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Tag: Electric vehicles

  • Tesla sales rise 36% in first quarter, following price cuts

    Tesla sales rise 36% in first quarter, following price cuts

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    DETROIT — Tesla’s first-quarter vehicle sales rose 36% after the company cut prices twice in a bid to stimulate demand.

    The electric car, SUV and heavy truck maker said it delivered 422,875 vehicles worldwide from January to March, up from just over 310,000 a year ago. But the increase fell short of analyst estimates of 432,000 for the quarter, according to FactSet. The first quarter sales were a record for the company.

    Tesla cut prices in early March on its more expensive models, the S and X, by $5,000 to as much as $10,000. In January it slashed the sticker numbers on several versions of its EVs, making some eligible for a U.S. $7,500 federal tax credit. Some versions of the top-selling Model Y small SUV saw price trims of nearly 20%, and the base price of the Model 3 small car was dropped by 6%.

    The price cuts appeared to have raised demand despite increasing interest rates designed to slow the economy and curb inflation. Since the U.S. Federal Reserve began raising rates in March of last year, the average new vehicle loan has jumped from 4.5% to 7%, according to Edmunds data.

    Analysts are watching to see if the price drops cut into the company’s profit and margins per vehicle. Tesla says it will release first-quarter earnings after the markets close on April 19.

    The Austin, Texas-based company said it sold 412,180 Model Y and Model 3s for the quarter, up almost 40% from the 295,324 sold a year ago.

    But sales of the aging Model X large SUV and Model S big sedan fell nearly 38% to 10,695.

    When Tesla cut prices, some analysts wondered whether demand was slowing. Others suggested the company was taking advantage of its higher profit margins in a bid to pull market share from upstart companies and legacy automakers that are starting to sell more EVs. Some analysts predicted the start of a widespread price war that has yet to materialize, at least in the U.S.

    The growth rate in Tesla’s sales, while impressive, was below the pace needed to reach the company’s pledge to increase deliveries about 50% per year into the foreseeable future.

    Tesla produced more vehicles than it sold during the first quarter, making 440,808 as it ramped up production at new factories near Austin, Berlin and Shanghai.

    In a note to investors Sunday, Jefferies analyst Philippe Houchois wrote that Tesla’s “excess production over deliveries” will keep the debate going over whether there’s demand weakness or if the price cuts will raise demand.

    During Tesla’s investor day event in early March, CEO Elon Musk conceded that affordability remains a drag on sales but said many people still want to buy a Tesla. “The limiting factor is their ability to pay for a Tesla,” he said.

    The top-selling Model Y, for instance, starts at $54,990, while the Model 3’s base price is $42,990. A Model S has a starting price of $89,990, while the X starts at $99,990.

    Tesla also has been coming under increasing scrutiny from U.S. safety regulators, who have opened multiple investigations and forced a recall of the company’s “Full Self-Driving” software for unsafe behavior. The National Highway Traffic Safety Administration is investigating Tesla for steering wheels that can fall off, seat belts that may not hold people in a crash and partially automated systems that can crash into parked emergency vehicles or stop for no reason.

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  • ‘War of the states’: EV, chip makers lavished with subsidies

    ‘War of the states’: EV, chip makers lavished with subsidies

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    HARRISBURG, Pa. — States are doling out more cash than ever to lure multibillion-dollar microchip, electric vehicle and battery factories, inspiring ever-more competition as they dig deeper into their pockets to attract big employers and capitalize on a wave of huge new projects.

    Georgia, Kansas, Michigan, New York, North Carolina, Ohio and Texas have made billion-dollar pledges for a microchip or EV plant, with more state-subsidized plant announcements by profitable automakers and semiconductor giants surely to come.

    States have long competed for big employers. But now they are floating more billion-dollar offers and offering record-high subsidies, lavishing companies with grants and low-interest loans, municipal road improvements, and breaks on taxes, real estate, power and water.

    “We’re in the second war of the states,” said John Boyd, a principal at the Florida-based Boyd Company, which advises on site selections. “That’s how competitive economic development is between the states in 2023.”

    The projects come at a transformative time for the industries, with automakers investing heavily in electrification and chipmakers expanding production in the U.S. following pandemic-related supply chain disruptions that raised economic and national security concerns.

    One of the driving forces behind them are federal subsidies signed into law last summer that are meant to encourage companies to produce electric vehicles, EV batteries, and computer chips domestically. Another is that states are flush with cash thanks to inflation-juiced tax collections and federal pandemic relief subsidies.

    The number of big projects and the size of state subsidy packages are extraordinary, said Nathan Jensen, a University of Texas professor who researches government economic development strategies.

    “It is kind of a Wild West moment,” Jensen said. “It’s wild money and every state seems to be in on it.”

    Good Jobs First, a nonprofit that tracks and is critical of corporate subsidies, said 2022 set a record for the number of billion-dollar-plus incentive deals. At least eight were finalized, though that figure might be higher since such deals can be cloaked in secrecy and take time to come to light.

    Eighteen of last year’s 23 known “megadeals,” in which state and local incentive packages to private companies exceeded $50 million in value, were for semiconductor and EV plants, according to the group’s data.

    More than $20 billion in public money was committed to subsidizing those known megadeals, according to Good Jobs First data. That total eclipsed the previous record of $17.7 billion that was committed to subsidizing such deals in 2013.

    Many of the companies drawing the biggest subsidy offers — such as Intel, Hyundai, Panasonic, Micron, Toyota, Ford and General Motors — are profitable and operate around the globe. Some lesser-known names in the nascent EV field are getting big offers too, such as Rivian, Volkswagen-backed Scout Motors and Vietnamese automaker VinFast.

    The subsidy offers are generally embraced by politicians from both major parties and the business elite, who point to promises of hundreds or thousands of jobs, massive investments in construction and equipment, and what they contend are immeasurable trickle-down benefits.

    Still, academics who study such subsidies find them to be a waste of money and rarely decisive in a company’s choice of location.

    In a 2021 paper arguing that subsidies are driven by politicians for their own benefit, researchers from The Citadel, the College of Charleston and the University of Louisville-Lafayette wrote that studies conclude “they do little, if anything, to promote meaningful improvements in economic outcomes.”

    The mounting cost of competing for the projects hasn’t dissuaded states from trying. On the contrary, they’re clambering to outdo each other.

    Michigan was stung by hometown Ford’s $11.4 billion commitment in 2021 to build electric vehicle and battery plants in Tennessee and Kentucky. It responded by pledging more than $2.5 billion for electric-vehicle projects by Ford and GM and plants by makers of EV batteries and battery components.

    Pennsylvania has yet to lure a microchip or EV factory, and the state’s business elite are sounding the alarm after watching neighboring Ohio land a $20 billion Intel plant.

    In his first budget speech to lawmakers, newly inaugurated Gov. Josh Shapiro said Pennsylvania needs to “get in the game” and warned that it would take money.

    Jabbing a finger in the air, he brought the room to a standing ovation, saying: ”It’s time to compete again here in Pennsylvania!”

    Oregon lawmakers hoping to attract a major semiconductor plant are advancing legislation that would marshal $200 million in subsidies and loosen decades-old protections against urban sprawl.

    The aim is to procure huge plots of land with ready-made utilities. That has elicited protests from conservationists who say the state mishandled developable land and agricultural groups that warned of the permanent destruction of high-quality farmland.

    Dick Sheehy, a retired site selection consultant who traveled the world to inspect possible locations for semiconductor makers, told a panel of Oregon lawmakers in January that states are tipping the scales over better-qualified competitors by offering larger incentive packages.

    “The money the state is putting up is so large that certain companies can’t afford not to look at it,” Sheehy said.

    In Texas, Gov. Greg Abbott promised to win passage of “economic development tools” during the current legislative session, saying the state lost out on a massive Micron semiconductor plant because it couldn’t match the $5.5 billion in tax credits offered by New York.

    “The CEO of Micron was basically begging me because he really wanted to do business in Texas. He knew Texas was a better place. He said, ‘Please could you come up with some more?’” Abbott told a Greater Arlington Chamber of Commerce crowd in February. “We gave every penny that we could give.”

    Asked about Abbott’s assertions, Micron declined to address Abbott’s description of the phone call with CEO Sanjay Mehrotra, but it called New York the most competitive state and listed reasons why it is the “ideal home” for its plant.

    Those included a compelling case made by top officials — including Gov. Kathy Hochul and U.S. Sen. Chuck Schumer — plus an attractive local workforce, local research and development partners, and a good quality of life for employees.

    In Oklahoma, frustration among lawmakers has been bubbling over since the state lost out on a string of projects: first a Tesla plant to Texas, then a Panasonic EV battery plant to Kansas and, just days ago, a Volkswagen EV battery plant to Canada.

    That latest loss led state Senate President Pro Tempore Greg Treat to create a committee to figure out what went wrong in Oklahoma’s bidding for a “megaproject.”

    Business-friendly Oklahoma shouldn’t keep losing out to other states, Treat said.

    “You never know if you’re being used so they can go to that other state so they can say, ‘Hey, Oklahoma is willing to do this,’” Treat said in an interview. “And they intend on going to that state the whole time.”

    ___

    Associated Press writers Sean Murphy in Oklahoma City and Andrew Selsky in Salem, Oregon, contributed to this report.

    ___

    Follow Marc Levy on Twitter: @timelywriter

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  • ‘War of the states’: EV, chip makers lavished with subsidies

    ‘War of the states’: EV, chip makers lavished with subsidies

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    HARRISBURG, Pa. — States are doling out more cash than ever to lure multibillion-dollar microchip, electric vehicle and battery factories, inspiring ever-more competition as they dig deeper into their pockets to attract big employers and capitalize on a wave of huge new projects.

    Georgia, Kansas, Michigan, New York, North Carolina, Ohio and Texas have made billion-dollar pledges for a microchip or EV plant, with more state-subsidized plant announcements by profitable automakers and semiconductor giants surely to come.

    States have long competed for big employers. But now they are floating more billion-dollar offers and offering record-high subsidies, lavishing companies with grants and low-interest loans, municipal road improvements, and breaks on taxes, real estate, power and water.

    “We’re in the second war of the states,” said John Boyd, a principal at the Florida-based Boyd Company, which advises on site selections. “That’s how competitive economic development is between the states in 2023.”

    The projects come at a transformative time for the industries, with automakers investing heavily in electrification and chipmakers expanding production in the U.S. following pandemic-related supply chain disruptions that raised economic and national security concerns.

