Biden’s Plan To Increase EV Ownership Shot Down by Car Makers Who Say It Would ‘Substantially’ Increase Vehicle Cost

President Biden has pushed hard for the widespread adoption of electric vehicles. Last April, the Environmental Protection Agency (EPA) proposed a rule that, by 2032, two-thirds of new passenger cars and 25% of new heavy trucks sold in the US will be 100% electric. This is a remarkable development, to say the least; for perspective, only 5.8% of new cars and less than 2% of trucks sold in 2022 will be all-electric, The New York Times reported.

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The Biden administration’s ambitious plans for an all-electric vehicle future have been heartily welcomed by environmentalists, but the auto industry has largely been reluctant and even outwardly critical. In addition to its concern that producing so many all-electric vehicles in such a short time frame is too aggressive a goal, there is backlash over how much the new cars will cost consumers.

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On Wednesday, the Alliance for Automotive Innovation, a lobbying organization representing 42 auto companies that account for nearly 97% of new vehicles sold in the US, wrote to the EPA that it does not believe that Biden’s goals “can be accomplished without significantly increasing the cost of automobiles, reducing consumer choice, and harming large segments of the population and territory of the United States.”

This is a complex issue. On the one hand, an EV can easily cost $10,000 more than a gas-only vehicle, per Car & Driver; but on the other hand, EVs can often save consumers tons of money on gas over the long haul. And everyone has seen how high gas prices are. According to the Bureau of Transportation Statistics, from January to June 2022, the price of regular motor gasoline increased by 49% and the price of diesel increased slightly by 55%.

At the same time, car prices have risen dramatically. Per Kelley Blue Book, the average price of a new car is $2,250 higher in November 2022 than it was a year ago. Forking out an extra $10,000 or more for an EV may not be feasible for many car owners.

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