Cars Clips: February 7, 2024

 

 

White House warns that Chinese EVs could collect your data and send it back to China — “The US-China trade war heats up as the Biden administration has signaled a warning that electric vehicles from China could pose a ‘significant national security risk’ in that the huge amount of data they collect could be sent to China. US Commerce Secretary Gina Raimondo said that electric and autonomous vehicles are ‘collecting a huge amount of information about the driver, the location of the vehicle, the surroundings of the vehicle,’ reports Bloomberg. ‘Do we want all that data going to Beijing?’ The White House is also preparing a separate executive order to prevent foreign adversaries from gaining access to ‘highly sensitive’ personal data. The US has imposed extra tariffs on Chinese EVs since 2019, with US officials having long warned that China poses a threat in data security, and the new measure could have broad implications across a number of industries, the report said.” [Electrek, 2/6/24 (=)]

 

 

 

Energy secretary talks electric vehicles at Las Vegas auto convention — “The federal government is promoting electric vehicles with incentives, and wants EVs to account for half of new vehicle sales by 2030, U.S. Secretary of Energy Jennifer Granholm said recently at the National Automotive Dealers Association show in Las Vegas. The United States, however, only produces a small fraction of the raw materials needed to make electric cars and trucks, she noted. Chinese enterprises dominate the sector, she said. Other countries, such as Canada and Australia, can also mine and process minerals needed for electric vehicle batteries on a much larger scale compared to the U.S. Granholm said. ‘Of course we would love to be totally independent, but we have to be realistic about what we are capable of doing in a quick turnaround fashion and what we can strive for in’ the longterm, Granholm said. She said the federal government is offering 30% tax credits for domestic renewable energy investments, and the office in charge of the loan program is targeting companies that can help build supply chains stateside.” [Las Vegas Sun, 2/6/24 (=)]

 

 

 

EV, Mining Interests Renew Push To Include Material Costs In Key Tax Credit — “The electric vehicle (EV) and mining sectors are intensifying calls for the Treasury Department to revise its proposal for implementing a tax credit for manufacturing battery components and other items to ensure eligibility of costs for certain ‘materials’ and extraction, as groups begin to lay out suggestions for how Treasury might do so. The push comes ahead of a Feb. 13 deadline for groups to comment on proposed IRS rules for implementing the Inflation Reduction Act’s (IRA) ‘section 45X’ advanced manufacturing credit, with Treasury officials citing concerns about fraud or double-counting as a rationale for excluding the costs at issue, even though they sought input about how they might reconsider that position. The groups’ calls also echo concerns from mining-state Democrats that the proposal would pose a barrier to developing a robust domestic supply chain for batteries used in EVs as well as energy storage projects. ‘Collectively, the undersigned organizations have serious concerns regarding the proposed guidance,’ roughly four dozen groups and companies write in a Feb. 5 letter to Treasury led by the Zero Emission Transportation Association (ZETA) and National Mining Association. Some of the other signatories include General Motors, Tesla, and the Battery Materials & Technology Coalition.” [Inside EVs, 2/6/24 (=)]

 

EV, Mining Interests Renew Push To Include Material Costs In Key Tax Credit — “The electric vehicle (EV) and mining sectors are intensifying calls for the Treasury Department to revise its proposal for implementing a tax credit for manufacturing battery components and other items to ensure eligibility of costs for certain ‘materials’ and extraction, as groups begin to lay out suggestions for how Treasury might do so. The push comes ahead of a Feb. 13 deadline for groups to comment on proposed IRS rules for implementing the Inflation Reduction Act’s (IRA) ‘section 45X’ advanced manufacturing credit, with Treasury officials citing concerns about fraud or double-counting as a rationale for excluding the costs at issue, even though they sought input about how they might reconsider that position. The groups’ calls also echo concerns from mining-state Democrats that the proposal would pose a barrier to developing a robust domestic supply chain for batteries used in EVs as well as energy storage projects. ‘Collectively, the undersigned organizations have serious concerns regarding the proposed guidance,’ roughly four dozen groups and companies write in a Feb. 5 letter to Treasury led by the Zero Emission Transportation Association (ZETA) and National Mining Association. Some of the other signatories include General Motors, Tesla, and the Battery Materials & Technology Coalition.” [Inside EPA, 2/6/24 (=)]

 

 

 

Stop Wearing Vision Pro Goggles While Driving Your Tesla, U.S. Says — “Videos being shared across social media this week depict an almost dystopian, futuristic scene: drivers of Teslas in Autopilot mode while wearing Apple Vision Pro headsets, seemingly unaware of the road in front of them. The videos led federal transportation officials to issue warnings. But are people really mindlessly riding around in Teslas in Autopilot mode, wearing Apple’s futuristic new goggles? Or is it all just a bit? Part of a never-ending cycle of people doing silly things for clicks, likes, views and clout? The new goggles have a feature that merges digital apps and one’s surroundings into one immersive space, and videos of people wearing them in strange settings have started to crop up across the internet since they were released on Feb. 2. Several of the videos taken in cars appear staged, and in many, it is clear that someone other than the driver is recording. The videos are not widespread. Still, they seemed reckless enough for Pete Buttigieg, the transportation secretary, to weigh in on social media.” [The New York Times, 2/6/24 (=)]

 

Viral Video Of Tesla Driver Wearing Apple Vision Pro Headset Leads To Buttigieg Warning — “Viral footage of a Tesla driver wearing an Apple Vision Pro headset has sparked concern within the Biden administration, leading to a warning from Transportation Secretary Pete Buttigieg about proper safety precautions on the road. ‘Reminder—ALL advanced driver assistance systems available today require the human driver to be in control and fully engaged in the driving task at all times,’ Buttigieg wrote on X, the platform formerly known as Twitter. His post came as a reply to a video that garnered more than 25 million views. It purported to show a driver scrolling with the Apple Vision Pro headset while operating a Tesla vehicle, instead of steering the wheel. Tesla vehicles are not fully automatic and still require a driver to keep both hands on the steering wheel while driving. Apple also warned users to ‘never use Apple Vision Pro while operating a moving vehicle, bicycle, heavy machinery, or in any other situations requiring attention to safety.’” [The Hill, 2/6/24 (=)]

 

Federal Highway Admin. (FHWA)

 

FHWA Awards Grants to Develop Charging, Hydrogen Stations — “Eyeing heavy truck emissions, the Federal Highway Administration has awarded nearly half of $622.57 million in new infrastructure grants to megawatt and kilowatt charging and hydrogen fueling projects in California, Washington, Colorado, Texas and New Mexico. Charging and Fueling Infrastructure Program grants will be given to 47 applicants in 22 states for strategic deployment of urban and rural public electric vehicle charging and alternative fuel infrastructure. The funding was split with $311 million going to 36 community projects (schools, parks, libraries and multifamily housing). The remaining funds will be spent on 11 alternative fuel corridor ventures located along key roadways to ‘fill gaps in the core national charging and alternative-fueling network,’ according to the U.S. Department of Transportation.” [Transport Topics News, 2/6/24 (=)]

 

 

 

AP | Postal Service, once chided for slow adoption of EVs, announces plan to cut greenhouse gas emissions — “The U.S. Postal Service announced sweeping plans Tuesday to reduce greenhouse emissions by diverting more parcels from air to ground transportation, boosting the number of electric vehicles, cutting waste sent to landfills and making delivery routes more efficient. Postmaster General Louis DeJoy described a mix of environmental initiatives and cost-cutting business practices that together would combine to reduce the Postal Service’s contribution to planet-warming greenhouse gas emissions by 40% over five years, meeting the Biden administration environmental goals in the process. ‘We reduce costs, we reduce carbon. It’s very much hand in hand,’ said DeJoy, who acknowledged being impatient with the pace of change, including the rollout of electric vehicles. All told, the Postal Service intends to save $5 billion by consolidating smaller facilities into larger sorting and processing hubs that eliminate thousands of trips a day, along with operational changes such as modernizing facilities and reducing outsourced work, officials said.” [KFOR-TV, 2/6/24 (=)]

