For the automotive industry to thrive, we need to get our federal vehicle policies right. When we do, we’ll not only cut air pollution and make serious inroads on the climate threat, we’ll also be able to increase investments in U.S. manufacturing, create jobs and lead the global automotive industry.
With the Trump administration’s enactment of less-stringent national clean-car standards, a deal between the clean-car states and five major automakers on tailpipe emissions, California’s goal of achieving 100 percent zero-emission new-vehicle sales by 2035 and President-elect Joe Biden’s promise to focus on advancing electric vehicles and spend billions to upgrade and expand the nation’s charging infrastructure — where, exactly, can we find common ground?
CALSTART just completed its third biennial survey of automotive suppliers, and the findings provide some guidance that policymakers should consider.
Consistent with past surveys, an overwhelming number of suppliers, 81 percent, agreed that more ambitious national clean-car standards tend to encourage more innovation and investment in the U.S. If nothing else, this point needs to be heard loud and clear in policymaking circles.
Compared with the surveys we conducted in 2016 and 2018, our 2020 survey of auto suppliers indicates a clear, steady and inevitable shift toward a zero-emission, all-electric future, which may even be more bullish than the automakers’ vision.
Over the past four years, suppliers’ views toward an all-electric future has shifted. Compared with when we first surveyed suppliers on the best technologies to reach the stronger 2025 clean-car goals, suppliers are now betting more heavily on 100 percent battery-electric technology.
Not only that, 61 percent of suppliers indicated that policies that encourage the uptake of zero-emission vehicles generally result in job growth at their companies. And 71 percent said if a more ambitious sales target for zero-emission vehicles was implemented, it would lead to job growth in the sector overall.
This is critical because the supplier industry employs almost three times as many Americans as the automakers themselves.
To be clear, our survey did not suggest the suppliers were united in an all-zero-emission future. Many are placing bets on other innovations to reduce a vehicle’s emissions including turbocharging and stop-start technology. This suggests that by setting strong, national clean-car standards going forward, policymakers can encourage investments in both zero-emission and other essential technologies to improve fuel efficiency and reduce emissions. We won’t achieve a 100 percent zero-emission fleet overnight, so policymakers should consider standards that would make all new vehicles more efficient across the board.
By collaborating with top automotive engineers, investors, entrepreneurs and technology developers, we can build back a better American automotive industry.
The suppliers are telling us the future can be ours. Let’s work together, step forward and make it happen.