Clean
Car Standards
Audi
Exec Brushes Off Trump's Rollback. According
to E&E News, “An Audi executive today downplayed the impact of President Trump’s rollback of clean car standards. ‘Regardless of what happens with the rollback or not, we at Audi and Volkswagen are going to continue to improve our fuel economy,’ said Spencer
Reeder, director of government affairs with Audi of America. ‘Audi, which is part of the Volkswagen Group, has been very explicit about our support for the Paris Agreement on climate change. We are committed to year-over-year reductions in CO2 emissions from
our vehicle fleets,’ Reeder said at a transportation and infrastructure summit in Washington, D.C., sponsored by The Atlantic. ‘And that really then necessitates a continuing improvement in fleet fuel economy,’ he added. ‘So for us, it’s really not a question
of any type of regulatory framework. We’re doing this with our fleet.’ Reeder’s comments were not entirely surprising, given that Volkswagen was one of four automakers to reach a voluntary agreement with California air regulators this summer to improve fuel
economy. They nonetheless marked some of Audi’s strongest comments against the rollback to date, and they spoke to the sharp divisions in the auto industry concerning one of Trump’s most consequential deregulatory proposals for climate change and greenhouse
gas emissions. In addition to dialing back fuel economy standards, the Trump administration has proposed stripping California of its legal authority to set tougher-than-federal tailpipe pollution rules.” [E&E News,
12/4/19
(=)]
Utilities
Defend Calif. In Legal Fight With Trump Admin. According
to E&E News, “Some of the nation’s largest privately owned utilities sided with California yesterday in a legal battle with the Trump administration over the state’s ability to set tailpipe emissions standards. The companies said in their motion that California’s
greenhouse gas and zero-emissions vehicle (ZEV) standards ‘directly incentivize’ investment in electric car infrastructure. Rescinding the state’s authority that underpins those programs could harm utilities and ‘the millions of customers they serve,’ they
argued. The companies, which include Calpine Corp., Consolidated Edison Inc., National Grid USA and New York Power Authority, told the U.S. District Court for the District of Columbia that their efforts to support zero-emissions vehicle infrastructure are
supported by California’s ability to set stronger car standards than the federal government. EPA is threatening to rescind that authority, granted by a waiver to California under the Clean Air Act. ‘To date, California’s and the Section 177 States’ ability
to continue enforcing their GHG and ZEV standards — regardless of changes in political leadership at the federal level — has provided the long-term certainty needed for the Power Companies to incorporate electrification of the transportation sector as a critical
component of their business models and investment strategies,’ the brief said. It was filed as part of a lawsuit brought by states, air officials and environmentalists against the National Highway Traffic Safety Administration, which is invoking preemption
rules from the Energy Policy and Conservation Act to support EPA’s move to revoke California’s waiver.” [E&E News,
12/5/19
(+)]
Amid
Split On Vehicle GHG Rules, Auto Trade Groups Weigh Merger. According
to Inside EPA, “Amid public splits within the auto manufacturing industry over the Trump administration’s aggressive rollback of vehicle greenhouse gas standards, the sector’s two main trade associations are weighing a merger that could tie automakers more
tightly together in their lobbying activities on emissions rules and other policy issues. ‘The Auto Alliance and Global Automakers are exploring the potential for uniting the associations in pursuit of the next generation of mobility while continuing to provide
consumers with safer, more energy-efficient vehicles,’ the Alliance of Automobile Manufacturers says in a statement provided to Inside EPA. The idea is driven by interest in ‘robust public policy and stronger partnerships with policymakers and stakeholders’
needed to achieve ‘the promise of innovative new vehicles,’ the statement adds. While the groups ‘are not ready to make announcements, we continue to make good progress towards our shared goals.’ Should the merger move forward, one industry source says it
would solidify ‘on-again, off-again talk’ of the two groups coming together, ever since Mitch Bainwol, the alliance’s former president, moved to Ford Motor Co. early this year. Such a merger would also come as the auto sector is facing an array of challenges,
including trade disputes, splits on vehicle GHG and fuel economy rules, and fast-paced technological change on everything from vehicle electrification to autonomous vehicles that could upend current auto markets.” [Inside EPA,
12/4/19
(=)]
Electric
Vehicles
A
Bumpy Road For Electric Vehicles In China. According
to the Wall Street Journal, “Beijing wants lots of electric vehicles, but no longer wants to pay for them. Car makers risk having to foot the bill instead. Electric vehicle sales in China—the world’s largest auto market—fell off a cliff after June, when the
government slashed purchase subsidies. From July through October, sales of new-energy cars, which include plug-in hybrids, were 28% lower than the year before. Many buyers probably bought EVs in advance of the subsidy cut, amplifying the current hangover.
