Automakers and the United Auto Workers union had lobbied DOE to soften its original petroleum equivalency factor rule. They argued that more aggressive targets would have required them to sell more EVs to meet stricter federal fuel economy standards amid uncertain demand, making it impossible to comply. Environmental groups, including the Natural Resources Defense Council and Sierra Club, asked the Biden administration for stricter MPGe standards in 2021, which had not been updated since 2000. “The automakers’ free ride is over,” said Pete Huffman, senior attorney at NRDC, in a statement. “This important update from the Department of Energy will curtail automakers’ use of phantom credits they used to keep selling gas guzzlers. They now need to hit the accelerator on more fuel-efficient vehicles, saving consumers money at the pump.”     The Department of Transportation uses DOE’s petroleum equivalency factor to calculate MPGe and CAFE, which averages the fuel economy of all vehicles sold by a manufacturer. The old formula equated a battery-electric vehicle with a gas-powered car that gets 300 mpg. Under the new rule, however, an EV’s petroleum equivalency factor equals a gas vehicle that gets 106 mpg. The original proposal would have reduced it further to 84 mpg. “It looks like the administration changed course and adjustments to [the petroleum equivalency factor] will instead phase in over a number of years. That’s positive,’ said the Alliance for Automotive Innovation, which represents over 40 automakers, in a blog post Tuesday. The Detroit Three automakers and the UAW had been especially concerned about the rule because General Motors, Ford Motor Co. and Stellantis sell more light-duty trucks than other vehicle manufacturers, potentially exposing them to higher noncompliance penalties for CAFE violations. GM, Ford and Stellantis could have paid up to $10.5 billion in penalties for violating federal fuel economy standards, which would have comprised 76% of all such fines, according to the American Automotive Policy Council, an industry group representing the Detroit Three. The Environmental Protection Agency is set to finalize stricter emissions standards on Wednesday.

Automakers and the United Auto Workers union had lobbied DOE to soften its original petroleum equivalency factor rule. They argued that more aggressive targets would have required them to sell more EVs to meet stricter federal fuel economy standards amid uncertain demand, making it impossible to comply. Environmental groups, including the Natural Resources Defense Council and Sierra Club, asked the Biden administration for stricter MPGe standards in 2021, which had not been updated since 2000. “The automakers’ free ride is over,” said Pete Huffman, senior attorney at NRDC, in a statement. “This important update from the Department of Energy will curtail automakers’ use of phantom credits they used to keep selling gas guzzlers. They now need to hit the accelerator on more fuel-efficient vehicles, saving consumers money at the pump.”     The Department of Transportation uses DOE’s petroleum equivalency factor to calculate MPGe and CAFE, which averages the fuel economy of all vehicles sold by a manufacturer. The old formula equated a battery-electric vehicle with a gas-powered car that gets 300 mpg. Under the new rule, however, an EV’s petroleum equivalency factor equals a gas vehicle that gets 106 mpg. The original proposal would have reduced it further to 84 mpg. “It looks like the administration changed course and adjustments to [the petroleum equivalency factor] will instead phase in over a number of years. That’s positive,’ said the Alliance for Automotive Innovation, which represents over 40 automakers, in a blog post Tuesday. The Detroit Three automakers and the UAW had been especially concerned about the rule because General Motors, Ford Motor Co. and Stellantis sell more light-duty trucks than other vehicle manufacturers, potentially exposing them to higher noncompliance penalties for CAFE violations. GM, Ford and Stellantis could have paid up to $10.5 billion in penalties for violating federal fuel economy standards, which would have comprised 76% of all such fines, according to the American Automotive Policy Council, an industry group representing the Detroit Three. The Environmental Protection Agency is set to finalize stricter emissions standards on Wednesday.

GKN Automotive’s former parent company, Melrose Industries, formed a new public company dubbed Dowlais. Melrose completed its demerger in April 2023, spinning off GKN Automotive, GKN Powder Metallurgy and GKN Hydrogen under Dowlais, while GKN Aerospace remains under Melrose Industries. Dowlais is independent from Melrose.     “We have a clear strategy to create value for our stakeholders by: delivering industry leading financial performance; facilitating the world’s transition to electric vehicles through a portfolio of cutting-edge products; and accelerating growth through a disciplined M&A strategy,” Dowlais CEO Liam Butterworth said in an April 2023 press release. The Timberlake facility is the second North Carolina site GKN Automotive closed in the past year. The auto parts maker closed its facility in Sanford in March of last year, according to a WARN Act post.

