90 Seconds with AFS - North American Competitiveness

On May 25, twenty-seven Senators addressed the U.S. Environmental Protection Agency about the current push for tighter emissions. The letter to Administrator Regan asked for the EPA to “withdraw two recent proposals to regulate tailpipe greenhouse gas emissions” because “these proposals effectively mandate a costly transition to electric cars and trucks.” Using the Biden Administration and EPA’s exaggerated numbers, the letter claimed “the proposal will require approximately 67 percent of new vehicles sold in model year 2032 to be BEVs.” While pointing to possible legal concerns of these proposals “forcing a transition to battery electric vehicles through regulations”, the letter also discussed the electrical grid, infrastructure, and consumers. EV market share will be substantially less than 67% with advances in cleaner ICEs and increased hybridization. That point aside, the senators are overlooking the benefits of these proposals. Today, EVs cost more than gas-powered vehicles, but as EV volumes rise, prices will fall. While the electrical grid is not robust enough to handle a dramatic increase in EVs, the power industry will grow to support the gradual rise in demand. The same with the charging infrastructure as businesses and entrepreneurs see the profits in adding more receptacles. Another overlooked benefit of this drive toward electrification is competition. Pushing the industry toward cleaner vehicles will help the North American industry keep pace with the global competition. As other markets legislate tighter emissions controls and restrict the ICE usage, global automakers and suppliers are increasing their knowledge base and technical savvy. North American players will fail to remain globally relevant if not pushed into these underdeveloped technologies.

For the YouTube video: https://www.youtube.com/watch?v=GtdMR2HPDpI

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Joe McCabe: [email protected]

Sam Fiorani: [email protected]