Automakers Furious After UK Gives Up On Climate Pledges

Good morning! It’s Monday, September 25, 2023, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.

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Contents

1st Gear: Automakers ‘Moved On’ From Gas Power

Across Europe, automakers are preparing for the pivot away from gas-powered cars when a ban on their sale comes into force in 2035. That’s the same timeline being worked to in states like New York and California here in the U.S., when sales of new gas-powered cars will also be outlawed. But initially, the UK forged its own path and pledged to ban the sale of cars running on fossil fuels by 2030. However, unelected leader Rishi Sunak has now backtracked on several climate pledges, including the ban on new gas-powered cars.

The announcement to delay the ban until 2035, which came last week, has outraged automakers that were committed to this policy, according to a report from CNN. Now, companies like Nissan that were working towards the 2030 ban have condemned the UK’s climate targets.

According to an update shared by the Financial Times, Nissan boss Makoto Uchida said that the world needs to “move on” from running our cars on gasoline. He also added that the Japanese automaker “will never launch another engine-driven model in Europe,” the FT reports. According to the site:

“There’s no going back,” he said. “The world needs to move on from internal combustion engines.”

He referenced the delay announced last week and added: “[We] have a responsibility to be part of the solution and part of the eco system.”

Despite the UK’s decision to backtrack its policies, Nissan says it will still make the pivot to an entirely electric lineup across Europe by the end of the decade. So far, the company offers three EVs in Europe, including the Leaf hatchback, Aryia SUV and an all-electric Townstar compact van.

2nd Gear: California Is Split Over Robotrucks

Ask residents of San Francisco what they think about autonomous cars and I’m sure they’ll keep you entertained for hours with stories of them blocking roads, getting held up by cones and going awol in the worst possible ways. But despite the struggles a few fleets of self-driving cars are facing in California, the state’s governor is eyeing an expansion into autonomous trucks next.

According to a new report from Wired, state governor Gavin Newsom has vetoed a bill that would have banned autonomous trucks without a human safety driver from state roads. The bill was back by unions that argued self-driving trucks posed a safety risk, and was voted through by state lawmakers with a “wide margin.” Wired reports:

In a letter released yesterday, Newsom wrote that the law is “unnecessary,” because California already has two agencies, the Department of Motor Vehicles and the state Highway Patrol, overseeing and creating regulations for the new technology. State agencies are in the midst of creating specific rules for heavy-duty autonomous vehicles, including trucks.

Despite Newsom’s attempts to kill the bill, Wired reports that it’s unlikely much will change in the short-term for self-driving trucks in California. The state still does not permit driverless trucks on its roads, but future rules for their operation are still in the works. With Newsom vetoing the bill that would put a safety driver in the seat at all times, who knows what his draft regulations on the matter could include when they are released “in the coming months.”

3rd Gear: ‘Significant Gaps’ Between Unions And Automakers

A second full week of strike action at America’s big three automakers kicked off this morning after the United Auto Workers union expanded its walkout at sites operated by Stellantis and General Motors. The expansion at the Hummer and Alfa Romeo owners came on Friday, but the union has not increased its industrial action at Ford after it claimed progress was being made there.

However, over the weekend the Blue Oval said that automakers and unions were still not on the same page when it comes to contract negotiations. In fact, the Mustang maker warned that “significant gaps” still remained between what the Unions wanted and what the automakers were happy to give them. As Reuters reports:

Ford Motor said on Sunday that despite progress in some areas, it still has “significant gaps to close” on key economic issues before it can reach a new labor agreement with the United Auto Workers union.

The “issues are interconnected and must work within an overall agreement that supports our mutual success,” it said in a late evening statement after talks over the weekend.

The UAW said that Ford had “improved its contract offer” on Friday as it looked to boost profit sharing, but Reuters reports that “the union still had serious issues to resolve.” These included pay rises across the board, with the UAW fighting for 40 percent over four and a half years and the Big Three only offering 20 percent. Unionized workers also want to switch to a 32-hour working week.

4th Gear: Europe Takes Another Look At Emissions Targets

Ahead of its 2035 ban on the sale of new gas-powered cars, lawmakers in the European Union are preparing to outline strict new emissions targets that internal combustion engined models must meet from 2025. However, the measures have proven controversial across the block and Europe has now unveiled a “watered down” version of the regulations, called Euro 7.

According to British outlet Autocar, the Euro 7 rules target non-CO2 pollutants, placing tight restrictions on the amount of nitrogen oxide, which is released by brake and tire wear, and carbon monoxide that gas-powered cars can emit. Autocar reports:

“The core aim is to make ICE as clean as possible, and to do that, EU7 will bring diesel and petrol engines under identical regulatory emissions limits for the first time,” said engineering firm Mahle Powertrain.

Legal output of carbon monoxide (CO) will be halved, while particle emissions will be reduced up to 30%, by including the smallest (10nm) size. Limits for oxides of nitrogen (NOx) hydrocarbons (HC) and total particulates remain the same as the latest EU6d regs, though, raising questions about the cost-effectiveness of EU7.

Currently, the new regulations are set to come into force in July 2025, after which point most large automakers will have to comply with the new rules. However, the EU has made exceptions to “low-volume, independent manufacturers.” Companies that sell fewer than 10,000 units across Europe will have until July 2030 to comply.

Neutral: Happy Monday

We made it, the start of a new week and the last in September. That means fall is definitely here, which is great because it’s my second favorite season, just after Spring. What kinds of fall traditions do you have to look forward to? Are you a big apple picker, or do you go hard for Halloween?