President Joe Biden said on Monday that the US government would replace the entire federal fleet of cars, trucks, and SUVs with electric vehicles manufactured in the United States, a commitment to a broader campaign of generating and supplying 1 million new jobs to the American auto industry Chained with promise.
The commitment, if tolerated, could give a boost to US automakers, particularly those with diverse portfolios including passenger cars, commercial vans and light trucks.
Biden commented before signing the Made in America executive order, which places strict rules on federal government procurement practices. The government has existing “Buy American” regulations, which state that a certain amount of a product must be purchased in the US to qualify for a federal contract.
Biden said the order removes flaws and aims to increase purchases of products made in the United States. The executive order increases the range of that product and prioritizes the price of household goods – meaning the difference in price by which the government can purchase the product for a non-US supplier. It also updates the process of how the government decides if a product was made sufficiently in the US.
In the middle of his speech, Biden said the Buy American directive would expand the federal government’s massive fleet of vehicles.
“The federal government also has a large fleet of vehicles, which we are going to replace with clean electric vehicles built right here in the US, by American workers, creating millions of jobs – a million auto worker jobs.”
The opportunity is huge. The US government had over 645,000 vehicles in its fleet in 2019 Most recently available data From the General Services Agency. Among them, there are approximately 224,000 passenger vehicles and more than 412,000 trucks.
A GSA spokesperson told TechCrunch in an email statement, “GSA is committed to exploring opportunities to leverage the federal government’s buying and leasing power to address the climate crisis.” “GSA currently manages more than 224,000 passenger vehicles in its fleet to support the federal government’s mission. Taking advantage of clean energy vehicle technology, the GSA will support the president’s climate goals, working with the American automotive manufacturing industry to ensure that these next generation vehicles are built by American workers in the US. “
It will not be easy to complete the instruction. Many of these federal vehicles are leased, which can slow the transition depending on the length of the contract. There are other constraints, including charging infrastructure and supply. And while that doesn’t seem to be a requirement, Biden has publicly stated several times – including Monday – that he supports union automotive jobs.
Tesla is considered the major US manufacturer of electric vehicles. However, the company’s lack of union workers and the high cost of its vehicles – even the less expensive Model 3 – can be a hindrance.
Ford and GM may not have a huge supply of electric vehicles at this time, but they have union shops and both automakers are investing heavily to expand their EV offerings.
GM launched New business unit Earlier this month to provide an ecosystem of electric and connected products to commercial customers as part of the company’s $ 27 billion bid to become a major electric automaker. The new business, called Brightdrop, will begin with two main products: an electric van called the EV600 with an estimated range of 250 miles, and a pod-like electric pallet dubbed the EP1.
GM has said that it plans to bring 30 new electric vehicles to a global market through 2025. More than two-thirds of the launch will be available in North America and will include Cadillac, GMC, Chevrolet and Buick, one of all GM’s brands. Represented by automaker.
Meanwhile, Ford revealed in November Configurable all-electric cargo Vans called e-transit part of its $ 11.5 billion investment in electrification. Ford has largely focused its Electrification efforts on the Mustang Mach-E’s consumer market. The e-transit, which will be built at its Kansas City assembly plant in Clacomo, Missouri, is aimed at the commercial area.
The number of new EV entrants including Rivian, Lordstown Motors and Fixer is increasing. Rivian hopes to begin production and distribution of its electric pickup truck in July, followed by its all-electric SUV. Rivian is also developing and assembling electric vans for Amazon.
Biden’s call to replace the fleet supports statements made throughout his campaign. Biden pledged to “use all levers of the federal government”, including purchasing power, R&D, taxes, trade and investment policies, to position America as the global leader in the manufacture of electric vehicles and their input materials and parts. Can be brought into