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    House Votes to Block California Plan to Ban New Gas-Powered Cars in 2035

    Republicans, joined by a handful of Democrats, voted to eliminate California’s electric vehicle policy, which had been adopted by 11 other states.The House on Thursday voted to bar California from imposing its landmark ban on the sale of new gasoline-powered vehicles by 2035, the first step in an effort by the Republican majority to stop a state policy designed to accelerate the transition to electric vehicles.The 246-to-164 vote came a day after Republicans, joined by a few Democrats, voted to block California from requiring dealers in the state to sell an increasing percentage of zero-emission, medium and heavy-duty trucks over time. And, lawmakers also voted on Wednesday to stop a state effort to reduce California’s levels of smog.All three policies were implemented under permissions granted to California by the Biden administration. They pose an extraordinary challenge to California’s longstanding authority under the 1970 Clean Air Act to set pollution standards that are more strict than federal limits.And the legality of the congressional action is in dispute. Two authorities, the Senate parliamentarian and the Government Accountability Office, have ruled that Congress cannot revoke the waivers.California leaders condemned the actions and promised a battle.Gov. Gavin Newsom, a Democrat, called the move “lawless” and an attack on states’ rights. “Trump Republicans are hellbent on making California smoggy again,” Governor Newsom said in a statement.“Clean air didn’t used to be political,” he said, adding, “The only thing that’s changed is that big polluters and the right-wing propaganda machine have succeeded in buying off the Republican Party.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump Administration Looks to Take Steps to Ease Pain From Car Tariffs

    The planned concessions to give automakers more time to relocate production to the United States would still leave substantial tariffs on imported cars and car parts.The Trump administration said it plans to announce measures as early as Tuesday to ease the impact of tariffs on imported cars and car parts to give automakers more time to relocate production to the United States.Tariffs of 25 percent on imported vehicles and on auto parts will remain in place. But the tariffs will be modified so that they are not “stacked” with other tariffs, for example on steel and aluminum, a White House spokesman said. Automakers will not have to pay tariffs on those metals, widely used in automobiles, on top of the tariffs on cars and parts.In addition, automakers will be reimbursed for some of the cost of tariffs on imported components. The reimbursement will amount to up to 3.75 percent of the value of a new car in the first year, but will be phased out over two years, the spokesman confirmed.A 25 percent tariff on imported cars took effect April 3. On Saturday, the tariffs are set to be extended to include imported parts.“President Trump is building an important partnership with both the domestic automakers and our great American workers,” Howard Lutnick, the commerce secretary, said in a statement. “This deal is a major victory for the president’s trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing.”But even with these changes, there will still be substantial tariffs on imported cars and auto parts, which will raise prices for new and used cars by thousands of dollars and increase the cost of repairs and insurance premiums.The modification to the tariffs was reported earlier by The Wall Street Journal. Mr. Lutnick helped automakers secure a major exemption from tariffs in March and has taken on a role advocating relief for some industries hit by the levies.Automakers welcomed the change. “We believe the president’s leadership is helping level the playing field for companies like G.M. and allowing us to invest even more in the U.S. economy,” Mary T. Barra, the chief executive of General Motors, said in a statement on Monday. “We appreciate the productive conversations with the president and his administration and look forward to continuing to work together.” More

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    Tesla’s Falling Profit May Pressure Elon Musk to Return to Day Job

    The carmaker is expected to report a decline in quarterly earnings after Tesla’s brand suffered because of its chief executive’s role in the Trump administration.Tesla is expected to report on Tuesday that its profits fell in the first three months of the year, which could increase the pressure on Elon Musk, the automaker’s chief executive, to curtail his work for President Trump and spend more time managing the company.Wall Street analysts expect Tesla to say its net profit declined slightly from $1.1 billion in the first quarter of 2024.Tesla sales have been slumping because of intense competition from Chinese carmakers like BYD, a lack of new models and Mr. Musk’s support of far-right causes, which has turned away some liberals and centrists from buying Tesla vehicles.Tesla remains the most valuable automaker in the world as measured by its stock price, but its shares have lost about half their value since mid-December as investors have grown more pessimistic about the company’s prospects and concerned about Mr. Musk’s role in the Trump administration.Tesla has steadily lost market share to Chinese carmakers and more established automakers, like General Motors, Volkswagen and Hyundai, that have been offering a growing selection of electric vehicles.Mr. Musk’s company once hoped to sell 20 million vehicles a year by the end of the decade, twice as many as Toyota. But sales have been sliding after climbing to 1.8 million in 2023. Last year, the company sold 1.7 million cars, and its global sales fell 13 percent in the first quarter of 2025 from a year earlier.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Tesla U.S. Sales Plunge as G.M. and Others Make Gains

