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World’s first all-electric bus fleet shut down due to breakdowns and expense

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From Heartland Daily News

By The Antiplanner

Electric Buses Not a Panacea

Last week, the city of Seneca, South Carolina decided to shut down the Clemson Area Transit System, which served Seneca and nearby Clemson University. Once touted as owning the world’s first all-electric bus fleet, just a few years later two thirds of its expensive electric buses had broken down, the company that made them went bankrupt, parts were no longer available, and the city can’t afford to buy replacement buses.

Seneca is not exactly a major metropolis. But Clemson Area Transit isn’t the only transit agency to have trouble with electric buses. Just the day before Seneca decided to shut down its transit system, Austin’s Capital Metro announced that it was giving up on its plan to electrify its bus fleet by 2030. Electric bus technology, said the agency, simply hasn’t progressed far enough to replace Diesels.

California’s Foothill Transit, one of the first agencies to use rapid-charge electric buses in 2010, has also had problems. Like Austin, the agency had hoped to completely electrify by 2030. Instead, by 2020 most of the electric buses in its fleet were out of service. In 2021, the agency decided to return the buses even though doing so would require it to pay a $5 million penalty to the Federal Transit Administration, whose grant initially paid most of the cost.

The Southeast Pennsylvania Transportation Authority (SEPTA) may be the largest agency to have practically given up on electric buses. It pulled its 25-bus electric fleet out of service in 2021 when the buses were just five years old. The buses had suffered cracks in their chassis, but it appears that problem was only the straw that broke the omnibus’s back. “We do not feel the current [electric bus] technology is a good investment at this time,” concluded SEPTA’s general manager.

Transit agencies in Asheville, Colorado Springs, and several other cities have reported similar problems. Albuquerque completely gave up on its electric buses and returned them to the manufacturer, a Chinese company called BYD.

Electric buses cost 50 to 100 percent more than their Diesel counterparts. A 2019 study by US PIRG predicted that such buses would nevertheless save transit agencies $400,000 apiece over their lifetimes due to lower fuel and maintenance costs. US PIRG relied on four “success stories” to justify this conclusion. Success story number one was Seneca, South Carolina.

The report acknowledged Albuquerque’s problems but blamed them on the city’s hills and high temperatures. Compared with Austin, Albuquerque is practically flat and its temperatures are nowhere near as extreme. If electric buses can’t work in Albuquerque, they aren’t going to work in a lot of other cities.

Other than Albuquerque, one thing many of these failures have in common is electric buses manufactured by Proterra, one of four major electric bus manufacturers that have recently sold buses in the U.S. and the only one to actually be a U.S. company. In 2023, it claimed that COVID-related supply-chain problems had driven it into bankruptcy. The company’s three divisions — transit buses, batteries and drive trains, and charging systems — were sold to three other companies to pay Proterra’s debts and none of the buyers are supporting Proterra’s buses or even making similar buses. In view of the many problems transit agencies were having with its buses before 2023, it seems likely the supply-chain explanation was just a dodge for Proterra’s shoddy design and workmanship.

One reason for that may simply be opportunism on the part of bus manufacturers, including both Proterra and BYD. Before passage of the 2021 infrastructure bill, the federal government was paying 80 percent of the cost of Diesel buses but 90 percent of the cost of electric buses purchased by transit agencies. For a transit agency, that meant that an electric bus could cost twice as much as a Diesel bus without costing local taxpayers an extra dime. Bus manufacturers thus felt free to increase their profits by raising the price of their electric buses and, having done so, may have compounded the problem by cutting costs.

Beyond manufacturing defects, electric buses have several generic problems. First, while a Diesel bus can operate all day, an electric bus can operate only a few hours on a single time-consuming charge. Proterra claimed to have solved this problem with a rapid-charge system, but that didn’t prevent Foothill Transit from suffering enormous problems with its electric buses. This probably is particularly serious on long bus routes: Austin’s Capital Metro estimates that today’s electric buses could satisfactorily serve only 36 percent of its routes.

Second, the batteries needed to power electric bus motors are heavy, which is probably why SEPTA’s buses suffered cracks in their chassis. Supposedly, the frames on SEPTA’s Proterra buses were made of “resin, fiberglass, carbon fiber, balsa wood, and steel reinforcement plates,” which almost sounds like a joke. But making frames strong enough to support the batteries means adding even more weight to the buses, which shortens their range and adds to wear and tear on other parts of the buses.

Third, electric buses are not necessarily climate-friendly enough to justify their added cost. In Washington state, where most electric power comes from hydroelectric dams, switching from Diesel to electric buses will definitely reduce greenhouse gas emissions. But most other states, including New MexicoSouth Carolina, and Texas, get most of their electricity from fossil fuels and thus electric buses may not reduce greenhouse gas emissions at all when compared with Diesels.

Under the 2021 infrastructure law, the federal government is handing out close to a billion dollars to buy electric buses. Advocacy groups such as US PIRG want transit agencies to “commit to a full transition to electric buses on a specific timeline.” Such funding and commitment may be premature, however, if electric bus technology is not capable of equalling Diesel buses, will cost agencies more in the long run, and won’t do much to reduce greenhouse gas emissions.

The Antiplanner is a forester and economist with more than fifty years of experience critiquing government land-use and transportation plans.

Originally published by The Antiplanner. Republished with permission.

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

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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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