.
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