Investor Kevin O’Leary voices concerns over the potential economic impacts of new stringent emission standards for diesel-operated tractor-trailers on small businesses. Their operational costs may significantly increase, affecting their growth, particularly for those in their early stages.
Although understanding the vicious industry dynamics, O’Leary urges regulators to reconsider the implementation pace of these emission norms. A sudden shift could trigger financial stress, leading to potential layoffs and closures.
O’Leary is not against the emission standards as a whole. He acknowledges the importance of environmental preservation but advocates for a phased approach. This considers small businesses’ financial capabilities, ensuring their survival and a more sustainable future.
The investor expresses that the timeline for these new emissions regulations is impractical given the current technology. They depend on non-existent technology, setting the industry up for potential failure.
O’Leary’s concerns over new emission norms
He emphasizes the substantial financial impact of adhering to such stringent regulations and the need for a balanced approach to innovation and expectations.
As for the newly introduced “performance-based and technology-agnostic” emission laws by the Environmental Protection Agency (EPA), O’Leary agrees in principle. However, he contests the proposed mandate requiring 25% of long-haul tractors made in 2032 to be electric. He says the current electric vehicle technology for heavy-duty trucks only achieves a maximum range of 200 miles.
O’Leary’s opinion is also echoed by other industry leaders, including Chris Spear, President of the American Trucking Association (ATA). They fear the increase in truck costs might lead to the failure of smaller firms.
However, the emissions directive has found support from many federal legislators. They view it as a pro-environment and public health measure. This directive aligns with the broader environmental goals stated by President Joe Biden, as per Senator Tom Carper.
