Assistance from Claude AI. For a summary of the event, click here.
Summary
The announcement on December 3, 2025 contained a mix of accurate specific claims (Ford and Stellantis investments), significantly exaggerated claims (the $18 trillion investment figure), and inaccurate technical claims (the 62 mpg CAFE standard). The overall narrative that regulatory rollbacks alone will dramatically reduce car prices lacks support from automotive economists, who note that vehicle pricing is influenced by numerous factors beyond regulatory compliance costs. The most problematic claim is the investment figure, which multiple independent fact-checkers found to be inflated by a factor of 2-3 times even using generous assumptions.
Claim 1: Car Prices Rose 25% Under Biden, with 18% in One Year
Rating: MOSTLY TRUE with Important Context
Car prices did rise significantly during the Biden administration, though attributing this solely to regulations oversimplifies the causes. According to industry data from Kelley Blue Book and Cox Automotive, average transaction prices for new vehicles rose 17.3% during the first 24 months of the Biden presidency, with the full term showing a 16% increase (Torque News, 2025). Pickup truck prices specifically rose 18.3% over the full term, which aligns with Trump’s “18 percent in one year” claim for certain vehicle categories, though this wasn’t a single-year increase for all vehicles.
Multiple factors drove these increases beyond regulatory policy. Supply chain disruptions, semiconductor shortages, pandemic-related production constraints, and general inflation all contributed substantially to price increases (Competitive Enterprise Institute, 2021). The claim that CAFE standards alone “caused” or were the primary driver of these increases lacks supporting evidence from automotive economists.
Sources:
Torque News. (2025, April 5). We now have a handy baseline of car prices from the Biden admin against which to compare the expected changes under the Trump admin. https://www.torquenews.com/1083/automobile-prices-rose-17-percent-during-first-two-years-biden-administration-we-lay-out-facts
Institute for Energy Research. (2023, August 29). Auto prices are up 25 percent and likely to go higher under Biden proposals. https://www.instituteforenergyresearch.org/regulation/auto-prices-are-up-25-percent-and-likely-to-go-higher-under-biden-proposals/
Competitive Enterprise Institute. (2021, November 19). New car prices are soaring; Biden’s policies would make things worse. https://cei.org/blog/new-car-prices-are-soaring-bidens-policies-would-make-things-worse/
Claim 2: Biden CAFE Standards Required 62 Miles Per Gallon
Rating: FALSE
Secretary Sean Duffy’s claim that the Biden administration CAFE standards required “62 miles per gallon” is inaccurate. The actual Biden-era standards finalized by the National Highway Traffic Safety Administration in June 2024 required approximately 50.4 miles per gallon for the fleet-wide average by model year 2031, not 62 mpg (ABC News, 2025). The rule mandated a 2% annual increase in fuel efficiency for passenger cars from 2027 through 2031.
The original proposal had suggested approximately 58 mpg by 2032, but this was scaled back in the final rule to 50.4 mpg by 2031 (Institute for Energy Research, 2024). One source mentions that passenger cars specifically (not including light trucks) would reach 65 mpg by 2031 under certain calculations, but this was not the fleet-wide standard Duffy referenced (E&E News, 2024).
The claim of 62 mpg appears to be either a misstatement or conflation of different figures from the regulatory process.
Sources:
ABC News. (2025, December 3). Trump announces roll back of Biden-era vehicle fuel efficiency rules: ‘Expensive restrictions.’ https://abcnews.go.com/Politics/trump-roll-back-biden-era-vehicle-fuel-efficiency/story?id=128080691
Institute for Energy Research. (2024, June 12). Biden administration finalizes efficiency standards for vehicles. https://www.instituteforenergyresearch.org/regulation/biden-administration-finalizes-efficiency-standards-for-vehicles/
E&E News by POLITICO. (2024, June 10). Biden administration backpedals on tailpipe standards. https://www.eenews.net/articles/biden-administration-backpedals-on-tailpipe-standards/
Claim 3: Ford Announced $5 Billion Investment in Kentucky and Michigan
Rating: TRUE
This claim is accurate. Ford Motor Company announced in August 2025 a combined investment of approximately $5 billion at its Kentucky assembly plant and Michigan battery plant (Washington Post, 2025). The investment includes nearly $2 billion for retooling the Louisville Assembly Plant to produce electric vehicles and a previously announced $3 billion for a battery factory in Michigan. Ford stated this investment would “create or secure nearly 4,000 direct jobs between the two plants” (Associated Press, 2025).
However, important context: This investment is primarily focused on electric vehicle production, which contradicts the anti-EV rhetoric of Trump’s announcement. The investment was announced in August 2025, months before the December CAFE standards rollback, suggesting it was not directly caused by the regulatory changes Trump announced.
Sources:
Washington Post. (2025, August 11). Ford hits the pedal on EV production with $2 billion overhaul of Kentucky plant. https://www.washingtonpost.com/business/2025/08/11/ford-louisville-assembly-plant-electric-vehicles/
Associated Press. (2025, August 11). Ford to invest nearly $2 billion in Kentucky assembly plant to produce electric vehicles. https://www.michiganpublic.org/economy/2025-08-11/ford-to-invest-nearly-2-billion-in-kentucky-assembly-plant-to-produce-electric-vehicles
Claim 4: Stellantis Announced $13 Billion Investment
Rating: TRUE with Context
Stellantis did announce a $13 billion investment plan in October 2025 to expand U.S. manufacturing operations over the next four years (Stellantis, 2025). The investment is described as “the largest single investment in the Company’s 100-year history” and plans to expand U.S. production by 50%, adding more than 5,000 jobs at plants in Illinois, Ohio, Michigan, and Indiana.
