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Clyde’s right that there will be weird short term effects. Medium term, the OEMs are going to face the same fixed costs that they do now, and lower demand overall. There are going to be some monster incentives on the other side, for probably all of 2021.
I suspect we’ll see another cash for clunkers type incentive, particularly if the Dems win again in Nov—it will be part of a “green” stimulus that might not quite be a Green New Deal but will focus heavily on investment in green tech.
Does that mean it will favor hybrids and electric cars only? Maybe? Or just higher fuel economy vehicles. If the Detroit Three can pull it off, they’ll want to structure it in a way that somehow includes new trucks.
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