President Biden is increasingly focusing on electric vehicles. Biden signing An executive order that sets a goal for half of all new cars sold in 2030 to have some form of zero-emission driving, be it a clean electric car, a plug-in hybrid car, or a hydrogen fuel cell car. The move is intended to not only promote green transportation and limit climate change, but also help the United States “overtake” the Chinese auto industry, which is rapidly moving to electrified vehicles.
In sync with the order, the EPA and NHTSA will describe how they plan to reverse the Trump administration’s lifting of emission and fuel efficiency standards. The two agencies will collaborate using standards-based “momentum” agreements between California and automakers BMW, Ford, Honda, Volvo and VW. The EPA’s proposed rules will go into effect in the 2023 model year, and the NHTSA in the 2024 model year. This team will adhere to the standards until the 2026 model year.
The Biden administration has enlisted the support of local brands. Ford, GM and Stellantis have announced A “shared ambition” to reach the 2030 target and otherwise support Biden’s policy of electrifying vehicles.
This is an important goal. Electric vehicles have presented about 2% of US auto sales in the past three years, according to the International Energy Agency and Pew Research. While the pandemic may have played a role in limiting sales in 2020, reaching the 2030 target will fundamentally change the US auto market, not to mention the charging infrastructure needed to support it.
However, in some states, not to mention automakers, it may lag behind. By 2035, California and Massachusetts will ban all sales of new gas vehicles. GM also plans to sell purely electric vehicles by this year, and Ford will switch to fully electric vehicles in Europe by 2030. Brands such as Volvo and the Fiat Stellantis badge have also committed to full electrification by 2030. As ambitious as Biden’s plan may be, it may seem relatively modest in some respects.
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