For legacy automakers, collaborating with tech companies like Mobileye can speed up the development and rollout of software-powered technology, including more advanced automated driving systems. Just one in four automakers are fully prepared for software-defined vehicles, according to an AlixPartners survey in January. The same report found that Tier 1 suppliers must adapt to automakers’ needs as the industry pivots to building more software-defined vehicles. The Volkswagen Group has collaborated with Mobileye, owned by chipmaker Intel Corp., on autonomous driving technology since 2018. The technology supplier specializes in computer vision processing for highly automated driving functions and vehicle advanced driver assist systems, such as automatic emergency braking and lane centering control.     As the companies develop more advanced driving systems, Mobileye will provide the automaker with production-ready technologies, including Level-2 automated driving capabilities. In 2026, the Volkswagen Group plans to add a Level-4 automated driving system to a version of the Volkswagen ID. Buzz electric van intended for commercial mobility and transportation services. “Our goal is to offer our customers throughout the world outstanding products with cutting-edge technology,” said Oliver Blume, CEO of the Volkswagen Group and Porsche AG, in a press release. “New automated driving functions will significantly boost convenience and safety.” In addition to working with Mobileye, the Volkswagen Group plans to collaborate with its other partners, including Bosch and Qualcomm, to further develop and refine software-based vehicles.

Stellantis plans to cut about 400 jobs among its nonunion engineering and software staff in the United States. The company provided a statement Friday that suggested a challenging industry picture as the reason. It said the cuts, which are separate from other reductions affecting union-represented workers announced in recent months, would be effective March 31. Stellantis owns the Jeep, Ram, Chrysler, Dodge and Fiat brands.     “As the auto industry continues to face unprecedented uncertainties and heightened competitive pressures around the world, Stellantis continues to make the appropriate structural decisions across the enterprise to improve efficiency and optimize our cost structure. After rigorous organizational reviews, Stellantis confirms that we will reduce our engineering/technology and software organizations by about 2% in the U.S.,” according to the statement provided by spokeswoman Jodi Tinson.

Officials of the Jaipur City Transport Services Limited (ICTSL) aremulling a proposal of the Traffic Control Board of the JaipurDevelopment Authority (JDA) to convert a few of the bus stands intocharging units for e-buses. The state government is all set to procurearound 500 e-buses, majority of which would ply on Jaipur roads.     “Most bus stands of the city are lying unutilized. On the other hand, weneed one or two charging points on all roads where our buses ply. So, inthe last TCB meeting it was proposed to convert a few of the bus standsor a portion of these buses into charging units for the e-buses,” said aJCTSL official. Officers claimed, once the corporation starts procuring e-buses it wouldinstall charging units at all the depots so that buses can be charged whennot in use. Still, they need at least one or two units of all roads whereJCTSL’s buses ply- depending on the number of buses plying on thatparticular road – for emergency. “We had started process of procuring e-buses. But the process is on holdbecause of the model code of conduct. Once polls are over we are goingto procure these buses. Meanwhile, we are working on such ancillaryworks and would soon start the work of installing charging points,” anofficial added.

