Clean
Car Standards
U.S.
Vehicle Fleet Fuel Efficiency Fell In 2019 To 24.9 Mpg – EPA. According
to Reuters, “The U.S. vehicle fleet’s fuel efficiency in the 2019 model year fell to 24.9 miles per gallon (mpg) as more Americans bought larger sport utility vehicles instead of cars, the Environmental Protection Agency said on Wednesday. The EPA said the
fuel economy of the U.S. fleet fell by 0.2 mpg and most manufacturers are using banked credits to meet current compliance requirements. It said fuel economy and emissions have improved in 12 out of the 15 years since the 2004 model year vehicle fleet average
of 19.3 mpg. Automakers with better performance than the requirements can sell excess credits to other automakers. General Motors Co and Fiat Chrysler Automobiles NV (FCA) both saw fleetwide fuel economy fall 0.5 mpg in the 2019 model year, with FCA at 21.2
mpg and GM at 22.5 mpg. Ford Motor Co rose 0.1 mpg to 22.5 mpg. The shift to larger vehicles was the biggest factor hurting fuel economy. In 2019, 44% of the fleet were cars and 56% were light-duty trucks, a category that includes SUVs, the highest percentage
of trucks on record. SUVs alone account for almost 50% of U.S. vehicle production. The EPA also said average vehicle weight and horsepower hit records in the 2019 and were on place to rise again in 2020. […] Toyota Motor Corp sold 33.8 million credits, while
BMW AG and Daimler AG bought 5.5 million credits and 12.2 million respectively. President-elect Joe Biden has vowed to reverse the Trump administration’s rollback of Obama-era fuel economy requirements, while EPA Administrator Andrew Wheeler said the report
‘shows in detail how few auto manufactures were able to meet the unrealistic emissions standards set by the Obama Administration without resorting to purchasing emission credits.’” [Reuters,
1/6/21
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Car
Dealers Challenge Minnesota’s Proposed Emissions Standards. According
to Courthouse News Service, “Minnesota car dealers took to federal court Wednesday to fight proposed changes to the state’s emissions rules for new automobiles, saying that the state’s ongoing rulemaking is preempted by federal environmental laws. The regulations
at issue would bring Minnesota’s emissions standards for new car sales up to par with those enforced in California. Minnesota would be the first Midwestern state to take up that elevated — and contested — standards, which were made possible by an Environmental
Protection Agency waiver revoked in 2019. Fourteen other states and the District of Columbia have also adopted the standard, which sets low targets for greenhouse-gas emissions and proportional minimums for zero-emission vehicles offered for sale to consumers.
In a complaint in federal court, the Minnesota Auto Dealers Association argued that the revocation of that waiver means Minnesota’s ability to imitate California’s standards is preempted by the Clean Air Act and the Energy Policy and Conservation Act, two
federal laws that grant the power to make emissions and fuel economy standards to the EPA and Secretary of Transportation, respectively. ‘[The Minnesota Pollution Control Agency] admits that the rule making process is ‘unusual’ because the proposed rule cannot
take effect until three things happen,’ attorney Byron Starns wrote in the dealers’ complaint. Those three things, he continued, included the resolution of litigation over California’s waiver, the EPA and National Highway Traffic Safety Administration reverse
course and restore the waiver, and Minnesota meets federal requirements to impose the same rules.” [Courthouse News Service,
1/6/21
(=)]
Automakers
Pump Brakes On Emissions Cuts — EPA Report. According
to E&E News, “Automakers are backpedaling on gas mileage improvements and emissions reductions at the end of President Trump’s first term, according to an EPA report released today. The agency’s annual ‘Automotive Trends Report’ comes as President-elect Joe
Biden prepares to set stringent new clean car standards to spur greater environmental progress for the industry. This year’s report surveyed the average fuel economy and greenhouse gas emissions of 14 major automakers from model years 2014 to 2019. For the
first time in five years, the automakers failed to improve their average fuel economy and cut their average tailpipe emissions, the report shows. Fiat Chrysler Automobiles NV, General Motors Co., Ford Motor Co. and Mercedes-Benz emerged at the bottom of the
pack with the lowest fuel efficiency and highest emissions. Leading the pack with the best environmental records were Tesla Inc., Honda Motor Co., Hyundai Motor Co. and Subaru Corp. Environmentalists said the findings show the importance of the clean car standards
established by President Obama, which were rolled back by the Trump administration. ‘This report demonstrates that strong standards work. For much of the past decade, automakers delivered cleaner, more efficient vehicles, saving drivers money at the pump while
also cutting air pollution,’ Luke Tonachel, director of clean vehicles and fuels at the Natural Resources Defense Council, said in an email. ‘But, after the Trump administration moved to gut those standards, the efficiency of new vehicles dropped in 2019 and
carbon dioxide emissions jumped,’ Tonachel added. Dan Becker, director of the Safe Climate Transport Campaign at the Center for Biological Diversity, said the report illustrates why the Biden team should craft aggressive new tailpipe regulations. ‘Without
tough rules from the Biden administration, automakers will keep pushing gas-guzzling Trumpmobiles on consumers rather than deliver clean cars that cut pollution,’ Becker said in a statement. ‘With stringent, new rules, the new administration can take the biggest