However, critical context from reporting indicates that “the $13 billion figure appears to incorporate most of the roughly $5 billion worth of investments Stellantis had already detailed shortly after President Donald Trump took office in January” (Detroit News, 2025). Additionally, CNBC noted that “it’s not immediately clear how many of the investments and jobs are new or have been previously announced” from the company’s 2023 UAW contract that included $18.9 billion in investments by April 2028 (CNBC, 2025).
The Detroit News reported that UAW Local 140 president Eric Graham credited Trump’s tariffs for the investment, stating “Without these tariffs, this probably wouldn’t have happened” (Detroit News, 2025).
Sources:
Stellantis. (2025, October 14). Stellantis to invest $13 billion to grow in the United States. https://www.stellantis.com/en/news/press-releases/2025/october/stellantis-to-invest-13-billion-to-grow-in-the-united-states
Detroit News. (2025, October 15). Stellantis CEO: $13B investment to boost production shows ‘we trust our U.S. plants.’ https://www.detroitnews.com/story/business/autos/chrysler/2025/10/14/stellantis-investing-13b-in-u-s-to-boost-production/86695598007/
CNBC. (2025, October 15). Jeep parent Stellantis announces $13 billion U.S. investment plan. https://www.cnbc.com/2025/10/14/stellantis-investment-turnaround.html
Claim 5: “$18 Trillion Being Invested” in 10 Months vs. Biden’s “Less Than $1 Trillion” Over 4 Years
Rating: FALSE – GROSSLY EXAGGERATED
This claim is one of the most misleading statements in the announcement. Multiple independent fact-checking organizations have thoroughly debunked Trump’s investment figures:
The Reality: Trump’s own White House website listed “major investment announcements” totaling $8.8 trillion, approximately half of his stated $18 trillion claim (CNN, 2025). However, even the $8.8 trillion figure is itself a significant exaggeration according to detailed analysis.
CNN’s item-by-item review of the top 10 items on the White House list revealed major problems. The largest item is $1.4 trillion in “foreign investment” from the United Arab Emirates, but this figure represents a 10-year plan and exceeds double the UAE’s entire 2024 GDP. The UAE had only $35 billion in total foreign direct investment in the U.S. as of 2023 (CNN, 2025). The second-largest item of $1.2 trillion from Qatar uses the vague phrase “economic exchange,” which can include two-way trade and U.S. investment in Qatar, not just Qatari investment in the U.S.
Bloomberg Economics’ analysis found only $7 trillion in what could be considered “real investment pledges” when examining the 137 projects on the White House webpage, and even this includes many planned investments over multiple years (Bloomberg, 2025). PolitiFact’s analysis in May 2025 found the White House could only document $2.1 trillion in corporate investments, or $5.1 trillion when including country-level promises, far short of the $10 trillion Trump claimed at that time (PolitiFact, 2025).
Notably, even Trump’s own former economic advisor Stephen Moore stated regarding these figures: “That’s not going to happen, obviously… But even if he’s wrong by a factor of 10, we’re still talking $2 trillion. Even if he’s off by a factor of a hundred, that’s still a lot of money” (Bloomberg, 2025).
Regarding Biden-era investments: The comparison to “less than $1 trillion” under Biden is also misleading, as it ignores the CHIPS Act semiconductor investments and Inflation Reduction Act clean energy investments that began materializing during the Biden administration, many of which continue into Trump’s second term.
Sources:
CNN. (2025, October 11). Fact check: Trump’s ‘$17 trillion’ investment figure is fiction. https://www.cnn.com/2025/10/11/politics/fact-check-trump-17-trillion-investment
Bloomberg. (2025, November). Trump’s $21 trillion investment boom is actually short trillions. https://www.bloomberg.com/graphics/2025-trump-investment-boom-trillions/
PolitiFact. (2025, May 8). Has Donald Trump secured $10 trillion in investments for U.S.? Not according to White House tallies. https://www.politifact.com/factchecks/2025/may/08/donald-trump/foreign-corporate-investment-10-trillion/
MSNBC. (2025, November). On foreign investments, Trump keeps inflating his ‘unbelievable’ numbers. https://www.ms.now/rachel-maddow-show/maddowblog/foreign-investments-trump-keeps-inflating-unbelievable-numbers-rcna240338
Additional Claim Analysis Summary
Claim: Auto production fell 5% under Biden, surged 10% in 2025 Status: Requires verification – Search data not conclusive. The specific statistics cited need verification from Bureau of Labor Statistics or automotive industry sources.
Claim: “I won the auto workers’ vote” Status: Requires verification – Trump made electoral gains in traditionally union areas, but specific UAW member voting data was not found in searches.
Claim: “Lost 52% of our automobile manufacturers” Status: Requires verification – This appears to reference decades of manufacturing shifts to Mexico and other countries, but the specific 52% figure needs verification.
Claim: Cars will be made of “plastic instead of steel” under CAFE standards Status: MISLEADING – While fuel efficiency standards do incentivize lighter materials, modern vehicle safety standards require extensive crashworthiness testing. Senator Ted Cruz repeated this claim, but automotive safety data does not support the assertion that CAFE standards led to widespread substitution of plastic for structural steel components.
Methodology Note
This fact-check focuses on verifiable factual claims using authoritative sources including government data, established fact-checking organizations (PolitiFact, CNN), industry publications, and direct company announcements. Claims are rated on accuracy regardless of political perspective. Economic causation claims (such as what “caused” price increases) are evaluated based on consensus among economists and industry analysts rather than partisan assertions.