White House

 

Vehicle Makers Ramp Up Pitch For EV Tax Credits In Budget Bill. According to InsideEPA, “Automakers and truck manufacturers are ramping up appeals for lawmakers to enact low-carbon tax credits in Democrats’ stalled Build Back Better legislation, declaring the industry needs government support to fully realize its investment plans in electrification and related technologies. The pitches at a Jan. 26 White House meeting provide a show of support for the measures when the broader budget package’s fate on Capitol Hill remains unclear, with companies arguing the incentives are necessary as a climate and economic strategy. The White House has acknowledged the Build Back Better package would have to be slimmed to pass the Senate, though many observers citing the climate provisions in the plan as potentially the most viable. As passed by the House, the bill includes $550 billion for climate efforts, including a package of incentives to spur consumer and commercial electric vehicles (EVs). ‘We are investing significantly . . . [but] we can’t do it alone,’ Cummins CEO Tom Linebarger said during the meeting, which included several company CEOs discussing the Build Back Better plan with President Joe Biden. ‘The tax credits in Build Back Better for hydrogen and clean trucks will play a big role in getting all of us to invest in infrastructure and other things that we need to get this going,’ he added.” [InsideEPA, 1/26/22 (=)]

 

Auto CEOs Give Biden Some EV Love. According to Politico, “The CEOs of Ford and General Motors touted the Build Back Better Act’s, H.R. 5376 (117) expanded tax credits for union-made electric vehicles at a White House meeting on Wednesday, even as the bill sits in limbo amid opposition from foreign automakers and moderate holdout Sen. Joe Manchin (D-WV). GM’s announcement on Tuesday of a $7 billion investment in battery and EV manufacturing facilities in Michigan was a major talking point of the White House ahead of Wednesday’s meeting. ‘For us to make those investments, we need provisions — especially the environmental provisions or the climate provisions [in the Build Back Better Act] — that are going to uncap EV credits,’ GM CEO Mary Barra told the president. ‘We see with EV credits that it does stimulate the market. And to get to the aggressive greenhouse gas reduction goals that we have, getting strong demand [for EVs] is very important.’” [Politico, 1/27/22 (=)]

 

Federal Agencies

 

Efficiency Group Urges EPA To Eliminate EV Multiplier For Heavy Trucks. According to InsideEPA, “Energy efficiency advocates are pressing EPA to propose ‘substantial changes’ to its current heavy-duty vehicle greenhouse gas standards, including elimination of an electric vehicle (EV) credit multiplier, citing concerns that narrower updates would undercut the standards by not fully accounting for a growing electrification push. The call from the American Council for an Energy-Efficient Economy (ACEEE) comes as EPA is soon expected to float tighter GHG limits for some heavy-duty vehicle types -- including school buses, transit vehicles, garbage trucks and day cab tractors -- alongside more stringent nitrogen oxides (NOx) standards for the broader sector starting in model year 2027. The group’s pitch also highlights how vehicle electrification efforts are upending old assumptions underlying prior EPA rules, an industry source says. … The pitch urges EPA to eliminate an EV credit multiplier that the group says undercuts the GHG benefits of existing ‘phase 2’ heavy truck GHG standards by as much as 40 percent, given states’ emerging truck electrification requirements and growing EV markets. Without such changes, these electrification efforts will allow petroleum-fueled trucks’ fuel efficiency to stall or even worsen under current GHG standards, Mersky writes, given state rules that will require as much as 15 to 20 percent EV sales for many categories of heavy-duty vehicles by MY27.” [InsideEPA, 1/26/22 (=)]

 

Defense Contractor Unveils First-Ever Hybrid Combat Vehicle. According to Politico, “Oshkosh Defense yesterday announced production of a silent drive hybrid military vehicle, the first of its kind, as the Biden administration looks to pivot to lower-emitting technologies for military operations. The vehicle, called the eJLTV, would serve the same function as a small combat vehicle, such as a Humvee, which moves troops and small supplies in war zones. But the hybrid vehicle offers significant capabilities that solely gas-powered trucks don’t, according to Oshkosh. The company said new features like silent drive, enhanced fuel economy and the capability to act as a power source give the hybrid an added operational edge. ‘We’re offering our military customers an affordable way to electrify their light tactical wheeled vehicle fleet without compromising the off-road performance or superior protection necessary in combat operations,’ said John Bryant, president of Oshkosh Defense, in a press release. … But Hicks and other DOD officials have acknowledged that adoption of entirely electric combat vehicles will be difficult in the near future. EVs need charging stations to refuel that are usually unavailable in combat zones, and don’t have the torque to power larger vehicles like tanks (Energywire, Nov. 10, 2021) Oshkosh said it focused on developing a hybrid vehicle to avoid the charging pitfalls seen with EVs. The vehicle is able to recharge its electric battery in 30 minutes by using its gas engine.” [Politico, 1/26/22 (=)]

