In a significant development heralding a triumph for Detroit automakers, the Biden administration has revealed a relaxation of proposed regulations that would have imposed stringent mandates on manufacturers concerning electric vehicle (EV) production.
The announcement, disclosed by the Department of Energy, follows intense negotiations with automakers who voiced apprehensions about meeting ambitious targets for EV adoption.
Initially, the proposed regulations aimed to propel the EV market share to 67 percent of all new car sales by 2032, representing a substantial surge from the less than 8 percent recorded last year.
However, the revised regulations afford automakers greater flexibility by decelerating the phasing out of existing regulations, which granted additional fuel-economy credits for EV sales.
This adjustment is anticipated to alleviate pressure on manufacturers, particularly the Detroit Three—General Motors, Ford, and Stellantis—known for their dependence on gas-guzzling trucks and SUVs.
The Biden administration’s backtrack on the stringent push for EVs is viewed as a calculated move, taking into account the political landscape leading up to the 2024 presidential election.
Given Michigan’s pivotal role as a battleground state and the epicenter of the US auto industry, President Biden seeks to address concerns raised by opponents, including former President Donald Trump, who criticized policies that could endanger auto jobs and potentially bolster China’s EV sector.
Under the original proposal, automakers would have incurred substantial fines for failing to meet fuel-economy mandates, with estimates suggesting potential fines amounting to $10.5 billion through 2032.
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