Biden officials are stressing that the new auto greenhouse gas emissions standards they rolled out on Wednesday aren’t an electric-vehicle mandate. But the liberal press and climate lobby don’t buy it, and neither should Americans.
The Environmental Protection Agency somewhat eased CO2 emissions requirements through 2030 from its proposal last spring while maintaining essentially the same end-point for 2032. That means gas-powered cars can make up no more than 30% of auto sales by 2032. Make no mistake: This is a coerced phase-out of gas-powered cars.
Auto makers lauded the Administration for “moderating the pace of EV adoption” in “the next few (very critical) years of the EV transition” while calling its targets “still a stretch.” The Administration has taken auto companies hostage, threatening to cause financial carnage across the industry with its EV mandate. CEOs are grateful for the delay in execution.
EVs made up less than 8% of new auto sales last year, and more than half were Teslas. They accounted for less than 4% of General Motors and Ford sales. Foreign luxury auto makers such as BMW (12.5%), Mercedes (11.4%) andPorsche
(10%) will have an easier time meeting the Biden mandates because their affluent customers can more easily afford EVs.
The average price of a new EV is roughly $50,000, and only two cost less than $40,000 as of December: the Chevy Bolt and Nissan Leaf. Some makers have slashed EV prices to boost sales, but they are also losing money. Ford ran an operating loss of $4.7 billion on its EV business in 2023, equivalent to $64,731 per EV sold.
The companies are heavily subsidizing EVs with profits from gas-powered cars. This means middle-class Americans in Fargo are paying more for gas-powered cars so the affluent in Napa Valley can buy cheaper EVs. This cost-shift won’t be financially sustainable as the Biden mandate ramps up, and it may not be politically sustainable either.
Most popular gas-powered pickups emit about 430 grams of CO2 per mile. Under EPA’s final rule, trucks will have to average 184 g/mile in 2027, 128 g/mile in 2030 and 90 g/mile by 2032. Ergo, the companies will effectively have to produce one to two electric trucks for every gas-powered one in 2027. The ratio will be closer to four to one by 2032.
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Author: Ruth King
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