 

Electric Trucks

 

Big Rigs Go Electric. According to Politico, “The Zero Emission Transportation Association published a new white paper Wednesday on medium- and heavy-duty electric vehicles. The group called on Congress to amend the tax code so businesses receive credits for buying electrified large trucks while allocating more grants to expand the charging network for large electric vehicles. They also suggested suspending the excise tax on heavy-duty vehicles to motivate more EV purchases. ‘Federal legislation is required to make the opportunities of MHDEVs outweigh the initial barriers,’ ZETA wrote. ‘Electrifying the MHDV sector cannot wait. Because of their long lives, gasoline- and diesel-powered MHDVs that roll off the production line in 2030 will still be polluting communities in 39 2050 and beyond.’” [Politico, 1/27/22 (=)]

 

Vehicle Manufacturers

 

General Motor Corp.

 

GM: 1 Million EVs In North America Annually By 2025-Inclu7ding 600,000 Electric Trucks. According to Green Car Reports, “General Motors on Tuesday issued an update on its EV plans, including confirmation of two Michigan sites for EV manufacturing and battery production. Confirming an earlier report, GM said in a press release that will spend $4 billion to convert its Orion Assembly plant in Orion Township, Michigan, to build electric pickup trucks. The automaker aims to start production of the Chevrolet Silverado EV and a GMC Sierra sibling at Orion Assembly in 2024. Site work begins immediately, GM said. GM currently builds the Chevrolet Bolt EV and Bolt EUV at the Orion Assembly plant, although production has been paused for much of the past few months as GM prioritizes battery-pack replacements for a recall over fire risk.” [Green Car Reports, 1/26/22 (=)]

 

GM's Electric Plans Come Into Sharper Focus. According to Axios, “Our thought bubble: Here are a few takeaways from the rollout... Clarity on production targets. GM offered two previously undisclosed goals. One is reaching the capacity to build 600,000 electric trucks annually from the plants. The other is more broadly having the capacity to build 1 million EVs annually in North America by 2025. Trucks, trucks, trucks! The announcement is another sign that domestic automakers are making electric pickup trucks — which are massively popular in the U.S. — a key part of their wider EV strategies. The White House wants credit. President Biden touted his work with automakers and policies — such as charging money in the bipartisan infrastructure law — to spur EV manufacturing after GM’s announcement. State competition is hot. Michigan officials are providing $824 million in public incentives for the projects. ‘The announcement is a critical win for Michigan, which lost out on Ford Motor Co.’s $11 billion investment in three battery plants and a new vehicle assembly plant that went to Kentucky and Tennessee,’ AP reports. The big picture: GM plans to invest $35 billion in electric and autonomous technologies in the 2020-2025 period and roll out over two-dozen electric models.” [Axios, 1/26/22 (=)]

 

State Board OKs Giving GM $824 Million To Lure $7 Billion In EV Investments. According to Axios, “General Motors Co. plans to invest $4 billion to add 3 million square feet of manufacturing space to its Orion Assembly plant on Giddings Road in Orion Township for the assembly of full-size electric pickup trucks. General Motors Co. and battery maker LG Energy Solution won tax incentives exceeding $824 million for up to $7 billion in new capital investment expanding GM’s EV and battery production in Michigan.” [Axios, 1/25/22 (=)]

 

