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Yesterday — 8 May 2025Main stream

How a Fourth-Generation Wisconsin Cranberry Farm Electrified Its Operations to Power Family Traditions

7 May 2025 at 22:04

Nestled among the lakes and forests of the Northwoods, Bartling’s Manitowish Cranberry Co. has been cultivating cranberries for over 75 years. While the fourth-generation, family-owned farm is rooted in tradition, brothers and co-owners Steven and David Bartling often look to the future. Their most recent venture was to replace aging diesel-powered irrigation pumps with clean, energy-efficient electric systems, supported in large part by federal grants available to farmers and rural business owners. 

Our farm mindset is to make our farm better for the next generation, and this project will definitely help us achieve our mission,” said David Bartling.

Brothers and co-owners David (left) and Steven (right) Bartling are proud to be fourth-generation farmers in Wisconsin, the leading cranberry-producing state in the US. Source: Bartling’s Manitowish Cranberry Co.

For the Bartlings, sustainability is a long-standing family value. “It is second nature to us—we don’t really think about it. Our vision is to cherish who we are and where we came from, and the land and water around us,” said Bartling.

With over 180 acres of cranberry beds and another 200 acres of support land, Manitowish Cranberry Co. harvests between 4 and 7 million pounds of cranberries each year. Operating at this scale requires a significant amount of energy, especially when it comes to irrigation.

To modernize their irrigation infrastructure, the Bartlings replaced nine of their 12 diesel irrigation and anti-frost pumps with electric pumps—machines that are 98% efficient, about 12% more efficient than their diesel predecessors. These new pumps drastically reduce the farm’s reliance on fossil fuels, eliminate the need for large diesel deliveries, and reduce harmful carbon emissions that can degrade the local air and water quality.

Funding for Electrification: REAP and EQIP

While the environmental benefits of electrification were compelling on their own, the available financial incentives turned the Bartlings’ idea into reality. Manitowish Cranberry Co. received a $68,000 grant from the Rural Energy for America Program (REAP), a USDA initiative funded through the Inflation Reduction Act that offers funding to agricultural producers and rural small businesses looking to invest in renewable energy systems or energy efficiency improvements. The grant covered 25% of the cost of their electric irrigation pump system.

 “Like most projects, the cost exceeded our planned budget, but the REAP grant helped bring the cost down,” Bartling reflected.

In addition to REAP, the Bartlings also used the Environmental Quality Incentives Program (EQIP), another USDA-backed initiative that provides technical and financial support to help farmers adopt conservation practices. Through EQIP, they were able to fund additional upgrades and improve overall irrigation efficiency.

Despite having never applied for a grant, the Bartlings took a proactive approach. They started by researching potential funding sources online and reached out to grant writers to help them navigate the application process.

“[The grant writer] did a lot of the legwork of the application, so I didn’t have to learn those details on top of the project,” said Bartling. “Their fee was very minimal for the total amount received.” 

The success of their first grant experience with REAP has inspired them to encourage other farmers to do the same.

Development and Installation

The transition from diesel to electric went smoothly and began with a clear vision and the right partners in Spring 2021. “This project took a lot of planning and ambition, from taking a couple of years to bring in power lines, to installing sheet piling and concrete for the pump station, and finally installing the pumps and extending the mainlines to the existing irrigation system,” said Bartling.

One of the biggest logistical hurdles was the 19-month wait to receive key electrical components for the project. Once they had all the needed parts, the Bartlings used their in-house technical expertise to complete the installation themselves. Because the project was relatively small in scale, there was no need for town or county-level involvement.

Tangible Financial and Operational Benefits

Investing in electrification has already begun to pay off. From a financial standpoint, the Bartlings have significantly reduced their fuel costs and are saving money by operating their electric pumps during off-peak evening hours when electricity rates are lower.

Operationally, the new system is far easier to maintain. Unlike their diesel counterparts, the electric pumps don’t require frequent, technical repairs, and the Bartlings can complete most of the maintenance themselves. The pumps are also remotely controlled via a mobile app, allowing the brothers to monitor and adjust irrigation settings without traveling across the entire property. This time-saving upgrade allows them to focus on other aspects of their business.

