Hyundai will stop selling any cars with ICE engines in them, including plug-in hybrids, in Norway starting 2023 – one day from now.
Norway has been leading the charge in vehicle electrification for some time, well ahead of the rest of the world in EV market share percentage. Virtually all vehicles in the country have a plug nowadays, with ICE-only vehicles only holding on to a meager few percent of the market.
The decline of gasoline-powered vehicles has been so drastic that despite Norway’s goal to end gas vehicle sales by 2025, the country is already teetering on meeting that goal several years early. There is still a trickle of cars being sold without plugs in them, and we expect that to continue for some time, but for practical purposes, Norway is hovering very close to its goal.
Last year, 64.5% of cars sold in Norway were all-electric, up 10% from the previous year, and this year those numbers are up even further. We’ll get a final number in a couple days, but BEV market share should be just above 80%, with PHEV market share at 10% or so, and petrol- and diesel-only vehicles at 4-5% each.
Notably, PHEV market share has been dropping significantly this year compared to last year, while non-plug cars are holding relatively steady in the high single digit percentages.
So, most manufacturers are still selling cars with engines in them in the country. They may be selling in very small amounts, but you can still get something with an engine in it if you need a niche application. That said, even Svalbard Post has gone all-electric with its medium-duty postal vehicles, so there aren’t a lot of niches left that EVs won’t serve.
And, engine availability won’t last for long if Hyundai has something to say about it. The company stopped selling cars without plugs on them starting 2020 – it would still sell plug-in hybrids, but no petrol-only vehicles. Now, it’s ending even PHEV sales, and transitioning to only fully electric cars.
We have great faith in our model portfolio, and now that we have launched the all-new IONIQ 6, the time has come to sell only all-electric cars in the Norwegian market. IONIQ 5 and KONA Electric have long since taken positions as some of the most popular cars in the market, and we are confident that our pure electric cars will bring us continued success into the future.
Thomas Rosvold, Managing Director, Hyundai Motor Norway
These plug-in hybrids represented 7% of Hyundai’s sales in 2022, and electric cars have consistently accounted for over 90% of Hyundai’s Norway sales in recent years.
So, leaving behind those last few percent of hybrids won’t make an enormous difference to the bottom line and will help the company focus its messaging, sales, and logistics around what is obviously making up the bulk of its sales in the nation.
According to Hyundai, its Ioniq 5 is the fifth best-selling car in Norway this year, and Hyundai is the brand that Norwegians most associate with electrification – at least, if you don’t count electric-only startups like Tesla, which just set an all-time Norwegian sales record with the Model Y.
This is the first market where Hyundai will sell only all-electric cars. Hyundai isn’t the first company to announce a similar move, but it’s one of few. Volvo made a similar announcement at the beginning of this year, stating that it would shift to only BEV and PHEV sales in Norway by 2023. VW says it will only sell BEV cars, with no plug-in hybrids, in Norway starting in 2024.
This puts Hyundai ahead of both of these companies in terms of commitment, either in scope or in timeline.
Electrek’s Take
This is the first traditional ICE manufacturer that we can think of that has stopped sales of all vehicles with an internal combustion engine in them. There are of course startups like Tesla and Rivian, and sub-brands like Polestar, but it’s quite a statement for an entire company to stop selling engines. If you can remind us of another (we don’t get every Norwegian press release), let us know in the comments.
Yes, it’s just in one sales territory, and the writing was on the wall anyway since it’s clear that BEVs have taken over the country, but leaving behind engines is still a big step for an auto manufacturer, especially considering that most automotive IP has been outsourced to suppliers and engines are one of the few car parts that manufacturers do themselves anymore.
But the main point that I like to highlight with Norway is that the country set and met its goals early. Despite having the earliest all-electric goal in the world, 2025, the country seems to be meeting it pretty handily. That’s why when other places set unambitious goals like 2035 (or even later), on the one hand I wonder why they couldn’t have set an earlier goal, but on the other hand, I remind myself that there is a reasonable chance those goals are met earlier than expected.
