https://www.channelnewsasia.com/news/commentary/freezing-us-fuel-standards-may-heat-up-chinese-auto-industry-10586780
Commentary: Why your electric vehicle will likely be made in China
07 Aug 2018  Kate Gordon  Reuters/nr

[images  
https://www.channelnewsasia.com/image/7580700/16x9/670/377/58de0740a47d50551c245d01b764a28c/bg/a-man-walks-at-an-electric-car-dealership-in-shanghai---3430966.png
A man walks at an electric car dealership in Shanghai, China, January 11,
2017. (Photo: REUTERS/Aly Song)

https://www.channelnewsasia.com/image/9830066/16x9/670/377/664be59eaecdd0e54515e51267e25835/MK/file-photo---an-electric-car-is-charged-at-a-parking-lot-in-oslo-1.jpg
An electric car is charged at a parking lot in Oslo, Norway, June 1, 2017.
(File Photo: REUTERS/Ints Kalnins)
]

In the global drive towards electric vehicles, China leads the pack and the
US's proposal to roll back fuel efficiency standards domestically is giving
it a boost, says one observer.

CALIFORNIA: Last week, the Trump administration took a giant step backward
on transportation innovation by issuing a proposal to freeze federal rules
requiring automakers to design more efficient, cleaner-running cars.

In April, then-US Environmental Protection Agency chief Scott Pruitt called
the current standards “too high” and said they did not “comport with
reality".

But globally, these standards have helped American automakers to remain
competitive as other countries – particularly China – embrace the transition
to a low-carbon economy.

By reversing course on fuel-efficiency regulations, the United States is
encouraging automakers to build outdated vehicles in a globally-evolving
market – ceding market leadership to China in the process.

Current federal vehicle standards require automakers to produce passenger
vehicles that meet specific mileage-per-gallon and carbon-emissions
standards. The administration’s proposal lays out eight possible scenarios
for scaling back the standards, with the preferred option being to freeze
them at 2020 levels through 2026.

Whether from a market, safety, or environmental perspective, this is
misguided.

AUTO RULES AND REGULATIONS WERE BENEFICIAL TO THE US

Historically, federal regulation of the US auto industry has led to better
vehicles – just look at seat belts, safety brakes, and glass standards for
windshields, all of which led to the development of safer cars that have
become the global standard over the past half century. 

Looking forward, it’s clear that low- or no-carbon vehicles will dominate
our global transportation future.

The vehicle emission rules provide incentives for US automakers to produce
and sell low-carbon vehicles, and electric vehicles (EV) in particular, as
these are both cleaner and more efficient than gas-powered cars and trucks.

Companies can manufacture these vehicles, but can also meet the standards by
purchasing credits from other auto companies that have more mature EV or
alternative-fuel vehicle lines.

The rules are flexible, but they’re also critical to maintaining US
leadership on EV manufacturing.

According to the Environmental and Energy Study Institute (EESI), “policy
support is playing a major role in developing and deploying EVs” in both the
United States and China, which is why the two countries lead the world in EV
registrations today.

Rolling back federal rules will relieve short-term pressure for
manufacturers to invest in electric vehicles, and could have significant
long-term impact on the United States.

Last year, global EV sales surpassed the one million mark for the first
time. Battery pack prices dropped 65 per cent from 2013 through 2017, a
trend that will only accelerate as global demand for EVs rises.

China recently joined the UK, France, Norway and India in pledging to phase
out the use of gas-powered vehicles in the coming decades.

Even Exxon, BP and OPEC project surging demand for electric vehicles out to
2040, and the most aggressive market outlook shows EVs making up over 30
percent of the entire global vehicle fleet by 2040.

Automakers are reading the tea leaves. Globally, they’ve announced US$150
billion in investments to get 13 million more electric vehicles on the
world’s roads by around 2025.

CHINA LEADS THE ELECTRIC VEHICLES MARKET

The United States is making a strong showing on EVs, but China leads the
pack. In 2017, half of global EV production took place in China, where
demand for electric vehicles is expected to triple by 2022.

The government is offering generous incentives to scale up EV production and
sales. More important, China has offered generous terms to international
automakers looking to establish themselves in the country.

It’s working: American companies like Ford and General Motors have announced
hefty investments in China’s EV market, and Ford’s chairman has gone on the
record as saying:

    China will lead the world in EV development.

image  Ford Motor World Headquarters is seen in Dearborn, Michigan, US, May
22, 2017. (Photo: REUTERS/Rebecca Cook)

The United States accounted for 17 per cent of global production of electric
vehicles in 2017, putting it in second place behind China.

While domestic policies are spurring significant growth in the EV market,
there is also increasing consumer demand. Recent data from American
Automobile Association shows that one in five US drivers will likely go
electric when buying their next car, and drivers are becoming less concerned
about running out of battery charge while driving EVs.

Ford, GM and Toyota are all adapting their production accordingly,
indicative of the larger global shift toward EVs. But of the top 20 electric
vehicle manufacturers, nine have headquarters in China, while only three are
based in the United States.

China accounts for 40 per cent of global investment in EVs and projections
show that the country will lead the market through 2040.

US AUTO INDUSTRY JOBS ARE AT RISK

China’s potential dominance in the changing auto sector matters. Auto
manufacturing constitutes about 3 per cent of US GDP, and accounts for the
most jobs of any manufacturing sector.

Losing these jobs, and this market share, to another country is no laughing
matter, especially in the auto-heavy Midwest and Southeast states: In
Michigan, Ohio, and Tennessee, auto industry jobs make up 10 per cent or
more of the entire state labour force.

Freezing fuel efficiency standards at this critical juncture, when momentum
is picking up and billions of dollars in investments are following suit,
would cede the growing EV market to China and create unnecessary regulatory
uncertainty for automakers in the United States.

The Trump administration should preserve the current standards or risk
encouraging American automakers to build the cars of the past in an
increasingly electric future.

Kate Gordon is a non-resident fellow at the Columbia Center on Global Energy
Policy, senior advisor to the Paulson Institute, and the author of Risky
Business: The Economic Risks of Climate Change in the United States.
[© channelnewsasia.com]


+
https://www.citylab.com/transportation/2018/08/its-electric-moped-time-america/566843/
It's Electric Moped Time, America
Aug 6, 2018 ... The founders of Revel, an e-scooter-share startup, think
U.S. cities are ready for a bigger, faster kind of boosted bike ... But that
was for cars; here I was, weaving in and out of traffic on a electric moped.
Google Maps said 20 minutes, maybe. I made it in 15 flat ...
https://cdn.citylab.com/media/img/citylab/2018/08/180521_Revel_2261-1/940.jpg?mod=1533572266




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