Advice to Other Farmers: Start the Conversation

The Bartlings plan to continue exploring ways to electrify and modernize their operations, always with an eye toward sustainability, efficiency, and family legacy. For farmers considering electrification or a shift to renewable energy, Bartling suggests connecting with others who have already completed similar projects. Learning from their experiences can make the process more manageable, and Bartling is open to being a resource himself.

He concluded, “I have no regrets—I absolutely enjoyed the project and would do it again if we had the opportunity.”

To learn more from the Bartlings’ experience, email David at davidjbartling@gmail.com.

For more information on REAP and other federal renewable energy and electrification funding programs, please reach out to info@renewwisconsin.org.

The post How a Fourth-Generation Wisconsin Cranberry Farm Electrified Its Operations to Power Family Traditions appeared first on RENEW Wisconsin.

AUDI’s Capitalized EV Has A Laughably Lowercase Frunk

  • After its debut in Shanghai, the AUDI E5 Sportback is grabbing plenty of attention.
  • However, it’s not the kind the brand wants as its tiny frunk has become an online joke.
  • The electric E5 Sportback will be launched in China this summer offering up to 776 hp.

Audi’s AUDI, which, ironically, is not an Audi, has always struck us as a bit ridiculous, and that seems to be a theme for the model. Not only does it sport a name that sounds like it was picked by the least imaginative people on Earth, but it also comes with a ridiculously small frunk.

How small? Roughly the size of a shoe box judging by an image that has surfaced on social media. While there’s no immediate word on its dimensions or capacity, opening the hood reveals a large expanse of black plastic. In the center is a small opening, which appears to be carpeted and barely useful.

More: Audi’s AUDI Launches 770 HP Wagon Most Of The World Will Never See

While some frunk is better than no frunk at all, the AUDI E5 Sportback’s compartment is far from impressive. This helps to explain the strong reaction on social media.

🤦‍♂️🤦‍♂️🤦‍♂️🤦‍♂️🤦‍♂️🤦‍♂️🤦‍♂️🤦‍♂️ pic.twitter.com/9z4tnurafd

— 풀백수시고(풀소유) (@newdtfullowning) May 7, 2025

Set to be launched in China this summer, the E5 Sportback is a glorified wagon that lacks a four-ring logo. The model also features a “reinterpretation of the familiar Singleframe” grille with a Light Frame surround. The latter consists of more than 1,000 individual lights and they’re joined by Matrix LED headlights. Other notable highlights include digital side mirrors and frameless doors.

In terms of size, the model measures 192.2 inches (4,881 mm) long, 77.1 inches (1,959 mm) wide, and 58.2 inches (1,478 mm) tall. This means the E5 is 4.3 inches (109 mm) shorter than the redesigned A6.

The company hasn’t said much about the interior, but it’s dominated by a 59-inch pillar-to-pillar display. Two screens showing footage from the digital side mirrors act as bookends and the display-focused setup gives the car a high-tech persona.

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The rest of the cabin sports a minimalist design largely devoid of switchgear. However, there’s a 50 watt wireless smartphone charger, a Bose audio system, and an electrochromic sunroof. Buyers will also find an AI assistant, chestnut wood trim, and a fragrance diffuser.

The car rides on the Advanced Digitized Platform and will offer rear- and all-wheel drive. These will have outputs ranging from 295 hp (220 kW / 299 PS) to 776 hp (579 kW / 787 PS). The latter variant will rocket from 0-62 mph (0-100 km/h) in a mere 3.4 seconds.

AUDI has been coy on additional details, but the E5 will be offered with up to a 100 kWh battery pack. This will provide a range of up to 478 miles (770 km). When the battery is low, an ultra-fast charger can deliver 230 miles (370 km) of range in as little as ten minutes.

The E5 Sportback also promises to have advanced driver assistance systems that will make commutes a breeze. Besides the roof-mounted LiDAR sensor, there are three long-range millimeter-wave radars, twelve ultrasonic sensors, eleven cameras, and several multi-modal sensing units.

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Lead image X@newdtfullowning

BMW’s Second-Gen X7 Is Surprisingly Familiar And Very Different All At Once

  • The second-generation BMW X7 has been spied undergoing testing for the first time.
  • The model sports an evolutionary design and appears to eschew the Neue Klasse look.
  • Expected to arrive in 2027, it could be offered with gas, diesel, and electric options.