Still, the big drop suggests demand for the new technology isn’t strong unless the government is picking up a big part of the tab. Without subsidies, EVs are still priced above conventional cars with similar specifications. Luxury EVs may have buyers in the
country’s most affluent cities, such as Shanghai and Beijing, partly because they are exempt from the license-plate rationing there. Yet the restrictions on traditional engine cars are starting to relax as authorities in China try to arrest the slump in auto
sales. Shenzhen and Guangzhou increased the license-plate quota by up to a half in June, and other cities may follow suit. Taxi or ride-hailing companies and government-related fleets, which may be less sensitive to subsidy cuts, could make up a big part of
the remaining demand. There are no official statistics, but some car makers said those groups accounted for around 70% of their EV sales, according to Bernstein analyst Robin Zhu. The new technology still has a long way to go to attract individual buyers.”
[Wall Street Journal, 12/5/19
(=)]
Automakers
Are Cutting Jobs To Invest In Electric Cars: Report. According
to Jalopnik, “Automakers are cutting costs (and jobs) to invest in electric cars, the Trump administration continues its fight with California over emissions regulations, Tesla boss Elon Musk is in court over a dumb Twitter comment, and FCA’s getting sued
by seemingly everyone. All of this and more in The Morning Shift for Wednesday, Dec. 4, 2019. ‘Carmakers Shed 80,000 Jobs as Electric Shift Upends Industry,’ writes Bloomberg in a new story about the massive restructuring happening in the automotive industry.
It’s just one of many recent stories covering how a shift towards electrification is putting strain on automakers and their employees. From the story: All told, carmakers are eliminating more than 80,000 jobs during the coming years, according to data compiled
by Bloomberg News. Although the cuts are concentrated in Germany, the U.S. and the U.K., faster-growing economies haven’t been immune and are seeing automakers scale back operations there. The German companies joined General Motors Co., Ford Motor Co. and
Nissan Motor Co. in massive retrenchments put in motion over the past year. The industry is sputtering as trade tensions and tariffs raise costs and stifle investment, and as manufacturers reassess their workforce in an era of electrification, autonomous driving
and ride-on-demand services.” [Jalopnik, 12/4/19
(-)]
Electric
Vehicles Pose A Major Threat To Autoworkers' Jobs. According
to CNN, “Electric vehicles may be the future for the auto industry. And if they are, that may spell the end of many traditional auto jobs. The problem for the workers is clear: The electric motors that will power those new vehicles have far fewer moving parts
than traditional internal combustion engines and the transmissions that go with them. Building a traditional powertrain is the most labor-intensive part of building a car. Building an electric car requires about 30% less labor than building a traditional gasoline
powered car with its engine, fuel system, transmission and other complex parts, according to estimates from Ford (F) and other industry experts. ‘The internal combustion engine and transmission are vital parts of automotive manufacturing,’ said Brett Smith,
director of research at the Center for Automotive Research, a Michigan think tank. ‘They are ones that are clearly at risk right now. That has everyone concerned.’ The traditional gasoline engine has carefully engineered pistons and fuel-injection systems
that differentiate one vehicle’s performance from another. It also also needs a complex transmission to transfer power to the wheels with a series of gears. An electric motor needs none of that, and works with a fixed, single-gear gearbox that powers the wheels.
