For years, the government told us car prices skyrocketed because of supply chains. In addition, they blamed inflation. However, they lied. Consequently, the price of the V8 and other performance cars spiked artificially. Now, we finally have the truth directly from the source. Specifically, Transportation Secretary Sean Duffy just confirmed what this channel has said all along. The previous administration rigged the math to force you into an electric vehicle. As a result, the era of the forced EV is officially dead.
Furthermore, this new law makes the V8 legal again by removing the penalties that killed it. Therefore, we are looking at a massive market correction. Prices for gas cars are about to crash. In this report, we break down exactly how they rigged the game and why your favorite muscle cars are coming back.
The Green New Scam Exposed
Previously, the government set fuel economy standards that looked great on paper. For example, they demanded a fleet average of 51 miles per gallon by 2031. However, no gas engine can hit that average on its own. In fact, vehicles are getting heavier with added safety tech. Therefore, fuel economy naturally suffers. Yet, the regulators ignored this reality.
Secretary Duffy exposed exactly how they achieved those impossible numbers. They included EVs and hybrids in the corporate average. Consequently, this forced automakers to build electric vehicles just to balance out the math. If Dodge wanted to sell you a Hemi, they had to sell a bunch of EVs to offset the fines. Otherwise, they had to buy massive amounts of carbon credits. This is why we lost the V8. As a result, Stellantis released their worst-selling vehicles ever, like the Hornet.
Now, the new rule goes back to what the law actually says. The law specifies combustion engines. It does not say combustion engines mixed with battery-powered cars. Therefore, the new target will look at what a gasoline engine can actually do. This change removes the artificial pressure that destroyed the muscle car market.
Why Prices Will Crash $20,000
Secretary Duffy estimates the industry will save $109 billion with this rollback. Theoretically, this comes out to a savings of about $1,000 per car. However, that estimate is a lowball number. In reality, we have already seen certain models drop by way more than that. For instance, look at the Jeep Wrangler 392. For one year, it cost $100,000. Once the pressure eased, it dropped to $80,000. Similarly, the Durango Hellcat was $100,000 a year ago. Now, you can find them for $79,000 out the door.
Dealers will have to lower prices because their costs are going down. Previously, automakers baked corporate tax fines into the price of the F-150 and other trucks. They did this to pay for their massive EV losses. Now, that pressure is gone. Consequently, the F-150 will get cheaper to build. In a competitive market, lower cost always wins. If Ford and GM do not lower their prices, foreign companies will undercut them.
Moreover, Ram is in a difficult position. Currently, the RHO is basically a TRX with a cheaper engine. If they try to sell the TRX at its old inflated price, no one will buy it. Therefore, Ram must drop the price of the TRX by at least $20,000. Ultimately, getting rid of compliance fines allows dealers to maneuver. As a result, $10,000 to $20,000 price drops will become the new normal for performance vehicles.
Return of the Station Wagon and K-Cars
This rule change does more than just save the V8. In addition, it could bring back other beloved car segments. For example, the 1970s station wagon could return. Perhaps we will even see wood paneling again. Secretary Duffy explicitly stated he wants to bring “toys” back to consumers. The minivan is awesome, but the station wagon is cool too.
Furthermore, the White House is clearing the deck for Japanese “K-Cars” or micro-cars. Previously, these small vehicles were illegal on US streets. However, Duffy confirmed he is working with NHTSA to change the rules. These are $10,000 commuter cars. Critics claim they are unsafe for highways. However, that argument makes no sense. We already allow mopeds and golf carts on certain public roads. Similarly, these micro-cars would be perfect for city driving. They offer a cheap alternative to the $80,000 electric vehicle. Consequently, this brings true affordability back to the American market.
The Failure of Auto Lobbies
It is important to note how useless the auto lobbies were during this entire ordeal. Automakers spent millions on lobbyists. Yet, none of them stopped the politicians from changing these regulations. The auto lobby is supposedly one of the most powerful forces in the world. However, they failed to stop the administration from pushing this electric vehicle nonsense. Instead, automakers bent over backwards. They invested billions into EVs that no one wanted.
Now, CEOs like Mary Barra are complaining about the “ping pong” of regulations. They invested based on the previous administration’s rules. Suddenly, the rules changed back. However, Duffy argues that they should have followed the market, not the mandate. If they had built cars people actually wanted, they would not be in this mess. In the end, the consumer should decide what to drive. Thankfully, the new rules prioritize freedom of choice over government control.
Autonomous Tech and American Jobs
Finally, the conversation turned to autonomous vehicles. Companies like Waymo are expanding rapidly. Duffy wants companies to develop this technology in America. He does not want to shut the industry down and lose innovation to China. However, we must be careful about who builds this tech. For example, Stellantis fired the majority of their American engineers. They replaced them with cheaper labor from Brazil, Morocco, and India. As a result, the quality of their software went down the toilet.
We do not want teams with a poor track record developing autonomous vehicles. Furthermore, American engineers should build American technology. We enjoy our freedoms here. Therefore, we should not let foreign markets dictate what we drive. In conclusion, this rollback is a massive win for car enthusiasts. The V8 is legal again, prices are crashing, and the market is finally free.
