Clean Car Standards
Deregulation's
Deadly Consequences: How Trump's Assault On Government Exacerbated The Pandemic.
According
to Salon, “President Donald Trump’s ongoing efforts to roll back regulations designed to protect the environment, workers, and public health likely played a significant role in the spread of Covid-19 in the United States. That’s according to a new report released
Tuesday by New York University School of Law’s Institute for Policy Integrity (IPI), a nonpartisan policy think tank. The 45-page report titled ‘Weakening Our Defenses’ (pdf) details how Trump’s far-reaching deregulatory push has exacerbated several major
risk factors for contracting and spreading Covid-19, such as high levels of air pollution, hazardous working conditions, and lack of adequate health insurance. […] The report cites the Trump administration’s rollback of restrictions on nearly 2,000 forms of
hazardous air pollution in 2018, weakening of the Clean Power Plan, and gutting of vehicle fuel efficiency standards in 2020 as examples of environmental deregulatory actions that left the U.S. more vulnerable to Covid-19. The U.S. currently has the most confirmed
coronavirus cases and deaths in the world. ‘These rollbacks have put all of us—especially low-income communities, Black people, and people of color, and essential workers—at higher risk of contracting and dying from Covid-19,’ said Gina McCarthy, former Environmental
Protection Agency administrator and current president of the Natural Resources Defense Council. The report also points to the Trump administration’s weakening of workplace safety standards at meatpacking plants, which have become major Covid-19 hotspots.”
[Salon, 7/14/20
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States
15 States
Will Follow California’s Push To Electrify Trucks And Buses. According
to The Verge, “Fifteen states and Washington, DC have announced that they will follow California’s lead in switching all heavy-duty trucks, vans, and buses over to running on electricity, in what could be one of the most significant efforts to reduce harmful
diesel engine pollution in the United States. It could also be a big development in the fight for environmental justice because emissions from diesel-powered commercial vehicles disproportionately harm Black, Asian, and Latinx communities. The states that
signed the agreement along with Washington, DC are: California, Connecticut, Colorado, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington. California’s Air Resources Board
(CARB) announced in late June that all commercial trucks and vans must be zero-emission by 2045, with milestones along the way. The state previously announced a rule in 2018 that says transit agencies must purchase all-electric buses starting in 2029. The
phalanx of states and the District of Columbia are agreeing to similar goals, making it so that ‘100 percent of all new medium- and heavy-duty vehicle sales be zero emission vehicles by 2050, with an interim target of 30 percent zero-emission vehicle sales
in these categories of vehicles by 2030,’ according to the New York Governor’s Office. The agreement is not legally binding. But California has long been a leader in pushing clean energy vehicles, dating back to the passenger vehicle initiative it spearheaded
in the 1990s that helped bring electric cars to bear in the United States.” [The Verge,
7/14/20
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States
Team Up In Push For Electric Heavy Vehicles. According
to Axios, “A new pact to speed deployment of zero-emission trucks, vans, buses and other big vehicles that move lots of people and objects around was unveiled by 15 states plus D.C. this morning. Why it matters: The new ‘memorandum of understanding’ is non-binding,
but it sets aggressive targets, and provides a template for working together on emissions from industries that often operate across state lines. The big picture: ‘While trucks and buses only account for 4 percent of vehicles on the road, they are responsible
for nearly 25 percent of total transportation sector greenhouse gas emissions,’ the announcement states. It also notes that medium- and heavy-duty vehicles account for lots of smog-forming and particulate pollution, which disproportionately affects poor people
and communities of color. How it works: The MOU sets a goal of having electric models account for all medium- and heavy-duty vehicle sales in their states by 2050, and a nearer-term goal of 30% by 2030. The states involved include California, New Jersey, New
York, Colorado, Pennsylvania and North Carolina. What’s next: The agreement calls for creating a joint plan within six months that includes suggestions for... Incentives states can adopt. Plans to have public transit and other government agencies increase
deployment. Infrastructure strategies. Plans to work with private fleet managers.” [Axios,
7/14/20
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More Than
A Dozen States Unite To Boost Electric Trucks. According
to the Washington Post, “More than a dozen states are teaming up to boost sales of pickup trucks, school buses and big rigs that run entirely on electricity and do not pump climate-warming pollution into the air. Leaders from Massachusetts, New Jersey, New
York, North Carolina, Pennsylvania and 10 other states, along with the District of Columbia, say they will try to make sure every new medium- and heavy-duty vehicle sold within their borders is fully electric by the middle of the century. The agreement is
not legally binding, and it promises to send a fleet of electric trucks onto the road before the technology to do so is fully developed. But it is the latest sign of Democratic-controlled states taking steps to combat climate change in the absence of federal
action from the Trump administration. The state-level moves are also an effort to diminish a source of air pollution that disproportionately chokes poor and minority neighborhoods, which often abut the highways on which diesel-guzzling trucks carry freight.
