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Empty shelves that usually stock bottled water at Sainsbury’s supermarket, Greenwich Peninsular, on September 19, 2021 in London, England.
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LONDON — Britain has been plunged into uncertainty as issues over gasoline, electricity and food have prompted warnings of “a really difficult winter” for the country.

A significant lack of truck drivers has meant deliveries of fuel and goods have fallen short.

In a bid to incentivize people to take the job, some employers have reportedly offered salaries as high as £70,000 ($95,750) a year, with joining bonuses of £2,000.

Speaking to ITV News on Thursday, Paul Scully, the U.K.’s minister for small businesses, warned that “this is going to be a really difficult winter for people.”

“We know this is going to be a challenge and that’s why we don’t underestimate the situation that we all find ourselves in,” he said. However, he told Times Radio on Friday that there was “no need for people to go out and panic buy.”

Prime Minister Boris Johnson’s spokesman said earlier this week that there was no shortage of fuel in the U.K., and people should continue to buy gas as normal. He also described the U.K.’s food supply chain as “highly resilient,” but acknowledged that some businesses in the industry were facing challenges and said the government was having meetings with representatives from the sector.

Gas station closures

As supplies of some essential goods have dwindled, reports have emerged of empty shelves and long lines of cars outside gas stations.

In a BBC interview on Friday, U.K. Transport Secretary Grant Shapps said people should continue to buy gasoline as usual, adding that military personnel would be brought in to drive trucks if it would help the situation.

Vehicles queue for fuel at a Sainsbury’s petrol station on September 24, 2021 in Weymouth, England.
Finnbarr Webster | Getty Images

Oil giant BP confirmed Friday that it had temporarily closed a handful of its U.K. gas stations due to shortages of unleaded gasoline and diesel. 

“These have been caused by some delays in the supply chain which has been impacted by the industry-wide driver shortages across the U.K., and there are many actions being taken to address the issue,” a spokesperson said via email.

“We continue to work with our haulier supplier to minimize any future disruption and to ensure efficient and effective deliveries to serve our customers. We are prioritising deliveries to motorway service areas, major trunk roads and sites with largest demand.” 

A spokesperson for ExxonMobil’s Esso told CNBC that a small number of the sites it operated in the U.K. had been impacted by fuel shortages, but that the firm was “working closely with all parties in our distribution network to optimize supplies and minimize any inconvenience to customers.”

In an emailed statement on Friday, a spokesperson for Tesco, the U.K.’s largest supermarket and an operator of 500 gas stations, said: “We have good availability of fuel, with deliveries arriving at our petrol filling stations across the U.K. every day.”

The company has only experienced temporary outages at two of its own gas stations so far. Some stations are owned by other operators but have a Tesco convenience store onsite.

Competitor Sainsbury’s said it wasn’t currently experiencing any issues with fuel supply but was monitoring the situation.

‘Serious labor shortages’

Some food supplies in Britain have also been affected by delivery disruptions. But according to Ian Wright, chief executive of the U.K.’s Food and Drink Federation, food and drink manufacturers in the country have been experiencing the “same serious labor shortages as those being seen across the food supply chain.” 

“We need Government urgently to conduct a full survey of the state of employment markets to gain an understanding of the most pressing issues,” he said in an emailed statement.

“For example, workers may have returned to their respective home countries during lockdown and not returned [to the U.K.]. Some estimates put this figure at well over a million. If fast action is not taken, the impacts we are already seeing will worsen.”

One remaining drink is seen on a near-empty shelf at an Asda supermarket in London, England on September 19, 2021.
Chris J Ratcliffe | Getty Images

In recent days, a serious carbon dioxide shortage in Britain had prompted concerns that food production would suffer a blow and dent supplies nationwide. U.S. CO2 producer CF Industries recently closed two U.K. sites that produce 60% of the country’s commercial supplies, blaming soaring wholesale gas prices

While Britain’s government struck a deal with the company to restart production, the BBC reported that the country’s food industry could end up paying five times more for the gas under the agreement.

Energy companies have also come under strain, with at least seven suppliers collapsing since August after the price of wholesale natural gas soared 250% in less than nine months. According to energy industry body OGUK, prices surged 70% between August and September alone.

The U.K. has limits on how much suppliers are able to charge consumers for energy, with price caps reviewed by the government every six months. Some are expecting the current cap to be lifted when it is reviewed by ministers in April, meaning British households will absorb some of the increased wholesale cost.

In a report on its latest monetary policy decision on Thursday, the Bank of England warned that the inflation rate was likely to climb to “slightly above” 4% this year, double its target level.

