Tag: Regulation

By on December 11, 2019

The European Union has approved a 3.2 billion-euro fund to promote the research and development of battery technology, with cash pouring in from Belgium, Finland, France, Germany, Italy, Poland and Sweden. While Brussels has been on an electrification push ever since Europe fell out of love with diesel, now may not be the best time to double down on EVs.

We recently covered China’s ailing automotive market, noting the poor performance of new energy vehicles (which fell by at least 40 percent vs the previous November). We’ve also covered a survey showing how eager the nation’s consumer base appeared to be to purchase them, with both writer and readership wondering how reliable those figures actually were. Our collective dubiousness appears to have been valid. Despite being the top region for EV sales, new data from Bernstein Research claims about 70 percent of the 1.2 million electric or gasoline-electric hybrid models sold in China over the past year went directly to government or corporate fleets. When the government started removing subsidies, sales plummeted with little private interest to soften the impact.

Europe may be on a vaguely similar path. While worldwide EV sales are up about 13 percent through October, sales in North America are down 2 percent (at 301,000 deliveries), with Europe rising 37 percent (to 395,000). That’s partially due to European cities being closer together (with more charging points between them), though most EU member states also offer various electric vehicle purchasing incentives and tax exemptions. They’ve likewise adopted stricter environmental rules that make EVs more appetizing to own in the future.  (Read More…)

By on December 6, 2019

Replacing the North American Free Trade Agreement (NAFTA) has proven difficult for the Trump administration. Trade negotiations have progressed slowly, with Mexico, Canada, and the United States rarely seeing eye-to-eye on most issues. Some of the biggest problems have dealt with content requirements.

The latest hangup stems from a rule requiring 70 percent of the steel and aluminum found in North American vehicles to come from the same continent in order to ensure a duty-free existence. Mexico isn’t keen on the proposal — as it sources a large amount of metal from Brazil, Japan and Germany. Meanwhile, the United States is attempting to use the inclusion to appease the United Steelworkers union and keep labor-focused jobs in the country.  (Read More…)

By on November 25, 2019

Transportation for London (TfL) announced it has informed Uber that it will not be reissued a license to operate in the UK capitol, citing concerns over customer safety. TfL had previously declined to renew the ride-hailing business’ private hire operator license, which expired on September 30th, saying it was unsatisfied with the number of drivers it found “fit and proper to hold a licence.” Then it changed its mind, offering a two-month extension.

Now it’s claiming that at least 14,000 Uber trips taken within the city included drivers linked, via their app profiles, to cars they were not legally registered to drive. Having done an impromptu survey of his own (done as unscientifically as possible by just asking drivers if they owned the vehicle), your author found the number of “rogue” Uber drivers in New York City to be about one in five.

While easily framed as a gotcha moment, that ratio isn’t really any different from what I’ve experienced with NYC’s sanctioned yellow (or green) cabs. But that doesn’t exactly make it a non-issue either — just more of the same.  (Read More…)

By on November 25, 2019

autonomous hardware

While the National Transportation Safety Board’s (NTSB) job isn’t to establish new regulations, it is obligated to enforce the country’s Federal Motor Vehicle Safety Standards while conducting crash investigations and making recommendations to other agencies on ways to improve vehicular safety.

Lately, that job involves telling the National Highway Traffic Safety Administration (NHTSA), an agency that does write those rules, to step up its game on autonomous vehicles.

Last week, the NTSB held a board meeting in Washington D.C. to determine the probable cause of a fatal collision between a self-driving Uber prototype and a pedestrian in March of 2018. While Uber took plenty of heat, the NHTSA also came under fire for prioritizing the advancement of advanced driving technologies over public safety. (Read More…)

By on November 19, 2019

Just when you thought the gas war couldn’t get any wilder, California has announced it will ban the purchase of any vehicle manufactured by a company that doesn’t explicitly recognize the state’s ability to set its own emission regulations.

Starting in January, California plans to purchase any-and-all government fleet vehicles from only Ford, Honda, BMW, and Volkswagen Group — companies that backed a voluntary agreement to adhere to the state’s emission rules over the summer. The pact is now the subject of a federal antitrust probe.

