Biden plans to replace government fleet with electric vehicles

President Joe Biden plans to replace the government's fleet of automobiles and vehicles with electric vehicles assembled within the U.S., he stated Monday when signing a brand new "Buy American" govt order.

The government is a serious purchaser of vehicles. However, changing such a fleet with American-produced EVs will likely be expensive and take time. There are presently solely a handful of all-electric vehicles being assembled within the U.S. Tesla, General Motors and Nissan Motor produce EVs domestically, whereas Ford Motor and others have introduced plans to accomplish that.

"The current offerings are pretty slim, but the industry's about to unleash an avalanche of new product, and a lot of it built in North America," Kristin Dziczek, vp of business, labor and economics on the Center for Automotive Research, instructed CNBC. "Just about every U.S. plant is going to have a hybrid or electric product."

It's unclear if Biden's plan contains plug-in hybrid electric vehicles, which use a mixture of EV motors and conventional inner combustion engines. When discussing the plans, he referred to the brand new fleet being made up of electric vehicles "that are net zero emissions."

The White House didn’t instantly reply for remark.

A person drives his Tesla automobile because the Starship SN8 of SpaceX is seen behind, days earlier than a take a look at launch of the corporate's new tremendous heavy-lift Starship rocket from their services on this small city of Boca Chita, Texas, December 4, 2020.Gene Blevins | Reuters

Biden didn’t specify a timeframe for switching the government's "enormous fleet" to EVs, which value considerably greater than conventional vehicles. He stated the fleet changeover will help his administration's plan to create 1 million new jobs within the U.S. auto business.

Biden additionally introduced plans for stricter use of American-made elements in government-purchased vehicles, which can make it much more tough to swap over the fleet. He stated the present requirements require a car's elements be at the least 50% from the U.S. for buy.

"The content threshold of 50% aren't high enough and the way we measure the content doesn't account for U.S. jobs and economic activity," Biden stated. "We're going to change that as well. The executive action I'm signing today will not only require the companies make more of their components in America, but that the value of those components is contributing to our economy, measured by things like a number of American jobs created and/or supported."

GM, in a press release, stated it’s "encouraged by President Biden's commitment to supporting American manufacturing and looks forward to reviewing the details of the order."

Ford, which final 12 months launched a "Built for America" advert marketing campaign, stated it "believes that investing in America, its people, goods and services, must be a national mission."

Tesla didn’t instantly reply for remark.

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