Challenges Loom for Automakers Meeting Tougher Proposed US Emissions Rules

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Automakers are expressing concerns about proposed U.S. emissions regulations, stating that they will encounter difficulties with manufacturing and supply chains if aggressive targets for reductions in vehicle emissions are enforced.

The U.S. Environmental Protection Agency (EPA) has suggested cutting emissions sharply, leading to the expectation that 60% of new vehicles sold in 2030 will be electric, rising to 67% by 2032.

The Alliance for Automotive Innovation, a trade group representing General Motors, Toyota Motor Corporation, Volkswagen AG, Hyundai Motor, and others, argues that the proposed regulations will be hard to meet due to the challenges related to the supply chain for EV batteries, motors, and chargers, as well as customer resistance.

If the proposal is approved, it will be the most aggressive U.S. vehicle emissions reduction plan to date, calling for a 13% average annual reduction in pollution and a 56% drop in projected fleet average emissions compared to the 2026 requirements.

The auto industry group is warning that this proposal could have a significant impact on automakers, workers, consumers, and the availability of vehicles to meet the needs of individuals, families, and businesses throughout the country.

Environmentalists are calling on the Biden administration not to weaken the proposal, while some are advocating for tougher rules.

The automaker group noted that EVs represented about 6% of new light-duty vehicle sales in 2022, up from about 3% in 2021 and 2% in 2020, and that the proposal would require an additional tenfold increase in sales within eight years. They also pointed out that the EPA is proposing the most stringent criteria pollutant regulations ever, based mainly on zero-emission vehicles.

Source: Reuters


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