The BMW X7 has been a popular addition to the lineup and finished 2024 as the brand’s fifth best-selling vehicle in America. While sales were up 12.5% last year, the crossover is getting old as it originally debuted in 2018.

BMW is getting ready to address this as spy photographers have snapped the first pictures of the second-generation X7. Caught undergoing testing in Europe, the model sports an evolutionary design that eschews the Neue Klasse look. This is a surprising development as the redesigned X5 has already been spotted with the retro-futuristic aesthetic.

More: 2025 BMW Alpina XB7 Manufaktur Adds An Extra Layer Of Exclusiveness

While changes are possible, the prototype sports an evolutionary front fascia with a familiar grille that is flanked by split lighting units. They’re joined by a new front bumper, which sports a pronounced horizontal element as well as a wide lower intake.

Moving further back, we can see an evolutionary but streamlined design. As part of this effort, there’s more curvaceous bodywork and new Ford Mustang Mach-E style door pulls. They’re joined by an upward sweeping beltline, sizable wheels, and a beefy braking system with blue calipers up front.

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SHProshots

The rear end is heavily disguised, but the license plate recess has been moved from the liftgate to the bumper. Elsewhere, there’s a four-tailpipe exhaust system and what appears to be a longer spoiler.

Since the crossover is still a ways out, little is known about it. However, it’s expected to ride on the newer CLAR-WE platform and be offered with an assortment of gasoline and diesel engines. More interestingly, we can expect a fully electric iX7 variant. This promises to provide a powertrain for everyone as well as give the upcoming Genesis GV90 some electrifying competition.

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Jeep Dealers Beg Wagoneer S Buyers With Desperate Price Cuts

  • Several dealers have the Jeep Wagoneer S listed for nearly $25,000 below MSRP.
  • The electric SUV starts at $66,995 and features 500 hp as well as 294 miles of range.
  • After discounts and incentives, dealers are advertising the Limited trim for around $43,000.

The Jeep Wagoneer S fire sale has entered a new phase of desperation as we’ve found multiple dealers offering 2025 models for nearly $25,000 below MSRP. This comes three months after the automaker introduced a cheaper Limited trim as part of its effort to boost sales.

While the 2025 Jeep Wagoneer S Limited starts at $66,995 before a $1,795 destination fee, it appears dealers are waving the white flag. This includes Jimmy Britt Chrysler Dodge Jeep Ram, which has one of their EVs listed for $43,104 despite carrying an MSRP of $67,590.

More: 2025 Jeep Wagoneer S Gets New Base Trim, But It Locks Performance Behind A Paywall

That’s a savings of $24,486, which is insane when you consider the 2025 Compass starts at $26,900. However, it’s important to note that price has every discount and incentive applied. This includes $7,665 from the dealer themselves, as well as the $7,500 federal tax credit, and an extra $5,821 off as part of Stellantis’ employee pricing for all program.

 Jeep Dealers Beg Wagoneer S Buyers With Desperate Price Cuts

Down in Florida, there’s a similar deal at Taverna Chrysler Dodge Jeep Ram Fiat. Their $67,590 Wagoneer S has been discounted to $43,138. However, they’ve striked out that price, so you could potentially get the crossover for even less.

Chris Nikel Chrysler Jeep Dodge Ram Fiat in Oklahoma has one of their Wagoneer S’ listed for $43,425. That’s $24,165 below sticker, meaning you could buy a $17,190 Nissan Versa with the savings and not have to deal with charging on long road trips.

 Jeep Dealers Beg Wagoneer S Buyers With Desperate Price Cuts

While those are just a few examples, there are multiple other dealers to choose from. Of course, this isn’t too surprising as Jeep only sold 2,595 units during the first quarter. If that trend continues, the automaker is only looking at selling 10,380 for the entire year.

While those numbers sound terrible, Wagoneer S sales weren’t far behind those of the Mustang Mach-E. Ford only sold 2,927 in Q1, which was a 40.2% decline. That’s bad news for both companies, but buyers can likely expect motivated dealers.

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Tesla Debuts Its Cheapest Model Y In The US

  • Tesla is launching a cheaper Model Y with more range and rear-wheel drive.
  • The new trim costs $4,000 less while offering 30 more miles of range overall.
  • It’s available now with all of the same features as the LR AWD version.

