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Sean Duffy, who was just confirmed as Secretary of Transportation on the back of the transportation “expertise” he showed as a contestant on Road Rules: All Stars, a reality TV travel game show, wasted no time in promising to raise your fuel costs by at least $23 billion on his first day.

The memo, signed yesterday, promises a review of all existing fuel economy standards, which require manufacturers to make more efficient vehicles which save you money on fuel.

Specifically, the memo targets the Corporate Average Fuel Economy standard (CAFE), which was just improved last year by President Biden’s DOT, saving American drivers $23 billion in fuel costs by meaning they need to buy less fuel overall. The savings could have been higher, but were softened from the original proposal due to automaker lobbying.

However, the new DOT memo says it targets all similar standards, rather than just the improvements made last year – so in fact, our headline likely underestimates how much higher fuel costs would go if the DOT follows through on this memo.

A recent analysis by Consumer Reports shows that fuel economy standards are enormously popular with Americans, and that maintaining the current standards could result in lifetime savings of $6,000 per vehicle, compared to current costs, by 2029. And that fuel economy standards implemented since 2001 have already saved $9,000 per vehicle. Now, imagine the net effect of removing all of those standards, which Duffy has directed the DOT to examine doing.

The Sierra Club responded to the decision with this statement: “These common-sense, popular fuel economy standards save drivers money at the pump and reduce dangerous pollution from vehicles. Drivers spend excessive amounts of money to fuel their cars, and it’s often a large part of household expenses. Wasting no time at all as the new Transportation Secretary, Sean Duffy is selling American families out to Big Oil, burdening us with higher fuel prices and more polluting gas-guzzlers that harm our health.” 

Mr. Trump signaled he intended to raise your fuel costs during the 2024 US Presidential campaign, when he asked oil executives for $1 billion in bribes in return for killing off more efficient vehicles. Now, after he finally received more votes than his opponent for the first time (after three tries, and despite committing treason in 2021 for which there is a clear legal remedy), he’s already following through on causing the inflation he promised during the campaign.

As we’ve already seen to be the case often with Trump’s allies, the DOT memo lies about its intentions. Just like his EPA nominee, who said he wants to make the air cleaner by making it dirtier, Duffy, known for being a former reality TV contestant, says he wants to make fuel costs lower by making them higher. The memo attempts to argue that your car will be cheaper if it has lower fuel economy, even though it wont, because buying more fuel will mean you spend more on fuel, not less.

Unequivocally, over here in the real world, dirtier air is actually dirtier, and higher fuel costs are actually higher.

The result of this increased fuel usage also inevitably means more reliance on foreign sources of energy. The more oil America uses, the more it will have to import from elsewhere. Other countries looking to exercise power over the US could certainly choose to raise prices as they recognize that the US has just become more reliant on them.

And, as we know from the most basic understanding of economics, adding more demand means prices will go up, not down. Reducing demand for a product in fact forces prices down, and EVs are already displacing oil demand which depresses oil prices.

Meanwhile, Biden’s higher fuel economy standards would mean that automakers need to provide a higher mix of EVs, which inherently get all of their energy to run not just domestically, but regionally as well. Most electricity generation happens regionally or locally based on what resources are available in your area, so when you charge a car, you’re typically supporting jobs at your local power plant, rather than in some overseas oil country.

Biden’s standards would have stood to benefit US-based EV makers, the most prominent of which is Tesla. However, Tesla CEO Elon Musk gave hundreds of millions of dollars to Mr. Trump, despite it being very clear during the campaign that he intends to harm EVs, which his DOT is now following through on.

Musk has also thrown his support behind policies that will harm Tesla’s business (and Tesla recognizes this to be the case overseas), and thus its shareholders’ pocketbooks (though the shareholders are also doing that on their own, by pledging an illegal $55B payday to a bad CEO).

Some claimed that the result of this support would go towards ending NHTSA investigations into Tesla’s FSD technology, which the agency has heretofore taken a rather light touch on, and which are primarily focused on ensuring that the technology be implemented safely, which is something that everyone, including Tesla investors, should favor. But Duffy himself said that he would not intervene in those investigations.

Also, whiplash changes in regulatory regimes are typically seen as bad for business. Above all, businesses desire regulatory certainty so they can plan products into the future, and there are few businesses with longer planning timelines than automakers.

This is why automakers want the EPA to retain Biden’s emissions rules, because they’re already planning new models for the EV transition. They went through this once before, in the chaos of 2017-2021, where they originally asked for rollbacks but then realized their mistake, and now still complain about the broken regulatory regime caused by the last time a former reality TV host squatted in the White House.

