WASHINGTON — Representatives from the National Automobile Dealers Association, General Motors and the UAW testified Wednesday before a U.S. House panel on the transition to electric vehicles and potential impacts for rural America.
The hearing was held by the House Agriculture Committee amid major investments by the auto industry as well as the public and private sector to spur EV development and adoption in the U.S.
“We are witnessing a point of major research, investment and adoption of electric vehicles across the country and the world, driven in large part in an effort to mitigate the impacts of climate change,” Rep. David Scott, a Georgia Democrat who is chairman of the committee, said in his opening statement.
“As with so many other technological advancements like electrification, broadband or telephone service, I want to see what can be done to make sure that rural America is not left behind,” he added.
Ranking member Glenn Thompson Jr. said he’s encouraged by the “substantial investments” by the private sector but expressed concern over the costs associated with building new infrastructure and the potential disruptions to rural communities.
“Congress should not be picking winners and losers. Drivers in the marketplace must decide what technology meets their transportation needs, especially rural residents for whom vehicles and private transportation are an essential service,” Thompson, R-Pa., said in his opening statement. “The ability to choose ensures vehicles remain a productive tool and not a technological burden to work around.”
Matthew Laughridge, a Hyundai and Genesis dealer based in Cartersville, Ga., who testified on behalf of NADA, stressed the importance of the franchised dealer model and said dealers are “all-in” on selling and servicing EVs as well as educating customers.
Laughridge, president of Terry Reid Automotive Group, said his two dealerships have committed to spending $160,000 in upgrades to prepare for future EV sales. For rural Americans, he expects the situation to improve as more electric light-duty pickups enter the market.
“Dealers are also committed to working with local utilities to help ensure that public charging is rolled out in an effective manner,” he told the committee.
Laughridge also urged Congress to preserve states’ traditional roles in licensing and regulating the distribution, sale and service of vehicles, including EVs, and to reject any attempts to preempt state dealer franchise laws.
“An EV is a still a motor vehicle, and dealers know how to sell and service the vehicles their customers want,” he told the committee. “State vehicle franchise laws are key to ensuring price competition and market success for EVs.”
David Strickland, GM’s vice president of global regulatory affairs, spoke of the Detroit automaker’s commitment to electrification, citing its plans to invest $35 billion in electric and autonomous vehicles and launching more than 20 EVs in North America by 2025.
“We are increasing range and decreasing the cost of EVs to make them more affordable and accessible,” Strickland told the committee.
GM also is investing nearly $750 million in charging infrastructure and is working with its dealerships in the U.S. and Canada to establish a network of 40,000 EV chargers through 2025. The charging stations will be available to all EV customers — not just GM vehicle owners, he said.
Strickland said several key policies are needed, however, to support private-sector efforts in electrification, including more investment in EV infrastructure and investment tax credits to encourage domestic manufacturing of batteries and other critical EV components.
The automaker also is urging Congress to support consumer incentives for the purchase of new and used EVs, and to lift the cap on the current $7,500 tax credit, which phases out after an automaker sells 200,000 EVs.
Josh Nassar, legislative director for the UAW, stressed the importance of ensuring an EV transition that benefits American union workers.
Nassar spoke of the importance of promoting policies that support domestic EV production and union jobs, citing a controversial provision in the now-stalled Build Back Better Act that would expand the current EV tax credit and provide buyers with a $4,500 additional incentive for union-made EVs.
“We are at a pivotal crossroads as automakers transition many of their fleets from gas- and diesel-powered vehicles to electric ones,” Nassar said. “The shift to EVs cannot come at the expense of good wages and benefits, and it is critical that we do not leave workers behind as the industry transitions to electrification.”