Automotive
From Nazis to hippies: End of the road for Volkswagen Beetle
FRANKFURT — Volkswagen is halting production of the last version of its Beetle model this week at its plant in Puebla, Mexico. It’s the end of the road for a vehicle that has symbolized many things over a history spanning eight decades since 1938.
It has been: a part of Germany’s darkest hours as a never-realized Nazi prestige project. A symbol of Germany’s postwar economic renaissance and rising middle-class prosperity. An example of globalization, sold and recognized all over the world. An emblem of the 1960s counterculture in the United States. Above all, the car remains a landmark in design, as recognizable as the Coca-Cola bottle.
The car’s original design — a rounded silhouette with seating for four or five, nearly vertical windshield and the air-cooled engine in the rear — can be traced back to Austrian engineer Ferdinand Porsche, who was hired to fulfil Adolf Hitler’s project for a “people’s car” that would spread auto ownership the way the Ford Model T had in the U.S.
Aspects of the car bore similarities to the Tatra T97, made in Czechoslovakia in 1937, and to sketches by Hungarian engineer Bela Barenyi published in 1934. Mass production of what was called the KdF-Wagen, based on the acronym of the Nazi labour organization under whose auspices it was to be sold, was cancelled due to World War II. Instead, the massive new plant in what was then countryside east of Hanover turned out military vehicles, using forced labourers from all over Europe under miserable conditions.
Re-launched as a civilian carmaker under supervision of the British occupation authorities, the Volkswagen factory was transferred in 1949 to the Germany government and the state of Lower Saxony, which still owns part of the company. By 1955, the millionth Beetle — officially called the Type 1 — had rolled off the assembly line in what was now the town of Wolfsburg.
The United States became Volkswagen’s most important foreign market, peaking at 563,522 cars in 1968, or 40% of production. Unconventional, sometimes humorous advertising from agency Doyle Dane Bernbach urged car buyers to “Think small.”
“Unlike in West Germany, where its low price, quality and durability stood for a new postwar normality, in the United States the Beetle’s characteristics lent it a profoundly unconventional air in a car culture dominated by size and showmanship,” wrote Bernhard Rieger in his 2013 history, “The People’s Car.”
Production at Wolfsburg ended in 1978 as newer front drive models like the Golf took over. But the Beetle wasn’t dead yet. Production went on in Mexico from 1967 until 2003 — longer than the car had been made in Germany. Nicknamed the “vochito,” the car made itself at home as a rugged, Mexican-made “carro del pueblo.”
The New Beetle — a completely retro version build on a modified Golf platform — resurrected some of the old Beetle’s cute, unconventional aura in 1998 under CEO Ferdinand Piech, Ferdinand Porsche’s grandson. In 2012, the Beetle’s design was made a bit sleeker.
The end of the Beetle comes at a turning point for Volkswagen as it rebounds from a scandal over cars rigged to cheat on diesel emissions tests. The company is gearing up for mass production of the battery-driven compact ID.3, a car that the company predicts will have an impact like that of the Beetle and the Golf by bringing electric mobility to a mass market.
The last of 5,961 Final Edition versions of the Beetle is headed for a museum after ceremonies in Puebla on July 10 to mark the end of production.
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AP photo blog about the last Volkswagen Beetle: https://bit.ly/32bXuMx
David McHugh, The Associated Press
From the Daily Caller News Foundation
The future direction of federal energy policy related to the transportation sector is a key question that will be determined in one way or another by the outcome of the presidential election. What remains unclear is the extent of change that a Trump presidency would bring.
Given that Tesla founder and CEO Elon Musk is a major supporter of former President Donald Trump, it seems unlikely a Trump White House would move to try to end the EV subsidies and tax breaks included in the Inflation Reduction Act (IRA). Those provisions, of course, constitute the “carrot” end of the Biden-Harris carrot-and-stick suite of policies designed to promote the expansion of EVs in the U.S. market.
The “stick” side of that approach comes in the form of stricter tailpipe emissions rules and higher fleet auto-mileage requirements imposed on domestic carmakers. While a Harris administration would likely seek to impose even more federal pressure through such command-and-control regulatory measures, a Trump administration would likely be more inclined to ease them.
But doing that is difficult and time-consuming and much would depend on the political will of those Trump appoints to lead the relevant agencies and departments.
Those and other coercive EV-related policies imposed during the Biden-Harris years have been designed to move the U.S. auto industry directionally to meet the administration’s stated goal of having EVs make up a third of the U.S. light duty fleet by 2030. The suite of policies does not constitute a hard mandate per se but is designed to produce a similar pre-conceived outcome.
It is the sort of heavy-handed federal effort to control markets that Trump has spoken out against throughout his first term in office and his pursuit of a second term.
A new report released this week by big energy data and analytics firm Enverus seems likely to influence prospective Trump officials to take a more favorable view of the potential for EVs to grow as a part of the domestic transportation fleet. Perhaps the most surprising bit of news in the study, conducted by Enverus subsidiary Enverus Intelligence Research (EIR), is a projection that EVs are poised to be lower-priced than their equivalent gas-powered models as soon as next year, due to falling battery costs.
