Mobility update, February 5-11, 2024

Parisians vote to hike SUV parking charges in pollution fight

In a decisive move to combat air pollution and climate change, Parisians have supported tripling parking costs for SUVs, aiming to penalise affluent drivers of bulky, polluting cars. With 54.6% in favour, despite a mere 5.7% voter turnout, the referendum sends a strong message against heavy and large vehicles contributing to environmental degradation. Mayor Anne Hidalgo sees this as a stride towards social justice and a healthier city, setting a precedent for other capitals. The higher fees, applicable to heavier vehicles, signal Paris's commitment to reducing emissions and reshaping urban mobility, reinforcing its position as a leader in environmental initiatives.

Bosch signals alarm over decarbonisation efforts as government cuts bite

Bosch has issued a warning that government budget reductions and a surge in populism are endangering European initiatives to shift towards greener technologies. Stefan Hartung , the CEO, highlights the struggle democracies face in maintaining climate-policy objectives amidst austerity and populist criticism. Bosch's financial outcomes have not met expectations, with its profit margin before interest and taxes at@, attributed to the slower adoption of environmentally friendly technologies than anticipated. This issue is compounded by erratic policy execution, such as Germany's unexpected withdrawal of electric vehicle subsidies, resulting in a downturn in electric vehicle sales. Hartung calls for greater predictability and support for accessible electric vehicles and charging infrastructure to ensure the success of decarbonisation initiatives.

EV van start-up Arrival faces administration for two UK divisions

Two UK divisions of Arrival, the electric van start-up once valued at $15bn and backed by Hyundai, have entered administration, putting over 170 jobs in jeopardy. This development signals a significant downturn for the company, which has drastically reduced its workforce and shifted focus away from Europe towards a US-centric vehicle strategy amidst financial struggles. With no revenue and previous warnings of cash shortages, the future of Arrival looks uncertain as EY administrators explore the sale of its business and assets, including electric vehicle platforms and intellectual property.

Panasonic sells automotive systems unit to Apollo, eyeing electric battery market growth

Panasonic , primarily known as a key supplier for Tesla, is diversifying its focus beyond electric car batteries by selling part of its automotive systems business to Apollo Global Management, Inc. . This strategic move, aimed at adapting to the fast-evolving battery industry, involves a unit that produces essential car components like infotainment systems, which might be listed in the future. Accounting for 15% of Panasonic's sales, this unit's sale could significantly bolster Panasonic's capacity to invest in new battery technologies. Amidst a backdrop of declining demand for some of Panasonic's products and a recent profit forecast downgrade, this deal marks a pivotal shift towards capitalizing on the burgeoning electric car battery sector, ensuring Panasonic remains a competitive force in the automotive industry.

Charging ahead or losing power? The bumpy road of America's EV market

In the third quarter of 2023, electric vehicles (EVs) constituted a small fraction of car sales in America, trailing significantly behind Europe and China, with General Motors and other manufacturers facing sluggish sales and inventory gluts. This tepid demand has led carmakers like Ford Motor Company and GM to reconsider and delay their ambitious EV expansion plans, scaling back investments and delaying projects amidst caution from battery-making partners as well. The high cost of ownership for EVs in the U.S., only slightly mitigated by new tax credits, remains a substantial barrier, exacerbated by the vehicles' novelty, evolving technology, and quality concerns. Despite these challenges, American automakers are not abandoning their EV efforts entirely, planning future investment in dedicated EV platforms and hoping to resolve quality issues as the technology matures, alongside making EV tax credits more accessible to buyers.

Peers urge EV incentives revival to power up UK's climate drive

An influential group of peers from the House of Lords environment and climate change committee has urgently recommended that the UK government reintroduce incentives for electric vehicle (EV) purchases to combat the slowing sales growth and align with climate change goals. Criticising the government for prematurely ending consumer grants for EVs, failing to meet chargepoint installation targets, and providing unclear guidance to motorists, the committee stressed that without addressing these barriers, the UK risks failing to achieve mass EV ownership. Despite EVs being crucial for meeting net zero carbon emission targets, their high purchase cost compared to internal combustion engine vehicles, coupled with inadequate charging infrastructure, has led to a decline in market share growth. The committee suggests reintroducing targeted grants, reducing VAT on public charging, and reviewing planning regulations to expedite the deployment of charging points to ensure affordability and accessibility for potential EV buyers.

UK's advertising watchdog bans misleading environmental adverts

The UK's Advertising Standards Authority (ASA) has banned misleading environmental adverts from carmakers BMW and MG, as well as from London’s transport authority, marking significant rulings against "greenwashing." BMW and MG's claims of their electric vehicles being “zero-emission” were challenged by the ASA, which pointed out emissions during manufacturing and recharging, setting a precedent that “zero-emission” claims must specify they only apply while the vehicle is driven. This crackdown on misleading environmental adverts extends beyond carmakers, targeting oil companies and airlines as well. Additionally, the ASA found claims in adverts by the Greater London Authority and Transport for London misleading, particularly a radio advert's unsubstantiated claim about in-car pollution in London, further tightening the scrutiny on environmental claims in advertising.

Toyota revises electric vehicle sales forecast downward

Toyota has revised its sales outlook for fully electric vehicles downwards amidst a surge in demand for its petrol-electric hybrid models, indicating a strategic validation in its focus on hybrid technology over solely electric options. The automotive giant now anticipates selling 120,000 electric vehicles by the end of this fiscal year, a decrease from its already reduced forecast, alongside a slight increase in its hybrid vehicle sales projection to 3,875,000. This shift underscores Toyota's commitment to hybrid technology, which has been bolstered by strong sales, especially in China, and aligns with chairman Akio Toyoda's belief in a diverse automotive future beyond just electric vehicles. Despite this, Toyota remains ambitious about its electric vehicle goals, aiming for significant sales increases by 2030, even as the broader electric vehicle market faces challenges such as high prices and insufficient charging infrastructure.