    One of the driving forces behind them are federal subsidies signed into law last summer that are meant to encourage companies to produce electric vehicles, EV batteries, and computer chips domestically. Another is that states are flush with cash thanks to inflation-juiced tax collections and federal pandemic relief subsidies.

    The number of big projects and the size of state subsidy packages are extraordinary, said Nathan Jensen, a University of Texas professor who researches government economic development strategies.

    “It is kind of a Wild West moment,” Jensen said. “It’s wild money and every state seems to be in on it.”

    Good Jobs First, a nonprofit that tracks and is critical of corporate subsidies, said 2022 set a record for the number of billion-dollar-plus incentive deals. At least eight were finalized, though that figure might be higher since such deals can be cloaked in secrecy and take time to come to light.

    Eighteen of last year’s 23 known “megadeals,” in which state and local incentive packages to private companies exceeded $50 million in value, were for semiconductor and EV plants, according to the group’s data.

    More than $20 billion in public money was committed to subsidizing those known megadeals, according to Good Jobs First data. That total eclipsed the previous record of $17.7 billion that was committed to subsidizing such deals in 2013.

    Many of the companies drawing the biggest subsidy offers — such as Intel, Hyundai, Panasonic, Micron, Toyota, Ford and General Motors — are profitable and operate around the globe. Some lesser-known names in the nascent EV field are getting big offers too, such as Rivian, Volkswagen-backed Scout Motors and Vietnamese automaker VinFast.

    The subsidy offers are generally embraced by politicians from both major parties and the business elite, who point to promises of hundreds or thousands of jobs, massive investments in construction and equipment, and what they contend are immeasurable trickle-down benefits.

    Still, academics who study such subsidies find them to be a waste of money and rarely decisive in a company’s choice of location.

    In a 2021 paper arguing that subsidies are driven by politicians for their own benefit, researchers from The Citadel, the College of Charleston and the University of Louisville-Lafayette wrote that studies conclude “they do little, if anything, to promote meaningful improvements in economic outcomes.”

    The mounting cost of competing for the projects hasn’t dissuaded states from trying. On the contrary, they’re clambering to outdo each other.

    Michigan was stung by hometown Ford’s $11.4 billion commitment in 2021 to build electric vehicle and battery plants in Tennessee and Kentucky. It responded by pledging more than $2.5 billion for electric-vehicle projects by Ford and GM and plants by makers of EV batteries and battery components.

    Pennsylvania has yet to lure a microchip or EV factory, and the state’s business elite are sounding the alarm after watching neighboring Ohio land a $20 billion Intel plant.

    In his first budget speech to lawmakers, newly inaugurated Gov. Josh Shapiro said Pennsylvania needs to “get in the game” and warned that it would take money.

    Jabbing a finger in the air, he brought the room to a standing ovation, saying: ”It’s time to compete again here in Pennsylvania!”

    Oregon lawmakers hoping to attract a major semiconductor plant are advancing legislation that would marshal $200 million in subsidies and loosen decades-old protections against urban sprawl.

    The aim is to procure huge plots of land with ready-made utilities. That has elicited protests from conservationists who say the state mishandled developable land and agricultural groups that warned of the permanent destruction of high-quality farmland.

    Dick Sheehy, a retired site selection consultant who traveled the world to inspect possible locations for semiconductor makers, told a panel of Oregon lawmakers in January that states are tipping the scales over better-qualified competitors by offering larger incentive packages.

    “The money the state is putting up is so large that certain companies can’t afford not to look at it,” Sheehy said.

    In Texas, Gov. Greg Abbott promised to win passage of “economic development tools” during the current legislative session, saying the state lost out on a massive Micron semiconductor plant because it couldn’t match the $5.5 billion in tax credits offered by New York.

    “The CEO of Micron was basically begging me because he really wanted to do business in Texas. He knew Texas was a better place. He said, ‘Please could you come up with some more?’” Abbott told a Greater Arlington Chamber of Commerce crowd in February. “We gave every penny that we could give.”

    Asked about Abbott’s assertions, Micron declined to address Abbott’s description of the phone call with CEO Sanjay Mehrotra, but it called New York the most competitive state and listed reasons why it is the “ideal home” for its plant.

    Those included a compelling case made by top officials — including Gov. Kathy Hochul and U.S. Sen. Chuck Schumer — plus an attractive local workforce, local research and development partners, and a good quality of life for employees.

    In Oklahoma, frustration among lawmakers has been bubbling over since the state lost out on a string of projects: first a Tesla plant to Texas, then a Panasonic EV battery plant to Kansas and, just days ago, a Volkswagen EV battery plant to Canada.

    That latest loss led state Senate President Pro Tempore Greg Treat to create a committee to figure out what went wrong in Oklahoma’s bidding for a “megaproject.”

    Business-friendly Oklahoma shouldn’t keep losing out to other states, Treat said.

    “You never know if you’re being used so they can go to that other state so they can say, ‘Hey, Oklahoma is willing to do this,’” Treat said in an interview. “And they intend on going to that state the whole time.”

    ___

    Associated Press writers Sean Murphy in Oklahoma City and Andrew Selsky in Salem, Oregon, contributed to this report.

    ___

    Follow Marc Levy on Twitter: @timelywriter

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  • Many electric vehicles to lose big tax credit with new rules

    Many electric vehicles to lose big tax credit with new rules

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    WASHINGTON (AP) — Fewer new electric vehicles will qualify for a full $7,500 federal tax credit later this year, and many will get only half that, under rules proposed Friday by the U.S. Treasury Department.

    The rules, required under last year’s Inflation Reduction Act, are likely to slow consumer acceptance of electric vehicles and could delay President Joe Biden’s ambitious goal that half of new passenger vehicles sold in the U.S. run on electricity by 2030.

    The new rules take effect April 18 and are aimed at reducing U.S. dependence on China and other countries for battery supply chains for electric vehicles.

    Electric vehicles now cost an average of more than $58,000, according to Kelley Blue Book, a price that’s beyond the reach of many U.S. households. The tax credits are designed to bring prices down and attract more buyers. But $3,750, half the full credit, may not be enough to entice them away from less-costly gasoline-powered vehicles.

    Biden administration officials concede that fewer electric vehicles will be eligible for tax credits in the short term because of the rules, which set standards for where EV battery parts and minerals come from. But they say that, over time, more EVs and parts will be manufactured in the U.S., creating a domestic supply chain and more jobs. The credits and other measures also will end U.S. dependence on China for parts and minerals, officials contend.

    The new rules will help consumers save money on EVs “and hundreds of dollars per year on gas, while creating American manufacturing jobs and strengthening our energy and national security,” Treasury Secretary Janet Yellen said Friday.

    But Sen. Joe Manchin, the West Virginia Democrat who negotiated terms in the new law that require battery sourcing in North America, said the guidance released by the Treasury Department “completely ignores the intent of the Inflation Reduction Act.″

    Manchin called it “horrific” that the Biden administration “continues to ignore the purpose of the law, which is to bring manufacturing back to America and ensure we have reliable and secure supply chains.″

    Referring to the proposal’s 60-day comment period, Manchin said, “My comment is simple: Stop this now. Just follow the law.”

    Drivers looking to buy an EV must move quickly to get the full $7,500 tax credit. The Internal Revenue Service lists more than three dozen electric or plug-in hybrid passenger vehicles made in North America that now are eligible. But some won’t qualify or will get only half once the new Treasury Department rules take effect in less than three weeks.

    A Treasury official wouldn’t give an estimate of how many EVs would be eligible under the new rules. The department plans to publish a list on April 18, the official said.

    Automakers have to certify that their vehicles meet requirements for full or partial tax credits.

    John Bozzella, CEO of the Alliance for Automotive Innovation, an industry trade group, said only a few of the 91 EV models now for sale in the U.S. likely will get the full credit, although some will qualify for half.

    “We now know the EV tax credit playing field for the next year or so. March 2023 was as good as it gets,″ Bozzella said.

    The big issue is new rules limiting the percentage of battery parts and minerals that come from countries that don’t have free trade or mineral agreements with the United States.

    This year, at least 40% of the value of battery minerals must be mined, processed or recycled in the U.S. or countries with which it has trade deals. That rises 10% every year until it hits 80% after 2026.

    Also, at least 50% of the value of battery parts must be manufactured or assembled in North America this year. That requirement rises to 60% next year and in 2025 and jumps 10% each year until it hits 100% after 2028.

    Some automakers can meet the battery parts sourcing requirements, but few will be able to comply with the mineral provisions, said Guidehouse Research e-Mobility analyst Sam Abuelsamid. Much of the lithium used in EV batteries now comes from China.

    “The minerals requirement is going to be the really challenging one,” Abuelsamid said. “Setting up refining for lithium in other locations is probably going to take the longest.”

    General Motors, though, said Friday at least three of its EVs will qualify for the full credit. The Cadillac Lyriq, which is now on sale, will be eligible as of April 18, while the Chevrolet Blazer and Equinox will qualify when they reach showrooms later in the year. GM is working to get the full $7,500 for other EVs and intends to keep it as the battery content requirements get tougher, a spokesman said. The company said it has worked on a domestic supply chain and is building batteries in the U.S.

    The Inflation Reduction Act also places price limits on new electric vehicles: $55,000 for cars and $80,000 for pickups, vans and SUVs. There also are income limits aimed to stop wealthier people from getting credits. Buyers cannot have an adjusted gross annual income above $150,000 if single, $300,000 if filing jointly and $225,000 if head of a household.

    In addition, starting in 2025, battery minerals cannot come from a “foreign entity of concern,” mainly China and Russia. Battery parts cannot be sourced in those countries starting in 2024; minerals can’t come from those countries in 2025.

    The Biden administration said rules governing that requirement are in the works.

    The new rules define principles that countries must meet to be eligible. Australia, Bahrain, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Israel, Jordan, Korea, Mexico, Morocco, Nicaragua, Oman, Panama, Peru, Singapore and Japan are on the list. Japan this week reached a deal with the U.S. on trading in critical minerals for EV batteries.

    Even though the proposed rules are effective April 18, the Biden administration is taking public comments, and the rules can be modified later, including the addition of countries that negotiate trade agreements with the U.S.

    The government says companies have announced at least $45 billion in U.S. investments since the Inflation Reduction Act was passed.