The first BMW X2 didn’t really fit the mould. For starters, it was smaller than the X1, despite occupying a larger number in BMW’s model hierarchy. In BMW’s world, where the X4 is a coupe version of the X3 and the X6 is a coupe version of the X5, the X2 was more like a chubby version of the 1 Series hatchback and not a sleeker alternative to the mightily popular X1 SUV. For the second generation, the new X2 is visually a much stronger relation to the X1. It shares a familiar imposing front end, functional interior and powertrains, with the rear-end providing the major difference.     That’s right. BMW has now aligned the X2 properly against the X1, so it has a sloping roofline and more athletic proportions. While these pricier coupes only sell a fraction of the volumes their SUV counterparts achieve, there’s undeniably a growing trend towards this bodystyle. Peugeot has just redesigned its popular 3008 with a sleeker silhouette. This review is centred on the electric iX2, which is offered with two powertrain options. There’s the single-motor eDrive 20 and the twin-motor xDrive30, just like the iX1. The eDrive20 has both a lower list price and longer range. You can expect around 230 miles from the cars 65kWh battery – the WLTP figure is 283 miles. Performance is adequate too, with 0-62mph taking 8.6 seconds. Stepping up to the xDrive30 delivers a more thrilling experience. It’s a very rapid car, with effortless acceleration. The all-wheel-drive configuration delivers enhanced grip and more confidence in less grippy conditions, but it does come at the expense of range. In colder weather, our testing revealed a realistic range of about 200 miles. The official range is 267 miles. The iX2 is meant to be a sportier and more driver focused vehicle, when compared to the iX1. It’s an enjoyable car to drive, especially in twin-motor guise. The steering is lighter than we’d expected, giving a more agile but less relaxed feel. At higher speeds the iX2 is very refined with its body providing enhanced aerodynamics and less wind noise. Ride quality impressed too, even on out test car’s 20-inch wheels, the iX2 isolates occupants from the worst road surfaces.     Pricing starts at £51,615, for the eDrive20, rising to £57,445 for the xDrive30, making the iX2 a competitor for the Audi Q4 e-tron Sportback, Genesis GV60, Polestar 2 and Volvo EC40. Only the M Sport trim level is available, currently. It means the iX2 is priced keenly against its main pool of rivals with only the Polestar 2 offering a better value proposition. With BMW’s exceptionally high level of build quality, the interior is befitting of the iX2’s premium price tag. It’s a comfortable and well design cabin with a good driving position, supportive seats and an impressive level of equipment. A giant panoramic screen dominates the iX2’s interior, providing all the instrumentation and infotainment functions on board. There are very few physical switches, with the touchscreen portion of the display used to command key functions and settings. Drivers can also use voice commands to instruct the system. All iX2s come with parking sensors, a reversing camera and parking assistant, the latter of which can assist the driver with parking manoeuvres. A 360-degree surround view camera is optionally available and includes a built-in dashcam feature. You might think that taking an iX1 and cutting a bit off the back is generally going to affect practicality, but it’s not quite that straightforward. The iX2 has a completely different body and is a little longer, meaning it is a spacious car – certainly more so than its predecessor. Boot volume, measured to the top of the rear seats is actually larger than an iX1 at 525 litres vs 490 litres. Interior space is also more generous than before, although there’s a little less headroom than in an iX1. For family car duties, the iX2 will fit the bill well.  

Hyundai has confirmed to AM it will be reducing the number of partners it works with from 70 to around 55 by 2029 in the UK as part of its” future proofing” plans. The Korean brand said it has worked in partnership with its retail partners to streamline the network, but made it clear that it would not be reducing the overall number of showroom locations, which is currently at 165, as part of these plans. In fact, Hyundai is planning to maintain the number of showrooms across the UK and eventually increase this number to 173 in the future. A third of the network will also be making investments and enhancements to their showrooms “to create a more profitable business proposition which delivers an enhanced retail experience”.     Hyundai said the aim of these improvements is address the long-term sustainability of the relationship with partners, “as well as the experience for customers throughout the sales and ownership journey”. AM understands Hyundai dealers had been given a detailed roadmap and timeline for the changes back in August 2023. A spokesperson for Hyundai told AM: “The network is the most profitable it has ever been and the upper quartile are above 2% return on sales. “This has been a long term project done in collaboration with our retail partners. We also want to make it clear that we’re not moving away from working with smaller dealer groups and retailers as part of these plans. This is more about the right locations and the customer experience.” Ashley Andrew, Hyundai Motor UK president (left), added in a statement that Hyundai has transformed rapidly to a “desirable electrified vehicle brand in a remarkably short space of time”. He said: “Even in the past few years, the launch of the Ioniq 5 and 6 has positioned Hyundai at the cutting-edge of the electric vehicle market. “With that pace of evolution, we must reassess our business at every level including every touchpoint our customers have with the brand. “We know our products are fantastic, but our brand perception and the service we offer our customers must keep up with that pace. “After a thorough review of our retail network – implemented with the alignment of our retail partners – we’re putting into action a long-term plan that will ensure the continued viability and growth of the Hyundai brand in the UK.”

