In a letter to President Biden and congressional leaders, the Motor & Equipment Manufacturers Association (MEMA) and the Alliance for Automotive Innovation (Auto Innovators) affirmed their commitment toward a net-zero carbon transportation future that includes a shift to electric-drive vehicles. The letter highlights the necessary conditions for success for nearly all motor vehicle manufacturers and suppliers represented by the organizations. MEMA represents vehicle suppliers and more than 907,000 jobs in the United States.
“We are committed to work with the administration and other industry stakeholders to develop a holistic and comprehensive strategy for the future. The policies that are put in place must consider both our current and future state to effectuate the future of our nation’s economy, workforce, environmental footprint and transportation infrastructure.”BILL LONG, PRESIDENT AND CEO, MEMA
The letter states that, for the U.S. to be a leader in this transformation, we must work collaboratively to develop a comprehensive national vision and strategy. This is not just about the future of the auto industry in the U.S. It is about the nation’s global competitiveness, economic security, and the transition of the U.S. workforce. Nations that lead the development and adoption of innovative technologies will also shape supply chains and job creation, define global standards and reshape the international marketplace. However, neither the current trajectory of consumer adoption of EVs, nor existing levels of federal support for supply- and demand-side policies, is sufficient to meet our goal of a net-zero carbon transportation future.
To establish such a comprehensive strategy, the letter outlines three key areas that are critical to ensure success:
- Consumer Incentives and Awareness,
- Charging and Refueling Infrastructure, and
- Innovation, Manufacturing, and Supply Chain Security
Key aspects of the letter:
- Automakers and suppliers will invest over $250 billion in electrification by 2023, including Plug-in Hybrid Vehicles (PHEV), Battery Electric Vehicles (BEV) and Fuel Cell Electric Vehicles (FCEV) (collectively, “EVs”). IHS Markit predicts there will be 130 EV models available in the U.S. by 2026. Even with the collective efforts of the public and private sectors, of the 278 million light-duty vehicles currently registered in the U.S., only 1.5 million are EVs. And despite growing consumer interest and more than 50 EV models available, EVs only made up about two percent, or about 300,000, of the 14.5 million new vehicle sales last year.
- We stand ready to work with the Administration to define the bold, comprehensive vision and innovation that will place the U.S. at the forefront of creating a cleaner future for motor vehicle transportation. This transformation is greater than any one policy, branch or level of government, or industry sector. It will require a sustained holistic approach with a broad range of legislative and regulatory policies rooted in economic, social, environmental, and cultural realities. Such an approach will complement and amplify significant private sector resources that will accelerate a net-zero carbon transportation future. If we work without a comprehensive plan, our nation will fall short of this goal.
- While the approach we have outlined is robust, it should not preclude other important efforts by states and localities that support increased adoption of zero emission transportation via demand- and supply- side solutions. These include corresponding purchase/lease incentives, charging options, low carbon fuel standards, regional market-based carbon reduction efforts, fleet purchases, and use of high-occupancy vehicle lanes for travel.
Read the full letter here.
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