Dealers Warn Against EV Regulations

By Staff Writer October 02, 2024

More than 5,000 dealerships, representing every major auto brand from every state, have posted another letter to the website, EVvoiceofthecustomer.com, trying to warn regulators and policymakers that demand for BEVs is trailing the aggressive policies pushing sales and forcing customer adoption. Customers across showrooms nationwide have been expressing concern about the affordability, reliability, and performance of electric vehicles.

“Additionally, starting with model year 2026 vehicles, which will go on sale in less than one year, one in every three vehicles sold in ZEV states must be a BEV. This is a de facto mandate, as dealerships will be allocated fewer internal combustion engine and hybrid vehicles, and due to the lack of BEV sales, the result will create excessive demand driving up prices for customers.”

In part, the letter reads, “In November 2023, nearly 4,000 auto dealerships, representing every major brand and from every state, signed a letter to President Biden raising the alarm that electric vehicles were piling up on dealer lots. In early 2024, more than 5,000 dealerships signed a second letter, stressing that our customers were voicing serious concerns about the affordability, reliability, and performance of electric vehicles.  

“On behalf of our customers, we cautioned that overly aggressive electric vehicle regulations would be out of step with customer demand… Six months later, with the 2024 elections fast approaching, it’s clear that our fears were warranted. Electric vehicle sales have flatlined this year, barely inching up from 8% of sales in 2023 to 9% in 2024 — despite generous taxpayer-financed government subsidies, an unprecedented level of incentives from manufacturers, and more EVs on the market.

 “Worse still, according to a report released in June by the respected McKinsey Co, an alarming 46% of EV owners in the U.S. said they were ‘very likely’ to switch back to owning a gas-powered vehicle for their next purchase. A recent report by consulting firm EY found that American car buyers are nearly one-third less likely to buy an EV today than they were last year. 

“The data points to one conclusion: customer interest in EVs is slowing while government EV mandates are accelerating…. And finally, we simply look at our lots and see the EVs piling up.

“…These mandates cannot stand. They are out of touch with the state of EV technology, charging infrastructure, and most of all, the American consumer. Make no mistake, if they are not changed, the cost of gas vehicles will skyrocket, as consumers vie for a shrinking pool of non-EVs.

“We implore government leaders from both parties, at the federal and state level, to get rational. These mandates must be revised in the new year or the American consumer — our customer — will find that they can no longer afford to buy a new car. Instead, they will hold on to their older, less fuel-efficient cars — which is exactly the wrong direction for the environment, automotive jobs, and the economy.”

 

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Last modified on Wednesday, 09 October 2024 12:19