President Biden had recently signed an executive order calling for the American government to try and ensure that half of all automotive sales in the United States are electric vehicles. President Joe Biden was joined by the head of The United Auto Workers as well as chief executives from "The Big Three". "The Big Three" refers to the three largest car manufacturers in North America (General Motors, Fiat Chrysler, and Ford Motor Company). Notably, the CEO of Tesla, Elon Musk was not in attendance. Interestingly enough, Tesla sells more electric vehicles in the United States than all of The Big Three combined. The decision to not include Elon Musk in the President's statement made on the South Lawn of The White House is likely due to the fact that Tesla does not have a unionized workforce.
The plan to shift American automobile manufactures focus to electric vehicles, is leaving some doubting the present demand for them. There is a certain level of infrastructure required for electric vehicles to be sustainable for the American public, including the installation of charging ports across the nation. Experts agree that for electric vehicles to make the jump from niche to mainstream, charging stations must be as frequent and accessible as gas stations are currently. It should also be noted, that the shift of electric vehicles to wholesale manufacturing will mean that fewer workers will be required for assembly.
What About American Automotives?
So, where does that leave American automotive manufacturers? To combat this executive order put in by President Joe Biden, American automotive manufacturers will have to fully rethink their entire operations. Though the shift to electric and hybrid vehicles has been on the horizon for some time now, an immediate deadline of 2030 for half of all automotive sales to be electric vehicles, puts the pressure on these American car manufacturers. In anticipation of this 2030 deadline, American car manufacturers are likely to soon begin furloughing and laying off staff members that are no longer needed.
According to government data, Tesla was responsible for over half of all-electric vehicles sold in 2019 at 53%. The next closest car manufacturer was General Motors, with the Chevrolet Bolt responsible for just under 5% of all-electric vehicles sold. For President Biden's plan of action to work, the expertise of Elon Musk and Tesla must be required. President Joe Biden's non-inclusion of Tesla in his push for electric vehicle sales leaves a lot to be desired from The Big Three as their current electric vehicle sales numbers are in stark contrast to the perceived end goal of President Biden. The sincerity of chief executives from The Big Three has also been called into question, as they successfully persuaded the Trump Administration to not follow Obama's fuel efficiency standards due to production costs.
There are currently state and federal incentives for the American public to buy electric or hybrid vehicles, but for Biden's goal to be possible, these incentives will need to be significantly increased to give American car manufacturers a fighting chance. As electric vehicles are seen as the future while also being cost-efficient on gas, a marked increase in consumer interest is needed from where it presently lies as current numbers are so far removed from the end goal. Incentives alone are not enough, as the present-day American infrastructure does not support 50% of all vehicles being electric.
Biden And Electric Vehicles
President Joe Biden made a pledge to get Congress to create a spending bill to support the massive infrastructure that is necessary to sustain his ambitious goals. Biden's goals are directly linked to climate change and bringing down the ever-growing fossil-fuel emissions of the United States. Biden hopes to "save the planet" with his executive order and this is only possible with the help of The Big Three. General Motors, Fiat Chrysler, and Ford Motor Company will undergo huge changes in their structure and business plan to accommodate The President's goals. Tesla will likely be required to unionize as President Biden will need Elon Musk on his side to complete a full turn-around of the American automotive industry to focus on electric vehicles.
For many, President Biden's executive order will mark an end of an era. An end to loud engines and sputtering exhaust pipes, amongst other things. The romantics of this industry, will no doubt put up a fight to keep perceived integrity to American automotive makers, though the future clearly seems electric. Jobs will be lost, lives will be changed, and automotive technology will be green (or at least greener). With an end goal of 2030 in sight, the American automotive industry will change more in the next decade than it may ever have before. The American automotive industry has a rich history of advancement and technology, and this marked shift to electric vehicles will only be the next chapter of that history. The future is electric, at least for now.