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The Harsh Realities of Electric Vehicles in Canada

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From EnergyNow.ca

By Lorne Gunter

When it comes to electric vehicles (EVs), the Trudeau government and Environment Minister Steven Guilbeault are putting the policy cart before the technology horse.

If last week’s extreme cold temperatures over most of the country taught us anything, it’s that EVs just aren’t practical (yet) for a country this big and this cold.

The federal Liberals may be willing to risk hundreds of billions of your tax dollars and mine for manufacturing subsidies, purchase subsidies and EV infrastructure to try to force a market for electrics into existence, but Canadians are just not ready to get rid of their internal combustion engines (ICEs). And with good reason.

I heard from a reader in northern Manitoba. He has a Ford Lightning (the fully electric version of the F-150 pickup). When the temperature fell to -40C last week, his truck’s range dropped by half after driving it just 18 kms. He was forced to abandon his work-related trip so he could return home before the charge ran out and he found himself stranded quite literally in the middle of nowhere without heat in the cab.

Another reader, this one from Edmonton, found that not only was his range severely reduced by the cold, but charging time was doubled. His wait at a public fast-charger was two hours instead of one because he had to keep the heat on in his Tesla.

Many charging stations across the country have also been reported to stop working in the extreme cold.

Since this is a country that experiences extreme cold (below -25C) most winters, that makes an EV an unacceptable risk, or at the very least a horrible inconvenience.

Also this week, the highly respected testing magazine, Consumer Reports, said that when temperatures are only as cold as +7C, EVs lose about 25% of their range compared to temperatures of +15C and a third when compared to temps of +25C.

Ranges, of course, are much further diminished when outside temperatures fall below -20C.

Environment Minister Steven Guilbeault says the upcoming Electric Vehicle Availability Standard will encourage automakers to make more battery-powered cars and trucks available in Canada. Automakers will have the next 12 years to phase out combustion engine cars, trucks and SUVs with a requirement to gradually increase the proportion of electric models they offer for sale each year. Dec. 19, 2023

Additionally, Consumer Reports (CR) found that “short trips in the cold with frequent stops and the need to reheat the cabin after a parking pause saps 50% of the range.” That means EVs may be impractical in Canada even for urban commuters or suburban families.

Late last year, CR also concluded EVs are 73% less reliable than gasoline vehicles. As well, they were more expensive to maintain and repair. And when the costs of electricity and home chargers are included, EVs are at least as expensive as gasoline vehicles to refuel.

That puts the lie to Guilbeault’s claim (made in December when announcing his mandate that all new vehicles be EVs by 2035) that while EVs are more expensive to buy, once consumers drive them off the lot, they become much more affordable than gasoline or diesel vehicles.

Not only are EVs more expensive to buy and maintain, because of their weight, they chew through tires about 40% faster. They are more expensive to insure because they cost so much more to repair if they are involved in an accident. They depreciate faster than ICEs. And their batteries lose up to half of their life in four or five years, even if they are fully charged.

All of this explains why car-rental giant, Hertz, announced earlier this month that it was selling its EV fleet – 20,000 cars. They are just too expensive.

Electric vehicles may not be that good for the environment, either.

Many components are, of course, manufactured in China (or by Chinese companies operating elsewhere) using electricity from coal-fired power plants. And this week, Blacklock’s Reporter revealed the federal Fisheries department is reviewing Northvolt, the Swedish battery maker building a heavily-subsidized plant in Quebec, for potential harm to fisheries, wetlands and streams.

The Liberals’ EV mandate is a very, very expensive farce that will likely produce few, if any, environmental benefits.

 

Article Originally Published in the Toronto Sun Here

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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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