Over the past few years, the Biden Administration has worked to speed up EV adoption in the U.S. in a number of ways, ranging from introducing new incentives to proposing EPA emissions standards that call for a 56 percent reduction in greenhouse gas emissions from light-duty vehicles between the 2027 and 2032 model years. However, this hasn’t gone over well with a number of entities – including automotive dealers and lobby groups, with one stating that such a move could cost Ford a whopping $1 billion in penalties if it fails to meet these standards. With demand for EVs falling over the past few months, Ford has responded by pushing back $12 billion in planned investments in that area, even as it set a new sales record in 2023. Now, it seems as if the Biden Administration might follow suit by relaxing its proposed electric vehicle mandate, according to the New York Times.
This report notes that the Biden Administration plans to relax some elements of this proposed electric vehicle mandate as a way to satisfy concerns from automakers and unions, while also giving them more time to ramp up EV production over the coming years. The current plan calls for a 67 percent EV sales mix for cars and light-duty trucks by 2032, but last year, those types of vehicles accounted for just 7.6 percent of overall new vehicle sales.
Though sources indicate that this requirement will remain in place, sharp increases slated to occur between now and 2030 will reportedly be scaled back to allow for a more gradual rise in EV sales, a move that comes as concerns over slowing demand and a general lack of infrastructure loom. The concept here is to allow automakers time to drive down the cost of EVs, which is expected to help sales grow a bit more organically.
“Pace matters,: said John Bozzella, president of the Alliance for Automotive Innovation, a lobby group that Ford belongs to. “Give the market and supply chains a chance to catch up, maintain a customer’s ability to choose, let more public charging come online.”
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Comments
Not a surprise given that Americans are rejecting EVs at a significant rate.
Turns out Joe doesn’t know how capitalism works after all. I guess Farley didn’t like being forced into bankruptcy by govt fiat.
Better yet, eliminate the mandates altogether.
Most folks I know aren’t rejecting EVs; they just can’t afford a second house payment for their car. Too much greed – CEOs getting too much money.
Many people approach us when we drive our Grabber Blue Mach-E Mustang to comment on the color and sporty appearance of the EV. The most frequent comment they make is that they to would buy one if they cost less and if there was more public fast charging infrastructure.