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Continuing EV Bloodbath Leaves Harris With A Lot To Answer For

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From the Daily Caller News Foundation

By DAVID BLACKMON

 

Once the ongoing effort by the legacy media to reinvent presumptive Democratic nominee Kamala Harris as a dynamic leader and competent campaigner passes, we will presumably enter the part of the presidential race in which we actually examine her real record on the key issues.

When — or if — that time ever arrives, the vice president will have a lot to explain where energy policy is concerned.

Last week I provided a high-level overview of some of the radical policies Harris has supported over her time in office in California and Washington, D.C. Today, I will address Harris’s advocacy for electric vehicles and buses, and the expanding bloodbath it has helped to create.

Let’s begin with a speech Harris delivered in Brandywine, Maryland on December 13, 2021. There, Harris spoke to an audience including Energy Secretary Jennifer Granholm, assorted Maryland officeholders, and workers at the Brandywine Highway Maintenance Facility. As part of her remarks, the vice president delivered a ringing endorsement of electric vehicles and her administration’s plans to try to subsidize them into automotive market dominance.

“The pollution from vehicles powered by fossil fuels has long harmed the health of communities around our country,” Harris said. “But there is a solution to this problem, and it is parked right behind me … electric cars, trucks, and buses — they don’t produce tailpipe emissions that irritate the nose and eyes, that decrease lung function, that increase susceptibility to respiratory illness.”

Harris added: “That means manufacturing millions of electric cars, trucks, and buses right here in our country. That means outfitting thousands of EV — electric vehicle — repair garages, just like this one. And it means installing a national network of EV chargers.”

That speech took place after congress had enacted the 2021 Infrastructure Investment and Jobs Act containing more than $200 billion in clean energy subsidies. Congress passed the Orwellian-named Inflation Reduction Act and its $369 billion in similar subsidies eight months later.

How has all that worked out for America three years down the road? As I pointed out a few weeks ago, every pure play EV maker in the U.S. is now either in bankruptcy or teetering on the brink. Ford reported last week that its EV division, Ford Model e, lost about $50,000 per unit sold during the second quarter, and that was the best quarterly result the company has reported in over a year. Even Tesla has started the year with a pair of disappointing quarterly results amid rapidly slowing consumer demand for electric vehicles.

The Biden-Harris dreams of subsidizing a national fleet of high-speed EV chargers into existence has also come up a crapper. The Washington Post and others reported in April that Granholm’s Energy Department has invested a whopping $7.5 billion to install 5,000 such charging stations around the country but had only managed to activate 7 to that point.

Harris also endorsed a $5 billion EPA-managed program included in the Infrastructure law to fund the adoption of battery electric buses for targeted school systems around the country. Thus far, EPA has released two tranches of federal grants totaling $1.9 billion, but to disappointing results. Of the 389 school districts targeted by the grants, just 23 have reported successful acquisition of a total of 60 buses that have been placed into service. But another 50 of those districts have since withdrawn from consideration by the program.

“EPA anticipates that transitioning to new technology school buses will take time, which is why the project period is two years with an option to extend where needed and justified,” said EPA spokeswoman Shayla Powell.

Oh.

IRA subsidies for EV city buses have created perhaps the worst set of boondoggles of all. The electric buses are so costly, require such high maintenance and have such limited charging ranges that even extremely liberal cities like Austin, Texas  and Jackson, Wyoming have quit trying to change over their fleets. The 2023 bankruptcy of heavily subsidized Proterra, the biggest EV bus maker, hasn’t helped.

It is hard to identify any aspect of the Biden-Harris suite of EV-related policies that can honestly be called a success. As her party’s apparent nominee, Harris will have much to answer for — that is, if the media ever gets around to asking the relevant questions.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

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Automotive

Nissan, Honda scrap $60B merger talks amid growing tensions

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MxM News

Quick Hit:

Nissan is reportedly abandoning merger talks with Honda, scrapping a $60 billion deal that would have created the world’s third-largest automaker. The collapse raises questions about Nissan’s turnaround strategy as it faces challenges from electric vehicle competitors and potential U.S. tariffs.

Key Details:

  • Nissan shares dropped over 4% following the news, while Honda’s stock surged more than 8%, signaling investor relief.
  • Honda reportedly proposed making Nissan a subsidiary, a move Nissan rejected as it was initially framed as a merger of equals.
  • Nissan is struggling with financial challenges and the transition to EVs, still reeling from the 2018 scandal involving former chairman Carlos Ghosn.

Diving Deeper:

Merger talks between Nissan and Honda have collapsed, according to sources, after months of negotiations to form an auto giant capable of competing with Chinese EV makers like BYD. The proposed deal, valued at over $60 billion, would have created the world’s third-largest automaker. However, differences in strategy and control ultimately derailed the discussions.

