US Car Dealers Ask Biden to Slow Down on Electric Vehicles

Car dealers across the United States have been reaping generous benefits in the aftermath of the pandemic and the breakdown of just-in-time inventory structures, but they now raise a red flag about the complexity of selling electric vehicles. As a result, nearly 4,000 dealers around the country have penned an open letter to President Joe Biden, urging the administration to decelerate their ambitious plan to ramp up electric vehicle (EV) adoption by 2032.

“We are auto dealers from across the country who collectively sell every major brand in the U.S. We are small businesses employing thousands of Americans. We are deeply committed to the customers we serve and the communities where we operate, which is why we are asking you to slow down your proposed regulations mandating battery electric vehicle (BEV) production and distribution.”

Supporting Dealerships via evvoiceofthecustomer.com

The U.S. is lagging behind Europe and China in regards to purchasing electric vehicles. And even though, each year, car buyers are looking toward eco-friendly electric cars, even the most optimistic estimates for 2023 don’t predict EV adoption reaching the double-digit percentage range.

This comes in light of an awareness that the most significant contributor to America’s carbon footprint is based on being a motor-driven society. Responding to this, in April, the U.S. Department of Energy put forth a proposed rule to change how the government evaluates each car manufacturer’s average fuel efficiency. If accepted, this rule will pressure manufacturers to produce and sell more EVs to avoid hefty penalties. This comes on the heels of a previous White House goal seeking a 50% share of EVs in all new cars sold by 2030.

However, such a goal seems too high-reaching, according to the car dealers. They argue that new electric vehicles are stacking up in their lots without finding buyers. Also, the notable dealer markups have only added to the conception of electric vehicles being steeply priced.

According to Jantoon Reigersman, CEO at TrueCar, “EVs are selling three times as slow as [internal combustion engine] cars. And so dealers that were forced to make investments on the electrification space, forced to have floorplan financing against these cars, are suddenly running against 90–93 days of inventory turn vis-a-vis 31–32 days for the internal combustion cars. And that obviously is a real issue for them.”