Cars Clips: February 15, 2024

 

 

Biden Green Team Fans Out To Promote Climate Work — “Top Biden administration energy and environment officials are traveling across the country in their latest tour pitching their policy record to the public. Interior Secretary Deb Haaland is slated to travel to Virginia, Ohio and Delaware to highlight the administration’s investments in ‘addressing legacy pollution, investing in Indigenous communities, and strengthening climate resilience,’ the White House announced Wednesday. EPA Administrator Michael Regan and Vice President Kamala Harris plan to travel to Pennsylvania to tout clean water investments. Regan will also travel to Texas and North Carolina, according to the White House, ‘to highlight critical investments to reduce climate pollution, advance environmental justice, and deploy clean energy solutions.’ Energy Secretary Jennifer Granholm will head west, visiting California and Washington state, the White House said, where she’ll discuss President Joe Biden’s clean energy policies. Also headed to California is Agriculture Secretary Tom Vilsack, who will tout Biden administration investments that are ‘making communities more resilient to the impacts of climate change and extreme weather events,’ the White House said.” [E&E News, 2/14/24 (=)]

 

Administration On Tour — “The administration’s latest ‘Investing in America tour’ kicks off today, with everyone from President Joe Biden on down traveling the country to tout the infrastructure bill, the Inflation Reduction Act, the CHIPS and Science Act and Covid relief bills. Second Gentleman Douglas Emhoff and Deputy Transportation Secretary Polly Trottenberg are heading to Minnesota to highlight transportation investments. Transportation Secretary Pete Buttigieg is in Charlotte, North Carolina, today. He heads to Hawaii next. It’s the fourth such promotional tour the administration has mounted to tout its legislative accomplishments. Just sayin’: The newly-minted swing state of North Carolina is getting a lot of administration attention in this tour, with no fewer than six visits from Cabinet secretaries and other high-level Biden administration officials.” [Politico, 2/15/24 (=)]

 

Lobbyists Swarm White House As Biden's Major Vehicle Emission Rules Near — “Industry and green groups are flocking to the White House to sway the Biden administration’s looming vehicle carbon emissions rules. Why it matters: Transportation is the largest U.S. emissions source, and the rules aim to speed up electrification. It’s a 2024 election issue as well — former President Trump is bashing President Biden’s electric vehicle policies, arguing they defy consumer preferences and help China. The latest: Records show 20 February meetings occurred, or are scheduled, with White House and Environmental Protection Agency aides about planned light- and medium-duty vehicle rules. Automakers, climate groups, the oil sector and many others are taking part in closed-door sessions about standards that start taking effect in model year 2027. How it works: Chats with the White House Office of Information and Regulatory Affairs often occur shortly before rules are released. The White House agenda targets March for this one, but it could be longer — those plans are always penciled in.” [Axios, 2/14/24 (=)]

 

 

 

Senate

 

Democrats Want Climate Law Credits To Promote Mining — “Senate Democrats from mineral-rich states are calling on the Treasury Department to revise proposed guidance tied to the Inflation Reduction Act that blocks lucrative tax credits from covering the cost of digging up metals like lithium, cobalt and nickel. Sens. Catherine Cortez Masto of Nevada and John Hickenlooper of Colorado urged Treasury Secretary Janet Yellen in a letter Wednesday that the agency’s interpretation of the climate law could undermine electric vehicle adoption and mineral supply chains. ‘This exclusion is not aligned with the intent of Congress and significantly weakens the tax credit as the cost of extracting raw materials essential for renewable energy, battery technologies, and other critical materials are a significant portion of overall costs,’ the senators wrote. Sens. Jacky Rosen of Nevada, Joe Manchin of West Virginia, Mark Kelly of Arizona, Laphonza Butler of California, Bob Casey of Pennsylvania, Patty Murray of Washington and Kyrsten Sinema of Arizona also signed the letter. Sinema is an independent who caucuses with Democrats. Miners and makers of EVs have also banded together to push the administration to tweak its proposed rules for implementing the Inflation Reduction Act’s Section 45 advanced manufacturing tax credit.” [Politico, 2/15/24 (=)]

 

 

 

US ‘Very Concerned’ About China’s Hold On Mineral Supply Chain, Granholm Says — “Energy Secretary Jennifer Granholm issued a warning Wednesday about China’s hold on the mineral supply chain, saying the U.S. is ‘very concerned.’ ‘It’s one of the pieces of the supply chain that we’re very concerned about in the United States,’ Granholm told CNBC. ‘We do not want to be over-reliant on countries whose values we may not share.’ China makes up 60 percent of the world’s rare earth mineral production and 85 percent of its mineral processing. Minerals are needed for the production of some climate-friendly energy technologies including electric vehicle batteries and solar panels. Mining is a sticky issue for Democrats, who have historically fought to protect people and nature from mining’s harms such as pollution and land degradation. However, those on the left have also supported the fight against climate change — which is expected to require the use of the minerals.” [The Hill, 2/14/24 (=)]

 

U.S. ‘Very Concerned’ About China’s Dominance As A Critical Minerals Supplier, Energy Chief Says — “KEY POINTS China is the undisputed leader in the critical minerals supply chain, accounting for roughly 60% of the world’s production of rare earth minerals and materials. U.S. officials have previously warned that this poses a strategic challenge amid a pivot to low-carbon energy sources. ‘We do not want to be over reliant on countries whose values we may not share,’ U.S. Energy Secretary Jennifer Granholm told CNBC’s Silvia Amaro on Wednesday.” [CNBC, 2/14/24 (=)]

