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Automotive

Electric vehicles facing uphill climb

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8 minute read

From Resource Works

Ford shifts from EVs to gasoline trucks in Oakville due to declining demand and financial losses, challenging government EV targets.

In October 2020, the federal and Ontario governments announced with fanfare that they would each pour $295 million into helping Ford upgrade its assembly plant in Oakville to start making electric vehicles.

“The upgrade of the Ford plant will make Oakville into the company’s No 1. electric vehicle factory in North America,” we were told.

And Prime Minister Trudeau declared: “This is a win-win. . . . helping accelerate our transition to a low-carbon, clean-growth economy, which will help protect our environment, drive innovation, and create many good middle-class jobs.”

In April 2023, Ford announced it will spend $1.8 billion to retool its Oakville Assembly Complex, beginning in mid-2024, to build next-generation passenger electric vehicles in 2025.

Then the target date of 2025 becomes 2027.

And now, in July 2024, reality strikes: Ford confirmed that the Oakville plant would no longer produce electric three-row SUVs but would instead turn out larger, gasoline-powered versions of its flagship F-Series pickup truck.

The reason: a global slowdown in electric vehicle demand, with hesitant customers delaying plans to buy EVs, and many opting instead for hybrid-electric vehicles.

Ford, for one, said it will step up hybrid offerings and that by 2030 it expects to offer hybrid powertrains across its lineup of gas-powered vehicles. Ford has also delayed production of electric pickup trucks in Tennessee.

Ford now says its electric vehicle unit lost $1.3 billion USD in the first quarter alone. It sold 10,000 vehicles in that period, and thus lost about $132,000 US for every EV it sold.

General Motors also announced it would cut production of EVs, citing slowing demand.

As far as we know, Honda Canada is proceeding with a $15 billion plan to create Canada’s first comprehensive electric-vehicle supply chain, comprising four plants in Ontario. It includes Honda’s first EV assembly plant in Alliston, ON, which Honda said will produce up to 240,000 vehicles per year.

Flavio Volpe, president of the Automotive Parts Manufacturers Association, said the Ford decision is “not good news,” and he fears there will be similar announcements from other car companies.

And automotive industry analyst Robert Karwel says: “I would definitely not be surprised to see announcements from other companies.”

“People are getting payment fatigue right now generally, and EVs are more expensive,” said Karwel, a senior manager of J.D. Power’s Power Information Network. “The average car payment hit $900 a month in January.”

In the first quarter of this year, 46,744 light and medium-duty EVs were registered across Canada, 11.2% of the market share.

B.C. has long led Canada in the uptake of electric vehicles, and in May they made up 10.7% of light-duty vehicle sales.

But another factor weighing on consumers is B.C.’s recent reduction in rebates for electric vehicles.

B.C. reduced rebates to $3,000 for battery, fuel-cell and longer-range plug-in hybrid electric vehicles and $1,500 for shorter-range plug-in hybrid electric vehicles. The previous incentives ranged from $2,500 to $6,000, depending on the kind of car.

And now, only vehicles sold for under $55,000 qualify for the rebates. Previously, the maximum price was $77,000 to qualify. The federal rebate of $5,000 for qualifying vehicles, introduced on May 1, is still available.

If the slowdown in demand continues, it will only help power producers such as B.C. Hydro, which face staggering demand for power, for EVs and for industrial and clean-energy use.

The federal government requires at least 20% of new vehicles sold in Canada to be zero-emission vehicles (ZEVs) by 2026, at least 60% by 2030, and 100% by 2035. (ZEVs include battery electric vehicles and plug-in hybrid electric vehicles.)

Prime Minister Trudeau: “As a great Canadian once said, that is where the puck is going and that is where we’re going to be.”

B.C. is even more ambitious: It has set targets requiring 90% of all light-duty new vehicle sales to be zero-emission by 2030 and 100% by 2035.

