Auto
Manufacturers
Ford
Accelerates Its Electric-Vehicle Push With $500 Million Stake In Rivian.
According
to the Wall Street Journal, “Ford Motor Co. is taking a $500 million stake in electric-truck startup Rivian Automotive, the latest example of a large auto maker betting on the emergence of battery-powered vehicles. Ford said Wednesday the tie-up would include
plans to co-develop a new plug-in electric model with Rivian, which plans to start selling an all-electric pickup truck in the U.S. late next year. The No. 2 U.S. auto maker by sales said the collaboration with Rivian will be separate from its own $11 billion,
multiyear investment in electric vehicles. Those plans include a battery-powered version of the F-150 pickup, the company’s best seller and biggest moneymaker. Ford declined to say when the jointly developed model with Rivian would hit the market or provide
specifics of that plan. With governments putting stricter limits on tailpipe emissions, auto makers are rushing to develop new hybrid and fully electric vehicles that can help them meet tougher regulations globally.” [Wall Street Journal,
4/24/19
(=)]
Ford
To Invest $500M In Electric Vehicle Startup Rivian. According
to the Washington Post, “Ford is sinking a half-billion dollars into electric vehicle startup Rivian in a deal that has the companies working together on a new generation of Ford vehicles based on Rivian underpinnings. Ford will become a minority partner in
Rivian, which is based outside of Detroit and recently rolled out a new electric pickup truck and an SUV that will go on sale late next year. Ford CEO Jim Hackett says in a statement that the partnership will bring a fresh approach to Ford’s intelligent and
electric vehicles. He says Rivian will benefit from Ford’s manufacturing expertise and resources. Rivian will remain an independent company. But Ford President of Automotive Joe Hinrichs (HIN-ricks) will get a seat on the startup’s seven-member board.” [Washington
Post, 4/24/19
(=)]
Electric
Vehicles
Electric
Vehicles Hit A Speed Bump. According
to the Wall Street Journal, “Investors who bet on the rapid growth of electric vehicles in China are getting a shock. Umicore , UMICY -16.68% a big player in the electric-vehicle supply chain, issued a profit warning Tuesday, sending its stock down 15%. The
Chinese government cut subsidies for electric vehicles by more than expected last month, and Umicore is feeling the knock-on effect. The company pushed back targets for sales and plant investments by 12-18 months. Listed in Belgium, Umicore came to be seen
as a rare non-Asian play on the fast-growing electric-vehicle industry. It makes cathodes, one of the most valuable components of lithium-ion batteries, as well as tailpipe catalysts for conventional cars. Unlike Tesla, it is profitable and doesn’t require
investors to bet on a specific model’s appeal. But its potential to benefit from the electric-vehicle revolution is now looking impaired in the short term and uncertain in the longer term. Lower subsidies in an already weak Chinese car market aren’t the only
problem. Umicore also seems to be struggling to maintain market share against scrappy rivals who are happy to use cheap cobalt from questionable sources, often involving child labor. It warned that ethical sourcing put it at a ‘significant competitive disadvantage.’”
[Wall Street Journal, 4/23/19
(=)]
If
Electric Car Maker Enovate Can Produce An EV With A Solid-State Battery, Everything Changes.
According
to Forbes, “Chinese electric vehicle maker Enovate, which already has an all-electric SUV on the market, says they will bring a new vehicle to market in 2021 that will feature a holy grail of sorts in terms of its power source: a solid-state battery for motive
power. Enovate currently offers the Sky ME-7 all-electric SUV, which uses mainstream battery technology similar to a Tesla and other electric vehicles. Current EV batteries, typically of lithium-ion construction, are sometimes called ‘wet’ batteries since
the energy storing medium, or electrolyte, is a jelly-like substance or a polymer. The new vehicle, called the Enovate ME-S or ME Sport, is a high-performance sedan with a futuristic design that includes cleaving doors (often called ‘suicide doors’), multiple
interior screens, 5G connectivity, biometric analysis tech (hopefully to see if the driver is awake or at least not lost in their phone) and a warning system for pedestrians among other features, some of which sound a bit more sci-fi than production-ready.”
[Forbes, 4/24/19
(=)]
New
York Auto Show Previews Tesla’s Future Competition With More Than 40 Electric Vehicles On Display.
According
to CNBC, “It wouldn’t be much of a stretch to call this year’s New York International Auto Show ‘electrifying,’ not when you consider that more than 40 vehicles using some form of electric power are on display at the Jacob Javits convention center. That includes
not only conventional hybrids such as the Toyota Prius, but a long list of more advanced technologies, including plug-in hybrids and pure battery-electric vehicles. And automakers as diverse as Ford, Hyundai and Daimler AG announced plans to roll out dozens
more of those plug-based models over the next several years. ‘The industry is going through tremendous change, and there’s no better example of that than the number of electrified vehicles now coming to market,’ said Mark Schienberg, head of the Greater New
York Automobile Dealers Association, the trade group that organizes the annual show in New York that runs through Sunday.” [CNBC,
4/23/19
(=)]
state
and local
Activists Warn Rollback Of U.S. Clean Car Standards Will Hurt The Triangle.