 

USPS Outlines Plan To ‘Aggressively’ Reduce Carbon Footprint By 2030 — “The Postal Service is planning to significantly reduce its carbon footprint by the end of the decade, as it rolls out a majority-electric fleet and consolidates facilities. USPS, by 2030, expects to cut carbon emissions from fuel and electricity by 40% and reduce emissions from contracted services by 20%. Postmaster General Louis DeJoy told reporters on Tuesday these plans to ‘aggressively reduce our greenhouse gas emissions,’ will give USPS an advantage over its competitors, as it looks to grow its package business. ‘Through our efforts, the Postal Service will be the most sustainable way to mail and ship,’ DeJoy said.” [Federal News Network, 2/6/24 (=)]

 

 

 

BMW Group

 

The BMW I5 Touring Is The Electric Wagon You Want But Can't Have — “The BMW i5 is the all-electric version of the world-famous 5 Series sedan, and now–for the first time–there’s also a battery-powered version of the 5 Series wagon. Plus, the German company is offering a plug-in hybrid version of said wagon both in rear-wheel drive and all-wheel drive guises. Bet let me get to the bad stuff first. Neither the BMW i5 Touring nor the 5 Series Touring plug-in hybrid is coming to the United States, with a previous press release shredding Americans’ dreams of ever getting their hands on the electrified wagons with the following sentence: ‘The unique combination of sporty elegance, modern functionality, and locally emission-free driving pleasure is developed specifically for the automotive markets in Europe as well as in Japan and Taiwan.’ BMW is referring to all the powertrain options available for the 5 Series Touring, which include plug-in hybrid gasoline options, mild-hybrid diesel burners, and all-electric trims. That said, it doesn’t mean we can’t dream–an all-electric wagon, especially one that’s branded as a premium product, is somewhat of a unicorn in the automotive industry.” [Inside EVs, 2/6/24 (~)]

 

Cummins, Inc.

 

Emissions-Rigging Fine Takes Huge Bite From Cummins’ Q4 Earnings — “An emissions-rigging settlement wiped nearly $14 per share from fourth-quarter profits at Cummins Inc. The engine maker pointed to softer results this year as the North American truck equipment market cools. Without the second-largest fine ever assessed for federal Clean Air Act violations, Cummins reported record results for all of 2023. Cummins on Tuesday reported a net $1.4 billion loss in the quarter after setting aside $2.04 billion, or $13.76 per fully diluted share. The company admitted no wrongdoing in the use of emissions-defeating software in about 1 million Ram pickup trucks. In Q4 2022, Cummins reported net earnings of $631 million, or $4.43. A 4 1/2-year-old investigation wrapped up in December with a strong admonishment of the company by U.S. Attorney General Merrick Garland. The $1.675 billion civil fine was the largest ever assessed. It ranked second only to a $2.8 billion criminal fine against Volkswagen AG in 2017.” [FreightWaves, 2/6/24 (=)]

 

Emissions Sensors Settlement Leaves Cummins Nursing Q4 Loss — “A December settlement between Cummins Inc. and the federal government pushed the engine and component manufacturer’s results into the red in the fourth quarter of 2023, it said Feb. 6. Columbus, Ind.-based Cummins posted a loss of $1.4 billion, or $10.01 per diluted share, in the quarter compared with a profit of $631 million, or $4.43 per diluted share, in the same period a year earlier. Results for the most recent quarter took a hammering from a $2.04 billion penalty Cummins agreed to pay — while admitting no wrongdoing — to resolve a Department of Justice probe into devices that bypassed emissions sensors installed on engines in hundreds of thousands of Class 2B and Class 3 trucks. Class 2 is subdivided into 2A (6,001-8,500 pounds) and 2B (8,501-10,000 pounds), which are mostly pickup trucks.” [Transport Topics, 2/7/24 (=)]

 

Ford Motor Co.

 

Ford Beats Q4 Earnings Estimates Despite EV Pullback, Hybrid Shift — “Ford reported its fourth-quarter earnings Tuesday after the market, beating Q4 revenue and profit estimates. The automaker expects the momentum to continue in 2024 despite pulling back EV investments. Ford’s fourth-quarter EV sales Ford sold a record 25,637 EVs in the last three months of 2023 (+24% YOY), edging out rival GM. The F-150 Lightning topped Rivian’s R1T to become the best-selling electric pickup of the year, with 24,165 units handed over. The Mustang Mach-E was the second best-selling electric SUV in the US behind Tesla’s Model Y with 40,771 models sold, also a record. Ford’s E-Transit was the best-selling electric van, with 7,672 units sold last year, up 18% from 2022. Despite the growth, Ford has scaled back EV initiatives. Ford’s CFO, John, said the company is ‘slowing down several investments,’ including around $12 billion in EV spending last year.” [Electrek, 2/6/24 (+)]

 

AP | Ford Posts $523 Million 4Q Net Loss On Accounting Charge For Pensions But Beats Analyst Estimates — “Ford Motor Co. on Tuesday reported that it swung to a net loss in the fourth quarter due to a large accounting charge on pension plans and the effects of a six-week strike at multiple factories by the United Auto Workers union. The Dearborn, Michigan, automaker posted a $523 million loss from October through December versus a $1.26 billion profit for the same period a year ago. Excluding one time items, the company made 29 cents per share, beating Wall Street estimates of 12 cents, according FactSet. Revenue for the period was $46 billion, up 4% from a year ago, beating estimates of $43 billion. Ford reported a $1.7 billion noncash accounting loss during the quarter on remeasurement of pension and other post-retirement employee benefits. The company predicted it would have pretax earnings this year in a range of $10 billion to $12 billion.” [The Washington Post, 2/6/24 (=)]

 

Ford Beats Expectations, Sees More Profit Growth Ahead — “Ford Motor Co., buffeted by electric vehicle losses and rising labor costs, posted fourth quarter results that soundly beat expectations and forecast higher profits in 2024. The automaker Tuesday announced adjusted earnings per share of 29 cents, more than double the 13 cents analysts expected on average. Fourth quarter revenue of $46 billion surpassed the $40.3 billion analysts expected. ‘We are nowhere near our earnings potential,’ Ford Chief Executive Officer Jim Farley told analysts on a conference call. As electric vehicle sales slow, Farley is attempting to thread the needle between scaling back the company’s EV spending by $12 billion while dialing up output of traditional internal combustion engine models, which generate profits needed to fund future growth.” [Bloomberg, 2/6/24 (=)]

 

Ford Earnings Report Shows Revenue Is Up By $2B Despite UAW Strike Cost Of $1.3B — “Ford Motor Co. on Tuesday reported 2023 adjusted earnings before interest and taxes (EBIT) of $10.4 billion, compared with $10.4 billion in 2022 and $10 billion in 2021. For the fourth quarter alone, Ford reported EBIT of $1.1 billion compared with $2.6 billion a year ago. For 2023, the Dearborn automaker reported revenues of $176.2 billion, up from $158 billion in 2022. For the fourth quarter, Ford reported revenues of $46 billion compared with $44 billion a year ago. All of the gains have been made despite a hard-hitting UAW strike that crippled key Ford plants that built high-profit vehicles including Ford Broncos and Super Duty pickups and cost $1.3 billion.” [Detroit Free Press, 2/6/24 (=)]

