Source: Finance Association
① According to sources, the US government plans to ease restrictions on automobile emissions and give automakers more transition time; ② in the new regulations, it is expected that electric vehicles will account for less than 60% of production by 2030, compared to 60% of previous regulations; ③ the final draft rules are undergoing cross-departmental review and are expected to be released in early spring.
According to sources on Sunday (February 18), the US Biden administration plans to ease restrictions on automobile emissions and give automakers more transition time.
The US Environmental Protection Agency (EPA) proposed a “2027-2032 Proposal” in April last year to drastically reduce exhaust emissions and increase sales of electric vehicles. The proposal calls for a 56% reduction in new vehicle emissions by 2032; in addition, it requires car manufacturers to account for 60% of new vehicle production by 2030 and 67% by 2032.
Related automakers and the American Federation of Auto Workers (UAW) have previously urged the Biden administration to slow the proposed growth in electric vehicle sales. They pointed out that electric vehicle technology is still too expensive for mainstream American consumers, and more time is needed to develop charging infrastructure.
The UAW said the US Environmental Protection Agency's proposal should be revised to “gradually” raise the level of strictness and be implemented “over a longer period of time.”
The Automotive Innovation Alliance (AAI) also stated last year that this “is neither reasonable nor possible.” The organization is an industry organization representing companies such as General Motors, Ford Motors, Stellantis, Toyota, and Volkswagen. AAI also suggests that the sales share requirement for electric vehicles should be reduced to 40%-50% by 2030. In the past 2023, electric vehicles accounted for about 8% of total sales.
On Sunday, AAI CEO John Bozzella emphasized that the next few years will be critical to the electric vehicle market. “Give the market and supply chain an opportunity to catch up, maintain customers' ability to choose, put more public charging stations online, let industrial credit and inflation reduction laws work, and help transform the industry.”
Proposed new regulations
According to estimates, the revised final regulations to be announced by the US government as early as next month are expected to slow down previously proposed emission requirements. According to sources, electric vehicles are expected to account for less than 60% of production by 2030 under the new regulations.
A US EPA spokesperson said the proposed final draft rules are undergoing an interdepartmental review and plans to finalize a rule that is “easy to implement, ensures the reduction of harmful air and climate pollution, and ensures economic benefits.”
White House climate adviser Ali Zaidi said in a statement on Sunday that the US is “harnessing the power of smart investments and standards to ensure that American workers lead the global auto industry.”
The Automotive Innovation Alliance AAI organization met with the White House and the US EPA last week to discuss the proposal.
Pablo Di Si, CEO of Volkswagen America, said, “The government has always been happy to hear from us... I hope we can see some changes.”
Additionally, the EPA is expected to address other concerns raised by car manufacturers, including easing a proposal to drastically reduce particulate emissions from gasoline-powered vehicles.
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