Tariffs and EVs: Auto Industry at a Crossroads

The electric vehicle revolution may be hitting a roadblock. Auto expert Jack Nerad joins us to unpack why we might have already reached "peak EV" in the American market. With gas prices low in most states and consumer interest waning, Nerad explains why the billions invested by certain automakers in all-electric futures may have been premature.

Diving into the recent Senate vote to block California's 2035 gas vehicle ban, we examine how this regulatory shift could reshape automotive manufacturing priorities across the industry. The conversation highlights how Toyota and Honda, once criticized for "dragging their feet" on electrification, may have been following the smarter strategy all along.

Beyond the EV discussion, we tackle the affordability crisis sweeping through the automotive market. With average new car prices hovering around $49,000 and the annual cost of vehicle ownership exceeding $12,000, many Americans find themselves priced out of new car purchases entirely. Nerad shares a striking example of how a Kia Sorento that cost $28,000 in 2015 would now command around $60,000 for a comparable model.

The episode also explores how advanced driver assistance systems, while promising enhanced safety, have dramatically increased both insurance premiums and repair costs. Something as simple as replacing a windshield has become a complex, expensive proposition due to embedded sensors and cameras.

For those looking to explore automotive culture closer to home, Mike introduces a new "Driving Destinations" feature highlighting hidden Houston gems like the Art Car Museum (aptly nicknamed the "Garage Mahal") and the impressive Hemi Hideout in Brookshire. Jeff rounds out the show with upcoming cruise-in events perfect for Memorial Day weekend exploration.

Whether you're considering an electric vehicle purchase, wondering about the future of auto manufacturing, or simply looking to understand why car ownership costs continue to climb, this episode delivers expert insights into the rapidly evolving automotive landscape.

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Chapters

• 0:00 Show Introduction
• 0:57 Jack Nerad Joins the Show
• 3:54 Recent Car Events and Test Drives
• 7:31 EV Market Reality Check
• 14:48 Auto Industry News Headlines
• 22:05 Houston Driving Destinations
• 28:18 Cruise-In Calendar and Show Wrap