Cars Clips: May 8, 2024
Congress |
Federal legislation proposed to rescind electric vehicle credits — “Purchasing an electric vehicle could become a lot more expensive. Tax credits for purchasing new and used electric vehicles, the federal investment tax credit for installing electric charging stations, and closing a leasing loophole could end soon. Senator John Hoeven introduced the Eliminating Lavish Incentives to Electric Vehicles Act to cut off some tax benefits for purchasing electric vehicles and charging stations. ‘This legislation is specifically aimed at repealing costly tax subsidies for EVs and EV infrastructure that are distorting the auto market and giving assistance to those who don’t need it,’ said Senator Hoeven. Right now, a $7,500 credit gets taken off the purchase price of new EVs at the dealership.” [KYFR-TV, 5/7/24 (=)]
Vehicle & Engine Manufacturers |
Fisker Ocean Production Halt Means 500 Magna Workers Laid Off — “Fisker is in trouble. While we've heard that some other automakers may be interested in giving the EV startup a lifeline, the California headquarters has closed in the meantime and contract manufacturer Magna says it's not planning to make any more Ocean SUVs. And for Magna, that also means job cuts. Welcome back to Critical Materials, your daily roundup for all things EV and automotive tech. Today, we're talking about Apple's rumored deal with Rivian, Magna's big Fisker-drivem layoff, and the feds probing Tesla for information about its Autopilot recall. Let's dig in.” [Inside EVs, 5/7/24 (=)]
Kia Teases EV3 Compact Electric SUV — “Today, Kia released teaser images showing, well, not much of an upcoming compact electric SUV. We saw the EV3 in concept form last October. It wasn’t a miniature version of the brand’s angular EV9 3-row SUV – the 2024 World Car of the Year. But the two bear a family resemblance. They share almost fractal character lines in the doors and fenders and linear ‘star map’ lights. But the EV3’s squat proportions lent it a toy bulldog appearance next to the EV9’s mastiff size.” [Kelley Blue Book, 5/7/24 (=)]
Rivian sticks with EV forecast despite wider-than-expected loss — “Rivian Automotive Inc. fell short of Wall Street’s earnings expectations to start the year as the automaker works to revamp its manufacturing operations and boost output of electric vehicles. The company posted an adjusted loss of $1.24 a share for the first quarter, according to a statement Tuesday. That was worse than the average $1.15 deficit in analyst estimates compiled by Bloomberg. Sales in the period were roughly in line with expectations after Rivian last month reported better-than-expected deliveries. Despite the uneven quarter, Rivian stood by its plan to build 57,000 vehicles this year as the company works to retool its Normal, Illinois, plant to reduce costs and support production growth. The company also continues to see an adjusted loss before interest, taxes, depreciation and amortization of $2.7 billion for 2024.” [Detroit News, 5/7/24 (=)]
U.S. Escalates Tesla Autopilot Probe After 20 More Crashes Reported Since Company Installed Fix — “Federal regulators are pushing Tesla for more information on recent safety changes to the electric carmaker’s Autopilot technology, the latest round of scrutiny for the controversial driver-assistive feature, after the company issued software fixes to over 2 million cars.” [Forbes, 5/7/24 (=)]
Tesla must provide NHTSA with Autopilot recall data by July or face up to $135 million in fines — “The National Highway Traffic Safety Administration is pressing Tesla for answers about changes the company made to its Autopilot driver assistance system following a voluntary software recall in December that affected about 2 million vehicles in the U.S. Tesla must meet a deadline of July 1 to provide information to the regulator or face fines up to $135.8 million, according to a letter sent by the NHTSA to company on May 6. The recall was intended to improve Tesla’s driver-engagement systems, which are used to monitor whether drivers are safely using features like traffic aware cruise control, lane keeping and auto steering — part of Autopilot.” [CNBC, 5/7/24 (=)]
Study: Owners, Others See Tesla Differently — “Don’t you mean the country? No. The company. Tesla. A new poll from YouGov finds that Tesla owners and non-owners have radically different opinions about the company. And, while the company may win more headlines than any rival, the news doesn’t seem to change how many Americans would buy one. YouGov’s BrandIndex surveys track Americans’ feelings about the “buzz” around popular brands in many markets. Researchers ask respondents whether they’ve heard more positive or negative things about a brand over the last two weeks. The researchers instruct the respondents to consider media sources and commentary from friends and family. On Tesla, researchers found an unusually stark divide.” [Kelley Blue Book, 5/7/24 (=)]
In Tesla Autopilot probe, US prosecutors focus on securities, wire fraud — “U.S. prosecutors are examining whether Tesla (TSLA.O), opens new tab committed securities or wire fraud by misleading investors and consumers about its electric vehicles’ self-driving capabilities, three people familiar with the matter told Reuters. Tesla’s Autopilot and Full Self-Driving systems assist with steering, braking and lane changes - but are not fully autonomous. While Tesla has warned drivers to stay ready to take over driving, the Justice Department is examining other statements by Tesla and Chief Executive Elon Musk suggesting its cars can drive themselves.” [Reuters, 5/8/24 (=)]
