Last month, the Environmental Protection Agency (EPA) announced new vehicle emissions standards for vehicles produced between the 2027 and 2032 model years, unveiling some of the strictest U.S. emissions standards yet. The new standards are intended to further incentivize electric vehicle sales. Now, however, a new report indicates that the tougher standards may actually lead to reduced electric vehicle funding on the part of automakers.
According to a report from Fitch Ratings, an American credit rating agency, the new vehicle emissions standards would likely lead to “incremental investment in internal combustion engines” on the part of automakers in order to meet the proposed targets. Essentially, Fitch Ratings argues that the tougher standards would “temper the amount of capital traditional original equipment manufacturers (OEMs) can reallocate from legacy ICE vehicles into new, electric vehicle (EV) production capacity” in order to meet the tougher emissions rules.
Fitch Ratings expects the new rules to lead to “more EV vehicle sales, fewer ICE vehicle sales and improved ICE emissions.” Full-size pickup and SUV production are tapped as two segments that will be most heavily impacted under the new rules. According to the latest projections from the EPA, EVs are expected to account for 67 percent of new light-duty vehicle sales by the 2032 model year. What’s more, EVs are projected to make up 46 percent of new medium-duty vehicle sales by the same timeframe.
The new EPA rules include a target average of 82 grams of CO2 per mile by the 2032 model year for light-duty vehicles. Meanwhile, medium-duty vehicle emissions are projected to hit an average target of 275 grams of CO2 per mile. According to the EPA, the new rules will prevent 7.3 billion tons of carbon emissions.
“Further reducing particulates and greenhouse gas emissions from ICE vehicles would require higher expenditures for research and development, and ultimately engine technology content,” Fitch Ratings argues. “OEMs would likely try to pass the incremental costs along to end consumers through vehicle price increases, which could limit marginal demand for those vehicles.”
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Comments
What a mess just to produce vehicles most people don’t want at prices most people can’t afford.
Buying a Horse is looking better every day! EV charging stations will never meet the demand as well as electric companies won’t be able to meet the demand for electricity! And don’t forget the people who live in apartments, condos and other places off the grid who need power! Tomg
Whatever GM needs to do to keep the profits rolling in, DO IT. The ICE autos are pumping the profits into the the bottom line. This is where a majority of GM investment dollar should be going. ICE should be getting 60% investment dollars from GM overall money spent to keep the profits rolling in.
The real sad thing about all of this is it will have no impact on the climate. This is all pyramid building, lots of effort to accomplish nothing. Resources and policy should be directed at climate adaptation.
Amen Patrick, with this ev climate hoax scam we are also giving control to China. They control nearly all the rare earth materials needed to make the batteries. We sit on the largest reserves of oil in the world but we are gonna transition to evs for the sake of the planet, hogwash. They are just selling us out to China.
And if these asinine proposed targets are ever enacted (I have my doubts) they will not make ONE BIT OF DIFFERENCE in reducing the temperature of the planet. Just a whole lot of virtue signalling by a totally inept incompetent, and ignorant administration hellbent on destroying this nation.
The Biden Regime is so worried about the environment, they are making ridiculous demands towards the auto industry to force them to EV’s, yet they are funding a war that is polluting the earth and has allowed over 6.3 million illegal aliens to invade the country. Those illegals will be eventually driving. Not to mention Biden using Air Force One and about 20+ vehicles for his security to go to Delaware every weekend to get his shot of adrenochrome.
Fitch Ratings expects the new rules to lead to “more EV vehicle sales, fewer ICE vehicle sales and improved ICE emissions.” Shouldn’t the last statement be “reduced ICE emissions”? Investing more into ICE is just trying to help a dead horse. The internal combustion engine has not improved and this is its last decade of production. All the manufactures will end making it by 2035 and only support it with spare parts a few more years. But if those who want to keep this dead horse running, just put up the money and stop posting against the EV takeover which will win.
Do you want sugar or Sweet n’ Low with that Kool Aide?
You’re so full of “it” your eyes are brown, GM owner.
Woeful ignorance is bliss.
ICE isn’t going anywhere. Accept it EV cultist.
The EPA is making the ICE standards so stringent in the hopes that it will just cause automakers to simply give up on ICE vehicles altogether and sell 100% EVs. Forced obsolescence. Companies like Ford and Hyundai have been laying off workers and shutting down operations specifically pertaining to future ICE development. Are they now going to rehire and reopen those operations? Highly unlikely. They’ll will just accelerate their EV plans. Besides, how many people are going to really want to be driving around in turbo-charged 3cyl vehicles that barely have enough power to go uphill with 4 occupants in them? It’s an absolute mess. Although, it’s going to take a good 30-40 more years before ICE vehicles really start to disappear from the roads.
Problem is that you cannot force people to buy what they do not want. Government putting manufacturers at odds with their customers never worked in the past and will not work now.
With his upcoming CDBC plan forcing you to only buy an EV may become a reality. Everybody in this country needs to go and look up what this means for the dollar and for your freedom which will be totally under the federal government’s control. Very scary
If ICE vehicles are taken off the board this quickly, every car manufacturer will go bust. It’ll take many years before GM, Ford and other automakers will make a profit from EV’s.
Bidet…er…Biden doesn’t care- he knows he’ll be long dead before people realize how badly he screwed this country.
It’s time for the Barras, Farleys, and Fords of the world to grow a pair and stand up for their customers, not kiss Biden’s backside.
Bwa-ha-ha-ha….so Bidumb shot himself in his foot with his latest tyrannical EO mandate !
Just do away with the EPA, and stop pushing
EV’s problem solved.
Just say NO!
The Biden predictions of such high EV VS Ice vehicles are 100% Absurd and not based in reality.
Like everything else he does.