‘We want clean air, reliable transportation, better health outcomes and cost effective climate solutions,’ said Katie Dykes, commissioner of the Department of Energy and Environmental Protection in Connecticut, one of the states that signed the agreement.
The states say they will work together to adopt policies meant to encourage the sale of electric commercial vehicles and the construction of charging stations for them. Possible steps the states may take include giving rebates or tax breaks to buyers of heavy-duty
electric vehicles, requiring cities to switch to electric transit buses and encouraging utilities to install charging stations for large commercial vehicles.” [Washington Post,
7/14/20
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15 States
Pledge Emissions-Free Truck Sales By 2050. According
to The Hill, “Fifteen states and the city of Washington, D.C., on Tuesday announced an agreement that aims to make all new truck and bus sales emission-free by 2050. The effort is intended to severely curtail greenhouse gas emissions from vehicles by getting
governments to require that sales within their borders be of electric trucks and buses. As an interim goal, those signing the memorandum of understanding would have 30 percent of new truck and bus sales in 2030 be emission free. The memorandum is not legally
binding and it says that states that don’t meet the goals won’t face any sort of disciplinary action. The bipartisan document was signed by the governors of California, Colorado, Connecticut, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North
Carolina, Oregon, Pennsylvania, Rhode Island, Vermont and Washington state and the mayor of Washington D.C. The move follows a decision by California to require truck manufacturers to sell a greater percentage of zero-emissions trucks by 2024. The transportation
sector makes up 28 percent of the country’s greenhouse gas emissions, the largest out of any sector, according to the Environmental Protection Agency (EPA). Earlier this year, the EPA unveiled its own proposal to update truck emissions regulations for the
first time since 2001, however, critics fear the measure will undermine tougher state standards.” [The Hill,
7/14/20
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15 States,
D.C. Aim For 100% Zero-Emission Trucks And Buses. According
to E&E News, “Fifteen states and the District of Columbia today signed an agreement to transition to 100% zero-emission trucks and buses by 2050. The agreement marks a milestone in state efforts to slash pollution from the transportation sector, which is currently
the country’s largest source of carbon emissions. The states signed a memorandum of understanding to ‘work collaboratively to advance and accelerate the market for electric medium- and heavy-duty vehicles, including large pickup trucks and vans, delivery trucks,
box trucks, school and transit buses, and long-haul delivery trucks.’ Over the next six months, the states will develop an action plan that recommends ways of accelerating the still-nascent market, such as tax credits for consumers. The goal is to ensure that
100% of all new truck and bus sales be zero-emission vehicles by midcentury, with an interim target of 30% zero-emission vehicles by 2030. ‘While trucks and buses only account for 4% of vehicles on the road, they are responsible for nearly 25% of total transportation
sector greenhouse gas emissions,’ the document says. ‘In fact, emissions from trucks are the fastest growing source of greenhouse gases, and the number of truck miles traveled on the nation’s roads is forecast to continue to grow significantly in the coming
decades,’ it adds. The participating states are California, Connecticut, Colorado, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont and Washington.” [E&E News,
7/14/20
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Following
California’s Lead, States Aim To Make All Truck And Bus Sales Zero-Emission By 2050.