New Delhi: The recent joint announcement by Honda and Nissan to explore working together marks yet another step forward in the consolidation of Japan’s auto industry. According to industry sources, it is a clear acknowledgement of today’s global realities where the Chinese are forging ahead in the electric vehicle arena. “Japan has been a laggard in comparison and this move by Honda and Nissan to team up for electrification is proof of this fact,” says an auto sector official. In his view, forming deep relationships is the only way out for automakers to stay afloat in this competitive era of manufacturing EVs, more so when they are up against a formidable opponent like China. The country has already signalled its intent to ship out its range to a host of countries in South America and ASEAN with Europe and the UK also on its radar. The killer combination of top- end features and an affordable price tag are enough to draw buyers from across the world to Chinese EVs. It is precisely for this reason that Europe is already under pressure from its carmakers to impose tariffs on EVs imported from China with the US likely to follow suit for Chinese car brands that could be shipped out from their facilities in Mexico. Japan vs. China In this backdrop, it is now getting increasingly apparent that Japan’s dominant position in the automobile industry is under even greater pressure thanks to the EV blitzkrieg emanating from China. Sure, Toyota continues to be the world’s largest carmaker but going solo is not the answer if it means standing up to the challenges of tomorrow. This also puts in context why Toyota has been at the forefront in sewingup some key alliances as part of the effort to stay ahead of the race. In2017, it announced a partnership with Suzuki Motor Corporation with aneye on India and other emerging markets like Africa and Latin America.Suzuki is the market leader in India and Toyota has not been able tomake much of a dent there except for one successful brand in the formof Innova. However, over the past six years since this alliance came into being, boththe companies have been collaborating on key areas like productdevelopment and ushering in cleaner fuel options for the Indian market.There could be some even bigger developments in the near future likeglobal products and other technological breakthroughs which will putthe Toyota-Suzuki partnership on a strong wicket. Toyota also has a stake in another Japanese brand, Mazda, where theidea is to grow in North America which is clearly among its mostimportant markets. Then there is Daihatsu, another Toyota groupcompany, whose prowess will be leveraged for the ASEAN region. Renault alliance In the case of Honda and Nissan, it is still not clear how this will pan outin terms of a strategic roadmap. The latter has had a strong partnershipof over two decades with Renault of France even while the structure haschanged in recent times with Nissan now having a greater say than in thepast. Honda had entered into an agreement with General Motors to produceelectric vehicles but the two called it off last October since it did notlook too viable. Perhaps this prompted the Japanese carmaker to joinhands with Nissan and, in the process, take the consolidation script inJapan to the next level. It perhaps needs to be mentioned here thatNissan also has a stake in Mitsubishi, acquired in 2016 when the latterwas literally down and out. Incidentally, there was a time when the Japanese automakers like Suzukiwere in global partnerships which were working quite well. The alliancewith GM, for instance, was coming along nicely till the two decided tocall it quits and the next big ticket brand Suzuki opted for wasVolkswagen where the script just went horribly wrong. The parting of ways was not pleasant and it was at this point in time thatToyota stepped into the picture. The alliance has had no glitches thus farand this is also owing to the fact that there is a greater level of culturalconvergence and mutual respect among Japanese companies. Case for unity Nissan and Renault also had a successful relationship even though it wasnot exactly on even terms. This is what raised the former’s hackles whichthen led to a series of dramatic developments starting with the arrest ofCarlos Ghosn, Chairman of Renault-Nissan, followed by more upheavalsat the leadership level and finally a restructuring of the alliance. With Honda now as its partner for EVs, there will be obvious questionson the relevance of the Renault partnership going forward. Will Hondaalso play a role here along with Mitsubishi? These are early days yet toseek answers but, from the viewpoint of Japan’s auto industry, thepragmatic solution is that in unity lies strength. A section of industry observers believes that the Japanese governmenthas been pushing for greater consolidation among its automakersfraternity since this is the only way to stand up now competitionemerging in the form of the Chinese. Even in the two-wheeler arena.Honda and Yamaha which were bitter foes for decades teamed up in 2016for joint development of 50cc scooters which is a niche segment inJapan. While this may not have seemed too significant, it still marked abeginning in building new bonds between two erstwhile rivals who hadlittle love lost for each other during the fierce days of the ‘H-Y war inthe early 1980s. Burying the hatchet The global CEO of Yamaha then, Hiroyuki Yanagi, had told this writerduring a visit to India, “All this happened over 30 years ago. That wasduring the old generation management but we represent a newgeneration that thinks differently” Apart from working together in the 50cc scooter space, the twocompanies were tipped to explore the possibility of collaborating inelectric motorcycles and in areas relating to range, charging time,performance and cost, Yanagi said electric bikes represented animportant mobility initiative for the future. “However, in the case of e-motorcycles, there are technologicaldifficulties compared to four-wheelers. We will try and make a goodalliance with Honda as each of us has some know-how in this space. If wecan put that together, there will be better technology in the process,” hesaid. Since then, nothing much has really come about in terms of joint productdevelopment from Honda and Yamaha but, as industry observers say,there is no telling what the future has in store. In any case, there isalready a two-wheeler battery consortium in Japan comprising Honda,Yamaha, Kawasaki and Suzuki which may well build up to somethingbigger globally.

