{"id":4127,"date":"2025-05-16T18:59:13","date_gmt":"2025-05-16T18:59:13","guid":{"rendered":"https:\/\/sites.lsa.umich.edu\/mje\/?p=4127"},"modified":"2025-05-16T18:59:13","modified_gmt":"2025-05-16T18:59:13","slug":"the-future-of-the-automotive-industry","status":"publish","type":"post","link":"https:\/\/sites.lsa.umich.edu\/mje\/2025\/05\/16\/the-future-of-the-automotive-industry\/","title":{"rendered":"The Future of the Automotive Industry"},"content":{"rendered":"\n

Written by: Turab Alam<\/em><\/p>\n\n\n\n

The automotive industry is one that is no stranger to innovation and change. Fueled by a constand demand from consumers and strong competition from fellow brands, car companies are true global leaders. In an industry so large it was valued at \u201c3.6 trillion 2023\u201d and projected to reach \u201c6.9 trillion in 2033\u201d (Joshi, 2024). Time and time again innovations and external factors have provided development in the industry, the internal combustion engine itself, the automation of production, connectivity in vehicles, and so much more. Recently the topic of most interest lies with EVs and automation in vehicles. This technology is what many view as the next big step in the industry. EVs were thought to be the future, however, there is newfound doubt surrounding that. After the EU and America pushed back EV production requirements, most notably President Trump pushing back all of Biden\u2019s EV pledges, there is a pushback from companies on EVs. With many scraping their full EV lineup plans and continuing with gas powered cars. Aside from electrification, the automotive industry has recently been put on a spotlight with the heavy tariffs President Trump has put in place (White House, 2025). Taking all of this into account, for the first time in a very long time, the automotive industry faces uncertainty in where its future lies. Entire production lineups have been altered, production plans thrown away, and all out shipment to the US coming to a halt. <\/p>\n\n\n\n

The first reason for uncertainty lies with the future of EVs. They seemed to be the ultimate future for transportation and a huge shift in the industry. Companies like Tesla, Rivian, and Lucid entered the market offering a full electric fleet. Others like the Volkswagen group, Mercedes, and more promised a shift from gasoline to electric in the coming years (McHugh, 2024). One notable reason for this is quite simple and from the consumers perspective as David McHugh and his team from AP world news reports. \u201cConcerns about range, charging infrastructure and higher prices are sore points among both electric car enthusiasts and skeptics in Europe and the U.S\u201d (McHugh, 2024). Originally the EU and Britain had planned for a 2030 phase out of all internal combustion engines. This was then pushed back to 2035 allowing for the sale of hybrid vehicles (Joshi, 2024). There\u2019s a magnitude of reasons behind this, most notably of which is that consumers feel electric vehicles are being forced upon them and required. The cost is just too high and the infrastructure in America is also just not up to-par. This directly builds into a more recent and crucial change in the industry impacting the future. Tariffs, industry altering and high tariffs. An example can be made of Britain and their car manufacturers. \u201cBritain softened demands on automakers to switch to production of electric vehicles on Monday, seeking to alleviate pressure on an industry left reeling from U.S. President Donald Trump’s tariffs\u201d (Young, 2025). Of course, these tariffs put an immediate change on production for companies exporting to the US, it is shocking to see how the all important EV quotas can be changed from tariffs placed on these companies. A direct report from the White House explains the motive behind these tariffs with important information included. The exact action itself taken is, \u201ca 25% tariff on imports of automobiles and certain automobile parts, addressing a critical threat to U.S. national security\u201d (White House, 2025). Also including, \u201cPresident Trump\u2019s decision to implement tariffs on imports of automobiles and automobile parts will protect and strengthen the U.S. automotive sector\u201d (White House, 2025). At the end of the day, the intentions behind the tariffs are simple from the government’s perspective, ensure and increase national security and also boost American car manufacturing. The change and future of the automotive industry will be one of immense change. America is the second largest consumer of vehicles after China, where 8 of the 16 million vehicles sold a year are imported (Joshi, 2024). What it means for European and Asian producers will soon come, however, it is expected that the effect on these companies will be great, with the added costs. Already there is clear change, \u201cJaguar Land Rover, one of Britain’s biggest producers, sent shockwaves through the industry on Saturday when it said it was pausing car shipments to the U.S. for a month to consider how to mitigate the costs of the tariffs (Young, 2025). America going into \u201cself-sufficient\u201d mode in the industry will bring about immense change. There is a chance for imported vehicles to disappear off of dealer lots, and American manufacturers leading the charge. With tariffs impacting the entire spine of the automotive industry where the future lies is extremely uncertain, where production will go and how the American market changes. <\/p>\n\n\n\n

The future of EVs is unknown and the lasting impact of the tariffs still to come. An industry with proven stability and established players faces a full turnaround. The Amerian government has taken a route to try and bolster their own manufacturing and eliminate part of the international competition. Where this will lead in counter-tariffs for American vehicles or a steep price increase on consumers to balance the tariffs are all possibilities. The automotive industry and its future will need to be under close monitoring and proves to be the most unstable it has been in decades.<\/p>\n\n\n\n

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References<\/em><\/p>\n\n\n\n

