Automakers whine about €15B fine they knew they’d risk for pushing gas cars
Renault CEO Luca de Meo said today that automakers collectively may need to pay ~€15B in fines if they miss 2025 emissions targets, as they’ve failed to ramp up efficient vehicle production in line with EU guidance – even as consumer EV demand continues to rise in Europe.
At issue are Europe’s 2025 CO2 targets, and a penalty calculated based on fleet average CO2 emissions per automaker.
By 2025, automakers are supposed sell vehicles with average emissions of 93.6g/km or lower. If an automaker fails to meet this legal target, which was established in 2017, it may have to pay a fine of €95 per gram of CO2 per car.
The potential fines vary by automaker, with some automakers close to meeting the targets and some far away. Multiple automakers have already met the targets, namely Tesla and Volvo, who are well under the requirements. And some are close to meeting them due to high EV or hybrid mix, like Kia, Hyundai and Stellantis. These companies risk a fine of a few hundred euros per car if their fleet emissions remain at 2023 levels.
Worst off are Ford and Volkswagen, which have a longer way to go before meeting 2025 targets. These companies could risk fines of €2,000+ per car, given their current levels of noncompliance.
de Meo tries to avoid blame for fines industry knew were coming
Today, Luca de Meo, who is CEO of Renault and also head of the European Automobile Manufacturers Association (ACEA), said to Inter radio in France that fines could total €15 billion if fleet emissions remain at today’s level, or that automakers would need to give up the production of 2.5 million polluting vehicles in order to come into compliance.
de Meo said “the speed of the electric ramp-up is half of what we would need to achieve the objectives that would allow us not to pay fines,” notably using the words “the electric ramp-up” instead of “our electric ramp-up” in order to suggest blame could come from external factors instead of from the industry itself.
de Meo went on to beg for “flexibility,” saying “setting deadlines and fines without being able to make that more flexible is very, very dangerous.”
Notably, these targets were established in 2017, which is more than enough time for automakers to know what they need to do, and were already subject to interim evaluation in 2023.
The average car development cycle is about 7 years long from start to finish, so even if automakers waited until after the 2017 regulation was adopted (which would have been folly, since both climate change and the necessity of the EV transition have been obvious since well before then), they still had plenty of time to bring new models to market that would be ready today.
de Meo isn’t the only automaker head who has repeatedly called for 11th-hour flexibility on targets they knew about 8 years ahead of time. BMW CEO Oliver Zipse has also called for a review of the targets.
But the ACEA, which de Meo is also the head of, says the 2025 targets should remain unchanged, saying “any change to this would not leave enough time to adapt due to vehicle development and production cycles.”
And Transport & Environment, in an April 2024 analysis, showed that these targets are still reachable, just that automakers have put in little effort to reach them yet.
In previous years, automakers made the same complaints that new targets would be hard to reach and that they risked fines, begging for leniency instead of just putting in the work needed to meet them. Then, miraculously, when the time came for regulations to go into place, their fleet emissions dropped precipitously from their previous plateau to meet the new targets. It’s almost like the effort was possible all along. I wonder if the same is true here…
Electrek’s Take
To be clear: I have absolutely zero sympathy for any automaker who was given years of notice that they would be fined for poisoning the world’s climate, and yet continued to do so and are now asking for lenience. You broke the law, the law is a good law (which could be better), you had plenty of time to get ready for it, and you failed to do so.
One attempted argument from the automakers is that “demand has cooled” for EVs and that it’s not the automakers’ fault, but this is incorrect. EV sales continue to go up, not down (+11% year-over-year in Q2 2024), which means demand continues to rise, not shrink, in spite of the many incorrect headlines stating otherwise. Hybrid sales are also up in the EU (+21% in Q2), which also helps increase fleet efficiency, though not as much as EV sales do. Meanwhile, gas car sales actually are slowing (-2% in 2Q).
One reason this rising EV sales tide hasn’t lifted European automakers’ boats as much as it might have is because many of those EV sales are taken up by upstart automakers, whether it be in the form of Tesla which has Europe’s best-selling vehicle, or Chinese brands which are exporting affordable EVs into Europe after that country’s auto industry actually committed to building cleaner, more futuristic vehicles rather than waffling and begging regulators to protect them while they pollute just a little bit more please. Indeed, the two brands that got busy exceeding targets instead of whining are listed in this paragraph – Tesla, and Volvo (owned by Geely, a Chinese firm).
Also, all the above Q2 sales growth numbers could (and should) be higher in magnitude, if it weren’t for automakers’ intransigence. These numbers are your responsibility to move, not anyone else’s.