    Senate Finance Committee Chairman Ron Wyden, D-Oregon, said he has concerns about the battery material provisions. “Free trade agreements cannot be unilaterally decided by the executive branch,” he said during a recent hearing. “They require consultation and consent from Congress. That includes any agreements on critical minerals.”

    ___

    Krisher reported from Detroit.

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  • EPA approves California rules phasing out diesel trucks

    EPA approves California rules phasing out diesel trucks

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    SACRAMENTO, Calif. — The Biden administration cleared the way Friday for California’s plan to phase out a wide range of diesel-powered trucks, part of the state’s efforts to drastically cut planet-warming emissions and improve air quality in heavy-traffic areas like ports along the coast.

    The decision by the U.S. Environmental Protection Agency allows California — which has some of the nation’s worst air pollution — to require truck manufacturers to sell an increasing number of zero-emission trucks over the next couple of decades. The rule applies to a wide range of trucks including box trucks, semitrailers and even large passenger pick-ups.

    “Under the Clean Air Act, California has longstanding authority to address pollution from cars and trucks. Today’s announcement allows the state to take additional steps in reducing their transportation emissions through these new regulatory actions,” said EPA Administrator Michael Regan, in a statement.

    Gov. Gavin Newsom applauded the state’s role as a leader for setting ambitious vehicle emission standards.

    “We’re leading the charge to get dirty trucks and buses – the most polluting vehicles – off our streets, and other states and countries are lining up to follow our lead,” the Democrat said in a statement.

    The EPA typically sets standards for tailpipe emissions from passenger cars, trucks and other vehicles, but California has historically been granted waivers to impose its own, stricter standards. Other states can then follow suit, and eight other states plan to adopt California’s truck standards, Newsom’s office said. In a letter last year, attorneys general from 15 states, Washington, D.C., and New York City urged the EPA to approve the California truck standards.

    The transportation sector accounts for nearly 40% of California’s greenhouse gas emissions. Newsom has already moved to ban the sale of new cars that run entirely on gasoline by 2035. The EPA has not acted on those rules.

    The new truck standards are aimed at companies that make trucks and those that own large quantities of them. Companies owning 50 or more trucks will have to report information to the state about how they use these trucks to ship goods and provide shuttle services. Manufacturers will have to sell a higher percentage of zero-emission vehicles starting in 2024. Depending on the class of truck, zero-emission ones will have to make up 40% to 75% of sales by 2035.

    The announcement came as advocates are pushing for more ambitious tailpipe emissions standards in other states and at the national level.

    “We don’t just fight for California, we fight for all of the communities,” said Jan Victor Andasan, an activist with East Yard Communities for Environmental Justice. The group advocates for better air quality in and around Los Angeles, the nation’s second-most populous city that is known for its dense traffic and intense smog.

    Andasan and other environmental activists from across the country who are a part of the Moving Forward Network, a 50-member group based at Occidental College in Los Angeles, met with EPA officials recently to discuss national regulations to limit emissions from trucks and other vehicles.

    But some in the trucking industry are concerned about how costly and burdensome the transition will be for truck drivers and companies.

    “The state and federal regulators collaborating on this unrealistic patchwork of regulations have no grasp on the real costs of designing, building, manufacturing and operating the trucks that deliver their groceries, clothes and goods,” said Chris Spear, president of the American Trucking Association, in a statement.

    “They will certainly feel the pain when these fanciful projections lead to catastrophic disruptions well beyond California’s borders,” he added.

    Federal pollution standards for heavy trucks are also getting tougher. The EPA released rules that will cut nitrogen oxide pollution, which contributes to the formation of smog, by more than 80% in 2027. The agency will propose greenhouse gas emissions limits this year.

    The agency expects the new standards and government investment will lead to zero-emissions electric and hydrogen fuel cell trucks carrying most of the nation’s freight.

    California activists Andasan and Brenda Huerta Soto, an organizer with the People’s Collective for Environmental Justice, are troubled by the impact of pollution from trucks and other vehicles on communities with a large population of residents of color that live near busy ports in Los Angeles, Oakland and other cities as well as warehouse-dense inland areas.

    Huerta Soto works in Southern California’s Inland Empire, where a high concentration of trucks pass through to transport goods. On top of truck pollution, the many cars, trucks and trains that travel through the area burden residents with noises, odors and pollutants these vehicles emit, she said.

    “We have the technology, and we have the money” to move toward zero-emission vehicles, she said. ___

    Associated Press writers Tom Krisher in Detroit and Matthew Daly in Washington, D.C., contributed to this report.

    ___

    Sophie Austin is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on Twitter: @sophieadanna

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  • A train carrying highly flammable ethanol derails in Minnesota, sparking an hourslong fire. Now 4 more cars with ethanol could spill | CNN

    A train carrying highly flammable ethanol derails in Minnesota, sparking an hourslong fire. Now 4 more cars with ethanol could spill | CNN

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    CNN
     — 

    A train hauling ethanol derailed Thursday morning in Raymond, Minnesota, igniting several rail cars and forcing a mandatory evacuation of the city of about 800, officials said.

    The fire was still burning more than 8 hours after the derailment, the US Environmental Protection Agency said in a statement late Thursday morning.

    “Four cars containing ethanol, a highly flammable product, ruptured, caught fire and continue to burn,” said the EPA, which had members at the scene by 6:30 a.m.

    And there’s a risk that more ethanol could spill.

    “Four additional cars containing ethanol may also release,” the EPA said. “The local fire department is currently the lead for the response and ordered a mandatory evacuation of the city. The evacuation remains in place.”

    The EPA team is on the ground in Raymond to conduct air quality monitoring.

    Preliminary information suggests 14 of the train’s 40 cars were carrying hazardous material, “including ethanol, which was released – leading to a fire,” US Transportation Secretary Pete Buttigieg told CNN on Thursday.

    In addition to ethanol, the train was carrying mixed freight including corn syrup, said Lena Kent, general director of public affairs for BNSF Railway.

    Ethanol can explode when mixed with vapor and air. Ethanol exposure can lead to coughing, dizziness, the feeling of burning eyes, drowsiness and unconsciousness.

    First responders work the scene of a train derailment Thursday in Raymond, Minnesota.

    The derailment happened around 1 a.m. Homes within a half-mile of the derailment were evacuated, the Kandiyohi County Sheriff’s Office said.

    “There have been no injuries as a result of the crash or emergency response,” the sheriff’s office posted on Facebook. “BNSF specialists are on scene and continued mitigation is occurring.”

    Brittney Phelps and her family were startled by a knock on their door at 1:30 a.m. It was a first responder going door to door telling residents to flee as a precaution.

    “I heard a loud crash but didn’t think anything of it ‘til ambulances were outside the house,” Phelps said.

    She soon smelled the stench of ethanol and saw the wrecked train cars and large fire, Phelps told CNN.

    The derailment happened at about 1 a.m. Thursday, the Raymond Fire Department said.

    The Minnesota Department of Transportation closed a nearby highway due to the derailment and blaze, the fire department said. The main railroad track is blocked, and an estimated time for reopening the line was not available.

    “The City of Raymond is not accessible to the public, so Unity Church in Prinsburg is willing to be a drop off location for bottled water and snacks for the firemen,” the wife of a fire department member said, according to the department’s Facebook page. “These brave souls have been working hard for hours already, and have several hours of work ahead for them.”

    The cause of the derailment is under investigation. A team from the National Transportation Safety Board is expected to arrive at the site Thursday afternoon, the NTSB said.

    Minnesota Gov. Tim Walz and state emergency management leadership will travel to Raymond on Thursday to visit the site of the derailment, the governor’s office said.

    The derailment happened nearly two months after another train carrying hazardous chemicals derailed in East Palestine, Ohio – igniting a dayslong inferno, spewing poisonous fumes into the air and killing thousands of fish. The Ohio health department is preparing to offer health tests to first responders as part of a long-term effort to monitor the health of those who responded to the disaster.

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  • House GOP pushes sprawling bill to ‘unleash’ American energy

    House GOP pushes sprawling bill to ‘unleash’ American energy

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    WASHINGTON — House Republicans are set to approve a sprawling energy package that seeks to undo virtually all of President Joe Biden’s agenda to address climate change.

    The massive GOP bill up for a vote Thursday would sharply increase domestic production of oil, natural gas and coal, and ease permitting restrictions that delay pipelines, refineries and other projects. It also would boost production of critical minerals such as lithium, nickel and cobalt that are used in products such as electric vehicles, computers and cellphones.

    Republicans call the bill the “Lower Energy Costs Act” and have given it the symbolic label H.R. 1 — the top legislative priority of the new GOP majority, which took control of the House in January. The measure, which combines dozens of separate proposals, represents more than two years of work by Republicans who are have chafed at Biden’s environmental agenda. They say Biden’s efforts have thwarted U.S. energy production and increased costs at the gas pump and grocery store.

    “Families are struggling because of President Biden’s war on American energy,” said House Majority Leader Steve Scalise, R-La., one of the bill’s main authors. “We have way too many energy resources here in America to be relying on hostile nations and paying (high prices) at the pump.”

    The GOP bill will “unleash those resources so we can produce energy in America,” Scalise said. “We don’t have to be addicted to foreign countries that don’t like us.”

    Democrats called the bill a giveaway to big oil companies.

    “Republicans refuse to hold polluters accountable for the damage they cause to our air, our water, our communities and our climate,” said New Jersey Rep. Frank Pallone, the top Democrat on the House Energy and Commerce Committee.

    “While Democrats delivered historic wins for the American people by passing historic climate legislation, Republicans are actively working to undermine that progress and do the bidding of their polluter friends,” Pallone said.

    Biden has threatened to veto the energy bill if it reaches his desk, and Senate Majority Leader Chuck Schumer, D-N.Y., called it “dead on arrival” in the Democratic-controlled Senate.

    House Speaker Kevin McCarthy, R-Calif., said the GOP bill “restores American energy leadership by repealing unnecessary taxes and overregulation on American energy producers,” and “makes it easier to build things in America” by placing a two-year time limit on environmental reviews that now take an average of seven years.

    “Every time we need a pipeline, a road or a dam, it gets held up five to seven years and adds millions of dollars in costs for the project to comply with Washington’s permitting process,” McCarthy said in speech on the House floor. “It’s too long, it’s unaffordable, it’s not based on science and it’s holding us back.”

    He pointed to a project to modify and improve Lake Isabella Dam in his central California district that has lasted 18 years and still is not completed.

