The US automotive industry is facing concerns about job losses as more electric vehicles (EVs) hit the roads. This comes as President Joe Biden’s administration continues to push for widespread adoption of EVs, with a goal of having 50% of new cars sold be electric by 2030.
According to the United Automobile Workers, the union is confident it will protect its members from losing jobs to the electric movement. However, experts are warning that the shortage of affordable vehicles and charging concerns are major roadblocks to mass consumer adoption.
Ford Motor Company’s EV department lost $1.3 billion in the first quarter of 2024, with revenue from electric models dropping by 84% compared to last year. J.D. Power Executive Director of EV Intelligence Stewart Stropp said that as understanding of EV incentives rises, so does the likelihood of consideration. However, approximately 40% of shoppers say they do not have a solid understanding of such incentives.
Toyota Motor Corporation Chairman Akio Toyoda claims that a US electric vehicle mandate would hurt jobs in the US and Japan, citing the potential loss of 5.5 million people involved in the automotive industry. The Biden administration’s efforts to promote EVs are also being hindered by the lack of charging infrastructure, with only about eight charging stations built over two years despite a $7.5 billion budget.
Despite these challenges, Americans have shown a strong appetite for EVs, with 1.4 million plug-in electric vehicles sold in 2023 – an increase of over 50% from 2022. The U.S. Postal Service has also adopted the switch to electric, purchasing 9,250 E-Transit vans from Ford.
As the industry inches toward mass consumer adoption, concerns about job losses and infrastructure challenges persist. Experts will be watching closely as the Biden administration’s plans for widespread EV adoption take shape.
Source: https://www.washingtonexaminer.com/news/business/3253786/what-auto-industry-says-about-evs-2024