Headlines
Major automakers call for EPA to ease tailpipe emissions rules
Published by Global Banking and Finance Review
Posted on September 23, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 23, 2025
2 min readLast updated: January 21, 2026
Automakers request EPA to ease emissions rules, citing challenges with current standards and potential impact on EV market share.
By David Shepardson
WASHINGTON (Reuters) -A group representing nearly all major automakers asked the Trump administration Tuesday to roll back aggressive vehicle emissions limits that seek to force the industry to build a rising number of electric vehicles.
The Alliance for Automotive Innovation, which represents General Motors, Toyota Motor, Volkswagen, Hyundai and other major automakers, said in a filing with the Environmental Protection Agency that legislation signed by President Donald Trump in June will increase the effective price of EVs and could lead to a near-term decline in EV market share.
They argue rules finalized last year under President Joe Biden are no longer feasible.
"The 2027 and later standards are simply not achievable in light of significant market, charging infrastructure, supply chain, affordability, and other challenges as well as recent policy changes enacted," the group said.
The 2024 Biden rules aim to cut passenger vehicle fleetwide tailpipe emissions by nearly 50% by 2032 compared with 2027 projected levels. The EPA forecast between 35% and 56% of new vehicles sold between 2030 and 2032 would need to be electric.
On Sept. 30, the $7,500 EV tax credit expires and automakers warn that "a significant portion" of automakers may lose a battery production tax credit for EVs typically worth $3,000 per year next year under the law.
"This harms not only the automotive manufacturers that have spent hundreds of millions of dollars investing in electric vehicle technology, but also the entire supply chain that has supported these initiatives," the group said.
In July, the EPA proposed rescinding the long-standing finding that greenhouse gas emissions endanger human health, removing the legal foundation for all U.S. greenhouse gas regulations, a move that would end current limits on greenhouse gas pollution from vehicle tailpipes.
Democrats in Congress and environmental groups have called on the EPA to drop its plan and retain the rules.
Automakers argue the EPA should still rewrite the Biden rules, saying they "still need to be revised to feasible levels to provide certainty for the industry." The group said "such a contingency plan will be critical if motor vehicle GHG standards are retained or reinstated in some way."
(Reporting by David Shepardson, Editing by Franklin Paul and Nick Zieminski)
The Alliance for Automotive Innovation requested the EPA to roll back aggressive vehicle emissions limits that they believe are no longer feasible.
The 2024 Biden rules aim to cut passenger vehicle fleetwide tailpipe emissions by nearly 50% by 2032 compared to projected levels for 2027.
Automakers argue that the current standards are not achievable due to significant market, charging infrastructure, supply chain, affordability, and other challenges.
The expiration of the $7,500 EV tax credit on Sept. 30 could lead to a loss of battery production tax credits for many automakers, impacting their investments in electric vehicle technology.
Democrats in Congress and environmental groups have urged the EPA to abandon its plan to rescind existing emission rules and retain the current standards.
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