Daly, M., & St. John, A. (2025, January 21). What\u2019s next for EVs as Trump moves to revoke Biden-era incentives?<\/em> AP. https:\/\/apnews.com\/article\/climate-trump-electric-vehicles-pollution-standards-ae3a35faa376630e494765175aee2c28<\/a><\/p>\n\n\n\n

Isidore, C. (2025, April). Auto tariffs are now in effect. What it means for America – and you.<\/em> CNN.https:\/\/www.cnn.com\/2025\/04\/03\/business\/what-the-auto-tariffs-mean-to-you\/index.html#:~:text=And%20when%20tariffs%20on%20car,domestic%20vehicle%20contains%20imported%20parts<\/a>.<\/p>\n\n\n\n

Isidore, C., & Yurkevich, V. (2025, March 27). Automakers aren\u2019t rushing to move production to US factories to avoid tariffs.<\/em> CNN. https:\/\/www.cnn.com\/2025\/03\/27\/cars\/us-automakers-production-tariffs-analysis-intl-hnk\/index.html<\/a><\/p>\n\n\n\n

Joshi, S. (2024, December 23). 50+ Automotive Industry Statistics: Key Trends for 2025.<\/em> G2.
\u2003\u2003https:\/\/learn.g2.com\/automotive-industry-statistics<\/a><\/p>\n\n\n\n

McHugh, D., St. John, A., & Moritsugu, K. (2024, November 27). Electric car sales are slowing in the US and Europe as both fans and skeptics share concerns.<\/em> AP. https:\/\/apnews.com\/article\/ev-emissions-china-eu-trump-electric-b6a432557ac314d02654008bfbaa09fb<\/a><\/p>\n\n\n\n

Mims, C. (2024). The EV Battery of Your Dreams Is Coming.<\/em> The Wall Street Journal.
\u2003\u2003https:\/\/www.wsj.com\/business\/autos\/ev-battery-developments-five-years-d306be44?mod=S<\/a><\/p>\n\n\n\n

earchresults_pos2&page=1<\/a><\/p>\n\n\n\n

Stafford, E. (2025, April 8). How Are Automakers Responding to Trump’s Tariffs? What We Know So Far.<\/em> CarandDriver. https:\/\/www.caranddriver.com\/news\/a64375899\/automakers-trump-tariff-response\/<\/a><\/p>\n\n\n\n

https:\/\/stockcake.com\/i\/robotic-arms-welding_1217428_119778<\/a><\/p>\n\n\n\n

White House. (2025, March 26). Fact Sheet: President Donald J. Trump Adjusts Imports of Automobiles and Automobile Parts into the United States.<\/em> whitehouse.gov. https:\/\/www.whitehouse.gov\/fact-sheets\/2025\/03\/fact-sheet-president-donald-j-trump-adjusts-imports-of-automobiles-and-automobile-parts-into-the-united-states\/<\/a><\/p>\n\n\n\n

Young, S., & Venugopalan, J. (2025, April). Britain to relax EV targets as automakers reel from tariffs.<\/em> Reuters. https:\/\/www.reuters.com\/business\/autos-transportation\/britain-eases-electric-vehicle-sales-targets-automakers-2025-04-06\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Written by: Turab Alam The automotive industry is one that is no stranger to innovation and change. Fueled by a constand demand from consumers and strong competition from fellow brands, car companies are true global leaders. In an industry so large it was valued at \u201c3.6 trillion 2023\u201d and projected to reach \u201c6.9 trillion in… Continue reading The Future of the Automotive Industry<\/span><\/a><\/p>\n","protected":false},"author":4678,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[4],"tags":[],"class_list":["post-4127","post","type-post","status-publish","format-standard","hentry","category-finance-business","entry"],"jetpack_featured_media_url":"","uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"post-thumbnail":false},"uagb_author_info":{"display_name":"ameyakee","author_link":"https:\/\/sites.lsa.umich.edu\/mje\/author\/ameyakee\/"},"uagb_comment_info":0,"uagb_excerpt":"Written by: Turab Alam The automotive industry is one that is no stranger to innovation and change. Fueled by a constand demand from consumers and strong competition from fellow brands, car companies are true global leaders. In an industry so large it was valued at \u201c3.6 trillion 2023\u201d and projected to reach \u201c6.9 trillion in……","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/sites.lsa.umich.edu\/mje\/wp-json\/wp\/v2\/posts\/4127","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sites.lsa.umich.edu\/mje\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sites.lsa.umich.edu\/mje\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sites.lsa.umich.edu\/mje\/wp-json\/wp\/v2\/users\/4678"}],"replies":[{"embeddable":true,"href":"https:\/\/sites.lsa.umich.edu\/mje\/wp-json\/wp\/v2\/comments?post=4127"}],"version-history":[{"count":1,"href":"https:\/\/sites.lsa.umich.edu\/mje\/wp-json\/wp\/v2\/posts\/4127\/revisions"}],"predecessor-version":[{"id":4129,"href":"https:\/\/sites.lsa.umich.edu\/mje\/wp-json\/wp\/v2\/posts\/4127\/revisions\/4129"}],"wp:attachment":[{"href":"https:\/\/sites.lsa.umich.edu\/mje\/wp-json\/wp\/v2\/media?parent=4127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sites.lsa.umich.edu\/mje\/wp-json\/wp\/v2\/categories?post=4127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sites.lsa.umich.edu\/mje\/wp-json\/wp\/v2\/tags?post=4127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}