Staff Reports
In recent news, the auto industry has been grappling with a surplus of electric vehicles foisted upon them by manufacturers scurrying to meet President Biden’s fervent desire to phase out the use of traditional fossil fuels. Unfortunately for American taxpayers, the cost of this electrifying endeavor has been shifted onto their shoulders, with subsidies amounting to a staggering $50,000 for every electric vehicle sold, totaling a jaw-dropping $22 billion annually.
Biden doles out billions in subsidies for electric vehicles, but sales stall – https://t.co/bKdCo5HjFV – @washtimes @susanferrechio
— S.A. Miller (@samillertimes) November 24, 2023
Despite the billions of dollars pumped into the industry, electric vehicle sales have hit a speed bump. Auto dealers are finding themselves up a creek without an EV paddle, as they struggle to move their inventory. The demand for hybrid and gasoline-powered vehicles has revved up, leaving electric vehicles in the dust. It’s no surprise that consumers are opting for cheaper and more convenient options. After all, who wants to deal with the headache of charging their electric vehicle, especially on longer journeys?
The numbers don’t lie. Electric vehicle sales reached an all-time high of 7.8% in August, only to fizzle out and drop to 7.2% in October. The National Auto Dealers Association’s CEO, Mike Stanton, bemoaned the challenges faced by dealers, citing the mounting reasons why electric vehicles just don’t cut it for the average consumer.
Brent Bennett, a policy director at the Texas Public Policy Foundation, blames the government’s heavy-handed subsidies and regulatory push for the electric vehicle backlog. According to Bennett, it’s not the vehicles or the technology at fault, but the forced acceleration of the market beyond consumer and industry capability.
Auto dealers like Scott Kunes are feeling the pinch. Kunes reported a slowdown in sales, particularly for electric vehicles, and highlighted the hefty costs his company had to shoulder in preparation for selling electric Hummers. Despite investing nearly half a million dollars in infrastructure, the return on investment has been dismal, with minimal demand for EVs.
The Biden administration’s stringent emissions standards, coupled with hefty taxpayer-funded incentives, have left car manufacturers with no choice but to churn out more electric vehicles. On top of the $7,500 tax credit, the recent climate and tax law signed by President Biden has opened the floodgates for funding and loans, amounting to nearly $16 billion, primarily focused on transitioning to electric vehicles.
The liberal state of California is leading the charge, with a ban on new sales of gasoline-powered cars and light trucks starting in 2035. Not to be outdone, New Jersey’s Democratic Gov. Phil Murphy has also announced a similar ban by 2035. It’s a brave new world where taxpayers foot the bill for these grand electrification schemes, including funding for EV infrastructure and charging stations at the expense of traditional energy users.
The push for electric vehicles is not without its critics. Will Hild, executive director of Consumer’s Research, slammed the practice of making ratepayers foot the bill for electric vehicle infrastructure, arguing that the burden unfairly falls on those who may not even drive a car. The hefty costs and consequences of these subsidies can’t be ignored, with taxpayers picking up the tab for changes to the energy landscape.
Even as electric vehicle proponents tout the environmental benefits of their cause, the auto industry is grappling with unsold electric vehicles accumulating at dealerships. The current climate all but necessitates a reevaluation of the U.S. vehicle mix, with NADA lobbying the Biden administration to reconsider the emphasis on electric vehicles and to maintain a balance that allows consumers choices they can afford and integrate into their lifestyles.