General Motors To Invest $154 Million In Lockport Plant To Build Elector Motor Components. According to WGRZ-TV, “General Motors announced Friday they plan to invest $154 million in Western New York to produce electric motor components at their Lockport plant. The money invested will go to renovate the Lockport facility, as well as purchase and install new machinery and equipment to produce the parts. The Lockport plant will produce the stator module, which they say is a key component in an electric motor. ‘GM’s investment in Lockport Components reaffirms our commitment to manufacturing in Western New York and our confidence in this team. They will build a crucial module in our electric motor assembly for our future electric trucks and SUVs,’ said Gerald Johnson, GM executive vice president of Global Manufacturing and Sustainability. ‘This is an excellent example of how we are bringing our workforce along on the journey to an all-electric future while we scale our EV production capacity and maintain a flow of parts for our current vehicles.’ ‘With this major investment at its Lockport facility, General Motors is taking the next steps to advance an all-electric future,’ said New York Governor Kathy Hochul. ‘Not only will this investment provide a boost to Western New York’s economy, but it will play a critical role in supporting our efforts to electrify the transportation sector and reduce climate-altering greenhouse gas emissions and air pollution.’” [WGRZ-TV, 1/27/22 (=)]

 

Burned Out: It’s Looking More And More Certain That The Chevy Bolt Is Dead. According to Electrek, “GM’s troubled Chevrolet Bolt and Bolt EUV models have been out of production for months, and more and more evidence points to the fact that Bolt production at GM’s Orion plant, if it ever does restart, won’t last long. GM revealed a $7 billion plan to take the EV fight to Ford and Tesla yesterday, announcing plans to overhaul its EV and battery cell production lines, create new jobs, and convert its Orion Township assembly plant to produce Ultium platform electric pickup trucks like the new Chevy Silverado EV and upcoming GMC Sierra EV. Notably absent from its big announcement, however, is where the Chevy Bolt and Bolt EUV – the cars currently built at the Orion plant – will be built once the plant’s makeover is complete. The answer to that question may very well be: nowhere.” [Electrek, 1/26/22 (=)]

 

Rivian

 

Rivian Is Ramping Production Of Pickups After Late 2021 Woes. According to Bloomberg, “Rivian Automotive Inc. is ramping up output of its debut electric vehicle toward almost 200 delivery-ready units a week after working through production snags, according to people familiar with the matter, gaining traction after missing its goals in 2021. The pickup maker backed by Amazon.com Inc. had paused production at its Normal, Illinois, plant for about a week around the start of this month for fixes and process improvements, said the people, who asked not to be identified discussing private information. After starting limited production of its R1T pickup in August, Rivian averaged about 50 units a week through the end of December. That rate has fluctuated, with the number dropping significantly lower at points last month amid Covid-19 outbreaks at the plant and supply-chain bottlenecks, the people said. News of the production boost sent Rivian’s shares up as much as 14% Wednesday in New York, the biggest intraday gain since November. The stock was up 9.7% to $65.37 a share at 12:45 p.m. While the accelerated rate this year is a sign of progress, it will depend on Rivian’s success in honing manufacturing processes and navigating the supply-chain disruptions.” [Bloomberg, 1/26/22 (=)]

 

Ford Has No Plans To Sell $8 Billion Rivian Stake. According to Bloomberg, “Ford Motor Co. Chief Executive Officer Jim Farley said there are no plans to sell the company’s stake in electric truck startup Rivian Automotive Inc., but didn’t rule out liquidating an investment that has increased sevenfold. He spoke to Bloomberg’s Emily Chang.” [Bloomberg, 1/26/22 (=)]

 

Rivian’s Georgia Electric Vehicle Plant Sparks Fears Among Neighbors. According to The Detroit News, “Clint Powell’s home in Social Circle, Georgia sits on a two-acre lot, about 300 yards from the property where electric vehicle maker Rivian plans to begin building a giant factory soon. He’s pretty sure it will change his life, but residents like him are still trying to find out how much. Some are exploring if they can stop or limit the project, including throwing up possible zoning roadblocks. ‘I think the size of this Rivian plant really scares a lot of people,’ said Powell, an electrical contractor who has been living in the area for 17 years. For months last year, as local and state authorities negotiated in secret with Rivian, residents were kept in the dark in this largely rural area about 45 miles east of Atlanta. A few days before Christmas, Rivian confirmed it will build a $5 billion factory on a roughly 2,000-acre site here and employ about 7,500 people. Gov. Brian Kemp called it the largest economic-development project in state history. Area residents say they are still struggling to get information even as Rivian plans to break ground in the coming months. Rivian says it will meet with neighbors but hasn’t shared a date. Local authorities canceled a community meeting this past week after residents left an earlier meeting frustrated. Among the unanswered questions: How much new traffic can residents expect? How close will the factory get to property lines? How bright will the lighting be? How will the water supply be protected?” [The Detroit News, 1/26/22 (=)]

 

Tesla Inc.

