Cars Clips: October 8, 2020

 

Clean Car Standards

 

Colorado Attorney General And Environmental Advocates Want To Hit The Brakes On Federal Rollback Of Car Emissions Standards. According to Colorado Public Radio, “Environmental advocates joined Colorado state officials in a virtual press conference to speak out against the Trump administration’s rollback of vehicle emissions standards. ‘What has been proposed is to pull the rug out from under us, not to give us the choice that has been part of our Clean Air Act regime for a very long time,’ said Colorado Attorney General Phil Weiser. The Clean Air Act allows California to seek a wavier to set its own higher standards for fuel economy, because of the state’s history with poor air quality. This wavier allows other states to adopt California’s higher standards over the federal ones, which Colorado has. But President Donald Trump revoked California’s preemption wavier, because of California’s influence on automakers. He said a single federal emissions standard would make cars more affordable and safer. The move has lead to a multistate lawsuit against the changes, which Colorado has joined. ‘It is beyond thinkable that we would have a preemption of our state authority, because since 1978 states have been given a choice,’ Weiser said. ‘We opted into that wavier, that’s part of our clean air planning.’ The administration has also introduced a new rule, that would replace Obama-era emissions standards. Those would have required new vehicles to have an average fuel economy of 36 miles-per-gallon by 2026. The new rule reduces that to less than 31 miles-per-gallon. At the press conference, Weiser said the rollback is a challenge to science and the rule of law. ‘We have wildfires that as we can see from this year, are getting worse because of climate change. And we know that carbon emissions, including from automobiles is a big part of this picture. We can do something about this,’ Weiser said.’” [Colorado Public Radio, 10/8/20 (+)]

 

States

 

Analysis: Are New Mexico's Vehicle Mileage Standards For Real? According to Paul Gessing in KRWG, “Recently, California Gov. Gavin Newsom made headlines with his announcement that by 2035 his State will ban the sale of gas-powered vehicles. That is an ambitious goal, but given the time line, it is hard to say what compliance will look like. But for another, arguably even more ambitious car mileage proposal, one need look no further than New Mexico. Las September New Mexico Gov. Lujan Grisham announced that by just model year 2022 New Mexico would be increasing its fuel economy requirement for new cars to 52 MPG. The current average fuel economy rate is 25.1 MPG according to the EPA. As we noted at the time, Gov. Lujan Grisham (at the time) had ‘out California-ed California’ by adopting even more stringent fuel economy standards than those on the books in California. Will California’s decision spur Lujan Grisham to action? Perhaps more importantly, is New Mexico REALLY going through with the Gov.’s 52 MPG standard? This was put forth at a time of a record (oil-driven) economic boom in New Mexico. That boom has evaporated thanks to COVID 19 and the Gov.’s lockdown of the State’s economy. She MAY not be as enthusiastic about such radical plans at a time of serious economic challenges. If you’re expecting to find legislation on this topic from the 2020 legislative session, don’t worry, nothing was even introduced. We have never even seen a formal executive order from the Gov. formalizing this requirement. In fact, after the initial round of media discussion (led off by the New York Times) the issue has been completely forgotten about. And just to be clear, if the Gov. completely backed away from her plan, we would be more than happy to support such a move.” [KRWG, 10/7/20 (-)]

 

Electric Bus Manufacturing Workforce Training Launched In Los Angeles. According to Clean Technica, “Are you excited about the large-scale arrival of electric buses? Are you uplifted by the promise of cleaner air on our streets and at our kids’ schools? Do you want to help produce those electric buses? In Los Angeles, you can now learn how to do so. A partnership between the Los Angeles County Department of Workforce Development, Aging, and Community Services (WDACS), Proterra, United Steelworkers (USW) Local 675, Jobs to Move America, and Citrus College is focused on providing the training for these jobs. They are offering an ‘Electric Bus Manufacturing Technology’ training program, with the first group of students kicking off this Friday, October 9. It’s just a 9-week program, quickly getting students ready for the EV workforce. Among the more obvious goals of accelerating the transition to electric vehicles, the crew behind this initiative highlight that the aim is ‘to advance diversity, equity, inclusion, and job quality in the green manufacturing sector by targeting historically underrepresented groups with barriers to employment.’ Members of management from electric bus maker Proterra guided the curriculum on production and assembly — in particular, members of management in the production and assembly portion of the business. The courses are being taught at Citrus College, and the practical objective is to train people for union jobs at Proterra’s factory in the city of Industry, California. (Yes, I looked it up — that’s an actual city name. Though, only about 200 people live there, while it is home to about 3,000 businesses and nearly 7,000 jobs. So, Industry is a fitting name.)” [Clean Technica, 10/7/20 (=)]

