The Trump administration has decided to end a tax credit for automakers who install the Start/Stop system in their vehicles, a move that could alter the future of car production in the U.S. The Start/Stop system cuts off a vehicle’s engine when it stops, for example, at a red light or in traffic. This technology is known to reduce fuel consumption and greenhouse gas emissions.
However, the system has been controversial, with critics arguing that it raises the cost of new vehicles and leads to frequent breakdowns. According to the Environmental Protection Agency (EPA), the system is “virtually universally hated,” with some drivers complaining about repeated failures when restarting the engine, relays CBS News.
Environmental Impact and Economic Concerns
The tax credit removal is part of a broader effort by the Trump administration to roll back environmental regulations. Although the system offers environmental benefits, such as reducing fuel consumption by up to 26%, the administration has argued that it contributes to the high price of new cars.
The cost of a new vehicle has risen sharply in recent years, with the average price now approaching $50,000, up nearly 43% compared to a decade ago. By eliminating the tax credit, the administration claims that consumers could save an average of $2,400 when purchasing a new car, reports BFMTV.
Automakers’ Support for the Decision
The decision has been welcomed by major automakers, including Ford and Stellantis. Ford expressed support for the move, stating it would help balance the current emissions standards with consumer choice.
Stellantis added that it would allow manufacturers to offer a wider range of vehicles, including electric, hybrid, and internal combustion engine models, which they argue better cater to the needs and budgets of American consumers. The move is also seen as part of a broader trend of deregulation under the Trump administration, which has sought to relax emissions standards for vehicles and power plants.
