{"id":81159,"date":"2024-07-21T15:55:00","date_gmt":"2024-07-21T15:55:00","guid":{"rendered":"https:\/\/resourcework2.devstudio.work\/?p=81159"},"modified":"2024-11-11T12:46:19","modified_gmt":"2024-11-11T12:46:19","slug":"evs-face-uphill-climb","status":"publish","type":"post","link":"https:\/\/resourcework2.devstudio.work\/?p=81159","title":{"rendered":"Electric vehicles facing uphill climb"},"content":{"rendered":"\n<p>In October 2020, the federal and Ontario governments announced with fanfare that they would each pour $295 million into helping Ford upgrade its assembly plant in Oakville to start making electric vehicles.<\/p>\n\n\n\n<p>\u201cThe upgrade of the Ford plant will make Oakville into the company&#8217;s No 1. electric vehicle factory in North America,\u201d we were told.&nbsp;<\/p>\n\n\n\n<p>And Prime Minister Trudeau declared: &#8220;This is a win-win. . . . helping&nbsp;accelerate our transition to a low-carbon, clean-growth economy, which will help protect our environment,&nbsp;drive innovation, and create many good middle-class jobs.&#8221;<\/p>\n\n\n\n<p>In April 2023, Ford announced it will spend $1.8 billion to retool its Oakville Assembly Complex, beginning in mid-2024, to build next-generation passenger electric vehicles in 2025.&nbsp;<\/p>\n\n\n\n<p>Then the target date of 2025 becomes 2027.<\/p>\n\n\n\n<p>And now, in July 2024, reality strikes: Ford confirmed that the Oakville plant would no longer produce electric three-row SUVs but would instead turn out&nbsp;larger, gasoline-powered versions of its flagship F-Series pickup truck.<\/p>\n\n\n\n<p>The reason: a global slowdown in electric vehicle demand, with hesitant customers delaying plans to buy EVs, and many opting instead for hybrid-electric vehicles.&nbsp;<\/p>\n\n\n\n<p>Ford, for one, said it will step up hybrid offerings and that by 2030 it expects to offer hybrid powertrains across its lineup of gas-powered vehicles. Ford has also delayed production of electric pickup trucks in Tennessee.&nbsp;<\/p>\n\n\n\n<p>Ford now says its electric vehicle unit lost $1.3 billion USDin the first quarter alone. It sold 10,000 vehicles in that period, and thus lost about $132,000 US for every EV it sold.&nbsp;<\/p>\n\n\n\n<p>General Motors also announced it would cut production of EVs, citing slowing demand.<\/p>\n\n\n\n<p>As far as we know, Honda Canada is proceeding with a $15 billion plan to create Canada\u2019s first comprehensive electric-vehicle supply chain, comprising four plants in Ontario. It includes Honda\u2019s first EV assembly plant in Alliston, ON, which Honda said will produce up to 240,000 vehicles per year.<\/p>\n\n\n\n<p>Flavio Volpe, president of the Automotive Parts Manufacturers Association, said the Ford decision is \u201cnot good news,\u201d and he fears there will be similar announcements from other car companies.<\/p>\n\n\n\n<p>And automotive industry analyst Robert Karwel says: \u201cI would definitely not be surprised to see announcements from other companies.\u201d<\/p>\n\n\n\n<p>\u201cPeople are getting payment fatigue right now generally, and EVs are more expensive,\u201d said Karwel, a senior manager of J.D. Power\u2019s Power Information Network. \u201cThe average car payment hit $900 a month in January.\u201d<\/p>\n\n\n\n<p>In the first quarter of this year,&nbsp;46,744 light and medium-duty EVs were registered across Canada, 11.2% of the market share.&nbsp;<\/p>\n\n\n\n<p>B.C. has long led Canada in the uptake of electric vehicles, and in May they made up 10.7%&nbsp;of light-duty vehicle sales.<\/p>\n\n\n\n<p>But another factor weighing on consumers is B.C.\u2019s recent reduction in rebates for electric vehicles.<\/p>\n\n\n\n<p>B.C. reduced rebates to $3,000 for battery, fuel-cell and longer-range plug-in hybrid electric vehicles and $1,500 for shorter-range plug-in hybrid electric vehicles.&nbsp;The previous incentives ranged from $2,500 to $6,000, depending on the kind of car.&nbsp;<\/p>\n\n\n\n<p>And now, only vehicles sold for&nbsp;under $55,000 qualify for the rebates.&nbsp;Previously, the maximum price was $77,000 to qualify.&nbsp;The federal rebate of $5,000 for qualifying vehicles, introduced on May 1, is still available.<\/p>\n\n\n\n<p>If the slowdown in demand continues, it will only help power producers such as B.C.&nbsp;Hydro, which face staggering demand for power, for EVs and for industrial and clean-energy use.<\/p>\n\n\n\n<p>The federal government requires at least 20% of new vehicles sold in Canada to be zero-emission vehicles (ZEVs) by 2026, at least 60% by 2030, and 100% by 2035.