 

 

 

US Issues $135 Million In Advance EV Tax Rebates Since Jan 1, Treasury Says — “The U.S. government has reimbursed auto dealers for about $135 million in advance point-of-sale consumer electric vehicle tax credit payments since the start of the year through Feb. 6, the Treasury said on Wednesday. Prior to 2024, U.S. auto buyers could only take advantage of the $7,500 new electric vehicle credit or $4,000 used EV credit when they filed tax returns the following year. Starting Jan. 1, consumers can transfer the credits to a car dealer at the time of sale, effectively lowering the vehicle’s purchase price. The Internal Revenue Service has received more than 25,000 time of sale reports, including more than 19,500 - or 78% - with advance payment requests and approximately $135 million has been paid to dealers since Jan. 1, Treasury said in disclosing the previously unreported figures. ‘One month into implementation of this provision, there is strong demand for this new upfront discount, which will continue momentum in growing this industry in the United States,’ Deputy Treasury Secretary Wally Adeyemo said in a statement.” [Reuters, 1/4/24 (=)]

 

Treasury Says New Electric Vehicle Credit Process Seeing Early Success — “The U.S. Department of Treasury has distributed $135 million in electric vehicle credit reimbursements to car dealers since the start of the year after implementing a process that allows consumers to apply their tax incentive during the sales process. Before the new process was implemented, car buyers could only receive their incentive as a rebate after filing their taxes for the year. In late 2023, the government called on dealers to sign up for a new program that would transfer the electric vehicle credit directly to the seller, effectively allowing consumers to use up to $7,500 in funds as a down payment on their purchase. Since January 1, the Treasury says it has received notice of 25,000 electric vehicle sales from across the country. Deputy Treasury Secretary Wally Adeyemo commented: ‘One month into implementation of this provision, there is strong demand for this new upfront discount, which will continue momentum in growing this industry in the United States.’ However, the turn of the year saw another policy implemented which may be holding sales back despite the improved rebate transfer process.” [CBT News, 2/14/24 (=)]

 

Treasury: 25,000 Buyers Have Claimed EV Tax Credit This Year — “More than 25,000 people have claimed the federal electric vehicle tax credit as an instant rebate this year, with the government reimbursing car dealers roughly $135 million through early February, the Treasury Department said on Wednesday. New rules that kicked in Jan. 1 allow buyers to claim the EV credit of up to $7,500 at the point of sale, a change the Biden administration hoped would boost uptake of the credit. Treasury said Wednesday it had received ‘time of sale reports’ — paperwork that allows dealers to be reimbursed for offering the instant rebate — for more than 22,000 new and 3,000 used vehicle sales through Feb. 6. In the vast majority of those sales — more than 19,500 — dealers applied for an advance reimbursement, which Treasury previously said it would provide within 72 hours. More than 11,000 dealers have registered to offer the credit, including 8,000 who are eligible to offer it at the point of sale, according to Treasury. Deputy Treasury Secretary Wally Adeyemo said in a statement that the data showed ‘strong demand for this new upfront discount, which will continue momentum in growing this industry in the United States.’” [Politico, 2/14/24 (=)]

 

Instant Gratification — “The option to claim the electric vehicle tax credit when you buy the car, instead of waiting until you file your taxes, has been popular since it took effect at the beginning of the year, with more than 25,000 people through early February having gone that route, reports James Bikales. The government has so far reimbursed car dealers roughly $135 million for tax credits for more than 22,000 new and 3,000 used vehicle sales through Feb. 6.” [Politico, 2/15/24 (=)]

 

Uncle Sam Is Helping Americans Buy 675 Electric Cars A Day — “Earlier this week, I was thinking to myself, how are we going to know how many people are actually taking advantage of the tax credits in the Inflation Reduction Act? When I put the question out on Twitter — I mean, X — I heard from Sam Hughes, a researcher inside the Treasury who pointed me to a section of the department’s website that contains data on tax credits by year. The problem is, it hasn’t been updated since 2020. But then today, as if to answer my prayers, I received a taste of the data I was looking for in my inbox. A Treasury official shared that the IRS has received notices from car sellers indicating they sold more than 25,000 tax credit-eligible vehicles between January 1 and February 6. That’s an average of more than 675 EVs sold at a government-sponsored discount per day. To put that in perspective, about 1.08 million cars were sold in total in the month of January, according to Cox Automotive, or about 34,840 per day. So the tax credit-supported EVs were only about 2% of the total cars sold.” [Heatmap, 2/14/24 (+)]

 

 

 

Ford Motor Co.

