The European Union has voted to move forward with its plan to impose tariffs on electric cars imported from China, despite recent moves by Germany to attempt to block the proposal.
Chinese EV production has soared lately, as the country’s efforts to secure mineral contracts and build up its local auto manufacturing base have borne fruit.
Along with that drastic rise in EV production has come a rapid rise in EV sales within the country – and a rise of exports as well.
As those exports have hit international shores, audiences from Australia to Europe have found Chinese EVs as quite a reasonable value proposition when compared to domestic manufacturers, and sales have risen overseas as they have domestically.
This has been troubling for domestic European manufacturers, who have found it tough to keep up with the low prices that Chinese manufacturers are able to sell their cars at.
The EU has accused China of “flooding” its market with these EVs, and of unfair subsidy practices towards its local auto industry. (The EU also subsidizes EVs)
As a result of this, Europe decided to impose tariffs on Chinese EVs, with a sliding scale based on which manufacturers it deems most out of compliance with its investigations. Those numbers have been modified as negotiations have gone on, but have currently landed between 7.8% and 35.3%. This is notably much lower than the US tariff, which was recently raised from 25% to 100% and went into effect just a week ago.
Europe votes to impose tariffs, with German opposition
Today, the European Commission took a final vote to impose the tariffs. 10 member states supported the plan, 12 abstained, and 5 voted against, with the most significant opposition coming from the EU’s most populous country and the one with its largest auto industry, Germany.
While the initial vote passed easily with little opposition and many abstentions, including from Germany, the country changed its position and decided to oppose the tariff at today’s vote.
Germany had hoped to rally more nations to vote against the tariffs, but it was always going to be a high bar, requiring 15 countries and 65% of the EU population to overturn the previous vote. As of this week, it became apparent that Germany was never going to get there.
At first glance it seems incongruous that the country with the largest auto industry in Europe might oppose tariffs that are intended to protect the European auto industry. But the reason for this is because German automakers sell a lot of high-end and profitable vehicles to China, and fears retaliatory tariffs of the sort that often come up when countries erect trade barriers.
China specifically has been quite effective at targeting its retaliatory tariffs in the past. In response to trump-era tariffs, China enacted a 25% tariff on US goods in 2018 which, among other things, devastated the US soybean industry. China has already started investigating several EU product categories like brandy, dairy and pork products, and related European industry groups feel “abandoned” by their governments in face of this threat.
Beyond the threat of tariffs, Chinese consumers have been increasingly looking inward as well, abandoning foreign brands partially due to nationalistic sentiment as they feel that other countries have treated them unfairly.
So Germany sees how a Chinese tariff on European autos might hasten its decline in the world’s (just-recently-2nd) most populous country, cutting it off from 1.4 billion potential consumers.
Its vote against may have been tactical, though – an attempt to have their cake and eat it too. Germany may want the protective effects of a European tariff, allowing them to continue to sell to domestic buyers without being undercut by Chinese brands, but also want China to think that they were trying to stop the tariffs, thus lessening Beijing’s desire to retaliate against poor little Germany which did everything in its power to stop these tariffs.
European tariffs are also significantly lower than those recently imposed by the US, and Europe has been actively talking to Beijing and has modified tariff pricing and may modify it more going forward. This may be another tactical decision – by showing that it is more willing to work with China than the US is, and by setting a more “reasonable” tariff, the EU can portray itself as less extreme and thus less worthy of retaliation.
The fact is, tariffs are popular, but usually don’t work very well. We have a lot of examples of this happening, and while “most economists agree” should not be a silver bullet rule for interpreting the world, in this case, I think they’re generally right.
At best, I think these tariffs will offer a temporary reprieve to local manufacturers – which we have already seen they are more than willing to use to delay their plans and put themselves back into the exact same position they’re already in: behind.
Meanwhile, what it immediately does is increase prices for EU consumers, and reduce EU manufacturers’ desire or need to compete on price. In a time where every country around the world has recently struggled with inflation, making one of the things that households spend the most money on more expensive doesn’t seem too wise.
This will also make people less willing to replace gas guzzlers with newer, cheaper-to-run electric vehicles, which means not only sustained high fuel costs for those families, but sustained high climate and health costs from the increased climate change that comes from using those old vehicles.
So I just don’t see this as the smart choice. Germany eventually came around to the right decision here – but it could have exercised leadership earlier, instead of playing tactical games and trying to appear as if it’s on both sides.
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The IONIQ 5 N is the fastest Hyundai ever made, electric or gas-powered. The sporty electric car is so good that it’s now drawing the attention of some of the industry’s finest. Hyundai’s EV sports car was recently spotted outside a Lamborghini test facility. Check out the video below.