The new DOT memo is just one of many inflationary steps that Mr. Trump has indicated his interest in. He’s also thrown around tariffs and tariff threats willy-nilly, which have the effect of increasing costs, harming growth and reducing innovation. (This is also the case with President Biden’s tariffs on Chinese EVs, and you can read more about why they’re the wrong answer here)

Finally, the most important problem with this memo is that it will increase emissions, which harms your health and increases climate change. Much like the other trends we’ve seen here, this administration doesn’t know much about the basics of climate science, which is already costing America $150 billion a year in increased infrastructure costs related to damage from natural disasters. Just yesterday, a new study came out showing how climate change created conditions that made the LA wildfires, which will be the costliest in US history by far at $20B, more likely.

And that’s not even counting health costs, which will be even higher. The aggregate of these damages could cost each American born today $500,000 over their lifetime.

But all of these harms will happen to real people. This isn’t reality television, where the intent is to make up drama for views. This is actual harm that’s actually going to be done to Americans, who are having a rough time as the global economy continues to grapple with the long-term disruptions resulting from a pandemic that was exacerbated by the same reality TV host, and of course the ever-present worsening climate change.

And so, Mr. Trump is doing his best to follow through on his campaign promises – which, in so many ways, will only make your life costlier, more unhealthy, less stable, and less secure from foreign influence. This is what 49% of America voted for.


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UK backtracks on plans to double the power of electric bikes

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UK backtracks on plans to double the power of electric bikes

If it sounded too good to be true, that’s because it was. A proposal made last year to double the allowable power limit of electric bicycles in the UK was canceled after pushback on the plan.

Current laws in the UK are similar to those throughout most of Europe, limiting electric bicycles to 250 watts (1/3 hp) and 25 km/h (15.5 mph) of top speed.

A proposal put forth by the Conservatives would have seen that power limit doubled to 500W in the UK, and potentially also allowed for the use of a hand throttle, according to Bike Radar.

After the Department for Transport began a public consultation to assess public opinion, it became clear that while the general public had mixed feelings, most bicycling organizations were largely in favor of keeping the existing regulations unchanged.

“While the difference between the overall number of respondents being in favour and those not in favour was relatively small, this was not the case with main stakeholder organisations, with the vast majority opposing the proposals,” the Department for Transport explained. 

While European electric bicycle laws are relatively strict, limiting electric bicycle motors to less power than a healthy adult can generate with their own legs, North American e-bike laws are generally less restrictive.

In Canada, electric bicycles can support up to 500W of power and feature hand throttles that allow the e-bikes to be powered even without pedaling. In the US, the vast majority of states have adopted the three-class system, which allows all electric bicycles to support motors of up to 750W of power, or three times the European limit. Hand throttles are also allowed on some electric bikes, but the specifics can vary from state to state. The subject of speed, as well as hand throttles on e-bikes, has become a contentious subject in the US with increased regulatory activity.

In much of Europe, bicycles and e-bikes are seen as more integrated members of the larger public transportation system. In North America, cities are much more car-centric and often even hostile to cyclists.

While not all European cyclists enjoy the utopia of Amsterdam’s bicycle-friendly streets, most European cities are more likely to feature better-developed cycling infrastructure that lets cyclists safely travel at slower speeds. Conversely, many American riders feel that higher speeds and motor power levels are essential for their safety when sharing the roads with cars, as higher performance allows riders to better pace existing vehicle traffic.

Regulations don’t just dictate how powerful an e-bike can be, but rather they can also shape how e-bikes are used in daily life. In Europe, where most e-bikes are capped at 250W and 25 km/h (15 mph), more emphasis is placed on pedal-assisted cycling, encouraging active riding while offering a boost for longer trips.

Many cities in Europe have extensive bike lane networks that accommodate e-bikes alongside traditional bicycles, reinforcing the idea that e-bikes are simply a modernized version of cycling rather than a separate vehicle class.

In North America, where 750W e-bikes are common and Class 3 e-bikes can reach 28 mph (45 km/h), the riding experience can sometimes be closer to that of a moped. While many riders enjoy this broader freedom, it has caused friction in many cities who seek to rein in higher performance electric bikes.

At the same time, higher power limits and throttle-assist features can make e-bikes more attractive for recreational riders, commuters, and even delivery workers, especially in cities where bike lanes are scarce. This has contributed to a wider diversity of e-bike styles in North America, from fat-tire adventure bikes to powerful cargo e-bikes capable of carrying heavier loads.

