Vehicle lightweighting could decrease amid tariff changes, nixing of EV incentives
Ducker Carlisle reports that the Trump administration’s “One Big Beautiful Bill” will likely “extend far beyond regulatory compliance,” and into the materials and processes used to manufacture vehicles.
“With consumer EV incentives stripped away and federal agencies signaling a freeze on vehicle efficiency rules, the U.S. market faces a slowdown in both electrification and lightweight material adoption,” a recent Ducker Calisle whitepaper states.
It adds that OEMs could potentially use less magnesium, aluminum, and composites, slowing the growth trajectory for innovative solutions that do.
“OEMs may choose to extend platform lifecycles, and this may lead them to revert to lower cost and heavier internal combustion engine (ICE) platforms,” the paper says. “While EVs and global OEM programs may continue to support lightweighting trends and electrification, the U.S. market’s reduced regulatory pressure may lead to stagnation in lightweighting needs.”
The paper notes the U.S. increase in Section 232 tariffs on imported steel and aluminum to 50%, dubbing the increase “a material cost headwind that will factor into OEM lightweighting vs. steel tradeoffs.”
“OEMs increase competitiveness with design, innovation, safety, improved fuel economy, and reduced environmental impact,” it states. “The emission aspects are largely driven by continuously stricter fuel economy and greenhouse gas (GHG) standards. This combination of competitiveness and norms encourages OEMs [in] reducing vehicle weight and improving fuel efficiency or extending EV range. However, with CAFE [Corporate Average Fuel Economy] penalties eliminated and EPA tailpipe rules in limbo, the financial and regulatory drivers that justified the higher cost of lightweighting are now weakened.”
CBT News reports that a new Center for Automotive Research (CAR) report has found that the new tariff plan could cost the U.S. auto industry $188 billion over the next three years.
“To put that into perspective: that’s more than the combined market value of General Motors, Ford, Stellantis, Honda, and Mazda,” the article states. “In other words, five of the world’s biggest car companies combined. This year alone, CAR says automakers will be paying $56 billion in added costs just from tariffs. That number rises to $61 billion in 2026… and $72 billion in 2027.”
Automotive News reports that the new duties on vehicles, parts, steel, and aluminum are expected to cost the industry about $4,600 per vehicle by 2027, which “are forcing companies to rethink supply chains and reevaluate their product and investment plans to minimize tariff exposure.”
The article states that Stephanie Brinley, associate director of AutoIntelligence at S&P Global Mobility, said automakers might consider buying heavier parts from suppliers to save money.
“When you throw in not having as much of a regulatory fuel efficiency push, you could see components change,” Brinley said during a Sept. 11 panel at the Automotive News Congress, according to the article. “Maybe lightweighting is, for a minute, slightly less important than it was.”
The article adds, “Still, automakers and suppliers could face long-term risks if they turn away from lightweighting to save money in the short term. Not only could the next administration choose a different regulatory path than Trump, but U.S. companies risk becoming less competitive globally.”
Images
Featured image: studio-fi/iStock