Ohio’s New Sen. Moreno Calls EV Tax Credit ‘Catastrophically Stupid’
On a spirited November day, Republican Senator-elect Bernie Moreno electrified supporters at the Brecksville Community Center in Ohio, declaring his mission for the Senate: to establish himself as the “car czar” in the upcoming Trump administration.
With a storied past as a luxury car dealer, Moreno recently triumphed over Democrat Sherrod Brown in a critical battleground state known for its manufacturing prowess. And he’s setting his sights on a bold ambition: dismantling the electric vehicle tax incentives that many believe are pivotal for American drivers.
“The $7,500 incentive? It’s catastrophically misguided,” Moreno stated emphatically during the CNBC CFO Council Summit in Washington, D.C. His stance has sparked a fiery debate. While some lawmakers, like Michigan’s Elissa Slotkin, champion these credits as a shield for the U.S. auto industry against fierce competition from China, Moreno firmly rejects this narrative.
“If we don’t dictate what companies should do, then let the market thrive,” Moreno urged. “If electric vehicles are the choice of the consumer, then fantastic! But let the people decide, not the government.”
Moreno countered the argument that ditching these incentives would hand over a crucial technological advantage to China. “If they’re ahead in EVs, great! We’re still leading the charge in combustion and hybrid technologies,” he asserted. “Let’s focus on where we have the upper hand instead of giving away our strengths.”
He believes that consumers have already voiced their preferences loud and clear. “There’s never been a time where consumer choice has been clearer. If an EV fits your lifestyle, go for it! But for many, it’s simply not what they want,” Moreno emphasized.
The once-thriving excitement around electric vehicles has started to fade among major auto manufacturers. Industry giants like Ford and General Motors, along with others such as Mercedes-Benz and Volkswagen, are recalibrating their strategies, pulling back on ambitious EV plans in favor of a balanced lineup that includes gas-powered vehicles and hybrids.
“The surge we witnessed in 2021 and 2022 was fleeting,” remarked Marin Gjaja, Ford’s EV unit COO. “While we still see growth, it’s not on the scale we once anticipated.”
As the landscape shifts, Moreno advocates for a market-driven approach: “We need to create a favorable environment for automakers without excessive government oversight. Let the marketplace operate freely, and it will naturally adapt to what consumers desire.”