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Polestar unveils a new collection of ‘Arctic Circle’ EVs that will be shown off at an ice race [Video]

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Polestar unveils a new collection of 'Arctic Circle' EVs that will be shown off at an ice race [Video]

Polestar has unveiled a new collection of one-off “Arctic Circle” EVs designed to showcase the brand’s performance DNA. The rally-inspired upgrades have now been applied to the Polestar 2, 3, and 4 EVs and were put through their paces in the frigid Arctic before they make their public debut at an ice race in Austria. See more in Polestar’s video below.

Although Polestar is technically a Chinese brand since it is majority-owned by Geely Holding, its roots and design are still very Swedish. The premium EV brand is just now starting to gain some clout with consumers as its lineup of available vehicles has expanded to three models: the Polestar 2 sedan, 3 SUV, and 4 crossover.

Aside from several additional models in its pipeline, Polestar has developed several performance variants of its models. Well, actually, up until now, there has been just one model, the Polestar 2. Nevertheless, we’ve seen two high-performance BST Editions as well as a unique “Arctic Circle” Polestar 2 that made its debut in February 2022.

Three years later, Polestar’s lineup has grown by two, and the automaker has returned to the chilly tundra of the Arctic Circle with unique one-off variants designed to kick up some snow and drift across the ice. Today, Polestar shared images and a video of the new Arctic Circle collection before the three unique EVs perform some hot laps on the ice of Austria this weekend.

  • Polestar Arctic
  • Polestar Arctic

Polestar shows off its tuning prowess in the Arctic Circle

According to news shared by Polestar this morning, the previously mentioned one-of-a-kind Polestar 2 Arctic Circle is now part of a trio of ice-ready EVs alongside its Polestar 3 and 4 siblings. The new Arctic Circle collection is a design exercise in rally-inspired EVs that showcase Polestar’s performance prowess. Company CEO Michael Lohscheller elaborated:

The Arctic Circle collection illustrates our unique performance DNA, rooted in motorsport and combined with Scandinavian design. We develop our cars under challenging conditions within the Arctic Circle in Sweden, and at the FAT Ice Race we will showcase that on ice there is nothing better than a Polestar. We are really excited to be part of this special event with our full model line-up, where it’s all about car culture and the performance experience.

Following today’s online debut of the new Arctic Circle EVs, Polestar said the three one-off models will make their public debut during the 2025 FAT Ice Race in Zell am See, Austria, on February 1. We asked the Polestar team if the Arctic Circle EVs would be competing, but they unfortunately will not.

However, Polestar told us the Arctic Circle EVs will be out on the ice track for some hot laps in front of the race attendees, operated by professional drivers and Polestar engineers, including Polestar’s Head of Driving Dynamics Joakim Rydholm and multiple STCC and WTCC champion Thed Björk.

The vehicles were built at one of Polestar’s Swedish R&D facilities and feature raised ride heights with custom 3-way adjustable Öhlins dampers, specialized Pirelli studded tires, and OZ racing wheels. The Polestar 2, 3, and 4 Arctic Circle EVs also showcase new Quad Evo front spotlights from Stedi, bucket seats from Recaro, and a slew of exterior winter accessories like skis, roof racks, storage containers, and recovery equipment.

Per Polestar, here’s how each of the Arctic Circle EVs break down in terms of specs and accesories:

Polestar 2 Arctic Circle Polestar 3 Arctic Circle Polestar 4 Arctic Circle
MY21 Long Range Dual
Motor with Performance Pack
and software upgrade
469 hp / 502 lb-ft (350 kW)
MY24 Long Range Dual
Motor with Performance Pack
517 hp / 671 lb-ft (380 kW)
MY24 Long Range Dual
Motor with Performance Pack
544 hp / 506 lb-ft (400 kW)
Custom Öhlins 3-way
adjustable dampers (2-way
compression, 1-way rebound)
with external gas reservoirs
Custom Öhlins 3-way
adjustable dampers (2-way
compression, 1-way rebound)
with external gas reservoirs
Custom Öhlins 3-way
adjustable dampers (2-way
compression, 1-way rebound)
with external gas reservoirs
+1.2-inch ride height +1.6-inch ride height +0.8-inch ride height
Front and rear strut braces Front strut brace Front strut brace
Specialized 19” Pirelli
Scorpion All-Terrain Plus with
250 4-mm studs (245/45R19)
(for ice track driving)
Specialized 20” Pirelli Scorpion
All-Terrain Plus with 300 4-mm
studs (295/40R20) for ice track
driving
Specialized 20” Pirelli Scorpion
All Terrain Plus with 300 4-mm
studs (295/40R20) for ice track
driving
Pirelli P Zero Winter
(245/45R19) (for road driving)
Pirelli Scorpion Winter 2
(255/50R20 front, 285/45R20
rear) (for road driving)
Pirelli Scorpion Winter 2
(255/50R20) (for road driving)
OZ Racing Rally Racing
wheels (19”)
OZ Racing Rally Legend
wheels (20”) (world premiere)
OZ Racing Rally Legend
wheels (20”) (world premiere)
Recaro Pole Position bucket
seats
Recaro Pole Position bucket
seats
Recaro Pole Position bucket
seats
Paddle-operated launch control  Stedi ST4K roof light bar  Drift-inspired hydraulic hand
brake
Stedi Quad Pro LED front
spotlights
Stedi Quad Pro LED front
spotlights
Stedi Quad Pro LED front
spotlights
Rally-inspired mud flaps 
and Swedish gold tow hooks
Rally-inspired mud flaps 
and Swedish gold tow hooks
Rally-inspired mud flaps 
and Swedish gold tow hooks
Thule WingBar Edge roof rails
and SnowPack ski mounts
Thule WingBar Edge roof rails
and custom roof basket
Specialized ski mounts
Blackcrows all-terrain skis  Fiskars SnowXpert shovel,
Peli 1650EU Protector Case,
and snow ladders
Blackcrows all-terrain skis 

