None of these strategies seem to address the other technological issue hiding beneath the surface, which is that EVs are fundamentally simpler (electric vs combustion motor) and hence should be cheaper than ICE cars when manufacturing pipelines are mature. This would result in lower profits across the car industry even in the absence of international competition. No US manufacturer so far has actually tried to build EVs cheaper than gas cars at scale (Tesla made a little noise and then got distracted), while Chinese manufacturers have no need to worry about cannibalizing the comparatively small domestic ICE market.

Letting the industry guide policymaking seems like it could lead to regulatory capture preventing EVs from reaching the (low!) price points that they should reach. Already the two-track emissions standards and chicken tax make cars too big and the "arms race" of having a bigger car than everyone else to stay safe (at the expense of others) prevents meaningful reform.

The "secret sauce" of being an OEM is integrating a good set of properties that sells at a price point that sells.

Yeah, they have a lot of $$ historically invested in good engines but they don't care that much. They'll buy engines from each other whenever they want. They don't see it as a critical moat.