 

Tesla Delays New Models In All-Out Production Push. According to Politico, “Tesla Inc. portrayed itself yesterday as a highly profitable automaker that will try to make a blizzard of vehicles this year in the face of a nagging chip shortage. CEO Elon Musk said the production push will delay new models that he has hyped for years: a pickup truck, a semitruck and an ultracheap $25,000 model. Those were the takeaways from an end-of-year report that Tesla delivered yesterday, followed by a call where Musk, the world’s richest person, and other executives spoke with investors about the company’s future. The company reported record profits for 2021. Its net income was $5.5 billion, up from $721 million the year before. Fourth-quarter earnings of $2.3 billion beat analysts’ estimates. ‘There should no longer be doubt about the viability and profitability of electric vehicles,’ Tesla said in its update. Tesla delivered more than 308,000 vehicles in the last quarter of 2021 and over 936,000 for the full year of 2021, both records. For the coming year, the Texas-based company conveyed two contrasting messages: It will make as many vehicles as it can, and production is crimped by a computer-chip shortage that isn’t going away.” [Politico, 1/27/22 (=)]

 

Tesla's Musk Sees Cybertruck Production Delayed To 2023. According to Reuters, “Tesla Inc (TSLA.O) has delayed production of its much-awaited Cybertruck, aiming to start in 2023, chief executive Elon Musk said on Wednesday, at a time when rivals are doubling down on efforts to capture the lucrative market. The announcement confirms a Reuters report from earlier this month and comes as the electric-vehicle maker reported record quarterly revenue and 2022 deliveries growing more than 50%, despite supply chain issues. read more Musk, who unveiled the futuristic vehicle in 2019, had already delayed its production from late 2021 until late 2022. Tesla will prepare to launch Cybertruck, Semi and Roadster as well as its humanoid robot next year, he said. ‘We will not be introducing new vehicle models this year. It would not make any sense because we’ll still be parts constrained,’ Musk said on a call with analysts. He said additional products ‘would then require a bunch of attention and resources on that increased complexity of the additional product, resulting in fewer vehicles actually being delivered this year.’” [Reuters, 1/26/22 (=)]

 

Tesla Earnings Bring Focus On Product Plans. According to Axios, “Tesla is expected to report record earnings this afternoon after its highest-ever quarterly and full-year sales, Ben writes. Why it matters: Beyond the Q4 numbers, analysts and investors will be looking for clarity on the still-mysterious timing of planned products like the Cybertruck and the semi-truck. By the numbers: ‘[A]nalysts polled by Bloomberg expect the company to post quarterly profits of $2.30 per share on revenues of $16.6 billion,’ which is far above Q3 levels, Insider reports.” [Axios, 1/26/22 (=)]

 

Tesla Posts Record Profit, Won’t Produce New Models In 2022. According to Associated Press, “Tesla Inc. on Wednesday posted record fourth-quarter and full-year earnings as deliveries of its electric vehicles soared despite a global shortage of computer chips that has slowed the entire auto industry. Although the company predicted it would be able to build 50% more vehicles than it made last year, CEO Elon Musk said the chip shortage would stop the company from rolling out any new models in 2022. That means another delay for the Cybertruck pickup, which was originally scheduled to go on sale last year. Musk also said Tesla isn’t yet working on a promised $25,000 small electric car, but it will. ‘We have enough on our plate right now, quite frankly,’ he said.” [Associated Press, 1/27/22 (=)]

 

Tesla Unveils Fleet Of New ‘Tesla Semi’ Electric Trucks. According to Electrek, “Tesla has quietly unveiled a fleet of new ‘Tesla Semi’ electric trucks as part of its new financial result report. Yet, there’s no word on the status of production and customer deliveries. The situation around the Tesla Semi has been unclear over the last few months. The electric truck has already been delayed several times, as it was originally supposed to be delivered in 2019. While Tesla has been making progress toward bringing its electric semi-truck to low-volume production in Nevada, the automaker confirmed last year that customer deliveries of the Tesla Semi are pushed to 2022. Some new prototypes have been spotted around Gigafactory Nevada over the last few months, and the CEO of Pepsico even said that he was expecting to get his first few Tesla Semi trucks by the end of the year. That didn’t happen, but the first deliveries could be imminent. Tesla surprisingly didn’t comment on the status of Tesla Semi production in its earnings report today, but it did release a new image of a small fleet of four brand new units” [Electrek, 1/26/22 (=)]