Customers will buy the products they’re shown – it’s your job to create demand (after all, you’ve spent the last century trying to reorganize all of society around more and more wasteful, oversized vehicles in the first place), it’s your job to build the products, and it’s your job to scale them to affordable prices.
You have known this was your job for many years now, if not decades. And you didn’t do it.
And it’s not an impossible job either. Not only has Tesla already met the targets (despite its CEO losing his way on climate change), but so has Volvo (despite its recent misguided EV backtrack) – showing that both a new(ish) startup and a company with an established, decades-old gas car business can both exceed these targets, and do so by a longshot.
So, everyone else that’s complaining is simply doing a subpar job of it. These automakers have failed to cross a bar that is demonstrably crossable, and will be penalized for it if they don’t clean up their act immediately, just as they should. They continue to build and advertise cars that poison the world, that destroy nature, that threaten and will lead to mass displacement of vast swaths of the human population, and so on, and they absolutely should have to pay for it – and frankly should feel relieved that they’re not being made to pay more.
If they don’t want to pay the price they’ve brought upon themselves, they’re welcome to stop building, advertising, and lobbying in favor of cars that poison the world anytime. Nobody’s making them spend the tens of billions they spend advertising gas cars to Europeans every year.
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Environment
Rivian (RIVN) to open a UK office that will focus on AI and autonomous driving technology
American EV automaker Rivian is expanding across the pond into the UK, hoping to tap into the region’s talent pool in artificial intelligence engineering.
Rivian is a growing American EV brand with expanding office footprints as much as its lineup of unique electric trucks and SUVs. The company is currently headquartered in Palo Alto, California, with its main production facility located in Normal, Illinois alongside plans for a second production footprint about 40 minutes outside of Atlanta, Georgia.
Other US locations currently include offices in Irvine and Carson, CA, Wittmann, AZ, and Plymouth, MI. Outside of the US, Rivian operates out of offices in Vancouver, BC, Canada, Amsterdam, Netherlands, and Belgrade, Serbia.
This morning, Rivian announced its latest international office in London, UK, which will become an AI-centric development hub.
Rivian to open AI Hub in the UK
According to a release from Rivian early this morning, it sees the UK as rapidly becoming a world leader in artificial intelligence engineering, and is looking to tap into that talent pool with the new international office.
While Rivian’s current Autonomy Platform enables drivers to utilize hands-free, eyes-on highway driving, the American automaker intends to continue to evolve such tech to offer greater levels of autonomous capabilities.
Rivian shared that its second-generation EVs were designed with an “AI-centric approach.” As its Gen2 vehicle fleet continues to develop and grow, the automaker has been collecting more and more data to help accelerate the improvements to ADAS technology. Per the company:
Rivian believes the combined strength of its perception platform and in-vehicle data infrastructure will enable it to build a Large Driving Model, unlocking unparalleled understanding of complex driving scenarios and accelerating the path to safer, more capable autonomous features.
Rivian said the future work done at its new UK AI hub will enable its EVs to improve in the future via over-the-air (OTA) updates. Details remain light, but Rivian shared plans to host an “AI and Autonomy Day” later this year and promised to share more about its product and technology roadmap.
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Waev, the company best known for its iconic GEM electric low-speed vehicles (LSVs), just unveiled a brand new lineup of commercial electric carts and LSVs. And this time, they’re not messing around when it comes to utility. Dubbed the Fusion line, these new lithium-ion-powered vehicles include mashups plucked from the worlds of golf carts, street-legal shuttles, and jobsite pickup trucks.
The Fusion lineup includes six different models: three designed for people-moving and three built for utility work. But all six still seem to be aimed squarely at commercial, municipal, and industrial fleets.
Whether that’s running security at a stadium, shuttling guests at a resort, or hauling equipment around a worksite, there looks to be something in the Fusion family that probably fits the bill.
On the people-moving side, Waev is offering 4, 6, and 8-passenger models, all of which feature a flip-up rear seat that converts into a cargo deck, a near ubiquitous feature among modern golf carts and LSVs with rear-facing benches that helps them pull double duty as a light utility vehicle. The feature gives them added flexibility for things like maintenance staff, hospitality transport, or even large campus tours, letting them carry a large number of passengers, yet still be capable of stacking boxes or equipment in the rear.
The utility versions look a bit different with more muted matte black bodywork, plus come with electrically-actuated hydraulic dump beds, 2-inch ball hitches, and even orange seat belts for jobsite visibility. It’s harder to forget to put on the seatbelt when it’s blindingly orange.