Positive growth outlook

A surge in demand following coronavirus lockdowns is seen as a factor behind these issues, as well as labor and supply shortages accentuated by Britain’s full departure from the European Union at the start of this year.

Speaking to CNBC in a phone call Friday, Yael Selfin, chief economist at KPMG U.K., said it didn’t look as though the country’s supply chaos was going to be completely resolved before the winter.

Labor shortages could take at least six months to resolve, Selfin said.

“We are a little bit vulnerable as there’s a lot of strain in the system already. Any additional shock, like what we’ve just seen with gas prices, is just going to make it harder for businesses and households to absorb,” she told CNBC.

However, Selfin’s overall outlook for the U.K. economy remained positive.

“The good news is that we are quite near to where we were prior to [the coronavirus pandemic],” she said. “We’re expecting the economy to reach its pre-Covid level by the third quarter of next year. Even with additional shocks, we may have weaker growth, but we’re still expecting 6.2 percentage point growth.”

“The main problem is that there’s very strong demand that cannot be met. So it’s bad, but it could be worse if no one wanted to buy anything,” Selfin added.

Andrew Goodwin, chief U.K. economist at Oxford Economics, also told CNBC on Friday that it would take time to resolve the delivery driver shortage.

“Training or recruiting new HGV [heavy goods vehicle] drivers isn’t something you can do overnight, it’s going to take quite a while. The industry is really going to have to work with what it has at the moment,” he said via telephone.

However, Goodwin said he too remained “reasonably optimistic” about the state of the U.K. economy.

“Households have got this big stockpile of savings to spend, but that will be starting to ebb away a bit simply because the bad news we’re having on things like inflation,” he told CNBC. “[But] certainly over the next year we should achieve much stronger GDP growth than we normally would because we’re still in the catch-up phase.”

“I suspect, we’re going to end up in a situation where the reality is a little bit disappointing to what we were expecting say three months ago,” Goodwin added. “And that’s simply because of these issues with supply shortages, both in terms of sort of constraining output and also just eating into consumers’ purchasing power.”

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‘A real wildcard’: World’s largest wealth fund issues inflation warning on hot commodity markets

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‘A real wildcard’: World’s largest wealth fund issues inflation warning on hot commodity markets

Nicolai Tangen, chief executive officer of Norges Bank Investment Management, during a news conference in Oslo, Norway, on Tuesday, Jan. 30, 2024.

Bloomberg | Bloomberg | Getty Images

The chief executive of the world’s largest wealth fund says there are many wild cards in financial markets right now, but the “big worry” for investors is what a commodities rally could mean for the inflation outlook.

Nicolai Tangen, CEO of the Norges Bank Investment Management (NBIM), told CNBC’s “Squawk Box Europe” on Tuesday that soaring energy and raw material prices could prove to be a significant headache for major central banks as they continue to fight inflation.

As of Tuesday afternoon, the S&P GSCI, a benchmark index that tracks the performance of global commodities, had jumped 9% since the start of the year, outpacing the broad S&P 500 index.

Oil and copper prices have climbed around 13%, respectively, year-to-date, while gold has repeatedly notched fresh record highs in recent months.

Asked whether he had any concerns about hot commodity markets, NBIM’s Tangen replied, “Yes, the big worry is just what that could mean for inflation right?”

He added, “So, if energy and raw material prices continue to move up, that is going to feed through to end-product prices, which are going to be higher. And that could be the real wildcard when it comes to inflation expectation.”

'Clearly a lot of froth' in the tech sector right now, says the CEO of the world’s largest wealth fund

NBIM manages the so-called Norwegian Government Pension Fund Global. The world’s largest sovereign wealth fund, which was valued at 17.7 trillion kroner ($1.6 trillion) at the end of March, was established in the 1990s to invest the surplus revenues of Norway’s oil and gas sector.

To date, the fund has put money in more than 8,800 companies in over 70 countries around the world, making it one of the largest investors across the globe.

Fewer rate cuts

European Central Bank President Christine Lagarde had also signaled the impact of commodity prices last week, in the broader context of the institutions next monetary policy steps. She said the central bank remains on course to cut rates, barring any major shocks — but stressed that the ECB would need to be “extremely attentive” to commodity price movements.

“Clearly on energy and on food, it has a direct and rapid impact,” Lagarde said.

Euro zone inflation slowed by more than expected to 2.4% March, bolstering expectations of a near-term rate cut. Market pricing for interest rate cuts, which has been highly volatile in recent weeks, now also points to the ECB appearing set to ease monetary policy before the U.S. Federal Reserve.