According
to the Washington Examiner, “More than a dozen states are aiming to make 100% of new truck and bus sales zero-emission by 2050 in the largest multistate clean transportation planning initiative to date. Under a memorandum of understanding unveiled Tuesday,
15 states and the District of Columbia will develop an action plan within six months to drive widespread deployment of zero-emissions trucks and buses. The states, which include California, New York, Colorado, Maryland, Massachusetts, Pennsylvania, North Carolina,
and Oregon, are aiming to have 30% of all new truck and bus sales be zero emissions by 2030, in addition to the mid-century target, according to the document. ‘The states are moving forward on this because the federal government isn’t,’ said Paul Miller, executive
director of the Northeast States for Coordinated Air Use Management, or NESCAUM. Miller’s group represents the air quality officials for the six New England states, New Jersey, and New York, and it will facilitate the development of the joint zero-emissions
truck plan. The states’ partnership follows California’s recent adoption of landmark zero-emissions truck standards, requiring all truck sales in the state to be zero-emission by 2045. The memorandum, however, is completely voluntary and doesn’t create any
binding obligations on the states. States that signed the memorandum can adopt California’s standards as an option to increase zero-emissions trucks in their own jurisdictions, but they aren’t required to. Miller said the states will also consider options
such as purchasing incentives and nonfinancial incentives such as preferred access for zero-emissions trucks to congested areas or dedicated loading zones for zero-emissions vehicles.” [Washington Examiner,
7/14/20
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States
Team Up In Electric Truck Push. According
to Axios, “A new pact to speed deployment of zero-emissions trucks, vans, buses and other big vehicles that move lots of people and objects around was unveiled by 15 states plus D.C. this morning. Why it matters: The new ‘memorandum of understanding’ is non-binding,
but it sets aggressive targets, and provides a template for working together on emissions from industries that often operate across state lines. The big picture: ‘While trucks and buses only account for 4 percent of vehicles on the road, they are responsible
for nearly 25 percent of total transportation sector greenhouse gas emissions,’ the announcement states. It also notes that medium- and heavy-duty vehicles account for lots of smog-forming and particulate pollution, which disproportionately affects poor people
and communities of color. How it works: The MOU sets a goal of having electric models account for all medium- and heavy-duty vehicle sales in their states by 2050, and a nearer-term goal of 30% by 2030. The states involved include California, New Jersey, New
York, Colorado, Pennsylvania and North Carolina. What’s next: The agreement calls for creating a joint plan within six months that includes suggestions for... Incentives states can adopt. Plans to have public transit and other government agencies increase
deployment. Infrastructure strategies. Plans to work with private fleet managers.” [Axios,
7/14/20
(=)]
epa
Diesel
Engine Makers Get Coronavirus Compliance Flexibility.
According to Politico, “EPA has eased certain certification reporting compliance requirements for diesel engine manufacturers during the pandemic, according to a Monday memo. Social-distancing restrictions have led companies to close testing facilities necessary
for certifying their engines, but EPA’s memo says it will study reported instances of noncompliance on a case-by-case basis and urges companies to comply with requirements when possible.” [Politico,
7/15/20
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Auto Manufacturers
Nissan Unveils Ariya Crossover As First New All-Electric Vehicle Under Turnaround Plan.
According to CNBC, “Nissan Motor unveiled a new all-electric crossover called Ariya early
Wednesday as part of a four-year business turnaround plan to achieve sustainable growth, financial stability and profitability for the embattled Japanese automaker. The vehicle is one of 12 new or redesigned models Nissan has promised to release through 2021
under its ‘Nissan Next’ plan. It is the first all-electric vehicle to debut since the strategy was announced in May. ‘Ariya is Nissan’s next chapter in physical form,’ Nissan Chief Operating Officer Ashwani Gupta said during a virtual roundtable. ‘It is a
catalyst of change in our product thinking.’ The restructuring, which goes through early-2024, includes cutting billions in fixed costs, axing several vehicle nameplates and closing or realigning production plants following the Nissan-Renault-Mitsubishi Alliance’s
ouster of longtime leader Carlos Ghosn, now an international fugitive. The plan was announced as the company posted its first annual loss in 11 years. The coronavirus pandemic added to troubling times as the company was still attempting to recover from the
ongoing scandal surrounding its former leader. Gupta described the global pandemic as an ‘unprecedented’ crisis for Nissan, however, he said, the company also has learned new, more efficient ways of working, including online sales in the U.S. ‘We do believe
Covid-19 on one side has been a great challenge for us, but, on the other side, it has taught us a new way of working and a new way of selling,’ he said. Ariya, according to Nissan, will start at about $40,000 when it arrives in dealerships in the second half
of 2021. It will be produced in Japan and imported to the U.S.” [CNBC, 7/14/20
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Nissan Unveils Its First Electric SUV, The Ariya.