 

Congress

 

Bipartisan Senators Push Bill To Reduce Federal Car Use. According to E&E News, “A bipartisan group of senators unveiled legislation yesterday to save taxpayer dollars on government vehicles. The ‘Domestic Reduction In Vehicle Expenditure and Lowering Emissions From State Sources (DRIVE LESS) Act’ is sponsored by Sens. Jeanne Shaheen (D-N.H.), James Lankford (R-Okla.) and Angus King (I-Maine). The measure seeks to reduce the number of vehicles that are purchased or leased by federal agencies, potentially saving taxpayers hundreds of millions of dollars. In particular, the bill would direct the General Services Administration and the Office of Management and Budget to determine whether agencies are utilizing their vehicles enough to justify the expense. Shaheen has introduced the ‘DRIVE LESS Act’ in previous Congresses, but the measure has been unsuccessful so far. ‘Taxpayers shouldn’t be footing the bill for government agencies’ unnecessary vehicle expenses,’ she said in a statement. ‘The government’s bloated vehicle budget is a good example of where we can make smart, targeted cuts, and my bill makes sure the government takes better control of its wallet.’ Lankford agreed, saying, ‘The American people should not be required to maintain the cost of the federal government’s excessive vehicle stockpile. I’m hopeful the Senate seriously evaluates and considers this bipartisan, commonsense proposal.’” [E&E News, 10/8/20 (=)]

 

Courts and legal

 

Feud Over Car Defects Could Affect Climate Law. According to E&E News, “A Supreme Court battle over the proper venue for a motor vehicle defect liability case soon could ripple through legal efforts by local governments to get Big Oil to pay for climate impacts. The nation’s highest bench heard arguments yesterday in Ford Motor Co. v. Montana 8th Judicial District Court, in which the Michigan-based automaker argued that a court in the Treasure State was not the proper home for litigation stemming from a 2015 car accident that killed Montana resident Markkaya Jean Gullett. Ford argued that the Montana courts did not have specific personal jurisdiction simply because Gullett’s accident took place in the state — a position that, if the Supreme Court accepts it, could throw a wrench into lawsuits by Rhode Island, Baltimore, and other cities and states seeking compensation from the energy industry for its contributions to climate-induced flooding, wildfires and storms. ‘When you’re dealing with these big multinational corporations, one of the ways they’ve avoided being held accountable is manipulating where they can be sued,’ said Bob Percival, director of the University of Maryland’s environmental law program. Proceedings in at least one climate case — filed by Rhode Island against Chevron Corp. and other firms — are on hold pending the outcome of Ford Motor. During oral arguments yesterday, the justices appeared skeptical of Ford’s position that it could not be sued in Montana — an argument the company lost in the state’s highest court. ‘Since they do a lot of business with the same kinds of cars there, they have to be prepared to defend against this kind of suit,’ Justice Stephen Breyer told an attorney for the company. ‘So what’s unfair about it?’” [E&E News, 10/8/20 (=)]

 

Auto Manufacturers

 

BMW iX3 Production Has Started In China, Not USA. According to Clean Technica, “BMW has begun production of the BMW iX3, its second fully electric vehicle, coming several years after the BMW i3 went into production in 2013. Interestingly, production of the first vehicles is in China, and there’s a reason or two for that. While the US is in the midst of some kind of nonsensical cultural civil war, stimulated by a certain portion of society 1) wanting to rewind the clock 50+ years (i.e., go backward) and/or 2) so unhappy with how their dreams ended up that they just want to see other people suffering or getting ‘pwned.’ In practice, that means the United States has cut cleantech policies and programs meant to stimulate millions of jobs while accelerating the transition to zero-emissions technology. Donald Trump’s administration has also removed numerous regulations meant to protect Americans from harmful, deadly, carcinogenic pollution from burning fossil fuels and other industrial processes — pulling the country backward again in completely counterproductive ways. If you cut regulations for the $2,000 benefit of a corporation, resulting in a $100,000 cost to an American who gets cancer (or even dies prematurely), you are not making progress as a society — you are just letting a few richer people get richer while everyone else suffers more. On the specific topic of vehicles, the USA’s electric vehicle growth has largely been thanks to California regulations that stimulated many electric car purchases and a $7500 federal EV tax credit, along with the technology maturing to a more competitive level of course. Instead of expanding on those policies and encouraging a quicker transition to electric vehicles, the Donald Trump administration has been fighting California and trying to take away its and a dozen other states’ rights to implement stronger clean air and fuel economy standards than the US government as a whole.” [Clean Technica, 10/7/20 (=)]