    “Permitting reform isn’t for everyone,” McCarthy added. “If you like paying more at the pump, you don’t want to make it faster for American workers to build more pipelines. If you’re China, you’d rather America sit back and let others lead. And if you’re a bureaucrat, maybe you really do enjoy reading the 600-page environmental impact studies.”

    Most Americans want lower prices and more U.S. energy production, McCarthy said — results he said the bill will deliver.

    Democrats called that misleading and said the GOP plan was a thinly disguised effort to reward oil companies and other energy producers that have contributed millions of dollars to GOP campaigns.

    Arizona Rep. Raul Grijalva, the top Democrat on the House Natural Resources Committee, derided the bill as the “Polluters Over People Act” and “a nearly 200-page love letter to polluting industries.”

    Instead of reining in “Big Oil” companies that have reported record profits while “hoarding thousands of unused leases” on public lands and waters, the GOP bill lowers royalty rates paid by energy producers and reinstates noncompetitive leasing of public lands, Grijalva said.

    The bill also gives mining companies “a veritable free-for-all on our public lands” and “makes mockery of tribal consultation” required under federal law, he said.

    Under the GOP plan, mining companies will “destroy sacred and special places” throughout the West, “ruin the landscape and leave behind a toxic mess that pollutes our water and hurts our health — all without paying a cent to the American people,” Grijalva said.

    Schumer called the measure “a giveaway to Big Oil pretending to be an energy package.”

    The House energy package “would gut important environmental safeguards on fossil fuel projects,” locking America “into expensive, erratic and dirty energy sources while setting us back more than a decade on our transition to clean energy,” Schumer said.

    Schumer said he supports streamlining the nation’s cumbersome permitting process for energy projects, especially those that will deliver “clean energy” such as wind, solar and geothermal power. “But the Republican plan falls woefully short on this front as well,” he said, calling on Republicans to back reforms that would help ease the transition to renewable energy and accelerate construction of transmission lines to bolster the nation’s aging power grid.

    Schumer and other Democrats said the Republican bill would repeal a new $27 billion Greenhouse Gas Reduction Fund and other parts of the climate and health care law passed by Democrats last year. The bill also would eliminate a new tax on methane pollution.

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  • Court hears appeal of ruling favoring Musk in SolarCity deal

    Court hears appeal of ruling favoring Musk in SolarCity deal

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    DOVER, Del. — Attorneys for a group of Tesla shareholders are asking the Delaware Supreme Court to overturn a judge’s decision in favor of CEO Elon Musk in a lawsuit challenging the electric car maker’s $2.4 billion acquisition of a solar panel company founded by two of his cousins.

    The plaintiffs argued Wednesday that a Chancery Court judge erred in finding that Tesla’s deal to acquire SolarCity in 2016 was “entirely fair,” even though the judge found that the process by which Tesla’s board of directors negotiated and recommended the deal to shareholders was “far from perfect.”

    “Elon was more involved in the process than a conflicted fiduciary should be. And conflicts among other Tesla Board members were not completely neutralized,” former Vice Chancellor Joseph Slights wrote last year. “With that said, the Tesla board meaningfully vetted the acquisition, and Elon did not stand in its way. Equally if not more important, the preponderance of the evidence reveals that Tesla paid a fair price — SolarCity was, at a minimum, worth what Tesla paid for it, and the acquisition otherwise was highly beneficial to Tesla.”

    At the time of the acquisition, Musk owned about 22% of Tesla’s common stock and was the largest stockholder of SolarCity, as well as chairman of its board of directors.

    A key issue presented to the Supreme Court is Slights’ conclusion that the deal met the heightened scrutiny of Delaware’s “entire fairness” standard.

    Typically, under Delaware’s “business judgment” rule, courts give deference to a corporate board’s decision-making unless there is evidence that directors had conflicts or acted in bad faith. If a plaintiff can overcome the business judgment rule’s presumption because the deal involved a controlling shareholder or because directors might have been conflicted, the board’s action is subject to an “entire fairness” analysis. That shifts the burden to the corporation to show that the deal involved both fair dealing and fair price.

    Plaintiffs’ attorney Michael Hanrahan argued Wednesday that Slights put too much emphasis on the price Tesla paid for SolarCity, and not enough on the deal process, which the plaintiffs contend was tainted by the failure to appoint an independent committee to negotiate the deal. He also argued that the judge’s analysis of the deal price was flawed, and that shareholders who voted to approve the deal, even though the vote was not required under Delaware law, were not properly informed.

    “Musk’s pervasive and undisclosed interference in the process require a legal conclusion of unfair dealing,” Hanrahan said.

    “The trial court misapplied entire fairness because it essentially wrote fair dealing out of the standard, holding that the linchpin of entire fairness is fair price,” Hanrahan added. “…Because the Court of Chancery made fair price the foundation of its opinion, if its fair price finding was wrong, the whole house of cards comes down.”

    Evan Chesler, an attorney for Musk, noted that the SolarCity acquisition had been a strategic objective for Tesla for 10 years before the deal was completed, belying the argument that it was a last-minute “bailout” to save an insolvent SolarCity from bankruptcy.

    Chesler also noted that, despite the judge’s concerns about Musk’s involvement, his ruling includes 10 pages discussing the strengths of the deal process.

    “Basically, the appellants seek reversal because they don’t agree with the way the trial court marshaled and weighed the evidence,” he said.

    Slights’ ruling last April followed a July 2021 court appearance in which a defiant Musk defended the deal and sparred with attorneys for the plaintiffs, calling one lawyer “a bad human being.” Musk chose to fight the lawsuit in court even after other directors on Tesla’s board reached a $60 million settlement, without admitting fault.

    The Supreme Court is expected to issue its ruling within 90 days.

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  • Challenger wins close race to lead United Auto Workers union

    Challenger wins close race to lead United Auto Workers union

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    DETROIT — A challenger defeated the president of the United Auto Workers in a close election and vowed Saturday to take a more confrontational stance in negotiating with the big automakers.

    A court-appointed monitor declared challenger Shawn Fain the winner over incumbent Ray Curry. Fain’s slate of candidates won control of the big union, as workers rejected most incumbents in the wake of a bribery and embezzlement scandal

    It was the 372,000-member union’s first direct election of its 14-member International Executive Board, which came in the wake of the wide-ranging scandal that landed two former presidents in prison.

    The vote count had been going on since March 1, and the outcome was uncertain going into Saturday because of challenges against several hundred ballots.

    Curry had filed a protest alleging election irregularities and campaign-financing violations. But he conceded Saturday and said Fain would be sworn in on Sunday.

    Fain said members clearly wanted the union to become more aggressive in dealing with the auto makers.

    “Today we put the companies on notice the fighting UAW is back,” Fain said in a video.

    Fain vowed to end two-tiered contracts that provide lower pay and fewer benefits for some workers. He said the UAW will fight against factory closures that result in lost union jobs.

    “We’ve seen plant after plant close without any serious fight from our union,” he said. “We’ve lost 40% of our active membership over the past 20 years. That ends here.”

    Fain also promised to clean up the union.

    Fain, 54, now an administrator with the international union in Detroit, had 69,459 votes, or 50.2%, while Curry had 68,976 votes, or 49.8%, according to an unofficial tally as the counting neared completion.

    Earlier, Curry had asked court-appointed monitor Neil Barofsky to hold another runoff election because of the alleged irregularities, but Barofsky denied the request.

    Fain’s UAW Members United slate now holds seven of 14 seats on the board, with one independent member siding with his slate. The Curry Solidarity Team slate has six board members. Four of five top officers are from Fain’s slate, including the secretary-treasurer and two of three vice presidents.

    The new leadership will have to move quickly to gear up for what are expected to be contentious contract talks coming up this summer with Detroit’s three automakers, Ford, General Motors and Stellantis.

    Many in the industry expect strikes against the companies by the union.

    Fain will have little time to prepare for the union’s bargaining convention, which is scheduled to start Monday in Detroit. Delegates to the convention decide what the union will want in upcoming contract talks.

    In the past, contracts with the Detroit Three set the standard for manufacturing wages nationwide. Fain’s statement said he wants to return to the union setting the wage and benefit standard for other sectors of the economy.

    Fain and his slate will have to deal with member demands to restore concessions made when the automakers were headed into financial trouble starting in 2007. Many want cost-of-living pay raises, general raises, defined-benefit pensions for all workers, and eliminating tiers of workers so they all get the same pay and benefits.

    Automakers prefer annual profit-sharing checks instead of raises so they pay workers when times are good and can cut expenses during economic downturns.

    In a February draft of a transition plan, Fain wrote about a big shakeup coming in his first 30 days in office. Jobs will change, and new things will be expected of workers, some of whom will leave, it said.

    “Everything we do, at every stage, must be reinforcing the message: there is a new sheriff in town,” Fain’s memo said.

    The memo talks about a campaign to prepare workers for strikes.

    Mike Booth, one of the new vice presidents, said the automakers are starting to argue that they are financially strapped because they have to fund the development of new electric vehicles. “You can’t develop an electric vehicle product on the backs of UAW members,” he said.

    Strikes are possible as the union pushes to organize joint-venture battery plants being built by the companies, and to reverse a Stellantis decision to begin closing a plant in Belvidere, Illinois. Under Curry’s leadership for nearly the past two years, the UAW has taken a more aggressive stance in labor talks, having gone on strike against Volvo Trucks, John Deere, the University of California and CNHI, a maker of agricultural and construction equipment.

    When asked about new UAW leadership on Friday, Ford CEO Jim Farley said his company gets along with the union. “Whomever is leading the UAW, we’ll have a great relationship with, and we’ll work hard to improve our industry … We’ll welcome whoever leads UAW,” he said.

    Curry, who was not part of the scandal, was elected to the UAW’s top post by the executive board in June 2021.

    The leadership change came after union members decided to directly vote on leaders for the first time in the union’s 87-year history. Under the old system, leaders were picked by delegates to a convention who were selected by local union offices. The new slate of officers was picked by the current leadership, and rarely was there serious opposition.

    The direct voting came after 11 union officials and a late official’s spouse pleaded guilty in the corruption probe, including the two former presidents who were sentenced to prison. The first criminal charges in the probe were filed in 2017.

    To avoid a federal takeover, the union agreed to reforms and Barofsky’s appointment to oversee the UAW and elections of the executive board.

    ____

    This story has been corrected to say that it was Shawn Fain, not Ray Curry, who said he wants to return to the United Auto Workers setting the wage and benefit standard for other sectors of the economy.