single step of any nation to fight climate change.’” [E&E News, 1/6/21
(=)]
EPA
Finds Fuel Efficiency Dropped, Pollution Spiked For 2019 Vehicles. According
to The Hill, “Automakers’ fuel efficiency went down and vehicle pollution went up for the first time in five years in 2019, according to a report released Wednesday by the Environmental Protection Agency (EPA). The report, which analyzed data for model year
2019 vehicles, found fuel economy dropped by 0.2 percent in the U.S. when automakers were instead expected to increase their fuel efficiency by 5 percent. Carbon pollution went up 3 grams per mile. For the Trump administration, the report was a rebuke of the
Obama-era fuel efficiency standards they drastically weakened. ‘This report shows in detail how few auto manufactures were able to meet the unrealistic emissions standards set by the Obama administration without resorting to purchasing emission credits,’ EPA
Administrator Andrew Wheeler said in a release. ‘We have set realistic standards in 2020 that will reduce emissions as well as vehicle costs and maintain consumer choice going forward.’ The previous standards were considered one of the most significant climate
fighting actions of the Obama presidency, asking automakers to make year-over-year improvements, producing fleets that could average 55 miles per gallon (mpg) by 2025. Under the Trump administration rule finalized in March, automakers would need to reach 40
mpg by 2026, bringing mileage below what automakers have said is possible for them to achieve. ‘The automakers rolled back before Trump did,’ Dan Becker, director at the Safe Climate Transport Campaign with the Center for Biological Diversity, said by email.”
[The Hill, 1/6/21
(=)]
AP
| For First Time In 5 Years, U.S. Gas Mileage Down, Emissions Up. According
to E&E News, “A new government report says gas mileage for new vehicles dropped and pollution increased in model year 2019 for the first time in five years. The mileage increase comes as Americans continue to buy SUVs and trucks, and shift away from more efficient
vehicles. EPA says the changes show that few automakers could meet what it called unrealistic emissions and mileage standards set by the Obama administration through the 2020 model year. But environmental groups say that automakers used loopholes and stopped
marketing fuel-efficient cars and electric vehicles knowing that the Trump administration was about to roll back mileage and pollution standards. The EPA report released yesterday says gas mileage fell 0.2 mpg for model year 2019, while greenhouse gas emissions
rose by 3 grams per mile traveled, compared with 2018 figures. Mileage fell and pollution increased for the first time since 2014. Mileage dropped to 24.9 mpg while greenhouse gas emissions rose to 356 grams per mile, the report said. To comply with the Obama-era
standards, which the Trump administration rolled back starting with the 2021 model year, 11 of 14 major automakers had to rely on credits from previous years or those purchased from companies with more zero-emissions vehicles, EPA said. EPA Administrator Andrew
Wheeler said in a prepared statement yesterday that the agency has set realistic standards ‘that will reduce emissions as well as vehicle costs and maintain consumer choice going forward.’ But environmental groups said the falling mileage and rising pollution
are the outgrowth of Trump’s rollbacks.” [E&E News, 1/7/21
(=)]
EPA
Says U.S. Vehicle Fuel Economy Slipped In 2019. According
to Politico, “Average U.S. vehicle fuel economy fell in model year 2019 and carbon dioxide emissions rose, according to the annual fuel economy trends report from EPA. Details: Real-world mileage averaged 24.9 miles per gallon for the 2019 U.S. fleet, a decrease
of 0.2 mpg and the first reversal in efficiency in five years. Meanwhile, average emissions totaled 356 grams of carbon dioxide per mile, up 3 grams from 2018. Both metrics are near all-time records despite the backtracking. EPA said that while vehicle types
were at or near record emissions lows, consumer preferences for sport utility vehicles and pickups over smaller cars were behind the trend. The 14 major auto manufacturers continued to comply with the Obama-era greenhouse gas standards, EPA said, though all
but three — Tesla, Honda and Subaru — relied on banked or traded credits to do so. Automakers still have a ‘large bank’ of credits remaining from over-compliance earlier in the program, though the agency warned that around two-thirds of the remaining credits
will expire after the 2021 model year. Preliminary data for model year 2020 vehicles — which may change before EPA finalizes its next report in 2022 — projects improvements of 0.8 mpg and 12 grams, which would represent new records. Regulatory impact: EPA
Administrator Andrew Wheeler said in a statement that automakers’ use of credits for compliance supports the Trump administration’s decision to roll back emissions standards for model years 2021 onward (Reg. 2060-AU09). The report covers 2019 vehicles that
predated that deregulatory action. ‘This report shows in detail how few auto manufactures were able to meet the unrealistic emissions standards set by the Obama Administration without resorting to purchasing emission credits,’ Wheeler said. ‘We have set realistic
standards in 2020 that will reduce emissions as well as vehicle costs and maintain consumer choice going forward.’” [Politico,
1/6/21
(=)]
States
California
Governor’s Stimulus Plan Includes $1.5 Billion To Boost Electric And Hydrogen Vehicles.
