Tag: Politicians

South Korean EV Battery Makers Settle U.S. Squabble

SK Innovation Georgia plant exterior

 

SK Innovation paid $1.8 billion to LG Energy as part of a settlement so it can produce EV batteries at this soon-to-be-complete plant in Georgia.

South Korean battery makers LG Energy Solution and SK Innovation finally settled a two-year old dispute about intellectual property that had the potential to undermine efforts by Ford Motor Co. and Volkswagen AG to put electric vehicles on the road.

The agreement came as the Sunday deadline for President Joe Biden to become involved loomed over the process. In a joint statement released this past weekend, the sides said they agreed to settle all legal disputes relating to EV batteries in the United States and South Korea.

As part of the settlement, SK agreed to pay the equivalent of $1.8 billion in a lump sum and royalties. In return, SK can move forward with the operations of a new plant in Georgia that is expected to supply batteries for EVs built by Ford and Volkswagen.

Production at the Georgia plant was threatened by the litigation, which had grown to include the U.S. International Trade Commission and the White House as well as regulators in South Korea.

Ford relieved by settlement

Ford F-150

 

Ford was counting on SK Innovation to produce EV batteries for its electrified F-150.

“We are pleased that SK Innovation and LG Energy Solution have settled their differences. This allows us to focus on delivering a range of Ford world-class battery electric vehicles for our retail and fleet customers, while also supporting American workers, the economy and our shared goal of protecting the planet,” Ford said in a statement released after the settlement was announced in South Korea.

Back in February, U.S. ITC sided LG Energy in a trade secrets case but permitted SK Innovation to import components for domestic production of lithium-ion batteries for Ford Motor Co’s EV F-150 program for up to four years, and for Volkswagen of America’s electric vehicle line for two years.

As a result of the settlement announced over the weekend, both sides have agreed to withdraw all pending legal disputes in United States and Korea and agreed to a “10-year non-assertion,” essentially agreeing not to sue each other for a decade.

Jong Hyun Kim, CEO and president of LG Energy Solution and Jun Kim, CEO and resident of SK Innovation released a joint statement announcing the settlement and agreed to focus on the larger goals set forth by the Biden administration.

VW ID.4 driving

 

The Volkswagen ID.4, which is the brand’s first EV in the U.S., will reportedly use SK Innovation batteries.

“This settlement demonstrates LG Energy Solution’s willingness to protect and maintain a fair and competitive climate within the EV industry. This agreement also reinforces the significance of our intellectual property acquired over the past 30 years,” said LG Energy’s Jong Hyun Kim.

Help from Biden sought in dispute

The settlement in South Korea also eliminates the need for even more direct intervention by the Biden administration. Georgia Governor Brian Kemp pleaded with the administration to overrule the ITC’s initial ruling.

Kemp said the ITC ruling threated 2,600 jobs at the SK plant and would be a major blow to Georgia’s economy, which already reeling from a dispute over new law that places new restrictions on voting by Georgia residents and gives the legislature the right to set aside election results after votes are counted.


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Carmakers Withdraw from Trump Lawsuit Against California

Several automakers withdrew from the lawsuit by the Trump administration to revoke California’s ability to make its own emissions and fuel economy rules.

The ink was not even dry on Pete Buttigieg’s confirmation as Secretary of Transportation by the U.S. Senate when several automakers announced they were “withdrawing” from the lawsuit filed by the Trump administration to roll back the State of California’s right to set its own emission and fuel economy standards.

Toyota, Fiat Chrysler and Subaru joined General Motors, which pulled its support for the suit last November, in dumping the effort. Previously sided with Trump administration’s effort, encapsulated in federal lawsuit filed in the fall of 2019 to shut down California’s role in setting the nation’s automotive policy.

The automakers insisted they were not trying to punish California for its aggressive stance on climate change but to campaign for “one national standard” that could be applied across the United States.

However, the world has changed dramatically since the previous administration initially filed suit with the support of GM, FCA and Toyota as well as Hyundai, Kia, Mazda and the National Auto Dealers Association.

(GM throws support behind California in emissions court battle with Trump.)

GM pulled its support for the lawsuit against California in late November.

For one thing, after a boisterous campaign that led to record voter turnout, Trump is no longer president and California has expanded its fight against climate change by moving aggressively to foreclose the sale of new vehicles with internal combustion engines throughout the state by 2035.

