Despite simmering dealer and consumer concerns over electric vehicle affordability and access to charging infrastructure, U.S. Energy Secretary Jennifer Granholm said the Biden administration should not be “tapping the brakes” on EVs.
“This is a question of personal choice. No, we’re not jamming EVs down anybody,” Granholm said Friday during a discussion with dealers at the NADA Show.
“We want people to come to this because they’ve … read about it and they want to check it out, or they’ve talked to their trusted dealer and gotten the option to be able to drive [one],” she said. “But the bottom line is I think this is moving to electrification.”
Granholm’s comments come after thousands of car dealerships last month urged President Joe Biden to reconsider the EPA’s proposed limits on vehicle tailpipe pollution for 2027-32 model-year cars and light trucks, which they argue will mandate an unrealistic shift to battery-electric vehicles.
The proposal, which is expected to be finalized as soon as March, could push BEVs to 60 percent of new-vehicle sales by the 2030 model year and 67 percent by 2032, according to the EPA’s projections.
“We have heard the voices of all of the stakeholders,” Granholm told Automotive News on the sidelines of the NADA Show. “We’ve been working with NADA on it, and we are committed to doing this right.”
Still, dealers have said their customers are not ready to switch to solely battery-powered vehicles because of unresolved challenges such as access to chargers, affordability and range anxiety. They also have pointed to the federal EV tax credits’ strict eligibility rules that limit access to the incentive and, therefore, lessen its impact on sales.
Some automakers such as General Motors also have adjusted their EV strategies — in some cases pivoting toward plug-in hybrids — amid weaker-than-expected EV demand.
Automakers “were very bullish and saw where the trends are going, and I think those trends are still going in that direction, perhaps not as quickly,” said Granholm, citing infrastructure, cost and cold-weather battery performance concerns.
She said the administration is also bullish on plug-in hybrids, which also are eligible for federal tax credits.
“We feel very strongly that it is the introductory step, if you will, to full electric,” she said. “It gives people the assurance that they can actually fill up in one way or another.”
Several dealership executives also recently told Automotive News that the focus should be on more affordable hybrid and plug-in hybrids — an easier sell to consumers who have range anxiety or limited access to reliable charging.
Granholm said the administration is working to address the charging infrastructure gap, and that “it’s just a matter of time” before the issues are resolved.
“Once you go EV, you don’t go back,” she said.