Tag: Government

By on July 7, 2020

Volkswagen Group appears to have completed the terms laid out by the U.S. Department of Justice after it decided the automaker required some oversight in the wake of the 2015 emissions fiasco (colloquially known as Dieselgate). VW was found guilty of equipping certain models with emissions-cheating software that would allow the car to run cleaner under testing conditions (passing regulations) and dirtier, with better performance, the rest of the time.

The con was brilliant and allowed VW to fool regulators for years until it all blew up in its face. Getting caught in the United States kicked off a chain reaction that cost the automaker a fortune globally. In May, VW estimated it had spent €31.3 billion ($34.40 billion USD) in fines and settlements and fines globally — adding that it expects to bleed another €4.1 billion through 2021. But the company was certainly happy to announce on Monday that it had adhered to settlement deal it reached with the Department of Justice and California’s Attorney General.  (Read More…)

By on July 6, 2020

fca

Nations like Germany might treat internal combustion engines like a shirtless man lighting up a Marlboro in a neonatal intensive care unit, but some countries still feel that they have a place in the automotive landscape. Italy even plans to put public dollars behind their purchase.

When economies and industries are suffering, governments can sometimes do the unthinkable.

(Read More…)

By on July 1, 2020

When it comes to activism, it’s best to choose your battles carefully. Fortunately, there aren’t too many causes within the auto industry and most are easy to get behind.

Even though environmental activists sometimes find themselves at odds with reality, their hearts are usually the right place, and they’ve encouraged automakers to try new and interesting things with transportation. Safety advocates can likewise go overboard, but we wouldn’t have seen cars get dramatically safer (or heavier) since the 1970s if they hadn’t.

Our favorite has to be consumer advocacy, however. With the exception of the occasional predatory lawsuit looking to take advantage of a dumb corporate decision, there’s precious little to scoff about. It also tends to overlap with our pet peeves by decrying bad business practices within the industry. Case in point, the Consumer Access to Repair Coalition has recently asked Congress to rethink how vehicular data is shared — noting that automakers shouldn’t need real-time monitoring for repairs and that the technology likely poses an unnecessary security risk.  (Read More…)

By on June 25, 2020

Unifor hopes to sway the Canadian government toward an automotive strategy centered around the adoption and manufacturing of electric vehicles and a totally revised economic system. On Wednesday, the union released its “Road Map for a Fair, Inclusive and Resilient Economic Recovery” while announcing that corporations have failed everyone.

It’s all part the #BuildBackBetter campaign, which sees the coronavirus pandemic that made 2020 a collective — yet strangely isolating — hell for all of us as a unique opportunity to rebuild society under the banner of economic justice. “Unifor’s plan is designed to build a more strategic and self-reliant economy that can both withstand and prevent future crises,” Unifor National President Jerry Dias said in the initial announcement.

“This is an ambitious road map but I think ambition is what our country and its workers need right now.” (Read More…)

By on June 23, 2020

On Monday, Nevada Governor Steve Sisolak announced that his state will embrace California-crafted emissions rules that are at odds with the national rollback finalized by the Trump administration in March.

Officially, Sisolak said the rules would not require residents to abandon their current ride “or choose one that does not work for their lifestyle or business needs.” Nevada has, however, decided to adopt higher mpg standards, as well as the Golden State’s zero-emission vehicle (ZEV) rules that require manufacturers to sell a certain number of electric or plug-in hybrid models each year based on the total number of vehicles sold within the state.

Companies in compliance accrue ZEV credits, which can then be traded or sold to other manufacturers for money. As with the Corporate Average Fuel Economy (CAFE) system, those that cannot hit their targets (or afford to buy up credits) will be fined. Tesla actually used such arrangements to make $594 million off its rivals in 2019, with the prospect of things only getting more lucrative for the all-electric brand.  (Read More…)

By on June 18, 2020

On Wednesday, ride-hailing company Lyft announced every vehicle using its platform will be electric by 2030. Since its fleet is comprised primarily of contractors using private vehicles, one might assume the company is planning to offer some financial assistance upon their next purchase. But being sensible rarely means being correct in the postmodern era.

Rather than encouraging its own drivers to make the switch, Lyft plans to work with NGOs, lawmakers, and pressure its industry rivals to make electrification mainstream. Obviously, this will include financial incentives for organizations willing to make the switch to EVs in exchange for a fat wad of cash. That’s what you’re now supposed to focus on. Ignore that Lyft’s announcement literally offers no personal commitment and passes every scrap of responsibility it pretends to be taking on to the government.

Lyft is trying to play the hero, and thinking about it too hard is going to muck everything up.  (Read More…)

By on June 17, 2020

Italy is on the cusp of approving a 6.3 billion-euro ($7.1 billion) loan for Fiat Chrysler Automobiles (FCA). Suppressed sales stemming from coronavirus lockdowns have encouraged governments around the globe to lend businesses a hand or — more accurately — fists full of money.

Bloomberg claims FCA’s payday will be Europe’s biggest government-backed financing of an automaker since the start of the pandemic, but it’s hardly the only company needing money. General Motors and Ford utilized credit lines to amass billions of dollars for their rainy day funds — and it’s definitely pouring outside. Ford figures it lost roughly $5 billion in operating costs in the three months leading up to June. Meanwhile, Fiat Chrysler estimates it lost $5.5 billion through the first quarter of this year.  (Read More…)

By on June 4, 2020

Image: Porsche AG

Germany isn’t fooling around anymore. Electric cars are going to become the norm, and that’s final.

