Biden Targets 50% EVs By 2030, While US Automakers Prefer A Lesser Goal



President Biden signed an executive order this morning, requiring 50% of new cars sold by 2030 to achieve zero emissions.

Behind this, the automaker provided a background statement, which then seemed to weaken the order itself. In conjunction with the announcement, Ford, General Motors and Stellattis (Chrysler's parent company) expressed their "common desire" to achieve 40% of electric vehicles by 2030-the definition of electric vehicles includes pure electric, hydrogen fuel cell and plug-in vehicles 
hybrid car.

At the time of writing this morning, it was widely expected that the actual compliance details of the standard for weeks have not yet been released. They are not expected to start where Obama’s rules stopped, but to start in 2019 based on a compromise between California and a series of automakers.

Covering the model year from 2023 to 2026, and possibly extending to 2031, they will bring the national fleet closer to the goals previously followed by the Obama administration, but this depends largely on whether some compliance with the Biden rules is possible Whether the details and credit framework are more stringent in practical applications.


2021 Chevrolet Bolt EV

“Auto manufacturers are committed to a net-zero carbon transportation future, and we look forward to working with the Administration as we evaluate EPA’s proposed changes to light-duty vehicle standards for Model Years 2023-2026," said John Bozzella, President and CEO of the Alliance for Automotive Innovation, a trade group representing most automakers.


Coordination announcements with automakers also seem to be a necessary step, because the expected electric vehicles and green energy priorities in the infrastructure bill passed by Congress have been cancelled. The President’s order expresses the importance of additional point-of-sale incentives and electric vehicle charging stations.

The Trump administration’s so-called SAFE standards for fleet emissions and fuel economy are weak, limited to only 1.5% of fleet improvements, which will slow down such progress in the 2021 and 2022 model years. The Obama standard's goal is to increase it by 5% per year, taking into account the change in the car mix from cars to trucks, an increase of about 3.7% per year.


2019 Chrysler Pacifica Hybrid

In keeping with Biden’s way of conducting politics, the all-inclusive rules have included recommendations from automakers, the UAW, and environmental groups—with one noteworthy exception, perhaps. 

On Wednesday, Tesla CEO Elon Musk said that the White House excluded the all-electric automaker, which has sold the majority of electric vehicles in recent years. According to 2018 data from IHS Markit, Tesla employed more than 20,000 and indirectly employed more than 31,000—not counting the Nevada Gigafactory. Its Texas factory is expected to add 5,000 direct jobs and about 4,000 indirect jobs.

“A strong vision from President Biden, along with these significant investments, will help ensure lots of high-paying manufacturing jobs here in America to produce zero-emitting vehicles—vehicles that will then save their owners thousands of dollars on gas,” said Fred Krupp, the president of the environmental Defense Fund. 

“California applauds the Biden Administration’s move to boldly reduce climate pollution from cars, inspired by California’s nation-leading framework," said California Governor Gavin Newsom. "The climate emergency demands no less." 


According to EDF, Stellantis, the parent company of Ford, General Motors, and Chrysler, has pledged about $100 billion in commitments related to zero-emission vehicles so far. Tesla and Nissan will continue to assemble electric vehicles in the United States, and Volkswagen, Volvo and Hyundai/Kia are expected to increase production of electric vehicles in the United States in the next two years.


In other words, there are surprising differences between the goals of various automakers in the US market. By 2030, Volvo and General Motors’ Cadillac will become one of more and more brands, while Toyota predicts that by 2030, battery electric and fuel cell models will account for only 15% of hybrid power. Ford and Honda represent an optimistic middleman. By 2030, Ford predicts that the blending ratio of BEV will not be far from the global target of 40%, while Honda is committed to achieving 40% battery electric and fuel cell models.


2021 Ford Mustang Mach-E

According to an EDF study in January, by 2027, compared with gasoline, consumers who buy electric cars will save $5,300 over the life of the vehicle. Biden has always emphasized that the benefits of switching to electric vehicles will bring Americans better jobs, lower operating costs and a healthier environment.

Environmental groups were formed out of a certain degree of disappointment.In the past week, several groups have clarified why the new rules need to be stricter than Obama’s trajectory to make up for Trump’s regression.


“Looking ahead to the next set of standards, anything that falls short of ensuring a 60% reduction in emissions and a clear trajectory to 100% electric vehicle sales by 2035 at the absolute latest represents an enormous missed opportunity,” said Carol Lee Rawn, the senior director of transportation at the sustainability nonprofit Ceres. 

Transportation is the biggest source of greenhouse gas emissions in the U.S., and the Biden administration holds a goal of reaching net-zero carbon emissions by 2050. 


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