Ford, BMW, Honda, Volkswagen and Volvo Are on the California Side

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Five automakers have come together to support California’s desire to set its own emissions requirements, used car prices are up but not as much as you might think and the Chinese auto giant believes it will soon be making batteries for Tesla. It’s not clear if Tesla knew about it. All that and more at Morning Shift for Wednesday, June 8, 2022.

First Gear: Coalition for California

Five automakers — BMW, Ford, Honda, Volkswagen and Volvo — backed California and the EPA’s decision to allow the state to set its own emissions regulations, a decision currently being challenged by 17 Republican attorneys general to the EPA. From Automotive News:

“Two years ago, after the EPA relaxed federal greenhouse gas emission standards, Ford and four other automakers signed a settlement agreement with California to comply with GHG emission standards that are more stringent than the then-easing EPA standards,” Steven Croley, Ford’s chief policy officer. , he said in a press call Tuesday. “We believed it to be true then, and we think so today.”

Among the top three, Ford is alone; Stellantis and General Motors don’t intervene in the same way GM has publicly sided with California before.

General Motors, which aspires to have an electric portfolio by 2035, said it had not applied for intervention. The Alliance for Automotive Innovation, which represents the five automakers that intervened in the lawsuit as well as GM and other major US automakers, Innovation said it was not a party to the litigation. Stellantis declined to comment.

The attorney general’s argument is that giving California the autonomy to set its own standards violates the Constitution’s doctrine of equal sovereignty—a doctrine I, for example, don’t tend to hear the GOP make much fuss about when the issue involves abortion or guns, where state rights are treated. as something sacred. But this one is different! Wonder why.

The GOP Attorney General, led by Dave Yost of Ohio, accused the waiver of the Clean Air Act violating the Constitution’s doctrine of equal sovereignty.

In addition to Yost, officials from Alabama, Arkansas, Georgia, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, Oklahoma, South Carolina, Texas, Utah, and West Virginia — as well as the American Fuel and Petrochemical Manufacturers Association and groups other biofuels — join the lawsuit challenging the recovery.

A coalition of 20 other states, the District of Columbia and the cities of Los Angeles and New York, as well as environmental groups, joined the lawsuit last month in support of the EPA’s action.

The flip side to this lawsuit is that automakers don’t want to keep changing their plans for emissions laws that swing wildly from progressive to regressive each government turns. They want to do one thing and stick to it, ideally for the entire planet, because manufacturing is easier and cheaper that way.

2nd Gear: Wholesale Used Car Prices Rise, Only Slightly

The Mannheim Used Vehicle Value Index, which charts the overall trend in used car prices regardless of individual vehicle differences, recorded an increase of 9.7 percent in May compared to the same month in 2021, Automotive News report:

Wholesale prices were 9.7 percent higher in May than in the year-earlier period. The figures are adjusted for mix, mileage, and season. On an unadjusted basis, prices rose 1.1 percent in May from April, with prices up 12 percent year-on-year.

Used vehicle retail sales remained relatively stable in May. Used retail sales fell 1 percent from April, according to Cox Automotive, which made the forecast by leveraging the same set of stores from dealers selected from Dealertrack to represent the US.

Used retail sales fell 7 percent year-on-year, “best year-over-year performance so far” in 2022, according to Cox Automotive.

The prevailing theory is that the tax return may have something to do with it:

Slower issuance of tax returns affects the spring sales season. About 74 percent of the projected 2022 refunds have been issued by May 20 – meaning there is still some refund left for consumers to put into the used retail market through June.

In contrast, almost all tax refunds have been issued in the second half of May 2019.

The silver lining is that we still haven’t seen the massive 40 to 50 percent year-over-year price increase we initially moved to 2021, but then that’s because the market may not be able to sustain it.

Third Gear: Tesla Attacks California Fair Labor Department

Tesla has filed a complaint with the California Administrative Law Office that the state’s Department of Fair Employment and Housing (DFEH) sued it without first conducting the necessary investigation. From Reuters:

Tesla in a 10-page complaint told the California Administrative Law Office (OAL) that the state’s Department of Employment and Fair Housing (DFEH) had adopted an “underground rule” that violated the requirements that must be met before suing an employer.

DFEH in a February lawsuit claimed Tesla’s Fremont, California, factory was a racially segregated workplace where black workers were harassed and discriminated against in terms of job duties, discipline, and pay.

Tuesday’s complaint is an attempt to curb DFEH’s authority to pursue discrimination cases by forcing the agency to take additional steps before suing, such as providing a detailed description of alleged violations of the law and pursuing an out-of-court settlement.

Tesla had called the February case, largest discrimination lawsuit in the country’s historyperverted.” This week it claimed that DFEH was operating under the pretext of “false compliance,” and that the lawsuit was politically motivated. DFEH argues that California law does not require it to do what the automaker says. Maybe Tesla would have better luck with such an argument in Texas.

4th Gear: Three Electric Cupra Models by 2025

The Cupra, Volkswagen’s sporty all-electric Seat spinoff, will have three cars on its list in the next four years, the automaker announced Tuesday. One of them will be made in his native Spain. From Reuters:

“In the medium term, our goal is to deliver 500,000 cars per year and drive our international expansion into new markets and into new segments,” CUPRA chief executive Wayne Griffiths said in a statement.

Since its founding in 2018, CUPRA has delivered around 200,000 cars and its turnover will reach around 2.2 billion euros ($2.35 billion) by 2021.

These models will have fun names, like “Terramar,” “Tavascan” and — wait a minute — “UrbanRebel.”

The Terramar model will be the first electric sports utility vehicle. It will be available in 2024 either with an internal combustion engine or as a plug-in hybrid. It will be produced at the Audi Gyor plant in Hungary.

The Tavascan is an electric concept car that is expected to be launched in 2024. Production details have not been announced.

In 2025, CUPRA will launch its UrbanRebel electric model. Production is planned at SEAT’s Martorell plant in Barcelona, ​​but is subject to approval by the Spanish government at Volkswagen’s public assistance request as part of its decision to build a battery cell factory in Spain.

We’ll probably never see any of this in the US, though considering how many parts they’ll likely share with the Volkswagen ID line, we’re most likely not missing out on much. Outside the badge that reads “UrbanRebel.”

5th Gear: BYD Says Tesla Will Use Its Batteries’As soon as possible’

It’s just a mere formality before the Chinese automaker, which is an acronym for the abbreviated name “Build Your Dream,” will build batteries for Tesla. That’s according to the company’s vice president. Through Reutersonce again:

We are now good friends with Elon Musk as we are preparing to supply batteries to Tesla soon,” said Lian Yubo, executive vice president of BYD in an interview with Kui Yingchun, China’s state-owned broadcaster CGTN.

BYD and Tesla did not immediately return requests for comment.

BYD, the world’s largest manufacturer of fleets including electric vehicles and plug-in hybrids, has been working to supply batteries to other automakers including Toyota.

BYD . battery knowledge is, after all, what makes him endearing Toyota, and resulted in the two companies joining forces for an affordable battery-electric small sedan aimed at China. Tesla relies on CATL, LG and Panasonic for batteries at the moment, and Panasonic sold its large stake in Tesla for a hefty $3.6 billion profit recently in an even bigger move to diversify its automaker partnership.

Reverse: Prototype No. 1

On this day 74 years ago…

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