According
to CNBC, “Tesla and other electric vehicle makers stand to benefit handsomely if California passes Governor Newsom’s proposed $4.5 billion 2021 budget for economic stimulus in the state. The 2021 proposal, which Newsom previewed on Tuesday, includes $1.5 billion
earmarked to help people and businesses purchase electric or hydrogen vehicles and equipment, and to invest in construction and maintenance of charging and fueling infrastructure, which would be needed to support expanded use of these vehicles in the state.
Newsom’s proposal also dedicates $300 million to maintenance and ‘greening’ of state infrastructure, and would allow installation of electric vehicle charging stations at all state-owned facilities. That could include charging stations from the likes of Tesla,
ChargePoint, Electrify America (part of the Volkswagen Group) and Volta Charging. After a year of extreme wildfires harming his constituents and the California economy, Newsom has said many times over that he views pollution and climate change as an emergency
that requires immediate action. To that end, in September 2020, the governor signed an order banning sales of new internal combustion engine vehicles in California by 2035. The order would still allow gasoline vehicles to be owned and sold on the used-car
market but could ostensibly help reduce greenhouse gas emissions by making these vehicles more scarce. The newly proposed 2021-2022 budget could benefit any makers of electric and hydrogen vehicles selling used or new vehicles in California, and there are
more than ever coming in 2021. According to AutoForecast Solutions Vice President of Global Vehicle Forecasting, Sam Fiorani, in the next year alone, eleven new North American-built electric vehicles are expected to enter the domestic market, along with an
updated Tesla Model S.” [CNBC, 1/6/21
(=)]
Newsom
Proposes First Funding For Gas Car Ban. According
to E&E News, “California Gov. Gavin Newsom (D) wants to spend $1.5 billion to get more clean cars and trucks on the road. Newsom plans to propose the funding in his fiscal 2021-22 budget, he said in a statement, adding that he is ‘building on California’s
historic commitment’ to phase out gas-fueled vehicles. The governor issued an executive order last year saying no new gas-fueled passenger cars could be sold after 2035. The California Air Resources Board will begin drafting regulations this year to meet that
goal. ‘The proposal will support jobs and economic growth and provide air quality benefits and support for low-income Californians to purchase cleaner vehicles,’ Newsom said in the statement Monday. The money would encourage the purchase of zero-emissions
trucks, buses and off-road freight equipment, he said. Newsom did not provide details about how the program would work. The state currently uses revenue from its carbon emissions cap-and-trade auctions to offer rebates to people who buy clean cars. It also
has a program to help low-income residents swap older, polluting vehicles for cleaner ones. Money will also go toward construction of electric charging and hydrogen fueling stations, which Newsom said are ‘necessary to accelerate zero-emission vehicle adoption.’
