White House
Trump Unsettles The Auto Sector.
According to Axios, “Since taking office and replacing his Rolls-Royce with an armored Cadillac called ‘the Beast,’ Trump seems to have spent more time thinking about cars than any
other industrial sector, per aides past and present. He’s also bred uncertainty, including over whether he’ll slap tariffs on imported cars. Why it matters: Trump wants to restore American auto manufacturing to what he considers its mid-20th-century greatness,
according to aides. But his ideas for saving the industry are creating angst for its top execs. Over many months, I’ve interviewed sources who’ve discussed the auto industry with the president. And my colleague Joann Muller, who is based in Detroit and has
covered the auto industry for 20 years, has been talking to industry executives about Trump’s policies. As with most relationships, it’s complicated: Automakers hated being used as political punching bags during the 2016 campaign — Trump berated Ford on Twitter,
for example, about building cars in Mexico and often got his facts wrong. After the election, they were generally pleased by Trump’s attention to their issues, but not always with his actions. Corporate tax reform was a welcome boost, but then his steel and
aluminum tariffs wiped out much of their tax savings and drove up car prices. Economists predict a sales downturn this year.” [Axios,
3/18/19 (=)]
Auto Manufacturers
Toyota's Altona Site To Become Hydrogen Production And Refuelling Centre.
According to The Guardian, “Toyota and the Australian Renewable Energy Agency (Arena) will kick in $7.4m to transform part of the carmaker’s decommissioned car manufacturing site
in Altona into a commercial-grade hydrogen production and refuelling site. The new centre will demonstrate the processes required to produce hydrogen from renewable sources through electrolysis, and then the subsequent compression and storage. Arena says the
centre, once operational, will produce at least 60kg of renewable hydrogen each day, with onsite solar PV and battery storage providing electricity to support the energy requirements of the project. The president and chief executive of Toyota Australia, Matt
Callachor, says the new centre on the Altona site will contribute to the carmaker meeting its target of zero CO2 emissions from sites and vehicles by 2050. ‘Hydrogen has the potential to play a pivotal role in the future because it can be used to store and
transport energy from wind, solar and other renewable sources to power many things, including vehicles like the Toyota Mirai fuel cell electric vehicle,’ Callachor said.” [The Guardian,
3/19/19 (=)]
VW Threatens To Exit Important Automaker Lobbying Group Over Electric Vehicle Policies.
According to Electrek, “Volkswagen is amongst the legacy automakers now most invested in electric vehicles and they now threaten to exit an important automaker lobbying group over
their policies regarding electric vehicles. Automakers have promoted policies to slow down the adoption of electric vehicles through lobbying groups for years. Most recently, automakers associations have pushed against efforts to increase average fuel economy,
which would have forced EVs to be built in higher volume. Interestingly, several automakers were claiming to be ‘all-in on electric cars’ while indirectly supporting those lobbying efforts. Now, Volkswagen appears to be recognizing this issue and is pressuring
the Association of the German Automotive Industry (VDA), a powerful lobbying group in Germany, to promote electric vehicles.” [Electrek,
3/18/19 (=)]
Electric Vehicles
CARB Chief Looks Beyond Fight Over Vehicle Rules To Push EV, GHG Agenda.
According to Inside EPA, “California’s top air regulator is looking beyond the state’s current fight with the Trump administration over vehicle greenhouse gas and fuel economy standards
to advance the state’s ambitious climate change agenda, primarily the acceleration of multiple programs to transition the transportation sector to all-electric vehicles (EVs). ‘In order to make this transition happen, we just have to get over the interval
of the next few years, and keep our eyes fixed on the horizon of where it is that we’re trying to drive to,’ said California Air Resources Board (CARB) Chairwoman Mary Nichols, during a March 14 EV forum hosted by Veloz, a non-profit group of utilities, auto
companies, charging firms and other entities that support transportation electrification. ‘If we do that, I think we have a very good chance of beating the odds. We may still see some rising seas, but we will also at the same time be enabling our country to
actually be what it can be in terms of the model that we can provide for the rest of the world,’ she said during a keynote speech at the event.” [Inside EPA,
3/18/19 (=)]
Inside The Utility Sector's Quiet Fight To Save EVs.
