In preparation for the possibility of a Joe Biden win, automakers have started to prepare for new vehicle emission policies and rules, which are more in favor of electric vehicles if the Democrat nominee wins the White House.
Both Biden and current U.S. President Donald Trump need to win the votes of auto workers and makers, especially in Michigan and Ohio, which are considered as Midwestern swing states.
Both presidential hopefuls have also expressed their desire for automakers to create more job opportunities in the U.S. instead of Mexico and China.
Despite the similarities in their campaign for the auto industry, Trump and Biden's policies for transportation and autos are very different in terms of rewards and risks.
Once elected, it is expected that Biden will immediately reinstate the legal-basis for the zero-emission vehicle rules in California. He is also expected to reverse the decision of the Trump administration in easing carbon emission requirements and fuel efficiency until 2025, Energy Economic Times reported.
Moreover, automakers may face higher penalties for failure to meet the requirements for fuel-efficiency under a Biden administration.
It can be noted that Trump had rolled back the said penalties, resulting in the industry saving at least $1 billion in compliance costs. However, in August, the administration's actions were reversed by a federal court of appeals.
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Despite the possible higher penalties, Biden has also offered the auto industry some offsetting gains. Under Trump's White House, it is very easy to sell gas using SUVs, while tax credits for electric vehicles were rejected.
Meanwhile, according to Yahoo! News, Biden has vowed a new tax incentive scheme, which would include rebates to those who would buy electric vehicles. He also added that charging stations for electric vehicles will be expanded - a policy which have long been advocated by automakers.
Back in 2016, just days after Trump was elected into office, major automakers represented by a trade group in Washington called on to his office to consider the standards for fuel efficiency that were proposed by the Obama administration. The same proposals were backed by other coastal states and California.
However, the industry seems divided-some motor companies, including Honda Motor Co 7267.T, Ford Motor Co F.N, and Volkswagen AG VOWG_p.DE made a deal with the emission requirements of the state.
Meanwhile, Toyota Motor Corp 7203.T, Fiat Chrysler Automobiles NV FCHA.MI, and General Motors Co GM.N, sided with the Trump administration's efforts to roll back emission requirements.
It remains a question, however, that if Trump loses, would the automakers who backed him continue their legal battle in court.
Meanwhile, Michigan Democrat, U.S. Representative Debbie Dingell, representing thousands of autoworkers in the state, said that Biden is very committed to bringing the various groups together to broker an agreement on the emission rules, Reuters reported.
Moreover, Dingell added that any proposal that would be made by the automakers would be taken as a "floor" for the negotiations, further adding that the unions and the environmental community should work together.
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