 

Ford Posts Q4 Loss But $4.3B Profit In 2023 — “Ford Motor Co. said Tuesday it lost $526 million in the fourth quarter of 2023 on increased revenue of $46 billion because of changes to pensions and post-retirement benefits following the United Auto Workers’ 41-day strike at the company. For the full year, the Dearborn automaker recorded $4.3 billion in net income, a 2.5% margin, on $176.2 billion in revenue, up 11% year over year and surpassing expectations. The profit was up from a $2 billion net loss in 2022 — results that had been driven by a mixture of execution issues, supply-chain woes and costs associated with lost investments. Wall Street analysts, according to Yahoo Finance, on average were projecting the Dearborn automaker to record $165.21 billion in revenue. The Blue Oval’s shares in post-market trading were up 6.37% to $12.85 per share.” [The Detroit News, 2/6/24 (=)]

 

Ford Reports Quarterly Loss But Says Sales Grew — “Ford Motor said it lost $526 million in the final three months of 2023, mainly as a result of special charges related to its employee pension programs and the reorganization of some of its overseas operations. The automaker said its fourth-quarter revenue rose to $46 billion, from $44 billion a year earlier, thanks to strong sales of internal-combustion vehicles and light commercial trucks. The division of the company that makes gasoline and hybrid vehicles earned $813 million before interest and taxes in the fourth quarter, and its commercial vehicle division made $1.8 billion. The unit that makes electric vehicles lost $1.6 billion. John Lawler, Ford’s chief financial officer, said the company’s profit in the fourth quarter was also hurt by an extended strike by the United Automobile Workers union, and higher labor costs stemming from the new contract it signed with the U.A.W.” [The New York Times, 2/6/24 (=)]

 

Ford’s EV Losses — “Ford lost $4.7 billion on its electric vehicle business last year, including $2.9 billion in the second half of the year as consumer demand fell, the automaker said Tuesday. CEO Jim Farley attributed the losses to price cuts across the industry led by Tesla, and acknowledged the company had been overly optimistic on EV demand coming out of 2022. It expects EV losses to balloon to more than $5 billion in 2024. — Still, Farley said the transition to EVs remains ‘inevitable in our eyes’ and he believes Ford is in ‘better shape than any other brand in this transition’ as it develops its second generation of EV models, which he said will not launch until they are profitable. He added that a small ‘skunkworks’ team has been working for two years to develop a new low-cost EV platform to rival Tesla’s Model 2.” [Politico, 2/7/24 (=)]

 

Ford Slows EVs, Sends A Truckload Of Cash To Investors — “Ford Motor (F.N), opens new tab shares jumped on Tuesday after the automaker said it will return more cash to shareholders, starting with an extra 18 cents-per-share dividend in the first quarter, joining General Motors (GM.N), opens new tab in giving investors more of the cash spinning from North American combustion trucks. Ford forecast $10 billion to $12 billion in pretax profit for 2024, after earning $10.4 billion before taxes last year. Profit from Ford’s Pro commercial vehicle business and Ford Blue combustion vehicle units offset steep losses from Model E electric vehicle operations. Ford is slowing investment in new EV capacity to match slower demand following a seismic change in EV pricing over the past year, Ford executives told analysts. The next generation of Ford EVs will be launched ‘only when they can be profitable,’ Marin Gjaja, head of the Model E EV business, told analysts Tuesday.” [Reuters, 2/7/24 (=)]

 

Ford UAW Employees Get Bigger Profit-Sharing Checks For 2023 Despite Strike — “As a result of Ford Motor Co.’s 2023 profits in the U.S., about 58,000 U.S. hourly workers will receive a profit-sharing checks averaging $10,416, Ford Chief Financial Officer John Lawler said Tuesday. Temporary Ford employees will be eligible for profit-sharing for the first time, and the checks up are from $9,176 a year ago. The before-tax checks are based on a formula involving hours worked. Ford said workers should see checks of various sums in mid-March, according to Ford spokesman T.R. Reid. General Motors announced last month profit-sharing checks of $12,750 last month for its 42,300 hourly workers.” [Detroit Free Press, 2/6/24 (=)]       

 

Ford Profit Sharing: Here's How Much UAW Members Will Get For 2023 — “Ford Motor Co. said Tuesday it will pay profit-sharing bonuses on average of $10,400 to hourly autoworkers in the United States for 2023. The payout is a reflection of a new profit-sharing formula negotiated last year during contract talks with the United Auto Workers. Since the Dearborn automaker no longer reports financial results for North America, a new formula calculates the payout based on the company’s global earnings figures, including Ford Credit. Ford recorded an adjusted operating income of $10.4 billion in 2023, which was flat year-over-year. For the first time, temporary employees are eligible for profit sharing. Before the new contract, 2-3% of Ford’s approximately 58,000 U.S. autoworkers were temps, though Ford agreed upon ratification to roll over temps with at least three months of experience. Autoworkers can expect to receive the payouts on March. 14.” [The Detroit News, 2/6/24 (=)]

 

How Ford’s F-150 Lightning, Once In Hot Demand, Lost Its Luster — “In July Michael Puglia drove home with what seemed like the coolest vehicle he’d ever own — a Ford F-150 Lightning electric pickup truck. It was big enough to haul around his children and all their hockey gear. He’d never have to gas it up, and the ride was exhilarating. ‘It’s unbelievably fast and responsive,’ said Mr. Puglia, a pediatric anesthesiologist in Ann Arbor, Mich. ‘The technology is amazing.’ But as cooler weather arrived, the truck’s range — or how far it could travel before needing to be plugged in — dropped significantly. Once, after Mr. Puglia had driven 35 miles to an ice rink, his range fell by 73 miles. Another time, a 60-mile jaunt reduced his range by 110 miles. Several trips to the dealership for software updates didn’t fix the problem, leaving Mr. Puglia wondering whether he should keep the $79,000 truck.” [The New York Times, 2/6/24 (=)]

 

Ford Teases Not-So-Secret Affordable Electric Vehicle, Again — “The Intertubes lit up on February 6 when word leaked out that the Ford Motor Company has assigned a secret task force to develop an affordable electric vehicle, aimed at competing with the low-cost lineup of Tesla and various Chinese auto makers. However, the secret is not so secret. Ford set the stage back in 2021, when it described the newly minted Ford+ plan as ‘the company’s biggest opportunity for growth and value creation since Henry Ford scaled production of the Model T.’ CleanTechnica’s Jennifer Sensiba took note of the Ford+ plan in May of 2022, which she described as ‘Ford’s plan to make the transition to EVs.’ That’s the shorter version. The longer version is that Ford will continue to design, produce, and sell new gasmobiles through its newly designated Ford Blue division. If all goes according to plan, profits from Ford Blue will finance the growth of a separate division dedicated to electric vehicle development, called the Model e division. There’s nothing secret about the Model e division. In a press release dated March 2, 2022, Ford described exactly how it fits into the Ford+ plan.” [Electrek, 2/6/24 (+)]

 

General Motor Co. (GM)

 

GM Signs $18.6 Billion EV Cathode Supply Deal With LG Chem — “LG Chem Ltd. agreed to provide 24.7 trillion won ($18.6 billion) of cathode materials to General Motors Co. under a long-term supply deal the companies inked Wednesday. The agreement will see LG provide more than 500,000 tons of cathode materials to the US carmaker from 2026. The materials will be produced from LG’s plant in Tennessee and GM should be able to make around 5 million electric cars using them, according to a statement from the South Korean company. The cathode arrangement is part of a longer-term supply commitment between the two firms, with the Korean chemicals giant pledging to provide the Detroit-based company with some 950,000 tons of cathodes through the end of the decade. The pact was signed during GM Chief Executive Officer Mary Barra’s visit to Seoul this week, where it was reported that she’s also meeting with Korean battery maker Samsung SDI Co.” [Bloomberg, 2/7/24 (=)]