 

Check Out Four Tesla Semi At A Megacharging Station. According to Inside EVs, “Tesla has just shared a new photo of four white Tesla Semi Class 8 all-electric vehicles, parked side-by-side. One of the vehicles has a smaller day cab, while the other three are full-blown semis. The location is obviously the world’s first Megacharging station at the Tesla Gigafactory 1 in Nevada, which we can see in the latest drone flyover video. According to unofficial reports, the Semi should be able to charge at up to 1.5 MW at such a station. The company reportedly produces the first Semis at a new facility, located a mile from the main Gigafactory 1. A few vehicles were seen driving around the facility. The manufacturer remains silent about the Tesla Semi progress in its Q4 2021 financial report, although it’s expected that a limited number of vehicles will be deployed later this year. The vehicle status is ‘in development’ and the final production site has not been confirmed.” [Inside EVs, 1/26/22 (=)]

 

Toyota Motor Corp.

 

Toyota AV-Shuttle Bet May Mobility Raises $83 Million. According to Bloomberg, “May Mobility Inc., a self-driving shuttle startup backed by the venture arms of Toyota Motor Corp. and BMW AG, raised $83 million in its largest funding round to date. The Ann Arbor, Michigan-based company operates 25 autonomous vehicles in five cities including Arlington, Texas, and Hiroshima, Japan. Over the next two years, May will use the money to advance its self-driving software to the point that it can remove human safety drivers from shuttles and replace them with remote supervisors who can monitor several vehicles at once. Increasing the ratio of robot cars to humans will allow May to become profitable, executives said. The Series C funding round was led by Mirai Creation Fund II, managed by Sparx Group Co.; new investors included insurance company Tokio Marine Holdings, and Toyota Tsusho Corp., the trading arm of Toyota. The company has raised $166 million in total and says it has provided more than 300,000 revenue-generating rides.” [Bloomberg, 1/26/22 (=)]

 

Analysis & Opinions

 

Not As Good For Work: The Chevy Silverado EV vs. The Ford Lightning. According to Clean Technica, “A few weeks ago, Chevrolet revealed the upcoming Silverado EV. Long story short, it’s a half-ton-ish pickup truck that has a lot of the features that made the Avalanche cool. The midgate gives it a short bed that can act like a long bed (if you’re willing to fold down the rear seats). Beyond that, it looks fairly similar to other upcoming electric trucks like the Ford Lightning and Rivian R1T. Four doors, electric drive, power outlets for worksites, and many other features are promising. There’s just one problem that Forbes got into and that I want to expand upon: it’s a unibody truck. That means it’s not as good for work as the Lightning is going to be.” [Clean Technica, 1/26/22 (=)]

 

Trucks Are Clogging America’s Roads, Delivering Goods And Tearing Up Yards. According to The Wall Street Journal, “Trucks are taking over American roads, fueled by a rise in pandemic online shopping and disruptions to global supply chains. Along the way they’re chewing up pavement, adding to congestion and infuriating residents, who must contend with 18-wheelers and delivery trucks as soon as they pull out of their driveways. They’re also causing headaches for state and local governments that face multibillion-dollar bills to finance road upkeep and expansions. The thousands more delivery trucks on neighborhood streets and tractor trailers on interstate highways are solving one problem by creating another. ‘Folks don’t like them in their neighborhoods,’ said Seth Millican, a transportation expert at the Georgia Chamber of Commerce. ‘But they want the package they order from Amazon and they want it in two days.’ Those strains converge in Atlanta’s Riverside neighborhood, home to Dustin Hillis, a city council member, who has spent years trying to keep tractor trailers off its residential streets. ‘Not a week goes by that I don’t get complaints about trucks running over street signs, stop signs, electrical poles, cutting through people’s yards,’ he said.” [The Wall Street Journal, 1/26/22 (=)]

 

 

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