Even before dethroning Donald Trump from the White House, US President-elect Joe Biden has talked a lot about change in the auto industry to support his broader climate plan. After being officially sworn in, Biden is ready to implement his policies to increase production of electric vehicles, offer incentives for electric vehicles, reduce carbon emissions, as well as create jobs in the ailing industry, thanks to the Covid pandemic. 19.
Biden’s climate plan includes a promise to restore and promote stricter fuel economy standards that were implemented during the Obama administration but pushed back by Trump.
Under Obama’s 2012 rules, automakers had to reduce carbon dioxide emissions from passenger and light-duty vehicles by 3.5% annually from 2017 to 2021 and by 5% annually from 2022 to 2025. California has been able to set its own stricter zero. -emission standards, which are followed by 12 other US states.
During his campaign, Joe Biden made it very clear that his administration’s focus will be on green energy. Washington has been forced to rethink its long-term sourcing strategy in the United States, as China has become the world’s largest producer or consumer of nearly all the metals used to make electric vehicles, mobile phones, weapons, and other equipment. of high technology.
(Also Read: US Auto Industry Promises to Work with US President-Elect Joe Biden’s Administration)
Biden has pledged $ 400 billion in public investment for the clean energy transition, including advanced battery and electric vehicle technology.
Under Biden’s plan, the federal government will support state and local officials to build 500,000 new electric vehicle charging points by the end of 2030.
That would mark a significant increase in America’s current charging infrastructure, which has 87,600 charging points, according to data from the US Department of Energy. The European Union, by comparison, currently has 192,000 recharging points, according to the European Observatory for Alternative Fuels.
The United Auto Workers (UAW) union, which represents more than 400,000 active members, feels that a transition to electric vehicle production that makes the most of economic opportunities and ensures that there are quality manufacturing jobs for tens of thousands of workers Americans currently working with gas and diesel engines.
Biden has said his climate plan aims to create 1 million new jobs in the auto industry, from suppliers to manufacturers to infrastructure. He has also said that his policies should benefit unionized workers and create more unionized jobs.
Biden has said he wants to encourage consumers to buy electric cars through tax credits. The U.S. federal government is currently subsidizing electric cars with a $ 7,500 consumer tax break for the first 200,000 vehicles sold by an automaker. So far, only Tesla Inc and General Motors have reached the limit. Subsidies for Tesla ended at the end of 2019, while those for GM ran out on March 31.
Biden has said he also wants the tax credit to benefit middle-class consumers and prioritize buying US-made vehicles. That could pose a challenge for some automakers other than Tesla. Ford plans to build many of its future electric vehicles in Mexico and Canada. GM is planning premium-priced electric Cadillac and Hummer models that cost more than $ 100,000.
Biden has also said he wants to establish a “junk money” rebate program that would encourage Americans to swap out old, polluting cars for new electric vehicles.
(With inputs from agencies)
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