When California Gov. Gavin Newsom issued an executive order prohibiting the sale of internal combustion engine (ICE) automobiles for passenger usage in the state by 2035 and basically putting the auto industry on notice to clean up their act or leave the state, this turbocharged the electric vehicle market. As a result of high demand, EV prices have risen drastically.
The decision came as California is still witnessing record wildfires that have devastated over 10 million acres of land in recent years. Newsom has consistently demonstrated that he has no patience for climate change doubters, and with this legislation, he aims to lead California toward a cleaner, greener future, with or without federal assistance. Republicans, on the other hand, continue to urge for greater forest management as a response to wildfires.
California is both the largest new automobile market in the United States, with over 1.8 million vehicle sales in 2019, and the state with the highest electric vehicle sales in the United States. That implies that what occurs in California sets the tone and precedence for the rest of the country and the world's car sector.
With his new electric car legislation in place, Newsom hopes to pull the country into the future by taking significant action to tackle climate change. The order orders the California Air Resources Board to develop a phase-out plan that calls for 100 percent zero-emissions personal use cars by 2035, as well as as many medium- and heavy-duty vehicle applications as are considered practicable by 2045.
"We are charting a new route," Newsom stated during a news conference in front of electric cars such as a Tesla Model 3, a new Ford Mach E, and an Audi etron. "Let us not be victims of geopolitical dictators that control global supply chains and markets."
The ICE vehicle ban was met with fierce resistance from many quarters, including the oil and gas industries, Republicans in Washington, automakers, and interest groups up and down the fossil fuel food chain.
According to Newsom, the California electric car bill will cut greenhouse gas emissions by up to 35%. However, he highlighted that the ban's advantages extended beyond the environment, stating that EVs are "the next major global sector, and California wants to dominate it." Personally, I agree with his premise, which is why I have solely purchased hybrid and electric vehicles during the last decade.
Ford Motor Company agreed with Newsom and stated it was time to take significant action to address climate change. As a result, the Ford Mach E was prominently displayed in the background of Newsom's news conference. However, the Alliance for Automotive Innovation, which represents Ford and most other manufacturers, claims that mandates and prohibitions cannot be used to build markets.
Not to be outdone, the oil and gas sector did not hold back and slammed Newsom at his proclamations. They attacked Newsom in particular for holding a press conference in front of roughly $200,000 worth of electric automobiles "while telling Californians that their dependable and economical ICE cars and trucks will soon be unwanted in our state." "In terms of pricey EVs, have you seen the Bentley Bentayga plug-in hybrid?
The oil and gas industry appears to have conveniently skipped the part of Newsom's press conference where he clarified that the new electric vehicle law would not prohibit people from owning gas-powered vehicles, but rather aims to end sales of all new gasoline-powered passenger cars and trucks in about 15 years. "You may retain your internal combustion engine automobile," Newsom remarked. "There is still a demand for secondhand autos." That reminds me of Obama saying, "If you like your doctor, you can keep your doctor," and we all know what happened.