 

Ford ‘Better Get Going On EVs,’ Or It Will Lose Out To Cheaper Chinese Electric Cars — “Are cheaper Chinese EVs a ‘colossal strategic threat’ poised to enter the US market? Marin Gjaja, chief operating officer for Ford’s EV unit, believes they could put them out of business. Ford sees cheaper Chinese EVs as a major threat Ford better ‘get going on EVs or we don’t have a future as a company,’ Gjaja explained Wednesday. ‘They are ahead of us in this technology.’ During a panel discussion on disruptive new tech in Detroit, Gjaja said (via Bloomberg), ‘We look at that and say, ‘That’s coming here eventually, so we’d better get fit now and better get going on EVs or we don’t have a future as a company.’ Ford recently pulled back on EV initiatives in the US, citing ‘slower than expected demand.’ This includes cutting F-150 Lightning production and delaying around $12 billion in spending. Ford’s Model e EV unit lost $4.7 billion last year. The company blamed ‘extremely competitive pricing’ and new investments for the growing losses. Despite this, Ford’s CFO, John Lawler, said, ‘EVs are here to stay, customer adoption is growing, and their long-term upside is central Ford +.’” [Electrek, 2/14/24 (=)]

 

Ford Sees ‘Colossal’ Competitive Threat In Chinese EVs — “Ford Motor Co. sees low-cost Chinese electric vehicles as a ‘colossal strategic threat’ that will ultimately arrive on U.S. shores, adding to the challenges for an automaker already confronting shaky consumer demand for plug-in cars. ‘They are ahead of us in this technology,’ Marin Gjaja, chief operating officer of Ford’s EV unit, Model e, said Feb. 14. ‘We look at that and say, ‘That’s coming here eventually, so we’d better get fit now and better get going on EVs, or we don’t have a future as a company.’ Ford is recalibrating its EV strategy as mainstream U.S. consumers balk at the high price of battery-powered models and the spotty charging infrastructure. CEO Jim Farley revealed last week that Ford is working on low-cost EVs to take on Chinese competition and an affordable model that Tesla Inc. says it has coming. China’s BYD Co. recently surpassed Tesla as the world’s largest EV maker, with low-priced models such as its $11,000 Seagull.” [Transport Topics, 2/14/24 (=)]

 

General Motor Co. (GM)

 

Op-Ed: Why Barra's 10-Year Rebuild Of GM Remains Unfinished Business — According to Daniel Howes, “No one said turning around a century-old automotive giant scarred by capital incineration and lost market share, poor management and an epic bankruptcy would be easy. But 10 years after ascending to General Motors Co.’s C-suite, Mary Barra is doing it — with mixed success. The automaker’s base internal combustion engine business often outperforms financial expectations, topping analysts’ expectations in 35 of the past 36 quarters. Its pivot to electrification is being hailed for its vision, if marred by softening consumer demand, troubled electric vehicle launches and problems with its autonomous vehicle unit, Cruise LLC. GM’s consistently profitable performance — three words seldom used to describe the Detroit automaker before Barra, 62, became CEO on Jan. 15, 2014 — is not, however, reflected in the company’s share price. Since its post-bankruptcy initial public offering 14 years ago, GM shares are trading less than $6 above their IPO price of $33 apiece, hardly a vote of confidence by investors.” [The Detroit News, 2/14/24 (+)]

 

Hyundai Motor Corp.

 

Hyundai Kona Electric And VW ID.4 Are The Top EVs Selling Below MSRP — “The Hyundai Kona Electric, already one of the most affordable EVs in the US, was the top-selling electric vehicle priced below MSRP last month. Volkswagen’s ID.4 was second, with Hyundai’s IONIQ models and Kia’s EV6 also selling well below MSRP. Hyundai Kona Electric tops EVs selling below MSRP Electric vehicles, like the Hyundai Kona electric, and larger trucks and SUVs accounted for most models priced below MSRP, according to a new study from online auto research firm iSeeCars. As automakers like Hyundai and Kia look to level the playing ground as their EVs do not qualify for the federal tax credit (only through leasing), new incentives are driving prices under MSRP. Hyundai introduced the 2024 Kona Electric in December as one of the most affordable EVs in the US, with starting prices under $33K. The new Kona EV is bigger, features a bold new design, has more range, and charges faster than its predecessor.” [Electrek, 2/14/24 (+)]

 

Renault-Nissan-Mitsubishi Alliance

 

French Company Is Forecasting Roughly Flat Returns This Year — “Renault SA is forecasting roughly flat returns this year as the French manufacturer tries to counter muted demand for electric vehicles by overhauling its lineup. The company sees an operating margin of at least 7.5% in 2024, compared with 7.9% last year, it said Wednesday. Renault, which plans to introduce ten new models this year including the key all-electric R5, also proposed its highest dividend since the one paid out in 2019. Chief Executive Officer Luca de Meo, who has been revamping Renault since assuming the post in July 2020, is focusing on reducing the cost of new EVs via partnerships after scrapping a plan to sell shares in its EV and software business Ampere. The IPO project faced headwinds including Tesla Inc.’s frequent price cuts and increased competition from Chinese manufacturers. Demand for cars with a plug has cooled of late. A number of manufacturers are pushing back rollouts of new models and car-rental firms are paring purchases for their fleets. Renault is not expecting growth in the automotive markets in Europe or Latin America this year and is projecting free cash flow of at least €2.5 billion ($2.7 billion) in 2024, compared with €3 billion last year” [Bloomberg, 2/14/24 (=)]

 

Stellantis NV

 

