Toyota executive delivers a devastating blow to Biden’s EV push, declaring mandates “impossible” to meet.
It’s the kind of government overreach that even Tesla CEO Elon Musk opposes.
At a Glance
- Biden Administration aims to increase EV sales from 6% to 67% by 2032
- Toyota’s North American COO calls EV mandates “impossible” to meet
- Proposed EV mandate could eliminate 117,000 auto manufacturing jobs
- Automakers face challenges with EV sales and consumer demand
Toyota Executive Slams EV Mandates as Unrealistic
In a stark rebuke to the Biden administration’s ambitious electric vehicle (EV) goals, Toyota’s North American Chief Operating Officer, Jack Hollis, has voiced strong criticism against U.S. policies promoting rapid EV adoption. Hollis didn’t mince words when he described these policies as “de facto mandates” that are severely misaligned with consumer demand and market realities.
“I have not seen a forecast by anyone … government or private, anywhere that has told us that that number is achievable. At this point, it looks impossible,” Hollis stated bluntly, referring to the aggressive EV sales targets.
Toyota says California-led EV mandates are 'impossible' as states fall short of goal https://t.co/SA3hRVDXHp
— CNBC (@CNBC) November 8, 2024
Biden’s EV Push: A Disconnect with Market Reality
The Biden-Harris administration has made EVs a cornerstone of their climate agenda, introducing a tailpipe emissions rule in March that would require about 67% of all light-duty vehicles sold after 2032 to be EVs or hybrids. This ambitious target stands in stark contrast to the current market share of EVs, which hovers around 6%.
“The whole EV ecosystem is ahead of the consumer. It’s not in alignment with consumers. It’s just not,” Hollis emphasized, highlighting the disconnect between policy goals and market readiness.
This push for rapid EV adoption isn’t just a federal issue. The California Air Resources Board’s “Advanced Clean Cars II” regulations mandate that 35% of 2026 model-year vehicles be zero-emission, further pressuring automakers to accelerate their EV production timelines.
Job Losses: The Hidden Cost of EV Transition
While the Biden administration touts the environmental benefits of EVs, they’ve been less vocal about the potential job losses in the auto industry. A report from the America First Policy Institute paints a grim picture, projecting that the EV mandate could result in a net loss of 117,000 auto manufacturing jobs nationwide.
“[T]he industry is going through a transition unlike anything we’ve ever seen. There’s a pretty strong chance that there will be fewer people building these cars, fewer people building the parts to these cars, and that will create challenges in some automotive communities,” warned Brett Smith, an industry expert.
The Midwest, long the heart of America’s auto industry, stands to be hit hardest. Michigan, Indiana, and Ohio are projected to lose 25,000, 16,000, and 14,000 jobs respectively. Southern states like Tennessee, South Carolina, and Alabama would also face significant job losses.
Despite receiving billions in subsidies from the Biden administration, American automakers are already retreating from their ambitious EV goals. Ford, a pioneer in the EV space, reported a staggering $1.2 billion loss on EVs in the third quarter alone. The company has resorted to offering incentives like free EV chargers to boost flagging sales.
The stark warnings from industry insiders like Hollis serve as a wake-up call to policymakers. While the goal of reducing carbon emissions is laudable, the current approach appears to be putting the cart before the horse. Instead of arbitrary mandates, a more measured approach that considers market readiness, consumer preferences, and the economic impact on American workers is desperately needed.
Let’s hope Musk’s involvement in the next Trump administration resolves this madness.