Hyundai’s EV sports car caught at a Lamborghini test site
As the first EV to wear its “N” badge, Hyundai aimed to set the bar even higher. And that it did. The IONIQ 5 N is not only the most powerful Hyundai, it’s also the most fun to drive with a series of track-ready features.
Based on its advanced E-GMP platform, Hyundai’s electric sports car delivers up to 641 hp. That’s when using its N Grin boost feature, which gives you a 10-second power surge.
When on the track, N Launch control enables you to adjust to different road conditions for the perfect takeoff. Other features, like N e-Shift, simulate an 8-speed N Dual Clutch Transmission, making it feel like you’re in a true race car.
With N Active Sound+, you cannot only feel the performance but also hear it. Eight internal and two external features sync to your vehicle’s performance.
Hyundai’s EV sports car is apparently good enough to attract Lamborghini’s attention. A Hyundai IONIQ 5 N model was recently spotted leaving Lamborghini’s test facility.
The video from YouTuber Varryx shows a Lamborghini test driver leaving the “Porta Sud,” suggesting the sports car maker could be benchmarking Hyundai’s EV.
Lamborghini unveiled the Lanzador in 2023, its first fully electric vehicle. The concept introduces a new high-ground-clearance GT with 2+2 seating. Or, in other words, like a supercar sitting on an SUV. It’s expected to launch in 2029.
Hyundai’s IONIQ 5 N already beat a Lamborghini Urus Performante in a drag race (see the video here), so it’s no wonder the Italian sports car maker is taking notes.
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The board of directors of the troubled hydrogen fuel cell maker has voted to dissolve the company that developed the first HFC garbage truck to North America last spring, pending shareholder approval.
After a promising global start that saw the American startup announce pilot programs that would see its hydrogen fuel cells put to work in transit buses in Brisbane, its tow trucks (above) in Victoria, and five 154-ton severe duty trucks scheduled to service a zinc refinery operation in north Queensland, slow sales and an inability to deliver on its ambitious goals saw the company quit Australia in July.
Now, Hyzon is quitting altogether.
After issuing a WARN letter to employees in December announcing layoff plans, citing an inability to raise funding and the future uncertainty relating to the availability of government subsidies. Now, it appears the Hyzon board of directors has unanimously voted to dissolve the company and liquidate its assets (pending shareholder approval).
Unanimously approved, subject to stockholder approval, the transfer of all or substantially all of the Company’s assets through an assignment for the benefit of creditors, and the liquidation and dissolution of the Company pursuant to a plan of dissolution while continuing to pursue strategic alternatives and potential funding sources intended to maximize the value of its business and assets.
If Hyzon is unable to find a buyer or an patient, bullish customer soon, expect all of Hyzon’s staff at its Bolingbrook, Illinois and Troy, Michigan facilities to be laid off by the end of February 2025.
Data scientists at General Motors (GM) are using AI and machine learning to pinpoint ideal EV charging station locations across the US.
As EV sales hit record highs for GM in 2024, many drivers are still unsure where to charge their vehicles. To tackle this, GM has partnered with EVgo and Pilot Travel Centers to boost public charging options and improve the overall charging experience.
Partnerships with EVgo and Pilot Travel Centers
GM and EVgo are working together to install 2,850 DC fast charging stalls nationwide. This includes 400 flagship fast-charging locations in major metro areas with 350 kW chargers for ultra-fast charging. These stations feature pull-through layouts for easier vehicle maneuvering, bright lighting for safety, and canopies to protect against the elements.
Additionally, GM has teamed up with Pilot Flying J and EVgo to add up to 2,000 DC fast chargers at 500 Pilot and Flying J travel centers. So far, more than 130 locations are operational.
Using AI to site EV charging stations
To ensure new charging stations are sited where they’ll have the most impact, GM’s data scientists are tapping into artificial intelligence. AI tools analyze EV traffic patterns, driver behaviors, and existing infrastructure to identify optimal locations for chargers.
By treating site selection as a mathematical optimization problem, these algorithms evaluate factors like traffic flow and proximity to other chargers. The results are then visualized on detailed maps, helping stakeholders understand the reasoning behind each recommendation. Human experts review and refine these suggestions to finalize charging site plans.
Once the data-driven decisions are made, GM works with its partners to bring these strategic charging stations online.
This approach blends advanced technology with industry collaboration to tackle one of the most significant hurdles for EV adoption, ensuring drivers have the confidence to make the switch.
What do you think about the use of AI to site EV charging stations? Let us know in the comments below.
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