It’s easier for government to regulate manufacturing than buyers and it doesn’t piss off voters as much or disproportionately affect the poor.

AFAIK hybrids are not mandated directly, though I could be mistaken.  I was referring to lack of specificity from government that hybrid technology be used, yet many buyers have chosen to purchase hybrids when they could have purchased ICEV or BEV.  I like buyers having ultimate control over which type of vehicle they prefer and buy; within reason of course.  When governments effectively narrow choices to just one (BEVs), that’s where I have biggest concern.  I know we can’t have a pure free market but still prefer to keep government out of our choices as much as possible.

I wouldn't say that...the Big 3 had issues way before CAFE with quality and no American cars did not sell in Europe because they where too big and fuel inefficient 

You could be right, but I still think there is a lot of room to improve, also both Ford and Lincoln need EVs for China. The Model 3 sold 176k units in 2024

First, fix the recall problem!

Yea, the Ford, BMW, GM, and Exide big shot Bob Lutz spoke about the impact of CAFE, which was introduced 50 years ago, on the American automotive industry:   "The feds basically handed our market to the Japanese. American automakers had to tear up their entire product lines, downsize, go from full-frame to unitized bodies, V8s to V6s, rear- to front-wheel drive with transverse transmissions. It was the biggest technological tear-up in history, and it triggered a lot of subsequent problems, like poor quality and reliability. You can’t re-engineer that much that fast, test it properly and get the technology matured without dropping a lot of balls, and we clearly did.   Prior to CAFE, American quality was as good as any anywhere in the world. We were still selling a decent quantity of American cars in Europe because Europeans considered a Buick or a Chevrolet or a Ford to be superior in reliability to European products, which they were. The Japanese experience was no disruption whatsoever. They were way on the good side of the CAFE fleet average, so they didn’t have to change a single product. They just continued to build what they had always been building."

With respect, that’s what they have been doing since 1978

To be fair, selling over 60k units of something in a country where the competition is insane, and you have hundreds of different car companies to compete with, those aren't terrible sales figures.   Edit: Ford sold about 440,000 vehicles in China total last year, not sure if that includes Lincoln. But that means the mondeo was close to 14% of Ford's total sales in China, so not insignificant. 

Agree, I am not 100% about these numbers but this is what I found. 2024 China sales: Zephyr: 12,400 Mondeo: 61,822 Mondeo Sport: 892

Sounds like you’re describing HEVs for the most part which “buyers” are choosing because they are a more efficient investment.   IMO the vast majority of people are not going to spend additional money for something that doesn’t benefit them directly.  Fuel efficiency in itself is not enough if it comes at too high a price.  It goes against human nature which is to prioritize yourself and your family’s interests first.  Hybrids mostly improve city fuel economy at what is now a relatively minor initial cost penalty which explains why they are becoming more popular.  Battery-electric on other hand cost more to own so masses are not adopting as quickly.  Initially BEVs were marketed as cheaper to own but as additional cost data rolled in, prospective buyers started to tap the brakes (no pun intended).  I honestly believe the simplest way to influence buyer behavior is to control costs.  It will not be “fair” to 100% of population but nothing will.  What I really don’t want are EPA lawyers dictating what our next vehicles should be.