‘The Budget proposal will leverage additional private sector capital to build the necessary infrastructure and create jobs to support California’s recovery,’ he added. Newsom also proposed spending $300 million from the general fund ‘for the most critical
statewide deferred maintenance, including greening of state infrastructure.’” [E&E News,
1/7/21
(=)]
Presidential
Transition
Democratic
U.S. Congress Could Bring Better Green Cars, More Pressure On Tech. According
to Reuters, “U.S. President-elect Joe Biden’s party appears poised to control Congress as well as the presidency, with two U.S. Senate seats in Georgia likely to go to Democrats, which could mean Corporate America faces stricter regulation on everything from
auto emissions to prescription drug prices. Democrats have won one of the Georgia seats with the second leaning their way. Here are six key industries that could change under Democrats, with the caveat that the margin of control would be razor-thin. AUTOMAKERS
Democratic control of Washington would make it likely that automakers will once again face tougher carbon emissions targets. Biden has pledged to let California require zero-emission vehicles, which the Trump administration had challenged, and improve fuel-efficiency
standards. The auto industry could also get more help with a transition to electric vehicles if Biden can deliver on promises to expand electric vehicle tax credits and fund charging infrastructure. Biden has identified a team to oversee environmental and
climate policy, including former Obama EPA Administrator Gina McCarthy at the White House, who will be pivotal in defining new climate standards for the auto industry. Strong advocates of climate action also could have an easier path to confirmation and could
put more pressure on automakers after four years of relatively hands-off regulation.” [Reuters,
1/6/21
(=)]
Democratic
Senate Could Boost EVs, Batter Fossil Fuels. According
to E&E News, “Corporate advisers are preparing their clients for a strong clean energy push by the incoming Biden administration after Democrats won two runoff elections in Georgia to reclaim the Senate. When President-elect Joe Biden and the new Congress
are sworn in, Democrats will have 50 seats in the Senate and a tiebreaking vote in the White House, along with Speaker Nancy Pelosi (D-Calif.) running the House. Policy analysts and corporate lobbyists say Biden could use that unified power to boost federal
spending on clean energy, slash tax breaks that support fossil fuels and strike down eleventh-hour environmental rollbacks by the Trump White House. The advisers said Biden could go so far as to bypass Congress in an effort to implement some form of a price
on carbon emissions. Yet much of this will hinge on process, including both limits on how Congress can act in response to Trump’s final actions and the rules around executive power. The Congressional Review Act (CRA), for example, allows Congress to kill rules
issued within 60 ‘legislative days’ of the end of an administration — — a timeline that stretches back to around the middle of last May. Scott Segal, a partner at the law and lobbying firm Bracewell LLP, said in a note to Washington reporters that Democratic
control of the Senate could make the CRA an attractive way to address late Trump rules that cut against Biden’s views on climate policy and energy. Segal is registered to lobby for a more than a dozen fossil fuel-reliant companies. But using the CRA comes
with risks for Democrats, political and policy analysts emphasized. The law ‘prohibits agencies from reissuing rules that Congress has rescinded, and it also bars agencies from [issuing] rules that are ‘substantially the same,’’ ClearView Energy Partners said
in a Jan. 5 note to clients.” [E&E News, 1/7/21
(+)]
Auto
Manufacturers
Carmakers Put Their Biggest Faces Forward.
According to the New York Times, “Every
generation of automotive design has its Mona Lisa — and its Dogs Playing Poker. We’ve had tail fins (time for a comeback?) and the mock-convertible tops of landau vinyl roofs (I cruelly — but rightfully — judge my parents on that tacky 1980s decision). Remember
the sharply angled rears of the ‘bustleback’ Cadillac Seville, Lincoln Continental and Chrysler Imperial? No? Lucky you. We may look back at 2020 as the moment automakers reached peak grille. Of course there’s that pandemic and political chaos. But more than
ever, grilles are in. Grilles are big. Grilles are bold. Grilles are somewhat unnecessary on some cars, but there they are. Some could qualify for their own ZIP code if they weren’t on wheels. To understand why this is, it helps to understand the difficulties
automakers face in trying to produce standout designs. Cars and trucks are global products that must meet seemingly countless worldwide governmental safety and fuel efficiency standards. Imagine a new law school graduate having to pass the American, German,
Japanese, Korean and Swedish bar exams in order to work. I rest my case, Your Honor. Automakers spend billions of dollars meeting the blizzard of regulations and shaping silhouettes to cheat the wind. We see only the styling that envelops the engineering.
Design is the sizzle, the emotion, at the very least a tiebreaker when it comes to choosing a vehicle. In 2009 when Akio Toyoda assumed the presidency at the company with his family name on the building, he famously declared, ‘No more boring cars.’ Take a
look at the lineup now. My, what a large face you have, Camry. ‘Years ago, Lexus didn’t have identity,’ said Kevin Hunter, president at Toyota’s Calty Design Research studio. ‘It was trying to be a brand for everyone, which neutralized our position and identity.’”
