What Does Obama Re-election Mean for US Autos' Future

America's voters might have re-elected President Obama, but investors appear not to be as happy. As of this writing the DOW is down about 2%, and the NASDAQ is down roughly the same. But what does the re-election mean for the American auto industry?

For one thing, President Obama's win all but guarantees that all cars in the US will face stronger emissions guidelines in the future. Obama has been pushing a plan to gradually increase the US's corporate average fuel economy rating to 54.5mpg by 2025, and now it appears that will not change at least through the end of President Obama's second term in 2016. 

The US government also still holds 500 million shares of General MotorsGMUnited States of America, 1998 > present8 models
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stock and expect the controversy about what to do with them continue. Mitt Romney had said that he would immediately sell the shares, but President Obama's administration has been waiting until the stock gains more value before selling it off. At what level of profitability to sell, has been a major point of debate. 

The President also has a goal of having 1 million plug-in electric cars on the road by 2015. With the campaign behind him and no worries of another one, it is expected that he will work even harder towards this goal in his second administration. In February, President Obama proposed an increase of the government's tax credit on electric cars from $7,500 to $10,000. 

There is also about $16 billion left in the fund for lending for electric vehicles and their research and devleopment.  

There are also upcoming propisitions about fuel and car safety. California ia pushing for cleaner gasoline and diesel fuels that would lower pollution but increase price. The Environemental Protection Agency and the president have to decide whether to make these changes happen nationwide. A proposal to mandate back-up cameras in all new cars in trucks was put on hold earlier this year, and it is not known wheether the National Highway Traffic Safety Administration will begin pushing for the change again since the election is over. If passed, it could add $200 to the cost of every new vehicle. 

One thing is for sure; the interest of those looking for cleaner cars seems safe. The President has been trying to clean America's roads since he was elected the first time, and there is no sign that his re-election will change those plans. 

Source: Automotive News