It’s been several months since we surveyed top automotive executives and insiders on the major legal issues facing the industry for our 2023 Automotive Trends Report.
As the automotive world continues to evolve and navigate a shifting legal landscape, we look at some of the major themes driving it forward… and the ones that might be in the rearview mirror.
How is Government Policy shaping the future of the automotive industry? Mary Beth McGowan, Andy Buczek, and James Brandell dive in.
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Link to Fuel efficiency standards Fuel efficiency standards
More than half of all respondents to our 2023 Automotive Trends Report viewed “stricter fuel efficiency standards” as a primary driver of automotive activity this year. Six months later, new regulations from the EPA and NHTSA indicate the Biden administration has only tightened its grip on fossil fuel emissions. In April, the EPA proposed the “strongest-ever” pollution standards for all light-duty and medium-duty vehicles starting with model year 2027, which the agency believes could avoid nearly 10 billion tons of CO2 emission over the next three decades. Meanwhile, the NHTSA has proposed new standards for passenger cars and light trucks that if finalized, would increase fuel economy by 2% year over year for passenger cars and 4% year over year for light trucks.
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Link to Electric vehicle prices Electric vehicle prices
Recent actions from the Biden administration have made one thing abundantly clear: electric vehicles need to be more affordable for all Americans. In its quest to accelerate EV adoption and have 50% of all new vehicle sales be electric by 2030, the White House has announced a slew of new initiatives as part of its broader Investing in America agenda. In April, the administration announced an expansion of tax incentives for purchases of new and used EVs under the Inflation Reduction Act, in addition to earlier incentives to electrify heavy-duty vehicles and bolster the nation’s EV charging infrastructure. In July, the Department of Energy issued three new rounds of funding to modernize the nation’s electrical grid under the Grid Resilience Formula Grants program, totaling $362M to date.