Three Major US Automakers to Achieve 50% Electric Vehicle Sales Share Within 10 Years

Biden Strengthens Emission Regulations... Raises to 3.7% Annually

[Asia Economy Reporter Yujin Cho] According to a report by the Wall Street Journal (WSJ) on the 4th (local time), three major U.S. automakers are expected to announce plans to raise their electric vehicle (EV) sales targets to 40-50% by 2030.

WSJ, citing sources, reported that the CEOs of General Motors (GM), Ford Motor Company, and Stellantis NV, the parent company of Chrysler, are scheduled to announce these plans at the White House on the 5th. U.S. President Joe Biden is also expected to attend the event.

WSJ added that other automakers, aside from these Big Three, are also expected to announce similar targets. These automakers’ goals include pure electric vehicles, hybrids, and hydrogen vehicles.

However, foreign media reported that the three automakers are likely to clarify in a joint statement that their aggressive EV targets depend on additional government support for the charging station industry.

The White House announcement on the day is also expected to include plans to strengthen vehicle emissions standards that will apply through 2026. The Biden administration’s proposed improvement target for reducing vehicle emissions is estimated at 3.7% annually.

This target aligns with the standards agreed upon in 2019 by the state of California and automakers during the Barack Obama administration, before former President Donald Trump relaxed the target to 1.5%.

Automakers are putting their lives on the line for the EV transition. GM plans to open battery plants in Ohio and Tennessee through a joint venture with LG Energy Solution, while Ford has established a battery joint venture with SK Innovation. Earlier, Ford declared, "We will convert 40% of our global production to electric vehicles by 2030."

Despite the industry’s high targets, the market share of EV sales remains minimal. According to the industry, EV sales in the U.S. accounted for only about 3% of total new car sales in May and June.

Meanwhile, WSJ reported that efforts to shift from internal combustion engine vehicles to an EV-centered production system could provoke significant backlash related to job issues. The United Auto Workers (UAW) union has consistently opposed the U.S. government’s EV expansion policy, expressing concerns over potential job losses.