Republicans debate safety features. OK, but let’s get basic.
Senate Challenges Auto-Safety Mandates
Please note Senate Committee to Challenge Auto-Safety Mandates That Hurt ‘Affordability’
Senate Republicans in January plan to criticize requirements for safety technology, such as automatic emergency braking and alarms to remind drivers that a child is in the back seat, arguing they are ineffective and will unnecessarily drive up the cost of cars, according to people familiar with the situation.
They aim to head off future requirements touted by safety advocates and argue instead for advancing autonomous vehicle technology.
Chief executives of Detroit’s three automakers and a senior Tesla executive have been summoned to appear at a hearing of the Senate Committee on Commerce, Science and Transportation—set for Jan. 14—to explain why vehicles have become so expensive. General Motors and Ford Motor are weighing whether to send their CEOs to the hearing, spokespeople said; Jeep-maker Stellantis declined to comment.
“Americans have been clear that they are hyper-focused on affordability,” Sen. Ted Cruz (R., Texas), who chairs the committee, said in announcing the hearing.
Vehicle safety advocates argue such mandates save lives and don’t go far enough when some 40,000 people a year die on American roads.
“Regulation is the best way to make sure everybody’s got this technology that’s highly effective,” said a spokesman for the Insurance Institute for Highway Safety.
Republicans on the committee plan to contend that the most effective vehicle-safety advancements—seat belts and steps to improve vehicle crashworthiness—occurred between the 1960s and 1980s, and that benefits have dwindled since, the people said. Safety technology, such as sensors, can be ineffective and costly to repair, they will argue.
One of the more controversial safety mandates is for auto-braking technology systems, which use sensors, cameras and software to detect potential crashes and automatically apply the brakes. NHTSA last year required automatic braking systems in new cars starting in 2029; automakers have tried to block the rule from taking effect, arguing NHTSA’s standards are impractical and could cause rear-end collisions by braking before drivers expect. The agency said this year that it was considering extending the deadline.
Ten Reasons Why Are Cars Expensive
- Union wages
- Tariffs on steel
- Tariffs on aluminum
- Tariffs on parts
- Tariffs on cars
- Import restrictions and quota limits
- Consumers love big cars
- Consumers want features
- EPA mileage and energy restrictions
- Somewhere towards the bottom of this list is safety features
I don’t doubt we may be over-regulating. But a focus on safety ignores the obvious.
What’s next? Is Cruz going to study why lollypops are sweet?
Trump In Action
Trump put big tariffs on steel, aluminum, and parts. He wants to bring manufacturing back to the US.
Union labor is much more expensive than labor in Mexico.
Trump put 25% tariffs on cars and certain parts imposed by the U.S. under a Section 232 national security provision.
Chinese electric vehicles (EVs) are subject to a 100% tariff, effectively doubling their cost and limiting their presence in the U.S. market.
The Budget Lab at Yale estimates the average overall increase at approximately $6,400 per vehicle.
Trump did roll back some tariffs, but not completely, and not on steel and aluminum.
Ripple Impact
If the price of cars and repairs go up, the price of insurance soon follows.
If the price of cars rise, the price of new cars usually follows.
Energy Credits
One thing Trump did on the plus side is kill the need for automakers to buy energy credits.
CNN reports Big savings from regulatory changes
While tariffs capture most of the headlines about government action, there’s been a less publicized windfall for automakers: the end of financial penalties for violating emissions standards.
In the past, automakers avoided fines for selling too many gasoline vehicles by purchasing so-called regulatory credits from companies that fell below emission standards, like electric vehicle maker Tesla.
But those penalties were eliminated in July’s tax and spending bill, saving the automakers billions. Ford CFO Sherry House told reporters last month it will no longer purchase the $2.5 billion worth of regulatory credits it had planned to buy in the future.
In fact, Ford announced it was increasing production of its F-150 and F-Series Super Duty in 2026 by more than 50,000 trucks to meet demand. GM also revealed plans to shift production of one of its Michigan plants from EVs, which have been losing money, to profitable gasoline powered vehicles.
The Squeeze
Bloomberg reports Auto Tariffs Threaten to Make Cars Less Affordable in the US
American drivers were already being squeezed before the tariffs landed. The average sticker price of a new passenger vehicle in the US was around $47,500 as of March, a 22% increase from five years earlier, according to data from valuation specialist Kelley Blue Book. As car prices have risen and high interest rates have made for expensive financing, delinquencies on auto loans were hovering near their highest level in more than 30 years in March.
And now import taxes have been added to the mix, threatening to drive vehicle prices up even further. Automakers and parts manufacturers can absorb some of the added costs, but in most instances, at least some of the extra expenses will eventually be passed on to consumers.
The impact could be particularly pronounced at the cheaper end of the market, as many of the least expensive models are built outside the US to maximize already-low profit margins. Ford, for example, assembles its Maverick compact pickup truck, which starts at $27,000, in Mexico, while GM ships its Buick Envista, which has a base price of $25,095, from South Korea.
Auto loan rejections surge as Gen Z Faces growing credit strain
On November 25, Car Dealership Guy reported Auto loan rejections surge as Gen Z Faces growing credit strain
Loan approval rates are dropping for U.S. car buyers, with Gen Z really feeling the pinch when it comes to securing financing for a vehicle.
The details: New data from the Federal Reserve Bank of New York reveals that the number of applicants denied auto loans has more than doubled in recent months, as more consumers struggle with credit challenges.
- 15.2% of those who applied for auto loans in October 2025 were rejected.
- In the second most recent study, released in June 2025, just 6.7% were rejected.
Ford CEO: China’s EV Costs, Tech, and Quality “Far Superior” to the West
On June 30, I noted Ford CEO: China’s EV Costs, Tech, and Quality “Far Superior” to the West
Ford’s affordable EV project faces Chinese competitors with 20 years of experience and intense government backing.
On May 4, I asked Would You Pay $15,000 for this Nice-Looking EV Toyota? Zoomers?
I am sure many would say yes, but there’s a catch.
The Toyota bZ3X is real, and it is actually on sale starting at that price. There is a catch: To buy one, you have to be in China.
On October 12, I commented US and Canada Have a New Spat Over Auto Tariffs
“Our relationship will never again be what it was,” said Canadian Prime Minister Mark Carney
My Suggestion
End all the tariffs on steel, aluminum, parts, and vehicles.
Remove all import restrictions and let Toyota and BYD import as many cars as they can sell.
Prices will drop.
