How Is VADA Reacting to This Announcement by the Attorney General? VADA proudly represents and informs dealers across the Commonwealth, many of whom share concerns surrounding the adoption and implementation of fully electric vehicles. With that mission is a responsibility to listen to consumers and dealers. What they are experiencing is a gap between legislative commitment and practical implementation, with no allocated budget for incentives or sufficient infrastructure to support achievement of the specified standards. Despite this, VADA emphasizes the inevitability of the EV revolution and Virginia’s role as a leader in fostering adoption of these exciting new vehicles. VADA advocates for comprehensive policies, including infrastructure and incentives, to support the transition to electric transportation. What Does This Recent Announcement Mean for Consumers? We urge consumers to continue to follow the developments out of Virginia and Washington to become informed buyers and sellers who are — in many ways — in the driver’s seat. We want all Virginians, and all Americans, to always have a choice in the type of vehicles they buy and sell. Where Do Federal Emissions Standards Factor In? Possible reversal of CARB doesn’t mean Virginia is free of regulation or emissions standards. States can choose to follow the California standards or the corresponding federal standards under the Environmental Protection Agency’s Clean Air Act. If CARB does not apply to Virginia, the EPA’s Clean Air Act and its parameters for vehicle emissions still do. Unlike California standards, federal regulations only pertain to emissions standards, not a particular type of drivetrain. • The EPA mandate requires 67.5% of U.S. car sales to be fully electric by 2032, leaving a significant amount of opportunity for new hybrid and internal-combustion vehicle sales. What Does This Mean for the Future of Electric Vehicles in Virginia? VADA continues to believe in an EV future, as evidenced by manufacturers investing heavily in developing these new vehicles. But regulation and policy must match reality. Under CARB or federal standards, Virginians, and all Americans, will always have a choice in the type of vehicles they buy. Virginia dealers continue to be “all in” to sell and service not only EVs, but also hybrid and ICE vehicles. Virginia dealers will continue to make investments to prepare for the electrification of the transportation industry. Is VADA Simply Aligning Itself With Each Administration’s Changing Policies? As a nonpartisan organization, VADA aligns and support policies that meet the needs of consumers and dealers and what we believe is best for Virginia at any given time. You Have Publicly Supported CARB and Virginia’s Adoption. Why Are You Changing Your Stance Now? Our position in support of the ZEV mandates was not the traditional posture of dealer associations. We believe we charted the right course for Virginia dealers. We would not have been in the position to affect the EV issue more broadly had we taken a different position on this issue. EV adoption will be achieved only with the investment of all parties: manufacturers, dealers, electric utilities, environmental groups, government and consumers. Pricing and Demand of EVs According to Kelley Blue Book, the cost of EVs has gotten closer to traditional vehicles, but only because the cost of traditional vehicles has risen: • January 2020: Average price of EV is 34% higher than ICE ($54,669 vs. $38,747). • January 2024: Average price of EV is 17% higher than ICE ($55,353 vs. $47,401). A Boston Consulting Group study found U.S. consumer acceptance of EVs hinges on four factors: 1. 20-minute charging times. 2. 30-minute maximum to find and wait for access to a fast-charging station. 3. 350 miles or more of driving range per charge. 4. Price of $50,000 or less, along with more vehicle variety. vada.com 11
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