 

South Korea's LG Chem Signs $19 Bln Cathode Supply Deal With General Motors — “South Korea’s LG Chem (051910.KS), opens new tab on Wednesday said it has signed a deal worth 24.7 trillion won ($18.61 billion) to supply electric vehicle (EV) battery cathodes to General Motors (GM.N), opens new tab from this year to 2035. The South Korean petrochemicals giant plans to supply more than 500,000 tonnes of materials to make cathodes, enough to power about 5 million EVs, LG Chem said in a statement. LG Chem is currently building a battery cathode plant in the U.S. state of Tennessee, which is slated to start mass production in 2026.” [Reuters, 2/7/24 (=)]

 

GM To Re-Introduce Plug-In Hybrids. What Does That Mean, Exactly? — “During a conference call with investors in January, General Motors CEO Mary Barra put a brave face on the fact that the company’s transition to electric vehicles is off to a rocky start. It has stopped making the Bolt — the least expensive EV in America — at precisely the same time as the demand for lower priced electric cars is at its highest. Its new Blazer EV got launched with so many software issues, it was literally undriveable. But not to worry, Barra said. GM was going to focus on building big, hulking gas hogs and ease back into the EV space with plug-in hybrids. ‘We’re building on a foundation that our customers love,’ Barra explained. The important internal combustion engine (ICE) sector of trucks and SUVs will continue to prop up the company until the full transition to EVs is at hand, she said. ‘We thought we’d be farther along’ she told Bloomberg Television in an interview, adding that hybrids will be added to ‘key segments,’ without specifying which models or how soon.” [CleanTechnica, 2/6/24 (=)]

 

Hyundai Motor Corp.

 

Kia Has A Plan To Guarantee EV Resale Value Overseas, Like The EV6 And EV9 — “Kia plans to fight falling EV resale prices in Australia with a new guaranteed future value program. New electric models, including the EV6 and Kia EV9, will be part of the plan. Kia wants to boost EV resale value Some of the earliest EVs in Australia have lost some of their battery capacity, which is believed to be dragging used-vehicle prices down. Kia’s latest idea will help counter it. The new program, which will be introduced later this year, will guarantee future Kia EV values. According to CarsGuide, Kia is also working on cell-by-cell battery reconditioning. Together, it should help ease falling resale prices. ‘We don’t have a Guaranteed Future Value on any of our products at this point in time, and that’s where we need to be,’ Kia Australia CEO Damien Meredith said. He explained, ‘We’re working away,’ but ‘there’s still plenty of work to do.’ Although the full details have yet to be revealed, Kia says it will only apply to new purchases. The program will not apply to existing EV owners and will be part of Kia’s new-car finance plan.” [Electrek, 2/6/24 (+)]

 

Sub-$22,000 Hyundai Casper Ev Heads To Europe Because Of Course It Does — “First, there was the Chinese-made Dacia Spring, and then came the Citroen e-C3. These are some of the cheapest all-electric cars you can get your hands on in Europe, but the wave of affordable electron-powered vehicles is just getting started because Hyundai is getting ready to play the game on the Old Continent. Say hello to the Hyundai Casper EV, shown in these photos without a charging port because the car isn’t exactly ready for prime time but will be by the end of this year, according to reports from Automotive News Europe and Auto-Moto.com. The Casper, which is a tiny four-door urban runabout, has been manufactured by Hyundai in South Korea since 2011 with a 1.0-liter gasoline engine, but it will get an electric powertrain for the European market, according to Hyundai France boss Lionel Keogh, who said that the pint-sized EV will be priced around 20,000 Euros, which is about $21,500 today. This includes VAT, which we don’t have in the United States.” [Inside EVs, 2/6/24 (=)]

 

Tesla, Inc.

 

Tesla (Still) #1 In World BEV Sales — 2023 World EV Sales Report — “Following up on our stories about the best selling plugin vehicles in the world and the automotive brands that sell the most plugin electric vehicles in the world, we’re now closing out the 2023 World EV Sales Report series with a look at the automotive groups or alliances that sell the most plugin electric vehicles and that sell the most pure 100% electric vehicles. If we gather plugin vehicle sales by automotive group, BYD (22% share of the plugin vehicle market) repeated the 2022 title win, with an 8.8% share (or over 1.2 million unit) advantage over Tesla (13.2% share). BYD gained 0.1 percentage point compared to Q3 2023, and a significant 3.6% points compared to a year ago, while Tesla dropped 0.8% compared to Q3 and gained 0.2% compared to 2022. These trends say that BYD has probably already peaked when it comes to market share growth, which is actually healthy for the plugin market, as a balanced and competitive market should not have players with over 20% share.” [CleanTechnica, 2/6/24 (+)]

 

Tesla Sold Only One Car In Korea In January — “Tesla Inc. sold just one electric vehicle in South Korea in January as a raft of headwinds, from safety concerns to price and a lack of charging infrastructure, weigh on demand. The company’s sale of a solitary Model Y SUV was its worst month since July 2022, when the Austin, Texas-based automaker sold no vehicles at all, according to data from Seoul-based researcher Carisyou and the Korean trade ministry. Across all carmakers, the number of new EVs registered in Korea fell 80% in January from December, Carisyou data show. Carmakers are facing a slowdown in enthusiasm for EVs in South Korea as higher interest rates and inflation prompt consumers to rein in spending, while concerns about battery fires and a dearth of fast chargers are also damping demand. Tesla’s low-selling January marks a major shift for the brand as its China-made Model Y was one of the top sellers last year.” [Bloomberg, 2/6/24 (=)]

 

Toyota Motor Corp.

 

Toyota To Invest $1.3B To Build EVs At Its Kentucky Plant — “Toyota just announced a $1.3 billion investment in its Kentucky factory to build EVs, including its three-row electric SUV for the US market. The investment supports the previously announced future battery EV assembly at Toyota Kentucky. It’s also adding a battery pack assembly line, with batteries being supplied by Toyota Battery Manufacturing North Carolina. Kerry Creech, the president of Toyota Kentucky, said, ‘Today’s announcement reflects our commitment to vehicle electrification and further reinvesting in our US operations.’ In October 2023, Toyota announced it would invest an additional $8 billion in its North Carolina EV battery plant, which it first announced in December 2021, to make batteries for its EVs and PHEVs. It’s expected to be ready next year.” [Electrek, 2/6/24 (=)]

 

Toyota Boosts Spending On EV Production In US By $1.3 Billion — “Toyota Motor Corp. is boosting investment at a plant in Kentucky by $1.3 billion as it prepares to start US production next year of a three-row, all-electric SUV. The Japanese automaker said Tuesday the added spending is earmarked for its first US-made EV and other unspecified battery-powered models, and includes money for a battery pack assembly line at the factory. The cells for those packs will be supplied by a new Toyota-owned facility in North Carolina, it said. ‘Today’s announcement reflects our commitment to vehicle electrification and further reinvesting in our US operations,’ Kerry Creech, president of Toyota Kentucky, said in a statement. Toyota has taken a more cautious approach to introducing fully electric vehicles than peers such as Volkswagen AG and General Motors Co. Its electrification efforts have been focused mainly on hybrid gas-electric models. The company currently sells two EVs in the US — the bZ4X and Lexus RZ 450e — both manufactured in Japan.” [Bloomberg, 2/6/24 (+)]

