Trump VS Biden, who is better for the auto industry?

The days when you can't travel abroad may be really boring. The release of iPhone12 is so boring that it can arouse people's climax. It is so boring that you can get a hot search in the US election, and it has been going on for three days in a row.

The results of the voting are still being calculated, which does not prevent the public from having a heated discussion. John Bozela, CEO of Washington Trading Group-Global Automobile Manufacturers Association (John? Bozzella) once said, "The most interesting thing about this American election is that its result concerns the interests of the entire automobile industry."

Although Trump and Biden have reached a high degree of agreement on the automobile industry as a whole: increasing automobile production and increasing employment, there have been huge differences on energy development, regulations and subsidies. One side can be said to be an advocate of traditional energy, while the other side is a radical of new energy vehicles.

what impact will Trump's appointment have on the American auto industry and even the global auto industry? First of all, the fuel efficiency regulations signed by the Obama administration are likely to be rejected.

according to the fuel efficiency and greenhouse gas emission standard plan under the supervision of the U.S. environmental protection agency (EPA) and the U.S. road traffic safety administration (NHTSA), the fuel efficiency standard of light vehicles will be raised to 5mpg by 225.

However, Trump has publicly claimed that "an institution like the Environmental Protection Agency is a joke. It is a stumbling block for us to create jobs and achieve economic growth. "

He insists that global warming is a "scam". Once he wins the election, he will pull the United States out of the Paris Agreement and stop the US funding for all United Nations global warming projects.

once the original implementation standards are relaxed, it will help car companies avoid excessive emission taxes, and in addition, it will slow down the process of car companies transforming from traditional fuel vehicles to electric vehicles.

Although Trump calls himself an electric car fan, his substantive behavior is more like a traditional energy advocate, while Democratic candidate Biden is the opposite.

during the campaign, it promised to invest 2 trillion US dollars to build infrastructure and will add 5, electric vehicle charging stations nationwide. It is proposed to restore all tax credits for electric vehicles, provide cash vouchers to consumers who exchange fuel vehicles for American-made electric vehicles, and accelerate the research on battery technology to support domestic independent production. As for the fuel economy standard, not only will it not be relaxed, but it may be further unified and stricter.

So if Trump is elected, traditional car companies will benefit, and if Biden is elected, electric car manufacturers and suppliers such as Tesla will be even more powerful.

As we all know, Trump always plays the role of a "loner" in trade frictions. He described European allies as enemies who "tried to use the United States" and repeatedly threatened to impose a 25% tariff on imported passenger cars made in Europe. Trump also specifically emphasized the need to crack down on the German auto industry with new tariffs.

this position will further weaken the economic ties between Europe and the United States, which will hurt the interests of car companies and parts suppliers. To some extent, it may force car companies to invest and build factories in the United States. On China policy, Trump also advocates taking tough measures, and industries such as auto parts and tires produced in China may be affected.

Biden, on the other hand, is more willing to negotiate with partners. If Biden is elected, it may make the United States rejoin the Trans-Pacific Partnership Agreement, a free trade agreement signed by Canada, Japan, Mexico, Vietnam and seven other countries.

In addition, regarding the attitude of car companies to set up factories, Trump explicitly encouraged the establishment of factories in the United States. He once said that "Ford wants to transfer its small car production line to Mexico, which is shameful. Those politicians who let Ford succeed are also shameful. " The newly signed "US-Mexico-Canada Trade Agreement" has increased the cost for car companies to produce cars in foreign countries in the United States. If Biden, who advocates free trade, is elected, it may provide greater certainty for automakers to invest in countries such as Mexico and Iran.

well, after watching the politicians' performances on stage, which ones are just campaign rhetoric and which ones will really be put into practice, who do you pick more? Let's wait and see.

This article comes from the author of Chejia, car home, and does not represent car home's standpoint.