Stellantis Says It Made $20B In Net Profit Last Year — “Stellantis said its net profit grew 11% last year compared to what it made in 2022 to almost $20 billion (18.6 billion euros), but profits slid in the second half of the year when the automaker was dealing with the impact of the UAW strike. Despite any labor challenges, Stellantis still managed a net profit of $8.3 billion (7.7 billion euros) in the last six months of 2023, a drop of 13% compared with the same period a year prior. The news came during the automaker’s earnings report, which was released Thursday. Stellantis CEO Carlos Tavares said the company’s performance highlighted a solid year for the automaker that owns the Jeep, Ram, Chrysler, Dodge, Fiat, Alfa Romeo and Maserati brands as well as others sold in other parts of the globe. ‘Today’s record financial results are proof that we have become a new global leader in our industry and will remain rock solid as we look to a turbulent 2024. Thanks to our flexible technology and product roadmap, we are prepared to address the various scenarios that could arise and to continue delivering on our Dare Forward 2030 targets,’ Tavares said in a news release.” [Detroit Free Press, 2/14/24 (=)]

 

Stellantis Posts Record Profit, Revenue In 2023 — “Higher pricing fueled Stellantis NV to a record $20 billion (18.6 billion euro) net profit in 2023, an increase of 11% from 2022. Upped price points particularly in foreign markets drove the earnings growth in the third year of the company that includes Chrysler, Dodge, Jeep and Ram as well as the likes of Alfa Romeo, Citroën, DS, Fiat, Opel, Peugeot and Maserati. Although the company trumpets a higher average transaction price of $53,300 than its competitors in the United States, production disruptions and costs associated with new labor agreements last year kept North America from seeing earnings growth. There also was a 1% decrease in U.S. sales last year, but Stellantis says it’ll remain ‘disciplined’ on pricing. Stellantis NV posted record net profit, revenue and industrial free cash flow in 2023. The profits set the automaker up for a critical year. Amid raised interest rates and following cost cuts that have included workforce reductions, buyouts and reduced marketing spending, Stellantis is launching its first all-electric vehicles in North America just as others in the industry are recalibrating their expectations on EV uptake. Consumer hesitation continues around range, access to charging infrastructure and charging speed.” [The Detroit News, 2/14/24 (=)]

 

Stellantis' Eligible UAW Members To Get Profit-Sharing Checks Of $13,860 — “Stellantis workers who are represented by the UAW are in line to get profit-sharing checks this year that could total $13,860, a drop from last year but still the highest payout among the Detroit Three. The amount was announced early Thursday in a news release shortly after Stellantis, which owns the Jeep, Ram, Chrysler, Dodge and Fiat brands, announced its full year and second-half earnings for 2023. The company said it made almost $20 billion in net profit in 2023. The profit-sharing figure compares to the $14,760 checks that Stellantis announced last year, which was also the highest among the Detroit Three. In recent weeks, Ford announced profit-sharing checks of $10,416 for UAW members, and General Motors put its total at $12,250, according to recent Free Press reporting.” [Detroit Free Press, 2/15/24 (=)]

 

Stellantis Workers Eligible For Largest Profit-Sharing Checks Of Detroit Three For 2023 — “Employees of Stellantis NV represented by the United Auto Workers could see profit sharing checks of $13,860, though some could be more and some less based on hours worked, the automaker said Thursday. There are approximately 38,000 eligible workers for the checks. The payout is a 6.1% decrease from last year’s $14,760 with 40,500 eligible employees. The announcement was a part of the automaker’s annual financial results based on a 15.4% adjusted operating income margin last year in North America. That is down from 16.4% in 2022 from issues with the automaker’s inventory mix and a less than $800 million lost profit from strikes by the United Auto Workers and Canadian union Unifor.” [The Detroit News, 2/14/24 (=)]

 

Tesla, Inc.

 

Tesla’s Chair Under Scrutiny For Oversight Of Elon Musk — “Elon Musk, the chief executive and public face of Tesla, is constantly making news and broadcasting his opinions on his social media site, X. But the electric car company has another leader — one who maintains a much lower profile. For more than five years, Tesla’s board has been led by Robyn M. Denholm, a technology executive who rarely speaks in public outside her native Australia and posts barely anything on X. To some analysts and investors, Ms. Denholm is the ‘adult in the room’ who has helped Mr. Musk turn Tesla into the world’s most valuable automaker. But to her critics, she has failed at her most important job: serving as a check on Mr. Musk. Late last month, a Delaware judge sharply criticized Ms. Denholm’s leadership while striking down Mr. Musk’s 2018 compensation package, which is worth more than $50 billion. Ms. Denholm took a ‘lackadaisical approach to her oversight obligations’ at Tesla, said Chancellor Kathaleen St. J. McCormick of the Delaware Court of Chancery.” [The New York Times, 2/15/24 (=)]

 

 

 

IONNA

 

Joint Venture EV Charging Network Ionna Begins Operations — “Dive Brief: Seven leading automakers’ electric vehicle charging joint venture, Ionna, has received regulatory approval to begin operations, the company announced in a press release Friday. The joint venture partners — BMW, General Motors, Honda, Hyundai, Kia, Mercedes-Benz and Stellantis — plan to install a minimum of 30,000 high-powered EV chargers in strategic locations in North America. The first U.S. stations will open this year, followed by Canada. Each charging location will feature multiple high-powered chargers, allowing drivers to travel longer distances. Ionna also plans to offer plug-and-charge technology to allow drivers to pay for charging sessions without needing an app or credit card.” [Utility Dive, 2/14/24 (=)]

 

 

 

