The state of Michigan is consistently ranked as a top state for automotive industry and electric vehicle investments. As President Donald Trump takes office, some changes to the auto industry in the state are expected. Trump, who has previously opposed electric vehicle incentives, kicked off the beginning of his administration Monday with broad changes to previous Biden administration policies on the topic.
One of Trump’s immediate changes includes rescinding former President Joe Biden’s 2021 executive order on strengthening U.S. leadership in clean car and truck manufacturing. Among other actions, this policy had set a goal for half of all new passenger cars and light trucks sold in 2030 to be zero-emission vehicles.
The Environmental Protection Agency also laid out pollution standards in March 2024 for vehicle model years 2027 and beyond in efforts to improve air quality.
Stephanie Valdez Streaty, director of industry insights at Cox Automotive, said Michigan has seen a lot of federal investment in clean energy and EV production from the Inflation Reduction Act of 2022. She said funds that have not been allocated in Michigan could be vulnerable to changes under the Trump administration.
“A lot of the IRA investment has gone to the south and also Michigan has received a lot of that funding,” Valdez Streaty told Michigan Public. “So I think, you know, that funding that hasn't been allocated or put into operation could be vulnerable. So that could impact just kind of the projection or the impact on jobs in EV sector and related supply chains around EV manufacturing in Michigan and in other states as well.”
Trump said in September at the Economic Club of New York that he would “rescind all unspent funds under the misnamed Inflation Reduction Act.”
Demand for electric vehicles in Michigan and throughout the U.S. could change. The IRA authorizes a credit of up to $7,500 for those who qualify and buy a new plug-in EV or fuel cell electric vehicle. Without this incentive, EVs would become less affordable to consumers and demand may fall.
The state of Michigan also receives funding from the National Electric Vehicle Infrastructure Formula Program. The federal program is aimed at providing funding to states for EV charging infrastructure and create an interconnected electric vehicle network.
In an email to Michigan Public, Jeff Cranson, director of public affairs at the Michigan Department of Transportation, wrote that it is unknown to state officials at this time whether the funding will be taken away.
“I’m told it is too early to tell how this will affect MDOT because there has been no specific guidance to MDOT officials from federal agencies,” Cranson said. “The hope is that the funds already obligated will not be clawed back.”
Valdez Streaty also mentioned federal funding has been given directly to automakers in Michigan, such as a $500 million grant to General Motors’ Lansing plant in July 2024.
“Michigan received a lot of money from the Department of Energy to retool existing factories for production, just building out EV infrastructure,” Valdez Streaty said.
Although sales of EVs have increased in recent years, they still make up a small percentage of the market share of vehicles in Michigan.