According to CNN, “The Nissan Ariya, the company’s first all-electric SUV, will be able
to drive up to 300 miles on a single charge and features a high-tech interior, with almost no buttons or knobs, according to the automaker. The vehicle was unveiled during an online event Wednesday. Nissan became one of the first major car companies to offer
an all-electric car when it introduced the Leaf in 2010. At the time, Nissan had big plans to make a whole lineup of electric vehicles, which then-CEO Carlos Ghosn predicted would make up 10% of the global car market by 2020. So far, things haven’t turned
out the way. Last year, electric vehicles made up just 2.6% of all cars sold globally, according to the International Energy Agency. Besides a new and improved Leaf, the only other electric vehicle Nissan offers widely is the eNV, a plug-in version of the
Nissan NV van, which isn’t sold in the U.S. Nissan executives have said the company will come out with eight new electric vehicles by 2022. The Ariya crossover SUV will become Nissan’s second electric vehicle available in the US. It’s bigger and roomier than
the Leaf, a compact car, and has a design somewhat like Nissan’s Murano SUV. The most noticeable difference is the front ‘grille’ design. Electric cars don’t require nearly as much incoming air as gasoline-powered car, so the front grille is purely a design
feature. The Ariya’s grille has a large sunken area with a subtle pattern that’s supposed to resemble a traditional Japanese kumiko design. It also has a slightly redesigned Nissan logo that lights up. Inside, the Ariya has a particularly roomy interior thanks
to the lack of an engine under the hood.” [CNN, 7/15/20
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A Tesla Blind Spot.
According to Forbes, “As an electric vehicle manufacturer, Tesla (NASDAQ: TSLA) earned
$418.6 million in 2018, $594 million in 2019, and $354 million in Q1 2020 revenues from regulatory credits. Let’s see, $354 million, compared to $68 million in Tesla’s Q1 2020 net income (profits after all expenses and taxes). Without this $354 million in
regulatory credits, Tesla wouldn’t have been profitable in Q1 2020. No discussion about S&P inclusion. Not even close. The U.S. federal and state government policies determine the extent of these credits and whether they stay in place. While this is a blind
spot - unknown to many Tesla investors, and dependent on government whim, investors can take solace that these regulatory credits have been around for many years. We also don’t believe they’re likely to go away soon. Our dashboard analysis How Do Regulatory
Credits Impact Tesla’s Gross Margins? takes a closer look at what Tesla’s quarterly margins and profits would look like excluding credit sales. Parts of the analysis are summarized below. What Are Regulatory Credits? Several U.S. states and countries have
Zero Emissions Vehicle regulations that require that clean vehicle account for a certain mix of auto manufacturers’ sales each year. If automotive companies, which still largely sell internal combustion engine-based vehicles, don’t meet these standards, they
can buy credits from the likes of Tesla that earn credits, as they only sell electric vehicles. Although the revenues from these credits are quite volatile they are very lucrative for Tesla, as it likely incurs no direct costs to earn them. We estimate that
Tesla’s Automotive Gross margins for Q1’20 (a quarter that saw particularly high credit sales) would have been lower by over 500 bps had Tesla not recognized regulatory credit revenues.” [Forbes,
7/14/20
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Bonus: On The Record With Fisker's CEO.
