Auto Dealers to President-Elect Trump: ‘Let Consumers Drive the Market, Not Mandates’

The resolution of the last U.S. presidential election has buoyed not only consumer optimism but also auto dealers’ hopefulness. That’s evidenced by the 5,000 dealers who signed a letter to President-elect Donald Trump asking him to reconsider aggressive EPA and CARB (California Air Resources Board) mandates.

The group contends the increased EV production that mandates set far outpace consumer demand. The growing surplus of EVs on dealer lots, alongside robust demand for internal combustion engines (ICE) and hybrid vehicles, may be phased out to meet regulatory requirements.

“The consumer demand is just not there,” Mickey Anderson, president and chief executive officer, Baxter Auto Group, Omaha, NE, tells WardsAuto. “We’re not against EVs – we’re against ignoring what consumers actually need.”

EV adoption has lagged because of high prices, insufficient charging infrastructure and limited practicality in cold climates and rural areas. Anderson, a founder of the group spearheading the conversation with the new administration, contends the government’s EV mandates create a disconnect that risks destabilizing the automotive market and disproportionately impacting economically disadvantaged Americans.

Anderson, the other seven founding members and the approximately 5,000 coalition members warn of unintended consequences if mandates persist. As ICE options dwindle, prices for both new and used ICE vehicles are expected to rise, making them less accessible. This “inflationary tax” on transportation could hit low-income Americans hardest, limiting their ability to purchase reliable vehicles and potentially curtailing their access to work and childcare, Anderson says.

The Growing Divide

Dealers report a surplus of EV inventory despite deep federal and state incentives, manufacturer discounts and dealer pricing strategies. By year-end 2024, EV sales are expected to account for only about 9% of the market – a far cry from the targets driving current production quotas.

At the heart of the issue, Anderson and the group say, is the shift from consumer-driven production to government mandates. “Historically, the industry has always responded to consumer demand, whether it was for a minivan, an SUV or even specific colors,” Anderson says. “This top-down approach is unprecedented and untenable.”

CARB States’ National Impact

While EPA mandates pose challenges, the coalition views CARB states’ aggressive timelines as an even greater concern. CARB states, which include large markets like California, New York and Washington, require automakers to meet stricter emissions standards, effectively dictating production for the entire country.

“It’s nearly impossible for manufacturers to build state-specific product portfolios,” Anderson says. “So even states not following CARB’s mandates will feel the ripple effects as ICE options shrink nationwide.”

A Call for Balance

Anderson insists dealers are technology-neutral, ready to sell whatever vehicles consumers demand. However, they maintain that policy should align with market realities.

“Build the cars customers want to buy – that’s our only ask,” Anderson says.

As the debate over EV adoption intensifies, the coalition hopes policymakers will consider a more phased approach, giving infrastructure and consumer interest time to catch up with production.

“The American auto industry is core to the nation’s economy and identity,” the dealer concludes. “We owe it to consumers to let them decide what works for their lives and their budgets.”