How the election impacts the automotive industry
- With a Republican win in the U.S. presidential election, we are anticipating a policy agenda that will prioritize U.S. economic interests, particularly in the form of increased tariffs from China, which would likely continue the acceleration of manufacturing nearshoring and friendshoring.
- There is uncertainty around the impacts environmental policies of a Trump administration may have on the pace of U.S. transition toward electric vehicles (EV). A change from current governmental policy around electrification could move production trends toward internal combustion engines (ICE), which involve more freight-generating components. With EU and U.S. environmental policies potentially diverging, automotive manufacturers with high levels of connectivity or production in Europe could be faced with critical supply chain and investment strategy decisions to meet stricter EU standards.
- With the automotive market heavily tied to East Coast ports, Hurricanes Helene and Milton resulted in increased spot pricing in and out of the Southeast. These increases have mostly tapered down, although some inbound and local pressures persist due to infrastructural damage and recovery.
- Hybrid acquisitions are on the rise again, and market indications signal an increased demand for electric vehicles as we enter 2025.
- Decarbonization targets are approaching for multiple EU manufacturers, with 50–60% electronic vehicle manufacturing requirements for 2025 and a goal to be 100% EV by 2030.
- With a strike deadline on the East and Gulf Coasts in mid-January, manufacturers are advancing shipping early and continuing to explore contingency plans in the event of another labor stoppage.
This helped me