Engines power a lot of jobs So far, the traditional automakers are making so few electric vehicles that there has been little impact on jobs. While GM closed three plants this year, those cost cuts were designed to free up money for research and development
on new cars.” [CNN, 12/4/19
(-)]
California
Cuts Electric-Car Rebates, Drops Luxury Models. According
to the Associated Press, “California’s rebate program to entice more drivers to purchase electric vehicles has gotten less generous, especially for residents looking to buy luxury models. The San Francisco Chronicle reports that effective Tuesday, regulators
have stopped offering rebates for buyers of electric cars or plug-in hybrid vehicles that cost more than $60,000. The state Air Resources Board, which regulates the program, also reduced the standard rebate by $500 per vehicle, from $2,500 to $2,000 for all-electric
cars. In addition it eliminated rebates for plug-in hybrid cars with an electric-battery range of less than 35 miles. Agency officials said the changes will ensure that more people will receive rebates, particularly those with low incomes. Some advocates for
clean cars have criticized the move, saying reducing rebates could deter buyers at a crucial time, as electric car sales spike following years of sluggish growth. Electric cars are typically more expensive than comparable gas-powered models. The state rebates,
combined with a federal tax break, can cut thousands of dollars off the sticker price. Melanie Turner, a spokeswoman for the Air Resources Board, told the newspaper that the new rules put an emphasis on rebates for disadvantaged communities, including areas
with higher pollution and lower incomes. Under the rules, low-income buyers will still be eligible for higher rebates, which are unchanged: $4,500 for all-electric cars and $3,500 for hybrids that run on a combination of gas and plug-in battery.” [Associated
Press, 12/4/19
(=)]
The
Stakes Of The House Energy Tax Bill. According
to Axios, “A new note from the Rhodium Group helps explain why environmental groups and renewables trade associations are throwing their weight behind House Democrats’ legislation to extend a suite of tax incentives. The big picture: Compared to current policy,
U.S. emissions would be 37 million to 99 million tons lower in 2030 if the wide-ranging draft bill unveiled recently were enacted, the research firm projects. ‘That’s 16 to 19% below 2005 levels compared with a 15-17% reduction under current policy,’ they
note. That’s still off track for meeting the Obama-era Paris Agreement pledge to reduce national emissions by 26%-28% by 2025. By the numbers: Here are a couple key findings from the note by Rhodium, which conducts foundation-funded work on energy tax policy...
Installations of non-hydro renewable generating capacity, largely wind and solar, would be higher in 2025, and then the difference compared to the no-extension scenario widens a lot. ‘In the latter half of the 2020s, the [legislation] can catalyze a surge
in cumulative capacity additions to 354-491 [gigawatts] in 2030, an increase of 15-59 GW compared to 339-432 GW under current policy,’ they note. On electric vehicles, expanded credits mean that up to 5.7 million more EVs would be sold between now and 2030.”
[Axios, 12/4/19
(=)]
Lucid
Motors Auto Plant Expected To Create 4K Ariz. Jobs. According
to Associated Press, “Republican Arizona Gov. Doug Ducey has welcomed a new electric auto plant expected to create more than 4,000 jobs in Casa Grande over the next decade, officials said. Ducey, local politicians and state economic development officials attended
the Lucid Motors groundbreaking ceremony Monday at the site north of Interstate 8, officials said. ‘I really was proud of winning the decision that they were coming here,’ Ducey said. ‘So much of it was up to Lucid to raise the capital to actually close the
deal and be able to begin construction.’ Lucid Motors started construction of its $300 million electric car manufacturing facility scheduled for completion in late 2020, company officials said. The Air luxury sedan is designed to have a range of more than
400 miles (644 kilometers) and would be able to accelerate to 60 mph (97 kph) in under 2.5 seconds, CEO Peter Rawlinson said. ‘This is the first true inter-city car,’ Rawlinson said. The car costs ‘north of $100,000’ and the company hopes to create more affordable
versions priced below that figure, he said. The first vehicles are expected to roll out of the plant next December, Rawlinson said, adding that about 15,000 cars are expected to be produced in the first full calendar year. ‘Arizona is on a roll, and this hasn’t
happened by accident,’ Ducey said. ‘This investment could transform the economy of Pinal County and Casa Grande for years to come.’ Lucid Motors could qualify for about $8 million in grants and about $44 million in tax credits, the Arizona Commerce Authority
said.” [Associated Press, 12/4/19
(=)]
INternational
New
Car Sales Fall Again As UK Demand For Diesel Vehicles Dives. According
to The Guardian, “Sales of new cars in the UK continued to fall last month as demand for diesel vehicles declined sharply, while hybrid and electric vehicles reached a new record market share. Weak business and consumer confidence, economic uncertainty and
confusion over diesel and clean air zones dragged down demand for new cars, said the Society of Motor Manufacturers and Traders, the industry body. It said 156,621 vehicles were registered in November, down 1.3% from the same month a year ago, after a 6.7%
drop in October. The new car market is down 2.7% so far this year, with 2.2m registered. Sales of new vans – often regarded as an indicator of business confidence – fell for a third month, down 9.6% in November. Petrol car sales climbed 2% to 97,441, but sales
