Runtime: 8:58
0:33 EV Incentives Should be Based on Sliding Scale
1:37 GM Creeps Closer to Tax Credit Plateau
2:18 Electrification to Reduce Transmission Gears
3:49 European Automakers Face Big Emission Fines
4:33 Sanctions on Iran Impact Automakers
5:52 Jaguar E-PACE Impressions
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On today’s show… a new study shows automakers in Europe face big fines due to new emission standards… automakers have been adding more and more gears to transmissions but GM says that trend is going to end… and I’ll share my impressions of the new Jaguar E-PACE. All that and more coming right up on Autoline Daily.
This is Autoline Daily the show for enthusiasts of the automotive industry.
EV INCENTIVES SHOULD BE BASED ON SLIDING SCALE
The federal tax credit for the purchase of an EV is currently capped at $7,500 but some researchers are saying the payment should instead be based on a sliding scale. A new study from the Argonne National Lab and the University of Wisconsin-Milwaukee shows that how environmentally friendly an EV is can vary widely across the U.S. due to climate differences, whether or not the electricity is produced with fossil fuels and miles driven. For example, a mid-size EV in average driving conditions in Vermont will produce close to 19 lbs of greenhouse gas emissions (GHGs). But that same EV will produce over 5,650 lbs of GHGs in Indiana. Battery life can vary greatly as well. A battery can be expected to last 13 years in Alaska, but only 5 years in Florida. So, researchers are recommending that the incentive should favor states where EVs harm the environment the least.
GM CREEPS CLOSER TO TAX CREDIT PLATEAU
And speaking of the federal tax credit for EVs, GM is creeping closer to the 200,000 unit limit. According to Edmunds, GM has sold 186,670 vehicles that qualify for the incentive. At this rate, it will hit the mark by the end of the year or early in 2019. The full $7,500 incentive doesn’t go away immediately, but it will get chopped in half every 6-months until there’s nothing left. GM and Tesla, the first automaker to hit the 200,000 plateau, have lobbied Congress to extend the full credit. But so far, no luck.
ELECTRIFICATION TO REDUCE TRANSMISSION GEARS
There’s a number of automakers with 10-speed transmissions and some companies are talking about going beyond that. But we recently talked to Mike Anderson, the Executive Director of Global Transmission Electrification at General Motors, and he said even with an internal combustion engine, all those gears won’t be necessary thanks to electrification.
(Clip from CAR MBS 2018 interview can only be viewed in the video version of today’s show.)
That interview came from our coverage of the CAR Management Briefing Seminars. And you can find that, along with all the other interviews we did, in the Autoline on the Road section of our website on Autoline.tv.
Still to come… .U.S. trade sanctions in Iran force Daimler to freeze its operations in the country.
EUROPEAN AUTOMAKERS FACE BIG EMISSION FINES
Automakers in Europe face big fines if they don’t meet new emission requirements. Starting in 2020, a carmaker’s passenger vehicle fleet must meet a 95 gram-per-kilometer emission target. By 2021, OEMs must be 100% compliant with the rule. But because sales of electrified vehicles are so small, it won’t be enough to offset emissions from combustion engine vehicles. And because of that, a new study from IHS Markit found that automakers could pay 14 billion euros in fines in 2021 for not meeting the stricter rules. The analysis found that 25 automakers are on pace to meet the targets but another 27 are behind.
SANCTIONS ON IRAN IMPACT AUTOMAKERS
The Trump Administration is imposing new trade sanctions on Iran today and the President has also threatened to penalize companies that do business in the country. And that new policy is having an impact on automakers. Bloomberg reports that Daimler is freezing its operations in Iran and scrapping a planned expansion in the country. A quarter of its global sales are in the U.S., so it didn’t want to put that at risk. Renault and PSA have announced they’re pulling back from doing business as well. While this is a big inconvenience for the automakers, there are a number of countries in Europe working to protect companies impacted by the new sanctions.
And just a quick programming note here. There won’t be a new Autoline After Hours this week but John and Gary will be back next Thursday, August 16th, with some of the best insider discussions in the automotive industry.
Coming up next, the Jaguar E-PACE stands out from the crowd of small crossovers.
JAGUAR E-PACE BREAKS THROUGH SEA OF SAME-NESS
Every time a new crossover comes out, its looks are always compared to another vehicle that came before it. People will say, “Oh, that looks like it came off a Toyota or that’s straight BMW.” But good design will always break through the sea of same-ness. Take, for example, the new Jaguar E-PACE. While it is not revolutionary in style, the design IS well executed with the right proportions for the vehicle. I can’t tell you how many friends, family members and neighbors commented on the looks. Even several strangers in the parking lot stopped to tell me how good they think the E-PACE looks. And that’s just at first blush. Once you start to dig in, there are a number of little touches that will help customers to fall in love with the little crossover. Like the Easter Egg of a mama Jaguar and her cub walking along the base of the windshield. The same image is featured in a puddle light that greets you as you walk up at night. And just look at how stylish the heating element in the rear window is. I’ve never seen anything like it before. And the E-PACE drives nearly as good as it looks. The turbo 4-cylinder in our First Edition model produced 246-horsepower and nearly 270 lb-ft of torque. That’s more than enough to get this little crossover up and moving. Add in the optional Configurable Dynamics package with a drive mode selector and it’s even better. Unlike some I’ve experienced, the modes are very distinct when switching between Normal and Dynamic. The suspension setup was also quite sporty and surprised me at how little body roll there was even when getting a little aggressive in corners. But for everyday driving I wish there was a larger profile tire to soak up more of the bumps. My other gripes are few. The backup alert seemed like it was turned to 11 and scared the bleep out of me the first time it activated. But at least that can be turned down. Just turn off the start-stop system. It’s too sensitive, engaging the moment the vehicle comes to a stop. And while it seemed like it would do its job well, the execution of the cargo retaining system in the trunk was not very good. Some of the knobs to lock the pieces down were hard to turn and the parts that were meant to slide in the track didn’t slide very well. Add in thousands of miles of dirt and grime and it’s not going to get any better. Overall, the E-PACE is good and worth a look if you’re in the market for a small luxury crossover. Price starts at $38,600, while our First Edition model came in a little over $53,500.
But that wraps up today’s show, thanks for watching and please join us again tomorrow.
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John McElroy is an influential thought leader in the automotive industry. He is a journalist, lecturer, commentator and entrepreneur. He created “Autoline Daily,” the first industry webcast of industry news and analysis.