    ___

    Associated Press writers Adrian Sainz in Memphis, Tennessee, and David Koenig in Dallas contributed to this report.

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  • Ford’s Tenn. plant could make 500K electric pickups a year

    Ford’s Tenn. plant could make 500K electric pickups a year

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    STANTON, Tenn. (AP) — Ford said Friday that its assembly plant under construction in western Tennessee will be able to build up to 500,000 electric pickup trucks a year at full output, part of the automaker’s drive to produce 2 million electric vehicles worldwide annually by late 2026.

    The company made the announcement as it provided updates on the so-called BlueOval City project at an event attended by Ford executives, project leaders, politicians and residents who live near the sprawling Tennessee site.

    The Dearborn, Michigan, automaker announced the project in September of 2021 that would build the truck plant and a battery factory on 3,600 acres (1,460-hectares) in rural Stanton, located in Haywood County northeast of Memphis. Known as the Memphis Regional Megasite, the land designated by the state for industrial development sat unused for years before Ford moved in.

    Ford’s assembly plant, and the battery plant run by South Korean battery maker SK On, will employ about 6,000 people with an investment of roughly $5.6 billion, Ford said.

    The joint venture will also construct twin battery plants in Glendale, Kentucky, with an estimated $5.8 billion investment. The projects are expected to create more than 10,800 jobs and shift the automaker’s future manufacturing footprint toward the South while putting an emphasis on green energy.

    Construction on the Tennessee site began last year. Ford plans to start production by 2025, and that timetable remains in place, company officials said

    Construction is about 50% complete, said Donna Langford, Ford’s project manager. Media members who joined a bus tour of the site in the rain Friday saw steel skeletons of the massive, partially built structures that will house the battery plant and the truck assembly factory. Once finished, the site will also include a Tennessee Valley Authority substation to help power the plants and a Tennessee College of Applied Technology, where workforce training will take place.

    The automaker said its second-generation electric truck is “code named Project T3,” and Ford CEO Jim Farley touted the truck’s simplified design and high-quality technology.

    Ford did not release images of the new truck during the event, but it did display colorful drawings made by Tennessee schoolchildren with suggestions for its design — including some trucks that would fly.

    In a reference to the fast and tough Star Wars ship, Farley said the new truck “is going to be like the Millennium Falcon, with a back porch attached.”

    Speaking with reporters, Farley acknowledged that the Tennessee truck factory would be the most environmentally friendly new plant Ford has ever built.

    “Not even close,” said Farley, adding later that “this is a new industrial revolution about clean, carbon neutral manufacturing.”

    Ford says the plant is designed to be its first carbon-neutral vehicle manufacturing campus. It will have a 30% smaller general assembly footprint than traditional plants by simplifying sub-assemblies and reducing the number of stations on the line, Farley said.

    “We shrunk the plant because we have less people, we have less stations,” Farley said.

    Ford also said it will use recovered energy from the site to provide carbon-free heat for the assembly plant and save water by reducing evaporation from the site’s cooling towers.

    Before landing the Ford project, Tennessee had invested more than $174 million in the unused Memphis megasite. Tennessee lawmakers have committed to spending nearly $900 million on state incentives, infrastructure upgrades and more as part of a sweeping plan with Ford. The agreement included $500 million in capital grant funds.

    The lease essentially grants the land to Ford through December 2051. The rent is $1 for the entire lease term.

    Some of the rural West Tennessee counties surrounding the plant hope it will help boost their economies.

    With an economy based largely on farming, Haywood County saw its population shrink by 4.9% to 17,864 people from 2010 to 2020, one of 14 counties to lose population as Tennessee grew as a whole by 8.9%, according to census data.

    The factory is expected to bring both small and large businesses to the area, including hotels, restaurants, health care facilities and suppliers for the plant, among others. Real estate values also could increase.

    Ford’s leaders have pledged to help the communities near the plant. The Ford Motor Company Fund announced Friday it has awarded 17 grants of $75,000 to $100,000 each to fire departments, arts and parks conservancy groups, a community center, local governments and other organizations in six counties.

    The $1.2 million grant program received 200 applications, said Mary Culler, president of the Ford Motor Company Fund.

    “Those are the kinds of grass-roots, capital projects that these towns and municipalities are looking for,” Culler said.

    As it seeks to develop its workforce in Tennessee, Ford said it has begun a talent development program that will support STEM instruction in K-12 schools, bring advanced manufacturing education to schools, and expand certification, dual-enrollment and internship opportunities for students.

    ____

    AP Auto Writer Tom Krisher contributed to this story from Detroit.

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  • Ford says EV unit losing billions, should be seen as startup

    Ford says EV unit losing billions, should be seen as startup

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    DETROIT (AP) — Ford Motor Co.’s electric vehicle business has lost $3 billion before taxes during the past two years and will lose a similar amount this year as the company invests heavily in the new technology.

    The figures were released Thursday as Ford rolled out a new way of reporting financial results. The new business structure separates electric vehicles, the profitable internal combustion and commercial vehicle operations into three operating units.

    Company officials said the electric vehicle unit, called “Ford Model e,” will be profitable before taxes by late 2026 with an 8% pretax profit margin. But they wouldn’t say exactly when it’s expected to start making money.

    Chief Financial Officer John Lawler said Model e should be viewed as a startup company within Ford.

    “As everyone knows, EV startups lose money while they invest in capability, develop knowledge, build (sales) volume and gain (market) share,” he said.

    Model e, he said, is working on second- and even third-generation electric vehicles. It currently offers three EVs for sale in the U.S.: the Mustang Mach E SUV, the F-150 Lightning pickup and an electric Transit commercial van.

    The new corporate reporting system, Lawler said, is designed to give investors more transparency than the old system of reporting results by geographic regions. The automaker calculated earnings for each of the three units during the past two calendar years.

    Model e had pretax losses of $900 million in 2021 and $2.1 billion last year, and it is expected to lose $3 billion this year. In the past two years Ford has announced it would build four new battery factories and a new vehicle assembly plant as well as spending heavily to acquire raw materials to build electric vehicles.

    By the end of this year, the company based in Dearborn, Michigan, expects to be building electric vehicles at a rate of 600,000 per year, reaching a rate of 2 million per year by the end of 2026.

    Last year, the pretax profit margin for Model e was minus 40%, Lawler said. To get to a positive 8% by the end of 2026, the company expects economies of scale — spreading costs over more vehicles sold— to be worth 20 points of the improvement. Design and engineering improvements will bring 15 points, battery cost reductions 10 points and 3 points will come from other areas including federal tax incentives and raw material price reductions.

    Wells Fargo analyst Colin Langan calculated that Ford would need $15,000 in cost savings per vehicle to get to an 8% profit margin. He asked what gives Ford confidence it can reach that number. “It just seems like quite a big number,” he said.

    Lawler replied that Ford is looking at a whole new way of designing vehicles, focusing on energy efficiency, including aerodynamics. “Every decision is about optimizing energy efficiency so that we can get the smallest battery possible to hit the range target that we have for that vehicle,” he said.

    Ford also will simplify its manufacturing process, maximizing common parts in next generation of EVs, saving over the current generation of repurposed internal combustion vehicle underpinnings. “There is a significant amount of opportunity in there to identify efficiencies and drive those home,” he said.

    Ford’s disclosure of the losses shows “ugly industry truths” that only Tesla is making a profit on electric vehicles, CFRA analyst Garrett Nelson wrote in an investor note.

    “EVs are likely to be a material drag on near- and intermediate-term earnings,” he wrote. He maintained a “buy” opinion on Ford shares but cut his one-year share price target by $1 to $16.

    Ford Blue, the unit that sells internal combustion and gas-electric hybrid vehicles, made just over $10 billion before taxes during the last two years. Ford Pro, the commercial vehicle unit, made $5.9 billion during those years, the company said.

    For this year, Ford expects Ford Blue to post a $7 billion pretax profit, modestly better than last year. Ford Pro is expected to earn $6 billion before taxes, nearly double its earnings last year, Lawler said.

    Ford was to present the new structure, announced last March, to analysts and investors on Thursday. Other business units include corporate, Ford Credit and Ford Next, a new business incubator. Shares of Ford slipped 0.5% Thursday.

    Lawler said the company is changing the way it does business, not just doing an accounting exercise.

    “After 120 years, we’ve essentially re-founded Ford,” he said. “We’re embracing technology and competitive disruption in our industry, fundamentally changing how we’re thinking, how we’re making decisions, and how we’re running the company.”

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  • IFC to invest ₹600 crore in Mahindra unit at valuation of up to ₹6,020 crore

    IFC to invest ₹600 crore in Mahindra unit at valuation of up to ₹6,020 crore

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    Mahindra & Mahindra, on Wednesday, said World Bank Group arm, IFC, will invest ₹600 crore in a new unit of the company, which is being incorporated to scale up the last-mile electric mobility business.

    IFC is investing ₹600 crore in a new last-mile mobility (LMM) company — a wholly-owned subsidiary of Mahindra & Mahindra — that will be newly incorporated (NewCo), the Mumbai-based automajor said in a statement.

    IFC’s first investment in an EV manufacturer in the country and the first in electric three-wheelers globally will be in the form of compulsory convertible instruments at a valuation of up to ₹6,020 crore.

    The ₹600 crore investment will result in an ownership of between 9.97 per cent to 13.64 per cent for IFC in NewCo.

    Also read: Mahindra Electric Mobility merges with M&M

    The NewCo will house the last-mile mobility division, including three-wheelers (Alfa, Treo, Zor) and four-wheeler SCV (Jeeto), Mahindra & Mahindra said.

    IFC’s financing will help scale up electric mobility in last-mile connectivity while enabling the development and manufacturing of new generation products in this space, it added.

    “Decarbonising the transport sector is crucial to achieving the climate goals that India has set for herself. IFC, with its focus on sustainability and boosting prosperity, is an ideal partner for us,” Mahindra & Mahindra MD and CEO Anish Shah said.

    IFC’s Regional Director for South Asia Hector Gomez Ang said India is the largest three-wheeler market globally, and this investment marks a significant step towards scaled domestic production of electric vehicles catering to this segment as well as small commercial vehicles.

    Also read: If India does well in attracting investment, this could be India’s time: World Bank Chief Economist

    “By supporting a leading market player, IFC hopes to encourage other large automotive manufacturers to follow suit, driving EV adoption across India and helping the government deliver on its climate targets,” he added.

