#petrol

German car makers in trouble with the EC environmental regulator

While governments around the world champion the idea that auto makers are “all aboard” when it comes to climate change mitigating tech, it appears the VW Group (incl Porsche & Audi), BMW and Daimler have been raked over the coals by European Commission (EC) officials for deliberately withholding it.

Why doesn’t the EC understand that advanced pollution cutting technology costs more the tougher the emissions regulations get? That cost gets passed onto consumers.

If auto makers met all the appropriate legislative hurdles at the time, why should they be punished? The law didn’t mandate it. Furthermore consumers put safety and utility at a premium to exhaust fumes.

The EC might complain these auto makers colluded but even if they hadn’t met in secret the outcome would have been exactly the same. Focus on shareholders wouldn’t change. Why can’t we accept it is a 100% reflection of the car makers’ true feelings about the environment. They don’t care! VW even cheated the tests.

What more evidence do we need? Automakers push narratives that they’re big on saving the planet so as to not catch the wrath of the activists. Actions tell the real story.

Perhaps we should question the regulator for not introducing tougher standards earlier rather than beat manufacturers over the head for their inability to provide adequate oversight?

Swedish study on EV CO2 footprint will surprise

The IVL Swedish Environmental Research Institute was commissioned by the Swedish Transport Administration and the Swedish Energy Agency to investigate lithium-ion batteries climate impact from a life cycle perspective. Let’s not forget the left leaning pro-climate change Swedish government promoted the study.

The 2017 report showed that battery manufacturing leads to high emissions. For every kilowatt hour of storage capacity in the battery generated extra emissions of 150 to 200 kilos of carbon dioxide already in the factory. Regular EV batteries with 25–30 kWh of capacity will result in 5 metric tonnes CO2, which is equivalent to 50,000 km driving in a regular, fuel-efficient diesel vehicle.

If we use those IVL metrics on the Tesla Type S 100D battery pack of 100kWh, the car has done 167,000km worth of CO2 before its left the factory. So that would mean 20 metric tons of CO2 per car without taking into account any charging from the grid which is largely fossil fuel derived in most countries.

A 2019 model year BMW 530d diesel emits 138g of C02/km. So it can travel 145,000km just to match a car with a 100kWh battery pack before it leaves the dealership floor.

Does Australia really want 50% sales in EVs if the metrics are this bad?

The irony is that despite the evidence provided by the study, PM Stefan Löfven wrote on a Swedish Government website, “No new petrol and diesel powered cars will be sold after 2030. So we reduce the large climate emissions from the transport sector.

So in order to stay aligned with the Paris Accord, promoted by a U.N. body that has been caught out in numerous climate data manipulation scandals and climb downs from countless hysterical claims, Sweden’s left-leaning government skips over reality.

Where have we heard this before? Martin Kinnunen, climate policy spokesperson for the Swedish Democrats said,

It is a very radical proposal and I think you should be careful about predicting technology development in this way. It is simply unrealistic to have a ban in place already in eleven yearsIt can be difficult for many people who live in some parts of the country to have a car, and it can be very costly for those who must have a car

Only goes to prove that virtue signaling ignores facts. Never mind that the industry can’t adapt that fast. Never mind the environmental footprint on a life cycle basis. Just change the starting point then promote themselves as one of the good guys saving the planet when all that is happened is to set in motion actions that will damage her more than they would have otherwise by allowing the industry to set the technological benchmarks instead.

2040? Watch auto lobbyists water down the EV legislation

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It isn’t a big surprise. The UK is following French plans to ban the sale of petrol/diesel cars from 2040. However let’s get real. Why is it that SUVs remain one of the most popular vehicle classes around? Could it be that the guy who likes to sail needs a V8 Land Cruiser to haul his 7000lb boat that a Tesla 22” rim Tesla can’t manage even half that? Could it be that a mother with 3 kids who often takes her parents on trips to the beach needs a minivan? Have they considered the single bachelor who wants a BMW sports car? Or the DINKs who want a Range Rover because they love to ski in the winter.

What about emergency services vehicles? Have these governments considered the impact of having reliable heat exchangers (from combustion engines) to power life saving equipment in ambulances? From one of my high school mates who works as a paramedic tells me, “We have Webasto heaters in our cars in the colder areas. Running off the diesel they can run 24/7 if needed. If we don’t have them some of our equipment doesn’t work like our tympanic thermometers, the blood glucose reader and then there is the problem of having cold fluids in the car. This is a problem if we are giving these IV because we can make a patient hypothermic if it’s cold. Then there’s just the general environment inside the cab. It needs to be warm in winter.”