    Tesla’s sales in the United States fell almost 9 percent in the first three months of the year even as the overall market for electric vehicles grew, according to data compiled by a research firm.Car buyers are moving away from Teslas and toward models like General Motors’ Chevrolet Equinox electric vehicle, which starts at around $35,000 and can travel more than 300 miles on a charge, Cox Automotive, the research firm, said in a report.Sales of all electric vehicles in the United States rose 11 percent during the first quarter to about 300,000 cars and light trucks, Cox said, much faster than the overall auto market, which has been flat. About 8 percent of new domestic car sales were electric, Cox said, a slight increase from 2024.“Despite many obstacles — and what you may read elsewhere — electric vehicle sales continue to grow at a healthy pace in the U.S. market,” the firm said.Tesla, whose chief executive is Elon Musk, still sells far more electric cars in the United States than any other automaker, accounting for 44 percent of the market, according to Cox. But its share has fallen from 51 percent a year earlier.The decline in Tesla’s U.S. sales mirror a global slump. The company said this month that deliveries during the quarter in all markets fell 13 percent to 337,000 vehicles.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    How Tariffs Could Cause Car Insurance Costs to Rise

    New tariffs are expected to push up prices of vehicles and car parts, and that could raise premiums as much as 16 percent. Here are some tips on how to try to keep costs down.Add this to worries about the likely impact of tariffs: costlier car insurance.The new tariffs on imported cars, metals and parts announced by the Trump administration are expected to raise vehicle prices by thousands of dollars if they remain in place. And because parts used in auto repairs will also become more expensive, the average cost of automobile insurance is expected to increase.The average annual premium for a full-coverage auto policy was just over $2,300 at the end of last year, according to an analysis by Insurify, an insurance comparison shopping website. The site initially estimated that premiums would increase just 5 percent this year, based on factors like inflation and insurer losses.How much of an impact could tariffs have on car insurance costs?With the addition of the tariffs, Insurify now projects premiums to rise at least 16 percent, or $378, to almost $2,700 on average nationally — about $256 more than without tariffs. The analysis includes the tariffs on steel and aluminum, those on imported cars and those on imported auto parts scheduled to take effect May 3. (Tariffs announced in February on products from Mexico and Canada were adjusted to exempt some goods, including cars and auto parts, that comply with the free trade agreement President Trump negotiated in his first term, according to Insurify. If that exemption is lifted, the increase in automobile premiums could be as high as 19 percent, the analysis found.)An Insurify spokeswoman said the Trump administration’s announcement on Wednesday, pausing double-digit global tariffs for 90 days, didn’t change the company’s projections. Treasury Secretary Scott Bessent, in response to a reporter’s question after the announcement, indicated that the pause didn’t apply to certain tariffs like those on automobiles.“Things that increase the cost of repairs impact prices,” said Robert Passmore, vice president of personal lines with the American Property Casualty Insurance Association, whose members are big insurance companies. About 60 percent of parts used in auto shop repairs are imported from Mexico, Canada and China, the association has said.The price of car insurance has soared in recent years for a variety of reasons, including more claims resulting from driving habits that deteriorated during the pandemic, the use of more expensive technology in cars, and damage from strong storms and hail. While increases had recently begun to moderate, the cost of motor vehicle insurance still rose 7.5 percent in March compared with a year earlier, according to the Bureau of Labor Statistics.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Ford offers discounts on cars and trucks as auto tariffs kick in.

