As political agendas shift dramatically between presidential administrations, the auto industry finds itself repeatedly whiplashed by inconsistent regulations. On this episode of CBT Now, Jim Fitzpatrick speaks with Brian Finkelmeyer, Senior Director of Enterprise Insights and Advisory at Cox Automotive, about his latest piece, Politicians Beat the Auto Industry Like a Pinata—It Deserves Better. Finkelmeyer outlines how back-to-back, conflicting policies from the Biden and Trump administrations have placed auto manufacturers and dealers in a state of uncertainty, raising serious questions about future profitability, compliance, and strategic direction.
Finkelmeyer argues that the automotive industry has become a political football, suffering from unpredictable and conflicting policy swings. Under President Biden, automakers were pushed aggressively toward electrification, backed by initiatives like the Inflation Reduction Act and a pledged $7.5 billion investment into EV charging infrastructure.
However, according to The Washington Post, the outcome has fallen short—only seven charging stations were built, far below expectations. Unrealistic regulatory goals followed, such as increasing fleet-wide fuel economy from 27 mpg today to 52 mpg by 2030, putting traditional automakers at a disadvantage while allowing electric-only brands like Tesla to profit from emissions credit sales—$3 billion of Tesla’s $12 billion net income last year came from these credits.
In contrast, the return of President Trump ushered in a new era of tariffs, purportedly to fight fentanyl and secure the border, but with unclear consequences for carmakers and dealers. Dealers are now questioning whether Trump is a friend or foe to the industry. Some manufacturers, like Range Rover, have halted vehicle shipments due to new tariff costs—up to $25,000 per unit. Finkelmeyer notes that while retail prices haven’t moved significantly yet, many automakers are in “wait-and-see” mode.
Dealers, meanwhile, are feeling the squeeze and reevaluating their strategies. With new car uncertainty, used car values are rising at Mannheim, and more dealers are shifting focus to used inventory, parts, and service. Brands with more import dependency could suffer more than domestic-centric rivals—creating local disparities even across the same street.
Still, Finkelmeyer remains confident in the industry’s resilience. He recalls how dealers adapted through the 2008 recession, the COVID pandemic, and the microchip shortage—each once considered a crisis, now viewed as a navigable challenge. Dealers used the pandemic as a wake-up call to streamline operations, trim redundancies, and evolve. Combined with entrepreneurial agility, these efficiencies may again see them through.
“It just feels like this whiplash that only a pinata could appreciate—being banged one way and now being hit another way by the two major political parties in this country.” – Brian Finkelmeyer.