 

Toyota Will Build A Three Row Electric SUV In Kentucky — “Toyota hasn’t veered away from its obsession with hybrid vehicles, but it will be damned if it will let Hyundai and Kia have the market for three row battery electric cars all to themselves (The Rivian R1S is also a three row electric SUV). The Japanese company announced on February 6, 2024 that it will invest $1.3 billion to prepare its Georgetown, Kentucky factory for production of a new three row battery electric SUV designed for US consumers. The extra capital pushes Toyota’s total investment into the factory to nearly $10 billion and is the latest example of the automaker’s renewed pledge to electrification, according to TechCrunch. Toyota provided no details about the car, but if you imagine a big box on wheels with a Toyota or Lexus badge on it, you probably won’t be too far off base.” [CleanTechnica, 2/6/24 (=)]

 

Toyota Steps Up Investment For Three-Row Electric SUV Built In Kentucky — “Toyota announced an additional $1.3 billion of investment at its Georgetown, Kentucky plant today. The brand said in a statement that the investment will be earmarked for assembling its upcoming three-row electric SUV for the U.S. market. The new investment will also support the construction of a new battery assembly line. This complements Toyota’s plans to assemble batteries at its North Carolina facility. With this latest investment, Toyota’s commitment to electrification in the U.S. amounts to nearly $10 billion. Much of that investment has gone into developing the upcoming Kia EV9 challenger, which Toyota says will enter production by 2025. At Toyota’s Beyond Zero summit in 2021, the automaker announced its plan to launch 30 BEVs globally by 2030. One of those concepts was labeled ‘bZ Large SUV.’ The new model for North America is likely related to that and is rumored to be named the bZ5x.” [Inside EVs, 2/6/24 (=)]

 

Toyota Boosts Investment In Georgetown EV Plant To $1.3 Billion — “Toyota announced an additional expansion to its manufacturing plant in Georgetown, bringing planned new investment in the Kentucky facility to $1.3 billion, as the Japanese automaker steps up production of electric SUVs for U.S. customers. The automaker announced last year it was putting $591 million into the Scott County plant’s conversion and retaining 9,000 employees at the facility, which has manufactured millions of cars since 1988. A Toyota press release on Tuesday said the increased investment will add another ‘battery pack assembly line’ to the facility with batteries being supplied from a Toyota plant in North Carolina. Toyota Kentucky President Kerry Creech in a statement said the increased investment ‘reflects our commitment to vehicle electrification.’ ‘Generations of our team members helped prepare for this opportunity, and we will continue leading the charge into the future by remaining true to who we are as a company and putting our people first for generations to come,’ Creech said.” [Kentucky Lantern, 2/6/24 (=)]

 

Toyota Hikes Annual Profit Forecast After Q3 Beats Expectations — “Japan’s Toyota Motor (7203.T), opens new tab raised its full-year operating profit forecast by nearly 9% on Tuesday, after its third-quarter earnings raced past analysts’ estimates thanks to a weaker yen and strong sales of high-margin cars and hybrid vehicles. Toyota shares surged after the announcement early losses, and closed 4.8% higher - the biggest one-day gain in nearly eight months. The improved outlook from the world’s best-selling automaker contrasts with a downbeat forecast from many rivals that have warned of tepid sales growth and announced output cuts amid high interest rates and slowing demand for electric vehicles. The Japanese automaker, a laggard in battery-powered EVs, is expected to outperform competitors this year, helped by robust demand for hybrid vehicles, which it pioneered more than a quarter century ago with the Prius model. Toyota is likely to benefit from relatively higher margins on hybrids and the fact that some models tend to be costlier, said analyst Seiji Sugiura from Tokai Tokyo Research Institute.” [Reuters, 2/6/24 (=)]

 

Toyota: We Make Hybrids Because Customers Want Them — “Toyota, the Japanese company that currently sells just one all-electric vehicle in the United States–the bZ4X crossover–is known in hardline electric car enthusiast groups as being a laggard in transitioning to a fully electric portfolio. The Japanese automaker even went on record through the voice of its main science man Gill Pratt last year, who said that EV-only extremists are wrong and that in the long run, a diversified powertrain approach will win–both for the environment and for the customers. His reasoning was that most people usually don’t need the massive batteries that are fitted to long-range EVs. As such, resources are wasted on batteries that aren’t used at their full potential. The solution, in Toyota’s eyes? Spread the same materials that would go into a big battery across multiple, smaller batteries that are part of hybrid or plug-in hybrid setups.” [Inside EVs, 2/6/24 (=)]

 

Volkswagen Group (VW)

 

UAW says majority of workers at VW Tennessee plant seek to join union — “The United Auto Workers said on Tuesday that a majority of workers at Volkswagen’s (VOWG_p.DE), opens new tab Chattanooga, Tennessee, assembly plant have signed cards to join the union. In November, the UAW said it was launching a first-of-its-kind push to publicly organize the entire nonunion auto sector in the U.S. after winning record new contracts with the Detroit Three automakers. VW, which says about 4,100 workers at the plant that produces the Atlas and ID.4 are eligible to join a union, said the company respects ‘our workers’ right to decide the question of union representation. And we remain committed to providing accurate information that helps inform them of their rights and choices.’ The UAW has for decades unsuccessfully sought to organize auto factories operated by foreign automakers. Efforts to organize Nissan Motor (7201.T), opens new tab plants in Mississippi and Tennessee failed by wide margins, and two attempts to organize VW’s plant in Chattanooga narrowly failed. In 2019, VW workers at the plant rejected union representation in an 833-776 vote.” [Reuters, 2/6/24 (=)]

 

UAW Milestone — “Workers at Volkswagen’s Chattanooga, Tennessee, plant are the first non-union auto plant to announce majority support for joining the United Auto Workers since the union announced it planned to organize auto plants outside Detroit’s traditional Big Three. More than 50 percent of the 4,000 workers at VW’s only U.S. assembly plant have signed cards. Mercedes and Hyundai workers in Alabama have also announced public campaigns to join the UAW.” [Politico, 2/7/24 (=)]

 

 

 

Choice Hotels International

 

Choice Hotels to Add Tesla EV Chargers — “Choice Hotels International has partnered to offer electric vehicle manufacturer Tesla’s universal electronic vehicle chargers at the company’s properties in the United States, Choice announced Tuesday. It wasn’t immediately clear at how many properties Choice would install Tesla’s Universal Wall Connectors, which Tesla introduced in August 2023 and which it says can charge any North American brand of electric vehicle. Choice did note that 41 percent of the company’s Cambria-branded hotels currently offer at least one EV charging station, ‘and by the end of 2024, all are expected to be outfitted with at least one charging station.’ The Choice website currently lists 75 Cambria locations. The partnership allows ‘Choice-branded properties [to] add four or more charging stations for guests,’ according to Choice. Best Western parent BWH Hotels and Hilton Worldwide each formed similar partnerships with Tesla in 2023.” [Business Travel News, 2/6/24 (+)]

 

 

 

Hertz Corp.