[New York Times, 1/7/21
(=)]
Chevy Introduces Virtual Shopping Experience For
New Vehicles. According to The Detroit
News, “The pandemic has pushed auto manufacturers and dealers to rethink how customers shop, affirming the importance of virtual platforms like General Motors Co.’s new Chevy MyWay live vehicle tour. The platform, launched Wednesday in test mode, gives customers
one-on-one access to live tours of the Chevrolet lineup with product specialists. It also can create a virtual auto show experience. Chevy expects to ramp up the platform’s capabilities in the coming months to give customers access to product in the comfort
of home. But that doesn’t mean the dealer isn’t a part of the process. Nor does it mean Chevy is backing down on in-person auto shows and debuts, longstanding rites in the industry waylaid over the past year by the global coronavirus. ‘The pandemic is gonna
cause fundamental sea change but you know there’s something very powerful about that visceral reaction to an actual physical property,’ Steve Majoros, vice president of Chevrolet marketing, said Wednesday. ‘While we have done very unique things recently with
Hummer and Lyric, and what you’ll see from us from Chevrolet with EV and EUV will largely be rooted in digital applications, we certainly see a role for that physical experience and engagement with the vehicle.’ With auto shows canceled and businesses closed
because of the pandemic, GM and other automakers switched gears last year to virtual product debuts and saw increased use of online vehicle shopping platforms like GM’s Shop-Click-Drive. Cadillac LIVE launched right before the pandemic, giving customers the
opportunity to experience Cadillac products through live virtual tours — a handy tool for some dealers when in-person dealership sales were halted for a brief time.” [The Detroit News,
1/6/21
(=)]
Chevrolet's New Virtual Auto Shows And More EVs
Headed To The Lineup. According to the
Detroit Free Press, “Chevrolet is launching a sort of virtual auto show as part of a new online link that allows consumers to shop for a Chevrolet vehicle. Chevy MyWay, which is part of Chevy.com, launched Wednesday as a pilot to train the product specialists
who will work one-on-one with consumers. Chevrolet will ramp up the site over the next few weeks to two months. It is similar to Cadillac Live, which is General Motors’ luxury brand’s digital showroom. There, a product specialist gives a consumer a personalized
tour of Cadillac cars. Chevy MyWay will offer a ‘‘virtual auto show’ function too so that, ‘If there are folks in the Upper Peninsula who can’t make it to Detroit, they can go on it and walk the virtual floor to see the vehicles Chevrolet is displaying,’ said
Megan Soule, Chevrolet spokeswoman. The expansion into the realm of virtual customer relations is the result of the coronavirus pandemic, which caused most major auto shows, including the North American International Auto Show in Detroit, to be postponed.
The Detroit show was pushed back from June 2020 until late September 2021. ‘Physical experience matters’ During a Wednesday business briefing, Chevrolet executives said live auto shows remain important and will not go away. ‘We certainly see a role for that
physical engagement with the product,’ said Steve Majoros, vice president of Chevrolet Marketing. ‘It means a lot for people to be a part of something bigger and the physical experience matters, auto shows matter and vehicle reveals matter.’ Chevy MyWay will
be ‘a big part of our sales arsenal in 2021 and beyond,’ Majoros said.” [Detroit Free Press,
1/6/21
(=)]
GM
Will Build 2 EVs For Honda — Report. According
to E&E News, “General Motors Co. will build two electric vehicles for Honda Motor Co. in the next few years using GM’s new Ultium battery, according to a news report. The outsourcing agreement would be the first concrete step in a previously announced partnership
with Honda. And it would make good on plans by GM, America’s largest automaker, to manufacture EVs for other companies in order to offset the tremendous cost of electrification. Citing two unidentified sources, Automotive News reported Tuesday that within
four years GM would start building two crossover-type vehicles, one for Honda and the other for Acura, Honda’s premium brand. Reached yesterday, neither GM nor Honda would confirm the details. The report is in part significant because it suggests that GM will
expand its electric vehicle production to a fourth plant, in Mexico. GM has operated the Ramos Arizpe Assembly plant since 1981 in the Mexican state of Coahuila, on the border with Texas. Today it produces two traditional gas-powered Chevrolet vehicles, the
Blazer and the Equinox. To date, GM has gone public with the retooling of factory lines at the Detroit-Hamtramck and Orion Township plants in Michigan and its Spring Hill plant in Tennessee. According to Automotive News, the Acura vehicle would be built starting
in 2024 at Spring Hill and would be of similar size to the Cadillac Lyriq, a GM offering that is being assembled there. Production of the Honda variant would start in 2023 at the Mexico plant. The vehicles will be powered by the Ultium battery, which GM is
developing alongside LG Chem Ltd. at a factory still under construction in Lordstown, Ohio. In November, General Motors said it would accelerate its electrification push by upping its investment by a third, to $27 billion.” [E&E News,
1/7/21