Just days after Tesla rolled out its new Acceleration Boost for the so-called Model Y ‘Juniper’, it’s back again with more news in the form of the the Long Range Rear Wheel Drive trim. As the name suggests, it sheds a motor, gains some range, and, unsurprisingly, is $4,000 cheaper than the Long Range All-Wheel Drive variant.

This brings the new base price of the Model Y down to $33,990 if you qualify for the $7,500 federal tax credit, or $44,990 without it. Including destination and order fees, the price rises to $46,630. That’s comparable to what you’d pay for a Hyundai Ioniq 5 or Kia EV6, but several thousand more than a Ford Mustang Mach-E. However, buyers do get an extra 30 miles of range, up from 327 miles to 357 miles, compared to the AWD variant.

Read: Tesla’s German Sales Halved While EV Market Explodes

There isn’t any free lunch here, so to speak, and the RWD proves slower than its counterpart. 0-60 comes in 5.4 seconds for the base Model Y LR AWD, compared to the 4.6 seconds of the LR AWD version (provided the owner hasn’t bought the Acceleration Boost). Tesla could potentially offer a similar performance upgrade for the base Model Y in the future.

There is other good news to consider, too. The new base Model Y comes with the same standard features as the AWD version. That includes 19-inch ‘Crossflow’ wheels, Stealth Grey paint, and a black interior. Buyers can add other features like different paint colors or a white interior, but both will cost extra cash.

 Tesla Debuts Its Cheapest Model Y In The US

For those still dreaming of a self-driving future, the Model Y Long Range RWD comes with the option to add Full Self-Driving (Supervised) for an additional $8,000. And if you’re wondering when you can expect your shiny new ride, Tesla’s estimates say first deliveries should be arriving in about three to five weeks, though, as always, that could change depending on how Tesla’s internal processes shake out.

For now, the Model Y AWD remains unchanged at a starting price of $48,990 without the federal tax incentive or deliver fees, so if you’re really hankering for a little more power and performance, you’ll need to dig a little deeper into your pockets.

What Else Is Coming?

In addition to the base trim of the facelifted Model Y, we’re also expecting Tesla to unveil its most affordable EV yet later this year. While it’s unclear whether it will launch in 2025 or 2026, as a recent report suggested, we may also see the debut of the most powerful version of the Model Y, the Performance variant, before the year’s end

 Tesla Debuts Its Cheapest Model Y In The US

Mitsubishi’s American EV Will Be A Nissan In Disguise

  • A Mitsubishi version of the Nissan Leaf EV will reach North America in summer 2026.
  • Mitsubishi wants to strengthen its collaboration with Nissan on electrified vehicles.
  • Another EV developed by Foxconn will debut in Australia in the second half of 2026.

Mitsubishi is stepping up its EV game with not one, but two new electric models on the horizon, both of which are slated to arrive in the second half of 2026, each targeting a different market, First up, there’s an electric crossover inspired by the upcoming Nissan Leaf, which will be offered in North America. Then, Mitsubishi is also teaming up with Foxconn to develop a separate EV aimed at the Australian market.

More: Nissan Is Considering A Rugged New Truck-Based SUV

The Leaf-based crossover is expected to hit dealers in the U.S. and Canada by summer 2026. As the official teaser suggests, it will closely resemble the new Nissan Leaf, adopting a similar crossover silhouette with a sloping roofline and an identical LED lighting signature. For now, it’s unclear if there will be any other noticeable differences between this Mitsubishi EV and its Nissan counterpart, aside from the Mitsubishi badges.

Key Features of the Leaf-Based EV

This new EV will sit on the CMF-EV platform, the same one found under the upcoming Nissan Leaf, and will feature a single electric motor. That means, like the slightly larger Nissan Ariya, there won’t be an all-wheel-drive option here. However, Mitsubishi has confirmed that the Leaf-based model will include a NACS charging port and is targeting a range of over 300 miles (482 km).

In return, Mitsubishi is helping Nissan with a plug-in hybrid version of the Nissan Rogue (X-Trail), which is expected to arrive in 2026 as a rebadged version of the Mitsubishi Outlander PHEV. The Rogue plug-in hybrid will sit alongside gasoline and self-charging hybrid variants, with different styling cues to set them apart. Mitsubishi’s goal, of course, is to “strengthen its partnership with Nissan” through electrified vehicles.

