Biden reveals U.S. plan for electric cars through 2030

US President Joe Biden will set a new US target for electric vehicle adoption on Thursday, calling for electric vehicle sales to account for 40 to 50 percent of all new car sales by 2030, according to senior officials at administration.

The goal is expected to be supported by companies such as General Motors, Ford Motor, Stellantis (formerly Fiat Chrysler) and other automakers. Executives from each of the Detroit automakers are also scheduled to attend an event Thursday at the White House.

Although the US president signs an executive order, the sales target will not be mandatory. Instead, the document encourages the US auto industry and government to strengthen legislation and embrace electric vehicles. The target includes zero-emission vehicles powered by fuel cells and batteries, as well as hybrid models with internal combustion engines.

Officials said the Biden administration is also expected to announce a proposal for federal fuel economy and emissions standards in model year 2026, which builds on California’s more stringent regulations, according to CNBC. , which was seen by Al Arabiya.net.

As automakers increasingly subsidize electric vehicles, they have meddled with short-term fuel economy standards by trying to monetize traditional cars to finance electric models. Where electric vehicles have historically been unprofitable or produce lower profit margins.

It’s unclear how many automakers will support the fuel economy standards in Biden’s plan.

Automakers such as Ford, Honda Motor and Volkswagen have already agreed to stricter California standards, which the Trump administration has fiercely opposed.

Some smaller brands like Volvo are planning to go all-electric by 2030, while Stilants and Ford have announced targets in line with Biden’s demand for at least 40% electric vehicles by then. General Motors announced earlier this year its “aspiration” to offer fully electric fuel cell vehicles by 2035.

Today, Ford, General Motors and Stellants announced in a joint statement their shared aspirations to achieve sales of between 40% and 50% of annual electric vehicle volumes in the United States by 2030, and automakers said : A zero-emission future in line with the Paris climate agreement. . “We look forward to working with the Biden administration, Congress, and state and local governments to adopt policies that will enable these ambitious goals.”

Jessica Caldwell, executive director of insights at Edmunds Automotive Insights, said the electric vehicle sales target is not “particularly too ambitious, but will ultimately depend on regulation and consumer adoption. , which remains weak ”.

The United States is the world’s third largest market for electric vehicles. While total new car sales fell 23% in 2020 to around 14.6 million vehicles, all-electric vehicle sales fell 11% to 295,000 vehicles, according to data from IHS Markit.