of diesel models crashed by 27.2% to 36,941. Demand has plummeted amid air-quality concerns and taxation changes in after the 2015 Volkswagen emissions scandal, despite the industry’s insistence that the latest vehicles have significantly reduced nitrogen
oxide and particulate emissions. The chancellor raised tax for new diesel and company cars last year. In London, a new ultra-low emission zone, which imposes a £12.50 daily charge on older diesels in central London, took effect in April. The area of the zone
will be expanded in October 2021. Drivers of the most polluting diesel lorries, vans and buses face tougher standards in Greater London from next October.” [The Guardian,
12/5/19
(=)]
Auto
Manufacturers
GM,
LG Chem To Announce EV Battery Joint Venture In Ohio. According
to CNBC, “South Korea’s LG Chem said on Thursday it would invest $916 million in its U.S. subsidiary by 2023 to set up an electric vehicle battery joint venture with General Motors. An LG Chem spokesman confirmed an earlier Reuters report on the joint venture
but declined to give details. One source familiar with the matter told Reuters earlier that the facility, expected to be located in the Lordstown area of Ohio, would see an investment of more than $2 billion, with GM and LG Chem expected to invest more than
$1 billion each. The venture is likely to be signed on Thursday, sources said. A General Motors (GM) spokeswoman declined to comment. ‘Talks occur on a regular basis in the auto industry between a variety of partners on different topics, but as a matter of
policy we don’t discuss who, where or when those discussions might occur,’ she said. The sources said workers at the plant were expected to be represented by the United Auto Workers union and earn in the range of $15 to $17 an hour. A GM-LG plant could be
the first unionized battery factory in the United States. Tesla’s factory and LG Chem’s battery factory in Michigan do not have unions. Ohio has become a lightning rod in the 2020 presidential election after GM announced in November 2018 plans to close a car
manufacturing plant in Lordstown, drawing condemnation from U.S. President Donald Trump. The plant’s closure was one issue during a lengthy strike by GM workers. GM said in September it planned to bring battery cell production to the Lordstown area, which
it said would create about 1,000 manufacturing jobs.” [CNBC, 12/5/19
(=)]
OK
Beemer: Why European Luxury Sedans Are Becoming A Relic Of The Past And Electric SUVs Are On The Rise.
According
to the Washington Post, “Elizabeth Dickson recently decided to skip a luxury gas-guzzling vehicle, instead purchasing a Tesla Model 3. While the Tesla carried a more expensive monthly payment, the 25-year-old from Raleigh, N.C., said the gas savings and anticipated
lack of maintenance offset the added cost. Plus, she wanted to be surrounded by cutting-edge technology. ‘There’s things that Tesla is doing that other brands aren’t even considering right now,’ said Dickson, an operations manager for a large airline. ‘It
just makes more sense.’ The rapid embrace of upscale electric cars by aspirational consumers like Dickson shows how battery-powered vehicles are primed to become a major force in the auto industry, with broad implications for mechanics, autoworkers, oil companies
and environmentalists. While many have long predicted an electric car revolution, Tesla’s quick success in the luxury market — which often sets the direction for the entire automotive industry — shows that the tipping point may have already happened. Just
two years after launching the Model 3 into production, Tesla far outsells vehicles in the luxury sport sedan segment by its direct competitors, including Mercedes-Benz, BMW, Audi and Lexus, according to Edmunds market data reviewed by The Washington Post.
The company claims it has bested its all of its direct competitors from those brands combined, based on delivery data.” [Washington Post,
12/5/19
(=)]
Nissan
Shifts EV Strategy To Premium Vehicles, Not ‘Discount Cars’ Like Leaf. According
to Electrek, “Under new leadership, Nissan wants to reclaim its leadership in electric vehicles. But it’s going to downplay affordable electric cars like the Leaf hatchback. Instead, newly minted CEO Makoto Uchida wants Nissan EVs to have robust features,
long range, and higher prices that would bring higher profits. The new strategy will start with a new pure-electric crossover SUV, based on the Ariya concept, that would sell in Europe for the equivalent of between $55,000 and $78,000. Nissan will position
the Ariya EV as a premium vehicle, according to Automotive News Europe. The company believes the crossover can compete as a high-end product based on long-range as well as using Nissan’s latest ProPilot semi-autonomous system. It could be an excruciating two
years until the Ariya arrives in the US, perhaps by late 2021. Nissan will continue to offer its two existing EVs in Europe: the Leaf and e-NV200 van. Also, the company will try to standardize the electric powertrain technology used by Nissan and Renault vehicles.
The Nissan LEAF and Renault Zoe EV were developed separately. But now the two brands will develop a shared EV platform that will also underpin the Ariya.
Automotive News Europe reported that the Ariya was going to be badged as an Infiniti before the luxury brand was discontinued in Europe. Under the former CEO Carlos Ghosn, the Leaf’s price was discounted to stimulate sales, which was criticized by the new
leadership.” [Electrek, 12/4/19
(=)]
Opinion Pieces
Analysis: The Environmental Footprint Of Electric Versus Fossil Cars.
