Automotive
‘Fundamentally Wrong’: Virginia Heads For Exit Ramp After Adopting California’s ‘Out-Of-Touch’ EV Rules

From the Daily Caller News Foundation
By NICK POPE
Virginia is ditching rules that would have mandated 100% of new car sales to be electric vehicles (EVs) by 2035.
Under former Democratic Virginia Gov. Ralph Northam, the state enacted a law in 2021 that hitched it to California’s stringent vehicle emissions standards, the latest version of which will require the phase-out of internal combustion engine models by 2035. Current Republican Gov. Glenn Youngkin and his administration announced Wednesday that Virginia will not be following California’s new regulations once the current set expires at the end of the year.
“Once again, Virginia is declaring independence – this time from a misguided electric vehicle mandate imposed by unelected leaders nearly 3,000 miles away from the Commonwealth,” Youngkin said in a statement. “The idea that government should tell people what kind of car they can or can’t purchase is fundamentally wrong. Virginians deserve the freedom to choose which vehicles best fit the needs of their families and businesses. The law is clear, and I am proud to announce Virginians will no longer be forced to live under this out-of-touch policy.”
Once again, Virginia is declaring independence – this time from a misguided electric vehicle mandate imposed by unelected leaders nearly 3,000 miles away from the Commonwealth.
— Governor Glenn Youngkin (@GovernorVA) June 5, 2024
Youngkin has opposed the policy because “California’s requirements for their citizens should not be a one size fits all solution for Virginia,” the governor’s staff previously told to the Daily Caller News Foundation. Previous efforts by state Republicans to repeal the law linking Virginia to California’s standards failed, and legislative avenues to get rid of the rules closed when Democrats cemented control of the state legislature in last fall’s elections.
The governor’s office cited a legal opinion by Republican Virginia Attorney General Jason Miyares to substantiate its decision. Miyares’ opinion asserted that the state is not obligated to abide by the California Air Resource Board’s (CARB) Advanced Clean Cars II rules, which would have taken effect at the beginning of 2025 and required EVs to make up 35% of all new car sales starting in model year 2026 on the way to 100% by 2035.
“Given that EVs only amounted to 9% of vehicles sold in Virginia in 2023, application of the misguided mandates could have resulted in hundreds of millions of dollars in penalties,” Youngkin’s office said in the official announcement. “Virginia auto consumers and dealers could be forced to bear these costs. Not only would this leave auto dealers with less money to pay staff, offer raises, and grow their businesses, it could force many small auto dealers to permanently close their doors.”
Numerous Democrat-leaning or blue states have adopted CARB’s auto emissions standards, which are more stringent than federal standards, according to The Wall Street Journal.
Neither CARB nor the office of Democratic California Gov. Gavin Newsom responded immediately to requests for comment.
Automotive
Canadians’ Interest in Buying an EV Falls for Third Year in a Row

From Energy Now
Electric vehicle prices fell 7.8 per cent in the last quarter of 2024 year-over-year, according to the AutoTader price index
Fewer Canadians are considering buying an electric vehicle, marking the third year in a row interest has dropped despite lower EV prices, a survey from AutoTrader shows.
Forty-two per cent of survey respondents say they’re considering an EV as their next vehicle, down from 46 per cent last year. In 2022, 68 per cent said they would consider buying an EV.
Meanwhile, 29 per cent of respondents say they would exclusively consider buying an EV — a significant drop from 40 per cent last year.
The report, which surveyed 1,801 people on the AutoTrader website, shows drivers are concerned about reduced government incentives, a lack of infrastructure and long-term costs despite falling prices.
Electric vehicle prices fell 7.8 per cent in the last quarter of 2024 year-over-year, according to the AutoTader price index.
The survey, conducted between Feb. 13 and March 12, shows 68 per cent of non-EV owners say government incentives could influence their decision, while a little over half say incentives increase their confidence in buying an EV.
Automotive
Hyundai moves SUV production to U.S.

MxM News
Quick Hit:
Hyundai is responding swiftly to 47th President Donald Trump’s newly implemented auto tariffs by shifting key vehicle production from Mexico to the U.S. The automaker, heavily reliant on the American market, has formed a specialized task force and committed billions to American manufacturing, highlighting how Trump’s America First economic policies are already impacting global business decisions.
Key Details:
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Hyundai has created a tariffs task force and is relocating Tucson SUV production from Mexico to Alabama.
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Despite a 25% tariff on car imports that began April 3, Hyundai reported a 2% gain in Q1 operating profit and maintained earnings guidance.
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Hyundai and Kia derive one-third of their global sales from the U.S., where two-thirds of their vehicles are imported.
Diving Deeper:
In a direct response to President Trump’s decisive new tariffs on imported automobiles, Hyundai announced Thursday it has mobilized a specialized task force to mitigate the financial impact of the new trade policy and confirmed production shifts of one of its top-selling models to the United States. The move underscores the gravity of the new 25% import tax and the economic leverage wielded by a White House that is now unambiguously prioritizing American industry.
Starting with its popular Tucson SUV, Hyundai is transitioning some manufacturing from Mexico to its Alabama facility. Additional consideration is being given to relocating production away from Seoul for other U.S.-bound vehicles, signaling that the company is bracing for the long-term implications of Trump’s tariffs.
This move comes as the 25% import tax on vehicles went into effect April 3, with a matching tariff on auto parts scheduled to hit May 3. Hyundai, which generates a full third of its global revenue from American consumers, knows it can’t afford to delay action. Notably, U.S. retail sales for Hyundai jumped 11% last quarter, as car buyers rushed to purchase vehicles before prices inevitably climb due to the tariff.
Despite the trade policy, Hyundai reported a 2% uptick in first-quarter operating profit and reaffirmed its earnings projections, indicating confidence in its ability to adapt. Yet the company isn’t taking chances. Ahead of the tariffs, Hyundai stockpiled over three months of inventory in U.S. markets, hoping to blunt the initial shock of the increased import costs.
In a significant show of good faith and commitment to U.S. manufacturing, Hyundai last month pledged a massive $21 billion investment into its new Georgia plant. That announcement was made during a visit to the White House, just days before President Trump unveiled the auto tariff policy — a strategic alignment with a pro-growth, pro-America agenda.
Still, the challenges are substantial. The global auto industry depends on complex, multi-country supply chains, and analysts warn that tariffs will force production costs higher. Hyundai is holding the line on pricing for now, promising to keep current model prices stable through June 2. After that, however, price adjustments are on the table, potentially passing the burden to consumers.
South Korea, which remains one of the largest exporters of automobiles to the U.S., is not standing idle. A South Korean delegation is scheduled to meet with U.S. trade officials in Washington Thursday, marking the start of negotiations that could redefine the two nations’ trade dynamics.
President Trump’s actions represent a sharp pivot from the era of global corporatism that defined trade under the Obama-Biden administration. Hyundai’s swift response proves that when the U.S. government puts its market power to work, foreign companies will move mountains — or at least entire assembly lines — to stay in the game.
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