 

Einride Launches Global Fleet Of Electric Robo Trucks. According to Forbes, “Swedish autonomous vehicle manufacturer Einride announced today the launch of the next generation of its driverless electric transport vehicles and said they will be available globally. Einride’s announcement comes as businesses increasingly turn to self-driving vehicles to move goods from factories and warehouses to points of sale and customers. A major example is retail giant Walmart which has been using autonomous vans and trucks built by Palo Alto, Calif, startup Gatik to move groceries from distribution points to pickup sites for online grocery customers in the retailer’s home base of Bentonville, Ark. Einride calls its line Autonomous Electric Transport (AET) vehicles ‘pods,’ which have no driver/passenger cabins and are remotely controlled by operators back at the office. The new line includes the AET 1, AET 2, AET 3 and AET 4. They are 100% electric heavy transport vehicles the company says can improve shipment efficiency, reduce transportation costs by up to 60% and carbon dioxide emissions by 90%. ‘We can already see a strong traction from the market to start using autonomous and electric transport,’ said Einride founder Robert Falck in a release. ‘The benefits are clear and we want to be the player in the market that can help our customers to make the transition to a better future of transport happen.’ Available now for pre-order, the AET 1 and 2 are designed to run in closed fenced facilities, harbors and public roads. The AET 3 and 4 will be available in 2023 and will run at higher speeds an suited to long-distance highways and larger warehouses, the company said. Orders require a $10,000 deposit and there’s a fee to subscribe to Einride’s platform based on the operational level.” [Forbes, 10/8/20 (=)]

 

Volkswagen Says EVs Will Make Up 90% Of Its Norway New Car Sales By Next Year. According to The Driven, “German automaker Volkswagen has predicted that electric vehicles will make up around 90% of its car sales in Norway, the world’s leading EV market, as early as next year, thanks to the Nordic nation’s stable and ongoing policy support. The bullish forecast was offered on Wednesday by Harald A. Moeller, the Norwegian importer of Volkswagen cars, alongside a further prediction that VW EVs would completely replace its diesel and petrol car offerings in Norway by 2023. The comments follow the news last week that Volkswagen’s newly launched ID.3 had become the top selling EV in Norway, where total electric vehicle sales had broken another market milestone, passing the 60% market share of total September auto sales. As The Driven reported here, the Volkswagen ID.3 sells in Norway for NOK 350,000 ($A52,340 converted) for the base model, or NOK 400,000 ($A59,820 converted) for the first edition ‘Plus’ option, and was released on the Norwegian market on August 28. With a 62 kilowatt hour battery it offers 420km driving range (WLTP). Volkswagen says it will also offer an 82 kilowatt hour battery down the track which would be rated for 550km driving range (WLTP) from 2021. As well as the ID.3, the Volkswagen e-Golf is also big in Norway, as the second most common car on the Norwegian roads after the Nissan Leaf – there are almost 50,000 of them. Volkwagen’s confidence that things can only get better for its electric car sales in Norway stems from the release of the government’s 2021 fiscal spending plan on Wednesday, which extended the country’s policy of zero tax on fully electric cars. ‘This allows us to be confident in saying we can hit 90% electric car sales next year,’ said Harald A. Moeller, as quoted in Reuters.” [The Driven, 10/8/20 (=)]

 