(=)]
GM To Produce Honda And Acura Electric Vehicles
In Mexico And Tennessee In 2023-24. According
to Electrek, “GM is set to produce a Honda-branded electric vehicle and an Acura-branded electric crossover in Mexico and Tennessee starting in 2023. GM and Honda have an ongoing relationship around electrification. This includes work on the Cruise Origin,
an electric, self-driving vehicle, which was revealed in San Francisco earlier this year. Honda also joined GM’s battery module development efforts in 2018. Last year, they announced an expansion of their cooperation that would include GM building two new
electric vehicles for Honda using their new Ultium electric powertrain technology. Not much has been known about those two electric vehicles, but we are getting some additional details. One Honda EV and One Acura EV Automotive News reports that the vehicles
will be crossovers, one branded Honda and the other Acura, and they will be produced in Mexico and Tennessee, respectively: Production of the Honda crossover is slated to begin in 2023 in Ramos Arizpe, Mexico, where GM builds the gasoline-powered Chevrolet
Blazer and Equinox, the sources said. Automotive News reported last year that GM likely would retool Ramos Arizpe Assembly for EV production by 2024, but GM has not confirmed the plans. Production of the Acura crossover is scheduled to begin in 2024 in Spring
Hill, Tennessee, according to the sources, who asked not to be identified discussing future product plans. The Honda and Acura models are expected to be roughly the size of the Lyriq, which is scheduled to go on sale in early 2022. Both GM and Honda declined
to comment on the report, but the latter did say that they will release more information about their EV plans later this year.” [Electrek,
1/6/21
(=)]
Electric
Vehicles
The Median Range Of Fully Electric Vehicles Exceeded 250 Miles In 2020.
According to Inside EVs, “According to the Office of Energy Efficiency & Renewable Energy,
for the first time, the median range of all of the electric vehicles offered for sale or lease in the US in 2020 was more than 250 miles per charge. That’s nearly four times what the median range was nine years ago in 2011 when it was only 68 miles per charge.
In fact, back in 2011 the maximum range of any EV was 94 miles per charge, and that was the BMW ActiveE and I had one of them. The Chevy Bolt EV must have been the EV with the median range because the site says it’s 259 miles, which happens to be the Bolt
EVs EPA-rated range. To be clear, the median range isn’t the average range, that would be the mean range. The median is the middle value, so there must be as many EVs with a longer driving range than the Bolt EV, as there are with less range. Tesla vehicles
are leading the pack when it comes to range and owns all of the top range spots including the maximum range leader the Tesla Model S Long Range Plus with a 402-mile EPA-rated range. At the bottom of the pack is the MINI Cooper SE with an EPA range of only
110 miles per charge. In 2021 Tesla will no longer be the only manufacturer to sell EVs with 300+ miles of range. Lucid Motors will begin selling its Air sedan that promises more than 500 miles of range and Rivian will introduce the R1T pickup truck and its
R1S SUV, both capable of delivering more than 300 miles of range. So it’s possible that the median range will go up even further than it was in 2020. This is great news for the industry. While many people may not actually need their car to have 300+ miles
of range, for many, the perception is that it does, and that becomes their reality.” [Inside EVs,
1/6/21
(=)]
What It Takes To Electrify Ride-Hailing.
According to Axios, “There’s good news and bad news when it comes to curbing carbon emissions
from Uber, Lyft and other ride-hailing services, courtesy of new analysis from the Rocky Mountain Institute. Why it matters: Ride-hailing creates new emissions challenges. A number of analyses show that it’s adding to congestion and cannibalizing trips that
otherwise would have happened via mass transit or other low-carbon means (like feet!). But, steps to electrify ride-hailing will have spillover effects that boost EV adoption more broadly. What they found: Current market and tech trends won’t do the trick
when it comes to getting the industry to go electric on a timeline consistent with aggressive emissions cuts. ‘We find that, despite rapidly reducing battery costs, ridehailing electrification is not inevitable by 2030. EVs face many barriers in ridehailing
applications, aside from just high up-front prices.’ Yes, but: The good news is that it’s hardly an impossible nut to crack, RMI concludes, although it will take a village that includes state and local policymakers, utilities and big automakers. How it works:
RMI recommends a wide array of steps to make EV ownership for ride-hailing drivers more accessible and competitive with gasoline vehicles. They include... Improving access to home charging, via steps like power company incentives and building code changes.
That makes EVs more competitive for drivers who’ll miss fewer rides while charging. Implementing programs that lower costs of public charging and encouraging the buildout of public charging infrastructure. Reducing any ‘barriers of entry’ to buying new and
used EVs, such as ‘scrap and replace’ incentives, as well as wider adoption of EV rental programs.” [Axios,
1/6/21
(=)]
Bonus Chart: Rising EV Range.