According to E&E News, “Utilities began dispatching lobbyists across Capitol Hill last year to preserve the federal electric vehicle tax credit and build momentum for other transportation
electrification measures, even as they largely avoided political fights over those issues. Those efforts would run head-on with conservatives who have the ear of President Trump: The president’s proposed budget seeks to eliminate the tax credit and gut funding
for two offices that lead clean transportation research. Such are the details emerging from lobbying disclosures filed by nearly a dozen of the nation’s largest investor-owned utilities, as well as the Edison Electric Institute, an industry association. The
documents suggest the electric sector is becoming an increasingly active — if still conflict-averse — player in an ongoing contest between pro-EV industries and oil and gas interests, which have pushed model legislation condemning subsidies and lobbied Congress
to end the $7,500 tax credit that drivers can claim when they buy a plug-in electric (Climatewire, March 4). Utilities have made their case publicly, too, in letters to Congress asking lawmakers to eliminate the 200,000-car cap on manufacturers’ EV sales,
beyond which the credit phases out.” [E&E News,
3/19/19 (=)]
Tesla Suffers Worst Post-Party Rout After Model Y Debut.
According to E&E News, “Tesla Inc. shares plunged 5 percent Friday, the worst rout for the stock following one of Chief Executive Officer Elon Musk’s parties to hype a new product
or service. The unveiling of the Model Y electric crossover was a more subdued affair than some of Musk’s past performances, and Tesla’s customer-deposit strategy rekindled concerns about the company’s cash position. Tesla immediately began charging $2,500
to order a Model Y, which won’t be available for at least a year and a half. When Musk last debuted a vehicle for the mass market — the Model 3 sedan — Tesla took $1,000 reservations from consumers. Here’s how Tesla’s share reaction Friday compares with past
moves a day after Musk, 47, has put on a show for customers.” [E&E News,
3/19/19 (=)]
The Future For Electric Vehicles — A Few Analysts Weigh In.
According to Clean Technica, “What’s in store for the future of the auto industry? Camila Domonoske at NPR recently spoke with a number of industry experts to get their feedback.
It turns out that the auto industry could (soon) undergo a significant paradigm shift — transitioning from gas-powered cars to EVs. According to Domonoske, ‘Going electric is not just an eco-friendly goal, an ambition that would help fight climate change.
It’s a business reality, according to industry analysts.’
‘Electrification, you cannot stop it anymore — it’s coming,’ says Elmer Kades, a managing director with the consulting firm AlixPartners. ‘We have fantastic growth rates, between 50 and
60 percent on a global level.’
After all, according to Tom Murphy, a managing editor at Wards Auto which ranks the world’s best engines, electric cars are just ‘fun to drive.’ Extolling the electric vehicle’s ninja-like
performance and instant acceleration, Murphy says, ’They’re enjoyable, they’re quiet … and there’s loads of torque.’” [Clean Technica,
3/18/19 (=)]
How Much Oil Is Displaced By Electric Vehicles? Not Much, So Far.
According to Bloomberg, “Electric vehicles are taking ever-bigger bites out of global oil demand, but they haven’t yet caught up with the growing size of the pie. Gasoline and diesel
displacement by electric vehicles will grow by 96,000 barrels a day this year, BloombergNEF said in a report Tuesday. That brings the lost cumulative demand since 2011 at 352,000 barrels a day, about as much as total consumption by some countries, such as
Peru or Portugal. By comparison, total global oil demand growth over the same period rose 12 million barrels a day to 100.6 million, according to the International Energy Agency.
Electric vehicles have displaced about 3% of oil consumption growth since 2011.
Still, the volume of oil displaced this year is nearly 14 times higher than 2014, according BNEF. And about 2.7 million electric vehicles will be sold in 2019, increasing the number of
such cars on the road by more than 50 percent, BNEF analysts David Doherty and Daisy Maugouber wrote in the report.” [Bloomberg,
3/19/19 (=)]
Chad Ellwood
Research Associate
202.448.2877 ext. 119