With most readings putting U.S. inflation at around 3% and not moving appreciably for several months, traders on Tuesday afternoon were pricing in a 13% chance of a U.S. rate cut in June, according to the CME Group’s FedWatch tool. That’s down from nearly 70% last month.

A worker supervises the furnace in the foundry at the ZiJIn Serbia Copper plant in Bor, Serbia, on Thursday, April 18, 2024. Copper prices have rallied recently, driven by an improving outlook for global manufacturing and mine disruptions.

Bloomberg | Bloomberg | Getty Images

Tangen said Norway’s wealth fund continued to believe it would be “tough” for central banks to get inflation down toward target levels, and major central banks would move differently, depending on local inflationary pressures.

Acknowledging multiple factors that now underpin inflation, Tangen said, “You have some of the geopolitical tensions, you have near-shoring, you have the climate effect on food through the world’s harvest, you’ve got some changes in trading routes and so on, and wage inflation is also higher than perhaps we had expected.”

He added, “We are expecting fewer rate cuts than the market did, of course, earlier in the year. I have to say my surprise is that the market has taken it so well. I would have expected the market to have reacted more negatively to this postponement of interest rate cuts.”

— CNBC’s Jeff Cox contributed to this report.

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Mercedes unveils 2025 electric G-Class, with 4 motors and tank turns

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Mercedes unveils 2025 electric G-Class, with 4 motors and tank turns

Mercedes unveiled its 2025 electric G-Class tonight – which it’s calling the “G580 with EQ technology” – in Beverly Hills, CA, and we’re here at the reveal with all the details.

Mercedes first surprised us with its “EQG” concept at IAA in 2021. Now it’s heading to production, but with a somewhat more plain name.

At the time we had almost no details, but now we’re learning all about the upcoming electric off-roader here in the wilds of… Beverly Hills, California.

So, maybe no heavy off-roading demonstrations are in the cards for today.

But the electric G-Class does have off-roading chops. It comes with 4 independent electric motors putting out a combined 579hp and 879 lb-ft of torque. Each motor has its own 2-speed transmission, giving access to a low-gear with 2:1 gear reduction for off-roading, and the 4 independent motors mean the car can vector torque to whichever wheels need it – even better than a locking differential.

4 wheel motors also means the G580 will be capable of what Mercedes calls G-Turn, its branding of what we’ve previously seen referred to as “tank turn” when Rivian was working on it (but later abandoned and pivoted to “front dig mode” instead). This means it will be able to do 2 full rotations on the spot by spinning the wheels on the left and right sides of the car in opposite directions at once.

However, this feature is more of a toy, just for fun. Mercedes also has a G-steering feature, which is sort of a mini-version of the G-turn, which will help you make extremely tight turns by activating torque vectoring to help make tight turns (though unlike the EQS, it doesn’t have rear-wheel steering).

The G580 can climb up to a 100% (45º) grade and hold stable on lateral slopes of up to 35º, ford 33.5 inches of water (6 inches deeper than the gas version), with 9.8 inches of ground clearance, a 32º approach angle, 30.7º departure angle and 20.3º breakover angle, with independent double wishbone suspension in the front and a solid de Dion axle in the rear.

To help you see where you’re going, the G580 has a “transparent hood” feature, which uses a camera to show what’s in front of and under the car on the internal display. This is important for off-roading, because if you’re going over a ridge or something and can’t see under the hood, the transparent hood can help you see where you’re going.

But it’s also a Mercedes, which means it’s fancy inside. And the 2025 model will be particularly fancy, as it’s only available in EDITION ONE trim with lots of exclusive interior and exterior touches. But you’ll be able to customize the car basically any way you want through Mercedes’ MANUFAKTUR car customization process.

So whether you’re conquering a real jungle or just the concrete jungle of… Rodeo Drive, or Las Vegas for the latest cryptocurrency convention, you’ll feel right at home in the Mercedes G-Class.

That fanciness is certainly needed to justify its price, which Mercedes hasn’t yet released, but said that it will be “in the ballpark” of the G63 (which starts at around $180,000).

The G580 is smaller than the the gas-powered G-Class. At 182″ it’s about 10 inches less long, but just as tall (78″) and as wide (76″). It shares the same 113.8in wheelbase as the gas model.

Otherwise, the exterior shares the boxy design of the gas version. Unlike many EVs, it doesn’t adopt a particularly curvy exterior, and still has a textured grille area.

The decision to stick with a traditional-looking grille goes hand in hand with Mercedes’ recent decision to add a “more classic grille option” to its EQS. And it turns out, if you want the G580 with the traditional G-Class grille, you can just get the standard grille, directly from the gas version, if you prefer it (but then you don’t get those cool lights).