California Governor Gavin Newsome tweeted his support for the move, offering his thanks for “dropping your climate-denying, air-polluting, Trump-era lawsuit against CA.”

He added, “Good start. Now it’s time to join forward-looking carmakers in the CA framework to protect our air and planet.” Other automakers, including Ford, BMW, Honda and more forged a new deal with the state on mandates that were tougher than the Trump standard, but less stringent than the Obama administration’s benchmarks.

Edmunds, the internet-based car buying service, is predicting sales of electric vehicles will set a record in 2021 and as of last week, General Motors is saying it plans to exit the business of selling cars with combustion engines by 2035 and become carbon neutral by 2040.

The Coalition for Sustainable Automotive Regulation, which also sided with the Trump administration in its battle against California, reiterated its support for having just one nationwide emissions standard, but said it was leaving the litigation “in a gesture of good faith,” towards the Biden administration.

Toyota was joined by several automakers in the move to pull out of the legal battle with California.

In his first full day of office on Jan. 21, the Biden administration had asked to “pause” the litigation around the California standards.

“In a gesture of good faith and to find a constructive path forward, the CSAR has decided to withdraw from this lawsuit in order to unify the auto industry behind a single national program, with ambitious, achievable standards,” the CSAR said in a statement.

CSAR’s move follows the lead of General Motors, which was also initially on the side of the Trump administration but exited in November following Biden’s election victory, according to The Hill, an online publication that follows development on Capitol Hill.

(California moves to block Trump fuel efficiency standard.)

The list of CSAR members include Kia, Mazda, Mitsubishi and Subaru, according to the organization’s website.

And it comes following the Biden administration’s decision ask the court to pause the litigation, after it identified the former Trump administration’s rule as one it would seek to review and potentially reverse course on.

“Abeyance will further the Court’s interests in avoiding unnecessary adjudication, support the integrity of the administrative process, and ensure due respect for the prerogative of the executive branch to reconsider the policy decisions of a prior Administration,” the administration said in court.

It is also seeking to hit pause on other rules including the prior administration’s methane regulations.

Meanwhile, Buttigieg, the former mayor South Bend, Indiana, who has been tapped by Biden to serve as Secretary of Transportation, and to help lead the new administration’s fight to curb climate change, was confirmed by the U.S. Senate.

The automakers’ decision to withdraw from the lawsuit makes it easier for Buttigieg to discuss a new round of initiatives for the industry and bring California’s interests into the discussion. Relations between Washington and California had been strained during the Trump era.

California, however, has a well-established role in setting automotive policy on issues relating to air quality since the late 1940s and early 1950s when the collision between Southern California’s unique environment, vibrant automotive culture and explosive economic growth had led to the creation of a smog layer that threatened the health of young children and older residents.

The choking smog led to a series of laws, regulations and subsequently court decision that gave the state of California’s statement government, which is now in the hands of Democrats beholden to environmental groups rather than the oil industry, the right to control air quality.

(Trump confirms mileage standards cut, elimination of California clean air waiver.)

In 2007, the U.S. Supreme Court in Massachusetts vs EPA, gave states the authority to curb emissions of greenhouse gasses, which contribute to climate change.


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Automakers, Manufacturing Trade Group React in Horror to Washington Insurrection

Trump supporters staged an insurrection at the Capitol Building in Washington, D.C.

The rioting that swept Washington, D.C. Wednesday triggered by President Donald Trump’s false and disproven claims of election fraud triggered a nationwide backlash with some of the most severe responses coming from groups that traditionally steer clear of electoral politics.

One of the harshest statements came from the National Association of Manufacturers which not only described the insurrection as an attack on “the vision of America,” but also called for the use of the 25th Amendment, which could lead to an immediate removal of Trump from the role of president.

“This is not the vision of America that manufacturers believe in and work so hard to defend,” said Jay Timmons, NAM’s president and CEO. “We are trying to rebuild an economy and save and rebuild lives. But none of that will matter if our leaders refuse to fend off this attack on America and our democracy — because our very system of government, which underpins our very way of life, will crumble.”

(Trump attacks GM, demands it move Chinese manufacturing operations “back to America.”)

