September 25, 2022

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Most American car dealers consider Biden's electrification program to be very ambitious

Most American car dealers consider Biden’s electrification program to be very ambitious


Joe Biden will be very progressive with his green agenda. (Photo: Shutterstock)
Plans for electrification in the United States are far less ambitious than in Europe, but have received little support from American car dealers. This was revealed in a study conducted by the American dealer trade magazine Autoniews. President Joe Biden’s management wants half of all new cars sold by 2030 to be EVs (in the EU, the goal is for all new cars to have zero emissions by 2035). Only 16 percent of respondents (196 dealership managers) support that goal. Sixty percent are against it.

For example, Autonews quotes an entrepreneur: “I think the biggest problem is what they are trying to do. He put the cart in front of the horseஇல்லை No infrastructure. “Another said,” Had it not been for the chip shortage, the Biden administration would have pushed the auto industry into a recession anyway.

Dissatisfaction

The Autonomous Survey shows that Biden has not made a name for himself among auto companies in the country in its first year anyway. Fifty-one percent of respondents said the new government had negatively impacted their business. They point to rising inflation, higher gas prices, government regulation and the drive for electric cars ahead of market demand as the main drivers of their dissatisfaction. In the United States, about 3.6 percent (ph) of new cars sold in 2021 are EVs. In the EU it is about 24 percent.

Best year

The negative trend contradicts the positive figures from the US dealership sector, according to Autonomous reports based on figures from the National Association of Automobile Dealers (NADA). The average U.S. dealership recorded a net profit of about $ 3.4 million as of October 2021. This is much higher than the 2020 record year of average dealership full-year profit of $ 2.1 million.

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Sales of about 15 million passenger cars ended in 2021, an increase of 3.1 percent compared to 2020 sales volume. 2022 will be an even better year, according to Autonomous News. “This will be the most profitable year for dealers ever to record, as there is a low level of inventory close to history,” said Tyson Zomini, vice president of data and analysis at JD Power.

Nada also expects 2022, the company writes on its website: The trade association expects sales of 15.4 million new cars this year, an increase of 3.4 percent compared to 2021.