Sigma Signals

Week of March 25, 2024

Last week the EPA pushed back its CO2 emissions requirements by two years to 2032. Gas powered cars will not be able to make up more than 30% of an auto manufacturer’s sales. This gives the likes of Ford and General Motors two extra years to figure out how to make electric vehicles profitable (or lobby for less regulation). Ford, GM and Stellantis may have no choice but to lay off workers and move factories if electric vehicles don’t pan out. We, as American consumers, are in for sweeping changes if these mandates stay in place. The regulations already force manufacturers to charge more for gas powered cars to subsidize the production costs of EVs. Consumers will also begin to have fewer and fewer choices of what cars to buy. No changes to our Signals.

Bob Bilkie, CFA & Michael Mullenax