&nbsp;(ZEVs&nbsp;include&nbsp;battery electric vehicles&nbsp;and plug-in hybrid electric vehicles.)<\/p>\n\n\n\n<p>Prime Minister Trudeau: \u201cAs a great Canadian once said, that is where the puck is going and that is where we&#8217;re going to be.&#8221;<\/p>\n\n\n\n<p>B.C. is even more ambitious:&nbsp;It has set targets requiring 90% of all light-duty new vehicle sales to be zero-emission by 2030 and 100% by 2035.&nbsp;<\/p>\n\n\n\n<p>That means B.C. needs substantially more power to cope with EVs \u2014 and will require even more than that to handle expected population growth and the province\u2019s plans to electrify BC\u2019s economy and push clean energy.<\/p>\n\n\n\n<p>Now the&nbsp;Energy Futures Institute (EFI) calls in&nbsp;<a href=\"https:\/\/energyfuturesinstitute.ca\/f\/new-report-calls-for-a-bold-approach-to-bc-energy-policy\">a new report<\/a>&nbsp;for \u201ca dramatic increase in domestic electricity production\u201d in B.C., and cancellation of current plans to wind down some existing power-generation facilities.<\/p>\n\n\n\n<p>EFI chair Barry Penner: \u201cAfter years without new generation coming online, the long-awaited Site C dam is expected to start producing power by next year. Even if Site C was available last year or this year, it wouldn\u2019t be enough to avoid having to import electricity from the United States and Alberta to keep our lights on.\u201d<\/p>\n\n\n\n<p>As for the federal target,&nbsp;the&nbsp;<a href=\"https:\/\/www.biv.com\/news\/resources-agriculture\/charged-report-says-canadas-looming-power-problem-massive-not-insurmountable-8272590\">Public Policy Forum<\/a>&nbsp;says Canada must build more electricity generation in the next 25 years than it has over the last century in order to support a net-zero emissions economy by 2050.<\/p>\n\n\n\n<p>All in all, Canada\u2019s electric vehicle transition could cost more than $300 billion by 2040 more than $300 billion by 2040 as the installation of charging infrastructure expands, upgrades to the electrical grid are made, and other changes take place, according to&nbsp;<a href=\"https:\/\/financialpost.com\/commodities\/energy\/electric-vehicles\/canada-ev-transition-cost-300-billion-2040\">a report<\/a>&nbsp;released by Natural Resources Canada.<\/p>\n\n\n\n<p>Among other things, it says Canada needs to add 40,000 public charging ports per year on average between now and 2040. There now are around 32,000 public ports across the country, and roughly 11,000 were installed in 2023.<\/p>\n\n\n\n<p>The Canadian Vehicle Manufacturers\u2019 Association says lack of charging infrastructure is already deterring some would-be EV buyers. A lack of charging station availability was cited as a top concern by 72% of consumers, according to an Autotrader Canada survey conducted in March.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Cornelius van Kooten, an economics professor and Canada Research Chair in\u00a0Environmental Studies and Climate Change at the University of Victoria, said the federal timeline for electric vehicles \u201cisn\u2019t realistic or feasible.\u201d<\/li>\n<\/ol>\n\n\n\n<p>In&nbsp;<a href=\"https:\/\/www.fraserinstitute.org\/studies\/electric-vehicles-and-the-demand-for-electricity\">a study<\/a>&nbsp;for the free-enterprise Fraser Institute, he said that to meet the goal, Canada would need the equivalent of 10 big new hydro dams (or 13 large natural-gas power plants).<\/p>\n\n\n\n<p>Quebec, for one, has already had to start limiting industrial expansion because it can&#8217;t fill all the power needs.<\/p>\n\n\n\n<p>So you can but sigh when you hear of Quebec\u2019s latest plan for electric vehicles: it&nbsp;is&nbsp;moving ahead with regulations that not only mandate EV sales but actually prohibit sales of&nbsp;<em>any internal combustion engines<\/em>&nbsp;\u2014 including plug-in hybrids, from January 1, 2035.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ford shifts from EVs to gasoline trucks in Oakville due to declining demand and financial losses, challenging government EV targets.<\/p>\n","protected":false},"author":3,"featured_media":83570,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[],"class_list":["post-81159","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-renewables"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Electric vehicles facing uphill climb -<\/title>\n<meta name=\"robots\" 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