According to ABC News Durham, “Environmental activists gathered outside Durham City Hall on Tuesday to acknowledge that time spent driving
traditional motor vehicles contributes to carbon pollution and to explain how commuters appreciate the fuel economy standards set by the federal government. ‘The power that we have is the power of public opinion. And there’s no question that in our state,
in the Triangle region and our city, these clean-car standards are very popular,’ said Mayor Steve Schewel. Schewel touted the scheduled replacement of diesel-powered buses in Durham’s fleet with those that run on electric power as responses to citizen awareness
of the need for clean air. ‘Because they want the clean air that they know they bring, and they want the jobs that they know they bring.’ Schewel stood with a group of environmental activists as they warned about the danger posed by a Trump administration
rollback of existing clean-car standards. They spoke about the potential impact of the proposed rollback on air quality now -- and for future generations. They also said they’re urging Sen. Thom Tillis, R-NC, to oppose the rollback.” [ABC Durham,
4/23/19
(+)]
Wis. GOP Tries To Trump Governor's Charging Station Plan.
According to E&E News, “Assembly Republicans worked Monday to trump Democratic Gov. Tony Evers’ plan to spend $10 million on electric vehicle charging stations in Wisconsin’s state
budget, announcing their own bill to set up the stations. Republicans and Evers have been stealing each other’s ideas for months in a battle to rob the other side of headlines and campaign talking points. Republicans in February co-opted Evers’ middle-class
tax cut proposal with their own bill. The only difference was the GOP wanted to cover the cut with the state surplus and Evers wanted to pay for it by capping tax credits for manufacturers. Evers ultimately vetoed the GOP proposal. Evers, for his part, issued
an executive order in March calling for state agencies to remove the term ‘mental retardation’ from their regulations after he learned Republicans were working on a bill that would accomplish the same goal. Republican state Rep. Adam Neylon on Monday held
a news conference to announce a package of legislation centered on renewable energy. One of the bills calls for creating grants to build charging stations along Wisconsin interstates.” [E&E News,
4/24/19 (=)]
Opinion Pieces
Editorial: Germany’s Dirty Green Cars.
According to the Wall Street Journal Editorial Board, “Germany’s worst industrial scandal in recent memory arrived when auto companies fiddled with emissions tests to make diesel
cars seem greener than they are. Now a new study suggests that electric cars touted as a diesel alternative also aren’t so great for the environment. A study this month by the IFO think tank in Munich found that a popular electric car releases more carbon
dioxide into the atmosphere than a comparable diesel engine. The authors compared CO2 output for a Tesla Model 3 and a Mercedes C220d sedan. They calculated that the diesel Mercedes releases about 141 grams of carbon dioxide per kilometer driven, including
the carbon emitted to drill, refine and transport its fuel. The Tesla? Between 156 and 181 grams. The main Tesla problem—and subject of a long-running debate—concerns the CO2 emitted to manufacture the battery. The IFO report pegs this at between 73 and 98
grams per kilometer, assuming a 10-year battery life at 15,000 kilometers of driving per year. The other problem with electric cars is Germany’s growing reliance on coal for electricity generation. The country’s ruinously expensive energy policy has stimulated
renewable electricity but also reliance on coal plants to keep the lights on when the wind isn’t blowing and the sun isn’t shining.” [Wall Street Journal,
4/23/19 (=)]
Editorial: Electric Vehicles Are Viable, Even Without Subsidies.
According to the Santa Cruz Sentinel Editorial Board, “Californians love electric cars more than folks living in other states. According to the state Air Resources Board, people in
this state bought nearly 31,000 electric vehicles in the first quarter of 2019, a 13 percent increase over the first quarter of 2018. Sales in this state make about half the national sales totals for electric vehicles. EVs and plug-in hybrids make up about
10 percent of all vehicle sales in California. EVs have become status symbols in an environmentally conscious state — especially Teslas, which seem to be on the road to becoming the ride of choice among Silicon Valley techsters. Other manufacturers have also
improved their EVs, and more charging stations are popping up in parking lots and other car-centric stopping places. China, not surprisingly, is rapidly making the changeover to electric vehicles and has been ramping up production of EVs. Beyond status, what
really drives the sale of electric vehicles are rebates. California paid out more than $172 million in 2018 to purchasers of zero-emission vehicles, up from $115 million the year before. Rebates for Tesla buyers alone jumped from $15.7 million in 2017 to $80.8
million in 2018. The increase corresponds to Tesla introducing the model 3 EV, which sells for less than half its pricier cars. With state and federal rebates, California EV buyers can realize a credit up to $15,000.” [Santa Cruz Sentinel,
4/23/19 (+)]
Op-Ed: More Money At The Gas Pump May Be The Price Of Pressuring Iran.
According to an op-ed by Simon Henderson in The Hill, “Good news: Reasonable prices for the gasoline you will buy for the summer driving season are being guaranteed by Saudi Arabia
and other OPEC countries. Huh? Who says? Actually, President Trump says so. He tweeted Monday morning: ‘Saudi Arabia and others in OPEC will more than make up the Oil Flow difference in our now Full Sanctions on Iranian Oil.’ In other news: Oil prices rose.
Put simply, the market apparently did not see the withdrawal of waivers, which have allowed countries such as Turkey, India and China to import Iranian oil without penalty until now, with the same optimism. The president’s tweet had been tee’d up the previous
evening by Josh Rogin in the Washington Post, who reported the State Department was set to announce that all countries will have to completely end their imports of Iranian oil or be subject to U.S. sanctions. Ambiguously, the Post used the headline ‘…The United
States will try to force Iranian oil exports to zero,’ while Rogin’s column quoted an unnamed senior State Department official as saying ‘zero Iranian imports,’ probably meaning ‘zero imports of Iranian oil’ — a subtle but important difference. While many
Americans will only concern themselves with the prices at the pump, these policy details are important.” [The Hill,
4/23/19 (=)]
Chad Ellwood
Research Associate
202.448.2877 ext. 119