New Electric SUV Spotted Near GM, Could It Be Next Cadillac Electric? According to Electrek, “A new electric SUV prototype has been spotted in Kansas City, where GM has an assembly factory and some operations. Could it be the next Cadillac electric? With a dozen new electric vehicles set to launch in the coming year, we are bound to see more prototypes testing on public roads in the coming months. An Electrek reader spotted one of those prototype EVs in Kansas City, Missouri this week. He managed to capture a few images of the camouflaged vehicle thanks to his TeslaCam — Tesla’s integrated dashcam system using Autopilot cameras. Here are a few of the best still pictures from the TeslaCam footage: Seeing it in person, the reader believed it to be an EV and there’s no visible exhaust pipe. The vehicle is heavily camouflaged and therefore, it’s hard to tell what it is or even which brand is behind it. Ford and GM both have extensive operations in Kansas City, including assembly factories. We know that GM has many electric SUVs in the lineup, according to their EV roadmap, and most of them are under the Cadillac brand: Cadillac Lyriq SUV, which is designed to hit the heart of the crossover market and meet the needs of customers around the world. A globally sized luxury three-row SUV that emphasizes interior space and cargo capability for the modern family. An SUV EV with attainable luxury— similar to today’s Cadillac XT4 — and aimed at this key global growth segment. A full-size, three-row luxury SUV that builds on the DNA of the brand’s highly successful Escalade. The Cadillac Celestiq Statement Vehicle that is an ultra-lux EV with bespoke, hand-assembled craftsmanship and project build rate of only 1.2 vehicles per day.” [Electrek, 10/7/20 (=)]

 

Mercedes-Benz Teases ‘Highest-Efficiency Electric Car In The World’ With Over 750 Miles Of Range. According to Electrek, “Mercedes-Benz teases a new super efficient electric car concept, the Vision EQXX, with over 750 miles of range on a single charge. At Daimler’s latest company update, the automaker teased a new technical program to develop ‘the longest-range and highest-efficiency electric car the world has ever seen.’ Mercedes-Benz’s head of research and development, Markus Schafer, commented: ‘We have set up a group of our engineers to take on an extraordinary task: to build the longest-range and highest-efficiency electric car the world has ever seen. This is a serious project, chasing next-generation technologies. We intend to incorporate the learning into the next generation of series production cars.’ The project takes the shape of the Mercedes-Benz Vision EQXX concept, which the company teased with a few images: The German automaker said that the electric vehicle should be able to travel from Beijing to Shanghai, a journey that covers about 750 miles (1200 km), on a single charge. This incredible range will be achieved through efficency improvements rather than just a bigger battery pack. Daimler noted that the program will be used to test new technologies to improve efficiency and bring those to production cars: While Vision EQXX is a technology program, it is expected to result in innovations that will quickly make their way into series production cars. The automaker said that its Mercedes-Benz F1 HPP group in the UK is also working on the project: ‘Mercedes-Benz also announced an exciting next step in electric vehicle development today, with the Vision EQXX technology program.” [Electrek, 10/8/20 (=)]

 

Electric Vehicles

 

GM, Honda-Led Group Launches Blockchain-Based Electric Vehicle Charging Network. According to Benzinga, “A working group chaired by General Motors Company and Honda Motor Co Ltd has released the specifications on the workings of a blockchain-based decentralized electric vehicle charging system. What Happened: The first of its kind vehicle charging system, based on blockchain technology, was launched Tuesday, Mobility Open Blockchain Initiative (MOBI) said in a statement, first seen on Cointelegraph. ‘Electric vehicles, chargers, and electricity producers can have a secure identity, communicate with a standard messaging format, and automatically record transactions such as charging, generation, and exchange on a distributed ledger,’ said MOBI Chief Operating Officer Tram Vo. The EVGI standard supports data transparency, trust, coordination, and automation among mobile service providers, consumers, utilities, and government stakeholders, as per MOBI. Why It Matters: MOBI, which is a non-profit alliance of the world’s large automakers and others, claims to be technology and ledger agnostic. The alliance hopes that the new standard will power applications that help lower carbon emissions, improve road safety, reduce traffic congestion, and lead to beneficial environmental outcomes. In August, California approved a $473 million funding to build charging electric vehicle infrastructure, while in the same month Florida said it planned to invest $8.6 million. A month earlier, New York Governor Andrew Cuomo had announced $750 million for the state’s EV infrastructure.” [Benzinga, 10/7/20 (=)]

 

Research and Analysis

 

