Senator Bernie Moreno, a former car dealer, joins us on this special edition of Inside Automotive to outline the Trump administration’s “freedom means affordable cars” proposal, which emphasizes changes designed to make vehicles more affordable for consumers and support domestic dealerships and manufacturers.
According to Moreno, the plan eliminates EV mandates, resets Corporate Average Fuel Economy (CAFÉ) standards, and removes EV subsidies. Moreno said these actions reduce regulatory costs that previously forced higher prices on vehicles Americans want to buy. He highlighted that federal standards now unify emissions regulations nationwide, ending California’s separate mandates.
Moreno emphasizes the importance of consumer choice, arguing that the government should not dictate which vehicles buyers select in showrooms. The proposal includes interest deductions on car loans, a policy designed to encourage vehicle purchases while also supporting domestic manufacturing.
“The average age car is now over 14 years,” Moreno said. Further adding, “That means we have to make newer cars more affordable, and if we do that, guess what? They’re safer and better for the environment. Those are the things that we have to focus on.”
On trade and tariffs, Moreno said recent agreements with the UK, Europe, Korea, and Japan have created certainty for automakers, while U.S.-assembled vehicles benefit from a 3.75% MSRP offset. He noted some models currently manufactured overseas may be brought to U.S. plants, supporting domestic production and high-paying auto jobs.
"I am going to put it right here, in December 2025, that we will hit a 17 million SAAR in 2026."
Looking to 2026, Moreno predicts strong industry performance, citing pent-up demand from older vehicles and the impact of affordability measures. He projects U.S. auto sales could reach 17 million units, supported by lower interest rates and broader consumer incentives such as tax credits and no tax on tips or overtime.
Nevertheless, Moreno emphasized that dealerships and OEMs benefit not only from increased affordability but also from clearer market rules and reduced regulatory burdens.
