Bernie Moreno, a former car dealer who has now become the Senator-elect in Ohio, is on a mission to establish himself as the key figure in the Senate regarding the automotive industry. Under the second Trump administration, he aims to make significant impacts. At the CNBC CFO Council Summit in Washington, D.C., he expressed his views on various automotive policies.

Eliminating the EV Tax Credit

Moreno firmly opposes the $7,500 EV tax credit created by the Biden administration. He believes that consumers and automakers should have the freedom to decide what cars to buy or build. The anticipated shift to EVs has not fully materialized, and auto makers are now focusing on a more balanced car lineup. Moreno sees the tax credit as a misguided measure. He told CNBC D.C. Correspondent Emily Wilkins that at the end of the day, it is a catastrophically stupid incentive. Some senators, like Michigan’s Elissa Slotkin, have framed their support of the tax credit as a defensive move, but Moreno considers this position as nonsense. He emphasizes that the government should not dictate to companies what to do and how to have a strategy. Instead, he advocates for letting the markets work. 2: Moreno believes that if the government does not interfere, the marketplace will naturally decide what kind of cars people should drive. If it is electric, that's great. He also pushed back against the argument that reversing Inflation Reduction Act incentives like the EV tax credit would cede the technology race to China. He pointed out that if China is ahead in EVs, it's good for them, and the U.S. is ahead in combustion and hybrids. As a country, he questions where the industry should go and argues that it should be based on strategic advantages rather than handing an industry over to China.

The Impact on Auto Makers

Major auto manufacturers have seen the euphoria surrounding EV investment and sales fade. Companies like Ford Motor, General Motors, Mercedes-Benz, Volkswagen, Jaguar Land Rover, and Aston Martin have announced plans to scale back or delay some electric vehicle plans. While electric vehicle sales are still expected to increase in the coming years, the boom in consumer demand that many car CEOs expected never fully materialized. Marin Gjaja, chief operating officer for Ford’s EV unit, noted that the demand for EVs took off in 2021 and 2022 but is now growing at a slower rate than initially expected. Instead, automakers are shifting their focus to a more mixed offering of vehicles with a combination of gas-powered cars, hybrids, and EVs. Moreno believes that by creating a good tax and regulatory environment and a strong workforce, the marketplace will take care of things. 2: This shift in focus shows that auto makers are realizing the need for a more balanced approach. They understand that not all consumers are ready or willing to embrace electric vehicles. By offering a variety of vehicle options, they can meet the diverse needs of the market. Moreno’s stance on letting the marketplace work reflects this understanding and his belief in the power of free markets to drive the automotive industry forward.

Moreno's Vision for the Automotive Industry

Moreno's vision goes beyond just opposing the EV tax credit. He wants to create an environment where car companies can thrive. He emphasizes the importance of a good tax environment, a good regulatory environment, and a strong workforce. By providing these conditions, he believes that the automotive industry will naturally evolve and adapt. He sees himself as the "car czar" who can guide the industry in the right direction. His approach is based on the belief that the marketplace knows best and that government intervention should be minimized. 2: Moreno's journey from a car dealer to a Senator-elect gives him a unique perspective on the automotive industry. He understands the needs and challenges of both consumers and automakers. His vision for the industry is one that promotes innovation, competition, and choice. By allowing the marketplace to work, he hopes to bring about a sustainable and prosperous automotive future.