    Decarbonising the transport sector, which contributes about 13 per cent of the country’s greenhouse gas (GHG) emissions, can help substantially reduce the impacts related to GHG emissions and other air pollutants.

    This is vital given that India has committed to reducing its emissions profile by 45 per cent by 2030.

    Mahindra & Mahindra Executive Director and CEO (Auto & Farm Sector) Rajesh Jejurikar noted that the last-mile mobility business presents a tremendous opportunity, both in terms of electrification and growth.

    “Being the market leaders in this segment, we have an opportunity to drive higher EV penetration in this segment and provide a more sustainable as well as profitable option to microentrepreneurs,” he added.

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  • Cruise wants to test self-driving cars all over California

    Cruise wants to test self-driving cars all over California

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    General Motors’ Cruise autonomous vehicle unit has asked California for permission to test the cars across the entire state

    DETROIT — General Motors’ Cruise autonomous vehicle unit on Monday asked California for permission to test the cars across the entire state.

    The GM subsidiary already is running an autonomous ride-hailing service in its hometown of San Francisco after testing for more than two years. It doesn’t have specific plans yet to expand testing in California, but applying with the Department of Motor Vehicles is a step toward entering cities such as Los Angeles.

    “While this application doesn’t represent any immediate change to our testing or operations, we hope to continue working with the California DMV to safely and responsibly test our services in other cities in the future,” Cruise spokesman Drew Pusateri said in a statement.

    If granted, the test permit won’t allow Cruise to carry non-employee passengers outside of San Francisco. Testing could be done up to 55 miles per hour (88 kilometers per hour) statewide, Cruise said.

    Cruise also has been testing autonomous Chevrolet Bolt electric vehicles, and carrying employees, friends and family members in central Austin, Texas, and parts of Phoenix.

    The GM subsidiary is under investigation by U.S. safety regulators for reports that its autonomous robotaxis can unexpectedly come to a halt, potentially stranding passengers. Cruise says it’s cooperating in the probe and has driven 1 million autonomous miles (1.6 million autonomous kilometers) without causing any life-threatening injuries or deaths.

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  • Cruise wants to test self-driving vehicles across California

    Cruise wants to test self-driving vehicles across California

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    General Motors’ Cruise autonomous vehicle unit has asked California for permission to test the cars across the entire state

    DETROIT — General Motors’ Cruise autonomous vehicle unit on Monday asked California for permission to test the cars across the entire state.

    The GM subsidiary already is running an autonomous ride-hailing service in its hometown of San Francisco after testing for more than two years. It doesn’t have specific plans yet to expand testing in California, but applying with the Department of Motor Vehicles is a step toward entering cities such as Los Angeles.

    “While this application doesn’t represent any immediate change to our testing or operations, we hope to continue working with the California DMV to safely and responsibly test our services in other cities in the future,” Cruise spokesman Drew Pusateri said in a statement.

    If granted, the test permit won’t allow Cruise to carry non-employee passengers outside of San Francisco. Testing could be done up to 55 miles per hour (88 kilometers per hour) statewide, Cruise said.

    Cruise also has been testing autonomous Chevrolet Bolt electric vehicles, and carrying employees, friends and family members in central Austin, Texas, and parts of Phoenix.

    The GM subsidiary is under investigation by U.S. safety regulators for reports that its autonomous robotaxis can unexpectedly come to a halt, potentially stranding passengers. Cruise says it’s cooperating in the probe and has driven nearly 700,000 autonomous miles (1.1 million autonomous kilometers) without causing any life-threatening injuries or deaths.

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  • California to seek beds for mental health, drug treatment

    California to seek beds for mental health, drug treatment

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    SAN DIEGO — California voters would decide whether to fund a major expansion of housing and treatment for residents suffering from mental illness and addiction, under the latest proposal by Gov. Gavin Newsom to address the state’s homelessness crisis.

    Newsom announced Sunday that he will ask allies in the Democratic-controlled Legislature for a measure on the 2024 ballot to authorize funding to build residential facilities where up to 12,000 people a year could live and be treated. The plan is the latest by the governor who took office in 2019 vowing to own the issue of homelessness in a state where an estimated 171,000 were unhoused last year.

    The governor called the plan the next step in how California expands services for unhoused people, especially those with psychological and substance use disorders.

    “We have to address and come to grips with the reality of mental health in this state and our nation. The question is, what can we do more and do better?” Newsom said at a news conference.

    California, home to nearly 40 million people, has nearly one-third of the nation’s homeless population, and their numbers are growing much faster than in other states, according to an analysis of federal data by the Public Policy Institute of California. Tent encampments have popped up on sidewalks and under freeway overpasses, and people in clear mental health crisis are a common sight on city streets.

    The initiative would be partially funded by general obligation bonds that would raise between $3 billion and $5 billion to go toward construction of “campus-style” facilities along with smaller homes and long-term residential settings, Newsom said.

    In addition, it would overhaul California’s Mental Health Services Act, an initiative approved by voters in 2004 that charges a 1% tax on incomes greater than $1 million to fund mental health services. Some lawmakers complained that money from the initiative bypassed those who needed it the most, and Newsom’s office said the new version would improve oversight for counties.

    “Modernizing it will lead to $1 billion every year for housing, treating substance abuse disorders, and more,” said a statement from the governor’s office.

    The California State Association of Counties, representing all 58 counties in California, said in a statement Sunday that it would work with the governor and lawmakers to establish “clear responsibilities, accountability and funding for all levels of government” to address the homelessness problem.

    State Sen. Susan Talamantes Eggman, D-Stockton, will introduce the measure, which would also earmark money to house more than 10,000 homeless veterans across the state, according to the statement.

    Newsom unveiled details of the plan during a stop Sunday afternoon in San Diego. The governor is in the midst of a five-day statewide tour that he’s using to highlight his major policy goals. The tour replaced a traditional State of the State address.

    On Thursday, Newsom announced a plan to spend about $30 million to build 1,200 small homes across the state to help house people living on the streets. The homes can be assembled quickly and cost a fraction of what it takes to build permanent housing. Federal courts have ruled cities can’t clear homeless encampments if there are no shelter beds available.

    Newsom will travel Monday to Imperial County to discuss how California is poised to become a global leader in electric vehicles and clean energy, his office said.

    The governor’s swing through California comes amid challenging times for the state. After several flush years in Sacramento, California has an estimated $22.5 billion deficit, with state revenues falling as the stock market slows.

    Recent polling shows half of California voters believe the heavily Democratic state is headed in the wrong direction, including a majority of independents. And after years of growth, the state’s population has been dropping as people look elsewhere for more affordable homes and a better quality of life.

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  • Ski resorts are embracing a new role: climate activist

    Ski resorts are embracing a new role: climate activist

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    ASPEN, Colorado — Snow falls thick as skiers shed their gear and duck into the Sundeck Restaurant, one of the first certified energy efficient buildings in the U.S. – this one at 11,200 feet (3,413 meters) above sea level atop Aspen Mountain in Colorado. Skiers in brightly colored helmets jockey for a spot at the bar, their bodies warmed by thick, insulated walls and highly efficient condensing boilers.

    Overhead, WeatherNation plays on the television, looping footage of last year’s mega storms and flashing a headline: “2022 billion dollar disasters.”

    Aspen Skiing Company’s vice-president of sustainability, who sits nearby eating a slice of pizza, says it’s not enough for resorts to just change their on-site operations to become “green.”

    “If you’re a ski resort and you care about climate change or you profess to care about climate change, it absolutely has to go beyond reducing your carbon footprint,” said Auden Schendler. “If your CEO hasn’t spoken out on climate publicly or in an op-ed, you’re not a green company.”

    As global warming threatens to put much of the ski industry out of business over the next several decades, resorts are beginning to embrace a role as climate activists in the halls of government. The industry contributes just a tiny fraction of overall greenhouse gas emissions, which cause climate change, but arguably has outsized influence on popular culture and in the business world. While many resorts are focused on reducing their own emissions, others are going much further, leveraging their influence to shift public opinion and advocate for climate legislation.

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    Arapahoe Basin is a ski area leading such efforts in the United States. Positioned high up on the craggy, wind-whipped continental divide in central Colorado, the mountain is relatively well-positioned to endure a warmer, shorter winter season. High altitude, which keeps temperatures cooler and lengthens the time snow stays on the ground, is its golden ticket. But it isn’t immune to extreme weather: it has experienced close calls with wildfires and subsequent mudslides, which washed out a parking lot adjacent to its slopes in 2021.

    About a decade ago, the ski area transitioned from spending thousands of dollars annually to cancel out some carbon emissions by paying for carbon credits to instead funding a staff position focused on reducing on-site emissions.

    “If we are gonna ask our guests to be better, we’re gonna ask our guests to talk to their leadership, we’re gonna go talk to our leadership directly, we definitely feel like we need to be doing it too,” said Sustainability Manager Mike Nathan.

    One way they’re working to nudge a transition to renewable energies is with newly installed electric vehicle chargers. After a day on the slopes, Denver resident Kurt Zanca returned to his Tesla, which had been charging for free at one of the five dual-port stations situated in the front row of the mountain’s parking lot.

    Zanca said he thinks charging infrastructure at ski areas can help encourage hesitant shoppers to purchase an EV. “If you can drive up here, charge, go back, no problem, it makes it a lot easier,” Zanca said.

    In the northern French Alps, luxury chalet operator Alikats also sees incentives for customers as a catalyst for change. They offer discounts to guests who travel by train, opt out of eating meat or don’t use a hot tub during their stay.

    Al Judge, who owns and operates the business with his wife Kat, considers himself a realist. He’s not trying to save snowfall—massive reductions in greenhouse gases emissions worldwide are needed to slow global warming—but rather set a standard for how businesses should operate in a way that respects natural resources and protects biodiversity.

    “The more that becomes a cultural imperative, the quicker change will happen, and I think business has a very important role to play in that process,” Judge said.

    Arapahoe Basin, affectionately known by locals as “A-bay,” is working toward net-zero emissions by 2025, partially by relying on credits through the Colorado Carbon Fund to offset some natural gas and diesel they’ll still be burning at that time. They also aim to divert 75% of their waste by then — they’re currently at 50% through various recycling and composting programs. Nathan says these efforts give them clout when trying to flex their influence off the mountain.

