Toyota Motor Corp.’s chief operating officer for North America, Jack Hollis, criticized U.S. policies that are driving the rapid adoption of electric vehicles, calling them “de facto mandates” that are out of sync with consumer demand, Bloomberg reports.
Hollis noted that government support for electric vehicles has been a hot topic during the U.S. presidential election process, but argued that sales of pure electric vehicles should grow organically, not by limiting sales of gasoline-powered vehicles. “The whole EV ecosystem is ahead of the consumer and not aligned with consumer demand.” Bloomberg said Hollis was referring to the U.S. Environmental Protection Agency and California’s tailpipe emissions regulations.
In March, the EPA set strict emissions limits, forcing automakers to accelerate sales of all-electric and plug-in hybrid models over the next few years and limit carbon dioxide emissions to 85 grams per mile by 2032. This policy of the current U.S. President Joe Biden’s administration has been a frequent target of President-elect Donald Trump’s attacks in the run-up to the Nov. 5 election.
California, the largest auto market in the U.S., has more stringent regulations aimed at phasing out all new fuel-efficient vehicles by 2035, and many states have adopted them.Hollis said the policies create a cost burden for consumers because electric vehicles tend to be more expensive than gasoline-powered cars.
However, Hollis declined to speculate on whether Toyota would support measures the Trump administration might take to block California’s zero-emission vehicle regulations, “I hope it doesn’t come to that.”
In addition to the two all-electric models currently on sale in the U.S. market, Toyota plans to launch two U.S.-made electric vehicles in 2026, and Hollis revealed that a new plant at the company’s North Carolina facility is looking at adjusting the share of production for all-electric vehicles versus batteries for hybrids. The plant, which is expected to open next year, has 10 lines for pure or plug-in electric vehicle batteries and four lines for hybrid batteries.