Any automaker publicly supporting a single national standard (or having recently expressed support for the Trump administration’s fuel rollback proposal) will be deemed ineligible for fleet consideration. “Car makers that have chosen to be on the wrong side of history will be on the losing end of California’s buying power,” California Governor Gavin Newsom said in a statement. (Read More…)

By on November 1, 2019

One of the issues underpinning the gas war has been an inability for either side to compromise. Initially, it was the current administration complaining about California wanting special treatment. But the coastal state was quick to return fire, claiming that the White House never offered a valid compromise.

Eventually California extended an olive branch by suggesting it would postpone existing fuel economy mandates by one year, while attempting to lock automakers in via written commitments. But federal regulators said a singular national standard was needed, suggesting California had overstepped its authority by trying to rope in manufacturers.

However, EPA Administrator Andrew Wheeler came back this fall with claims of a revised plan that could actually be more stringent than originally presumed. While still a rollback, the new draft was said to close several loopholes the industry could use to continue their polluting ways. “In some of the out years, we’re actually more restrictive on CO2 emissions than the Obama proposal was,” Wheeler said.

New reports now suggest the EPA’s words are more than just noise. (Read More…)

By on October 23, 2019

It’s certainly taking this fuel economy rollback proposal we’ve heard so much about a long time to evolve into its final form. Unfortunately, Environmental Protection Agency Administrator Andrew Wheeler has indicated more changes could be needed before a final draft can be released. However, in a bit of a twist, he’s now claiming the proposal will actually be more rigorous than preexisting mandates. Kind of.

“In some of the out years, we’re actually more restrictive on CO2 emissions than the Obama proposal was,” Wheeler told a crowd at the Detroit Economic Club this week.  (Read More…)

By on October 17, 2019

Fiat Chrysler Automobiles is facing a $79 million civil penalty over its inability to adhere to fuel economy requirements in 2017. Considering the automaker was already hit with a $77 million fine for 2016 model year requirements, the announcement is not unexpected. FCA’s domestic lineup is also loaded with large vehicles featuring sizable motors, a status quo it hopes to offset by buying carbon credits from Tesla.

In fact, the company appears to be taking a wait-and-see approach in regard to pursuing greener automobiles. While it continues to maintain its $10 billion commitment through 2022, aimed at delivering more hybrid and electric vehicles, the automaker’s established strategy involves eating whatever penalties it incurs via federal economy requirements or attempting to pay them off in advance.  (Read More…)

By on September 26, 2019

California has gained additional support from two Democratic governors in the gas war. On Tuesday, New Mexico Governor Michelle Lujan Grisham announced her state would adopt new tailpipe greenhouse gas and zero-emission vehicle requirements starting in the 2022 model year. The following day, Minnesota Governor Tim Walz directed his state to do the same.

Both of the plans embrace Californian standards already adopted by 13 other states hoping to aggressively curb vehicle emissions and promote the sale of electric cars. It also expresses support for the state after the Trump administration announced it would take for steps to eliminate California’s ability to self-regulate fleetwide greenhouse gas emissions.

“It’s pretty obvious today amongst all chaos in the national news that we can’t count on Washington to lead, so Minnesota needs to,” said Walz.  (Read More…)

By on September 17, 2019

Dieselgate never dies. Germany’s Federal Motor Transport Authority (Kraftfahrt-Bundesamt) has informed Audi that it will be subjected to additional fines if it fails to meet upcoming deadlines for retrofitting manipulated diesel models with updated software.

Reports from Bild am Sonntag, later confirmed by Reuters, claim the regulatory authority issued three letters to the automaker stipulating that it had until September 26th to replace the software in emissions-cheating V6 and V8 TDI engines (originally certified as EU6 compliant) lest it be fined 25,000 euros (about $27,500) per vehicle. While fines are only applicable to cars still carrying illicit software, the transport ministry estimated some 127,000 Audi vehicles qualified in Europe last year. There were originally around 850,000.  (Read More…)

By on September 13, 2019

It’s not as if we anticipated any other outcome, but the White House is moving forward with a plan to revoke California’s authority to set its own vehicle emission standards. According to Reuters, President Donald Trump met with senior officials in Washington on Thursday to discuss the administration’s proposal to roll back Obama-era standards through 2025 and potentially revoke California’s waiver under the Clean Air Act to set state requirements for vehicles.

