Electric vehicles

[Malcolm]

Another reason to put your ev on pause but the article is from Australia and my next post is about Canada  

 

Thursday, Jun 13th 2024 11AM 61°F 2PM 67°F 5-Day Forecast

Eye-watering car insurance quote leaves Tesla drivers fuming: 'Absolute joke'

• EV owners are charged higher premiums 
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It might be getting cheaper to purchase an electric vehicle (EV) but an insurance quote for one driver's Tesla has been branded an 'absolute joke'. 

The motorist recently shared a photo on social media which revealed it costs a hefty $4,000 more to insure his EV than his internal combustion engine cars. 

Screenshots showed that comprehensive insurance for a Tesla would be between $5,073 and $5,17

Insurance is the second-biggest ongoing expense for Australian EV owners.

According to the Insurance Council of Australia (ICA), the peak insurance body, there are a few reasons why EV owners pay higher premiums. 

A spokesperson said EVs have more complex systems and components, and explained that repairing damaged EVs required importing parts to Australia.

'The cost of these parts and the limited number of qualified service centres and technicians contributes to the higher cost of insurance premiums for EVs than internal combustion (IC) vehicles,' the spokesperson told Yahoo. 

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The EV owner recently shared a photo on social media, expressing his amazement that it costs $4,000 more to insure his EV than his internal combustion engine cars

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According to the Insurance Council of Australia (ICA), the peak insurance body, there are a few reasons why EV owners pay higher premiums

Expensive battery replacement costs, which can be up to 40 per cent of the car's total value, were another key factor.

They also require speciality removal equipment, along with disposal and recycling methods and, without a local network, most batteries need to be returned overseas. 

The ICA noted factors like the driver's age and history, storage, make and model of the vehicle would play into premiums, as well as whether the car is under lease.

The price of some EVs have recently dropped by as much as $20,000, including the Tesla Model Y which plummeted from $72,000 to $55,000.

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The price of some EVs have dropped by as much as $20,000, including the Tesla Model Y which plummeted from $72,000 to $55,000

CarExpert.com founder Paul Maric said that increased competition among manufacturers was driving the price war.

'It's all been spurred on by Chinese brands who have started bringing in much more affordable electric vehicles to what we're used to,' he said.

'We've seen brands like Peugeot take like $20,000 out of some of their electric cars, which is unheard of and it also gives you an idea of how much margin they actually had built into them.'

China's BYD sold more cars globally than Tesla in 2023.

In fact, the situation has become so dire for Tesla that the company was forced to dramatically slash its prices.

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CarExpert.com founder Paul Maric that increased competition among manufacturers was driving the EV price war

Elon Musk's EVs were once pre-sold before even entering Australia but Tesla's sales were down by two thirds in April this year compared with the same time period last year.

Every month, 2,000 Teslas arrive at Port Melbourne but Peter Anderson of the Victorian Transport Association has warned very few are leaving.   

'All of a sudden we've got a huge backlog of Teslas that aren't moving. They've just stopped moving,' he told Seven News last month.

'Teslas usually come into this country pre-sold, these cars aren't. They're sitting here waiting for buyers.' 

It comes after American company ChargePoint shut down its 46 charging stations around NSW, Victoria and Queensland on February 1.

 

[Malcolm]

EV owners likely to pay more for insurance, report says. Here’s why

By Aaron D'Andrea  Global News

Posted February 15, 2024 11:51 am

 Updated February 17, 2024 9:32 am

 4 min read

 

 

EV owners likely to pay higher insurance fees, here’s why

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WATCH: A new report from a credit rating service suggests electric vehicle owners will likely have to pay higher insurance premiums in coming years. Kyle Benning reports – Feb 17, 2024

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Electric vehicle (EV) owners in Canada may start to see their insurance rates jolt in the coming years, a new report indicates.

The study by credit rating agency Morningstar DBRS suggests insurers in the U.K., Europe and parts of the U.S., where EV uptake is higher than in Canada, are starting to experience the impacts the EV transition is having on claims costs.