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Illustrations: Carscoops

In addition to expanding its EV lineup, Mitsubishi’s Momentum 2030 plan also includes a new approach to retail sales and an expanded dealer network in North America. This effort is designed to boost sales across the region.

New Foxtron-Developed EV for Australia

Mitsubishi has also signed a memorandum of understanding with Foxtron, an electric vehicle subsidiary of tech-giant Foxconn, confirming earlier reports about a potential collaboration. The result will be a new Mitsubishi EV that will be developed by Foxtron and manufactured by Yulon Motor in Taiwan.

More: Foxconn Will Build EVs In The US But You’ll Never See Its Name On Them

The yet-unnamed model will be introduced in Australia and New Zealand in the second half of 2026. Mitsubishi claims it will have “excellent driving performance as an EV”, adding that it will be equipped with “an advanced infotainment system”. While not confirmed, the new model could be a rebadged version of the Pininfarina-designed Foxtron Model B, first shown in 2022.

While the deal sounds nearly finalized, both Mitsubishi and Foxtron have stated they will continue discussions before sealing the deal. Beyond the Foxtron-developed EV for Oceania, Mitsubishi’s broader strategy includes its own developed models for ASEAN, Renault-based models for Europe, and Nissan-based models for North America.

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Foxtron

Tesla’s Sales In Germany Halved As EV Market Explodes

  • Sales have dropped 45.9% in Germany and are down 62% in the UK.
  • While Tesla struggles, some of its EV rivals saw their sales grow.
  • Declines were also been reported in Spain, Belgium, and the Netherlands.

Tesla’s European sales are, to put it lightly, in freefall. After months of steadily declining numbers, April was a particularly disastrous month for the electric vehicle maker. Key markets like Spain, Germany, Belgium, France, and the UK all saw significant drops, leaving Tesla wondering if it can get back on track anytime soon.

Germany, in particular, seems to be where Tesla’s problems are most evident. In April, the company sold just 885 vehicles in the country, down a staggering 45.9% compared to the same month last year. So far this year, Tesla has sold 5,820 vehicles in Germany, marking a 60.4% drop from 2024. Keep in mind, this is the country that houses Tesla’s only European factory, so things are clearly not going according to plan.

Read: Tesla Sales Crash Over 80% In Sweden And That’s Just The Beginning

It’s clear that public sentiment surrounding Tesla’s CEO, Elon Musk, plays a significant role in the company’s declining sales. This year, he’s spent a lot of time aligning himself with controversial figures like Donald Trump and making his presence felt in U.S. politics. Additionally, his public support for a far-right political party in Germany ahead of its recent federal elections has certainly contributed to some of the backlash.

Tesla has also been shifting the European supply of the best-selling Model Y to the recently updated ‘Juniper’ model. However, as local deliveries of this new model have already started, sales should be stronger than they are proving to be.

 Tesla’s Sales In Germany Halved As EV Market Explodes

As Tesla struggled in Germany, some of its competition thrived. BYD, still a relatively new player in the country, sold 1,566 vehicles last month, a 755.7% jump over April 2024. Year-to-date sales are also up 384.5% to 2,791 units. MG sales were also up 34% in April. Polestar also reported a 47.1% increase in sales, with 303 units sold last month.

It’s not much better in the UK, where Tesla sales absolutely cratered in April. With only 512 units sold, the company saw a 62% drop compared to the year before. This is bad, even by bad-news standards.

Tesla’s struggles extend across several other European countries as well. In Spain, sales dropped 36%. In Belgium, it was 55%. France saw a 59% decline, Denmark 67%, and in Sweden, a jaw-dropping 81% drop in April. To put it bluntly, Tesla’s grip on the European market is slipping faster than the price of an electric car at a dealership going out of business.

