JAKARTA - The Biden administration proposes a new regulation of electric vehicles in the United States (US). This regulation aims to accelerate the shift from gasoline vehicles to electric vehicles, but is challenged by the Detroit automotive industry, which is concerned about its impact on employment and profitability.
The Biden administration and automakers are now in the final stages of negotiations on this regulation but could cost billions of dollars in Detroit producers and could spark disputes, especially in the election year, especially on climate policy issues.
Yes, this new regulation is indeed ambitious, launching Autoblogging, February 18 and also Reuters, the Biden administration wants to increase the market share of electric vehicles in the United States from 8 percent by 2023 to 67 percent by 2032. To achieve this target, they want to impose stricter rules on vehicle exhaust emissions.
Automotive industry giant Detroit, such as General Motors (GM), Ford, and Stellantis, stated that they cannot meet these targets quickly and favorably. They fear this regulation will burden them at large additional costs and could cause job loss.
There are several obstacles faced by the Detroit automotive industry. First, they still have many gasoline vehicles that have not been sold. Second, charging infrastructure for electric vehicles is still inadequate in the US. Third, the price of electric vehicles is still relatively expensive compared to gasoline vehicles.
In addition, there are other concerns such as potential conflicts between federal government regulations and states, then Tesla's dominance in the US electric vehicle market where Detroit manufacturers are far behind. While on the other hand, calls from environmental activists continue to strengthen for stricter regulations and a full transition to electric vehicles by 2035.
The US government said it could provide subsidies to the Detroit automotive industry to help them develop and produce electric vehicles. The government can also increase charging infrastructure for electric vehicles in the US. In addition, the government can provide incentives to consumers to buy electric vehicles.
This new regulation of electric vehicles in the US is an important step towards overcoming climate change and reducing greenhouse gas emissions. However, this regulation will also be a big challenge for the Detroit automotive industry. It is interesting to wait for how Detroit's auto industry will respond to this regulation and how the government will assist them in the transition to electric vehicles.
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