#Government

With supply lines being of particular importance these days, truckers are leveraging their role to encourage government to see things their way. Canada’s Freedom Convoy reached Ottawa on Friday to demand officials end pandemic-related restrictions it believes are wreaking havoc on the economy and the protests have yet to stop.

While this all started with U.S. and Canadian truckers urging the government to abandon border restrictions that forced all drivers to be vaccinated and confirmed as COVID free (starting January 15th) or be forced to quarantine for 14 days, activists are now asking Ottawa to abandon all mandates or prepare itself for worsening disruptions to already ailing supply chains. They’ve since been joined by Australian truckers, who have formed the ‘Convoy to Canberra’ for similar reasons. Future demonstrations are also being prepared for the United States.

Following the U.S. Supreme Court’s decision to block proposed OSHA regulations backed by the Biden administration, it was assumed that automakers would quickly begin weighing in on vaccine rules now that there would be no federal obligation. However, they’ve actually been keeping quiet on the matter, with Stellantis being the first manufacturer to walk back previous requirements.

While the automaker had previously been working up to companywide vaccine mandates, it pushed back its vaccine deadline for early January. This week, Stellantis confirmed that it will be abandoning the scheme entirely after suggesting that the existing compliance rates were sufficient. Though something tells me that executives have become aware of the swelling pushback against COVID restrictions and became concerned with the optics.

The White House has made plans to host American business executives — including numerous CEOs tied to the automotive sector — in an effort to gain support for the stalled Build Back Better agenda. The meeting is scheduled to take place today, with President Joe Biden and company hoping to convince them to get behind the (revised) $1.75 trillion spending bill after it passed in the House but never made it through the Senate.

Seats have already been reserved for General Motors CEO Mary Barra, Ford CEO Jim Farley, and Cummins CEO Tom Linebarger. The rest are going to heads of manufacturing and technology companies, with a few noteworthy outliers. For example, the Biden administration has also invited the president of the Teachers Insurance and Annuity Association of America and the CEO of Siemens (a multinational entity that’s not based in the United States). Based on earlier statements from White House press secretary Jen Psaki, the meetings will take place in-person, bucking the Biden administration’s trend of hosting virtual events.

Intel has announced a $20 billion investment to transform a 1,000-acre plot in New Albany, Ohio, into the latest addition to its U.S. chip-manufacturing hub. Construction is scheduled to commence later this year with operations starting in 2025. But everyone’s wondering if it is going to be enough to rectify the pathetic state in which domestic vehicle production currently finds itself.

Despite Stellantis making formal announcements that it will be investing 30 billion euros ($34 billion USD) into its novel electrification strategy, CEO Carlos Tavares has been making it sound as if the automaker’s plan was crafted under duress. He’s been telling European media that the widespread adoption of EVs is primarily being pushed by politicians who are ignoring the environmental risks and logistical shortcomings.

“What is clear is that electrification is a technology chosen by politicians, not the industry,” he said told the press this week.

Mexican and Canadian officials have been dropping hints that they’re not all that enthusiastic about the United States-Mexico-Canada Agreement (USMCA) since before Enrique Peña Nieto, Donald Trump, and Justin Trudeau all sat down to sign it in 2018. But just getting to that point required months of formal negotiations that rarely looked to be all that productive.

Sadly, things don’t seem to have changed now that the USMCA is in full effect. Last week, Mexico requested a dispute settlement panel under the terms of the trade pact to help resolve disagreements about the surprisingly contentious automotive content stipulations that determine whether or not vehicles and parts will be slapped with tariffs. Under the previous North American Free Trade Agreement (NAFTA), 62.5 percent of the vehicle’s components had to be sourced from member nations to be considered tax-exempt. In an effort to spur localized production, USMCA increased that number to 75 and not everyone is thrilled with the updated content requirements with Mexico claiming it’s not even sure how to apply them. Canada now intends to formally sign onto Mexico’s complaint against the U.S. over their divergent interpretation of rules.

General Motors has issued a letter to California Governor Gavin Newsom promising that the automaker is now fully committed to complying with the state’s aggressive emission regulations. This follows an earlier announcement from GM advancing plans to eliminate tailpipe emission from all light-duty vehicles by 2035 via electrification. The company had also increased global spending to develop EVs to $35 billion (USD) through 2025, which is roughly a third more than it had previously been targeting.

Of course, don’t think this has anything to do with altruism or formal commitments to some grand cause. California was simply planning to bar any automakers that hadn’t previously vowed to adhere to its strict regulatory policies from selling to state government fleets. While GM has been in the process of changing its allegiance, the business originally sided with automakers approving of the Trump administration’s regulatory revisions that were at odds with the region.

Toyota Motor Corp. looks to be the next automaker that will have exhausted its allotment of EV tax credits for the U.S. market.