The trade group’s statement also stressed that the rioting – which culminated in a mob takeover of the U.S. Capitol – “is not law and order (but) mob rule.” And it called Vice President Mike Pence to “seriously consider” calling on the Trump Cabinet “to invoke the 25th Amendment to preserve democracy.”

Adopted Feb. 10, 1967, the 25th Amendment covers issues related to presidential succession and incapacity. Among other things, it allows for a sitting president to be removed, either temporarily or permanently if deemed unable or unwilling to perform the duties of the office.

But it requires the vice president and a “majority of either the principal officers of the executive departments or of such other body as Congress may by law provide,” to declare in writing the president is “unable to discharge the powers and duties of his office.”

Were Section 4 of the amendment invoked, Vice President Pence would immediately become president, though only until President-elect Joe Biden were to be sworn in on Jan. 20.

In conversations with TheDetroitBureau.com, officials with several automakers expressed similar concerns about what could happen should Trump remain in office during the next two weeks, escalating his efforts to reverse the results of the November election. On Tuesday afternoon, the president told his followers gathered in Washington, including members of the white supremacist group Proud Boys, to go home. But he also praised them and further escalated his claims that the election was stolen.

Shortly afterwards, Twitter announced a 12-hour ban on posts by the president.

A Trump supporter carrying a Confederate battle flag wanders the Capitol Building. (Photo courtesy NBC News.)

(As Biden’s new Transportation chief, “Mayor Pete” will face massive list of automotive challenges.)

With so much at risk, automakers tend to avoid direct involvement in politics. Ford, General Motors and Toyota have all come in for beatings from the Twitter-loving Trump since he launched his campaign and captured the White House more than five years ago. But all three also, as an official with one company said on background, “felt it necessary to speak out” in light of the Wednesday riots.

“The peaceful transition of power is a cornerstone of American democracy, and regardless of politics the violence at the U.S. Capitol does not reflect who we are as a nation. It’s imperative that we come together as a country and reinforce the values and ideals that unite us,” said GM Chairman and CEO Mary Barra in a statement to TheDetroitBureau.com.

With similar sentiments, Toyota said in a statement requested by TheDetroitBureau.com: “Lawlessness has no place in our society. Toyota urges everyone to demonstrate restraint and patience, and allow for the peaceful transfer of power that is the hallmark of our country. Tomorrow is a brighter day and democracy will, and always has, prevailed.”

The timing of Wednesday’s terrorist assault on the Capitol was no coincidence. It was intentionally planned to disrupt the Constitutionally mandated counting of the Electoral College votes that would complete the presidential election process and officially name Joe Biden the incoming president.

“On a day which should be a reaffirmation of one of the most important democratic ideals, the peaceful transition of power stemming from a free and fair election, we saw actions that are the antithesis of those ideals. Beyond the physical damage to our Capitol and the attacks on public servants, these were destructive acts against our shared principles and beliefs,” Ford Chairman Bill Ford and CEO Jim Farley said in a joint statement sent to TheDetroitBureau.com.

“There are no easy lessons to learn from this moment. It is clear that there will be more difficult days ahead as our country tries to overcome the things that challenge and divide us: a public health crisis, the lack of faith in public institutions, and a fractured sense of what we value as Americans.

“These problems can and must be resolved,” the two executives stressed.

(Trump attacks Ford after it agrees to a clean car deal with California.)

After a roughly eight-hour delay, during which rioters ransacked the offices of some lawmakers, including House Speaker Nancy Pelosi, the counting of the Electoral College votes resumed.

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Japan Joins Growing List of Countries Set to Ban Sales of Gas-Powered Vehicles

Japanese Prime Minister Yoshihide Suga supports the move to ban the sale of non-electric new vehicles staring in 2035.

Despite strong pushback from the country’s largest automaker, Japan has announced plans to halt the sale of vehicles relying solely on internal combustion engines after 2035.

The move means the Asian nation will join a growing list of countries planning to phase out vehicles powered by gas or diesel, including both the United Kingdom and Norway. A number of other countries, including France and Germany, are considering similar bans.

Vehicles with internal combustion engines won’t be banned entirely. Automakers will still be able to market hybrids in Japan, regulators ruled. Even so, the plan released on Christmas Day was a significant victory for Japanese environmentalists considering it was strongly opposed by key industry leaders, including Toyota President Akio Toyoda who warned earlier this month that a broad shift to electric vehicles could cause the auto industry’s traditional business model “to collapse.”