“The rates (in Canada) haven’t changed significantly when compared to regular internal combustion engine cars. It’s still the same, and the reason is because there’s a low uptake of electric cars in Canada compared to Europe, the U.S. and other jurisdictions,” said the report’s co-author, Victor Adesanya, vice president of insurance credit ratings at Morningstar DBRS.

“Right now, it’s not an issue, because they have fewer cars on the road, but as time goes on … then it could be an issue.”

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0:44Guilbeault lays out roadmap for 2035 electric vehicle targets

The report notes that Canada’s EV transition has not been as rapid as compared with the U.K. and Europe, where sales have grown exponentially since 2019, boosted by government incentives for buyers and material investment in charging infrastructure, the report indicates.

Ottawa has mandated that by 2035, all new vehicles sold in Canada must be emissions-free. In two years, 20 per cent of all cars sold must be zero emissions. It has laid out a road map of how to get there, but critics have said it’s unrealistic.

According to Statistics Canada’s most recent data, EVs accounted for three per cent of light-duty vehicle registrations in 2022, up from 2.3 per cent in 2021. The total number of road motor vehicles registered in Canada was 26.3 million in 2022, and light-duty vehicles accounted for 91.7 per cent of that figure.

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Since EVs are relatively new to the market, insurers here do not have enough historical claims data to accurately estimate lifecycle durability, maintenance and repair costs, the Morningstar report said.

 

2:15Auto report shows Canada faces declining EV interest, despite push to boost sales

However, it states several reasons why Canadian EV owners can expect higher insurance costs in the future.

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For one, “they cost more, so simply because they cost more, they’ll be more expensive to insure,” Adesanya said.

“The higher the value, the higher the cost is to replace if it is damaged or stolen. That’s the risk that the insurance company will factor into their pricing.”

EVs have fewer serviceable parts compared with internal combustion engine (ICE) vehicles, which suggests that maintenance costs should be lower, the report says.

 

2:42‘Kicked in the privates’: $50,000 electric battery quote

However, the report indicates other factors, like the cost to replace battery packs, the availability of replacement parts and the scarcity of skilled technicians, will affect the price of repairs and ultimately insurance rates in the short run.

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“Insurance is a one-year contract,” Adesanya said.

“So, your rates can change from year to year.”

To back up its findings, the report cites a few instances where insurance companies have had to deal with EV claims.

 

0:52Electric vehicle costs rising

An Oct. 28, 2023 Financial Times article stated that British auto insurers increased their rates considerably over the year, with one carrier suspending insurance coverage for EVs altogether to enable it to re-evaluate the cost of repairs.

Furthermore, recent media reports from British Columbia described how the main provincial auto insurer wrote off an entire EV because the cost to replace the battery would be the same as buying a new car of the same brand and make.

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Similarly, U.K. media have reported that some insurers have opted to write off EVs instead of repairing damaged battery packs after the vehicles had been involved in minor collisions.

The report added that over time, more auto insurers will be faced with the same challenge, which will likely be reflected in higher auto insurance rates as more EVs hit the road.

 

1:47Honda considering $18.4-billion EV plant in Canada

“Insurance is an experience-based business,” Adesanya said.

“Every year there’s opportunity for the company to review the experience of that particular product and see if the claims costs are rising.”

However, the silver lining for Canadian EV owners may be the fact the country’s insurance sector is highly regulated.

Provincial governments are responsible for the regulation of auto insurance policies, including the monitoring of claims handling and dispute resolution. Provincial regulators in Canada also review and approve requests made by insurers to increase rates before they can be implemented, Adesanya said.

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He added it’s unlikely Canadian EV owners will see a sudden shock in rates, but rather a gradual increase. He said it should take roughly five to 10 years before insurance companies have enough data for rates to stabilize.

“Insurance is statistics.… As they get more information, they’ll keep on tweaking the pricing models,” Adesanya said.

“By the time we get to 2035, they should have material data that the pricing begins to stabilize.”

[deicer]

https://www.bnnbloomberg.ca/zero-emission-vehicle-registrations-jump-53-per-cent-in-the-first-quarter-statcan-1.2085305

Zero-emission vehicle registrations jump 53 per cent in the first quarter: StatCan

Significantly more Canadians were driving zero-emissions vehicles in the first quarter compared with a year ago.