According to Axios, “Speaking of EVs, the latest installment of the Energy Department’s
‘transportation fact of the week’ series shows the upward march of the driving range of models sold in the United States. Why it matters: Longer range — even if most consumers never need it — is likely to further spur EV adoption. And look for more increases.
For instance, Lucid Motors says the luxury sedan it’s bringing into production this year has a range of up to 517 miles.”
[Axios,
1/6/21
(=)]
International
China Wants To Build A $306 Billion Used-Car Market From Scratch.
According to Bloomberg, “Although China has more than 270 million vehicles on its roads,
only an estimated 15 million secondhand models were sold in 2019. That’s in sharp contrast to places such as Australia, the U.K., and the U.S., where people buy more used cars than new ones. So policymakers, intent on stimulating domestic consumption, want
to change that. China is aiming to double the size of its secondhand-car market to about 2 trillion yuan ($306 billion) by 2025. To get there, Beijing has slashed taxes on used-car dealers, in May reducing the levy to 0.5% from 3%—far less than the 17% tax
on new vehicles. It’s also making it easier for dealers to trade used cars among themselves by classifying a secondhand vehicle without a license plate as a commodity rather than a personal asset, which simplifies the transaction. ‘The used-car-trading business
is about to enter a brand-new chapter,’ says Xiao Zhengsan, secretary general of the China Automobile Dealers Association (CADA). ‘We will see more positive policies in this area.’ The reasons China doesn’t have a sizable used-car market are twofold. First,
China’s overall car market is relatively young—the first foreign joint venture, between Volkswagen AG and SAIC Motor Corp., wasn’t established until 1984, and growth in auto sales to individuals took off only in the early 2000s. Even now, car ownership lags
other developing nations. About 173 of every 1,000 people in China have a car, vs. 433 in Malaysia and 373 in Russia. In the U.S. and Australia, McKinsey & Co. data show, it’s 837 and 747, respectively. Many people in China are still on their first car. The
second reason is largely cultural. In China, buying a first car or first home was typically a big deal, a declaration of social status and a symbol that not only the person but also the whole family had arrived. In recent years that mindset has shifted.” [Bloomberg,
1/6/21
(=)]
Sales Of Battery-Electric Vehicles In Germany Triple In 2020.
According to Reuters, “Sales of battery-electric vehicles in Germany increased three-fold
to more than 194,000 units in 2020, the country’s road-traffic regulator said on Wednesday, citing the appeal of a more diversified product offering and of more reliable technology. ‘E-mobility has become a mainstream feature of the mobile society,’ the president
of German regulator KBA, Richard Damm, said in a statement. Since vehicles with full or partial electric propulsion reached a market share of 22% in the fourth quarter of 2020, the German government was well on its way to reach its goal to have 7 million to
10 million registered electric vehicles on German roads by 2030, he added Battery-electric vehicles made up 1.2% of all registered passenger cars in Germany at the end of 2020, up from 0.5% a year earlier, KBA said.” [Reuters,
1/6/21
(=)]
Brexit Exposes U.K. Car Sector’s Lack Of EV Batteries.
According to Bloomberg, “Britain must build up its electric-vehicle battery industry
in the coming years or it will lose out to the European Union in the intensifying race to build plug-in cars, the country’s automotive trade group warned. The Brexit deal reached late last year gives carmakers and their suppliers little time to localize production,
Mike Hawes, the chief executive officer of the Society of Motor Manufacturers and Traders, said in a briefing with reporters. It’s a tall order for an industry coming off the steepest annual drop in vehicle sales since 1943. Battery packs have to have 30%
of their content sourced from the U.K. or EU at first to trade tariff free as part of the agreement, and those requirements get stricter starting in 2024. Hybrid and electric vehicles also will be subject to rules of origin that start out easier relative to
combustion cars, taking account a lack of local production of batteries now. But they too will get tougher three years from now. The requirements put Britain’s vehicle plants in a bind, Hawes said. Battery packs are heavy and would be costly to ship from plants
in the EU, so it will be key to have factories in the U.K. feeding local car-assembly sites. For now, Britain’s battery making is limited to one site that feeds packs to Nissan Leaf electric hatchbacks in Sunderland, England. The startup Britishvolt Ltd. announced
plans last month to build a factory in northeast England, but the company has released little detail on how it will fund the project. Established battery manufacturers such as LG Chem Ltd. and Samsung Electronics Co. as well as startups including Northvolt
AB are planning much more capacity in the coming years elsewhere in Europe. Germany and France are among the national governments committing billions to support the projects.” [Bloomberg,
1/6/21
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Research and Analysis
Study: Uber And Lyft Drive Greater Car Ownership, Emissions.