Incidentally, Norway’s current 80%+ BEV share is just about enough to meet California’s 2035 gas car ban, which will actually allow 20% of vehicles to be plug-in hybrids. It won’t allow any non-electrified vehicles, but considering Norway is already at 80% EV, hopefully California will be able to get there soon enough.
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The world’s largest direct-membership organization for shipowners, charterers, shipbrokers, and agents is warning that while it is still unclear how Iran will respond to Saturday’s U.S. attack on Iran’s nuclear facilities, the threat to commercial shipping in the waters around the Arabian Peninsula has risen.
“The Houthi threat against shipping in the Red Sea and Gulf of Aden has also gone up,” said Jakob Larsen, head of security at Bimco, which represents global shipowners. “The Houthis now threaten merchant ships with affiliation to Israel or the U.S., but attacks against merchant ships with other affiliations cannot be ruled out.”
Larsen said it is expected that U.S. warships and merchant ships affiliated with Israel or the U.S. would be the preferred targets for the Iranians.
In an email to CNBC, a Hapag Lloyd spokesperson tells CNBC, “We currently are still crossing the Street of Hormuz. Alert level is high, though, and things might change by the hour.”
Integrated logistics provider Maersk announced Friday it is temporarily suspending port calls to Israel’s largest container port, Haifa. The $4.2 billion cargo facility at Haifa, owned by Adani Group, has been a target of Iranian missiles but has not suffered any damage. Last week, Jugeshinder “Robbie” Singh, CFO of the Adani, debunked misinformation posted that the port was on fire from a strike on Iranian social media.
Bimco’s Larsen warned Iran could attempt a wider disruption of commercial shipping in the Strait of Hormuz through attacks on merchant ships. Antiship missiles or drones of both airborne and surface types could be used in these attacks, he said.
“The laying of sea mines would constitute another dangerous development, but Iran’s intent to do so is questionable due to the risk to Iran-affiliated commercial ships and the risk of environmental disaster in case a ship is damaged,” said Larsen.
The Strait of Hormuz, which connects the Persian Gulf to the Arabian Sea, is recognized as one of the world’s most important oil chokepoints. The inability of oil to traverse through the Strait of Hormuz, even temporarily, can ratchet up global energy prices, raise shipping costs and create significant supply delays. In 2023, oil flows through the waterway averaged 20.9 million barrels per day, according to the U.S. Energy Information Administration, accounting for about 20% of global petroleum liquids consumption.
“Given the Iranian threat to U.S. military bases in the region, availability of warships for protection of commercial shipping is probably limited, especially for commercial ships with no affiliation to the U.S. or Israel,” Larsen said.
The Strait of Hormuz handles less than 4% of global container trade but the ports of Jebel Ali and Khor Fakkan are critical intermediary points for global shipping networks in the region.
The majority of cargo volumes from those ports are destined for Dubai, which has become a hub for the movement of freight with feeder services in the Persian Gulf, South Asia, and East Africa.
The conflict in the region has also sparked ocean freight rates to surge from Shanghai to Jebel Ali, the Arabian Gulf’s largest port.
Freight intelligence firm Xeneta said average spot rates have increased 55% month-over-month, prior to the conflict escalation between Israel and Iran. Rates are now $2,761 per forty-foot equivalent unit (FEU), a standard unit for measuring the capacity of container ships and volume of cargo.
On the tanker side, spot rates for very large crude carrier (VLCC) voyages between the Middle East and China are up 154% week-over-week. Rates on the long-range tankers’ (LR2) Middle East-Japan trade route are up 148% and Middle East-Japan very large gas carrier (VLGC) rates are up 33%.
The reason behind the increase in rates includes the added expenses on security measures, higher bunker fuel prices, and fuel costs as vessels use more fuel due to faster sailing through high-risk areas.
Marsh McLennan, the world’s largest marine insurance broker, noted hull and machinery insurance rates for vessels transiting the Strait of Hormuz have increased by more than 60%.
In light of the latest wave of defense measures, Bimco is encouraging shipowners to review their security risk assessments and carefully consider mitigation measures.