(Toyota boss Akio Toyoda remains EV skeptic.)

Akio Toyoda, Toyota’s top officer, is against the ban.

As the head of Japan’s largest and most powerful company – and in his role as the head of the Japan Automobile Manufacturers Association – Toyoda hoped to convince regulators to back off on the proposed ban. But it had widespread backing from other quarters, including Japan’s new Prime Minister Yoshihide Suga.

In October, shortly after assuming his post, Suga had pledged to cut Japan’s carbon dioxide emissions to net zero by 2050 while indicating he supported a shift to battery-powered vehicles.

Global sales of electrified vehicles remain modest, running in single digits in all but a handful of markets, even when including hybrids, PHEVs and fuel-cell vehicles, as well as pure battery-electric vehicles. But demand is expected to increase sharply as key obstacles, such as range, cost and public charging, are addressed. It also will help that scores of new BEVs are scheduled to go into production in the coming years, proponents say.

While Japanese automakers were pioneers with their early push to bring hybrids to market, “Japan is very far behind” in terms of developing more advanced products relying solely on battery power, Masayoshi Arai, an official with the country’s

Nissan is one of a few Japanese automakers dedicating resources to a move to EVs.

Ministry of Economy, Trade and Industry, said last week.

Toyota only recently introduced a BEV model in Europe, though it has announced plans to add two more – one through the flagship Toyota division, a second under the Lexus badge. It also this month revealed an all-electric microcar targeting the Japanese home market. Only the Nissan and Mitsubishi brands, among Japanese automakers, have committed significant resources to the development of pure battery-electric vehicles and, even then, they have fallen behind key foreign rivals in terms of bringing new products to market.

(Toyota hopes to boost interest in hydrogen tech with second-generation Mirai.)

Toyota officials have, throughout the years, pointed to numerous concerns about BEVs, including their cost, limited range and other obstacles to widespread consumer acceptance. For his part, company chief Toyoda said this month that he feared a switch to all-electric models would seriously disrupt the classic automotive industry business model. He also raised questions about whether Japan’s electric grid could supply the needed energy — and, if it did add the generating capacity, he warned, that could actually increase the country’s reliance on fossil fuels.

With the debut of the 2021 Mirai fuel-cell vehicle, Toyota’s hoping to spur interest in the tech again.

For his part, Japan’s new prime minister is downplaying such concerns and said that efforts to address greenhouse gas production “should be tackled as a strategy for growth, not as a limitation on growth.”

Downplaying the need for new coal or natural gas plants, the plan released by the Japanese government would add up to 45 gigawatts of new offshore wind generating capacity by 2040.

With the Christmas Day announcement, Japan becomes the second member of the Group of Seven, or G7, to lay out specific plans to ban non-electrified vehicles.

The UK originally had planned to do so by 2040 but now has pushed that target date up to 2030. Like Japan, its ban will continue to permit the sale of hybrids – but only through 2035, at which point only pure, zero-emissions vehicles will be able to be sold in Great Britain. That will include both BEVs and hydrogen fuel-cell vehicles.

Despite its reticence about EVs, Toyota rolled out a new battery-electric car Dec. 25: the C+pod.

A handful of other countries, including Norway, have also laid out ZEV transition plans. So have some states and regions – including California and the Canadian province of British Columbia. A number of cities, such as London, Paris, Berlin and Mexico City, plan to bar vehicles not running in zero-emissions mode, meanwhile. China, meanwhile, has laid out plans to have “New Energy Vehicles,” plug-based models, reach 20% of the market by 2025. It is considering a total ban at a later date.

(Britain to ban sale of all new gas and diesel cars by 2030.)

With most of the country’s automakers reluctant to bring plug-based models to market, demand has grown far more slowly than in many other major regions. The Ministry of Economy, Industry and Trade noted that consumers purchased only 6,000 PHEVs and BEVs during the third quarter of 2020. By comparison, demand tripled in Europe to 270,000 – all-electric models accounting for roughly three-quarters of Norwegian sales. China, meanwhile, is expected to again top 1 million plug-based models for all of 2020.