SHOPSMART AUTOS – CUSTOMER INFORMATION – JANUARY 24, 2021 -1
Biden administration promises an EV era, new world for the auto industry
At 12 p.m. ET on Jan. 20, Joe Biden was officially sworn in as the 46th President of the United States. With the newly minted administration, Biden now has the power to iron out and execute big changes for the automotive industry, transportation ecosystems and the overall US infrastructure. Here’s what we can expect from Biden as he enters office.
Electric vehicles for the masses
During his campaign, Biden called for policy and investment changes to usher in a new era for American automakers — one they’re already starting to embrace. It starts with shifting personal transportation from cars powered solely by gas engines to a future where batteries and electric motors do the heavy lifting. According to the policy Biden laid out during his campaign, his administration aims to restore the full federal tax credit for electric vehicle purchases, though we’ll likely see other changes to the program along the way. In addition to giving automakers like General Motors and Tesla tax credits once again — the two exhausted theirs at the start of 2020 — the Biden administration will also pursue direct-consumer rebates to encourage American car buyers to swap out fossil-fuel-powered cars for zero-emission vehicles. However, Biden wants the federal government to set an example. As part of the administration’s Buy American campaign, Biden plans to include new government fleet vehicle purchases in a $400 billion procurement investment for American-made goods. This should encourage US businesses to adopt electric fleet vehicles, as well, and will include a proposal to convert all 500,000 US school buses to battery power by the end of this decade.
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EV charging infrastructure
To complement a policy that champions EVs, Biden in the past called for a national network of 500,000 electric vehicle chargers. According to the Biden campaign’s estimates last year, this EV charging infrastructure would span the nation and allow any American to travel coast-to-coast in an EV by 2030. Thus far, charging infrastructure funds came in the form of investments from businesses, occasionally supported by automakers themselves. With federal backing, electric vehicles will have a friend in the Biden administration. Perhaps most crucially, it’s just as automakers begin to seriously give their vehicle portfolios electrified makeovers.
R&D investments into batteries and other technologies
Biden’s Build Back Better plan targets aggressive federal research and development investments, and the automotive sector won’t be left out. On his website, the president calls for a $300 billion investment into R&D spanning “electric vehicle technology to lightweight materials, to 5G and artificial intelligence — to unleash high-quality job creation in high-value manufacturing and technology.” Specifically, $5 billion over five years in this proposed investment is meant for battery and energy storage “that can boost the range and slash the price of electric cars,” according to Biden’s website.
Automotive manufacturing
The president spoke at length last year about ensuring the US auto industry thrives under his watch, and specific parts of a proposed, revamped tax code will reward automakers for making cars in America. A 10% advanceable tax credit is proposed for companies making investments that will create jobs for US workers — for example, “An auto company that retools an existing factory to produce next-generation electric vehicles,” the Biden campaign website says. Additional grants and funding for carmakers looking to retool factories and invest in US manufacturing are also possible as Biden aims to create one million new jobs across the auto industry, including manufacturing, supply chain and infrastructure. Make It A Champion Day!
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