And overall, Mercedes said it was very important to maintain the overall design of the G-Class. So it hasn’t tweaked it to make it look electric, other than some grille modifications and a couple aero bits.

Mercedes says the vehicle has “optimized aerodynamics,” which was surely a primary design intent of this vehicle that consists solely of straight lines. But actually, there have been a couple small changes, like a slightly modified A-pillar and a strip above the windshield to smooth out the front edge of the roof.

As for details on its electric drive capabilities, the aforementioned 4 motors can sprint to 60mph in an estimated 4.6 seconds, and reach a top speed of 112mph/180kmh. These aren’t the fastest numbers out there, but the car isn’t meant to be a racecar – Mercedes could have gone with a bigger battery, or more power, but that would have meant other compromises elsewhere, and Mercedes said that it was far more important to focus on the total package.

Mercedes hasn’t told us a range number yet, but with a 116kWh battery and a face that’s even flatter than its electric-triangle-on-wheels competition, we can imagine its somewhere in the mid-200s. It’s 473km on WLTP, which is 293mi, but WLTP is a little more lenient than EPA numbers.

More importantly than overall range, Mercedes says the G-Class will DC charge from 10-80% in 32 minutes, with a 200kW peak charging rate (and an 11kW AC charge rate). That maths out to an average charge rate of approximately 150kW on DC over the full session, which is pretty reasonable.

Given the car’s massive 116kWh (usable) battery, it still doesn’t charge nearly as fast as a Hyundai/Kia E-GMP car, but it’s still quite good compared to other chunky EVs (the G580 weighs ~6,800lbs/3,805kg, with a GVWR of exactly 3,500kg – the maximum allowed by German law).

The G580 comes with 5 regenerative braking settings, including Mercedes “D-auto” setting, where the car intelligently decides to apply regenerative braking based on traffic conditions (we recently tried this setting on the eSprinter, but struggled to find a situation where it would be useful). Regen activates off-throttle, suggesting the possibility of one-pedal driving, but we haven’t had a chance to try it out and see if its max 217kW regen braking capacity is really strong enough to avoid most brake pedal usage.

For a final cool electric touch, the car has done something new with its iconic rear end. In place of the spare tire carrier that typically adorns the backside of the G-Class, there’s an optional compartment which can be used to store charging cables or the like. You can still opt for the spare tire, too, but I really like the charging box.

Electrek’s Take

Look, this is a G-Class. It’s a statement car, it’s an image car. If you like it, you know that you like it. For the majority of drivers, its off-road capabilities really won’t matter all that much.

What matters here is whether it stays true to the G-Class, and as far as we can tell, it does. It looks like a G-Class and it feels like a G-Class. The doors thunk closed like a G-Class.

And an important note – Mercedes said, “if the G can go electric, any car can go electric.” We, of course, agree. This is a car that has been defined in many ways by excess, with the gas version getting just 14 miles per gallon. And yet here it is, in electric trim, with a huge battery (but not out of line with other huge EVs), beating the gas version’s performance both on- and off-road.

As for the name – while “G580 with EQ technology” is a bit of a mouthful, I actually like the simple designation “G580.” Surely people will refer to it as “the electric G-Class” or the like, but by giving the car a regular model name, Mercedes is saying that it’s treating the car like a regular car.

Instead of siloing EVs into their own sub-brand, Mercedes is saying that this is a G-Class, and if you want a G-Class, this is a G-Class. Mercedes was clear that this is not a rational vehicle, that its customers don’t need a G-Class, they want a G-Class.

So there you go. If you want a G-Class, this is a G-Class.

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Daily EV Recap: Tesla Self-Driving Homicide

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Daily EV Recap: Tesla Self-Driving Homicide

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Daily EV Recap: Tesla Self-Driving Homicide

Listen to a recap of the top stories of the day from Electrek. Quick Charge is now available on Apple PodcastsSpotifyTuneIn and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded Monday through Thursday and again on Saturday. Subscribe to our podcast in Apple Podcast or your favorite podcast player to guarantee new episodes are delivered as soon as they’re available.

Stories we discuss in this episode (with links):

Tesla driver arrested for homicide after running over motorcyclist on Autopilot

Tesla officially unveils new Model 3 Performance with 0-60 mph in 2.9 sec

Arres Prevent robot uses advanced AI to fight potholes

Allye Energy wants to power your job site with used Land Rover batteries

Tesla skirts Austin’s environmental rules at Texas gigafactory

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Drop us a line at tips@electrek.co. You can also rate us in Apple Podcasts or recommend us in Overcast to help more people discover the show!

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Daily EV Recap: Tesla Self-Driving Homicide

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