 

Hertz Misses Estimates On EV Fleet Rethink, Plans Cost Cuts — “Hertz Global Holdings Inc. is looking to cut costs after it missed analysts’ fourth-quarter estimates as it sold down its fleet of Tesla Inc. electric vehicles. The rental car giant reported Tuesday that it lost an adjusted $1.36 per share, worse than the 76-cent loss analysts’ projected for the quarter, swinging from a 70-cent profit in the previous quarter and a 50-cent profit a year ago. The drop into the red follows the company’s decision to offload 20,000 Tesla EVs, about one-third of its electric fleet, saying it lost money renting them out. Chief Executive Officer Stephen Scherr said in an interview that Hertz also plans to cut $250 million in other costs, which may include layoffs, with a total restructuring that should show better results starting in the second half. ‘The company clearly took on more EV exposure than where the market otherwise took us,’ Scherr said. ‘The decision we made in the fourth quarter to make a pivot on EV sets us up for a transitional year that’s achievable. We’ll spring into 2025 a better company.’” [Bloomberg, 2/6/24 (=)]

 

Hertz (HTZ) blames EVs for Q4 earnings miss as stock price rises anyways — “Car rental company Hertz (HTZ) missed Q4 earnings expectations, blaming ‘headwinds’ with its EV fleet. Hertz believes reducing the number of EVs in its fleet will improve profitability. Hertz is reducing EVs in its fleet to improve earnings Hertz reported Q4 revenue of $2.2 billion, a 7% increase year-over-year (YOY). Although this was mostly in line with estimates, Hertz’s adjusted $1.36 loss per share significantly missed the consensus of around (-$1.05) per share. The car rental company posted a net loss of $348 million in the fourth quarter, down from $116 million in net income in Q4 2022. Hertz’s adjusted negative 17% margin includes $245 million in net deprecation related to Tesla EVs for sale. Depreciation per vehicle reached $498 per month, more than double last year’s depreciation per vehicle per month of $242.” [Electrek, 2/6/24 (=)]

 

Hertz Still Hurts From EV Investment, Backtracks On Polestar Buying — “Rental car companies have jumped onto the EV train across the globe. That plunge may have been a bit premature, though, as one of the most prominent rental agencies in the U.S. is ditching the majority of its EVs. And after Tesla hit the cutting room floor, so will Polestar. Welcome to Critical Materials, your daily dose of all things EVs and automotive tech. Today we’re talking Hertz’s break-up with Polestar, the U.S. Secretary of Transportation getting ticked off with Apple Vision Pro users behind the wheel of some Teslas, and Aptera’s imminent launch. Let’s jump into it: Hertz’s decision to go heavy on EVs was a bold one. The rental car company hoped that it could cut down on fleet maintenance costs and attract new customers by purchasing large quantities of EVs, effectively electrifying up to 25% of its fleet by the end of 2024. It turns out that things didn’t go as planned.” [Inside EVs, 2/6/24 (=)]

 

Hertz's CEO called its electric vehicle fleet a "distraction" — “Back in July last year, Hertz gathered a bunch of people at a Los Angeles International Airport parking lot festooned with cones and sandbagged safety barriers and a bunch of electric vehicles: Teslas, Chevys, Kias, Polestars. ‘For customers who are curious about electric vehicles, there’s no better way to experience one than with a test drive at Hertz, which has the largest rental fleet of EVs in the U.S.,’ Laura Smith, an executive with the company, said in a press release accompanying the event. So much excitement around the future of automotive technology! Well, Hertz has become a lot less excited with its EV fleet in the months since. The rentier reported higher revenue last quarter, up 7% from last year to $2.2 billion. But it also told investors that profits took a $464 million swing to a $348 million loss. CEO Stephen Scherr blamed EVs.” [Quartz, 2/6/24 (=)]

 

 

 

Advocacy

 

Big Oil Embraces Corn As Former Foes Unite Against EV Threat — “After decades of battling against more ethanol going into US cars, Big Oil is joining Big Agriculture in a push to expand use of the corn-based biofuel. The longtime foes are increasingly finding common ground as the growth of electric vehicles threatens to slash gasoline demand. Fossil-fuel giants are also ramping up investment in renewable fuels in a bid to capture government incentives aimed at cutting emissions and curbing climate change. ‘Today’s a different world,’ said Bruce Rastetter, founder of Summit Agricultural Group. ‘It’s a whole sea-change of oil companies working with the biofuels industry to decarbonize the gas tank.’ Most of the gasoline sold nationwide contains 10% ethanol, known as E10. But selling higher blends of 15%, or E15, through the summer months is generally off limits without a waiver from the Environmental Protection Agency.” [Bloomberg, 2/6/24 (+)]

 

Farmers Accuse Biden Of Overlooking Biofuels In Race To EVs — “The biggest US corn farmers’ group is urging the Biden administration to embrace biofuels in the push to reduce vehicle emissions rather than focusing mostly on electric cars. The National Corn Growers Association said the White House ‘may be overlooking the benefits of biofuels as it rushes to embrace electric vehicles,’ according to a letter viewed by Bloomberg News that will be sent to President Joe Biden on Wednesday. ‘If we are going to address climate change and meet our climate goals, we are going to have to take a multi-pronged approach that includes tapping into higher levels of biofuels, such as corn ethanol, which offers an immediate climate solution.’ The administration set a goal to make half of all new car sales to be electric by the end of the decade, and has touted investments in EV technologies and infrastructure. The letter was signed by almost 3,500 farmers.” [Bloomberg, 2/6/24 (=)]

 

Corn Growers Urge Biden To Reconsider EV Plan — “Nearly 3,500 corn farmers are urging President Joe Biden to change course on his electric car plan and support the use of more corn-based ethanol, instead. In a letter to Biden, the farmers, organized by the powerful National Corn Growers Association, complained that the White House is disregarding corn ethanol as a climate solution in favor of electric vehicles. ‘[W]e write regarding our concern that your administration may be overlooking the benefits of biofuels as it rushes to embrace electric vehicles as a sole means of decarbonizing light and medium-duty vehicles,’ the corn growers wrote. ‘We fear this approach could significantly limit your administration’s ability to immediately lower greenhouse gas emissions and put the nation on a climate-smart path.’ Corn growers are deeply intertwined with the ethanol industry, which provides them with critical income. According to the Agriculture Department, about 40 percent of the U.S. corn crop is bought by ethanol producers to make the fuel — a market that would vanish if gas-powered cars become obsolete. That’s created deep uncertainty within the ag industry about the president’s efforts to shift the country to electric vehicles.” [Politico, 2/7/24 (=)]

 

United Auto Workers (UAW)

 

UAW boss wades into Sierra Club’s labor strife — “National labor leaders are urging the Sierra Club’s management to negotiate a ‘strong, progressive contract’ with the group’s employee union as tensions remain high inside the national environmental organization. Shawn Fain, president of the United Automobile Workers, and Rep. Rashida Tlaib (D-Mich.) were among the labor leaders and state and federal politicians who signed onto letters Tuesday to Sierra Club Executive Director Ben Jealous and members of the environmental nonprofit’s board. The signatories are pressing the green group to support proposals from the union as talks continue over a collective bargaining agreement. The Sierra Club ‘has an opportunity to co-create one of the strongest bargaining agreements in the nation,’ the letters say, urging the group’s leaders to ensure a contract that provides the benefits workers and the organization need to thrive.” [E&E News, 2/6/24 (=)]

 

 

 

EV Surface Infrastructure

 

Op-Ed: Electrified Roads An Optical Illusion In EV Endgame — According to James David Dickson, “If you build it, they will come. This is the logic that results in baseball diamonds in Iowa cornfields, and electrified roads in Detroit. But be careful with attention getters. When a patch of electrified road was installed in Detroit last November, it was hailed as a big deal. The town that put the world on wheels, and paved its first mile of road, was now a pioneer in Auto Industry 2.0, the electric vehicle — so the narrative went. But the electrified road is more of an optical illusion than a realistic way to drive. It stretches only a quarter of a mile and generates more headlines than it charges vehicles. Electric car buyers are led to believe that if they buy an EV, the road will take care of the rest, including charging. But the entire electric vehicle ecosystem is theater. You won’t be asked to scan your laptop or take off your shoes. Just to hand over your wallet so the federal government can create buying patterns anew.” [The Detroit News, 2/6/24 (~)]

