Vermont falls short on EV Sales as dealers push back against climate rules

[MichMan]

Someone is going to have to eat the $20,000 per vehicle fine. Will it be passed along to the consumer?

Or does the state expect that the dealers/manufacturers will have to take a substantial loss on every EV by slashing the sticker price well below the cost of manufacturing ?

To meet goals in Vermont’s Global Warming Solutions Act, the Agency of Natural Resources set standards for the number of electric vehicles that should be on the road by 2035.

“We’re showing exponential growth, but we’re not showing the type of growth as required by law. The law requires 35%, we’re only at 12%” Cota adds.

Some dealerships and distributors are asking the governor to repeal the rules, or for the legislature to pass laws to delay or get rid of them.

If the manufacturers and dealers don’t meet the quota, then they’ll be required to pay fees which are $20,000 per car.

https://www.msn.com/en-us/autos/news/vermont-falls-short-on-ev-sales-as-dealers-push-back-against-climate-rules/ar-AA1DzSig?ocid=msedgntp&pc=LCTS&cvid=ab9ffdedc69942b9a810200b541da7ed&ei=18

[littlemissmartypants]

1. Any idea what the profit margins are for the dealers and manufacturers? ❤️

[MichMan]

2. Depends on the vehicle, but not very high

On average it is 6% for manufacturers

https://www.bain.com/insights/automotive-profitability-how-oem-and-supplier-margins-are-faring-interactive/#:~:text=OEMs%E2%80%99%20average%20profit%20margin%20fell%20to%206.2%25%20in,customer%20demand%20a

3.9 % for dealers

https://www.jdpower.com/cars/shopping-guides/how-much-does-a-new-car-dealer-make-on-a-deal

Apple on the other hand makes around 22%

https://www.macrotrends.net/stocks/charts/AAPL/apple/net-profit-margin

[littlemissmartypants]

3. Interesting. Thanks for your reply, MM. ❤️