Dividends and Auto industry urges Biden to support EV strategy

If you read about the auto companies strategies, it includes an electric fleet of vehicles by 2030, in the macro level that is a very good thing to do. The number one reason is as much as everyone enjoys their individual vehicles, the millions that are on the road contribute a great deal to climate change. If they are removed, hopefully the climate changes less.

However, from the macro level to the individual decision to buy is very different. The infrastructure to charge vehicles is coming but it is not here yet. The rules particularly in the cities where there is on street parking have to be worked out, can someone run a cord across the sidewalk to their vehicle? will homes with parking be more expensive because they have access to outlets for the vehicle? One can think of many other concerns, for the auto makers, their concern is to have the government to pay for the infrastructure in the name of the greater good theory.

In an article by David Shepardson of Reuters, the major automakers, parts companies and union (UAW) met not about contract negotiations, but to urge the government to use tax credits and other financial incentives to encourage the average person to buy electric.

The letter noted there are currently 1.5 million Electric Vehicles out of 278 million registered passenger vehicles or at the present 2% of sales are electric. At the moment there are 100,000 public charging places countrywide.

The auto industry association is asking the government to use its ability for fleet purchases to purchase electric and help pay for the infrastructure needed which will drive down costs to the average consumer.

Linking to dividend paying stocks, all large companies need the government to pay for infrastructure which helps them and the public good. The more the industry association can link their industry to the public good, the more the government will and can pay and the more profits can stay with the industry.

There are more questions than answers, till the next time – to raising questions.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s