Reports indicate that Honda, Japan’s second-largest automaker, wanted Nissan to become a subsidiary rather than an equal merger partner. Nissan balked at the idea, leading to the collapse of negotiations. Honda’s market valuation of approximately $51.9 billion dwarfs Nissan’s, which may have fueled concerns about control. The failure of talks sent Nissan’s stock tumbling more than 4% in Tokyo, while Honda’s shares rose over 8%, reflecting investor confidence in Honda’s independent strategy.

Nissan, already in the midst of a turnaround plan involving 9,000 job cuts and a 20% reduction in global capacity, now faces mounting pressure to restructure on its own. Analysts warn that the failed merger raises uncertainty about Nissan’s ability to compete in an industry rapidly shifting toward EVs. “Investors may get concerned about Nissan’s future [and] turnaround,” Morningstar analyst Vincent Sun said.

Complicating matters further, Nissan faces heightened risks from U.S. tariffs under President Donald Trump’s trade policies. Potential tariffs on vehicles manufactured in Mexico could hit Nissan harder than competitors like Honda and Toyota. The stalled deal also impacts Nissan’s existing alliance with Renault, which had expressed openness to the merger. Renault holds a 36% stake in Nissan, including 18.7% through a French trust.

While both Nissan and Honda have stated they will finalize a direction by mid-February, the collapse of this deal signals deep divisions in Japan’s auto industry. With Nissan’s financial struggles and the growing dominance of Chinese EV makers, the company must now navigate an increasingly challenging market without external support.

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Trudeau must repeal the EV mandate

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By Dan McTeague

Last Monday, Transport Canada released a bombshell statement, announcing that the Trudeau government’s program granting a $5,000 rebate to Canadians purchasing an Electric Vehicle (EV) had run out of money and would be discontinued, “effective immediately.” This followed a prior announcement from the government of Quebec that they would be suspending their own subsidy, which had amounted to $7,000 per EV purchased.

This is, of course, a game changer for an industry which the Trudeau government (as well as the Ford government in Ontario) has invested billions of taxpayer dollars in. That’s because, no matter the country, the EV industry is utterly dependent upon a system of carrots and sticks from the government, in the form of subsidies and mandates.

EVs have remained notably more expensive than traditional Internal Combustion Engine (ICE) vehicles, even with those government incentive programs. Without them the purchase of EVs becomes impossible for all but the wealthiest Canadians.

Which is fine. Let the rich people have their toys, if they want them. Though if they justify the expense by saying that they’re saving the planet by it, I may be tempted to deflate them a bit by pointing out that EVs are in no way appreciably better for the environment than ICE vehicles, how all the lithium, nickel, cobalt, manganese, aluminum, copper, etc, contained in just one single EV battery requires displacing about 500,000 lbs of earth. Mining these materials often takes place in poorer countries with substandard environmental regulations.

Moreover, the weight of those batteries means that EVs burn through tires more quickly than gas-and-diesel driven vehicles, and wear down roads faster as well, which among other issues leads to an increase in particulate matter in the air, what in the old days we referred to as “pollution.”

That is a potential issue, but one that is mitigated by the fact that EVs make up a small minority of cars on the road. Regular people have proved unwilling to drive them, and that will be even more true now that the consumer subsidies have disappeared.

Of course, it will be an issue if the Trudeau Liberals get their way. You see, Electric Vehicles are one of the main arenas in their ongoing battle with reality. And so even with the end of their consumer subsidies, they remain committed to their mandates requiring every new vehicle purchased in Canada to be electric by 2035, now just a decade away!

They’ve done away with the carrots, and they’re hoping to keep this plan moving with sticks alone.

This is, in a word, madness.

As I’ve said before, the Electric Vehicle mandate is a terrible policy, and one which should be repealed immediately. Canada is about the worst place to attempt this particular experiment with social engineering. It is famously cold, and EVs are famously bad in the cold, charging much slower in frigid temperatures and struggling to hold a charge. Which itself is a major issue, because our country is also enormous and spread out, meaning that most Canadians have to do a great deal of driving to get from “Point A” to “Point B.”

Canada is sorely lacking in the infrastructure which would be required to keep EVs on the road. We currently have less than 30,000 public charging stations nationwide, which is more than 400,000 short of Natural Resources Canada’s projection of what we will need to support the mandated total EV transition.

Our electrical grid is already stressed, without the addition of tens of millions of battery powered vehicles being plugged in every night over a very short time. And of course, irony of ironies, this transition is supposed to take place while our activist government is pushing us on to less reliable energy sources, like wind and solar!

Plus, as I’ve pointed out before, the economic case for EVs, such as it was, has been completely upended by the recent U.S. election. Donald Trump’s victory means that our neighbors to the south are in no immediate danger of being forced to ditch gas-and-diesel driven cars. Consequently, the pitch by the Trudeau and Ford governments that Canada was putting itself at the center of an evolving auto market has fallen flat. In reality, they’ve shackled us to a corpse.

So on behalf of my fellow Canadians I say, “Thank you,” to the government for no longer burning our tax dollars on this particular subsidy. But that isn’t even half the battle. It must be followed through with an even bigger next step.

They must repeal the EV mandate.

Dan McTeague is President of Canadians for Affordable Energy.

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