And yes, the Fusion Utility Long Bed basically looks like a pickup truck built on a golf cart chassis, which I find equal parts strange and endearing. But then again, I’m the guy who infamously kicked off the great American mini-truck trend a few years ago when my hilarious little tiny-truck went viral, so maybe I’m a bit biased when it comes to fun little utility vehicles.
All Fusion models are available in both “cart” and “LSV” configurations. The carts are speed-limited to 19 mph (30.5 km/h) and come with serial numbers, making them street-legal only in limited areas that have passed local ordinances permitting golf carts to use public roads.
The LSV versions get full VINs, meet federal low-speed vehicle safety standards (meaning over a dozen regulations on manufacturing standards and safety equipment), and can be driven up to 25 mph (40 km/h) on public roads where LSVs are permitted by state law.
Waev is sticking with lithium-ion power here, specifically a 105Ah Marxon pack that’s both heated and insulated for cold-weather use. That’s a big step up from the old-school lead-acid setups still found in some fleet carts (and, if we’re being honest, still offered on some of Waev’s other vehicles).
The company claims to offer automotive-grade manufacturing processes and reliability on its vehicles, along with Bluetooth diagnostics and a smartphone app for managing the fleet.
Other upgrades include LED lighting, back-up cameras, AVAS pedestrian alert systems, and standard three-point seat belts for all passengers. Optional extras like ladder racks, beacon lights, and upgraded tires make it even easier to tailor each unit to the specific job at hand.
The Fusion line slots into Waev’s already broad family of low-speed EVs and fleet vehicles, including the steel-bodied Taylor-Dunn utility vehicles, Tiger heavy-duty tow tractors for airports and warehouses, and the classic GEM lineup that’s been a staple of street-legal fleet transport since the late ‘90s.
It also looks like Waev isn’t just trying to sell the hardware here – it’s pushing hard on full-service fleet support, too. The company is leaning on an extensive dealer network across the U.S., Mexico, Canada, and Australia, and all Fusion models are available through Sourcewell and Canoe procurement programs for simplified public-sector purchasing.
One big thing we’re not seeing, though, are the prices. It’s more of a “contact us for a quote” situation, which means exactly what you think it means. We’ll try to learn more, but don’t expect to make it out of the lot without a measurably lighter wallet.
Electrek’s Take:
This is the kind of product line that probably won’t turn heads in your local grocery store parking lot, but it’s exactly the kind of quiet EV revolution that’s transforming fleets behind the scenes. Lithium-ion golf carts and LSVs that can tow, haul, and shuttle without the noise or emissions of gas engines? That’s a win for everyone –from municipal fleets to private campuses.
And frankly, I’m here for the golf cart pickup truck vibe. Street legal, work-ready, and just weird enough to be cool. The fact that the tailgate seems to swing all the way down and doesn’t lie flat like a normal pickup truck’s gate was a swing-and-a-miss by the designers – I don’t know how that got through – but everything else looks great! And hey, I guess I could always add a pair of tailgate cables if I wanted.
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Tesla’s retro-futuristic diner with Superchargers and giant movie screens is ready to open, and I have to admit, it looks pretty sick.
This project has been in the works for a long time.
In 2018, Elon Musk said that Tesla planned to open an “old school drive-in, roller skates & rock restaurant at one of the new Tesla Supercharger locations in Los Angeles.” It was yet another “Is he joking?” kind of Elon Musk idea, but he wasn’t kidding.
A few months later, Tesla applied for building permits for “a restaurant and Supercharger station” at a location in Santa Monica. However, the project stalled for a long time, apparently due to local regulations.
Nevertheless, Tesla still moved forward with a Supercharger at the location, but it had to move the diner project to Hollywood. In 2022, Tesla filed the construction plans with the city, giving us the first look at what the automaker intends to build.
In 2023, the automaker broke ground on the site of the diner.
7 years after being originally announced, the project appears now ready to open:
Musk said that he ate at the diner last night and claimed that it is “one of the coolest spots in LA.” He didn’t say when it will open, but Tesla vehicles have been spotted at Supercharger and people appear to be testing the dinning experience inside.
A Tesla Optimus Robot can be seen inside the diner on a test rack. It looks like Tesla might use one for some tasks inside the diner.
Earlier this year, Tesla integrated the diner into its mobile app – hinting at some interaction through the app – possibly ordering from it.
Electrek’s Take
I think it looks pretty cool. I am a fan of the design and concept.
However, considering the state of the Tesla community, I don’t think I’d like the vibes. That said, it looks like Tesla isn’t prominently pushing its branding on the diner.
You can come and charge there, but it looks like Tesla is also aiming to get a wider clientele just for dining.
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