According to E&E News, “When ride-hailing companies such as Uber Technologies Inc. and
Lyft Inc. enter cities, vehicle ownership increases, according to research that reached a counterintuitive and controversial conclusion. The study, which was published yesterday in the open-access journal iScience, offers more evidence that ride-hailing is
driving automobile emissions in the wrong direction for the climate. But both Uber and Lyft are disputing the study’s methodology and findings while touting their commitments to cutting tailpipe pollution. The paper’s authors — who hailed from Carnegie Mellon
University, Stanford University, the National Renewable Energy Laboratory and the Lawrence Berkeley National Laboratory — examined vehicle registration data from 2011 to 2017 in several urban areas. They found that after Uber or Lyft began operating in the
areas studied, vehicle registrations increased by 0.7% on average. Larger gains occurred in cities that were considered car-dependent, such as Pittsburgh, St. Louis and Cincinnati. The findings ran counter to the researchers’ expectations, said Jeremy Michalek,
a Carnegie Mellon professor of engineering and public policy and a corresponding author of the study. ‘Going into the study, my assumption was that when Uber and Lyft show up, it gives you an alternative transportation mode, so there are going to be riders
who choose to own fewer vehicles because they have this other way of getting around,’ Michalek said in a phone interview. ‘Even if 0.7% doesn’t sound all that large, I think it’s significant and surprising that it’s an increase at all,’ he said.” [E&E News,
1/7/21
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Exxon’s Indirect Emissions.
According to the Washington Examiner, “The U.S. oil major unveiled for the first time yesterday data on its scope 3 emissions (or the emissions from the sale and use of its products), and it’s an eye-popping number: 730 million tons in 2019 from petroleum
product sales. The scope 3 emissions, the highest of any Western oil company according to Bloomberg, are equivalent to the annual emissions of 188 coal-fired power plants (per the EPA’s greenhouse gas emissions calculator). Exxon is releasing the data as it
has come under increasing pressure from investors and other stakeholders to make available more complete emissions accounting and take more aggressive measures to curb emissions. Just last month, Exxon set short-term targets to cut greenhouse gas emissions,
pledging to reduce the intensity of its emissions of oil and gas production by 15%-20% by 2025 and the intensity of its methane emissions by 45%-50% in five years. In its report yesterday, however, Exxon cautions that scope 3 emissions estimates could be ‘misleading’
and don’t provide ‘meaningful insight’ into how the company is cutting emissions. ‘For example, increased natural gas sales by ExxonMobil that reduce the amount of coal burned for power generation would result in an overall reduction of global emissions but
would increase Scope 3 emissions reported by the Company,’ the oil major said.” [Washington Examiner,
1/6/21
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Opinion Pieces
Analysis: Are We Ready For The Zero-Emission Future?
According to Jim Motavalli in Autoweek, “In September, California Governor Gavin Newsom issued an executive order ‘requiring sales of all new passenger vehicles to be zero-emission
by 2035.’ The next month, New Jersey followed suit, with a climate change report recommending by that same date ‘a rapid and complete transition away from fossil-powered vehicles’ to meet emission reduction goals. The two states have international company.
In the European Union, where passenger cars and vans are 15 percent of carbon emissions, it would be easier to report on the countries that are not intent on phasing out internal combustion. Consider Norway. Its 2017 Transport Plan says that sales of passenger
cars and light vans are to be zero emission (meaning electric or fuel cell) by 2025—just a few years hence. Norway is well on its way, with 400,000 registered electric and plug-in hybrid vehicles by last March—up from 3,347 in 2010. Last September, 60 percent
of the passenger vehicles sold in Norway (which has some of the best incentives in the world) were electric; with hybrids included, the number was 89 percent. Other European countries with plans or proposals to ban gas cars lag well behind that penetration,
but the commitments are nearly as ambitious: Great Britain (2030, with hybrids until 2035), Denmark (2030, with plug-in hybrids until 2035), Iceland (2030), Ireland (2030), Holland (2030), Sweden (2030), Slovenia (2030), Scotland (2032), France (2040) and
Spain (2040). In Asia, we’ve got plans with various levels of determination in China (researching a timetable), India (2030), Japan (2035), Singapore (2040), Taiwan (2040) and Sri Lanka (2040). Let’s not forget Israel, which wants to permit only natural gas
and electric cars after 2030. Is this it, then, for internal combustion? Is the engine of commerce and mobility for more than 100 years finally sputtering to a stop? Not so fast.” [Autoweek,
1/7/21 (+)]
Chad Ellwood
Senior Research Associate
Climate Action Campaign
202.448.2877 ext. 119