Ford exec: U.S. must act to hold leadership position on EVs

WASHINGTON—Ford Motor Co.'s Bob Holycross told a House panel March 8 that the U.S. has reached an "inflection point" for electric vehicles and policy makers should support the transition before the country loses a leadership role.

"We can see the environmental need and customer demand for innovative, high-performance electric vehicles, but if we are to be world leaders in this space we must move quickly," said Holycross, vice president of sustainability, environment and safety engineering. "To be clear, if U.S. policies are not efficient and effective in this transition, we risk being outpaced by global competitors like China and Europe."

Holycross, who testified virtually, told members of a subcommittee within the House Energy and Commerce Committee that the Dearborn, Mich., auto maker is "doing its part" to transition its workers, manufacturing plants and supply chains to an EV future.

But it's up to Congress and the Biden administration to consider supportive policies such as purchase incentives and other measures that can accelerate the transition.

The auto maker this month said that it is separating its internal combustion engine and EV businesses in a major reorganization aimed at increasing profit margins. Ford also said it investing $50 billion in electrification and will have the global capacity to produce 2 million EVs annually by 2026.

Ford is electrifying popular vehicles in its portfolio including the top-selling F-150 pickup and Mustang sports car.

Holycross also cited Ford's plan to spend billions and create 11,000 jobs to build EVs and batteries in Tennessee and Kentucky.

"This isn't about a long-term ambition. The inflection is now," Holycross said in an interview with Automotive News before the hearing.

"We are past the tipping point, quite frankly, in terms of where this movement is, and it's so important not just to be able to meet the overwhelming demand that we've seen from our customers and small businesses up and down the retail and commercial market," he said, "but so that we really make sure that this all happens in the U.S. for our competitiveness and security."

Holycross told House law makers the U.S. needs to strengthen its domestic supply chains for batteries and semiconductors and build out EV charging infrastructure to remain competitive globally and encourage EV adoption.

"We've seen the role that China and Europe have played and how fast they've been moving in this space," he said before the hearing. "We want to continue to secure this here—and with urgency—in addition to obviously what it can do to address the impacts of climate change."

Thomas Pyle, president of the Institute for Energy Research, argued that "there is no need for Congress to spend tax dollars on chargers when investors have provided electric vehicle makers with hundreds of billions of capital."

"At some point, these investors should live with their bets on these technologies, rather than being rewarded by taxpayer dollars," he said in his written testimony.

Pyle also warned that an increase in electrification could result in a greater reliance on China, which dominates the battery supply chain and critical mineral processing.

The House Subcommittee on Energy's EV hearing comes as the Biden administration confronts a worsening war in Ukraine amid Russia's deadly invasion.

U.S. gas prices at the pump are soaring as the invasion disrupts the global energy market. President Biden on Tuesday said the U.S. will ban imports of Russian oil, natural gas and coal in response to the ongoing invasion.

"With the global energy crisis and the war on Ukraine right in front of us, why are we holding a hearing on electric vehicles?" ranking member Rep. Fred Upton, R-Mich., said in opening remarks.

"Given where we are right now—with only the richest 1 percent driving electric vehicles—this committee ought to be focused on more pressing issues," Upton continued. "Even Elon Musk, founder of the world's leading EV maker, understands that EVs should not be our main focus right now, and he said over the weekend that the U.S. needs to increase oil and gas production immediately—he's right on."

In a letter sent Monday to the subcommittee's leaders, the Alliance for Automotive Innovation—a trade group that represents Ford and most major auto makers in the U.S.—said auto makers are planning to invest $515 billion globally over the next decade to bring new EVs to market.

The alliance, which does not represent Tesla, said it is committed to working with Congress, the Biden administration and other policy makers on complementary policies to make EVs more affordable for all consumers, expand charging infrastructure and boost investment in the U.S. EV supply chain.

"The nations that lead the development and adoption of innovative vehicle technologies, such as electrification, connectivity and automation, will also shape supply chains, define global standards and potentially reinforce U.S. auto manufacturing and leadership in the international marketplace," the letter reads.

"This is not just about the future of the auto industry in the U.S.—it is about the nation's global competitiveness and economic security."