Statistics Canada says zero-emission vehicle registrations jumped 53 per cent in the first quarter year-over-year.

The federal agency says 46,744 new zero-emission vehicles were registered in the first quarter, making up 11.3 per cent of total new vehicle registrations.

The agency says battery electric cars made up 73 per cent of total zero-emission vehicle registrations, while plug-in hybrids were at 27 per cent.

Overall, the agency says new vehicle registrations were up 16.6 per cent year-over-year in the first quarter, but were down 3.1 per cent compared with the fourth quarter of 2023.

[Airband]

Successive quarterly declines in EV registrations - the trend is not your friend.

[deicer]

[Malcolm]

1 hour ago, deicer said:

Article is captioned: 

What is a surge in sales?

 

 

That is until the demand exceeds the supply, you run out of finished products before you could fulfill all orders, and you can't get raw materials quickly. This phenomenon is called a sales surge and, while it looks like a positive matter, it could lead to your business's downfall.May 26, 2022

 

[deicer]

5 hours ago, Malcolm said:

 

What is a surge in sales?

 

 

 

Maybe it's because the majority of manufacturers are selling more?  What industry wouldn't want to be selling 50 to 80% more?

Edited June 15 by deicer

[Airband]

19 hours ago, deicer said:

Maybe it's because the majority of manufacturers are selling more? 

Yes, if one chooses to compare Q1/24 with a period in the distant past. It's another to look at the current trend and see that the majority of those same manufacturers experienced declining sales from the prior Q4/23 period, for a cumulative reduction of some 15%.
This, in a time frame of falling prices, enhanced incentives and increased product offerings. 

[Malcolm]

Electric vehicles are becoming easier to find in Canada, but not easier to afford

 

Electric vehicles are becoming easier to find at Canadian auto dealers, but they are still more expensive than most gas-powered vehicles. EV experts encourage drivers to consider fuel savings and provincial incentives as they mull over their next car purchase.

See more

Electric vehicles are becoming easier to find in Canada, but not easier to afford | Watch (msn.com)

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[Malcolm]

Fisker files for bankruptcy protection, the second electric vehicle maker to do so in the past year

FILE - Fisker Automotive's Fisker Karma, a sports luxury plug-in hybrid car, is displayed at the 2010 Los Angeles Auto Show in Los Angeles, Cal, Nov. 18, 2010. Electric vehicle maker Fisker has filed for Chapter 11 bankruptcy protection in a period when even the top manufactures in the industry a struggling. Its operating subsidiary, Fisker Group Inc., said in its filing that its estimated assets were between $500 million and $1 billion. (AP Photo/Damian Dovarganes, File)© The Associated Press

Electric vehicle maker Fisker filed for Chapter 11 bankruptcy protection, the second electric startup to do so in the last year as even industry leaders struggle to lure more buyers beyond the early adapters of the technology.

Fisker Group Inc. said in a filing with the U.S. Bankruptcy Court in Delaware that its estimated assets are between $500 million and $1 billion. It estimated liabilities are between $100 million and $500 million, with between 200 and 999 creditors.

“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,” the company said in a prepared statement late Monday. “After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.”

The 7-year-old electric car company was founded by designer Henrik Fisker, who has been its chairman and CEO. He designed the company's 2022 Ocean all electric SUV as well as the luxury plug-in hybrid Karma that was launched in 2011. Fisker is also known for leading the development of the BMW Z8 sports car.

Fisker, based in Manhattan Beach, California, and other startups like Lordstown Motors Corp., sought to take on industry leaders like Tesla, and big automakers in Detroit, which have entered the market aggressively.

However, EV sales have slowed as manufacturers have attempted to push electric vehicles into the mainstream. Those sales have been curbed both by a lack of infrastructure, as well as rising inflation that have made taking on car loans more expensive.

