Ford, BMW, Honda, Volkswagen and Volvo are on the California side

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Five automakers are rallying to support California’s drive to set its own emissions requirements, used car prices are up but not as much as you probably think and a Chinese auto giant thinks it will soon manufacture batteries for Tesla. It is not known if Tesla knows about it. All this and more in The morning shift for Wednesday, June 8, 2022.

1st gear: a coalition for California

Five automakers — BMW, Ford, Honda, Volkswagen and Volvo — support California and the EPA’s move to allow the state to set its own emissions regulations, a move a group of 17 prosecutors Republican generals are currently suing the EPA. Of Automotive News:

“Two years ago, after the EPA relaxed federal greenhouse gas emission standards, Ford and four other automakers reached settlement agreements with California to meet emission standards. emissions that were more stringent than the EPA’s then-relaxed standards,” said Steven Croley, Ford policy director. said Tuesday during a press call. “We think it was right then, and we think it is now.”

Of the Big Three, Ford stands alone; Stellantis and General Motors, however, did not intervene in the same way GM has publicly sided with California before.

General Motors, which aspires to have an all-electric portfolio by 2035, said it did not file an intervention. The Alliance for Automotive Innovation, which represents the five automakers intervening in the lawsuit as well as GM and other major automakers in the United States, said it was not a party to the litigation. Stellantis declined to comment.

The attorneys general’s argument is that giving California autonomy to set its own standards violates the Constitution’s doctrine of equal sovereignty — a doctrine that I, for one, don’t tend to hear the GOP do. a lot of noise when the problem in question involves abortion. or firearms, where the rights of states are treated as sacred. This one is different, though! Ask yourself why.

GOP attorneys general, led by Dave Yost of Ohio, allege the Clean Air Act waiver violates 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 other biofuels groups – have joined the lawsuit challenging reinstatement.

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 other facet of this lawsuit is that automakers don’t want to keep changing their emissions law plans that swing wildly from progressive to regressive with each alternating administration. They want to do one thing and stick to it, ideally for the whole planet, because it’s easier and cheaper to manufacture.

2nd gear: Used car wholesale prices increase, just slightly

Mannheim’s Used Car Value Index, which tracks the overall trend in used car prices regardless of variances between individual vehicles, rose 9.7% in May from the same month in 2021, Automotive News reports:

Wholesale prices were 9.7% higher in May than they were in the year-ago period. These numbers are adjusted for mix, mileage and seasonality. On an unadjusted basis, prices rose 1.1% in May from April, with prices up 12% year-over-year.

The pace of retail sales of used vehicles remained relatively stable in May. Used retail sales fell 1% from April, according to Cox Automotive, which made the estimate by leveraging a set of comparable dealerships selected from Dealertrack to represent the United States.

Used retail sales fell 7% year-over-year, the “best year-over-year performance to date” in 2022, according to Cox Automotive.

The common theory is that tax refunds might have something to do with this:

The slowdown in the issuance of tax refunds influenced the spring sales season. About 74% of refunds scheduled for 2022 had been issued by May 20, meaning there is still some refunds consumers can potentially pump into the used retail market through June.

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

The silver lining is that we’re still not seeing the massive 40-50% year-over-year price increases that we originally made in 2021, but that’s because the market probably couldn’t handle it. .

3rd Gear: Tesla attacks the California Fair Employment Department

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

Tesla, in a 10-page complaint, told the California Office of Administrative Law (OAL) that the state’s Department of Fair Employment and Housing (DFEH) passed ‘underground regulations’ that flout requirements which he must respect before prosecuting the employers.

DFEH, in a lawsuit in February, claimed that Tesla’s flagship factory in Fremont, California, was a racially segregated workplace where black workers were harassed and discriminated against in terms of work assignments, discipline and of remuneration.

Tuesday’s complaint is an attempt to restrict the DFEH’s authority to prosecute discrimination cases by forcing the agency to take additional steps before proceeding, such as providing companies with detailed explanations of alleged violations of the law and making efforts to settle out of court.

Tesla had called this February case the largest discrimination lawsuit in state historylost.” This week, he claims that the DFEH is operating under the guise of “sham compliance” and that the suit was politically motivated. The DFEH argued that California law does not require it to do what the automaker says it does. Maybe Tesla will have better luck with this kind of argument in Texas.

4th gear: three electric Cupra models by 2025

Cupra, Volkswagen’s all-electric sports spin-off, will have three cars on its roster over the next four years, the automaker announced on Tuesday. One of them will be made in his native Spain. Of Reuters:

“In the medium term, our goal is to deliver 500,000 cars per year and to continue our international expansion into new markets as well as entering new segments,” CUPRA Chief Executive Wayne Griffiths said in a statement. .

Since its establishment in 2018, CUPRA has delivered around 200,000 cars and its revenue reached around 2.2 billion euros ($2.35 billion) in 2021.

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

The Terramar model will be its first electrified sport 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 Audi’s Gyor plant in Hungary.

The Tavascan is an electric concept car that is expected to launch in 2024. Its production details have yet to be announced.

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

We’ll probably never see any of these in the US, but given how many parts they’re likely to share with Volkswagen’s ID lineup, we probably won’t miss much. On the outside a badge that says “UrbanRebel”.

5th Gear: BYD says Tesla will use its batteries’Very soon’

It’s just a formality before the Chinese automaker, whose acronym stands for “Build Your Dreams,” builds batteries for Tesla. This is according to the vice president of the company. Going through Reutersonce again:

We are now good friends with Elon Musk as we are preparing to supply batteries to Tesla very soon,” said Lian Yubo, executive vice president of BYD, in an interview with Kui Yingchun, anchor of the Chinese public television channel. CGTN.

BYD and Tesla did not immediately respond to requests for comment.

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

BYD battery know-how is, after all, what endeared him to Toyota, and led the two companies to join forces for an affordable small battery-electric sedan destined for China. Tesla currently relies on CATL, LG and Panasonic for batteries, and Panasonic sold its massive stake in Tesla for a hefty $3.6 billion profit not too long ago as part of a move aimed at diversifying its partnerships with car manufacturers.

Reverse: Prototype n°1

On this day 74 years ago…

Setback: My enjoyment of Formula 1 is down

There’s a good title fight going on, peppered with classic Ferrari self-sabotage. And yet, I can’t put my finger on the precise reason why I don’t feel like continuing to watch the races. Personally, I’ve been busy pretty much every weekend, but I also think there’s just too much racing. Plus, I found myself caring less afterwards Saudi Arabia and miamiand that’s probably no coincidence.

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