“Merchant ships in the area should consider reducing their exposure to threats from Iran, for example, by routing away from the Iranian coast,” said Larsen. “We also recommend that ships maintain close contact to naval forces in the area through UK Maritime Trade Operations, maintain strong vigilance and increased lookout, report suspicious sightings and events to UKMTO, and increase the resilience of ships to absorb damage by ensuring watertight integrity and readiness of damage control organization including firefighting capability.”
“Bimco never directly recommends shipowners to completely stay away from a conflict area. Such a decision should be taken by the shipowner, taking into consideration all relevant factors of the security risk assessment, including, for example, the threat, the ship’s vulnerabilities, and the risk acceptance level of seafarers, the shipowner, and the cargo owner.”
Oshkosh USPS electric mail carrier (Source: Oshkosh)
The Senate version of the repubilcans’ tax bill won’t just add trillions of dollars to the deficit through a massive giveaway to wealthy elites, it will also take the US Postal Service’s awesome new EVs and sell them off for pennies on the dollar, wasting money simply out of spite for vehicles that were already cleaning your air and making your community safer.
The Postal Service has used the same Grumman LLV vehicles for decades, produced from 1986-1994. So, some of these trucks are nearly 40 years old, and all of them are at least 30 years old.
The vehicles are showing their age – they get poor mileage, they break down often (or catch fire, as about 100 of the old gas guzzlers did last year), they emit significant pollution, and they have poor ergonomics.
So, in 2015, the USPS started the process of finding a replacement.
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After many bids and back-and-forth (including startups going out of business), the USPS, led by Postmaster Louis DeJoy, picked Oshkosh’s “Next Generation Delivery Vehicle” (NGDV) as the next postal vehicle.
The vehicle has a goofy look to it, but it’s a goofy look for a reason.
The large window gives exceptional visibility, meaning the kids and pets that are likely to occupy residential areas are easier to see, and thus easier for drivers to avoid.
And the tall roof makes it easier for drivers to enter and exit, reducing strain on their bodies which means lower labor costs overall – less injury, drivers potentially being able to stay in their jobs longer, and so on.
But that’s just talking about the look of the vehicle – there are even more beneficial features, like much more cargo space, driver assistance safety features (around-view cameras, blind spot monitors and collision sensors), and air conditioning, something the original LLVs lacked (and which is only becoming more necessary as the planet heats up).
As for powertrain, the NGDV is available in both gas and electric options, with the gas version getting a paltry 8.6mpg (similar to the old LLVs), but the electric version being naturally much more efficient.
Electrification is a perfect choice for most delivery vehicles. These vehicles do set daily routes with lots of starting and stopping, in neighborhoods where people live and breathe, and return back to the same place every night. It’s an ideal application for EVs, for the vast majority of rotues.
Higher efficiency electric drive means money savings on fuel and maintenance for most routes. Overall, a highly electrified fleet was estimated to save taxpayers $4.3 billion over its lifetime.
But perhaps the most obvious benefit of electric mail trucks is the lack of pollution in the places where people spend most of their time: at home. (I don’t know about you, but my mail carrier’s broken truck stinks up the place every day, forcing me to close the windows as it fails to start half the time – and I’m pretty sure this is a common experience)
Despite these benefits, at first, USPS planned to buy only 10% EVs, with the remainder being gas. But after that announcement, several entities (including Electrek) pointed out that even by USPS’ uncharitable calculations, EVs would save money for the vast majority of routes (and that’s not considering health and environmental benefits).
Thankfully, reason prevailed over time, and the USPS gradually increased its plan such that it eventually said it would buy only electric trucks after 2026, with relatively few gas trucks acquired before then for the few routes that electric isn’t suitable for. It’s also supplementing those purchases with some off-the-shelf Ford E-Transits to function as delivery vehicles, with fewer custom features but an easier rollout as E-Transits are readily available.
The NGDV has suffered delays, but as the truck has finally started to roll out, it’s been enormously popular. When the truck started use last year in Atlanta, drivers immediately loved it. They loved the new features, better safety, and less stress on their bodies.
