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Car mandate will be disastrous for consumers

We read with interest the Marshall Independent’s story (“MPCA moves ahead with electric car incentives,” Sept. 14, 2020) and had to question whether the Independent was covering the same MPCA action that our customers and fellow auto dealers are working to stop. At a minimum, the Independent’s story requires more context than was given.

First of all, Gov. Walz’s proposed California Car Mandate does not feature “incentives” for anyone, but rather mandates on Minnesota auto dealers that will be disastrous for consumers as well as local economies. If implemented, the Low-Emission Vehicle (LEV) and Zero-Emission Vehicle (ZEV) mandates require Minnesota vehicles to meet standards set by the California Air Resource Board (CARB), an unelected body in a state 2,000 miles away.

The mandate will require auto dealers to stock a predetermined number of electric vehicles on our lots, regardless of the demand for them. And by 2035, California has decided to ban the sale of new gas-powered vehicles. If we adopt California’s rules, this ban will apply to us, too.

Costs will also increase as a result of this mandate; even the MPCA concedes this. It could be $800 (MPCA figure) or over $2,000 per vehicle. This disadvantages businesses in greater Minnesota, especially in border communities. Nationally, about 5% of vehicles purchased in a state are registered to customers from outside that state. In Minnesota however, that number is almost doubled.

In Marshall, we sell more than 20% of our vehicles to out-of-state customers. After the Walz mandate, that number would likely drop to near zero.

Further, EVs are a good option for many customers, but at present they are too expensive for most families, on average costing $12,000 more than the comparable fuel-powered version. They are also notoriously incompatible with many Minnesotans’ lifestyles. Consider that unlike Californians, Minnesotans consistently purchase larger vehicles. This could be so we can haul materials for work or boats and ATVs for pleasure. There are also zero DC fast-charging stations located in the southwestern part of the state, making it impossible to quickly fuel-up on the go when driving long distances.

These reasons (cost and utility) are why EVs make up only about 1.5% of total new car sales in Minnesota. Mandating dealers to carry more EV models does not make them more suitable for our customers, nor does it reduce their cost. It will only create higher prices for all vehicles and reduce availability of popular trucks and SUVs.

And it bears pointing out, Gov.Walz is bypassing the Minnesota Legislature to implement this mandate through rule making. This alone should cause concern as it is a significant overreach of executive authority that greatly reduces your voice in the Legislature. The people of Minnesota should have the opportunity to write their own laws and not abdicate regulatory authority to bureaucrats in another state.

Here in Minnesota we care about the environment, we care about our main street businesses and we craft solutions that work for both. We’ve done it for decades. But, there is nothing “Minnesotan” about this mandate whatsoever. There are no “incentives” to be found. It is a mandate written for, and implemented by, California bureaucrats in order to help solve California air quality issues that Minnesota simply doesn’t have. And there is little doubt it will cause Marshall more harm than good.

If you agree, please visit https://driveawaycacars.org/ and sign our petition to let Gov. Walz hear your voice.

— Chet Lockwood is owner

of Lockwood Motors and Kyle McKinzie is general manager of Kruse Motors

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