    They’ve pressured their utility, Xcel Energy, to expedite the transition to renewable power. Earlier this year, Nathan and other industry leaders met with the governor’s staff to encourage the rapid transition to manufacturing EV heavy machinery statewide. And, after watching a federal bill that eventually became the Inflation Reduction Act stall, Nathan and Chief Operating Officer Alan Henceroth co-authored an op-ed and sent letters to Colorado’s congressional delegation.

    “Kicking the can for another legislative session was going to have direct and negative impacts on businesses like us,” Nathan said.

    Similarly active in policy work, Judge runs an organization that’s studying the lack of public transit in the region and expects to soon lobby French officials for a solution. A train route through the northern Alps would provide a more direct public transit option that could reduce the number of flights coming in, Judge said.

    Customer travel remains a primary source of pollution for ski areas, with air travel, in particular private jets, a major culprit. For example, over 80 percent of flights in and out of Aspen-Pitkin County Airport are private jets, airport officials said. Ideally, airports could tax private jets and invest that money in renewable energy projects, said Schendler. But the Federal Aviation Administration remains a roadblock. Federal law prohibits airports from spending tax revenue offsite. This restricts any renewable projects to airport grounds, and any revenue made from them must be used exclusively at the facility.

    While Aspen has yet to win over the FAA, it found a way to sway its local utility, Holy Cross, which supplies power to more than a dozen towns in addition to Vail Mountain Resort along the Interstate-70 corridor. About 15 years ago, Schendler began phoning environmentally minded locals and encouraged them to run for board positions for the utility, which produced about 10% renewable electricity at the time. Today, the board is stacked with pro-renewable members, largely the fruit of lobbying by Aspen and other activists. The utility is split about 50/50 between renewables and fossil fuels, and is committed to 100% renewables by 2030.

    Another way to speed the transition to renewables is through power purchase agreements. This is when a business or utility commits to buying a set amount of energy from yet-to-be-built projects, guaranteeing some of the funding to be built.

    Vail Resorts, which owns 37 ski areas in three countries, has done this with a wind farm in Nebraska, and is one of five partners for a new solar array in Salt Lake City. Power purchase agreements have helped Vail reach 100% renewable electricity for all its resort and ski areas in North America, and 96% internationally.

    Snowshoe Mountain is a ski resort in West Virginia still largely powered by fossil fuels. As the climate bill stalled last summer in Congress, CEO Patti Duncan felt the need to get involved. She doesn’t consider herself an activist but wanted to speak up when she watched one of her state’s senators, Joe Manchin, defend the state’s coal industry and hold up the legislation. Duncan wondered, what about the thriving outdoor industry, which is negatively impacted by the burning of fossil fuels?

    With encouragement by owner Alterra Mountain Company and climate activist group Protect Our Winters, she wrote a letter to Manchin. Days later, he came out in support of the bill. Duncan said she doesn’t know whether her letter played a role in the senator’s decision but is glad she spoke up.

    “It’s my responsibility to do something about it for our resort and our community and our state,” Duncan said.

    On the other side of the country, Aspen had installed a kiosk at its Limelight Hotel lobby at the base of Snowmass Mountain. The kiosk allowed guests to send a pre-paid card to the senator, encouraging him to support the bill.

    The climate bill passed and was signed into law. As a result, record federal funding is now available for households and businesses to decarbonize buildings and transportation. But Mario Molina, executive director of Protect Our Winters, says the work is just getting started.

    The next steps are “anything and everything that resorts can engage in to leverage not only their political power but also their power as large consumers to help implement and realize the promise of the Inflation Reduction Act,” Molina said. He cautioned of local opposition to renewable energy projects, and said resorts could make a big impact advocating for the permitting necessary for those projects, in addition to taking advantage of every available credit on their own.

    Many skiers applaud such efforts and want their favorite ski areas to have a role in fighting climate change — with an important caveat.

    “As long as they’re being sincere and not just sort of doing it for show and not actually making much of a change,” said Archie Bolgar, a British student on vacation at Aspen in January with friends from Boston’s Bentley University.

    While there are many environmental issues corporations could embrace, Schendler says the focus must be on reducing emissions to make sure global temperatures don’t rise more than 2 degrees Celsius (2.7 degrees Fahrenheit) compared to preindustrial times. The rise is currently about 1.1 degrees Celsius (2 degrees Fahrenheit), and climate scientists warn that as it increases so too will extreme weather events.

    “If we can stabilize warming at sub 2 degrees Celsius, we’re going to prevent billions of people from suffering. That’s profound,” he said.

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    The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental policy. The AP is solely responsible for all content. For all of AP’s environmental coverage, visit https://apnews.com/hub/climate-and-environment

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  • Oregon halts electric vehicle rebates due to demand, money

    Oregon halts electric vehicle rebates due to demand, money

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    Oregon will temporarily suspend rebates for buying or leasing an electric vehicle for a year starting in May

    SALEM, Ore. — Oregon will temporarily suspend rebates for buying or leasing an electric vehicle for a year starting in May because too many people are applying and the program is running out of money, The Oregonian/OregonLive reported Thursday.

    A growing number of Oregonians are buying or leasing electric vehicles, with over 60,600 registered in the state.

    The Oregon Department of Environmental Quality announced Wednesday the suspension of the Clean Vehicle Rebate Program that has disbursed more than $71 million over five years to help people buy or lease roughly 25,000 of those vehicles. A fifth of the rebates went to low- and moderate-income households, state data shows.

    Since the end of 2018, the state has offered two cash rebates for Oregon drivers who buy or lease electric vehicles or plug-in hybrids under $50,000. The standard rebate of up to $2,500 is available regardless of income and can be received at participating dealers. The “charge ahead” rebate of $5,000 is aimed at low- or moderate-income households and must be accessed via a mail-in application. The two rebates can be combined for up to $7,500 cash back.

    “Even though we’re announcing a temporary suspension, it really shows the program is a victim of our own success,” Rachel Sakata, senior air quality planner with the environmental quality department. “We’re one of the top states in the nation in terms of the percentage of EV sales.”

    Oregon’s Department of Transportation estimates that people will be driving 1.5 million electric vehicles in the state by 2035. About 3.2 million passenger vehicles are registered in Oregon today.

    Since the end of 2018, the state has offered two cash rebates for Oregon drivers who buy or lease electric vehicles or plug-in hybrids under $50,000. The standard rebate of up to $2,500 is available regardless of income and can be received at participating dealers. The “charge ahead” rebate of $5,000 is aimed at low- or moderate-income households and must be accessed via a mail-in application. The two rebates can be combined for up to $7,500 cash back.

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  • Toxic Germanity and the battle for ‘das Auto’

    Toxic Germanity and the battle for ‘das Auto’

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    BERLIN — Europe’s worst-kept secret is that the Germans ultimately decide everything.

    “I’ll never forget how all the other member states held back in anticipation, waiting to see what the Germans would do,” a senior U.K. official, recalling his time in Brussels, recently told a private dinner of MPs and other German officials in Berlin.

    The recollection was meant as a compliment, one the official hoped would ingratiate him with the Germans around the table.

    Sad thing is it worked.

    The second worst-kept secret in Brussels is that for all the “peace project” kumbaya, the Germans actually enjoy dominating the place. That said, even stalwart veterans of the EU bubble were hard-pressed in recent days to cite a more blatant example of toxic Germanity than Berlin’s last-minute intervention to save the internal combustion engine.

    To recap: Last week, EU countries were expected to rubber-stamp a package of measures aimed at ridding Europe’s roads of fuel-burning autos. Under the plan, the EU would prohibit new registrations of cars powered by internal combustion engines beginning in 2035. The sweeping deal, the culmination of years of painstaking negotiations in Brussels and European capitals, is a pillar of the EU’s ambitious goal to become carbon neutral by 2050.

    Berlin’s 11th-hour intervention on a deal everyone believed was done and dusted not only left the EU’s environmental policy in limbo, it also laid bare the bloc’s power vertical in all its dubious Teutonic glory. The message: Germany is no longer even trying to hide its power.

    Enter France.

    “For the French, the situation also represents an opportunity and they are never ones to waste a good crisis,” an EU diplomat said. “The more they can contribute to the idea that Germany goes it alone, the more it strengthens the view that the Germans are an unreliable partner in Europe.”

    Germany’s unprecedented move has given rise to fears that other countries will try to follow its example and hold EU reforms hostage by threatening a last-minute veto to win concessions, in effect rewriting the rules of engagement.

    Germans may not be known for their finesse, but even so, Berlin’s bare-knuckle tactics to save the engine have not just shocked Brussels veterans, it’s angered them.  

    That’s why the real significance of the standoff has less to do with CO2 emissions than how Brussels works. One big concern among EU insiders is that the coalition Germany has assembled to save the car, which includes the likes of Poland, Austria, the Czech Republic and Bulgaria, will go rogue as a bloc on other fronts, with or without German support.

    Berlin’s views on “the future of mobility” were so clear that Mercedes, VW and BMW pledged to shift to all-electric by 2035 | Photo by Sean Gallup/Getty Images

    It’s easy to mock the circuitous nature of EU decision-making, the push and pull between the European Commission, Parliament and Council, communicated in the opaque dialect of Brussels’ earnest eurocrats.

    Boring as it may be, the alchemy produces bona fide results that legitimize and sustain the EU.  

    That Germany is willing to tinker with this delicate balance betrays either ignorance in the current regime of how the EU works, ambivalence, or both.

    One could argue with justification that Germany was never going to kill the golden goose. Invented and perfected in Germany over more than a century by the likes of Mercedes, BMW and Audi, the internal combustion engine has been the wellspring of German pride and prosperity for generations.

    The image of a piston-fired Porsche 911 zooming down the autobahn is as core to German identity as sex is to the French.

    Take that away, what’s left (aside from beer and bratwurst)?

    Indeed, considering that the country’s automakers haven’t proved particularly adept at manufacturing electric cars (or more specifically the batteries at the heart of the vehicles), there was a strong case for Germany to develop low-emission synthetic fuels that would keep the internal combustion engine alive.  

    Berlin had at least a decade to do so.

    Thing is, it didn’t, choosing instead to pour billions into subsidizing the purchase of electric vehicles and the infrastructure to recharge them (full disclosure: the author is a beneficiary of such a subsidy).  

    What’s more, Germany also encouraged other European countries to follow suit. In fact, Berlin’s views on “the future of mobility” were so clear that Mercedes, VW and BMW pledged to shift to all-electric by 2035. The cluster of countries that have served as the workbench for those companies, from Slovakia to Hungary and Austria, all agreed to go along.

