Should we all embrace Japan’s kei car model – small, cheap, but not exactly safe?
A new breed of electric vehicles is drawing inspiration from Japanese kei cars, tiny cubes-on-wheels that are highway-legal but not likely to pass muster with US or EU safety standards. But what if we loosened up those standards to help lower prices, enabling broader adoption of EVs to people who don’t have 30 grand or more to spend on a car? That is, at least, one of the ideas that French automaker Renault’s head Luca de Meo has put on the table.
Recently de Meo, who also heads up the ACEA, the European Automobile Manufacturers’ Association, took to the stage at a press conference to argue against the instability of European legislation on their industry. He says that they are now facing eight or nine European regulations coming into force each year until 2030, with some of them being contradictory. An incredible amount of time, energy, and money is monopolized to work to meet the demands, with de Meo saying that 20% of the company’s engineers are “almost entirely” dedicated to making sure products developed in-house comply with the standards. These standards encompass everything from safety to pollution levels to visibility and infotainment systems, among other things.
Basically, he argues that Europe needs to adopt a less fluctuating and intense framework to keep the playing field level for European automakers to stay in the game and make some cheaper cars. If Europe simplifies the rules, consumers can enjoy a 40% reduction in car prices by 2027-2028, he argues.
It’s a very tempting proposition, especially when you factor in his idea of creating a whole new category equivalent to kei cars in Europe (we’ll include the US here as a thought experiment) – like in Japan, these cars too would have limits in terms of their size, weight, and power, all in exchange for less stringent safety requirements while benefiting from tax breaks. Picture a tiny car with a tiny battery priced as low as $10,000 – in terms of size, it’s not quite a Citroën Ami but not a Tesla Model 3 either.
De Meo has officially stated that he has drawn inspiration from kei cars for an upcoming crop of EVs coming out of Ampere, Renault’s EV subsidiary, especially the new electric Twingo. While inspired by the first-generation hatchback from the ‘90s, the new Twingo has adopted some kei aspects, such as a slight cube-style shape maximizing interior space in a reduced size with five doors. Renault hasn’t yet released any specifications on the car but promises an efficiency of up to 6.2 miles per kWh, with a price set for under €20,000, or around $22,000. But still, the new Twingo needs to comply to European standards, especially in terms of crash testing (and we might see that price crawl up before it becomes available). That’s the main reason we don’t see Japanese models outside of Japan, such as its best-selling EV kei car, the Sakura.
Electrek’s Take
There are a ton of reasons why this makes sense – just in practical terms of having better access to cheap, light cars that are easy to drive and park. People want small, lightweight cars for short commuter trips or city driving, and lighter EVs would take some pressure off roads as well. And if you’re worried about being cramped, they are designed to maximize interior space, so the boxy frame offers plenty of leg and head room to keep you comfortable, for a little while at least.
Of course, if the idea of being behind the wheel of a highway-legal kei car on a five-lane freeway with SUVs and trucks bearing down on you is terrifying, I agree. It’s really a game of physics here – big, heavy vehicles with long hoods and big crush zones take the advantage here. But clearly the trend is going in the wrong direction, and we need more more small cars on the road, not the two-ton behemoths that are being sold now. Small, cheap EVs fill a huge void in the market. And of course, we’re not talking about radically reducing safety regulations either – I’m old enough to remember riding in a Yugo, the world’s unsafest car and a harrowing experience because it was a literal tin can. Unsafe, cheap cars sold to people who can’t afford all the safety bells and whistles is depressing, and seeing safety reductions for cost savings is a tricky proposition long-term. It’s more about finding some middle ground. If we could get it right, this could be a great move.
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Environment
U.S. could reach deal with Canada that avoids oil and gas tariffs, energy secretary says
HOUSTON — The U.S. could reach an agreement with Canada that avoids tariffs on imports of oil, gas and other energy resources, Energy Secretary Chris Wright said Monday.
Wright said such a scenario is “certainly is possible” but “it’s too early to say” in response to a question from CNBC during a press conference at the CERAWeek by S&P Global. The U.S. is in “active dialogue” with Canada and Mexico, the energy secretary said.
President Donald Trump has paused until April 2 tariffs on Mexican and Canadian imports that are compliant with the agreement which governs trade in North America. Trump originally imposed broad 25% tariffs on goods from both countries as well as lesser 10% tariffs on energy imports from Canada.
It’s unclear, however, how much of the oil, gas and other energy that the U.S. imports from Canada is compliant with the United States-Mexico-Canada Agreement. Wright declined to provide specifics when CNBC asked how much of those imports are USMCA compliant.
“I’m going to avoid the details for now,” Wright said. The energy secretary said, “We can get to no tariffs or very low tariffs but it’s got to be reciprocal” in an interview with CNBC’s Brian Sullivan.
Canada’s energy minister, Jonathan Wilkinson, warned last week that energy prices will rise in the U.S. if the tariffs on energy imports go into full effect.