Electric vehicles grew only 3.3% to nearly 270,000 during the first three months of this year, far below the 47% growth that fueled record sales and a 7.6% market share last year, according to J.D. Power. The slowdown, led by Tesla, confirms automakers’ fears that they moved too quickly to pursue EV buyers. The EV share of total U.S. sales fell to 7.15% in the first quarter.

That has led to huge price cuts and job cuts at leading companies like Tesla.

Another electric startup, Rivian, said this year that it was pausing construction of its $5 billion manufacturing plant in Georgia to speed production and save money.

 

Lordstown sought bankruptcy protection last summer, as it dealt with funding difficulties.

Early this year Fisker received a warning from the New York Stock Exchange after its stock dipped below $1. The company's shares were not immediately delisted and Fisker said at the time that it planned to remain listed on the NYSE and was looking at all available options to regain compliance with NYSE's continued listing standards.

Fisker Inc. and other U.S. subsidiaries, along with subsidiaries outside the U.S., are not currently included in the bankruptcy filing. Fisker says that it’s in advanced talks with financial stakeholders about debtor-in-possession financing and selling its assets.

Michelle Chapman, The Associated 

[Jaydee]

VW isn’t the first major automaker to reassess the EV situation, joining Ford, GM, and Mercedes-Benz.

 

VW Is Shifting Billions From EV Plans to Gas Car Development

Posted On Jun 8, 2024 11:35 AM 

 

Another week has passed, and another legacy automaker says, “Hold up, wait a minute,” on its plans to go fully electric by 2030 or 2040 or…at this point, perhaps, it’s when pigs fly.

Suits from Volkswagen Group are the latest to reconsider putting all or nothing at all into the EV coffers. According to Automotive News, CFO and COO Arno Antlitz said VW Group’s investment dollars would still go toward internal combustion engines. *gasp* 

But how many dollars are we actually talking about? A couple of bucks? Nope. One-third of €180 billion, or about $64 billion in today’s currency exchange rates. For real? 

To some, ICE is as dirty a word as diesel. On the VW front specifically, its EV plans appeared to be in full swing. The Volkswagen brand sold its 500,000th EV one year ahead of schedule, and VW CEO Thomas Shaefer dismissed e-fuels as “unnecessary noise.“

Then again, VW is a brand that listens to public opinion. Even without legal action, buttons came back, for example. And despite the seemingly fast start on EV sales, it wasn’t, er, sustainable. EVs continue to gain market share, but consumers are buying in at a slower rate. 

So far this year, Ford, General Motors, and Mercedes-Benz have announced pauses or made clarifications regarding their electrification strategies. Ford dealers were asked to sit tight on their EV-centric investments as the automaker reevaluated its retail strategy; GM’s all-electric lineup will now play out “over decades” rather than happen in 2035; and Mercedes-Benz said EVs are the long game, but that ICE, EV, and PHEV together offer the most short-term balance. And a twin-turbo V8 could be part of that balance. *double gasp*

As VW’s Antlitz frankly stated, “The future is electric, but the past is not over.” Oh, ICE, they never meant to give you up, let you down, and desert you. 

https://www.thedrive.com/news/vw-is-shifting-billions-from-ev-plans-to-gas-car-development

 

Edited June 18 by Jaydee

[Malcolm]

It all comes down to "if you cannot afford an electric without an subsidy, then perhaps it is time to wait until you can?

 

Automotive

Automotive industry experts say car buyers in B.C. will be pushed away from electric vehicles due to the province’s decision to change its rebate program.

On Tuesday, the government lowered the manufacturer’s suggested retail price (MSRP) for vehicles qualifying for the CleanBC Go Electric rebate program to $50,000 from $55,000. That removes about 75 per cent of electric and hybrid models from the rebate program.

Blair Qualey, president and CEO of the New Car Dealers Association of BC, said the decision will directly impact consumers, dealers and automakers.

“Everybody in the industry has been pretty shocked and astonished by this sudden change to the program,” he told Global News.

“It’s a dramatic change and a great concern to many.”

The rebate program provides up to $4,000 for qualifying zero-emission vehicles (ZEV) but now, with the lowering of the MSRP cap, those qualifying vehicles have become a lot more scarce.