    Ford Motor said on Thursday that it was lowering prices on most of its vehicles to the same levels it charges employees in a bid to boost sales as President Trump’s tariffs on imported cars took effect.The tariffs began on Thursday on vehicles imported from Mexico, Canada, Japan, Germany and other countries. The duties — 25 percent of the value of the vehicle in most cases — are expected to increase prices of new cars and trucks and dampen demand.About half the vehicles sold in the United States each year are produced in other countries. Mexico is the top source of those cars and Canada is among the largest. For three decades, the United States, Canada and Mexico have had a free-trade zone, and automakers have moved parts and vehicles freely among the three countries.Ford’s new program, which the company is calling “From America, for America,” could help reduce a large inventory of unsold cars. In February, Ford had more cars in inventory as measured by how many days it would take to sell them all than all but three other brands — Jaguar, Mimi and Dodge — according to Cox Automotive, a research firm.Ford’s new discounts apply to all new 2024 and 2025 vehicles, except for specialty versions of the Bronco sport-utility vehicle; the Mustang sports car; Super Duty versions of F-Series pickups; and a few other models.“Consumers will pay what we pay,” Rob Kaffl, Ford’s director of U.S. sales and dealer relations, said in a statement.The automaker also said it was extending another incentive program in which buyers of new electric models get a home charger for free, along with the cost of installation. That offer is now valid until June 30.Ford had more than 568,000 vehicles in inventory at the end of March, up about 8 percent from a year ago. More

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    Chinese Auto Giants Dongfeng and Changan Are in Talks to Merge

    The state-owned automakers, longtime joint venture partners of Ford and Nissan, might combine operations as Beijing consolidates its sprawling car sector.Two of China’s biggest state-owned automakers are in advanced discussions to merge, in a deal that would create a formidable manufacturer of cars and military vehicles but could also create problems for their American and Japanese partners.Dongfeng Motor and Changan Automobile have conducted detailed talks on how to combine their operations and told their foreign partners of their intentions, said two people with detailed knowledge of the discussions who were not authorized to comment.Although little known outside China, each company produces slightly more cars for its own brands and through joint ventures than global automakers like Mercedes-Benz or BMW. Dongfeng and Changan together make about 5 million cars a year — more than Ford Motor and almost as many as General Motors or Stellantis, the giant that owns Fiat, Chrysler and Peugeot.A merger of Dongfeng and Changan would represent a significant consolidation of China’s auto market, the world’s largest, and another sign of the country’s rapid embrace of electric vehicles. Both companies have considerably more factory capacity for producing gasoline-powered cars than they need.Beijing’s hope is that a combined company will be able to close excess factories for gasoline cars and become more successful in electric cars.China’s national government owns controlling stakes in Dongfeng and Changan. Dongfeng is a leading supplier of military vehicles to the People’s Liberation Army and Changan is a subsidiary of a Chinese military contractor, which could draw unwanted attention from the Trump administration to a new, larger military supplier and its joint venture partners.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Specter of Auto Tariffs Spurs Some Car Buyers to Rush Purchases

    “Prices are going to shoot up now,” one shopper said. But some dealers said that economic concerns might be keeping people away.Ziggy Duchnowski spent Saturday morning car shopping along Northern Boulevard in Queens with two goals in mind.He wanted to find a new small car for his wife, and he hoped to strike a deal before the new tariffs that President Trump is imposing on imported cars and trucks affect prices.“The word on the street is prices are going to shoot up now,” said Mr. Duchnowski, 45, a union carpenter who voted for Mr. Trump, holding the hands of his two small children.The tariffs — 25 percent on vehicles and parts produced outside the United States — will have a broad impact on the North American auto industry. They are supposed to go into effect on April 3 and are sure to raise the prices of new cars and trucks.They will also force automakers to adjust their North American manufacturing operations and scramble to find ways to cut costs to offset the tariffs. And for now at least, they are spurring some consumers to buy vehicles before sticker prices jump.Analysts estimate that the tariffs will significantly increase the prices of new vehicles, adding a few thousand dollars for entry-level models to $10,000 or more for high-end cars and trucks. Higher prices for new vehicles are also likely to nudge used-car prices higher.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More