 

EV Sales & EV Transition

 

How To Sell EVs In An Increasingly Crowded Marketplace — “In many parts of the world, it’s getting more difficult to sell electric vehicles. Subsidies aren’t as plentiful or generous as they used to be, and competition is fierce with even market leaders like Tesla and BYD slashing prices and growing more slowly. New vehicles are still flooding into the market. Just five years ago, at the start of 2019, there were 212 battery-electric and plug-in hybrid vehicles on offer to consumers. By the end of 2024, that number should rise to 630 EV models, if automakers stick to their announced plans. One way to stand out in the increasingly crowded EV market is with smart sensors and the latest tech. The number of lidar-equipped passenger-car models roughly doubled over the course of a year. At the close of 2023, there were 66 lidar-equipped car models available at price points ranging from just over $20,000 to almost $160,000.” [Bloomberg, 2/6/24 (=)]

 

EVs Won Over Early Adopters, But Mainstream Buyers Aren't Along For The Ride Yet — “Bad headlines for electric vehicles have been piling up lately. Sales leveled off at around 9% of the new car market, and even dipped down at the start of the year. Hertz is selling off a bunch of EVs, citing low demand for them. Ford is slashing production of the F-150 Lightning. GM cut its near-term investment in EVs and is now bringing back plug-in hybrids, which run on electricity and gasoline. Even Tesla, the all-electric juggernaut that has shaped the rise of EVs in the U.S., warned investors that it’s in between ‘growth waves’ and has a quieter year ahead. Is it the end of the road for the much-touted EV transition? Not so fast. Take a closer look, and a different picture emerges. After a record year in 2023, EV sales are expected to set another record in 2024. The CEO of Hertz saysthe company ‘may have been ahead of ourselves’ in how quickly it moved toward EVs — but maintains it’s the right long-term plan. Ford and GM are shifting their timelines, not their targets. And Tesla, of course, remains all in on EVs.” [WGCU-TV, 2/7/24 (~)]

 

TV: The Claman Countdown (Audience: 269,370) “Liz: with apologies to Mark Twain, have reports of the death of the EV been exaggerated? If one company just blasted through earnings with a boost from its EV auto sector Onsemi up 7 this week after the chip maker reported, actually now it’s nearly 8% over the two days, 9%, rather, fourth quarter earnings beat and full-year with revenues from its automotive semiconductor business zoomed 29% higher to a new record of $4.3 billion. But with car buyers now opting to buy hybrids over electric vehicles, how is the current quarter shaping up? Onsemi’s CEO is here. Wonderful numbers, but Wall Street all about a looking forward and not in the rearview mirror. How is the current quarter looking for your EV business? >> Yeah, by the way, we’re also always looking forward. What’s best is best. What is left for us in 2024 and if I look at the technology or the mega trend, what I call the electrification of mobility or immobility, the drive train, yes, EV has a lot of focus on it, … But we from our company Onsemi, we cannot ignore the fact there is other segments, and one of them is the plug-in hybrid, where we still have a of the content are growth -- plug-in hybrid. The opportunity for us in internal combustion is about $50 worth of content in the drive train. You take that to a plug-in hybrid, now you have $150, so a 7x increase in content between the drive train and onboard charger. You take that to EV, that becomes $750. So the opportunity for growth for us is in that conversion even if plug-in hybrid is a steppingstone for a full EV.” [FBN (Fox Business), 2/7/24 (~)]

 

 

 

Minnesota

 

Minnesota's electric vehicle rebate program opens Wednesday. Here's what you need to know. — “An electric vehicle charges at a station in a Bemidji parking lot. Wednesday is the first day Minnesotans will be able to apply for a rebate for purchasing an electric vehicle. Dan Gunderson | MPR News 2023 Share Wednesday is the first day Minnesotans will be able to apply for a rebate for purchasing an electric vehicle. The Legislature designated funding last year for the rebate program, which is finally rolling out this week. The state Department of Commerce will start accepting applications at 10 a.m. Feb. 7. Here are a few things to keep in mind before you apply. Why is the state offering these rebates now? The rebate program was part of a suite of bills the Minnesota Legislature passed last session to address climate change. The transportation sector is now the largest contributor of greenhouse gas emissions in Minnesota. Right now, EVs make up less than 1 percent of vehicles on the road in Minnesota, and state lawmakers want to increase that percentage. ‘The state is doing this to incentivize the clean energy transition, particularly the transition in the vehicle space for our cars and light trucks,’ said Peter Wyckoff, assistant commissioner for federal and state energy initiatives at the Minnesota Department of Commerce. ‘One way to get folks to move faster in adopting this new technology is to offer economic incentives.’” [Top Gear, 2/6/24 (+)]

 

New Jersey

 

Attorneys Eye New Jersey’s Novel EV Battery Law As EPR ‘Template’ — “Industry attorneys say a just-adopted New Jersey law making electric vehicle (EV) makers responsible for collection and disposal of the units’ batteries could serve as a baseline for future extended producer responsibility (EPR) policies in other states or even nationwide, as EPA grapples with battery recycling policy. The Garden State’s ‘Electric and Hybrid Vehicle Battery Management Act,’ which Gov. Phil Murphy (D) signed into law on Jan. 8, is ‘the first law of its kind nationwide,’ attorneys for the industry law firm Beveridge & Diamond wrote in a Jan. 24 blog post. Both the statute itself and New Jersey’s implementation ‘will likely serve as a template for future vehicle battery EPR programs in other states,’ the post says. The law is set to take effect Jan. 1, 2027, and requires manufacturers to provide collection and disposal for any propulsion batteries sold within the state, either embedded in a vehicle or as individual parts. Those programs would be subject to regulation by the state Department of Environmental Protection (DEP). ‘Producer battery management plans are due to DEP 180 days after it adopts program regulations -- likely summer 2027,’ the post says.” [Inside EPA, 2/6/24 (=)]

 

New Mexico

 

Proposed electric vehicle tax credit will either surge or die in coming days — “A proposed tax credit designed to make electric vehicles more affordable and give a jolt to New Mexico’s clean car transition is heading toward a critical juncture in this year’s legislative session. The EV credit will be part of the legislative tax package, which the House Taxation and Revenue Committee is expected to review this week. Members can vote to modify it, leave it as is or remove it from the package. The tax credit would be the final spoke in a wheel proponents say is essential to making electrification happen in New Mexico. The other two are a statewide network of EV charging stations and an ample supply of the vehicles for people to buy. Buyers would receive a $3,000 tax credit on new EVs, $1,500 for used ones and $2,000 for new hybrid cars from 2024 through 2026. Used hybrid buyers can get $1,000 credit during that period. The credit would decrease in the following three years because EV prices are expected to fall as more of the vehicles become available. It would sunset at the end of 2029.” [Santa Fe New Mexican 2/6/24 (=)]

 

Utah

 

Utah nixes land exchange for Bears Ears monument — “Republican Utah Gov. Spencer Cox on Tuesday killed a deal to swap ownership of 162,000 acres of state lands inside the Bears Ears National Monument for federal lands across the state, blaming the Biden administration for its ‘restrictive land management plan.’ The decision to exit the agreement will leave parcels of state land inside the boundaries of Bears Ears, a sprawling 1.35-million-acre site in southeastern Utah. The deal would have also granted Utah ownership of 167,000 acres of federal land scattered across the state. But Cox, in a joint statement with state House Speaker Mike Schultz (R) and state Senate President Stuart Adams (R), said his administration would exit the agreement over concerns about a still-unfinished resource management plan for the monument. ‘Utah has sought for a collaborative, inclusive approach to managing our public lands, including in the management of the Bears Ears National Monument, yet the Biden administration continues to ignore our good faith input,’ the statement reads. ‘The federal government has signaled that it once again plans to adopt a restrictive land management plan that will harm recreational access, grazing, and other traditional public uses of these lands.’ The Utah officials signaled, however, that negotiations over the land exchange could be resurrected.” [E&E News, 2/6/24 (=)]