If you happen to be in Zell am See, Austria, this weekend, bundle up and check out some ice races and hot laps from Polestar. If you’d rather stay where you are and remain nice and warm, you can enjoy winter driving footage in the Arctic Circle from Polestar below:

https://plstr.car/arctic-circle-documentary

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Oil giant Shell raises dividend despite full-year profit miss

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Oil giant Shell raises dividend despite full-year profit miss

A Shell logo is displayed on May 03, 2024 in Austin, Texas.

Brandon Bell | Getty Images News | Getty Images

British oil giant Shell on Thursday reported a significant drop in annual profit, citing higher exploration write-offs, lower trading margins and weaker crude prices over the final three months of the year.

Shell posted adjusted earnings of $23.72 billion for the full-year 2024, compared to annual profit of $28.25 billion a year earlier.

Analysts had expected Shell’s full-year 2024 net profit to come in at $24.71 billion, according to an LSEG-compiled consensus. A separate forecast from analysts polled by Vara Research expected full-year profit to come in at $24.11 billion.

The energy major posted weaker-than-anticipated adjusted earnings of $3.66 billion for the final quarter of 2024.

Shell announced a 4% increase in dividend per share and launched another share buyback program of $3.5 billion, which is expected to be completed over the next three months.

Speaking to CNBC’s “Squawk Box Europe” on Thursday, Shell CEO Wael Sawan described 2024 as a “very strong year,” one which gave the company a platform “to do everything we said we were going to do.”  

Asked whether it was time for Shell to move its listing from London to New York to close the valuation gap on its U.S. peers, Sawan said the firm was “always reviewing headquarter listings and the like.”

However, “there is no live discussion at the moment on this in Shell because our number one priority is to make sure that we unlock the full potential of this company,” Sawan noted.

The world’s top oil and gas companies have seen profits fall from record levels in 2022, when Russia’s full-scale invasion of Ukraine prompted international benchmark Brent crude to jump to nearly $140 a barrel.

Oil prices have since cooled amid faltering global demand, with Brent crude futures averaging $80 a barrel in 2024. That was about $2 a barrel less than the previous year, according to the U.S. Energy Information Administration.

In a trading update on Jan. 8, Shell trimmed its liquefied natural gas (LNG) production outlook for the final three months of 2024 and warned that trading results for its chemicals and oil products division were expected to be “significantly lower” on a quarterly basis.

Shares of the London-listed company traded 0.7% higher at 8:10 a.m. London time.

‘First sprint’

Shell’s full-year results come as the company enters the final stretch of its so-called “first sprint.” The strategy, which was launched in 2023 and runs to the end of this year, aims to close the valuation gap with U.S. peers by boosting the major’s profitability.

Shell CEO Wael Sawan has prioritized the firm’s more profitable oil and gas operations as part of this shift, while cutting spending on areas such as offshore wind and hydrogen and withdrawing from power markets in Europe and China.

Like other oil and gas majors, Shell has watered down climate targets and green investments in recent years. The company, however, has said it remains committed to becoming a net-zero energy business by 2050.

U.S oil giants Exxon Mobil and Chevron are both scheduled to report earnings on Friday, while European peers TotalEnergies and BP are set to follow suit on Feb. 5 and Feb. 11, respectively.

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