US President Biden on Monday (25th) pledged to replace approximately 650,000 US government cars and truck fleets with electric vehicles, focusing on the revitalization of the auto industry, the Americanization of parts, and the transformation of renewable energy.
After signing an executive order to “buy American goods,” Biden said on Monday: “The federal government has a large-scale fleet. We will replace these current vehicles with electric vehicles made by American workers.”
According to data from the US General Services Administration (GSA), the US government owned 645,000 vehicles in 2019. As of July last year, only 3,215 of the US government vehicles were electric vehicles.
This means that the U.S. government may need to spend more than 20 billion to replace the fleetUSD, But fully adopting American-made electric vehicles is expensive and time-consuming. Currently only Tesla (TSLA-US),General Motors (GM-US), Nissan manufactures electric cars in the United States, Ford (F-US) And other automakers also plan to announce the establishment of plants in the United States.
Tesla closed 4% higher on Monday to 880.80 per share USD, But GM fell 3.6% and Ford fell 2%.
In addition, Biden also criticized the current US government procurement regulations, saying that the current threshold for at least 50% of auto parts to come from the US is not high enough and plans to increase this ratio. But this will also increase the difficulty of changing the fleet.
Biden said that the plan to replace the fleet is expected to create 1 million new jobs for the US automotive industry, automotive supply chain and automotive infrastructure, from parts and materials to the construction of electric vehicle charging stations.
Biden supports the provision of new discounts for consumers to buy electric vehicles, rewards people for replacing old vehicles with new electric vehicles, and encourages the manufacturing industry to establish or reorganize factories to assemble electric vehicles and parts, vowing to build 550,000 electric vehicle charging stations, At the same time invest more resources in renewable energy research.
Kristin Dziczek, Vice President of Industry, Labor and Economics of the Automotive Research Center (CAR) said: “Currently, there are few products in the industry, but a large number of new products will be released in the future, and most of them will be manufactured in North America. Almost every American manufacturer will have oil. Electric hybrid or electric products.”
It is not clear whether Biden’s plan includes plug-in hybrid electric vehicles, which use electric motors and traditional internal combustion engines, because Biden only stated that the new fleet will consist of “zero-carbon emission” electric vehicles. .
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