President Joe Biden on Monday (25) vowed to replace the U.S. government’s fleet of some 650,000 cars and trucks with electric vehicles, focusing on revitalizing the auto industry, Americanizing parts and transitioning to renewable energy.
The federal government has a massive fleet, and we will replace these vehicles with electric vehicles made by American workers,” Biden said Monday after signing the executive order to “buy American.
According to the U.S. General Services Administration (GSA), the U.S. government owns 645,000 vehicles in 2019, and as of last July, only 3,215 of U.S. government vehicles were electric.
The move means that the U.S. government may need to spend more than $20 billion to replace its fleet, but the full adoption of U.S.-made electric vehicles is costly and Time-consuming. Currently only tesla (TSLA-US), General Motors (GM-US), Nissan in the United States to manufacture electric vehicles, Ford (F-US) and other car manufacturers also plan to announce the establishment of factories in the United States.
Tesla closed Monday up 4% to $880.80 per share, but GM sank 3.6% and Ford fell 2%.
In addition, Biden also criticized the current current U.S. government procurement regulations, said the current threshold of requiring at least 50% of auto parts to come from the U.S. is not high enough, and plans to increase this ratio.
Biden said the plan to replace the fleet is expected to create one million new jobs for the U.S. auto industry, auto supply chain and auto infrastructure, from parts and materials to electric vehicle charging station construction.
Biden supports new discounts for consumers to buy electric vehicles, incentives for people to trade in their old cars for new electric vehicles, and incentives for manufacturing to build or reorganize factories to assemble electric vehicles and parts, vowing to build 550,000 electric vehicle charging stations, while devoting more resources to renewable energy research.
Kristin Dziczek, vice president of industry, labor and economics at the Center for Automotive Research (CAR), said, “The industry currently offers few products, but the future will unleash a flood of new products, and most will be made in North America, with almost every U.S. manufacturer having a hybrid or electric product.
It is unclear whether Biden’s plans include plug-in hybrids, which use electric motors with conventional internal combustion engines, as Biden only said the new fleet will be made up of “zero-carbon emission” electric vehicles.
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