According to Axios, “Fisker CEO Henrik Fisker spoke with Axios’ Dan Primack about the
company’s plans to go public. You can catch some of the interview on the ‘Axios Re:Cap’ podcast, but here are a few snapshots... What they’re saying: Fisker offered several reasons why he’s bullish on EV adoption, including: ‘We are seeing a big push outside
the U.S.. both in Europe and China,’ he said, citing legislative efforts in the European Union. ‘I think coming out of COVID-19, people had a short glimpse of what the world would look like if it didn’t have all these polluting gasoline cars driving around,
with the blue sky showing up all over the world,’ he said. The big picture: Fisker also touted the merger with Spartan Energy Acquisition Corp. that will enable his company to go public. ‘I don’t think that there’s tons of money in the private market. it’s
a very unstable way to raise money when it’s, when you have a venture that’s very capital intensive, like the auto market,’ he said. ‘We didn’t want to take the risk of having to go out and do multiple private rounds. I don’t really think that ... typical
Silicon Valley investors are the right investors for this type of venture. ‘So we thought a [special purpose acquisition company] is the right way because that way, we got all the funding to get us all the way to production with our Fisker Ocean.’ What we’re
watching: The U.S. election. If he wins, Joe Biden has vowed to accelerate EV deployment, including much stronger vehicle CO2 rules and a big charging infrastructure buildout.”
[Axios,
7/14/20
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Electric Vehicles
Second Wave Of Coronavirus Could Delay Rivian’s RT1 Electric Pickup.
According to Forbes, “Nearly all auto manufacturers have resumed operation after the
Covid-19 pandemic forced them to shut down production. They’re now busy assessing supply chain stability and adjusting timelines to account for three months of lost time. For electric vehicle startup Rivian, the shutdown delayed the launch of its flagship
vehicle—the R1T electric adventure truck—to 2021. As cases of coronavirus continue to spike in several states, a second wave could make hitting the new target a stretch for the Plymouth, Michigan manufacturer. Rivian has yet to complete ‘Job 1,’ the first
vehicle slated to be built on finalized machinery, which would signal that it’s ready to produce at scale. Rivian released a video of its facility in April and there was still a lot left to complete, including the conveyer belts and parts of the retrofitted
paint shop, said Matteo Fini, an automotive industry analyst for data firm IHS Markit. Given the state of the factory, which is formerly owned by Mitsubishi and located in Normal, Illinois, a 2020 launch date would have been tight even for a seasoned manufacturer,
Fini said. Finishing the assembly line is just one of the major hurdles. The company still needs to ramp up to full production of its truck—a process that can take anywhere from one to four months. This means Rivian has until the end of the third quarter for
a market launch in 2021. If the company wants meaningful sales volume, getting up to speed by summer is vital. A bigger barrier, in addition to the already challenging production goal, will be setting up retail and delivery network during a pandemic, said
Ed Kim, an industry analyst for automotive research firm AutoPacific.” [Forbes,
7/14/20
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1 Big Thing: The EV Money Jolt.
According to Axios, “These are heady days for electric vehicle companies, and if you
haven’t made any cars yet, well, you’re still in the club — you might even be a popular member. Driving the news: Fisker has reached a $2.9 billion deal to go public via a merger with an Apollo Global Management-backed special purpose acquisition company.
The deal unveiled Monday will bring Fisker — a member of the hasn’t-built-a-car-yet club — over $1 billion in new funding, with heavyweight investors including AllianceBernstein and BlackRock-managed funds. Why it matters: The capital infusion is the latest
in a busy stretch of deals and market moves that suggest private investors and equity markets see big potential in technologies that now represent a tiny slice of the global vehicle fleet. Catch up fast: There’s a lot of private capital and, in Tesla’s case,
shareholder interest in EV companies lately. The Fisker deal came the same day that Tesla’s stock soared, at one point trading near $1,800-per-share (!!), before cooling off to close slightly down at roughly $1,500, but still triple its value the beginning
of the year. On Friday, Rivian closed a $2.5 billion funding round ahead of the production launch next year of its SUV, pickup and delivery vehicles for Amazon. Fisker, which hopes to launch production of its Ocean SUV in 2022, last week announced a separate
$50 million fundraising round. Karma Automotive, which is in the early stages of producing a plug-in hybrid sports car, has raised another $100 million. Nikola Motors, which has yet to build anything but plans electric and hydrogen-powered pickups and big
rigs, saw its stock price soar after going public in June via a transaction similar to Fisker’s.” [Axios,
7/14/20
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Election 2020
Car Dependency Baked Into Joe Biden’s $2 Trillion Climate Plan.