“Battery costs have fallen rapidly, with 2024 cell costs dipping below $100/kWh. We predict from [2025] forward EVs will be more affordable than their traditional, internal combustible engine counterparts,” Carson Kearl, analyst at EIR, says in the release. Kearl further says that EIR expects the number of EVs on the road in the US to “exceed 40 million (20%) by 2035 and 80 million (40%) by 2040.”
The falling battery costs have been driven by a collapse in lithium prices. Somewhat ironically, that price collapse has in turn been driven by the failure of EV expansion to meet the unrealistic goal-setting mainly by western governments, including the United States. Those same cause-and-effect dynamics would most likely mean that prices for lithium, batteries and EVs would rise again if the rapid market penetration projected by EIR were to come to fruition.
In the U.S. market, the one and only certainty of all of this is that something is going to have to change, and soon. On Monday, Ford Motor Company reported it lost another $1.2 billion in its Ford Model e EV division in the 3rd quarter, bringing its accumulated loss for the first 9 months of 2024 to $3.7 billion.
Energy analyst and writer Robert Bryce points out in his Substack newsletter that that Model e loss is equivalent to the $3.7 billion profit Ford has reported this year in its Ford Blue division, which makes the company’s light duty internal combustion cars and trucks.
While Tesla is doing fine, with recovering profits and a rising stock price amid the successful launch of its CyberTruck and other new products, other pure-play EV makers in the United States are struggling to survive. Ford’s integrated peers GM and Stellantis have also struggled with the transition to more EV model-heavy fleets.
None of this is sustainable, and a recalibration of policy is in order. Next Tuesday’s election will determine which path the redirection of policy takes.
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.
From the Canadian Taxpayers Federation
Author: Kris Sims
The Trudeau government’s ban on new gas and diesel vehicles is a nonstarter for three powerful reasons.
First, Canadians want to drive gas-powered minivans and diesel pickups.
Second, Canada does not have the electrical power to fuel these battery-powered cars.
Third, Canadians do not have the money to build the power-generating stations that would be needed to power these government-mandated vehicles.
Let’s start on the showroom floor.
The Trudeau government is banning the sale of new gasoline and diesel-powered vehicles by 2035.
In about 10 years’ time, Canadians will not be allowed to buy a new vehicle powered by an internal combustion engine because the government will forbid it.
Canadians disagree with this.
The Canadian Taxpayers Federation released Leger polling showing 59 per cent of Canadians oppose the federal government’s ban on new gas and diesel vehicles.
Among those who are decided on the issue, 67 per cent of Canadians, and majorities in every demographic, oppose the Trudeau government’s ban.
Now let’s look under the hood.
Canada does not have the electricity to charge these battery-powered cars. The government hasn’t presented any plan to pay for the power plants, transmission lines and charging stations for these government-mandated vehicles.
That leaves a big question: How much will this cost taxpayers?
Canada’s vehicle transition could cost up to $300 billion by 2040 to expand the electrical grid, according to a report for Natural Resources Canada.
Let’s look at why this will cost so much.
The average Canadian household uses about 10,861 kWh in electricity per year. The average electric car uses about 4,500 kWh of energy per year.
The average household’s electricity use would jump by about 40 per cent if they bought one EV and charged it at home.
Canada is home to 24 million cars and light trucks that run on gasoline and diesel, according to Statistics Canada.
If all those vehicles were powered by electricity and batteries, that fleet would use about 108 million mWh of power every year.
For context, one large CANDU nuclear reactor at the Darlington nuclear plant in Ontario generates about 7,750,000 mWh of power per year.
Canada would require about 14 of these reactors to power all of those electric cars.
Building a large nuclear reactor costs about $12.5 billion.
That’s a price tag of about $175 billion just for all the power plants. The Natural Resources report estimates the transition to electric vehicles could cost up to $300 billion in total, when new charging stations and power lines are included.
Who would be paying that tab? Normal Canadians through higher taxes and power bills.
Canadians cannot afford the cost of these mandatory electric vehicles because they’re broke.
Canadians are broke largely because of high taxes and high inflation, both driven by the Trudeau government’s wasteful spending.
About half of Canadians say they are within $200 of not being able to make the minimum payments on their bills each month. That’s also known as barely scraping by.
Food banks are facing record demand, with a sharp increase in working families needing help. That means parents who are holding down jobs are still depending on donated jars of peanut butter to feed their kids.
Rubbing salt into the wound, the federal government also put taxpayers on the hook for about $30 billion to multinational corporations like Honda, Volkswagen, Stellantis and Northvolt to build EV battery factories.
The roadside sobriety test is complete, and the Trudeau government is blowing a fail on this policy.
Canadians are opposed to the Trudeau government banning the sale of new gasoline and diesel-powered vehicles.
Canada does not have the electricity to charge these battery-powered cars.
Canadians don’t have the money to build the new power plants, transmission lines and charging stations these vehicles would demand.
It’s time to tow this ban on new gas and diesel vehicles to the scrapyard.
Franco Terrazzano is the Federal Director and Kris Sims is the Alberta Director of the Canadian Taxpayers Federation
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