U.S. States Gear Up for 2035 Phasing Out of Gas Cars
Several states in the U.S., including California, Maryland, Massachusetts, New Jersey, New York, Oregon, Washington, and Rhode Island, plan to ban the sale of new gas-powered cars by 2035. This initiative, called the Advanced Clean Cars II legislation, aims to promote zero-emission vehicles. While current gas-powered cars won’t be forced off the roads, and used gas vehicles can still be sold, this move is a significant step beyond the federal government’s recent legislation. The Biden administration is aiming to reduce tailpipe emissions by about 50% between 2026 and 2032, with a target of a significant percentage of new vehicles being EVs or plug-in hybrids by 2032.
The shift isn’t happening uniformly across the U.S. The West Coast, especially California, is leading in EV adoption, while areas like Detroit lag behind. However, major automakers like General Motors are gearing up for a complete switch to electric vehicles by 2035. Interestingly, hybrids are selling faster than both EVs and gas cars, as they offer a blend of a traditional engine and an electric motor. This trend reflects in the latest Consumer Reports’ top car rankings, where hybrids took the lead. This shift to electric and hybrid vehicles indicates a significant transformation in the auto industry, aligning with environmental goals and changing consumer preferences.
WHY IS THIS IMPORTANT?
With the upcoming ban on new gas-powered vehicle sales in several states, there's a clear push toward electric and hybrid vehicles. This means companies in the transportation and logistics sector need to start planning to adapt their fleets to comply with these changes. Keeping up with changing regulations is vital to ensure compliance and avoid potential fines or disruptions in operations, especially if your business operates across multiple states with varying laws.
🔥 OUR HOT TAKE?
The move towards banning gas-powered vehicles and the rise of electric and hybrid cars is not just an environmental statement, it's a major market signal. For those in transportation and logistics, this is the future knocking at the door. Embracing this change early could position a company as a forward-thinking leader, not just in eco-friendliness but in innovation and market adaptation. This is less about following a trend and more about strategically aligning with the inevitable direction of the automotive and energy industries.
Oil prices fluctuated within a tight range on Friday, as investors weighed mixed signals from the world's top oil consumers, China and the U.S. Brent crude slipped 13 cents to $83.75 per barrel, while West Texas Intermediate (WTI) fell 4 cents to $79.22.