    That’s why the German insistence this month that the EU carve out an exception to the engine ban for cars powered by synthetic, so-called e-fuels has caught the rest of Europe flat-footed.

    Why now? In a word, politics.

    Germans may not be known for their finesse, but even so, Berlin’s bare-knuckle tactics to save the engine have not just shocked Brussels veterans, it’s angered them | John Thys/AFP

    Chancellor Olaf Scholz’s Social Democrats have dropped below 20 percent in a number of recent polls, putting them more than 10 percentage points behind the first-place Christian Democrats.

    Scholz’s smallest coalition partner, the business-oriented Free Democrats (FDP), are in even worse shape. The party fared miserably in a string of recent regional elections and in national polls, it is teetering perilously close to the 5 percent threshold parties need to surpass for entry into parliament.

    Party leader Christian Lindner, who used to drive souped-up Porsches around the storied Nürburgring race track, has vowed to save the engine from the clutches of the Green lobby.

    Scholz, keenly aware that his party’s base also remains attached to “das Auto,” has been happy to let him try and has so far not stepped in to intervene.

    About 1 million Germans work in the auto industry and many of those jobs — especially at suppliers — would be lost if the engine is killed for the simple reason that electric cars have far fewer (and different) parts than traditional automobiles.

    The real mystery is why the Greens, the other party in Germany’s governing triumvirate, have not done more to resolve the crisis. Not only has the environmental party championed the engine ban for years, but it is also the most pro-European party in the government and would normally be at pains to keep Berlin from even appearing to undermine Brussels.    

    Yet Green Vice Chancellor Robert Habeck has largely been silent on the issue. Far from the fray in Europe, he was last spotted in the Amazon having his face painted by an indigenous girl during a swing through the region.

    In a bid to defuse the standoff ahead of next week’s EU leaders’ summit, the German government sent a letter to the Commission on Wednesday, spelling out what it wants in return for lifting its blockade. Its chief demand — a broad exception for e-fuels — was already rejected by the Parliament and other institutions during the original negotiations over the package.

    Reversing that would require the deal to be reopened.

    The French are sure to cry foul.

    And then Germany will push ahead anyway.

    Joshua Posaner contributed reporting.

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  • Why lithium-ion batteries found in many products keep exploding | CNN Business

    Why lithium-ion batteries found in many products keep exploding | CNN Business

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    CNN
     — 

    Lithium-ion batteries, found in many popular consumer products, are under scrutiny again following a massive fire this week in New York City thought to be caused by the battery that powered an electric scooter.

    At least seven people have been injured in a five-alarm fire in the Bronx which required the attention of 200 firefighters. Officials believe the incident stemmed from a lithium-ion battery of a scooter found on the roof of an apartment building. In 2022, the the New York City Fire Department responded to more than 200 e-scooter and e-bike fires, which resulted in six fatalities.

    “In all of these fires, these lithium-ion fires, it is not a slow burn; there’s not a small amount of fire, it literally explodes,” FDNY Commissioner Laura Kavanagh told reporters. “It’s a tremendous volume of fire as soon as it happens, and it’s very difficult to extinguish and so it’s particularly dangerous.”

    A residential fire earlier this week in Carlsbad, California, was suspected to be caused by an e-scooter lithium battery. On Tuesday, an alarming video surfaced of a Canadian homeowner running downstairs to find his electric bike battery exploding into flames. A fire at a multi-family home in Massachusetts last month is also under investigation for similar issues.

    These incidents are becoming more common for a number of reasons. For starters, lithium-ion batteries are now in numerous consumer tech products, powering laptops, cameras, smartphones and more. They allow companies to squeeze hours of battery life into increasingly slim devices. But a combination of manufacturer issues, misuse and aging batteries can heighten the risk from the batteries, which use flammable materials.

    “Lithium batteries are generally safe and unlikely to fail, but only so long as there are no defects and the batteries are not damaged or mistreated,” said Steve Kerber, vice president and executive director of Underwriters Laboratory’s (UL) Fire Safety Research Institute (FSRI). “The more batteries that surround us the more incidents we will see.”

    In 2016, Samsung issued a global recall of the Galaxy Note 7 in 2016, citing “battery cell issues” that caused the device to catch fire and at times explode. HP and Sony later recalled lithium computer batteries for fire hazards, and about 500,000 hoverboards were recalled due to a risk of “catching fire and/or exploding,” according to the U.S. Consumer Product Safety Commission.

    In 2020, the Federal Aviation Administration banned uninstalled lithium-ion metal batteries from being checked in luggage and said they must remain with a passenger in their carry-on baggage, if approved by the airline and between 101-160 watt hours. “Smoke and fire incidents involving lithium batteries can be mitigated by the cabin crew and passengers inside the aircraft cabin,” the FAA said.

    Despite the concerns, lithium-ion batteries continue to be prevalent in many of today’s most popular gadgets. Some tech companies point to their abilities to charge faster, last longer and pack more power into a lighter package.

    But not all lithium batteries are the same.

    Dylan Khoo, an analyst at tech intelligence firm ABI Research, said electric bikes and scooters use batteries which can be around 50 times larger than the one in a smartphone. “So when a fire does happen, it’s much more dangerous,” Khoo said.

    All lithium-ion batteries use flammable materials, and incidents such as the one in the Bronx are likely the result of “thermal runaway,” a chain reaction which can lead to a fire or catastrophic explosion, according to Khoo.

    “This process can be triggered by a battery overheating, being punctured, or an electrical fault like a short circuit,” Khoo said. “In cases where fires occur spontaneously while charging, it is likely due to manufacturing defects.”

    According to Kerber, the number of lithium-ion battery-based fires is growing with enormous frequency both in the United States and internationally, particularly when it comes to e-bikes and e-scooters, due to an uptick in purchases of these products during the pandemic.

    “After Covid started, scooter use went dramatically up, especially in places like New York City, for deliveries,” Kerber said. “People started to get overcharged for them and turned to manufacturers which happened to have lower quality control with the battery systems. The quality manufacturers are not having issues.”

    “It will continue to happen until there are regulations around the quality of these devices,” Kerber said.

    Kerber recommends people buy UL-certified electric bikes and scooters from reputable retailers; online marketplaces often make it hard for customers to tell where products are actually coming from. If a fire occurs, he advised people to evacuate and call 911 immediately rather than trying to put it out themselves.

    “The fire spreads incredibly fast and a fire extinguisher is not effective,” he said.

    Beyond scooters and e-bikes, experts warn anyone with a lithium-ion battery should follow proper charging and battery usage guidelines. According to researchers at the University of Michigan, any device with this kind of battery should be charged and stored in a cool, dry place, and not left charging for too long or while you’re asleep – a recommendation likely at odds with how many consumers handle their devices.

    “Elevated temperatures can accelerate degradation of almost every battery component and can lead to significant safety risks, including fire or explosion,” the researchers said. “If a laptop or cellphone is noticeably hot while it’s charging, unplug it. Minimize exposure to low temperatures, especially when charging.”

    Batteries should also be routinely inspected to make sure there is no cracking, bulging or leaking, and people should always use the charger that came with the device or use one from a reputable supplier. When charging an electric scooter or bike, Kerber said it should never block a fire escape or exit route.

    Although some battery chemistries are safer than others, we are still a few years away from adoption of a better, safer lithium-ion alternative, according to Sridhar Srinivasan, a senior director at market research firm Gartner.

    For example, LFP (lithium iron phosphate) batteries don’t overheat as much as other types of lithium-ion batteries. Future battery technologies in development, such as sodium-ion or solid state batteries, are also expected to address some of the safety issues of lithium ion.

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  • E-bike lithium battery investigated as cause of 5-alarm Bronx blaze, fire department says | CNN

    E-bike lithium battery investigated as cause of 5-alarm Bronx blaze, fire department says | CNN

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    CNN
     — 

    At least seven people have been injured in a five-alarm fire in the Bronx neighborhood of New York City thought to have been caused by a lithium-ion battery, according to fire officials.

    A civilian and an emergency services worker were seriously injured, and five firefighters received minor injuries, the New York Fire Department told CNN Sunday.

    Almost 200 firefighters have been fighting the fire, which started in the roof of the rear part of a single-level commercial building on Grand Concourse and 181st Street, according to the New York Police Department.

    FDNY Commissioner Laura Kavanagh told reporters at the scene Sunday the cause of the fire was a lithium-ion battery, which powered a scooter.

    “In all of these fires, these lithium-ion fires, it is not a slow burn there’s not a small amount of fire, it literally explodes,” Kavanagh said. “It’s a tremendous volume of fire as soon as it happens, and it’s very difficult to extinguish and so it’s particularly dangerous.”

    Kavanagh said firefighters arrived at the fire around 10.41 a.m., under four minutes after the first call. All seven of those injured in the blaze are considered stable, she said.

    “We have been able to not have a loss of life today, but there is extraordinary damage. This entire building behind me is completely destroyed,” Kavanagh said. “The roof is caved in, there’s nothing left, and it is all because of this one single bike.”

    The commissioner said more investigation needed into why the bike burst into flames. She said it may have been using an illegal battery.

    The scooter was parked inside the rear part of a grocery store. Officials said it’s not yet known who owns the bike.

    The fire department tweeted video of the fire igniting. The footage appears to be taken from a security camera and shows someone responding to the blaze and shifting the scooter before the flames intensified.

    New York City Mayor Eric Adams told Sunday’s news conference: “Our real push is to inform the public that something as simple and seen as recreational can be extremely dangerous and can take the lives of innocent people. This is a real problem we are having in the city.”

    Adams added, “A simple battery operated scooter like this, people are leaving in their homes, they’re leaving in their place of businesses, they’re leaving in their restaurants, they leave it parked for the most part in places that really they should not be parked in.”

    “The video is chilling, when you see how fast this fire started and spread, it’s just really going to give you a point of pause,” Adams said. He advised the public to only use legal lithium-ion batteries and to not place lithium-ion battery devices inside the home.

    Fire officials said the blaze has been mostly extinguished but “pockets of fire” remain. Firefighters will stay on site through the night to make sure the fire doesn’t escalate.

    On Friday, Kavanagh said there had been more than 400 fires caused by lithium-ion batteries in New York City in the past four years.

    In an opinion piece for a local website, Kavanagh said: “These fires start quickly, grow rapidly, offer little time to escape, consume everything in their path, and are very difficult to extinguish.”

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