Deregulatory push spurs shift of billions from EVs to gas cars

President Trump’s push to cut federal sales incentives and roll back emissions standards is shaping up to be a multibillion-dollar gift to Detroit's automakers as they shift investments into gasoline-fueled cars.

- BY DAVID WELCH, KEITH NAUGHTON AND KEITH LAING

FORD Motor Co. is moving funds from a canceled electric SUV to internal combustion engine vehicles.

General Motors Co. last week said it would cut electric-vehicle production plans at two factories as it overhauls a third plant to make gas-fueled pickups, instead of battery-powered trucks. Ford Motor Co. is moving funds from a canceled three-row electric SUV to future internal combustion engine vehicles and hybrids, while Jeep-owner Stellantis NV is resurrecting the thirsty Hemi V-8 engine.

Although not yet finalized, the deregulatory push is clearing the way for Detroit’s legacy automakers and their traditional rivals to reallocate billions of dollars earmarked for EVs and other costs linked to pollution rules. GM has spent $3.5 billion since 2022 purchasing so-called regulatory credits to help the company meet fuel economy and tailpipe emissions requirements — a less-needed currency if Trump's policies stick.

Ford has similarly cut its own credit-purchase commitments by nearly $1.5 billion this year alone, money it now plans to reallocate to gas-powered models and hybrids.

The shift “has the potential to unlock a multibillion-dollar opportunity over the next two years,” Ford Chief Executive Jim Farley recently told analysts.

Trump’s $3.4-trillion fiscal package sunsets the $7,500 tax credit for EV buyers on Sept. 30. It also zeroed out fines faced by automakers that fell short of fuel-economy mandates, negating the need to buy credits under those rules. Stellantis paid $190 million in penalties in each of the last two years.