Categories: policyStarted

The EV Race Has Started. We Need a Policy to Win It

In January, General Motors announced it will produce only electric vehicles by 2035. In May, Ford said that EVs will account for 40% of its sales by 2030. The two automakers will be pouring in $27 billion and $22 billion, respectively, to make this happen, and they’re not the only ones.

You don’t need a weatherman to tell you which way the wind is blowing. These investments are part of an industry-wide trend away from the internal combustion engine that has contributed significantly to global warming. Altruistic or not, the auto industry recognizes it needs to be a part of reducing carbon emissions and is steering itself toward a greener future.

It can’t do this work alone. And though federal and state governments need to put policy in place to support the transition to EVs, there are plenty of climate skeptics in positions of power in the United States who are creating a traffic jam.

That’s a problem. While we bicker over whether climate change is real, our economic rivals sure aren’t.

Look no further than the EV industry in China, where a huge middle class and heavy state intervention have propelled Chinese automakers to the top of this burgeoning market. The EV explosion there was no accident: Years ago, China’s government recognized the auto industry’s approaching energy shift would be an inflection point, and it has planned for it. China’s now gargantuan EV industry is the result of a multi-pronged strategy of preferential loans, direct subsidies, and consumer-side incentives, along with other forms of support.

It still gets plenty of help, but now the industry is akin to a self-propelling machine, complete with the necessary internal supply chains and industrial ecosystems that can steadily produce these vehicles and their parts. And, by design, the Chinese EV brands borne out of this effort are poised to compete with the international auto industry’s incumbent leaders. They may leapfrog them entirely.  

A world-leading auto industry is a good thing to have headquartered in your country. For decades, our own has been an engine of growth and technological ingenuity that continues to employ millions of Americans. Even today the economy in entire regions of our country is built around the auto supply chain. But while American automakers were once the global leaders in innovation and production, that won’t necessarily be the case with EVs.

That’s in no small part the result of foot-dragging. The rise of China’s automakers should serve as a wake-up call for policymakers in the U.S: Our inaction will heavily influence the future of crucial domestic industries, and our rivals will seize the opportunities that we won’t.

Some states have gotten into the driver’s seat, including by setting increasingly stringent fuel efficiency standards to

Read More

News Bot

Share
Published by
News Bot

Recent Posts

New details emerge about how Chris Cuomo advised Gov. Andrew Cuomo amid harassment inquiry

State prosecutors shed new light Tuesday on CNN anchor Chris Cuomo's involvement in managing the…

27 mins ago

‘It was an embalmed pig fetus’: Targets of alleged eBay harassment speak out

The Boston-area husband and wife who federal prosecutors allege were the target of a harassment…

27 mins ago

Bodycam video shows desperate moments after Surfside building collapse

Newly released body camera video from first responders shows the early scenes of dust, panic…

27 mins ago

Cuomo must ask how much pain he’s willing to inflict on Democrats

As far as the Democratic Party is concerned, the writing is on the wall for…

27 mins ago

Senate plods along on infrastructure bill as McConnell warns Democrats to move slowly

WASHINGTON — The Senate continued to vote Tuesday on amendments to the sweeping infrastructure legislation,…

27 mins ago

Why the GOP is choosing paranoia over saving the lives of its own voters

Right-wing state legislatures like Montana’s have rushed to stop employers from requiring vaccinations despite the…

27 mins ago