[By Guancha Observer Network, Pan Yuchen, Edited by Gao Shen] Due to poor market performance, the U.S. automotive electrification process has started to reverse.
On May 22nd local time, the U.S. Senate passed a resolution prohibiting California from halting the sale of gasoline vehicles before 2035. This plan had previously been adopted by 11 other states that account for one-third of the U.S. auto market.
According to Reuters, this vote aims to authorize President Trump to revoke the exemption granted to California last December by the Environmental Protection Agency (EPA) under former President Biden's leadership. The exemption allowed California to require at least 80% of new cars to be pure electric vehicles by 2035.
Traffic congestion in California Reuters
In addition, the Senate also voted to cancel the EPA's approval of some of California's plans in 2023. These plans required an increase in the number of zero-emission heavy-duty trucks and imposed compliance requirements on low-nitrogen oxide or ultra-low nitrogen oxide for heavy-duty highway and off-road vehicles and engines.
In response to this result, Gavin Newsom, Governor of California, stated that the Senate's vote was unconstitutional and would cost California taxpayers an additional $45 billion (approximately RMB 323.8 billion) in healthcare expenses. Newsom emphasized that he will respond to the "unconstitutional attack" against California through court appeals.
In 2020, California first announced this plan, requiring that by 2035, at least 80% of new vehicles should be pure electric vehicles, with the remaining 20% being plug-in hybrid electric vehicles. According to California regulations, 35% of light-duty vehicles for the 2026 model year must be zero-emission fully electric models.
However, many automakers have stated that given current electric vehicle sales figures, they are unlikely to reach this figure. In other states that adopt these regulations, electric vehicle sales are 10% or lower. Moreover, states such as Vermont and Maryland have postponed their compliance plans.
Therefore, the Alliance for Automotive Innovation, which represents General Motors, Toyota, Volkswagen, and Hyundai, supports the Senate's voting result. As General Motors stated, this result aligns emission standards with today's market realities.
John Bozzella, CEO of the Alliance for Automotive Innovation, also stated that the above electric vehicle sales targets have never been achieved. To meet these requirements, limited capital for the electric transformation would have to be redirected toward purchasing Tesla credits. Tesla did not immediately comment.
In addition, the U.S. House of Representatives also passed a separate bill on May 22nd, which will terminate the $7,500 (approximately RMB 54,000) tax credit for new electric vehicles and impose a $250 (approximately RMB 1,800) annual road maintenance fee on electric vehicles. It will also repeal vehicle emissions regulations designed to encourage manufacturers to produce more electric vehicles. It will also gradually eliminate the production tax credit for battery production by 2028.
This article is an exclusive contribution from Guancha Observer Network and cannot be reprinted without permission.
Original source: https://www.toutiao.com/article/7507546785703805475/
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