According to Forbes, “Democratic presidential candidate Joe Biden revealed details of a $2 trillion climate plan on July 14. Biden unveiled
the aggressive plan—which is the second part of his ‘Build Back Better’ proposal—during a speech at the Chase Center in Wilmington, Delaware. His plan majors on ‘clean’ energy and jobs, and would be fast-tracked through Congress if Biden was elected U.S. president
in November. ‘When Donald Trump thinks about climate change, the only word he can muster is ‘hoax’,’ said Biden. ‘When I think about climate change, the word I think of is ‘jobs’.’ Biden said his proposal would create one million jobs in electric vehicle manufacturing.
The plan would also create subsidized replacement schemes for electric cars to wean Americans away from gasoline. The presidential hopeful is currently riding high in polls. It is likely that many of those who’ll be voting for him in November will be doing
so to eject from the White House the distinctly ungreen President Donald Trump. However, for all his talk about also investing in light rail networks, eco buses, e-scooters and ‘installing infrastructure for pedestrians and bicyclists’—initiatives which got
passing mentions in today’s speech—it’s clear that a Biden presidency won’t tackle America’s chronic dependency on cars and will likely make it worse. In a seven-point plan, car dependency is assured in the first two items. ‘Build a Modern Infrastructure,’
point number one in Biden’s plan, involves upgrading America’s roads and bridges, mainly to benefit motorists.” [Forbes,
7/14/20
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Biden’s $2 Trillion Climate Plan Promotes Union Jobs, Electric Cars And Carbon-Free Power.
According to Inside Climate News, “Democratic presidential nominee Joe Biden unveiled a $2 trillion clean economy jobs program Tuesday
that marked a significant expansion in his plan for tackling climate change, with jobs-creation and environmental justice as its pillars. With a blue ‘Build Back Better’ placard on his lectern, the former vice president sought to signal that the coronavirus
crisis will not displace the imperative to act on climate. Instead, he framed the immediate and long-term crises as linked, requiring the same sort of government intervention: a massive program to ramp up electric vehicles, carbon-free power and energy efficiency
throughout the economy. ‘These are the most critical investments we can make for the long-term health and vitality of the American economy and the safety of the American people,’ Biden said in a speech from Wilmington, Delaware, his hometown. ‘Here we are
now with the economy in crisis, but with an incredible opportunity not just to build back to where we were before, but better, stronger, more resilient, and more prepared for the challenges that lie ahead,’ he said. ‘And there is no more consequential challenge
that we must meet in this next decade than the onrushing climate crisis.’ The planned $2 trillion federal investment marks a step up from
the $1.7 trillion plan Biden unveiled during the Democratic primary battle. He also is accelerating his timetable for action, seeking to put the United States on track to achieve net zero emissions four years earlier than his original goal of 2050.” [Inside
Climate News, 7/14/20
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Joe Biden Wants To Resurrect Cash For Clunkers, With An Electric Spin.
According to CNET, “Former vice president and current presidential hopeful Joe Biden outlined his climate plan Tuesday on the social
media platform Periscope. In it are a few things that are especially relevant to us car folks. Specifically, he wants to make the United States a leader in the design, manufacture and adoption of clean vehicles. To do that, he plans to put forward a Cash for
Clunkers-esque scheme that would offer rebates or incentives to car buyers who make the switch from internal combustion to electric vehicles. Even more impressive is his plan to replace the US government’s massive fleet of vehicles with American-made electric
vehicles. This would be an enormous effort to make happen but would likely have several other, positive knock-on effects like increased job creation in the automotive industry. Of course, adding all of these new EVs to the mix would expose some other shortcomings
in America’s current infrastructure, and to help with that, Biden wants to build upward of half a million new EV charging stations, which would, in his view, alleviate a great deal of Americans’ range anxiety with EVs and increase adoption. If some of this
sounds familiar, it’s probably because Sen. Chuck Schumer (D-N.Y.) made a similar proposal back in 2019, and Biden’s plan likely builds on that. For those of you who don’t remember the particulars of the senator’s plan, the headline figure is that it would
cost $454 billion over the course of 10 years. That's a whole lotta quiche, friends, and we'd be shocked if that kind of spending made it through the increasingly tricky legislative process at all, let alone without some severe reductions.” [CNET,
7/14/20
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Biden's Climate Plan Includes Cash For Clunkers To Speed Electric-Car Adoption.
