Biden pushes for Electric vehicles to be built up 40% o more of we auto sales by 2030

Then Vice President Joe Biden (R) and General Motors CEO Mary Barra look on new Corvette C7 participates in the North American International Auto Show industry preview at Cobo Hall on January 16, 2014 in Detroit, Michigan.

Paul Warner | .

President Joe Biden will do it set a new national objective for adoption of electric vehicles on Thursday, calling for account for 40% to 50% of Everyone new auto sales by 2030, second senior administration officials.

The goal should be supported by companies such as General Motors, Ford Motor, Stellantis (formerly Fiat Chrysler) and other car manufacturers. Managers of each of Detroit automakers are scheduled to participate in a event Thursday in the White House.

Even if the president will sign an executive order, the sales target is not mandatory. Instead, the document encourages the US auto industry e government promote legislation and adoption of electrified vehicles. The target includes zero-issue vehicles powered by fuel cells and batteries, as well as plug-in hybrid models with internal combustion engines.

The Biden administration also is expected to announce the proposed federal fuel economy And standard of issue until 2026 model-year That build on of California tougher regulation, officials said. The standard proposed are subject to a public comment period e final approval.

While car manufacturers have been increasingly supportive of Electric vehicles, they were mixed on near-term fuel economy standard, as they try to rake in profits from traditional vehicles finance electricity models. Electric vehicles have historically been unprofitable or produce lower profit margins.

It is not clear how many car manufacturers will support Biden’s fuel economy standard. Car manufacturers such as Ford, Honda Motor and Volkswagen have previously agreed with California’s tougher standard, which the Trump administration has categorically opposed.

Some smaller brands like Volvo plan to go fully electric by 2030, while Stellantis and Ford have announced aims in-line with Biden’s order of at least 40% of electric vehicles by then. GM first this year announced an “aspiration” to offer exclusively all electric and fuel-cell vehicles by 2035.

Such rapid adoption of Electric vehicles face significant barriers such as charging infrastructure, consumer adoption and vehicle costs, among other things.

“Today Ford, GM and Stellantis announce their common aspiration to achieve sales of 40-50% of annual US volumes of electric vehicles (electric battery, fuel cell and plug-in hybrid vehicles) by 2030 in order of move the country closest to a zero-emissions future coherent with Paris climate targets, “the automakers said in a joint statement. “We watch forward to work with the Biden administration, Congress and state and local governments to put in act policies that allow these ambitious goals “.

Jessica Caldwell, executive director of insights on auto Insights firm Edmunds, said sales of electric vehicles goal it is not “particularly over ambitious “but in the end it will depend on regulations and consumer adoption, which remains Bass.

“The car manufacturers are all playing aggressive games in this category, “Caldwell said.” However, what we saw over the past five years or so these goals tend to be moving goals, not solid goals. All of is more fluid with respect to the actual plan. “

A precedent goal of the Obama administration to sell 1 million electric vehicles from 2012 to 2015 was very short of expectations. In January 2016, Reuters reported that only about 400,000 had been sold auto electric.

Read more on the electric vehicles by CNBC Pro

The United States is the third largest market for electric vehicles in the world. While total new car sales were down 23% in 2020 about 14.6 million units, sales of fully electric vehicles it fell 11% to 295,000 units, according to IHS Markit.

Senior administration officials with the Biden administration touted the adoption of Electric vehicles and executive order as a stimulator of work for American manufacture. They said that new the actions will be support Biden’s “Build Back Better Agenda” and the bipartisan infrastructure deal.

Officials with United Auto Workers, which represents every hour union Detroit auto workers weren’t so convinced of Electric vehicles stimulate American jobs.

“While the UAW notes that the companies have made voluntary commitments on Electric Vehicles, the UAW focus is not on hard deadlines or percentages, but on preserving the wages and benefits that have been the heart and soul of the class media American, “UAW President Ray Curry said in a statement Wednesday.

One studio of 2018 of union found that mass adoption of electric vehicles could cost The UAW has 35,000 jobs, but officials said the number could be lower now. Electric vehicles require far fewer parts than those with internal combustion engines, which potentially means less assembly work in factory. Much of parts for Electric vehicles are made outside of in the United States or in domestic establishments in which workers receive much lower wages than traditional assembly work.

In May, IHS Markit expects sales of all-electric vehicles in the United States to be between 25% and 30% of new vehicles in 2030 and from 45% to 50% by 2035.

US President Joe Biden test the new Ford F-150 Lightning Bolt truck while visiting VDAB at the Ford Dearborn Development Center in Dearborn, Michigan, May 18, 2021.

Leah Millis | Reuters

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