As car dealers gather this week for the annual National Auto Dealer Association (NADA) meeting in Las Vegas, the EV Voice of the Customer is again urging President Joe Biden to slow down federal electric vehicle (EV) mandates.
EV Voice of the Customer now counts a total of 4,763 franchised car dealers, up from the 3,882 announced last November, as part of their coalition in calling for the slowdown due to U.S. car buyers not ready to make such a change to EV. The groups says dealers who have signed up represent all major vehicle manufacturing brands spanning the 50 states.
In a new letter to President Joe Biden published Jan. 25, they write “Mr. President, our letter in November asked that you tap the brakes on the electric vehicle mandate. We now ask that you hit the brakes.”
Regulations Gone Too Far
“Since the first letter, the evidence continues to mount that these regulations go too far too soon,” wrote Mickey Anderson, President & Chief Executive Officer at Baxter Auto Group in an email announcing the new signatories.
“Every day seems to bring new headlines about auto companies cutting electric vehicle production because of softening demand, rental car companies divesting of EVs, and motorists stranded because they are unable to charge their EVs in the cold.”
The dealers stated that the supply of electric vehicles on dealer lots is currently nearly twice the that of conventional vehicles.
Mounting EV Concerns
The group listed other headwinds dealers are seeing as the proposed regulations are expected to be finalized in the next two months, including:
- The number of electric vehicles that qualify for the $7,500 tax credit in 2024 is less than half the number that qualified in 2023 (only 19 versus 43 last year). New rules disqualify vehicles that rely heavily on components and minerals from China, which currently dominates the supply chain for batteries.
- Despite the $7.5 billion allocated two years ago to build public electric vehicle charging stations, just three have been opened to date. Based on the government’s estimates, 2.8 million public chargers will be needed by 2032, but only 170,000 public chargers exist today. That means 800 new chargers would have to be built every single day—for the next nine years.
- Electric vehicles represented just 8% of vehicles sold in 2023. The proposed regulations would require that 60% of vehicles sold in 2030 be battery electric – and two out of every three by 2032. Electric vehicle sales are not remotely on trend to meet those requirements.
“It is uncontestable that the combination of fewer tax incentives, a woefully inadequate charging infrastructure, and insufficient consumer demand makes the proposed electric vehicle mandate completely unrealistic,” the letter states.
President Biden’s Green Plan
At issue is the Environmental Protection Agency’s tailpipe regulations announced in April 2023 designed to improve air quality and reduce U.S. greenhouse gas emissions.
According to the White House, under the regulations, 67% of new sedan, crossover, SUV and light truck purchases, up to 50% of bus and garbage truck purchases, 35% of short-haul freight tractor purchases, and 25% of long-haul freight tractor purchases could be electric by 2032.
President Biden previously set a goal of ensuring 50% of car purchases are electric by 2030. The White House at that time said the rules would provide a “clear pathway for a continued rise in EV sales.”
Rash of EV Bad News
The new letter comes as concerns about the performance of EV’s have risen since the first letter was sent.
“Every day seems to bring new headlines about auto companies cutting electric vehicle production because of softening demand, rental car companies divesting of EVs, and motorists stranded because they are unable to charge their EVs in the cold,” said Anderson.
The EV Voice of the Customer letter restated that they share the Biden Administration’s belief in an electric vehicle future, only that they are asking “that you not accelerate into that future before the road is ready.”
“On behalf of our customers, we ask that you pause on the electric vehicle mandate… wait for the American consumer to make the choice to buy an electric vehicle, confident that they are affordable and won’t strand them because of a lack of charging stations.”