Yahoo Finance Biden to Set Target for 50 Percent of New Car Sales to Be EVs by 2030
President Biden is expected to announce today that his administration, with buy-in from several major automakers, will set voluntary targets for EVs, plug-in hybrids, and hydrogen fuel-cell vehicles to account for 50 percent of new-car sales by 2030.
Ford, GM, and Stellantis released a joint statement of support for the goal, contingent on the federal government providing significant support, including money for EV infrastructure and incentives to help entice buyers. BMW, Honda, Toyota, Volkswagen, and Volvo also released statements in support of the goal.
The administration is also expected to announce plans to restore Obama-era tailpipe emissions standards and to eventually set stricter regulations for tailpipe emissions starting with the 2027 model year, though the specific targets still haven't been determined.
President Biden is expected to announce this afternoon a set of plans intended to accelerate the adoption of electric vehicles and reduce driving-related emissions. The New York Times says Biden will announce a return to Obama-era fuel economy standards, which were relaxed during the Trump administration. Biden is also expected to direct federal agencies to begin planning for even stricter emissions standards, which would take effect beginning with the 2027 model year. Biden has also said he will sign an executive order which will set a goal for EVs, plug-in hybrids, and hydrogen fuel-cell vehicles to account for 50 percent of new car sales by 2030.
The future of the auto industry is electric — and made in America.
Today I'm signing an executive order with a goal to make 50% of new vehicles sold by 2030 zero-emission — and unveiling steps to reverse the previous administration’s short-sighted rollback of vehicle standards.— President Biden (@POTUS) August 5, 2021
That last proposal would rely on automakers making voluntary commitments to EVs and EV sales, and would lack any mechanism to enforce the 50 percent goal or to punish automakers who do not comply. Several automakers, including BMW, Ford, General Motors, Honda, Stellantis, Toyota, Volkswagen, and Volvo, in addition to the United Auto Workers, have already voiced support for the Biden administration's emissions and EV sales goals.
But a joint statement from Ford, GM, and Stellantis adds an important caveat: Those automakers will strive for a 50 percent sales mix for EVs and plug-ins by the prescribed date as long as the federal government offers significant support towards that goal, including funding for EV-related infrastructure, support for domestic manufacturing and research and development, and increased incentives to encourage customers to buy the cars.
EVs now account for around 3 percent of the U.S. car sales, though numbers are beginning to rise even without new investment from the government. The Senate is poised to vote on an infrastructure bill that would provide funding for some EV-related infrastructure, but the $15 billion this bill would set aside for EVs won't be enough to fund all the initiatives that automakers say they'll need to aggressively ramp up EV sales. An earlier proposal from the Biden administration would have provided $157 billion in funding for EV infrastructure, but the number was whittled down during a bipartisan negotiation process.
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