EV Makers Cheer Biden’s Electrifying Plan: UAW Demands Jobs Be Protected

President Joe Biden this week approved tough new emissions standards set by the Environmental Protection Agency (EPA) for cars sold in the U.S.

While it heartened environmentalists, pure-play electric vehicle (EV) makers and those manufacturers committed to a full transition to EVs, the response from the country’s carmakers union was less welcoming.

Although the EPA’s initial proposals were watered down a little, allowing a slower adoption of the rules over the first few years to allow automakers more time to respond, the requirement that two-thirds of new vehicles sold must be EVs by 2032 remained.

Carmakers Respond

General Motors Company (NYSE:GM), which had already committed to selling exclusively EVs by 2035, welcomed the Biden administration’s plan.

It said in a statement: “GM supports the goals of the EPA’s final rule and its intention to significantly reduce emissions. Although challenging, we believe our commitments and investments in an all-electric future place GM in an excellent position to contribute to the goals.”

Stellantis (NYSE:STLA), which controls a broad portfolio of U.S. and European car brands, including Chrysler, Dodge and Jeep, said: “While the later-year targets remain aggressive, the final rule improves on the proposal by better reflecting the expected trajectory of market demand and enabling infrastructure.

“It is critical that forthcoming rules align with this proposal so that US manufacturers can effectively comply with a single set of rules.”

Lobby Group And Union Response

Trade association and lobby group the Alliance for Automotive Innovation welcomed the changes to the EPA’s initial proposals.

It said: “The future is electric, but pace matters. Moderating the pace of EV adoption in 2027, 2028, 2029 and 2030 was the right call because it prioritizes more reasonable electrification targets in the next few years of the EV transition.

“These adjusted EV targets – still a stretch goal – should give the market and supply chains a chance to catch up.”

The United Auto Workers union, however, reminded the government that its first priority should be protecting jobs, and not to allow the reduction and eventual closure of gas and diesel fuel vehicle plants to give manufacturers a reason to cut workforces.

The UAW said in a statement: “This moment calls for a whole of government approach to ensure the next generation of vehicles are made in the United States and the auto industry supports quality union jobs for American workers.

“This transition should be a clear victory for working people, not another reason to look over our shoulder, wondering when our plants will close or our jobs will be cut.”

Electric Vehicle Makers

But pure play EV makers were delighted with the announcement.

Lucid Group Inc (NASDAQ:LCID), which makes high-end saloon Lucid Air and the Gravity SUV, said in a statement: “As an all-electric automaker, Lucid welcomes the final rule from the EPA and its commitment to lowering greenhouse gas emissions. We are passionate about reducing our impact on the climate while delivering an unrivaled driving experience.”

And, while Elon Musk would be the last person to congratulate any achievement of the Biden administration, he did repost a tweet on X from an ardent fan of Tesla Inc (NASDAQ:TSLA) that said: “It makes no sense to buy a new ICE vehicle right now in 2024. Pass on gas and drive a Tesla – the real leader in the electric revolution.”