President Joe Biden will announce a new national target for electric vehicles. According to this, electric vehicles should account for at least 40% of all new car sales by 2030. It is also expected that the Biden administration by Thursday of Model Year 2026 proposed Federal Fuel Economy Standards which is based on California’s stricter regulations. How will this goal affect the shares of automakers?
Because the goal is expected to be achieved by companies such as General Motors, Ford Motor and Home, formerly Fiat Chrysler, supported. Executives from Detroit automakers are scheduled to attend an event at the White House on Thursday.
Although the President Will sign the Implementing Regulation, is that Sales target not mandatory. Instead, the document encourages the U.S. auto industry and the government to review the legislation and the Promote the introduction of electrified vehicles. Emission – free vehicles with fuel cell and battery drive as well as plug-in hybrid models with internal combustion engines are targeted.
How much will Tesla benefit from the electric car boom?
It is also expected that the Biden Administration Announces Proposed Federal Fuel Economy and Emissions Standards By Model Year 2026based on California’s stricter regulations. The proposed standards are subject to a public comment period and final approval.
While the automakers Increasingly supporting electric cars, are they mixed on short-term fuel economy standards as they are currently trying, Making profits from traditional vehicles to finance electric models. Electric vehicles were unprofitable in the past or produce lower profit margins.
It’s unclear how many automakers will support Biden’s fuel economy standards. Automakers such as Ford, Honda Motor and Volkswagen previously agreed to California’s stricter standards, which the Trump administration vigorously opposed.
Some smaller brands, such as Volvo, plan to become fully electric by 2030, while Stellantis and Ford have announced targets in line with Biden’s order of at least 40% electric vehicles. GM announced earlier this year an “aspiration” to offer exclusively all-electric and fuel cell vehicles by 2035.
Such a rapid introduction of electric vehicles faces significant hurdles such as improved charging infrastructure, consumer acceptance and low vehicle costs.
“Today, Ford, GM, and Stellantis announce their joint goal of achieving 40-50% of annual U.S. volume sales by electric vehicles (battery-electric, fuel-cell, and plug-in hybrid vehicles) by 2030 to bring the nation closer to a zero – emission future in line with the Paris climate goals. We look forward to working with the Biden administration, Congress, and state and local governments to issue policies that enable these ambitious goals.”the automakers said in a joint statement.
Is the sales target too ambitious?
Jessica Caldwell, executive director of insights at auto insights firm Edmunds, said the Sales target for electric vehicles is not ” particularly overambitious”, but will ultimately be from the Regulation and consumer acceptance.
“Car manufacturers make in this category all aggressive AnnouncementCaldwell said. “But what we’ve seen over the last five years or so is that these goals tend to be moving goals, not fixed goals.”
A previous goal of the Obama administration in 2012 was to sell at least 1 million electric vehicles by 2015. However, the US fell far short of these goals. In January 2016, Reuters reported that only about 400,000 electric cars were sold.
The USA is the world’s third largest market for electric vehicles. While total sales of new cars fell by 23% to around 14.6 million units in 2020, sales of all-electric vehicles fell by 11% to 295,000 units, according to IHS Markit.
Senior officials in the Biden administration touted the introduction of electric vehicles and the executive order as a job stimulator for American manufacturing. They said the new measures would benefit Biden’s “Build Back Better Agenda“and support the cross-party infrastructure agreement.
Officials at the United Auto Workers, which represents hourly union workers at Detroit automakers, were not so convinced that electric vehicles would boost American jobs.
“While the UAW finds that companies have made voluntary commitments to electric vehicles, the UAW’s focus is not on hard deadlines or percentages, but on preserving the wages and benefits that have been the heart and soul of the American middle class – – UAW President Ray Curry
A 2018 study by the union found that the Mass introduction of electric Vehicles That Could Cost UAW 35,000 jobs. Electric vehicles require far fewer parts than those with internal combustion engineswhat potentially less assembly work in the factory means. Many of the parts for electric vehicles are also manufactured outside the United States.
Last updated on August 5, 2021
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