SEMA is excited about the EPA's decision to eliminate car emission regulations, while automakers are celebrating the 'vehicle choice'.

      Getty Images

      Subscribe to The Drive’s daily newsletter for the latest in car news, reviews, and features.

      On Tuesday, EPA Administrator Lee Zeldin announced that the United States Environmental Protection Agency will effectively revoke its legal authority to regulate carbon emissions from the automotive sector. Zeldin stated that he intends to officially rescind a crucial 2009 declaration which claimed that greenhouse gas emissions were a threat to public health and allowed the agency to oversee their regulation. If this move is finalized, it would eliminate the established emission limits for passenger vehicles and trucks, potentially transforming the new car market and significantly impacting the aftermarket.

      Zeldin hinted at the announcement during an interview on the Ruthless podcast and later elaborated on it at an event with a truck dealer in Indianapolis. He described it as potentially "the largest deregulatory action in the history of the United States," a claim that is difficult to dispute.

      “With this proposal, the Trump EPA is seeking to end 16 years of uncertainty for both automakers and American consumers,” Zeldin commented. “In our discussions, many stakeholders have expressed that the Obama and Biden EPAs misinterpreted the law, overlooked precedents, and distorted science to reach their desired outcomes, causing American families to incur hidden taxes totaling hundreds of billions of dollars annually. We clearly heard the concerns that the EPA's GHG emissions standards, rather than carbon dioxide—which was never independently evaluated—were the actual threat to Americans’ livelihoods. If this proposal is finalized, the repeal of the Endangerment Finding and its associated regulations would eliminate a trillion dollars or more in hidden taxes on American businesses and families.”

      This development is significant for automotive manufacturers as well as third-party performance part developers.

      I reached out to the Specialty Equipment Manufacturers Association (SEMA) for their reaction to the EPA's plan, and they expressed considerable enthusiasm. This is not unexpected, as many of the companies SEMA represents have had ongoing challenges regarding government enforcement of the Clean Air Act and have openly opposed electric vehicle production mandates linked to EPA emissions standards.

      “For years, we’ve observed the damage done by the 2009 'endangerment' finding, particularly how it has been wielded by the EPA under previous administrations and by California to enforce electric vehicle sales and to prohibit internal combustion engine vehicle sales,” SEMA stated. “ICE vehicles are fundamental to the lives of American families, small businesses, and automotive enthusiasts, and banning them undermines the American way of life.

      “SEMA appreciates Administrator Zeldin and the Trump Administration’s pursuit of common-sense reforms that prioritize the American public and our nation's economy. This announcement represents a major policy change that ensures vehicle choice and counters the coordinated efforts of unelected policymakers and environmental organizations to control the types of vehicles Americans can drive.”

      I also reached out to the Alliance for Automotive Innovation, which advocates for companies like BMW, Ford, Stellantis, Toyota, and Volkswagen, among others. President and CEO John Bozzella provided this comment:

      “We are analyzing today’s announcement regarding the endangerment finding to understand its implications for U.S. vehicle emissions regulations moving forward. Concurrently, it is clear that the vehicle emissions regulations established under the previous administration are unattainable and need to be adjusted to reflect present market realities, to maintain competitiveness in the American auto industry and to ensure continued vehicle choice and lower emissions.”

      If you’ve been following the industry, the terms “vehicle choice” or “customer choice” have become the favored euphemism for “We want to continue producing gas-powered cars because that’s what sells, and we can't afford to lose money on EVs.” While some executives in major automotive companies may genuinely believe in the necessity of developing all-electric product lines for environmental reasons, it’s important to remember that these companies are massive entities. They are not likely to opt for unprofitable paths, such as investing billions over decades to develop affordable EVs or a practical fast-charging infrastructure, unless compelled to do so. The U.S. market remains incredibly significant for these major companies, especially as China’s market favors its own products and their global EV efforts are impacting sales across the board.

      One intriguing possibility is that this change could lead to a rise in hybrid powertrains, as companies might channel electrification resources and expertise into a technology that many consumers are interested in and that generates profit. This seems more plausible than a surge of new naturally aspirated V8 models. Furthermore, since a different administration could potentially reverse course in just a few years, this timeframe may not be sufficient for automakers to implement substantial long-term changes. The most immediate outcome might be that we see certain cars that were set to cease production soon continue to be manufactured.

      Regardless, if the EPA is genuinely signaling to automakers that it can pursue whatever approach it wishes, even if only temporarily, things are likely to get unpredictable.

      Have a tip or question for the author? Contact them directly at [email protected].