A fundamental challenge for the development of a strong brand positioning is to create a distinctive “reason for being” that is highly relevant to target customers and different from competition. In 2001 Toyota introduced the market’s first gas-electric hybrid, Prius, and it quickly became the global leader in green cars. Its core “reason for being” was the environmental benefit of “saving the planet”. In comparison to gas driven cars, driving a Prius would also cost much less and would make Toyota more competitive around the world.
The timing of this brand’s debut 25 years ago was ideal. Many consumers were switching to sports utility vehicles (SUV’s), which helped drive the average fuel economy down to a 21-year low, 20.4 miles to the gallon. The Prius promise of economy of up to 48 miles to the gallon was thus very compelling. It immediately appealed to coastal liberals and “do-gooders”, with helpful promotional support from the Sierra Club and stars like Leonardo DiCaprio and Meryl Streep. Car sales boomed from 5,500 cars in 2001 to 236,000 in 2012.
The Emergence of Hybrids and EV’s
Soon other plug-in cars were introduced, such as Chevrolet’s Volt. While the Volt received top-car accolades, many mainstream Americans resented the federal aid it received during the Obama administration. Some Republican politicians even believed the Volt was a socialist scheme to force Americans into electric cars. Tesla then introduced their Model S electric car in 2012 with government support, although many on the right were becoming critical of Tesla earning billions by selling climate credits to other automakers.
The Biden administration signature climate and energy legislation, including a $7,500 federal tax credit, helped lift sales of EV’s and hybrids. The driving force for the growth of these green cars was still the environmental benefits, although many conservative customers started to view Biden’s economy and emission regulations as an overreach.
In general consumer values and desires frequently change for many brands, which usually results in tweaking or updating dimensions of their main “reason for being”. But it is rare when political whims and new policies force a major overhaul for a brand essence.
Trump’s Attack on Environmental Policies
When Trump became president in 2025, he launched a full-scale assault on every aspect of environmental protection, especially weakening the E.P.A. and eliminating Biden’s energy initiatives. These actions have unsettled many consumers’ views on electric vehicles, undermining their key environmental motive. A survey last November 2025 by a special governmental committee on “EV’s for all Americans”, showed that the support for electric cars varies by political partisanship:
- 48% of self-identified Republicans have an unfavorable view of EV’s
- 22% of Independents have a similar unfavorable view
- Only 14% of Democrats have an unfavorable attitude to EV’s
Trump and Congress have overhauled policies to favor fossil fuel, which has seriously slowed the growth of electric vehicles in America. Last week GM announced it would record a record $7.1 billion loss for the last quarter of 2025 primarily to reflect the diminished value of its investments in battery factories and electric vehicles. Similarly, Ford said it would take a $19.5 billion hit to its profits related to its electric vehicles business.
These political initiatives have also forced automakers to consequently downplay the original, primary environmental “reason for being” for their EV brands, and instead tout other benefits such as their zesty performance, hushed interiors, energy savings, easy maintenance, etc. as the main incentives for buying EV’s.
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