According to Reuters, the U.S. government is set to ease proposed yearly requirements through 2030 of its sweeping plan to cut tailpipe emissions and ramp up electric vehicle sales aggressively. Under the initial Environmental Protection Agency (EPA) proposal covering 2027-2032, automakers were expected to aim for electric vehicles to constitute 60% of their new vehicle production by 2030 and 67% by 2032 to meet stricter emissions requirements. The U.S. government plans to announce a relaxed version of this regulation, first proposed by the EPA, as early as March 2024.
In the revised regulations, in particular, Reuters reported that the proportion of electric vehicles in total new vehicle production is expected to ease to less than 60% by 2030. Also, the EPA will slow the pace of its proposed yearly emissions requirements through 2030 in the revised regulations.
So far, the U.S. automobile industry has argued that these government regulations must be modified to suit the industry’s reality. The United Auto Workers (UAW), which now supports the Biden administration, said the EPA proposal should be modified to increase stringency “more gradually” and occur over a “longer period.”
The Alliance for Automotive Innovation (AAI), a trade group representing GM, Ford, Stellantis, Toyota, and others, last year called the initial EPA proposal ” neither reasonable nor achievable” and urged “adopting requirements for 40 to 50% (electric, plug-in electric, and fuel vehicles) in 2030.” In particular, the Big 3 (GM, Ford, Stellantis), which mainly produce pickups and SUVs, have requested modifications to the initial regulations. Electric vehicles accounted for 8% of the U.S. automobile market in 2023, and U.S. electric vehicle sales are still small.
Notably, the proportion of pickup and SUVs, excluding crossovers, in GM and Ford’s portfolios is 46% and 59%, respectively, while Stellantis has an even higher proportion at 77%.
EPA is also expected to address other concerns raised by automakers, including a proposal to drastically reduce particulate matter from gas-powered vehicles, which the industry has argued would effectively require gasoline particulate filters on every gas-powered vehicle, Reuters added.
Meanwhile, the U.S. government announced in the spring of 2023 that 50% of commercial vehicles, such as buses and garbage collection vehicles, should be converted to electric vehicles by 2032.
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