Governments have always influenced the way automotive industries designed cars or in some cases, prescribed parts to include as safety features in cars. Last year, governments across the globe met in Glasgow to commit to a COP 26 pledge of replacing fossil-fueled automobiles with electric vehicles by 2040. Many wondered how such a pledge will affect the US automotive industry as a whole.

The ultimate goal is to phase out all cars running on fossil fuel, to balance greenhouse gas emissions toward achieving a net zero effect of CO2 emissions in the Earth’s atmosphere.

Overview of the Historical Impact of US Government Regulations in the Automotive Industry

Historically, as a result of government regulations, the automotive industry had to put up with increased production costs. At the same time they had to follow imposed limitations on how vehicles are built, marketed and sold to consumers to ensure consumer protection and vehicle road safety.

Today, government regulations now include sustainability measures and fuel efficiency legislations to ensure environmental protection. Car manufacturers found in violation of such regulations will be ordered to pay fines and other penalties

The interesting thing however, is that on a global scale and during the COP 26 summit, countries like China, the US, Germany and Japan, did not commit to a pledge that by year 2040, only electric vehicles will be allowed to travel on roads.

About the 26th Conference of the Parties (COP 26)

The COP 26 is a yearly meeting between United Nation member countries. In the meeting held last November 2021 in Glasgow, Scotland, world government and business leaders discussed and agreed on plans of action in preventing the further increase of global warming temperature by bringing down CO2 and greenhouse gas emissions.

The goal is to achieve emission levels that will create a net-zero effect in the planet’s environment, particularly the atmosphere. That way, the current global warming temperature will no longer reach dangerous levels beyond the current 1.5 degrees

However, officials of two of the world’s leading car manufacturers, Japan’s Toyota Motor Corporation and Germany’s Volkswagen did not a affix their signature in committing to the 2040 goals. Also, neither China nor the US signed up to pledge that by year 2040, only electric vehicles will be travelling in their respective roads and highways.

Still, two of the United State major car manufacturers, Ford and General Motors (GM) are onboard with the COP 26 commitments. Moreover, two of the leading car buyers in the US, the states of New York and California also made independent pledges in being one with the goal of phasing out fossil fuel vehicles come year 2040

Some proponents of the US automotive industry believe that the reason why most American car makers did not commit to the pledge is because it will only lead to more cost intensive shifts in technology. Besides, if the US government itself cannot make a commitment, it only means there is no assurance that by year 2040 and thereabouts, there would be enough charging stations and sufficient power grid infrastructures in the country.

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