Electric Vehicles |
With or Without Tesla, More E.V. Chargers Are Coming — “Last week, Tesla laid off most of its electric car charging team, raising doubts about the feasibility of the Biden administration’s ambitious E.V. expansion plans. Though Tesla accounts for more than half of the fast E.V. chargers currently installed in the United States, and though it has continued to build them faster and cheaper than anyone else, the E.V. charging market may no longer need Tesla to lead it. In fact, experts I spoke to believe the E.V. charging industry is set to expand quickly over the next few years. Let me explain why.” [New York Times, 5/7/24 (=)]
What Happens To The Federal Money Tesla Won For Superchargers — “Elon Musk’s decision to suddenly dissolve Tesla’s electric vehicle charging division raises lots of thorny questions. Such as: “Huh?” And also: “He did what now?” But then, there's also the question of what will happen to the millions of dollars in federal funding that Tesla has won to build new fast-charging stations. Tesla has been one of the largest beneficiaries of the Biden Administration’s National Electric Vehicle Infrastructure (NEVI) program, which set aside some $5 billion to build out fast charging stations along major highways and is just starting to bear fruit. Tesla has won funding for 69 sites so far, totaling $28.8 million, according to the consulting firm EVAdoption.” [Inside EVs, 5/7/24 (=)]
$7.5 Billion In Federal Funds Yield Only 8 EV Charging Stations — “The Biden Administration’s $7.5 billion effort to jump-start the electric-vehicle charging landscape is moving very, very slowly. Now more than two years after the program was signed into law in late 2021, only eight chargers have been put in place. In April, with some fanfare, cars plugged into a station in Bradford, Vermont. Defenders encourage patience, saying the pace will quicken rapidly later this year. The allocated dollars are $5 billion through the National Electric Vehicle Infrastructure (NEVI) program and $2.5 billion in Charging and Fueling Infrastructure (CFI) discretionary grant funding via the Infrastructure Investment and Jobs Act.” [Autoweek, 5/7/24 (=)]
Podcast: Innovations in Electric Vehicle Batteries, with Micah Ziegler — “In this week’s episode, host Kristin Hayes talks with Micah Ziegler, an assistant professor at the Georgia Institute of Technology, about the science, policy, and economics behind electric vehicle (EV) batteries. This episode continues a multipart series on EVs, which covers some of the most practical matters that EV users need to know. In this second episode of the series, Ziegler discusses the history of the development of EV batteries (which might be longer than you think), the materials that are used in batteries, and technological advancements that have improved battery efficiency over the past century. Ziegler also highlights policy tools that may be especially effective at reducing the costs of clean energy technologies such as EV batteries.” [Resources Radio, 5/7/24 (=)]
Move over, EVs. AI needs critical minerals. — “VIBE SHIFT: We knew electric vehicles needed critical minerals. Now, the metal mining panic has a new focus: artificial intelligence. Biden administration officials at the Milken Institute Global Conference in Los Angeles are wringing their hands over whether they can ramp up production to meet AI’s demands.” [Politico, 5/7/24 (=)]
Bipartisan lawmakers call for critical minerals funding boost — “Bipartisan lawmakers called on a House Appropriations subcommittee Monday to ramp up funding for federal work on critical minerals in 2025 spending bills to reduce the nation’s reliance on China. Democratic Rep. Kathy Castor of Florida, Republican Rep. Rob Wittman of Virginia and eight of their colleagues said the Subcommittee on Energy and Water Development should boost funding for the Energy Department’s work, arguing that doing so would be a strategic move. Specifically, the letter requests $76 million for the DOE’s Office of Advanced Materials and Manufacturing Technologies’ secure and sustainable materials program, which aims to increase domestic availability of critical materials and identify and support alternatives.” [E&E News, 5/7/24 (=)]
EVs are getting better fast, and you want one. Why you might want to lease, not buy. — “I’d lease, not buy, if I were shopping for an electric vehicle today. Not because I doubt EVs’ benefits, convenience or reliability, but because volatile prices and evolving technology make them likely to improve faster — maybe a lot faster — than we’re used to with the mature technology and economics of internal combustion engines, or ICE.” [Detroit Free Press, 5/8/24 (=)]
Vehicle Emissions |
