A win for automakers as US softens EV mileage rule

[mahatmakanejeeves]

Source: Yahoo! Finance

A win for automakers as US softens EV mileage rule

David Shepardson
Updated Tue, March 19, 2024 at 11:35 AM EDT·2 min read

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By David Shepardson

WASHINGTON (Reuters) -Automakers will get significantly more mileage credits for building electric vehicles to meet U.S. fuel economy requirements than U.S. regulators initially proposed, under final rules released Tuesday.

The rule means automakers will now be able to build more gas-powered vehicles through 2030 and still meet overall Corporate Average Fuel Economy requirements than under the tougher, initial Energy Department (DOE) proposal.

The DOE unveiled final rules that soften its proposal to slash electric vehicles' mileage ratings by 72% in 2027 to meet government fuel-economy requirements. The new rules ease revisions to the calculations and gradually phase them in through 2030, rather than by 2027.

DOE assigns miles per gallon equivalent (MPGe) ratings for electric vehicles that are averaged with internal combustion vehicles to meet an automaker's overall CAFE requirements.

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Read more: https://finance.yahoo.com/news/automakers-win-us-reverses-course-142526273.html

[Voltaire2]

1. A defeat for global civilization.

"automakers will now be able to build more gas-powered vehicles through 2030".

Global heating is destroying civilization, but no problem lets make sure the plutocrats aren't bothered too much.

[MichMan]

2. Get the price of gas up to $6 and the issue will start to take care of itself

Won't need to worry about CAFE regulations then. People aren't going to make a mass push towards EV as long as gas is under $4 per gallon.

[Aussie105]

7. Gas prices here are AU $2.10/L here currently. Today.

Work that out to US $/gallon and it is close to $6.

Large scale fleeing to EVs isn't happening here.
Just people driving less.

[MichMan]

8. $6 in the US would be a 50% increase, so it would have a much bigger effect.

If you used that same formula, Australian drivers would be paying $9 USD per gallon. I suspect that would have a similar effect there as it would here.

[Gore1FL]

3. I never understood why this was a "win" for the automakers.

There will be companies who meet those goals and they will have a competitive advantage.

[MichMan]

5. Perhaps

Depends on what customers actually buy. No one can say with certainty what the price of gasoline will be which is what drives consumer decisions to buy an EV over an ICE vehicle. Will those states that have banned sales of ICE vehicles by a certain year, relax those requirements or double down on them?

If buyers prefer the vehicles that your competitors are selling that would be a losing gamble.

The other possibility is that if customers don't buy enough of the "right vehicles" thus making them miss the CAFE targets, the manufacturer could face substantial fines.

[ColinC]

4. 😑

[TexasBushwhacker]

6. Until we have high speed charging stations

as common as gas stations, plug in hybrids would be preferable.

[Mawspam2]

9. EV infrastructure isn't there yet.

Until there are equivalent numbers of charging stations in every dink town like there are gas stations now, and charging times can come down to 20 minutes, gas hybrids will be the only practical solution as a bridge away from ICE vehicles.

[mahatmakanejeeves]

10. EPA issues new rules aimed at cutting carbon emissions, boosting electric vehicles and hybrids

Associated Press Finance
EPA issues new rules aimed at cutting carbon emissions, boosting electric vehicles and hybrids

MATTHEW DALY and TOM KRISHER
Wed, Mar 20, 2024, 10:32 AM CDT • 4 min read

WASHINGTON (AP) — The Biden administration announced new automobile emissions standards Wednesday that officials called the most ambitious plan ever to cut planet-warming emissions from passenger vehicles. ... The new rules relax initial tailpipe limits proposed last year but eventually get close to the same strict standards set out by the Environmental Protection Agency.

The rules come as sales of electric vehicles, which are needed to meet the standards, have begun to slow. The auto industry cited lower sales growth in objecting to the EPA’s preferred standards unveiled last April as part of its ambitious plan to cut planet-warming emissions from passenger vehicles.

The EPA said that under its final rule, the industry could meet the limits if 56% of new vehicle sales are electric by 2032, along with at least 13% plug-in hybrids or other partially electric cars, as well as more efficient gasoline-powered cars that get more miles to the gallon.

The new standards will avoid more than 7 billion tons of planet-warming carbon emissions over the next three decades and provide nearly $100 billion in annual net benefits, the EPA said, including lower health care costs, fewer deaths and more than $60 billion in reduced annual costs for fuel, maintenance and repairs.

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[republianmushroom]

11. And a lost for the consumer.