While the quota for $7,500 rebates has already been reached by Tesla and General Motors, Toyota is closing in with 190,000 plug-in sales of its own. The government has limited federally backed incentives to just 200,000 vehicles per manufacturer. Once the Japanese manufacturer reaches that limit, credits go into a cool-down period where it can continue benefiting from the full sum six months after the relevant quarter ends. From there, incentives will be halved for the next two quarters until the company is no longer eligible.

If there’s anything that’ll get my stomach into a twist, it’s the government talking about the merits of reducing people’s ability to own things. Fortunately, the 36-hour flu I just experienced made me nigh-invulnerable and someone had forwarded me the latest on what U.K. Parliamentary Under-Secretary for the Department for Transport Trudy Harrison had to say about personal vehicle ownership. She’s very keen on public transpiration but not so interested in the plebian masses having access to their own, individual modes of transport.

Earlier this month, she told a virtual audience at shared transport charity CoMoUK that the United Kingdom needed to move away from “20th-century thinking centered around private vehicle ownership and towards greater flexibility, with personal choice and low carbon shared transport.”

We’ve got good news for people who want fewer choices in the type of cars they’ll be able to purchase in the future.

The U.S. Environmental Protection Agency (EPA) has finalized strict new vehicle emissions requirements through 2026 that would reverse the current standards set by the agency under former President Donald Trump. The Trump administration rolled back some of the long-term environmental policies implemented under the Obama administration. However, the Biden administration has said its biggest focus will be on addressing climate issues by dissolving those policies restoring the targets established when Barack Obama was still in the White House. The agency released some proposals in August outlining the general path it would be taking. But the details dropped by EPA Administrator Michael Regan on Monday vastly exceed those Obama metrics serving as a benchmark.

General Motors CEO Mary Barra has chimed in on the weeklong open discussion about whether or not it’s a good idea for America to embrace the Biden administration’s EV tax credit plan, which just so happens to be deeply intertwined with the Build Back Better Act’s cavalcade of federal initiatives.

As we’ve already covered the topic more than once, we’ll avoid the recap and simply post the relevant links where Tesla CEO Elon Musk recommended pitching the entire bill into the trash and Transportation Secretary Pete Buttigieg went to bat for the White House by suggesting the updated tax scheme was a necessity for electrification to thrive. Barra opted to go with the latter take, stating that it could help accelerate EV adoption.

On Wednesday, President Joe Biden signed an executive order committing the United States to the acquisition of only zero-emission vehicles by 2035 for the federal vehicle fleet.

This is totally in line with the administration’s stated desire to focus on transitioning the nation toward renewable energy sources while advancing electric vehicle adoption rates. But the event was curiously not celebrated with the applicable fanfare. Biden signed the document without media there to capture the moment and reporters failed to ask about it during a press event on the White House lawn later in the day. Were it not for an official fact sheet issued by the administration later in the day, we may never have known there even was a signing.

U.S. Transportation Secretary Pete Buttigieg has responded to criticisms Elon Musk has made about the Biden administration’s plan for electric vehicle subsidies.

The Tesla CEO believes the Obama-era EV tax credits were more than sufficient, with his own company serving as physical proof, and suggested the entire Build Back Better Act be tossed into the toilet. But Secretary Buttigieg said it was a necessary item if the United States hoped to advance electrification, swiftly transition away from combustion vehicles, and escape the perils of climate change (formerly known as global warming).

Elon Musk has continued bashing the Biden administration’s tax credit legislation designed to spur electric vehicle adoption, this time suggesting that the entire bill be scrapped. Included as part of the Build Back Better Act that’s focused on addressing various social, infrastructure, and climate issues, Musk suggested the entire text simply be done away.

“Honestly, I would just can this whole bill,” he stated at The Wall Street Journal’s CEO Council Summit, appearing remotely from Tesla’s construction site in Austin, Texas.

Despite the semiconductor shortage having encouraged the automotive sector to repeatedly idle factories, word on the ground is that things are becoming more stable. Companies are seeing less production downtime overall and workers are reporting more reliable working conditions across the board. However, several automakers have continued to express concerns (e.g. Volvo), alleging that chip shortages could stretch deep into 2022, while the U.S. government ponders how to advance chip production in-country and become less dependent on Asian suppliers.

Commerce Secretary Gina Raimondo has been touring Michigan, meeting with union members and industry heads, and plans to urge Congress to move on a $52 billion in funding bill aimed at boosting domestic production. We’ve questioned the efficacy of the CHIPS Act before, primarily in relation to how the subsidies would be allocated. But there are new concerns that the plan will mimic the Biden administration’s EV subsidies by spending heaps of taxpayer money and giving union-backed organizations a larger cut.