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New Proposed EPA Emissions Rules Are A Challenge For Automakers

The Environmental Protection Agency (EPA) recently issued a proposal for new emissions rules requiring stronger internal combustion engine emissions cuts, demanding 13 percent yearly reduction in emissions and a 56 percent cut by 2026 over the whole fleet.

Multiple automakers are now protesting the proposed ruling according to Reuters, claiming the emissions rules timetable is too short to be met by the current available supply of EV components.

Traffic affected by the emissions rules.

The EPA’s aggressive proposal appears calculated to drive more rapid electric vehicle adoption. The new emissions rules would push 60 percent of the U.S. new car sales to EVs by 2030 and to 67 percent just two years, according to the EPA’s own projections.

GM, Hyundai, Toyota, and Volkswagen, represented by the Alliance for Automotive Innovation, countered that multiple factors make the targets from the new emissions rules very difficult to implement. These include resistance to EV adoption by U.S. car buyers, along with the hurdle of obtaining enough EV batteries, motors, and chargers in the indicated timeframe.

The new EPA emissions rules would create “significant impacts to automakers, workers, consumers and ultimately the availability of vehicles that meet the needs of individuals, families and businesses across the country,” the Alliance for Automotive Innovation said.

Traffic on the Golden Gate Bridge, the type of pollution the new emissions rules aims to reduce.

The automakers previously agreed to aim for 40 percent to 50 percent electrification of new vehicle sales in the U.S. by 2030. President Biden’s subsequent executive order set 50 percent as the target. The new proposal raises the bar further, but some environmental groups say the new emissions rules are too lax and should be even more stringent.

The Alliance notes the “proposed rules effectively require an additional 10-fold sales increase in a mere eight years” for EVs. GM says 2023 is a “breakout year” for its EV plans, and intends to introduce 30 new electric vehicles worldwide by 2025. Additionally, The General claims it will have EVs in one third of automotive segments by the same date. The segments it’s aiming for are the most popular, accounting for 70 percent of vehicle sales each year.

The General Motors logo at the Renaissance Center headquarters.

Other GM electrification plans elimination of all tailpipe emissions from its new light-duty vehicles by 2035. It expects 40 percent of its U.S. models to be battery electric by the end of 2025. GM has also earmarked $35 billion in investments for new EV programs and autonomous vehicle technologies through 2025.

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