Detroit’s Big 3 see electric future
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Detroit’s Big Three automakers will announce today they hope 40-50 percent of new vehicle sales will be electric by 2030 as they call for billions in US government money.
The White House is planning an event on electric vehicles and fuel economy standards with President Joe Biden and chief executives from General Motors Co, Ford Motor Co and Chrysler parent Stellantis NV.
The administration this week plans to propose revisions to fuel economy requirements through the 2026 model year.
“When I say electric vehicles are the future, I’m not joking. Tune in for big news tomorrow,” Biden wrote in a Twitter post on Wednesday.
The three automakers declined to comment on Wednesday, as did the White House.
The administration has been pressing automakers to back a voluntary pledge of at least 40 percent of new vehicle sales being electric by 2030 as it works to reduce greenhouse gas pollution.
Automakers are spending tens of billions of dollars to speed EV adoption, even though US EV sales remain small.
Consulting firm AlixPartners in June said investments in electric vehicles by 2025 could hit US$330 billion, up 41 percent from the firm’s comparable five-year investment outlook a year ago.
Electric vehicles represent about 2 percent of total sales, and will be about 24 percent by 2030, it forecast.
Biden has resisted calls from many fellow Democrats to set a binding target for EV adoption or to follow California or some countries in setting 2035 as a date to phase out the sale of new gasoline-powered light duty vehicles.
Some environmental groups have been calling for enforceable requirements and tough vehicle emissions rules through 2026.
Automakers’ targets include full-battery electric, plug-in electric hybrid vehicles, which also have gasoline engines, and hydrogen fuel cell models, sources said.
Biden has called for US$174 billion in government spending to boost EVs, including US$100 billion in consumer incentives. A bipartisan Senate infrastructure bill includes US$7.5 billion for EV charging stations but no money for new consumer incentives.
The United Auto Workers union, which has been involved in White House and automaker discussions in recent weeks, has opposed EV mandates, warning it could put people out of work.
Biden’s proposed rules, which would cover 2023-2026, are expected to be similar in overall vehicle emissions reductions to California’s 2019 deal with some automakers that aims to improve fuel economy 3.7 percent annually through 2026.
The 2026 requirements are expected to exceed the Obama-era 5 percent annual improvements.
The United States pledged at a global climate summit this year to reduce emissions 50 percent to 52 percent by 2030, compared with 2005 levels.
In March, a group of 71 Democrats in the US House of Representatives urged Biden to set tough emissions rules to ensure that 60 percent of new passenger cars and trucks sold are zero-emission by 2030.
The automakers will make clear in a joint statement that the aggressive EV targets are contingent on additional government support for EVs and the charging industry.
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