Why switching to an EV is good for the climate — “Jarod Kelly of Argonne National Laboratory studies the climate-warming emissions created over a vehicle’s entire lifetime. He says manufacturing an EV typically produces a little more carbon pollution than manufacturing a gas-powered vehicle because of the energy needed to make EV batteries. But his research shows that switching to an EV is still better for the climate. On average, driving an EV creates so much less carbon pollution than a comparable gas-powered car that within 20,000 miles, it will have more than offset the extra carbon pollution created when it was built.” [Yale Climate Connections, 5/8/24 (=)]
States & Local |
EV driven by Pleasanton family had steering problem before deadly crash, fire: complaint — “New details are emerging from the deadly car crash that killed a family of four in Pleasanton. A complaint to safety regulators raises concerns about the electric vehicle driven by the family -- by car maker VinFast. All four members of the George family - including two young children - died in the crash in Pleasanton nearly three weeks ago.” [KABC-TV, 5/7/24 (=)]
Could electric vehicle issues have played a role in crash that killed family of four? — “The Pleasanton Police Department has confirmed that the family of four who died in a single-vehicle car crash last month did not own the electric vehicle they were driving and it now appears that same car might have previously had issues with losing control of the steering, according to a complaint filed with the National Highway Traffic Safety Administration. A spokesperson for VinFast — the vehicle’s manufacturing company that is based in Vietnam — told the Weekly that the company could ‘neither confirm the authenticity of the complaint nor the information contained therein.’” [Pleasanton Weekly, 5/7/24 (=)]
Report: Michiganders are saving thousands on EVs thanks to Inflation Reduction Act — “A new US Treasury report shows drivers who switch from gas to electric vehicles are scoring millions of dollars in instant savings at the dealership this year through federal tax incentives that were made available through President Joe Biden’s Inflation Reduction Act.” [Gander Newsroom, 5/7/24 (=)]
‘Jobs of tomorrow’: Michigan automakers get federal funds to train local workers for EV jobs — “New federal and state partnerships announced this week by President Joe Biden’s administration are set to further position Michigan as a national leader in electric vehicle (EV) manufacturing, namely by ensuring Michigan workers are trained and ready for new jobs. Vice President Kamala Harris visited Detroit this week, where she touted the US Department Department of Energy’s declaration of Michigan as the nation’s latest “Workforce Hub” for EV manufacturing—which she said is designed to ensure Michiganders have access to training, education, and services that provide a path to a “good career” within their local communities.” [Gander Newsroom, 5/7/24 (=)]
Michigan has 100-plus new public EV chargers. Here’s where to find them. — “Michigan’s electric vehicle infrastructure is growing faster than the national average. In 2023, the state increased its number of public direct current (DC) fast charging stations by 52%. That topped the U.S. increase of 47%, according to Anderson Economic Group, an East Lansing-area consulting group.” [MLive, 5/8/24 (+)]
180 jobs potentially coming to Aiken Co. thanks to electric vehicle manufacturer — “Columbia Vehicle Group, an electric vehicle manufacturer, announced Tuesday that Aiken County will be the location for the company’s first South Carolina operation. The company’s $12.2 million investment will create 180 new jobs. Part of the Nordic Group of Companies, Columbia manufactures pure electric vehicles for industrial and commercial markets. The company’s products include golf carts, utility vehicles, maintenance vehicles and e-bikes are distributed around the world. Columbia is relocating manufacturing operations from Florida and Wisconsin to Aiken County for closer proximity to customers and its supply chain. The company will purchase and improve the existing 154,480-square-foot facility located at 2063 University Parkway in Aiken.” [WJBF-TV, 5/8/24 (=)]
Two electric vehicles ranked among Houston's best-selling models for the first time — “Two all-electric vehicles, both from Tesla, became the first of their kind to rank among the Houston-area’s best-selling models last year, according to Houston-based InfoNation Inc. Tesla’s Model Y SUV debuted on the list at No. 10 while the Model 3 made its first appearance at No. 18. More than 5,000 of the Model Y and 4,000 Model 3s were sold last year. Tesla cut the prices of both in 2023.” [Houston Chronicle, 5/7/24 (=)]
International |
South Korea Plans $7 Billion Push to Pivot EV Battery Industry Away From China — “South Korea is dedicating around $7 billion to help wean its electric-vehicle battery supply chain away from China and align more with U.S. trade guidelines. The Ministry of Trade, Industry and Energy in Seoul said Wednesday that it will provide 9.700 trillion won ($7.14 billion) in state financing to the local EV-battery industry this year to build up the country’s supply chain to continue to benefit from U.S. rules. The financial aid, which involves cheaper state loans and tax incentives, will help local EV-battery makers source critical minerals from the U.S. and U.S. free-trade partners. The money is also aimed at supporting the development of lithium-metal batteries or alternatives to replace graphite, a key battery ingredient, the ministry said.” [Wall Street Journal, 5/8/24 (=)]