According to Md Arif Hasan and Ralph Brougham Chapman in Mic, “There is a lot of discussion on the benefits of electric cars versus fossil fuel cars in the context of lithium mining.
Please can you tell me which one weighs in better on the environmental impact in terms of global warming and why? Electric vehicles (EVs) seem very attractive at first sight. But when we look more closely, it becomes clear that they have a substantial carbon
footprint and some downsides in terms of the extraction of lithium, cobalt and other metals. And they don’t relieve congestion in crowded cities. In this response to the question, we touch briefly on the lithium issue, but focus mainly on the carbon footprint
of electric cars. The increasing use of lithium-ion batteries as a major power source in electronic devices, including mobile phones, laptops and electric cars has contributed to a 58% increase in lithium mining in the past decade worldwide. There seems little
near-term risk of lithium being mined out, but there is an environmental downside. The mining process requires extensive amounts of water, which can cause aquifer depletion and adversely affect ecosystems in the Atacama Salt Flat, in Chile, the world’s largest
lithium extraction site. But researchers have developed methods to recover lithium from water. Turning to climate change, it matters whether electric cars emit less carbon than conventional vehicles, and how much less. The best comparison is based on a life
cycle analysis which tries to consider all the emissions of carbon dioxide during vehicle manufacturing, use and recycling.” [Mic,
12/4/19 (=)]
Analysis: Will 2020 Be The Year Of The Electric Vehicle?
According to Travis Hoium in USA Today, “Electric vehicles (EVs) have been the next big thing in transportation for nearly a decade, but they’re still a bit player in the auto market.
According to a report by McKinsey & Company, despite 63% year-over-year growth, EVs were just 2.2% of the global auto market in 2018. In 2020, the momentum in electric vehicles may reach a new level, and once they get rolling, they will be hard to stop. Not
only is Tesla expected to have another big year with Model Y deliveries expected to start, but General Motors, Kia, Hyundai, Audi, Porsche, and many more will also introduce or expand their range of EVs. And these offerings aren’t tiptoeing into the market,
as we’ve seen in the past. There will be compelling, long-range, affordable vehicles available for customers next year. The EV market may finally be something to take seriously. The first hindrance EVs faced was anxiety that drivers would be stranded miles
from a charging station. Cross-country drives or even long road trips were once unthinkable with an electric drivetrain, especially when early vehicles had ranges of less than 100 miles. Range anxiety isn’t completely gone, but today it shouldn’t be any harder
to drive an EV a long distance than a conventional vehicle. Many have ranges of over 250 miles on a single charge, and the charging infrastructure across the U.S. is accessible almost anywhere. According to German website Statista, there are 20,000 charging
locations and 57,000 charging plugs across the U.S. That’s still fewer than the 150,000 gas stations across the country, but remember that EVs can also be charged at home.” [USA Today,
12/4/19 (=)]
Analysis: For Moving Mountains, Or Climbing Them, Jeep’s Wrangler Goes Diesel.
According to Jerry Garrett in the New York Times, “Jeep has been on this quest for decades — ‘the Holy Grail,’ said Jim Morrison, the marque’s boss since June — for a diesel engine
suitable for the Wrangler. ‘Since I’ve been in this job, the three things Jeep customers keep telling me they want are a pickup truck, a diesel in a Wrangler and the return of the Wagoneer,’ Mr. Morrison said last month at a media event in Utah. ‘We delivered
on the truck with the introduction of the Gladiator. Here, we’re unveiling the first Wrangler EcoDiesel. No comment on the Wagoneer.’ He added: ‘The customers were right. This version of the Wrangler has the perfect mix of driving dynamics, four-by-four capability,
fuel economy and torque.’ In a way, it has made little sense that the Wrangler never had a diesel option in its decades of existence. Gasoline engines are suited for speed — which the boxy, high-riding Wrangler itself is not. Gas engines get inherently worse
fuel economy. And they generally don’t have the ‘oomph’ needed for grunt work like pulling stumps, clambering up hills and scrambling over rough terrain. Those jobs call for diesel power. But that power has a drawback, too: emissions. Fiat Chrysler of America,
Jeep’s parent company, is betting it can pass ever-more-stringent tests, a wager of hundreds of millions of dollars. It has passed the needed certification; it should go on sale in time for the first few to end up in driveways on Christmas morning with a red
bow on the hood. It will then need to win over shoppers.” [New York Times,
12/5/19 (=)]
Chad Ellwood
Climate Action Campaign
202.448.2877 ext. 119