Could GM’s EV Program Recommendation Help Electrify Detroit?
In comments responding to President Trump’s notion to essentially freeze the fuel efficiency standards put in place by the Obama administration, General Motors (GM) announced this week their proposal for emission and electrification standards for automakers through 2030. GM predicts that their proposal, which is based off of the ZEV program in California, could lead to over 7 million long-range electric vehicles being on the road by 2030.
Going Electric
GM’s proposal starts out slow and gradually increases the electric standards for vehicles as time passes, while leaving flexibility for adjustments due to production costs and other factors that may impact sales. Under the proposed program, by 2021 about 7% of vehicle sales must be electric vehicles. Each year after that the standard would increase by 2%, leaving a projected 25% of all vehicle sales being electric by 2030. According to GM, this could result in a reduction of up to 375 million tons of carbon dioxide emissions between 2021 and 2030.
Although this plan could be a major influencer in the future of fuel and safe emissions, it’s hard not to think about GM’s current and future position in EV production should this plan take effect. GM already produces a variety of electric vehicles, such as the Chevy Volt and Bolt, and already plans on offering at least 20 electric options worldwide by 2023. With their Big Three counterparts favoring a more flexible program that allows for more traditional fuel-consuming vehicles, which reflects the less-developed electric programs of Ford and FCA, one may think this is a scheme to boost GM’s EV sales above their competition. However, with Ford recently announcing their shift of focus on large vehicles and EVs, it isn’t unrealistic that the other Motor City powerhouses may conform to these standards and start pushing electric options.
Although we can’t say anything about the future, this program may be a little far-fetched for the current market. In 2017, less than 1% of vehicles registered nationwide were EV, and in California, the leader in EVs, their electric registration was only 2.6%. For this program to really catch on, we will need to see consumers move away from pickups and SUVs in favor of EVs, or automakers will need to offer larger electric options to fit consumer tastes.
Conclusion
Either way, Detroit could see an uptick in commerce and economy. As the established powerhouse of the automotive industry, Detroit is prepared to continue its comeback from a decade ago and keep producing traditional vehicles. Should this program or something similar take effect, the Big Three will adopt and Detroit will not only see a reduction in emissions but an increase in jobs and eco-friendly technology. It’s a win-win situation for the city, we just need to wait and see what happens.
Holbrook Auto Parts has been around Detroit long enough to see a lot of change in the automotive industry, and we’re excited for what may come next. Vehicle electrification could prove to be an important factor in mobility for future generations, and we’re eager to learn more about it as the technology advances. Stop by one of our locations for the best parts and service for your car anywhere in the Detroit area!
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