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Auto Dealers Call on President Biden to Reconsider Electric Vehicle Mandate

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In a powerful display of unity, over 3,000 auto dealers across the nation have banded together to send an open letter to President Joe Biden, urging his administration to reconsider its aggressive push for electric vehicles (EVs).

This coalition, representing dealerships from all 50 states and selling every major car brand, is particularly concerned about the new tailpipe emissions standards recently released by the Environmental Protection Agency (EPA), which are the most stringent regulations of their kind ever issued.

The dealers argue that while electric vehicles have their merits and appeal to some customers, the current demand for EVs is not keeping pace with the influx of battery electric vehicles (BEVs) prompted by the administration's regulations. As a result, dealerships are reporting a surplus of unsold BEVs sitting on their lots, despite deep price cuts, manufacturer incentives, and generous government subsidies.

The letter highlights the unrealistic nature of the EPA regulations, given the current and projected customer demand for EVs.

The dealers assert that the best indicator of consumer interest in the auto market is the inventory of EVs stacking up on their lots. Additionally, the coalition points out several critical challenges facing the EV industry, including the lack of charging infrastructure, energy grid instability, and the scarcity of reliable mineral supplies essential for EV batteries.

The letter concludes with a heartfelt plea to President Biden to tap the brakes on the government's electric vehicle mandate. The dealers argue that more time is needed for battery technology to advance, BEVs to become more affordable, domestic mineral sources to be developed, and charging infrastructure to be built and proven reliable. Most importantly, they emphasize the importance of allowing American consumers to become comfortable with the technology and make their own choices regarding vehicle purchases.

The EPA's tailpipe regulations, unveiled jointly with the White House in April, aim to improve air quality and reduce greenhouse gas emissions in the United States. According to these regulations, by 2032, up to 67% of new sedan, crossover, SUV, and light truck purchases, 50% of bus and garbage truck purchases, 35% of short-haul freight tractor purchases, and 25% of long-haul freight tractor purchases could be electric.

President Biden has previously set a goal of 50% electric vehicle sales by 2030, and the administration believes these regulations will create a clear pathway to achieving that goal.

However, auto dealers, such as Tom Maoli, the founder of New Jersey-based auto group Celebrity Motor Cars, argue that the mandates are forcing consumers into purchasing vehicles they do not want. Concerns about the lack of infrastructure, limited range, and higher costs are deterring consumers from embracing electric vehicles at the present time.

The alliance of dealerships emphasizes that gas-powered cars accounted for 93% of all new car sales in 2022, according to a report from the Alliance for Automotive Innovation. They also highlight that electric vehicles are currently more expensive and less efficient compared to traditional alternatives.

Furthermore, there are valid concerns about the national security risks associated with relying heavily on China, which dominates the global EV industry. China produces about 75% of all lithium-ion batteries and possesses a significant share of production capacity for key components of EV batteries.

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The coalition of auto dealers strongly believes that electric vehicles have a future in the marketplace but asserts that the consumer should have the freedom to choose their preferred type of vehicle.

They urge President Biden to reconsider the mandates and allow the market to evolve naturally, giving the American people the opportunity to decide how they will transport their families and spend their hard-earned money.

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