 

 

 

Asia

 

China's New Energy Vehicle Sales Drop M/M For First Time Since Aug — “China’s new energy vehicle sales fell 38.8% versus the previous month, the first such drop since August 2023, industry data showed, as demand faltered in the world’s largest auto market despite a renewed discounting push led by Tesla (TSLA.O), opens new tab. Vehicle sales, including those exported, totalled 2.44 million units, up 47.9% from a year earlier but down 22.7% from December, the first such slide since November, according to data from the China Association of Automobile Manufacturers (CAAM). New energy vehicle (NEV) sales, accounting for 29.9% of total sales, grew 78.8% on year in January, the data showed. CAAM data tracks automakers’ sales to dealers and includes commercial vehicles such as trucks unless specified. Last January, passenger vehicle sales in China plunged 37.9% on year and slumped 40.4% on month, the worst performances for January since the 2000s, according to the China Passenger Car Association (CPCA), as subsidies and tax cuts ended.” [Reuters, 2/7/24 (=)]

 

China Pledges To Strengthen Support For EVs Amid Trade Headwinds — “China has said it will strengthen support for the country’s electrified vehicle industry as the sector increasingly faces trade restrictions from the European Union and the US. The ministries of commerce, foreign affairs and customs as well as four other government agencies on Wednesday called EV exports a ‘key pillar’ in optimizing China’s foreign trade. They also published a set of guidelines that include steps such as better using international trade rules and engaging foreign governments to create an open and transparent environment for the electric car industry. The nation’s automakers are also being encouraged by authorities to set up overseas research and development centers with local partners and officials called upon the financial industry in China to optimize credit and international transactions. No additional details about that monetary support was given.” [Bloomberg, 2/7/24 (=)]

 

Elon Musk Super Bullish On Chinese Electric Car Companies — “Tesla’s recent conference call for investors was packed full of little nuggets, and some big nuggets. We covered the Tesla California factory being the biggest auto production facility in the USA, we covered the financials, we covered the $25,000 Tesla coming in 2025, we covered the stock tumbling, we covered Tesla services becoming very profitable, and we covered Tesla energy storage & solar profits nearly quadrupling. But there was a pretty huge statement near the end of the conference call that we didn’t cover, and that concerned Elon Musk’s very bullish views on Chinese EV companies. Here’s what Elon had to say: ‘Our observation is, generally, that the Chinese car companies are the most competitive car companies in the world. So, I think they will have significant success outside of China, depending on what kind of tariffs or trade barriers are established. Frankly, I think that if there are not trade barriers established, they will pretty much demolish most other car companies in the world. So, they’re extremely good.’” [CleanTechnica, 2/7/24 (=)]

 

Europe

 

House of Lords says ‘turbo charge’ EV rollout and combat misinformation — “The House of Lords has published a report about electric vehicles. The conclusion? Those in power aren’t doing enough to meet the ‘achievable’ target of getting everyone into EVs by 2035. And (somewhat ironically) called for the EV rollout to be ‘turbo-charged’. Ahem, ok. The report stated that, by far, the biggest concern is the lack of communication and the misinformation about EVs. While some media have worked hard to allay fears about EVs catching fire, perpetual range anxiety, battery life, charge frequency and the public charging infrastructure, it seems other outlets are less onboard. The report said: ‘Several witnesses told us that media coverage of EVs was inaccurate and portrayed EVs in a disproportionately negative light - noting that even when corrected, fact checks often do not reach as wide an audience as the original article.’ The report reckons that a vacuum, created by the lack of clear information from official sources, is being filled by mixed messages, creating a lack of confidence.” [Top Gear, 2/6/24 (=)]

 

Sunak Is Too Negative About Electric Cars, UK Lords Say — “The UK’s House of Lords criticized Rishi Sunak’s messaging around electric vehicles, chiding the prime minister for underscoring how difficult cutting emissions will be rather than speaking to the benefits. In a 128-page report calling on the government to do more to boost EV adoption, the upper house of the UK Parliament took issue with Sunak saying in September that achieving net zero ‘is going to be hard.’ The prime minister announced then that Britons would still be able to buy new petrol and diesel cars and vans until 2035, five years later than his predecessor Boris Johnson suggested. ‘The government must do more to convey a positive vision of the EV transition,’ the report said. ‘By emphasizing the costs while failing to stress the benefits and robustly counter misinformation, the government is not building public confidence.’” [Bloomberg, 2/6/24 (=)]

 

Make used electric cars cheaper and tackle battery fears, peers tell ministers — “Ministers need to intervene to boost the secondhand electric vehicle market and allay ‘uncertainty and concerns’ over the health of their batteries, a House of Lords committee has said. Peers on the environment and climate change committee urged the government to step up efforts to encourage electric vehicle adoption amid consumer jitters over the cost of vehicles, the longevity of their batteries and the availability of charging points. Ministers should step in to tackle the disparity in upfront costs between EVs and petrol and diesel cars, and examine targeted grants to incentivise the purchase of electric cars, they said in a report. During their seven-month long inquiry, witnesses repeatedly called for a cross-industry battery health testing standard to provide ‘clear information and reassurance to consumers’.” [Reuters, 2/4/24 (=)]

 

Ads From BMW, MG And Transport For London Banned By UK Watchdog Over Green Claims — “Misleading environmental adverts from carmakers BMW and MG and from London’s transport authority have been banned by the UK’s advertising watchdog, in a pair of landmark rulings. Car adverts from BMW and MG last year claimed their electric vehicles were ‘zero-emission’, but the Advertising Standards Authority on Wednesday said the models produced carbon emissions during their manufacture, as well as when recharging using electricity generated from fossil fuels. Its rulings are precedent-setting, meaning any carmaker selling EVs must qualify that ‘zero-emission’ claims only apply to when the vehicle is being driven. The regulator has launched a crackdown on ‘greenwashing’ in adverts, and has banned some adverts by oil groups and airlines over the past year for misleading environmental claims.” [Financial Times, 2/6/24 (=)]

 

EVs Take 25.0% Share In France — Peugeot E-208 Leads — “January saw plugin EVs take 25.0% share of the French auto market, an increase from 22.3% share, year on year. Full electric sales volume grew some 1.4x YoY, while plugin hybrid volume was flat. December’s overall auto volume was 122,284 units, up 9% YoY, but still far below 2017–2019 norms (~155,000). France’s best selling full electric in January was the Peugeot e-208. January saw combined plugin EVs take 25.0% share, consisting of 16.4% full battery electrics (BEVs), and 8.6% plugin hybrids (PHEVs). These compare with YoY figures of 22.3%, with 13.1% BEV, and 9.2% PHEV. An annual addition to BEV market share of 3.3%, climbing to 16.4% share, looks fairly modest, but represents a 1.25x increase in share from January 2023’s 13.1%. BEV sales volume was up a more impressive 37% YoY, even though this was partly hidden by an overall market volume recovery. That overall volume recovery, however, was only enabled by BEV growth and mild/HEV growth, since PHEVs were flat, and combustion-only powertrains were down in volume.” [CleanTechnica, 2/6/24 (=)]

 

 

 

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