After pledging last year to boost electric vehicle subsidies by 50 percent over the first half of the decade, Germany has doubled down on its EV efforts in the wake of the coronavirus pandemic. If you’re in the market for a gas-free car, expect the government to fill your pocket with cash. If you’re the buyer (or the maker) of a gas-guzzling SUV, look out. (Read More…)

By on June 1, 2020

Mexico is attempting to accelerate parts production to ensure North American automakers have enough components on hand to stay operational. The response to the pandemic saw manufacturing stalled worldwide as governments assessed whether or not we’d soon be living through a plague of biblical proportions. While fate decreed a repeat of the Black Death would not be necessary, untold damage resulted in numerous business sectors.

The automotive industry hardly went unscathed. Lockdowns stopped sales in many markets for months and plunged supply chains into turmoil as OEMs shut down to ensure staff were helping to “flatten the curve.” With the public’s interest shifting rapidly away from coronavirus mandates toward demonstrations about police brutality and racial justice, or simply devolving into riots because people are pretty angry about how poorly 2020 is playing out, suppliers and automakers are gradually moving back to more normal production schedules.

This has been easier said than done. But it is being done, and that’s the important thing.  (Read More…)

By on May 29, 2020

Ghana has banned the importation of cars older than 10 years in a move designed to attract automotive plants. As a major importer of second-hand vehicles, the West African nation is largely dependent upon cars discarded by other nations. However, the country’s leadership wants it to become an automotive hub for at least a healthy chunk of the continent. This is a relatively new yet persistent dream for the nation, and it includes a bizarre roster of characters we don’t quite know what to make of.  (Read More…)

By on May 28, 2020

Following America’s fueling feud has shown your author that it’s less about finding a reasonable compromise that works for consumers, the automotive industry, and environmental activists, and more about perpetuating ideological wars that now seem to surround every topic filtered through the news media.

Encouraged by industry leaders just days after taking office, President Donald Trump made the fuel economy rollback one of his first initiatives. It wasn’t until March that the softened final draft emerged, however, and it won’t be enough to conclude the almost four-year battle. A collection of 23 states filed suit against the Trump administration’s easing of emissions standards on Wednesday. They argue that the rollback is illegal and based on bunk information.

While we’ve also been suspect of some of the metrics used to make the rollback look more desirable, fueling standards haven’t adhered to reality in some time. The Obama-era standards that would have seen Corporate Average Fuel Economy (CAFE) rise to 54 mpg by 2025 were deemed unsustainable by that administration’s Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA), but were put into play anyway.  (Read More…)

By on May 21, 2020

The European Commission is reportedly preparing an economic stimulus package aimed at helping the EU bounce back from economic hardships caused by the coronavirus lockdown — saving some room for incentivized electric vehicle sales.

As you may have noticed in your home country, stimulus package proposals often involve lawmakers attempting to slip something in to aid their favorite causes. While not every nation in the EU feels similarly on all matters, environmentalism has been a reoccurring theme within the union — and has encouraged it to make aggressive decisions when it comes to promoting vehicles.

For decades, the European Union spent billions in subsidies and tax breaks to make diesel fuel cheaper than gasoline. Diesel engines produced less carbon dioxide and opened the door to biofuels, so the presumption was they were better for air pollution. That turned out not to be true, so the continent then pushed hard into subsidizing EVs, with diesel sales crumbling as a result.

Now seen as the only way to save the world from heavy, gas guzzling crossovers that people actually buy in great numbers, battery electric cars are getting their moment in the sun. And it may get a little brighter. The next EU stimulus package is set to include €20 billion ($22 billion USD) for those deciding to purchase an environmentally friendly passenger car.  (Read More…)

By on May 13, 2020

Image: Tesla

Until January, any Michigan resident hoping to take home a Tesla had to first leave the state. That all changed following an agreement between the state and the automaker, which sued Michigan back in 2016 to protest its protectionist law against direct sales.

Now, the closest thing you’ll find to a true Tesla dealer has appeared outside Detroit. (Read More…)

By on May 13, 2020

Mexico is considering reopening factories after May 18th, now that automakers and the U.S. government have requested it resume production at plants serving the American market. With supply chains needing time to catch up, vehicle assembly will be precarious until parts can be reliably sourced. And Mexico is an essential part of that industrial recovery plan, necessitating some light coordination with the United States.

Despite seeing a spike in new COVID infections, Mexico released a plan to ease restrictions on Wednesday. Making sure U.S. manufacturers have what they need has been incorporated into that strategy, with a few conditions. While industrial employees will soon head back to work, Mexico made no assurances that it will prioritize supplying the rest of North America with automobiles or their components.  (Read More…)

By on May 13, 2020

Tesla CEO Elon Musk made waves this past weekend by declaring his Fremont, California assembly plant would resume production in defiance of the stay-at-home orders imposed by Alameda County, bolstering his claim by threatening to move his HQ out of the state. He also fired off a lawsuit for good measure.

Musk wasn’t too pleased with the county’s decision to extend the closure of non-essential businesses through the end of the month, arguing that the governor’s word (allowing a return of statewide manufacturing) held sway.

Late Tuesday, the county issued what it probably hopes is the final word on the matter. (Read More…)

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