What about LCVs? Will light commercial vehicles be exempt? Just watch the auto makers classify their SUVs as LCVs and dodge the rules! The Hummer is a perfect example of this. It was so heavy that it managed to be excluded from the passenger vehicle qualifications on fuel economy.

Let’s not forget the actions of VW (and all of its sub brands) who use the same technology blatantly lied about emissions and found a way to cheat the system. That isn’t to condone their behaviour for corporate malfeasance but certainly shows their true colours on what they feel about climate change. Now they will be forced to sell plenty of brands to pay for the penalties imposed on it.

Take California’s new $3bn plan to support EV sales – effectively a deeply Democrat state fritting away tax dollars to subsidise the wealthy. The poor guy who has to drive a 20-yo petrol pick-up truck because he can’t afford a new one is probably paying taxes to subsidise the guy who pays him to mow his lawn to buy a Tesla.

Have these governments consulted the auto industry? It wouldn’t seem so. Automakers are dead against full EV because it ruins the most fundamental part of their DNA – the drivetrain. When you read all the blurb on the pamphlets what is the one area car makers can milk consumers for? Power and performance. Mercedes can sell you a C180 for a little bit of profit and absolutely gouge out your eyeballs for the high performance C63 and basically vaporize your wallet with the options. Auto makers don’t want to go full EV.

What is it with these governments getting involved in every aspect of our lives? Have they considered the huge hole in the budget to come from a reduction in petrol excise taxes? Fuel duties in the UK are expected to fetch around $35bn in 2017 or c.4% of total tax receipts.

Have they considered that consumers are already clearly showing their belief in ‘climate change abatement’ by the cars they buy? When the subsidies were torn from Tesla in HK, sales went to ZERO while in Denmark Tesla registrations fell 94%. Isn’t that evidence enough of how these vehicles are only tax avoidance devices, not the action of deep seated ecologists?

So before running for more mad green schemes to save the planet perhaps they should look at the evidence and listen to their constituents. Moreover when governments get heavily involved in subsidizing industries it generally results in disaster by creating massive oversupply like we saw in solar and wind industries. Spain perhaps provides the strongest evidence of this. Around 2004 it wanted to get 1GW of solar under its feed in tariff over 4 years. Instead it got 4GW in 1 year meaning its budget exploded 16x and it had $100bn in tax liabilities over the course of the promise. In the end the government reneged. So much for the assurance of government programs.

The German authorities went big for bio-fuels in 2008 forcing gas stands to install E-10 pumps to cut CO2. However as many as 3 million cars at the time weren’t equipped to run on it and as a result consumers abandoned it leaving many gas stands with shortages of the petrol and gluts of E-10 which left the petrol companies liable to huge fines (around $630mn) for not hitting government targets. Claude Termes, a member of European Parliament from the Green Party in Luxembourg said in 2008 that “legally mandated biofuels were a dead end…the sooner It disappears, the better…my preference is zero…policymakers cannot close their eyes in front of the facts. The European Parliament is increasingly skeptical of biofuels.” Even ADAC told German drivers to avoid using E10 when traveling in other parts of continental Europe.

So for all of the grandstanding of governments this push for mandated EVs will not be a plus, much less achievable. I remember as an auto analyst in Europe in 2000 when law makers were saying EVs would be 10% of the market by 2010. It is 2017 and they’re 1%. Once again governments are clueless as ever. They’ve achieved only 10% of their goal in effectively twice the time. Then again what do we expect of governments who do their math on the back of an envelope and never let we, the tax payer, properly evaluate how they got there? Then when targets aren’t reached and costs associated with their incompetence end up a double whammy for taxpayers. Anyway by 2040 most of the current crop of politicians won’t be there in parliament to defend their legacy, or what is left of it.

The reality is that the automakers will skillfully lobby these bureaucrats to water down the laws which will allow hybrids and all other types of loopholes to exist making the “ban” more like a “request”. Appeal to industry wide job losses and technical hurdles (which are immense by the way) and it will be bumped. Even in the US, Corporate Average Fuel Economy laws continually got pushed out, reclassified and adjusted to suit the industry.