“We will see higher gasoline prices as a function of energy, higher electricity prices from hydroelectricity from Canada, higher home heating prices associated with natural gas that comes from Canada and higher automobile prices,” Wilkinson told CNBC’s Megan Cassella in an interview.
The U.S. has been the largest producer of crude oil and natural gas in the world for years. But many refiners in the U.S. are dependent on heavy crude imported from Canada. The U.S. imported 6.6 million barrels of crude oil per day on average in December, more than 60% of which came from Canada, according to the Energy Information Administration.
Wright acknowledged that the tariffs are creating uncertainty in energy markets as negotiations continue.
“We’re in the middle of negotiations for where things are going to go with tariffs, so that feels frightening and gripping right now but this time will pass,” Wright said. “Deals will be made, we’ll get certainty and we’ll have a positive economic environment for Americans going forward.”
U.S. crude oil fell more than 1% Monday to close at $66.03 per barrel, while global benchmark Brent closed at $69.28 per barrel. Crude oil futures have pulled back substantially as Trump’s trade policy creates uncertainty and OPEC+ has confirmed that it plans to gradually bring back 2.2 million barrels per day of production beginning next month.
Apple is rolling out a notable update to Apple Maps EV Routing for Ford drivers. Starting today, Ford Mustang Mach-E and F-150 Lightning drivers can use Apple Maps EV Routing via CarPlay to plan road trips that include Tesla Superchargers – or any station that uses the North American Charging Standard (NACS) connector.
As I’ve explained before, Ford began shipping adapters CCS to NACS adapters that allow Mach-E and Lightning drivers to charge at Tesla Superchargers last year. Until today, however, Apple Maps was unaware of this change. This meant Apple Maps EV Routing would only route Mach-E and Lightning drivers to CCS charging stations, even though a route with Tesla Superchargers might’ve been more efficient.
With today’s change, Apple Maps via CarPlay will now include NACS fast charging stations, such as compatible Tesla Superchargers, in recommended route planning recommendations.
In a blog post, Ford explains:
Apple Maps EV Routing in CarPlay allows drivers to input their route and can view the estimated battery level they will have when they get to a destination, as well as suggested charging stations along the way if charging is needed. Previously, Mustang Mach-E and F-150 Lightning drivers would have to manually open another app, then enter a NACS fast charger as a destination to have it added to their route. Now, with the Apple Maps EV Routing and NACS fast charger integration, the experience will be more seamless.
How to Use Apple Maps EV Routing in CarPlay:
- Connect your Apple iPhone to CarPlay.
- Open Apple Maps, go to Settings, and confirm your preferred charging network(s) – make sure you select a NACS fast charging station, such as Tesla Supercharger. You only have to do this once.
- Enter a destination.
- Apple Maps will then calculate the estimated state of charge you will have when you get to a destination.
- If a charge is required, depending on the fastest route, it will automatically route you to a NACS fast charging station.*
This is a significant update to the Apple Maps EV Routing experience for Ford drivers. Next up on my wishlist is support for battery preconditioning when using Apple Maps EV Routing. Android Auto added this feature last October.
The new feature is available now to iPhone users running iOS 17 or later. No software update is required for your car.
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James Murdoch, a Tesla board member and friend of CEO Elon Musk, has confirmed that he sold about $13 million in stock today as the stock (TSLA) crashed.
There has been a lot of insider trading at Tesla lately, and by trading, we mean selling – cause no insider is ever buying at Tesla.
We recently reported on Kimball Musk, Elon’s brother, and Tesla’s Chief Financial Officer Taneja Vaibhav recently selling ahead of a recent drop in the company’s stock price.
Tesla’s chairwoman, Robyn Denholm, also sold $33 million worth of Tesla shares last week and over $100 million in the last 3 months.
Now, it’s James Murdoch’s turn. The Tesla board member just confirmed, through a required SEC filing, that he sold 54,776 Tesla shares for just over $13 million today:
He sold as Tesla’s stock crashed 15% today. It is now down more than 50% from its all-time high just a few months ago.
Murdoch was appointed to Tesla’s board in 2017.
He is better known as the son of media mogul Rupert Murdoch and the former CEO of 21st Century Fox from 2015 to 2019.
Murdoch was one of the Tesla board directors who was forced to return almost $1 billion in cash and stock options to Tesla as part of a settlement for over-compensation.
Electrek’s Take
Tesla insiders are unloading, and those are just the ones we know about. Public companies only have to report insider trading for board directors and listed top executives.
For the latter, Tesla purposefully only lists 3 people: Elon, Vaibhav Taneja, Tesla’s CFO, and Tom Zhu, whose role at Tesla has bit quite fluid in recent years.
Therefore, we don’t know about the dozens of other top executives potentially selling their shares right now amid a giant correction.
It’s really suspicious because there are clear top leaders at Tesla who are often on Tesla’s earnings calls, and they are not even listed, like Lars Moravy, for example.
But it’s par for the course at Tesla, which has some of the worst corporate governance I have ever seen. It’s truly shameful.
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