The automotive industry has reached a new pinnacle in federal lobbying expenditures, amounting to a staggering £85.8 million as sales of electric vehicles continue to surge. This represents a significant increase from the £23.1 million spent in the first quarter of 2024, indicating a continued heightened level of political engagement within the industry.
Following the introduction of President Joe Biden’s Inflation Reduction Act, aimed at reducing U.S. greenhouse gas emissions by 40% before 2030, the automotive industry has been actively advocating for its interests in Washington. This landmark legislation will inject £369 billion into energy security and climate change programs, marking the largest-ever investment in the nation’s history to reduce carbon emissions. Additionally, the law provides attractive tax credits to individuals purchasing both new and used electric vehicles.
With evolving regulations and the Biden administration’s efforts to expand electric vehicle production, automakers have been compelled to invest in electric vehicle infrastructure while exerting their influence on policies that dictate emission reduction targets.
In line with a broader trend of increased lobbying across various sectors, the automotive industry has consistently escalated its spending on lobbying efforts since 2020. Major contributors to this intensified lobbying activity include automakers and trade associations representing car dealerships.
Leading automaker General Motors emerged as the top spender on lobbying for automotive issues, allocating a substantial £14.17 million to influence federal policy in 2023. Notably, nearly 70% of the company’s lobbying disclosures revolved around issues pertinent to electric vehicles. Meanwhile, Toyota, the second-largest seller of automobiles in the U.S., also made significant strides in lobbying with approximately £6.3 million being spent on lobbying initiatives last year.
The implementation of the Inflation Reduction Act has prompted substantial investment from the private sector, amounting to over £70 billion in the electric vehicle supply chain since the law’s enactment. Moreover, finalized emissions standards by the Environmental Protection Agency have specified pollution limits for model years 2027 and beyond, with automakers being compelled to adhere to stringent requirements.
Despite the Biden administration’s resolute stance on emissions and electric vehicles, the continued influence of former President Donald Trump on environmental policies, as reported by the Washington Post, remains a point of concern. Toyota Motor Corporation CEO Aiko Toyoda expressed scepticism regarding the widespread adoption of electric vehicles, underscoring the company’s commitment to offering a range of auto options beyond electric vehicles.
As electric vehicles continue to carve out a larger share of the automobile market, it is apparent that automotive giants are seizing the opportunity to stay ahead of the curve. General Motors has partnered with LG to establish Ultimum Cells, a joint venture supporting three battery factories across the U.S., while Toyota has committed £13.9 billion to its first American battery factory in North Carolina.
The swift rise of electric vehicles, representing 7.6% of all car sales in 2023, highlights the urgency for automakers to adapt to changing consumer preferences. Moreover, first-quarter sales in 2024 reflect a consistent demand trajectory, with electric vehicles making up 7.3% of all car sales.
This report was originally published by Open Secrets. Becoming a member of the Watchdog Club community at the Tucson Sentinel through a paid membership contribution helps to sustain and grow independent news reporting. Contributing to this cause allows the publication to continue its commitment to delivering important news that supports the thriving community.