Climate Crisis AM Edition 3/12/24 Ford Hit By Poor Self-Driving System Grades
China will probably miss its emissions targets this year. Given that it is often described as the world’s largest producer of greenhouse gases, the news is a blow to the efforts to slow or stop the pace of global warming. According to Reuters, “China is falling short on key targets for tackling climate-warming emissions, and analysts said Beijing’s credibility in global climate talks could be at risk unless it redoubles its efforts to get back on track.” Few large nations can claim they are well ahead of the pace in reaching their climate goals.
EV Competition —Ford And China
EV Trouble —Rivian Failure
Another EV from China is about to hit the market. Unlike Europe and the US, China has several companies that are likely to be successful, given the size of the nation’s EV demand. The newest competitor is among China’s largest consumer electronics firms. Xiaomi, often among the largest smartphone companies in China by shipments, says it will start to deliver its new SU7 later this month. It will initially be sold in 59 stores in 29 cities. According to Reuters, “China’s EV sales climbed 18% in January-February, not too far off 21% growth seen for all of 2023.” The announcement comes less than a month after global smartphone leader Apple dropped its EV plans.
Self-Driving Failures
New tests of the autonomous driving features in many EVs sold in America showed the extent to which these systems operate poorly. One of 17 vehicles from nine manufacturers received a passing grade from the widely regarded Insurance Institute for Highway Safety. “Some drivers may feel that partial automation makes long drives easier, but there is little evidence it makes driving safer,” Insurance Institute president David Harkey said in a statement. As EV sales falter, self-driving or autonomous vehicles are considered the next generation of auto technology likely to bring new buyers into the market to compete with traditional gas-powered cars. It looks unlikely that this will be a success soon.
Oddly, the head of Mercedes Benz wants it to be easier for Chinese EV companies to sell cars in Europe. Some governments and industry leaders have tried to keep Chinese EVs out of markets because they could take sales primarily because of their lower prices. According to the FT, “Increased competition from China would help Europe’s carmakers produce better cars in the long run, chief executive Ola Källenius said, adding that protectionism is “going the wrong way.” Europe is not the only region that has tried to block Chinese EVs from entering the market. The US government has placed tariffs on Chinese EVs and offered buyer incentives for some non-Chinese vehicles. ‘
China’s BYD Stumbles
BYD, the world’s largest EV company, has been called a Tesla killer. There have been worries that as BYD enters the US and EU markets, it will not only hurt Tesla but also take share from less successful legacy firms, including GM and Ford. The two US-based car companies have had public failures as they have tried to convert themselves from fossil fuel manufacturing to EV market leaders. BYD has started to run into a wall. According to The Wall Street Journal. “Executives at BYD, which overtook Tesla late last year as the top global seller of EVs, said the issues included weak market demand, too-high pricing, quality control and internal tension over how quickly BYD should seek to grab market share.”