Utilities, EV Charging Companies Must Collaborate To Avoid Bulk Power System Disruptions: NERC — “Dive Brief: Rising electric vehicle charging loads could threaten bulk power system reliability, depending on how EVs are operated, the North American Electric Reliability Corp. concluded in a white paper published Thursday. There were 1.2 million EVs sold in the U.S. last year, and experts anticipate continued growth. The solution is for EV and charging system manufacturers to boost their collaboration with electric utilities in order to establish performance criteria and standards for ‘grid-friendly EV charging methods,’ NERC said. The EV sector and utility companies must stand up ‘uniform programs across the country to enable fast, reliable installation of EV chargers,’ Blink Charging Chief Technology Officer Harjinder Bhade said in an email. Those could include tariffs that align charging with clean energy generation and the potential for EVs to send power back to the grid, he said.” [Utility Dive, 2/14/24 (=)]

 

Op-Ed: They Are Trying To Kill The Electric Car Again — According to James Morris, “Anti-EV rhetoric has been on the rise once more. One British newspaper has even blamed Mr Bean actor Rowan Atkinson as the central influence against electrification, at least in the UK. That might be a bit farfetched, but there has been an obvious increase in journalism and social media negativity aimed at EVs. When you step back and look at history you realize that we could have gone electric 25 years ago, but concerted industrial forces killed the trend. Are we seeing another attempt to ruin the latest EV revolution, and will it succeed? History Repeating Itself? Twenty-five years ago, the EV1 from General Motors showed incredible promise. This may have started out with just 55 miles of EPA range with the original lead-acid battery, but the final NiMH version boosted this to 105 miles (and the original EPA estimates were higher). Toyota had an EV version of the RAV4 and Honda had the EV Plus. But then all three companies pulled their vehicles and wouldn’t even let existing owners keep them. This unedifying piece of history is well documented in the film Who Killed The Electric Car? from 2006.” [Forbes, 2/14/24 (+)]

 

Fossil Fuel Companies Want To Suck Our Minds Into The Mirror Universe — “A recent article at Forbes reports on an awful situation: renewed attempts to sabotage the EV market. Just like the original Who Killed The Electric Car? moment, we’re seeing attempts to derail and gut EVs so that entrenched interests can keep making money. While some of the writing about the problem is sensational (blaming Mr. Bean for everything), there is still a lot of bad information circulating about EVs. Not only have we seen problems with outright misinformation and disinformation, we’re also seeing governments act on that disinformation as if it were verifiable fact. Like any public policy, when the public becomes misinformed and elects people who agree with that bad information, the end result is piss poor policy. And note that I didn’t say bad. I said piss poor, like in the movie Armageddon. We can call a policy bad if it causes some short-term suffering or requires a few billion dollars to clean up after it. But, when the fate of humanity hangs in the balance and people are intentionally doing stuff wrong to make a quick buck or gather some meaningless political power for one human lifetime, piss poor might not even cover it.” [Reuters, 2/14/24 (+)]

 

 

 

EV Advertising

 

Off The Air — “The Environmental Defense Action Fund is asking news stations to stop airing ads from the American Fuel & Petrochemical Manufacturers that they say are ‘demonstrably false,’ do ‘a disservice to voters’ and ‘tarnish the politicians’ who support EVs. The ads, ‘All of Us’ and ‘Open Roads,’ which we covered earlier this week, claim that the EPA is ‘rushing to ban new gas powered cars’ — a claim EDF Action says ‘is verifiably false.’ EDF cited the law that obligates news outlets to broadcast political candidates’ statements, even when they’re false, but asserted that they’re under no such obligation when it comes to AFPM. ‘Therefore, we believe you should immediately stop airing the ads on your station,’ the group said. In response to EDF Action’s complaint, AFPM said, ‘The administration’s policies are designed to ban the sale of new gas-powered cars and trucks, restricting American families’ ability to choose the car that best suits their needs. We stand by our ads and will continue to fight for consumer choice and energy security.’” [Politico, 2/15/24 (+)]

 

EV Batteries & Charging

 

EV Chargers Take On Natural Gas For Power System Flexibility — “Electric vehicles are starting to challenge fossil fuels not only on the road, but also within the power grid. EVs are being used to balance power markets in places including the UK, mainly by way of tactical charging. They’re starting to compete with natural gas and oil generators to address grid congestion, and while gas has the edge today, BNEF expects this advantage to erode as the EV fleet grows. Across Europe and the US, renewable electricity increasingly is wasted as grids lack the capacity to move power to where it can be used at the time it’s produced. Flexible electricity demand helps address this by changing the timing of consumption to make more efficient use of electricity network infrastructure, enabling more power to flow through existing wires. BNEF has analyzed the latest data showing the extent to which EVs can support local distribution networks in the UK. To improve efficiency and save on costly upgrades, distribution system operators such as UK Power Networks and National Grid Electricity Distribution hold competitive tenders. Grid operators dispatch demand and generation by requesting that flexibility service providers turn up or down at specific times.” [Bloomberg, 2/14/24 (+)]

 

EV Sales & EV Transition

 

Renault And Stellantis To Increase Costs Cuts In ‘Turbulent Year’ — “Carmakers Stellantis and Renault both warned of the need for cost cuts despite rising profits, as the industry heads into a ‘turbulent year’ of economic and political uncertainty, and lower margins from pivoting to electric vehicles. Shares in both groups rose on Thursday morning after Renault raised its dividend and Stellantis announced a €3bn share buyback. But both carmakers warned they needed to cut electric vehicle costs in the current financial year as they increase sales. ‘Cost reduction remains our obsession,’ said Renault’s chief executive Luca de Meo on Thursday, adding that the carmaker was aiming to reduce EV costs by 40 per cent, with plans to cut costs from petrol or hybrid models by 30 per cent by 2027. Stellantis’s finance chief Natalie Knight said profits from electric models remained ‘lower than on [internal combustion engine] vehicles’, which ‘does have an effect on margins’. She added that the carmaker, which owns Jeep, Ram and Peugeot and is planning to launch eight electric models in the US this year, needed to cut costs.” [Financial Times, 2/14/24 (=)]