According to Car and Driver, “Presumptive Democratic presidential nominee Joe Biden shared his goal for a climate change plan today.
A large part of the plan involves electric vehicles and what Biden believes can make the United States the leader in electric-vehicle development. The piece that would impact drivers the most is a plan to offer incentives or rebates for people to swap their
older, less fuel-efficient cars for EVs made in America. It essentially sounds like the Cash for Clunkers scheme back in 2009 where people could replace their vehicles with more efficient ones. During today’s speech, Biden didn’t share details of the idea
such as how much the incentives would be or what constitutes bad fuel efficiency. The plan seems rooted in a proposal from Sen. Chuck Schumer (D–New York) that would cost $454 billion over 10 years to offer incentives for people to trade in their gas car for
an electric, hybrid, or hydrogen fuel-cell vehicle. Biden did announce that he would also push forward a plan to replace the United States’ enormous fleet of government vehicles to electric vehicles that—like those in the rebate scheme—would be made and sourced
in the United States. He stated that the government will provide the demand and grants to retool factories so that automakers and suppliers step up to expand capacity, ‘so that the United States—not China—leads the world in clean vehicle production.’ As for
infrastructure, the plan also includes building half a million new EV charging stations across the country. That boom in charging points would alleviate some of the range anxiety that continues to keep EV adoption low.” [Car and Driver,
7/14/20
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International
German Court Says Tesla Self-Driving Claims Are Misleading.
According to the New York Times, “Tesla’s plans to steal buyers from German luxury automakers suffered a setback Tuesday after a court
in Munich ruled that the California maker of electric cars made exaggerated promises about its autonomous driving technology. Tesla’s use of the brand name Autopilot for its software, as well as claims the company made on its German website about the software’s
function, create the false impression that the car can drive itself, a Bavarian state court ruled. In fact, the court said, Autopilot is a driver-assistance system that requires human intervention. In any event, the court said in response to a suit by a German
business group, the country’s laws do not allow vehicles to operate autonomously on the highway. Tesla can appeal the decision, which bans the company from making the claims but does not take effect for a month. The ruling may foreshadow the resistance Tesla,
which is building a factory in Berlin, is likely to face as it tries to market its vehicles abroad. The ruling also illustrates the hurdles Tesla faces as it tries to bring autonomous driving to the road. Elon Musk, Tesla’s chief executive, has defied growing
industry skepticism about the feasibility and safety of cars that can steer, brake and navigate without human intervention. Mr. Musk told an audience in Shanghai this month that ‘essentially complete autonomy will happen and I think will happen very quickly,’
according to Reuters. Mr. Musk has faced criticism from United States officials for making exaggerated claims about Autopilot’s capabilities and not doing enough to warn Tesla drivers of the software’s limitations.” [New York Times,
7/14/20
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Europe’s Shift To Electric Cars Picks Up Despite Recession.
According to the Associated Press, “The coronavirus has cancelled business plans all over the world but Europe’s push into electric
cars isn’t one of them. Sales of battery-powered and hybrid cars have held up better than the overall market amid a deeply painful recession, mainly thanks to the action of governments. The 27-country European Union is moving ahead with a major shift in transportation
as part of the bloc’s efforts against climate change. Under regulatory pressure carmakers are rolling out a slew of new electric models so they can meet tougher limits on greenhouse gases that come into full force next year. Battery-only models are becoming
more affordable, especially as sales are supported by substantial government subsidies. As sales of internal combustion cars have fallen, demand for battery-only cars and hybrids that combine electric motors with conventional engines has been stable or even
increased, recent statistics show. By contrast, electric car adoption is moving more slowly in the U.S. due to regulatory uncertainty. The market share of battery and hybrid vehicles rose sharply across major European markets during the first half of the year,
even as the outbreak closed showrooms in March and April. Germany saw an increase to 8.4% from 3.4% a year earlier as overall sales of all car types slumped 35%. France saw the plug-in share jump to 9% from 2.5%. Sweden saw a surge to 25%, from 10%. One of
the pandemic car buyers was Frank Schendel, a dentist from a small town outside the Bavarian city of Augsburg. In May he bought a battery-powered Hyundai Kona Elektro, a compact SUV-style hatchback. He had rented a Tesla on vacation for a couple of days.”