Rare Earth Metals Get The Presidential Treatment. According to Forbes, “Last Wednesday, the president signed an executive order addressing the threat posed by the United States’ overreliance on ‘critical minerals’ from ‘foreign adversaries.’ To be more specific, ‘critical minerals’ here means ‘rare earth metals,’ and ‘foreign adversaries’ means ‘China.’ Although not as rare as gold, the group of 17 metals are used in the manufacture of advanced technologies, including electric vehicles, wind turbines and missile guidance systems. Your iPhone contains a number of them. Each F-35 fighter jet has about half a ton of these strategic elements. The problem is that the U.S. no longer produces barite (used in fracking), gallium (semiconductors, 5G telecommunications), graphite (smartphone batteries) and a number of other materials. ‘For 31 of the 35 critical minerals, the United States imports more than half of its annual consumption,’ according to the press release. Today, China controls some 80 percent to 95 percent of the world market, depending on the mineral. Obviously this is a concern, especially given that the country’s exports of rare earths have fallen more than 25 percent year-over-year from January to August due to the pandemic. President Trump has rightfully declared this a national emergency and asks that the U.S develop a ‘commercially viable’ mineral supply chain that does not depend on imports from China or elsewhere. The question is: How do we get there?” [Forbes, 10/7/20 (=)]

 

Climate Program For Cars Raises Equity Concerns. According to E&E News, “Environmental justice advocates are raising concerns that a proposed cap-and-invest program for cars won’t help communities of color that are disproportionately located near freeways and other sources of tailpipe pollution. Leaders and supporters of the program counter that it would place a strong emphasis on equity and would yield public health benefits for all affected communities. At issue is the Transportation and Climate Initiative (TCI), a proposed cap-and-invest program for the transportation sector in 11 Northeastern states and the District of Columbia. It’s modeled after the Regional Greenhouse Gas Initiative, a cap-and-trade program for the power sector in 10 states (Climatewire, Dec. 18, 2019). The Climate Justice Alliance, a network of more than 70 environmental justice organizations, issued a scathing press release yesterday about the program’s potential impact on low-income people and communities of color. ‘The outright disregard for the historical and present day impacts of such devastating policies on black, brown and poor communities, despite claims to the contrary, continues to be demonstrated throughout TCI’s inequitable policy and process,’ the release stated. ‘Given the emboldened white supremacist environment we currently face in this country, this approach is tone deaf at best and racist at worst,’ it added. TCI would set a cap on greenhouse gas emissions from cars, trucks and other mobile sources of pollution in the region. The cap would get lower each year to steadily reduce the amount of pollution.” [E&E News, 10/8/20 (=)]

 

Army Taps University Of Wisconsin To Lead Research Into Hybrid Vehicles, Aircraft. According to The Hill, “The U.S. Army has selected the University of Wisconsin for a multimillion-dollar grant to develop hybrid-electric engine technology for the service branch as part of the Pentagon’s efforts to cut down on carbon emissions. The Combat Capabilities Development Command Army Research Laboratory last week awarded researchers at the university an $11.5 million grant for research set to begin this fall on technology that will investigate whether hybrid-electric engines could be integrated into existing Army systems. A study from a researcher at Brown University last year found that the U.S. military generates a larger carbon footprint than some industrialized countries, including Norway. The analysis said the Pentagon does not ‘publicly and regularly report its fuel consumption or greenhouse gas emissions.’ In 2014, the Pentagon said the effects from man-made climate change pose a national security threat. ‘Among the future trends that will impact our national security is climate change,’ said then-Defense Secretary Chuck Hagel, a former Republican senator from Nebraska. ‘Rising global temperatures, changing precipitation patterns, climbing sea levels, and more extreme weather events will intensify the challenges of global instability, hunger, poverty, and conflict. They will likely lead to food and water shortages, pandemic disease, disputes over refugees and resources, and destruction by natural disasters in regions across the globe.’” [The Hill, 10/7/20 (=)]

 

International

 

