Wsj ^ | 29 Dec 2021 | The Editorial Board
The car makers get new fuel standards but may not get electric-vehicle subsidies.
Political theater can be more entertaining than what’s on TV. It’s hard not to get a chuckle watching auto makers get double-crossed by the Biden Administration after they worked so hard to promote its electric-vehicle agenda.
In the latest comic turn, the Administration last week issued new fuel-economy standards that effectively mandate that electric cars make up 17% of auto sales in 2026, up from about 3% this year. That was the day after Sen. Joe Manchin rejected President Biden’s Build Back Better plan, which includes a cornucopia of EV subsidies.
Traditional auto makers in August endorsed stricter fuel-economy rules on condition of more federal largesse. “We support the Administration’s goal of reaching an electric vehicle future,” BMW, Ford, Honda, Volkswagen and Volvo said in a statement at the time. But “bold action from our partners in the federal government is crucial to build consumer demand for electric vehicles.” The feds seem to have their own ideas of who runs this partnership.
...EPA now says that “voluntary” deal with California demonstrates the feasibility of its latest standards, and EPA cites the approving summer quotes from car makers in support of its more onerous new rules.
It’s understandable if auto executives and shareholders are upset by the double-cross, but this is what happens when business gets in bed with government as “partners.” The politicians don’t respect you in the morning.
(Excerpt) Read more at wsj.com
From the WSJ comments:
"The policy of the American government is to leave its citizens free, neither restraining them nor aiding them in their pursuits." -Thomas Jefferson
Why is the government involved in the auto industry in the first place?
The car makers get new fuel standards but may not get electric-vehicle subsidies.
Political theater can be more entertaining than what’s on TV. It’s hard not to get a chuckle watching auto makers get double-crossed by the Biden Administration after they worked so hard to promote its electric-vehicle agenda.
In the latest comic turn, the Administration last week issued new fuel-economy standards that effectively mandate that electric cars make up 17% of auto sales in 2026, up from about 3% this year. That was the day after Sen. Joe Manchin rejected President Biden’s Build Back Better plan, which includes a cornucopia of EV subsidies.
Traditional auto makers in August endorsed stricter fuel-economy rules on condition of more federal largesse. “We support the Administration’s goal of reaching an electric vehicle future,” BMW, Ford, Honda, Volkswagen and Volvo said in a statement at the time. But “bold action from our partners in the federal government is crucial to build consumer demand for electric vehicles.” The feds seem to have their own ideas of who runs this partnership.
...EPA now says that “voluntary” deal with California demonstrates the feasibility of its latest standards, and EPA cites the approving summer quotes from car makers in support of its more onerous new rules.
It’s understandable if auto executives and shareholders are upset by the double-cross, but this is what happens when business gets in bed with government as “partners.” The politicians don’t respect you in the morning.
(Excerpt) Read more at wsj.com
From the WSJ comments:
"The policy of the American government is to leave its citizens free, neither restraining them nor aiding them in their pursuits." -Thomas Jefferson
Why is the government involved in the auto industry in the first place?