Republicans move to undo these improvements, wasting taxpayer dollars
And so, of course, republicans are now threatening this unequivocally good thing in a way that’s only going to cost taxpayers more money and ensure that your mail costs, the pollution you breathe in your home and the danger to your neighborhood all increase.
As reported by the Washington Post, Senate republicans are considering a version of the tax bill that would auction off these vehicles, at pennies on the dollar, seemingly simply out of spite for the program.
As usual, republican justifications for the billions of dollars in waste they’re proposing don’t stand up to even the slightest amount of scrutiny.
Kentucky Senator Rand Paul stated that the plan “aims to cut unnecessary costs and focus USPS on delivering mail and not achieving the environmental initiatives pushed by the Biden Administration.”
But Paul ought to know this is false, because he’s part of the Senate, the body that approved these vehicles in the first place in 2022 (and, if you remember your high school civics class as Paul apparently does not, the Senate is not part of the “Biden Administration”). Nor is the USPS directly part of any presidential administration, since it is an independent federal agency, and during the bidding process was headed by Louis DeJoy, who was appointed during one Mr. Donald Trump’s first stint squatting in the White House.
Paul should also know that the bidding process started in 2015, and thus that the majority of it occurred while nobody named Biden was in the White House in the first place.
He also ought to know that most of that money is already spent, and selling off items the USPS already owns for pennies on the dollar doesn’t “save” anyone any money. Neither does having to buy all new gas vehicles, with higher fueling and maintenance costs, to replace them – this is the very definition of “unnecessary costs.”
Worse, falling back to the old LLVs and restarting the bidding process for their replacement would take more time and cause more waste. And in the interim we’d be stuck with these “obsolete” vehicles which, as covered above, are inefficient, unsafe, lack features, and routinely catch fire. All of this gets in the way of the focus on delivering mail.
So, Paul is either lying or stupid, but given the letter after his name, we’re pretty sure it’s both.
The USPS rightly pointed out what a stupid idea this is, stating “The funds realized by auctioning the vehicles and infrastructure would be negligible. Much of infrastructure is literally buried under parking lots, and there is no market for used charging equipment” (hmm, tearing out charging equipment for no benefit at all? where have we heard that before…). It said this action “will seriously cripple our ability to replace an aging and obsolete delivery fleet.”
It further urged the Senate “to pause and consider the substantial harm this proposal would cause to the Postal Service and our customers, your constituents.”
But, given the republican party’s current direction, maybe that exhortation would backfire. Harm seems to be precisely what they want, as reflected in everythingthey’redoingthesedays.
If you do happen to be one of those constituents, particularly in a republican state, it might be worth giving your Senator a call and asking them to stop wasting your money and raising your mail costs by selling off money-saving vehicles that promise to clean the air of your community. Here’s where you can find their contact info.
Among republicans’ proposed cuts is the rooftop solar credit. That means you could have only until the end of this year to install rooftop solar on your home, before republicans raise the cost of doing so by an average of ~$10,000. So if you want to go solar, get started now, because these things take time and the system needs to be active before you file for the credit.
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Maxar Technologies, a U.S. defense contractor, released satellite imagery on Sunday showing activity at Iran’s Fordo nuclear facility prior to U.S. air strikes.
The images of the secretive plant, which were collected on Thursday and Friday, depict truck and vehicle activity near to the entrance of the underground military complex.
Located 300 feet under a mountain and reinforced by layers of concrete, Iran’s fortress-like Fordo facility is situated to the south of Iran’s capital of Tehran. It is the country’s most hardened and advanced nuclear site.
Alongside nuclear facilities at Natanz and Isfahan, Fordo was the target of U.S. air strikes on Saturday. Trump described the incursion as a “spectacular military success” that “completely obliterated” Iran’s key enrichment facilities.
The U.S. president’s claim about the result of the operation could not be independently confirmed. The International Atomic Energy Agency and Iran’s nuclear safety center had reported no radiation or contamination at the nuclear centers following the attacks, as of Sunday morning London time.
Maxar satellite imagery of Fordo fuel enrichment facility.