 

Cash Haul Drives Renault, Stellantis Shares Higher — “For Stellantis, the return of cash was a relief after agreeing big pay increases to end a prolonged strike by workers in North America last year, which knocked profits in the second half. At Renault, the stronger cash position and margin growth delivered in 2023 results on Wednesday night were the latest sign that a turnaround under Chief Executive Luca de Meo is bearing fruit. Renault shares were last up more than 7% at 1041 GMT, set for their best day in more than a year and having touched their highest since July. That compares with a 0.7% rise in Paris’ benchmark CAC 40 (.FCHI) … Chief Financial Officer Thierry Pieton told analysts on Thursday he expects low single-digit sales volume growth this year. Sales returned to growth in 2023 after four years of consecutive declines as it undergoes a major revamp. He also sees some benefit from higher car prices and easing raw material costs as the French carmaker prepares to launch 10 models in 2024, including two fully electric cars, the Scenic and the R5, and two hybrids. Morgan Stanley was positive in its response, but injected a note of caution.” [Reuters, 2/14/24 (=)]

 

Biden's Drive For EVs Collides With Detroit's Profit Machines — “The Biden administration and automakers are in the final stages of negotiating over ambitious new rules to accelerate the electric-vehicle transition that could cost Detroit’s automakers billions and fuel an election-year clash over climate policy. The White House could enact proposed Environmental Protection Agency regulations as soon as March that would mandate dramatic reductions in tailpipe emissions. The administration proposal would require boosting U.S. EV market share to 67% by 2032 from less than 8% in 2023. General Motors (GM.N), opens new tab, Ford (F.N), opens new tab and Stellantis (STLAM.MI), opens new tab — the European parent of U.S.-based Ram and Jeep - have warned they cannot profitably transition their truck-heavy U.S. fleets that quickly, according to a Reuters analysis of automakers’ sales data and a review of comments to regulators. The United Auto Workers, which represents about 146,000 workers at the Detroit Three, has endorsed Biden for re-election. But the union has told the administration its drive for EVs puts jobs at risk.” [Reuters, 2/15/24 (=)]

 

US Auto Retailers' Falling New Vehicle Margins Compress Quarterly Profits — “Several U.S. auto retailers reported dour fourth-quarter profits this week, as price cuts and incentives to lure in buyers in a turbulent economy put a strain on new-vehicle margins. Higher vehicle production, which has eased supply, has also trimmed dealer margins, auto retail chain executives said this week. This is in contrast to high prices that auto dealers commanded over the past few years, taking advantage of strong demand for new vehicles and short supplies of popular models due to supply chain bottlenecks. ‘Discounts and incentives on new-vehicles continue to rise, and that is putting downward pressure on pricing and profitability for dealers and automakers alike,’ a Cox Automotive report, opens new tab showed on Tuesday. But despite lower prices and higher incentives, U.S. new-vehicle sales pace slowed in the first month of the year, the report said. Electric vehicles (EV) have also been a cause of concern for retailers. They have had to shell out more to market EVs, which have seen varying levels of demand owing to their higher maintenance costs and lower resale values. To make matters worse, EV prices have come down significantly in the U.S. in the past year, led by price cuts at Tesla (TSLA.O), opens new tab, Cox added.” [Reuters, 2/14/24 (=)]

 

January 2024 Breaks Global EV Sales Record: Take That, Haters — “Whelp, that was fast. Yesterday morning CleanTechnica took note of a glimmer of hope for EV sales amid a spate of bad news, and just a few hours later along comes the research firm Rho Motion to drop an email in our inbox with a whole truckload of good news. Global EV Sales Break Record For January So much for cautious optimism on the state of the global electric vehicle market. Rho Motion crunched the numbers and came up with a record breaking sales pace of 660,000 electric vehicles sold globally in January. That was 12 months ago, back in January 2023. This year’s January EV sales blew past that mark by 69% for a total of more than 1 million. ‘In the EU & EFTA & UK, EV sales have grown by 29% y-o-y, 41% in the USA & Canada, and almost doubled in China,’ Rho Motion added, with EFTA referring to the European Free Trade Association. Subsidy cuts in some jurisdictions had an impact on EV sales in January compared to December, but the impact did not offset the year-over-year gains.” [CleanTechnica, 2/14/24 (+)]

 

US EV Sales Up 385% Since 2019, Normal “ICE” Vehicle Sales Down 14% — “We recently produced several exclusive reports on US electric vehicle sales and overall US auto industry sales trends. Via those reports, you can explore the top automakers or auto brands in terms of their own internal EV share or in terms of their share of the overall EV market, or you can explore growth of the US EV market as a whole, or you can explore trends in auto brand sales broadly, or you can look at trends in EV market share, or you can look at model-by-model EV sales growth. There are a lot of fun ways to cut the pie and see what’s been going on. One thing that stands out in these reports compared to any others you might find on the internet on any of these topics is that I go back to 2019 to tease out the comparisons and trends over time.” [CleanTechnica, 2/14/24 (+)]