Anonymous sources claimed Environmental Protection Agency Administrator Andrew Wheeler, Transportation Secretary Elaine Chao, National Economic Council director Larry Kudlow, Deputy Attorney General Jeffrey Rosen and acting Office and Management and Budget director Russell Vought were in attendance.  (Read More…)

By on September 10, 2019

Environmental Protection Agency Administrator Andrew Wheeler weighed in on the gas war this week, issuing some firm language on the matter during a visit to Chattanooga, Tennessee. His words were softer upon returning to Washington, where he reminded everyone that the EPA has made no formal decisions on the matter and suggested there could still be room for compromise.

Unfortunately, locating that happy middle ground has been a bit of a problem. Despite the fuel economy rollback’s status as a proposal, hard lines have been drawn in the sand between the Trump administration and California’s regulatory bodies. The Golden State’s compromise was to delay the Obama-era targets by one year. California also recruited municipalities, U.S. states, and automotive manufacturers to pledge their support of the plan, resulting in a handful of carmakers finding themselves on the business end of an antitrust probe.

Meanwhile, the Trump administration’s compromise has been nonexistent. Wheeler’s words suggest that might be because everyone is still making up their minds… but not before he gently razzed the West Coast for being shortsighted an singleminded.  (Read More…)

By on September 6, 2019

The Justice Department has opened an antitrust probe into four automakers that formed a pact with California to compromise on tailpipe emissions, effectively circumventing federal regulators, last July.

Over the summer, Ford Motor Co., Honda Motor Co., BMW AG and Volkswagen Group announced a joint agreement with the California Air Resources Board to adhere to fueling standards slightly lower than Obama-era rules but still significantly higher than the Trump administration’s proposal from 2018. The Justice Department is seeking to determine whether or not that qualifies as a violation of federal competition laws. (Read More…)

By on August 30, 2019

The National Highway Traffic Safety Administration has been pretty good about letting companies test autonomous vehicles on public roads. And yet pretty much every automotive manufacturer, ride sharing firm and tech giant still wants laxer rules. To a degree, it’s understandable. Take General Motors, for example. Back in 2017, GM sought exemptions from NHTSA to deploy fully automated vehicles without steering wheels or pedals, but that would have placed the car in clear violation of preexisting safety standards — as they were not in line with the General’s vision of what a self-driving car should be.

GM’s autonomous division recently said the self-driving Cruise AV it had been prepping for the end of this year will likely have to be delayed. While development issues assuredly played a role in stalling the car’s commercial deployment, it could never have launched as initially designed anyway.

Earlier this year, the Federal Motor Carrier Safety Administration (FMCSA) and NHTSA asked for input regarding the testing of automated vehicles to help decide if the “removal of unnecessary regulatory barriers” would be a prudent move. You can probably guess the feedback received from the automotive and tech industries.  (Read More…)

By on August 27, 2019

While you’ve heard the media prophesying a global recession for months now, one that will effectively obliterate the younger generation’s purchasing power for the rest of their lives (or so they say), the United States is actually in relatively good shape vs other markets. The People’s Republic of China already appears to be in a recession, and it’s no state secret that its automotive market is hurting.

Part of that is due to the ongoing Sino-American trade war, but there are other factors at play. We’ve previously covered how China’s overzealous adoption of increasingly rigid efficiency mandates upset auto sales. As it turned out, the nation’s commitment to zero-emission vehicles and swelling emission rules scared off a subset of buyers. Others simply couldn’t rationalize making such a large purchase during a period of economic uncertainty.

This all resulted in China’s automotive market experiencing more than a full year of consistently negative growth — something the PRC would like to see fixed posthaste. On Tuesday, the Chinese State Council announced a tentative plan to fix its struggling economy.  (Read More…)

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