In a collective effort, approximately 4,000 car dealerships across the United States have written a letter to President Joe Biden, urging him to reconsider the proposed federal regulations for electric vehicle (EV) sales. The dealerships argue that these regulations would impose an unrealistic shift to battery-electric vehicles and are calling on the President to "slow down" the EV push.

The letter references an Environmental Protection Agency (EPA) proposal that could require 60 percent of new vehicle sales to be battery-powered by the 2030 model year and increase to 67 percent by 2032. The dealerships argue that while electric vehicles have their appeal, the current demand is not keeping up with the influx of BEVs (battery-electric vehicles) arriving at their lots.

The group of dealerships, representing various car brands and operating in states such as California, Michigan, Colorado, and New York, raises concerns regarding unresolved challenges that hinder consumer adoption of EVs. These challenges include limited access to reliable charging networks, high vehicle costs, and range anxiety.

In response to these concerns, the government has already taken steps to address them. Legislation such as the Infrastructure Investment and Jobs Act and the Inflation Reduction Act includes provisions for federal funding to build a national EV charging network, boost domestic battery production, and reduce EV purchase costs for consumers.

Nonetheless, the dealerships emphasize the need for time to allow battery technology to improve, EVs to become more affordable, and charging infrastructure to be expanded. The National Automobile Dealers Association (NADA) states that its members are undergoing preparations for the transition to EVs, including investing over $6 billion in training and equipment.

NADA spokesperson Jared Allen highlights the importance of considering affordability, consumer incentives, charging infrastructure, utility capacity, resources for battery manufacturing, and model availability to ensure broad EV penetration in the mass market. Allen stresses that these factors significantly influence customer attitudes and decisions.

In other automotive news, General Motors (GM) has announced that its new labor agreement with the United Auto Workers (UAW) union will cost the automaker approximately $9.3 billion. Simultaneously, GM has outlined plans for a $10 billion share buyback program, a 33 percent dividend increase, and reduced spending at its autonomous driving unit, Cruise.

The $9.3 billion in additional costs for GM are attributed to agreements with UAW and Canadian union Unifor, averaging around $575 per vehicle over the life of the deals. The company lowered its 2023 profit expectations due to the UAW strike earlier this year and faced challenges with its Cruise self-driving vehicle unit and the rollout of its EVs.

On a positive note, Honda has made a substantial commitment to its electric motorcycle business, planning to invest approximately $3.4 billion in the sector by the end of the decade. The company also aims to increase its annual sales target to four million units in 2030, up from a previous goal of 3.5 million. Honda intends to introduce 30 new electric motorcycle models globally by 2030 and operate dedicated electric motorcycle plants from around 2027.

Furthermore, Mercedes-Benz is reshuffling its production plans for electric vehicles. The luxury automaker plans to relocate the production of its top-of-the-line EQS SUV from the United States to Berlin, Germany, during the second half of this decade. This move will make room for the higher-volume GLC EV at its Alabama factory. The GLC EV is expected to begin production in Q1 2026, with estimated volumes reaching 50,000 vehicles in the first year.

In conclusion, U.S. car dealers are seeking a more tempered approach to EV regulations, citing concerns such as infrastructure readiness and vehicle affordability. While the government has already implemented measures to address these challenges, the dealerships argue for additional time for technology advancements and market development. Meanwhile, GM faces significant costs from its new UAW contract but is embarking on a share buyback program. Honda is demonstrating its commitment to electric motorcycles with a substantial investment, and Mercedes-Benz is reshuffling its EV production plans to accommodate higher-volume models.