FOX Business Jeff Flock reports from Celebrity Ford of Toms River dealership where electric F-150s aren't pulling out of the lot fast enough.
According to a New York Times report, the Biden administration plans to give automakers more time to boost electric vehicle sales amid weak demand for electric vehicles.
The administration plans to delay until after 2030 a requirement for auto companies to rapidly increase their electric vehicle sales in the next few years, the Times reported, citing people familiar with the White House plan. The relaxed regulation is part of an upcoming regulation to limit exhaust emissions that will soon be approved by the Environmental Protection Agency (EPA).
Under the EPA proposal submitted to the White House Office of Management and Budget for review, about 67% of new vehicle sales — including sedans, crossovers, SUVs and light trucks — would need to be electric by 2032, a dramatic increase of over 7 to 10 percent By then, up to 50% of buses and garbage trucks, 35% of short-haul freight tractors and 25% of long-haul freight tractors would have to be electric.
The shift comes as President Joe Biden faces competing political demands from environmentalists who want the government to take action on climate change, as well as unionized auto workers who fear the demand for a transition to electric vehicles before consumers want it, which could cause automakers to cut jobs.
The Biden admin is reportedly doubling down on crackdowns on gasoline cars
President Biden's EPA plans to delay a requirement for automakers to rapidly expand sales of electric vehicles until after 2030. (Ramsay de Give/Bloomberg via Getty Images / Getty Images)
Electric vehicles have eaten into the profit margins of leading U.S. automakers Ford and GM as consumers balk at the relatively high price of most electric vehicles. According to the Alliance for Automotive Innovation, after accounting for federal and state subsidies, the average electric vehicle costs $52,500, while the average small car costs $24,000.
| ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 12.30 p.m | -0.22 | -1.76% |
| GM | GENERAL MOTORS CO. | 38.71 | -0.29 | -0.74% |
Ford forecast a loss of $5 billion to $5.5 billion for its EV division this year in its most recent earnings report. The company has launched a “Skunk Works” team, separate from its main development unit, focused on developing a small, low-cost electric vehicle that could compete with China-based BYD's Seagull model.
Ford's profits are being gobbled up by EVS
Ford CEO Jim Farley and GM CEO Mary Barra signaled their willingness to work with other automakers on electric vehicle technologies to make them more affordable. (Bill Pugliano/Getty Images / Getty Images)
“If you can't compete fairly and fairly with the Chinese around the world, 20% to 30% of your sales are at risk over the next few years,” Ford CEO Jim Farley said.
GM CEO Mary Barra said her company is well-positioned to start breaking even on its North American electric vehicles in the second half of this year, when it will reach an annual production rate of 200,000 to 300,000 vehicles and continue to benefit from government subsidies for Electric vehicles could benefit under the EU Inflation Reduction Act.
GM missed its North American electric vehicle production targets in 2023 in part due to problems manufacturing battery modules. Barra said GM is now on track to overcome these issues and fix software bugs that impacted the launch of the Chevrolet Blazer EV this year.
The CEOs of Ford and GM are open to partnerships to compete with China
China's BYD competes with European-made electric vehicles and could enter the US market. (Portal/Kim Kyung-Hoon / Portal Photos)
The CEOs of Ford and GM signaled openness to partnering with other automakers on technologies that could make electric vehicles more competitive with low-cost options from BYD and other Chinese automakers looking to enter the European market and start selling cars in the United States. Her comments came last week at a conference sponsored by Wolfe Research.
Farley said Ford is rethinking its battery strategy to make its electric vehicle offering more economical.
“We can start to have a competitive battery situation. We can move to traditional cylindrical cells, which could significantly increase our purchasing capabilities,” Farley said. “Maybe we should do (this) with another OEM (automaker).”
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Barra echoed that sentiment during the conference, saying, “If there are opportunities to collaborate with others, particularly on technologies that are not consumer-focused, and be more efficient in both R&D and capital, we're in.”
Fox News' Thomas Catenacci contributed to this report.