Source: site
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter.
With the passage and signing of the One Big Beautiful Bill Act, automotive and manufacturing groups were quick to point out how the action will benefit domestic production as well as encourage investment in the U.S.
While an electric vehicle advocacy group saw the act’s implementation as a setback for EV adoption, wider availability and growing affordability should preserve the momentum as consumers continue to seek alternative powered cars and trucks.
Here’s what industry groups are saying:
“Lots of smart policies in the reconciliation bill to keep the auto industry in America healthy and competitive,” John Bozzella, president and CEO of the group, said in a statement.
“The big one: the advanced manufacturing production credit (aka 45X). The Senate recognized this tax credit is working – bringing battery manufacturing back to the U.S. and supporting supply chains that bypass China,” said Bozzella. “By restoring the workability of this key credit and maintaining prohibitions against Chinese companies from credit eligibility, senators preserved billions in auto-related manufacturing investments and jobs.
“Also positive: The Senate protected ultra-wideband spectrum used by the auto industry for safety and convenience features,” he added. “And they declined to impose new fees on electric vehicles and batteries. That’s a debate that should occur when Congress takes up a highway bill in the future.
“We recognized Congress was likely to wind down the consumer EV credits (aka 30D and 45W) early,” Bozzella said. “The accelerated phaseout to September 2025 will be extremely challenging to EV adoption and hurt consumer affordability, especially as manufacturers and dealers right-size automotive inventories.
“Like I said, lots to like,” he said. “Not perfect but given the auto industry’s outsized impact on the country’s economic and national security, we appreciate the inclusion of these policies.”
“When leaders partner with manufacturers, good things happen for our country—because manufacturing is nonpartisan and bipartisan,” said Jay Timmons, president and CEO of the National Association of Manufacturers. “To invest in manufacturing is to invest in America—in communities in every state and of every size.
“While this bill passed on a party-line vote, manufacturers all across America, in red states and blue states, swing districts and safe districts, look forward to putting people to work, more factories into motion, more innovation into the market, more products onto our shelves and more prosperity into our communities. Taken together, this strengthens the hand of the United States on the world stage,” Timmons added. “That’s exactly what this bill helps to deliver.
“This Congress and this administration understand that a stronger manufacturing sector means a stronger America,” the statement continued. “We will continue to work with our nation’s leaders to realize and celebrate the benefits of a comprehensive manufacturing strategy that includes not only further tax reforms but also trade, energy, workforce development and modernized regulations.”
“[The] Specialty Equipment Market Association (SEMA) supported this bill because it provides much-needed tax certainty to American businesses and includes several key provisions that benefit SEMA’s member companies,” said the organization’s president and CEO Mike Spagnola. “I cannot stress enough how much of a win this is for the automotive aftermarket and the businesses who help it thrive.”
“The Association of Equipment Manufacturers applauds the U.S. Senate’s passage of the One Big Beautiful Bill (OBBB) Act — a historic bill that will strengthen U.S. manufacturing, providing the certainty in the tax code necessary for equipment manufacturers to innovate, invest, and create more family-sustaining jobs right here in America,” said Kip Eideberg, SVP of government and industry relations. “By extending and expanding the tax reforms from 2017, the OBBB will help equipment manufacturers build more in America, while also bolstering our global competitiveness.”
“These measures in the tax bill are of great importance, especially to vehicle suppliers who represent the largest sector of manufacturing jobs in the country with more than 932,000 associates,” said President and CEO Bill Long. “The ‘One Big Beautiful Bill’ renews central items from the 2017 Tax Cut and Jobs Act (TCJA) and provides critical certainty for suppliers on several business provisions by making them permanent. This measure enhances national tax policy, a cornerstone of U.S. manufacturing competitiveness.”
“Autos Drive America appreciates the important work of the House and Senate over these past months and strongly supports the permanent, pro-growth provisions in the tax reconciliation package,” President and CEO Jennifer Safavian, said in a statement. “While we recognize the bill’s provisions to phase out key EV tax credits and impose new limits on manufacturing incentives, it’s essential that the U.S. remain a global leader in next-generation vehicle technologies.
“Autos Drive America is committed to working with Congress and the Trump administration to advance practical, forward-looking policies that support continued investment in American jobs, innovation, and supply chains, and ensure the U.S. remains a global leader in automotive manufacturing,” she said.
“Batteries and electric vehicles are the future. Nearly every major automotive CEO agrees with this sentiment, and it has been publicly echoed by many of the elected officials who voted to pass the legislation,” ZETA Executive Director Albert Gore said in a statement. “Global sales of passenger EVs have increased nearly 800% over the last seven years and now represent more than a quarter of global car sales.”
”While this bill does significant harm to the speed at which the EV and battery sector can continue to scale up capacity in the United States, it will not stop the progress we have made in a very short timeframe,” said Gore.
“Our future is not dictated by the latest political headwinds, but by the strength of our products, the confidence of our customers, and the importance of maintaining American auto dominance in an increasingly competitive global market,” he said.
Recommended Reading