Tuesday, November 17, 2020 – 12:29
The president-elect of the United States promises a million jobs and endorses the anti-pollution regulations rejected by Trump.
The arrival of Joe Biden to the White House represent, a priori, a remarkable accelerate in the environmental objective to transform the automobile fleet in the US. Among his campaign promises is to create a million jobs in the industry as part of a green plan that, if crystallized, force the Detroit heavyweights complete your transition to the inevitable new reality of electric vehicles.
Industry executives also count on Biden toughen emissions standards of the vehicles after four years of Trump’s permissiveness in that regard. More than a score of States, with California at the head, have staged a legal battle with the current Administration for the control of emissions that should dissipate with the arrival of the president-elect.
The hope is that it prevails a single standard for the entire country to avoid further trade barriers for brands in the wake of the war between Washington and the States. Trump always chose to lower the environmental bar of the Obama era to expedite the sale of American cars, although in practice it was an added obstacle. The regulation disparity in the country it has become a headache for manufacturers.
“We hope that a single code will be imposed at the national level,” he said. Chris Reynolds, head of US production for Toyota, in an interview with The Wall Street Journal. “And we are open to a reasonable compromise to get there.”
The other key issue will be the position of the former vice president regarding tariffs and foreign relations. A priori Biden did not enter a trade war with China or other countries that prevent companies from cutting costs by importing parts from abroad, in what would mean another important change for the industry in the face of Trump’s extreme nationalism.
Biden has imposed himself on Trump in the ‘Rust Belt’ – the cradle of the automobile in the US – with the promise of promoting this automotive industry in its fight against climate change. And it seems that the plan has permeated the companies in the area. Like the idea of a kind of Plan Renove that encourages owners of combustion vehicles to switch to battery-powered models gradually. It will be part of their goal to rely exclusively on renewable energy by 2035, in an investment that would reach two trillion dollars in infrastructure.
By brands, Tesla could be one of the most benefited for the victory of Biden, whose agenda could accentuate his leadership in the electricity market worldwide. His ambition to accelerate the installation of half a million charging stations across the country is one of the points in favor, as long as it gets the funds in Washington, with the Congress and Senate divided.
The other could go through government incentives for the sale of electricity, such as programa ZEV (Zero Emissions Vehicle) of California and 13 other states and for which credit is given to companies that produce and sell zero-emission vehicles. Tesla has used this, in part, to chain five quarters of benefits. In the third quarter it registered 397 million dollars for this concept.
But in addition to Tesla, Rivian, Nikola, Arcimoto and other names in electric transportation in the US can benefit from a policy change from Washington. Even auto parts manufacturers view the change with favorable eyes. “If there is a greater emphasis on electrification, great.” Borgwagner’s chief financial officer, one of the industry leaders, told analysts.
Ford, for his part, congratulated the president-elect with “the hope that it focuses on uniting our country and enforcing policies that promote US manufacturing, sustainability, and global economic stability.” Although the Michigan-based motor giant relies heavily on a customer still subscribed to gasoline models, its ambitions lie in converting part of its fleet to electric. They already have the Mustang Mach-E between the options in the US and four hybrids. In 2022 they will debut the E-Transit van starting at $ 45,000.
General Motors live a similar situation and hope that the new Administration favors their plans. Ken Morris, vice president of autonomous and electrical programs, said they hope they can “work with Biden in support of policies that will encourage greater adoption of electric vehicles in all 50 states and encourage investment in R&D and manufacturing. ”No one, at the moment, seems to regret Trump’s departure.
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