 

New Vehicle Transaction Prices Drop, Luxury Brands Offer Significant Discounts — “According to an analysis by Kelley Blue Book, the ATP for new vehicles in the United States decreased by 2.6% in January 2024. According to an analysis by Kelley Blue Book, a subsidiary of Cox Automotive, the average transaction price (ATP) for new vehicles in the United States decreased by 2.6% in January 2024. This is a 3.5% drop from the average transaction price recorded in January 2023. As inventory levels normalize, discounts made up 5.7% of the average purchase in January, compared to 2.8% a year ago. However, this trend is not uniform across all market segments, with luxury cars and full-size pickup trucks commanding the highest discounts. While some brands still have low inventory numbers, most car dealers have an adequate supply of new cars. Consumers are displaying a heightened inclination toward high-end vehicles, with 19.8% of purchases in January coming from luxury brands. The average cost of a luxury brand car declined to $60,978, marking the lowest ATP since the summer of 2021.” [CBT News, 2/14/24 (+)]

 

Lack Of Exposure, Experience Is Also Hurting EV Sales: Consumer Reports — “I think every electric vehicle owner has had that ‘a-ha’ moment; that instance when you just sort of get how everything works, when fear gives way to excitement about the advantages of moving on from gasoline, when everything clicks. Sometimes that happens behind the wheel. Other times, it happens when someone you know and trust can show you the way. Regardless of how it happens, that lack of firsthand and secondhand experience may be a big factor in holding back wider EV adoption. That leads off this midweek edition of our Critical Materials morning news roundup. Also on today’s reading list: that hot new Chrysler concept touts batteries of the future that do not quite exist yet, and that unusual Sony-Honda tie-up is supposedly still a go. Let’s dig in. Some will tell you the EV market is stalling out in 2024. Here at InsideEVs, we believe it’s far more likely that we’re in between adoption waves; that people are still buying EVs, just not at the rapid-fire rate many predicted last year; and that customers are waiting for EVs to get cheaper, and for the charging networks to get better and more expansive. Various breakthroughs should happen in the next few years that are expected to make those things happen. (I’d also argue that the massive sales of hybrid cars as of late proves people want to break up with gasoline, if given the chance.)” [Inside EVs, 2/14/24 (=)]

 

 

 

California

 

California Regulator OKs $1.9B Plan To Expand Zero-Emission Vehicle Infrastructure — “The California Energy Commission (CEC) on Wednesday approved a $1.9 billion plan to expedite the rollout of statewide electric vehicle (EV) charging networks and hydrogen refueling stations. This investment will serve to bolster infrastructure for light, medium and heavy-duty zero-emission vehicles (ZEV) across the Golden State, with funding distributed over the next four years through the CEC’s Clean Transportation Program. ‘Our clean transportation future is here with more than one in four new cars sold in our state being electric,’ Gov. Gavin Newsom (D) said in a statement. At least 50 percent of the ZEV infrastructure will be directed toward low-income and disadvantaged communities — those often hit hardest by air pollution, the governor’s office stressed. The total $1.9 billion is expected to result in 40,000 new chargers statewide, adding to the almost 94,000 public and shared private chargers installed today, according to the CEC.” [The Hill, 2/14/24 (+)]

 

California Receives $63.7 Million For EV Charging Infrastructure — “Calaveras County has a total of 21 EV charging ports across six locations. This Tesla Supercharger located in Jackson is the closest option for some Calaveras residents. Marie-Elena Schembri/Calaveras Enterprise In January, President Joe Biden announced the disbursement of nearly $150 million to 24 grant recipients across the country to bring 4,500 existing electric vehicle (EV) charging ports up to par and improve the reliability of EV charging. This grant is funded through a new federal grant program, the National Electric Vehicle Infrastructure (NEVI) Formula Program, under the Biden administration’s Bipartisan Infrastructure Law. The Bipartisan Infrastructure Law aims to invest $550 billion in updating the nation’s infrastructure, including roads, bridges, mass transit, water infrastructure, and broadband, and is, according to the U.S. Department of Transportation, ‘the largest long-term investment in our infrastructure and economy in our nation’s history.’” [Calaveras Enterprise, 2/14/24 (+)]

 

California EV Sales Are Falling. Is It Just Temporary, Or A Threat To State Climate Goals? — “After years of rapid expansion, California’s booming EV market may be showing signs of fatigue as high vehicle prices, unreliable charging networks and other consumer headaches appear to dampen enthusiasm for zero-emission vehicles. For the first time in more than a decade, electric vehicle sales dropped significantly in the last half of 2023. There are even signs that Californians may be growing tired of Tesla — or at least weary of its outspoken chief executive, Elon Musk — as state Tesla sales fell 10% in the final quarter of last year. It’s unclear whether the declines are a mere blip or the beginning of a downward trend, but the news is already raising questions about California’s ability to meet its ambitious climate goals, including a pledge to ban the sale of new gasoline- and diesel-powered cars and light trucks by 2035. ‘It’s an interesting time for the automakers and consumers,’ said Greg Bannon, director of automotive engineering at AAA. ‘The government and automakers have spent billions on something consumers may not want.’” [Los Angeles Times, 2/15/24 (=)]

 