That means B.C. needs substantially more power to cope with EVs — and will require even more than that to handle expected population growth and the province’s plans to electrify BC’s economy and push clean energy.

Now the Energy Futures Institute (EFI) calls in a new report for “a dramatic increase in domestic electricity production” in B.C., and cancellation of current plans to wind down some existing power-generation facilities.

EFI chair Barry Penner: “After years without new generation coming online, the long-awaited Site C dam is expected to start producing power by next year. Even if Site C was available last year or this year, it wouldn’t be enough to avoid having to import electricity from the United States and Alberta to keep our lights on.”

As for the federal target, the Public Policy Forum says Canada must build more electricity generation in the next 25 years than it has over the last century in order to support a net-zero emissions economy by 2050.

All in all, Canada’s electric vehicle transition could cost more than $300 billion by 2040 as the installation of charging infrastructure expands, upgrades to the electrical grid are made, and other changes take place, according to a report  released by Natural Resources Canada.

Among other things, it says Canada needs to add 40,000 public charging ports per year on average between now and 2040. There now are around 32,000 public ports across the country, and roughly 11,000 were installed in 2023.

The Canadian Vehicle Manufacturers’ Association says lack of charging infrastructure is already deterring some would-be EV buyers. A lack of charging station availability was cited as a top concern by 72% of consumers, according to an Autotrader Canada survey conducted in March.

  1. Cornelius van Kooten, an economics professor and Canada Research Chair in Environmental Studies and Climate Change at the University of Victoria, said the federal timeline for electric vehicles “isn’t realistic or feasible.”

In a study for the free-enterprise Fraser Institute, he said that to meet the goal, Canada would need the equivalent of 10 big new hydro dams (or 13 large natural-gas power plants).

Quebec, for one, has already had to start limiting industrial expansion because it can’t fill all the power needs.

So you can but sigh when you hear of Quebec’s latest plan for electric vehicles: it is moving ahead with regulations that not only mandate EV sales but actually prohibit sales of any internal combustion engines — including plug-in hybrids, from January 1, 2035.

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Automotive

‘Gross Overreach’: Energy Groups Urge Congress To Throw Biden-Harris Admin’s ‘EV Mandate’ Overboard

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From the Daily Caller News Foundation 

By Nick Pope

Energy-focused organizations called on lawmakers to scrap the Biden-Harris administration’s electric vehicle (EV) “mandate” in a Thursday letter.

More than two dozen energy groups sent the letter to every lawmaker in Congress, urging them to push through Congressional Review Act (CRA) proceedings against the Environmental Protection Agency’s (EPA) tailpipe emissions standards for light-duty vehicles. The CRA enables legislators to effectively overturn federal regulations provided a resolution targeting a specific rule can pass both chambers of Congress and gets signed by the president, or if lawmakers can manage to override a presidential veto, according to the Congressional Research Service.

“This EPA rulemaking is clearly beyond the scope of the regulatory power granted to the agency by Congress,” the letter states. “While this overreach will be litigated in the courts, a positive CRA decision now would ensure that consumers are protected today, rather than wait years for the issue to work its way through the court system.” CRA Tailpipe Coalition Letter Final by Nick Pope on Scribd

Specifically, automakers could come into compliance with the EPA’s rules if EVs make up 56% of their new car sales by 2032, with an additional 13% of sales being plug-in hybrids, according to The Associated Press. While the Biden-Harris administration maintains that the regulations are not an EV mandate, critics say that the rules will effectively force manufacturers to increase EV production to such an extent that they amount to a de facto mandate.

The Biden-Harris administration has set a target of having 50% of all new car sales be EVs by 2030 as part of its broader green energy and climate agenda. Despite billions of dollars of spending and stringent regulation, American consumers remain hesitant to switch over to all-electric models while manufacturers are losing large amounts of cash on their EV product lines and starting to back off of ambitious short-term production goals.

