Our Take, with Doug Sheridan

To Sum It Up: All of this suggests Biden’s EV mandate will do great harm to the US auto industry. But White House is determined to remake the industry, no matter the damage.

Our Take, with Doug Sheridan

The WSJ Editorial Board writes, Biden officials are stressing that new auto GHG emissions standards they've finally rolled out aren’t an EV mandate. But the press and climate lobby don’t buy it—and neither should you.

The EPA somewhat eased CO2 emissions requirements through 2030 from its proposal last spring, while maintaining the same end-point for 2032. That means gas-powered cars can make up no more than 30% of auto sales by 2032.

Clearly, this is a coerced phase-out of gas-powered cars. Auto makers lauded the Admin for “moderating the pace of EV adoption” in “the next few years of the EV transition” while calling its targets “still a stretch.” The Admin has taken automakers hostage, threatening to cause financial carnage with its EV mandate. So, CEOs are grateful for the delay in execution.

EPA claims the rule preserves “consumer choice” since hybrids and plug-in hybrids can help meet standards in the early years. But auto makers have no choice but to limit gas-powered, and increase EV, production to meet the mandates. The only “choice” Americans will have in the future is electric. Stellantis is already reducing deliveries of popular gas-powered cars to states that follow California’s EV mandate.

The White House claims standards will boost jobs, reduce pollution and save consumers tens of billions of dollars in fuel costs. It's false advertising. EVs require many fewer parts and workers to produce. Major auto makers have cut thousands of jobs in the past couple of years to finance their EV transitions.

Lower auto profits will also hurt Detroit’s workers who receive profit-sharing. Companies hope to make EVs profitable through increased manufacturing efficiencies, but this will mean fewer jobs. Technological disruption sometimes causes job losses, but the culprit here will be gov't mandates, not consumer preference.

As for pollution, gas-powered cars emit more particulate matter and NOx from tailpipes than EVs. But battery-powered cars are heavier and cause more wear and tear on roads and tires, which produces more soot. Generating electricity and producing the batteries that power EVs also creates particulate pollution.

Not long ago, it was cheaper to fuel an EV than a gas-powered car. No longer thanks to the govt’s force-fed renewable transition, which is raising electricity prices. Fueling up a Ford Motor Company F-Series truck now costs about $17 per 100 miles on average compared to $17.75 for an F-150 Lightning with mostly home-charging and $26.39 with mostly commercial chargers.

To Sum It Up: All of this suggests Biden’s EV mandate will do great harm to the US auto industry. But White House is determined to remake the industry, no matter the damage.

Our Take: The Board notes that auto companies are heavily subsidizing EVs sales with profits from gas-powered cars. This means middle-class Americans pay more for gas-powered cars so the affluent can buy cheaper EVs. How's that for equality?