Auto Dealers Urge Biden Administration to Reconsider EV Mandates
Dealerships Call for Realistic Approach to EV Adoption
A group of approximately 4,000 U.S. dealerships has sent a letter to President Joe Biden, expressing concerns about proposed federal regulations that would require a significant shift towards electric vehicles (EVs). The dealerships argue that the current market demand and available technologies do not support such a mandate.
Request for Reconsideration
The letter, sent on Tuesday, urges the Biden administration to reconsider its current course of action. It specifically references an EPA proposal from last spring that could potentially require 60 percent of new-vehicle sales to be battery-powered by the 2030 model year. The dealerships believe that this timeline is unrealistic given the current state of the market.
Challenges to EV Adoption
The dealerships, representing various car brands in states like California, Michigan, Colorado, and New York, highlight several challenges that hinder consumer adoption of EVs. These challenges include limited access to reliable charging networks, high vehicle costs, and range anxiety.
Legislation Addressing Challenges
While recent legislation, such as the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, aims to address these challenges through federal funding for charging infrastructure and battery production, the dealerships argue that more time is needed for battery technology to improve and EVs to become more affordable.
Consumer Concerns and Market Readiness
The dealerships emphasize that, despite the potential benefits of EVs, the majority of consumers are not yet ready to make the switch. Concerns about affordability, lack of charging infrastructure, and reduced range in extreme weather conditions are among the reasons cited for consumer hesitation.
Price Gap and Dealer Refurbishment
Currently, EVs are priced an average of $10,000 higher than their combustion-based counterparts. This price difference, coupled with the lack of strong consumer demand, poses challenges for dealerships that have invested in costly refurbishment schemes to promote EV sales.
Dealer Insights and Consumer Adoption
The letter emphasizes that dealerships have a deep understanding of consumer preferences and needs. They believe that consumer acceptance is crucial for the successful adoption of EVs and that current market conditions do not support the proposed mandates.
Concerns Beyond Partisanship
The CEO of Baxter Auto Group, who led the effort, highlights that the issue should not be politicized. The focus should be on the American consumer and their readiness for EV adoption, rather than aligning it with political affiliations.
Conclusion
The letter from the auto dealerships urges the Biden administration to reconsider the proposed EV mandates, citing current market conditions and consumer concerns. They emphasize the need for improved battery technology, affordability, and charging infrastructure before a significant shift towards EVs can be realistically achieved.
[Image: Lexus]
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