Hyundai To Recall Kona EV Over Faulty Battery Cells - South Korea Ministry. According to Reuters, “Hyundai Motor Co will voluntarily recall its Kona electric vehicles as a possible short circuit due to faulty manufacturing of its high-voltage battery cells could pose a fire risk, South Korea’s transport ministry said on Thursday. Starting Oct. 16, the recall, which includes software updates and battery replacements after inspections, involves 25,564 Kona electric vehicles (EVs) built between September 2017 and March 2020, the transport ministry said in a statement. The safety recall ‘is a proactive response to a suspected defective production of high-voltage batteries used in the vehicles, which may have contributed to the reported fires’, the company said, adding that it will deploy all necessary measures to identify the cause of the fire and address customers’ needs. Some 13 incidents of fire involving the Kona EV, including one each in Canada and Austria, were documented so far, according to a statement by ruling party lawmaker Jang Kyung-tae’s office on Thursday. Kona EVs use batteries made by LG Chem Ltd. An LG Chem spokesman said the company did not have an immediate comment. Hyundai’s shares fell 1.4%, reflecting investor concerns that the recall and battery replacements could be costly, as the battery takes up about 30% of an EV’s price, analysts said. In contrast, LG Chem shares rose 1.8%. The Kona Electric is the South Korean automaker’s first long-range subcompact SUV EV. In July, Hyundai Motor Group leader Euisun Chung said Hyundai Motor and sister company Kia Motors aim to sell 1 million battery-driven electric vehicles in 2025, targeting more than 10% of the global market share for such vehicles.” [Reuters, 10/7/20 (=)]

 

Opinion Pieces

 

Analysis: Would You Buy A Used Car From This Oil Trader? According to David Fickling in the Washington Post, “Why on earth would the world’s biggest independent oil trader be getting into the used-car business? That’s what’s happening at Vitol Group, the trading house that buys and sells almost as much crude as Saudi Arabia produces.(1) The company is setting up a used-vehicle trading platform that will operate in Turkey and Pakistan under the name Vava Cars, Bloomberg News reported. It’s ‘on a mission to become the most trusted car transaction platform in the world,’ according to its website. There are two obvious reasons for doing this, and one that’s a bit more subtle. First, Vitol has long been looking to shift into areas other than its core business of trading petroleum and its products. Even in the days before industry executives were warning about peak crude demand, diversifying into a wider array of goods has simply seemed prudent management in a business as low-margin as commodity trading. Vitol set up a grains desk seven years ago and trades metals, power, emissions and coal. It has a fund investing in renewable power that will soon have about a gigawatt of generating plants, roughly the same as a decent-sized power station. It’s even producing biogas from cow manure in Idaho. A second reason is that used cars are a commodity much like any other — and in Turkey, at least, the market is looking hot. Import tariffs are some of the highest in the world, and with the lira losing about a quarter of its value over the past year amid soaring inflation, vehicles are a relatively solid store of value. The recovery in spending as Covid-related lockdowns have receded, accompanied by cuts in domestic auto-loan rates and relatively idle domestic car plants, has further pushed up prices.” [Washington Post, 10/7/20 (=)]

 

Op-Ed: Newsom's EV Executive Order Will Help Make California Breathable Again. According to an op-ed by Matt Peterson in The Hill, “Climate science has long warned us of the extreme heat and extreme fires that we are now facing on the West Coast. As tragically historic fires burn 4 million acres and repeated heat waves ravage our state, California Gov. Gavin Newsom’s (D) recent executive order on zero emission cars and trucks is the bold action required to tackle this climate crisis. Transportation is responsible for 40 percent of our state’s emissions and has long been the major source of smog-forming pollution our residents live with every day. Transforming how we move people and goods away from the internal combustion engine and fossil fuels will also help prevent thousands of deaths annually due to air pollution and reduce the risk for vulnerable populations due to upper respiratory diseases, including COVID-19. Electric vehicles (EVs) are California’s second largest export and the sector is only poised to grow. Last year, it was valued at more than $7 billion with nearly 300,000 jobs created in-state. The executive order sends a clear message to the market for long-term investment, building on California’s remarkable EV manufacturing success story where we are home to 34 manufacturers of EVs and related equipment. A recent job training agreement between Steelworkers, the county of Los Angeles and other partners with cutting-edge EV manufacturer Proterra shows high quality jobs are being created as well. With EV charging infrastructure installation, employment opportunities are also growing, including jobs to maintain and repair the charging stations, for which my organization has a thriving workforce training program.” [The Hill, 10/7/20 (+)]

 

 

Chad Ellwood

Senior Research Associate

Climate Action Campaign

cellwood@cacampaign.com

202.448.2877 ext. 119