Propulsion Strategies for the 21st Century: Dealing with Radical Changes in US Policies

Keywords:

Abstract:

The US auto industry has been challenged to meet government regulations as far back as the 1960s with the creation of the Environmental Protection Agency for vehicle emissions, and National Highway Transportation Safety Administration for vehicle safety and fuel economy. For internal combustion engines, this usually meant meeting planned incremental improvements over time. But with the introduction of climate change into the emissions equation and the need for faster improvements, as well as the technological breakthroughs in batteries for electric vehicles, government regulations sped up the goals auto manufacturers and suppliers must meet in shorter timeframes.
The Obama and Biden administrations used a variety of carrots and sticks to motivate manufacturers to meet stricter goals, while the two Trump administrations, in their denial of climate change, reduced or eliminated regulations, especially for emissions and fuel economy. So, manufacturers and suppliers have also had to manage two radically different approaches where executives of global manufacturers have had to balance dramatic changes in US policies compared to the consistent policies in China and the relatively consistent policies in the EU.

With this history in place, our research is based on our 2026 Propulsion Strategies for the 21st Century survey of propulsion experts that focuses on what auto manufacturers and suppliers think propulsion systems will look like in 2030 and 2035, how they see the current regulations affecting their business, what the current state of EVs is in the US, and what technology improvements we should expect for internal combustion systems. The results will show how companies are managing their propulsion system portfolios in the US, despite the radical changes in regulations they are experiencing and may continue to experience under a new administration.