WASHINGTON: The Biden administration and automakers are in the final stages of negotiating over ambitious new rules to accelerate the electric-vehicle transition that could cost Detroit’s automakers billions and fuel an election-year clash over climate policy.
The White House could enact proposed Environmental Protection Agency regulations as soon as March that would mandate dramatic reductions in tailpipe emissions. The administration proposal would require boosting U.S. EV market share to 67% by 2032 from less than 8% in 2023.
General Motors (GM.N), opens new tab, Ford (F.N), opens new tab and Stellantis (STLAM.MI), opens new tab — the European parent of U.S.-based Ram and Jeep – have warned they cannot profitably transition their truck-heavy U.S. fleets that quickly, according to a Reuters analysis of automakers’ sales data and a review of comments to regulators.
The United Auto Workers, which represents about 146,000 workers at the Detroit Three, has endorsed Biden for re-election. But the union has told the administration its drive for EVs puts jobs at risk. Automakers endorsed an earlier administration target to boost EVs to 50% of new vehicle sales by 2030. Groups representing auto dealers have joined in criticism of more ambitious targets, citing the slowdown in EV sales growth.
The Alliance for Automotive Innovation, which represents the Detroit Three and other established au-tomakers, said the proposals could expose U.S. automakers to $14 billion in fines for failing to hit the CO2 targets. –Agencies