This Major US City Wants To Ban New Gas Stations — “Sacramento, capital city of the EV-loving Golden State, is the latest city proposing to ban new gas stations or upgrading existing stations, unless of course you’re adding electric vehicle charging. The government recently issued a 2040 Sacramento General Plan, first reported by OPIS, which calls for ‘future-ready’ gas stations. The plans states that the ‘city shall prohibit the establishment of new gas stations or the expansion of new fossil fuel infrastructure at existing gas stations unless the project proponent provides 50kW or greater direct current fast charger (DCFC) electric-vehicle charging stations on site at a ratio of at least one new charging station per one new gas fuel nozzle.’ The plan also calls for setting up requirements for EV charging infrastructure in new and expanded gas stations citywide. Of course, Sacramento isn’t the first California city to have passed a ban or moratorium on gas stations, with Petaluma leading the charge back in 2021, followed by Calistoga, Rohnert Park, Sebastopol, Cotati, Santa Rosa, Novato, Windsor, American Canyon, San Anselmo, Fairfax, and Yountville. Los Angeles and Angels Camp have pending bans in the works.” [Electrek, 2/15/24 (=)]

 

Florida

 

Op-Ed: Misstep On State Energy Policy Risks EV Advancement — According to Mary Linn, “Most Floridians keep an eye on our spending. We scour ads for sales; we shop the buy-one, get-one deals at Publix; and we make sure to get our kids’ school supplies during sales tax holidays. However, members of the Florida Legislature are now proposing energy legislation that would block taxpayer savings, create more government red tape and threaten American security by making us even more dependent on foreign oil and gas. A proposed omnibus energy bill (Senate Bill 1624 by Sen. Jay Collins and House Bill 1645 by Rep. Bobby Payne) would eliminate fuel efficiency considerations for state vehicles and establish cumbersome barriers for adding fuel-saving electric vehicles (EVs) to our state fleets. While EVs have historically had higher purchase prices, they have much lower fuel and maintenance costs — and that means evaluating the cost over their full life cycle will bring Florida long-term savings. Incentives are also available under the Inflation Reduction Act, significantly reducing the upfront cost of buying electric vehicles. Electrifying state and local government fleets can dramatically reduce expenditures for fuel and maintenance. By transitioning to electric fleets as fossil fuel vehicles are retired, state and local governments can save significant amounts of money for taxpayers.” [Orlando Sentinel, 2/14/24 (+)]

 

Mississippi

 

New EV Charging Stations Two To Three Years Away, MDOT Says — “In Mississippi, only about 3 out of every 10,000 people own an electric vehicle — the lowest ratio of any state in the nation. No state has fewer public electric vehicle charging stations per capita than Mississippi. With 145 total stations, the state has just under five for every 100,000 people, much lower than the national rate of 19 per 100,000, according to data from the U.S. Department of Energy. But with a boost of $50 million in federal funding, Mississippi plans to add about 30 new stations, which will be spread out along the state’s busiest highways. Jessica Dilley, the director of Alternative Program Deliveries with the Mississippi Department of Transportation,told Mississippi Today that the agency projects that new charging stations will start showing up by 2026 or 2027. The $50 million, which came from the Infrastructure Investment and Jobs Act, is coming to the state over a five-year period. As of now, MDOT is still in its planning phase and hasn’t spent any of the money. Dilley said there was an adjustment period for the agency, versus its counterparts in other states that already had electric vehicle programs.” [Mississippi Today, 2/14/24 (=)]

 

Wisconsin

 

EV 101: Wis. EV Infrastructure Bill To Expand Charging Access, Or Risk Losing $78 Million In Federal Funds To Make It Happen — “Range anxiety is one of the biggest reasons people who are interested in owning an electric vehicle, do not get one. The Pew Research Center found Americans who are confident that the country will build the necessary infrastructure are more likely to say they would consider buying an EV. It is Leon Dulac’s reason he has held off for now. ‘I love fishing. I tow a boat around, and the larger vehicles that you need to tow a boat, they’re going consume a lot of power. And the infrastructure just isn’t there for me to go up to northern Wisconsin or wherever, and fish for an entire day and then try and make it all the way back home.’ The Alliance for Automotive Innovation states there are about 25 EVs for every public port in Wisconsin. For the most part, private entities, like the Midwest Renewable Energy Association in Custer, are slowly building that infrastructure.” [WSAW-TV, 2/15/24 (=)]

 

 

 

Europe

 

French Government's €100-A-Month EV Leasing Plan Falls Victim To Its Own Success — “In December 2023, the French government kicked off an ambitious program to encourage low-income households to buy electric cars and to broaden the appeal of EVs. The initiative entailed leasing 25,000 European-manufactured EVs at a monthly rate of €100-150 ($108-160), without any deposit. The response was overwhelming and the government received a staggering 90,000 applications within a few weeks, surpassing the available supply. A bunch of factors led to the skyrocketing popularity of the scheme. One of them was of course the no-deposit affordable and renewable lease. However, the government seems to have gone above and beyond to ensure the program’s success. It even provided a subsidy of up to €13,000 ($13,950) per EV, with the option to buy the vehicle.” [Inside EVs, 2/14/24 (~)]

 

 

 

RESPONSES TO THIS EMAIL ARE NOT MONITORED

 

To receive Cars Clips or other Clean Vehicles Coalition (CVC) materials, please contact Al-Batool Ibrahim

(aibrahim@partnershipproject.org)

 

For any other questions or comments, please contact Mitch Dunn

(mitch@beehivedc.com)