Dear CNCDA members,
As we all know, the California Air Resources Board (CARB) recently implemented new zero-emission vehicle (ZEV) goals to reach 100% of new vehicles sold in the state by 2035. Additionally, the Environmental Protection Agency (EPA) just proposed similar standards and guidelines regarding new ZEV sales and production requirements. These rules are already bringing dramatic changes to the automotive industry, and while California dealers are “all-in on EVs,” we are prepared to encourage all stakeholders to also step up to meet these ambitious goals.
According to a recent presentation by the Alliance for Automotive Innovation, using a new model leaf blower (meeting CARB’s emission standards) for one hour produces MORE ozone-forming pollution than driving a 2020 Jeep Grand Cherokee from Sacramento to Washington, D.C., and back. This perfectly illustrates that the burden of creating a cleaner, electrified California is not solely the responsibility of vehicle manufacturers, let alone new car dealers. If we want a cleaner California, it’s time for all industries to participate.
While this is a surprising story, dealers are STILL willing and ready to help meet the standards when it comes to selling EVs in our state. However, with only about 20 out of 91 EV models qualifying for new Inflation Reduction Act tax credits, it is evident that manufacturers will also need to put in the work to make EVs that qualify for these rebates more available and financially accessible to buyers.
The state and federal governments must also address charging infrastructure issues to meet their goals. According to data from the U.S. Department of Energy’s Alternative Fuels Data Center, there are currently 5,060 electric charging stations in the U.S. as compared to 15,057 gas stations (most of which have multiple pumps, of course). This highlights the need for significant investment in charging infrastructure from all stakeholders, including the government, utilities, and other providers. As dealers, we are essential for EV distribution in California. However, our members cannot also be responsible for manufacturing affordable EVs AND installing and maintaining charging systems throughout the state; the burden is far too heavy for one group to carry alone. Put simply, we are car dealers and not fueling stations.
Additionally, data from our newest Auto Outlook report shows that while ICE vehicles still dominate, new hybrid/electric vehicles accounted for 34.2% of new purchases in Q1 of 2023, demonstrating again that dealers are doing our part! As we work towards a future with 100% ZEVs, it is essential to remember that changes in public sentiment, affordability, access, and infrastructure will not happen overnight and cannot be a burden placed solely on the shoulders of California’s new car dealers.
These new ZEV requirements are bringing significant changes to the automotive industry, and our members reaffirm their commitment to offering the best EVs on the market to California’s motoring public. That said, these vehicles need a fueling infrastructure that meets the needs of all Californians, whether higher or lower income, urban or rural, homeowners or renters. We are and will continue to do our part as automotive retailers, but all stakeholders need to step up and take on their fair share too. By working together, we can achieve a future with cleaner cars and a more sustainable future.
Sincerely,
Brian Maas, President
California New Car Dealers Association