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In another change to the program, SUVs, station wagons and vans have been moved from the larger vehicle category (with a higher MSRP threshold) to the car category with the new lowered MSRP of $50,000.

 

2:05New report says Canadians less likely to buy EV’s

“I think the government is facing some challenges around funding the program,” Qualey said.

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“So, they’ve looked at ways in which they can make some tweaks that will help reduce the outflow of cash, while still keeping some semblance of a program.”

Qualey said the association has been working alongside the existing program for about 13 years.

“There were periods where the money ran out, the cupboard was bare and there weren’t incentive monies for consumers at that time… we saw the sales of EVs fall off a cliff,” he said.

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“We anticipate that there will be a very similar situation here.

“We decided 13 years ago to be part of the solution and help the government by administering the program and getting all the dealers and the industry behind all of this. To suddenly see now the brakes put on and the rebates taken away is a problem.”

Other changes to B.C.’s EV program will have impacts beyond EV purchases, Qualey said.

 

 

1:59B.C. adding 500 public EV charging stations to fill gaps in network

The B.C’s Zero-Emission Vehicles Act also requires automakers to meet an escalating annual percentage of new zero-emission vehicles sales and leases.

Changes to the act in fall 2023 amended the original sales targets to 26 per cent of ZEV light-duty vehicle sales by 2026, 90 per cent by 2030 and 100 per cent by 2035.

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“The penalties to the manufacturer of not meeting those targets are about $20K a vehicle outside of the ratio,” Qualey said.

“This is going to be very expensive for consumers because manufacturers are going to have all these penalties on everything they sell, not just EVs.”

Global News spoke with B.C. Minister of Energy, Mines and Low Carbon Innovation Josie Osborne about the program’s changes.

“EV sales have been increasing at a far faster rate than we had anticipated,” Osbourne said.

“In order for us to stay within the available funding we have, we had to make adjustments. We still have about 70 different models that are available (for the rebate program).”

Osbourne said the changes will help “lower-income families” make the switch to electric and hybrid vehicles.

[Jaydee]

[Malcolm]

Electric Cars Make Life Difficult for Pedestrians

The Number of Electric Cars in Europe is Declining: Here's the Replacement

A Norwegian Volcano Holds the Key to Boosting Electric Cars in Europe

Europe currently stands at a critical juncture regarding electric vehicles, lagging significantly behind China in both the sale of these vehicles and the production and control of the battery supply chain.

Despite this gap, Europe has imposed controversial tariffs on the import of electric cars from China. This disparity isn't something that can be corrected overnight.

For perspective, China dominates 70 percent of the global supply of rare earth elements and controls 90 percent of their processing. Additionally, China is responsible for 91 percent of anode production, 78 percent of cathodes, and 70 percent of battery cells.

These figures underscore China's immense dominance in this field, which is crucial in the race to decarbonize transportation.

Norway's Discovery: A Step Towards Independence

A recent development from Norway could mark a significant step towards increasing Europe's independence in the extraction and processing of these critical minerals according to Motor.

Geologists from the mining company Rare Earths Norway (REN) have announced the discovery of a major rare earth deposit after three years of research and on-site exploration. Located in an extinct volcano in Telemark county, southwest of Oslo, this find is the largest of its kind in continental Europe.

 

 

The Fen Carbonatite Complex is estimated to hold deposits that could meet 10 percent of Europe's rare earth demand, with initial forecasts indicating 8.8 megatons of rare earth oxides, including 1.5 megatons expected to be magnets, which are vital for electric vehicles, wind turbines, and other applications.

Also read

Vital Role of Rare Earths in Electric Vehicles

The explorations of the magma in the Norwegian volcano have revealed the presence of economically significant rare earth elements such as neodymium and praseodymium.

These elements are used in the manufacturing of magnets and are considered by the European Union as critical raw materials due to supply risk concerns.

The magnetic, electronic, and optical properties of these rare earths are crucial for applications related to electric vehicles, particularly those involving permanent magnets, catalysts, batteries, and alloys.

With further exploratory drilling and the construction of a pilot plant planned, this discovery could significantly bolster Europe's position in the global electric vehicle industry.