Smart technology such as autonomous parking systems and the wide availability of superfast battery charging infrastructure will drive a boom in electric vehicle (EV) sales in China over the next five years, according to two of the segment’s leading manufacturers. Xpeng’s Brian Gu told a panel on “The Innovation Boom Coming from China’s Greater Bay Area” at the Milken Institute’s inaugural Global Investors’ Symposium in Hong Kong on Tuesday that smart driving technology will become as “prevalent” as smartphones are today. Meanwhile, BYD’s Stella Li pointed out that even traditional energy firms were investing in battery charging infrastructure. Both firms are based in the Greater Bay Area development zone. “In five years, EVs and these [smart-driving] technologies will be just like [how] iPhones and smartphone technologies are prevalent nowadays,” said Gu, vice-chairman and president of Guangzhou-based Chinese smart EV maker Xpeng.     Almost all EVs will be equipped with smart driving technologies such as autonomous parking and navigation systems by 2029, he said. And by that time, battery-powered vehicles will dominate car sales and superfast charging technology will have greatly shortened the time required for charging EVs, on par with gas stations. Gu’s comments came after Guangzhou-based Xpeng last week reported a 153 per cent increase in its revenue for last year’s fourth quarter, narrowing its net loss by 40 per cent year on year. Moreover, He Xiaopeng, Xpeng’s founder, was bullish about the company’s strategy of developing autonomous driving technology and making it affordable and accessible for “a much broader customer base”. Last year, China, the world’s biggest automotive and EV market, recorded the sales of about 30.1 million cars, of which about 35 per cent were pure battery EVs and plug-in hybrids.     Gu forecast that China’s EV sales will surpass 50 per cent of new car sales in 2024, and touch 80 to 90 per cent in five years. Currently, only about 10 per cent of China’s premium EV models have advanced driving technologies, he said. “We are still far way from robotaxis, and driverless cars will probably take more than five years to be commercialised, but most of the cars in five years will be smart driving cars,” Gu said. Superfast EV battery charging technology will also see rapid development in the next five years, coupled with advancements in battery technologies, he said. “In five years, I think superfast charging of EVs will become the predominant form, and the user experience will be very similar to today’s gas station visit,” Gu added. The wide use of EVs will greatly drive up the demand for charging infrastructure, which will create more opportunities for companies in the charging business, said Li, executive vice-president at Shenzhen-based BYD, the world’s biggest EV maker. Last year, BYD partnered with global oil giant Shell to open the British energy giant’s largest EV charging station globally. Located near the Shenzhen airport, the charging station features 258 public fast-charging points. Rooftop solar panels have been installed to supply clean electricity for charging. The two companies have extended their partnership to overseas markets including Mexico and Brazil, Li said at the event. “I think China built a very good example for every country to learn from,” she said, referring to the Chinese government’s policy support and subsidies at an early stage, which incentivised EV purchases and adoption, and later policies on charging infrastructure deployment. “Once there are more people driving [EVs], then you need more charging stations,” she said. “Even traditional gas companies now are putting a lot of money” into the future of transport, which is EVs, Li added.