“In a move that shocks no one, the Biden-Harris EPA has once again overstepped its authority with their EV mandate. By prioritizing politics over personal freedoms, this Administration is destroying the cornerstone of our economy — consumer choice,” Tom Pyle, president of the American Energy Alliance, said. “What the Biden-Harris Administration is trying to do with his mandate is deceptive, ill-advised, and a gross overreach of power. While it will undoubtedly be litigated by those who stand on the side of consumer choice and economic freedom, passage of the CRA resolution will ensure consumers are protected today.”

Beyond the American Energy Alliance, other signatories include Americans for Prosperity, the Western Energy Alliance, Heritage Action, the Competitive Enterprise Institute and Always On Energy Research.

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Automotive

Ford Files Patent to Surveil Drivers

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News release from Armstrong Economics

By Martin Armstrong

Governments are pushing the public to switch to smart vehicles to reduce fossil fuel consumption, but there is also a second motive – surveillance.

This September, Ford filed a new patent to eavesdrop on riders. They plan to share this information with third-parties to personalize the advertisements riders hear. Ford will also take the driver’s destination into consideration to determine location-specific advertisements and suggestions. The technology will factor in the weather, traffic, and all external sensors to fine tune when and what to market to passengers.

Advertisements are perhaps the least ominous use of voice data based on the plans that these car manufacturers have. Car insurance rates in the United States spiked 26% in the past year, which is partly due to car manufacturers sharing ride data with insurance companies. Even older cars with basic features like OnStar have tracking devices that report your driving behavior to the manufacturers who share your data with insurance companies and, ultimately, the government. LexisNexis, which tracks drivers’ behaviors and compiles risk profiles, has been sharing individual data with General Motors, who passes that information along to the insurance companies. General Motors.

One driver demanded that LexisNexis send him his personal report, which was a 258-page document containing every trip he or his wife took in his vehicle over a six-month period. LexisNexis said that this data will be used “for insurers to use as one factor of many to create more personalized insurance coverage.” They even reported small issues such as hard breaking and rapid acceleration, according to the report. “I don’t know the definition of hard brake. My passenger’s head isn’t hitting the dash,” an unnamed Cadillac driver enrolled in the OnStar Smart Driver subscription service told reporters.

“Cars have microphones and people have all kinds of sensitive conversations in them. Cars have cameras that face inward and outward,” a researcher with Mozilla Foundation told the Los Angeles Times. In fact, 19 automakers in 2023 admitted that they have the ability to sell your personal data without notice. Law enforcement may subpoena these records as well.

Ford claims that the patent was submitted, but they do not necessarily plan to use the technology. “Submitting patent applications is a normal part of any strong business as the process protects new ideas and helps us build a robust portfolio of intellectual property. The ideas described within a patent application should not be viewed as an indication of our business or product plans. No matter what the patent application outlines, we will always put the customer first in the decision-making behind the development and marketing of new products and services,” Ford said in a statement released to MotorTrend.

Now, the US Department of Transportation is permitted to mandate that certain manufacturers provide them with vehicle data. Sens. Ron Wyden of Oregon and Edward Markey of Massachusetts testified that all vehicles in the United States with a GPS or emergency call system are collecting travel data that car manufacturers have remote access to via the computer chips. The computer chips are compiling data on vehicle speed, movement, travel, and even using exterior sensors and cameras to record the vehicle’s location.

All of this violates the Fourth Amendment which protects against unreasonable searches and seizures without probable cause. These car manufacturers are surpassing what anyone would consider a reasonable expectation of privacy. Governments, third-party advertisement companies, and insurance companies all have warrantless access to personal data, and drivers are largely unaware they are being spied on. Section 702 of the Foreign Intelligence Surveillance Act permits the government to have backdoor access to this data.

The aforementioned senators’ concerns fell on deaf ears at the Federal Trade Commission. The Department of Transportation clearly is not listed within the US Constitution. People are already experiencing stiff consequences from autos sharing data with the sharp uptick in insurance rates.

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