China’s booming electric vehicle companies eye U.S. competitors they see as ‘not ready’ — “On the long list of disputes between the United States and China, electric vehicles enjoy an increasingly prominent role. Growing stars of the auto world, EVs are also now the subject of intense commercial competition and national security concerns for the world’s two largest economies. And this metropolis known as China’s Silicon Valley is at the heart of the country’s bid for dominance in the lucrative global market. Chinese companies such as BYD, the biggest global rival to America’s Tesla, are forcing Western automakers to change their approach to electric vehicles if they want to remain competitive in a growing industry.” [NBC, 5/7/24 (=)]
Research, Analysis & Opinion |
Opinion | Electric vehicle mandates are an attack on liberty and free enterprise — “Last we checked, nobody ever thought to mandate cell phones. The reason the Biden administration and its allies in California are using coercive government force to compel electrification is because consumers correctly see that EVs aren’t ready for prime time. Nowhere is that clearer than with the current push to force the electrification of the nation’s heavy-duty fleet. Electric cars are more expensive, have less range, and are less reliable than their conventional counterparts. But there are at least some use cases where they can make sense– such as short commutes in urban areas, with significant charging infrastructure. Heavy-duty vehicles are different.” [Daily News, 5/7/24 (-)]
Opinion | Biden’s EPA is giving China the win with emissions mandates — “Not only will this regulation impose costly burdens on carmakers, consumers and utilities, but these hardships will also not actually result in emissions reductions that could be meaningful in combating climate change. Instead, the regulation will enrich the Chinese companies that control the lithium supply chain and will put the U.S. transportation sector at the mercy of the Chinese regime. According to current theories of climate change, greenhouse gas, or GHG, emissions dissipate globally and affect climate equally. Therefore, what matters in potentially mitigating the impacts of climate change is reducing the total amount of greenhouse gases emitted globally. According to the EPA, the U.S. transportation sector accounts for 29% of the country’s total GHG emissions (6,341.2 million metric tons in 2022). Of that, light-duty vehicles account for 58% of the transportation sector’s emissions, or 1,066.6 million metric tons of GHG emissions.” [Washington Times, 5/7/24 (-)]
Op-Ed: EV vote drives marginalized communities in the wrong direction — “In a pivotal vote affecting America's automotive landscape, a bipartisan effort to halt the EPA's strict emissions standards was defeated. This crucial piece of legislation from Senators Mike Crapo, R-Idaho, and Joe Manchin, D-West Virginia, aimed to stop the U.S. Environmental Protection Agency's punitive and unachievable emissions standards that would effectively mandate a near-complete shift to electric vehicles by 2032. The EPA policy in question, which will limit consumer choice and undermine national security, merits further examination for its effects on marginalized communities. The shift to more restrictive automotive regulations should be carefully considered in the broader context of accessibility, affordability, and the broader economic implications for all segments of society.” [Center Square, 5/7/24 (-)]
Report: 4 of 10 Americans live with unhealthy air, and EVs can help — “Air pollution remains a major threat to the health of many Americans, but stricter emissions rules could help, according to the American Lung Association. The organization’s 25th annual “State of the Air” report found that 131 million people—39% of the U.S. population—live in areas with unhealthy areas of air pollution. And spikes in deadly air pollution are the most severe recorded in the history of the report. That’s based on air quality assessment data from 2020-2022 (the most recent available), and accounting for new EPA particulate-pollution rules finalized in February 2024. The report also found that people of color are disproportionately exposed to air pollution. A person of color in the U.S. is 2.3 times more likely than a white person to live in a community with a failing grade on all three of the report’s measures for air pollution—short-term particle pollution, long-term particle pollution, and ozone.” [WHTM-TV, 5/7/24 (=)]
Electric vehicles are more expensive than originally thought, study says — “The average purchase price of electric vehicles has always been higher than that of gas-powered vehicles, but a new study shows that per mile driven, EVs are much more expensive. Electric vehicles, according to the ISeeCars study, are driven 20% less than gas-powered vehicles. This means their cost per 1,000 miles driven per year is nearly 64% more than gas-powered cars. Hybrid vehicles, which combine aspects of electric- and gas-powered motors, are also driven less, but by a much narrower margin – less than 5% – compared to gas-powered cars, according to the study.” [Just The News, 5/7/24 (-)]
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 Patience Warren