Ford, GM And Stellantis Jump After Trump Proposes Killing Biden Fuel Rules And Pledges Big Savings For Gas Vehicle Buyers

• Trump alleged in a press meeting on Wednesday that Biden era fuel economy standards put pressure on car prices. 
• Stellantis CEO Antonio Filosa, Ford CEO Jim Farley and John Urbanic, plant manager at General Motors Co.’s Orion, Michigan, facility, attended the event at the Oval office.
• The White House said in a statement that Trump is returning the standards to levels that can actually be met with conventional gasoline and diesel vehicles.

Shares of Ford, General Motors, and Stellantis ended higher on Wednesday after U.S. President Trump proposed rescinding the fuel economy rules implemented by former President Joe Biden alleging that they were “very expensive.”

NYSE-listed shares of Stellantis closed up 5% while Ford and GM stock closed 1% higher.

“It put tremendous upward pressure on car prices, combined with the insane electric vehicle mandate, Biden's burdensome regulations helped cause the price of cars to soar more than 25%,” Trump said, surrounded by representatives from Ford, Stellantis and General Motors.  

Stellantis CEO Antonio Filosa, Ford CEO Jim Farley and John Urbanic, plant manager at General Motors Co.’s Orion, Michigan, facility, attended the event at the Oval office. Shares of all three automakers traded in the green following the announcement.

Trump’s Proposal

The White House said in a statement that Trump is returning the standards to levels that can actually be met with conventional gasoline and diesel vehicles. Slamming Biden era rules, Trump said that they forced automakers to build cars using expensive technologies that drove up prices. He said that the new rules will save the consumer at least $1000 off the price of a new car.

Under the new proposal, the Trump administration is seeking to lower the fuel economy requirement for light-duty vehicles to 34.5 miles per gallon across model year 2031 vehicles, down from an average of about 50 miles per gallon targeted by the Biden administration.

Trump is also seeking to scrap a credit-trading system that allows EV makers like Tesla to sell the credits they earn for exceeding fuel economy standards to other automakers who fall short starting with model year 2028.

Trump alleged in a press meet that Biden-era fuel economy rules was a quest to end the gasoline powered car. The President also announced his intent to revoke Biden’s waiver to California enabling the state to enforce its stricter emission standards.

The Transportation Department proposal must now go through a formal rulemaking process. According to The White House, President Trump’s actions will save American families $109 billion in total over the next five years.

Ford CEO Jim Farley applauded Trump’s decision as “a victory for common sense and affordability.” The automaker reported an EBIT loss of $3.6 billion this year through the end of the third quarter from its model e segment dedicated to EVs.

Shares of EV makers Lucid, Rivian and Tesla, meanwhile, traded in the red after-hours. 

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