[Washington Post, 7/15/20
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Electric-Car Subsidies Make Renaults Free In Germany.
According to Bloomberg, “Car buyers in Europe can now get their hands on a brand-new electric vehicle for less than the typical cost
of a mobile-phone contract. Thanks to newly generous subsidies, some are even free. Shoppers have swarmed virtual showrooms in Germany and France -- the region’s two largest passenger-car markets -- after their national governments boosted electric-vehicle
incentives to stimulate demand. Their purchase subsidies are now among the most favorable in the world, according to BloombergNEF. The state support is allowing Autohaus Koenig, a dealership chain with more than 50 locations across Germany, to advertise a
lease for the battery-powered Renault Zoe that is entirely covered by subsidies. In the 20 days since it put the offer online, roughly 3,000 people have inquired and about 300 have signed contracts. ‘If we had more sales staff, we would have sold even more,’
said Wolfgang Huber, head of electric-car sales for the dealer in Berlin, who published a Facebook post asking customers to be patient. ‘We did expect an increase in sales with the subsidies, but this run really struck us.’ Chancellor Angela Merkel and President
Emmanuel Macron have sought to soften the coronavirus pandemic’s blow to the badly hit car sector. Sales in Europe have recovered more slowly in Europe than in China or North America, pressuring policy makers to support major sources of employment and economic
activity. In France, sales of Renault’s Zoe model are on track to double this year even as demand for gasoline vehicles has cratered. And in the Netherlands, where the city of Amsterdam is banning non-electric cars from 2030, a 10 million-euro ($11.4 million)
fund to support EV purchases was used up in just eight days this month.” [Bloomberg,
7/15/20
(=)]
Opinion Pieces
Analysis: The New Ford Bronco Is An Obscene Monument To Climate Denialism.
According to Aaron Gordon in VICE, “On Monday evening, Ford held a digital launch event for the new Ford Bronco, resurrecting the brand name for a Sport Utility Vehicle engineered
for off-roading performance that is best known for transporting a fugitive along a Southern California freeway. There isn’t much you need to know about the new Bronco—which I can assure you via Ford’s press release is capable of being driven on any terrain
you could possibly want to drive it—because the odds are you will never need the off-roading capabilities this particular vehicle offers. For John and Jane Q. Commuter, the only thing you need to know about the Bronco—which, unless you regularly go off-roading
for sport and thrill, you should never ever consider buying no matter how much Ford tries to convince you otherwise with its massive marketing campaign—is that it does not come with a hybrid or electric version. In the year 2020, this is tantamount to climate
denialism. The Bronco’s devolution from off-road enthusiast utilitarianism to mainstream faux-adventurism lifestyle signaling is emblematic of how the American relationship with SUVs has changed since the Bronco was discontinued in 1996. The Bronco may have
a special place in the hearts of off-roading enthusiasts and OJ Simpson trial obsessives, but it was never an especially popular vehicle, because it was never an especially practical one. When it debuted in 1965, Ford never considered marketing it to the masses.
Ford produced some 1.1 million Broncos over its 30-year run; by comparison, Ford sold about 900,000 F-series pickup trucks in 2019 alone. Ford killed off the Bronco because it had essentially replaced it with the Explorer and Expedition, two large SUVs hopping
on the SUV craze of the 1990s.” [VICE,
7/14/20 (=)]
Chad Ellwood
Senior Research Associate
Climate Action Campaign
202.448.2877 ext. 119