Germany April 2025 Sales
BrandAPR-25Diff.
APR-24
YTD-25Diff.
YTD-24
ALFA ROMEO660+14.6%2,594+18.4%
ALPINE98+139.0%247+30.0%
ASTON MARTIN4th-89.7%8th-93.0%
AUDI15,509-16.7%63,653-2.9%
BENTLEY42-51.7%206-24.0%
BMW22,540+4.2%76,704+2.0%
BYD1,566+755.7%2,791+384.5%
CADILLAC9-50.0%37-39.3%
CHERY4thX4thX
CITROEN4,602-13.5%16,254-23.1%
DACIA5,122-10.1%22,585-6.9%
DAF TRUCKS1X1X
DS219-17.4%1,366+44.9%
FERRARI181-8.1%640-15.0%
FIAT6,799+30.2%17,085-20.0%
FISKER-100.0%1-99.1%
FORD9,534+15.2%35,352+4.1%
GWM133-46.2%707-12.7%
HONDA634-9.4%2,621+5.3%
HYUNDAI8,239-9.5%28,580-10.6%
INEOS35+2.9%120-44.7%
IVECO114+3.6%348-5.9%
JAGUAR11-95.3%178-82.1%
JEEP983-1.2%4,302+3.8%
KGM147-24.6%954+31.8%
KIA6,015-8.3%19,902-16.2%
LAMBORGHINI118+9.3%488+7.5%
LANCIAX1
COUNTRY ROVER1,389+15.1%4,723+5.3%
LEAPMOTOR314X987X
LEXUS464+4.7%1,544+10.4%
LOTUS27+3.8%125+40.4%
LUCID6-76.9%41+10.8%
LYNK & CO18th-10.0%54+100.0%
MAN130-2.3%494+7.9%
MASERATI96+23.1%245+23.1%
MAXUS24+242.9%46+119.0%
MAZDA3,029-24.8%13,649-13.7%
MERCEDES22.196-1.6%82,772-3.4%
MG ROEWE1,747+34.0%7,245+26.1%
MINI2,782+10.7%9,485-11.2%
MITSUBISHI1,829-4.1%6,948-43.1%
MORGAN8th+100.0%27+50.0%
NIO19th-64.2%83-46.5%
NISSAN2,801+0.8%12,178+1.6%
OPEL11,486+20.7%35,642-23.6%
PEUGEOT5,212-2.9%20,773+2.4%
POLESTAR303+47.1%1,158+38.4%
PORSCHE3,154-23.5%11,115-31.8%
RENAULT4,234+3.6%18,137+32.4%
ROLLS ROYCE22-26.7%123+3.4%
SEAT13,670+12.0%57,514+19.1%
SKODA18,891+22.0%69,005+7.2%
SMART270-82.4%1,281-76.3%
SUBARU337-16.4%1,418-10.5%
SUZUKI2,084+5.7%8,180-6.9%
TESLA885-45.9%5,820-60.4%
TOYOTA6.205-17.3%24,653-16.4%
VINFAST12+500.0%67+204.5%
VOLVO5,194-8.1%21,429+1.9%
VW49,393-2.7%187,746+3.8%
XPENG207X639X
OTHER971-10.1%4,224 
TOTAL242,728-0.2%907,299-3.3%
SWIPE

Hyundai’s New Electric SUV Breaks Away from The Ioniq Lineup

  • The Elexio is the first EV developed in China by the Beijing Hyundai joint venture.
  • This fully electric SUV features a design distinct from Hyundai’s Ioniq lineup.
  • Built on the E-GMP architecture, the Elexio promises a 435-mile (700 km) range.

At this point, it feels like Hyundai releases a new electric model every few weeks. But don’t worry, this one’s actually a little different. Meet the fully electric Elexio, a new SUV developed specifically for the Chinese market. It’s the latest creation from Beijing Hyundai, the joint venture with BAIC Motor, and it promises to deliver the latest tech and over 700 km (435 miles) of range on a single charge.

The SUV, which ditches the familiar Ioniq branding for a fresh name, made its debut at a special event in Shanghai. Hyundai plans to reveal the technical specifications at a later date. While the vehicle’s dimensions haven’t been disclosed yet, it seems to have a more compact footprint compared to the Hyundai Ioniq 9 available in other markets including North America.

More: Genesis Declares Full-Size War On BMW And Cadillac With EV Muscle

Interestingly, the Elexio adopts a new design language that sets it apart from the Ioniq lineup. The front end features a grille-less look with sporty bumper intakes, complemented by a full-width LED bar below the horizontally mounted headlights. The profile stands out with sculpted fenders and a dark-finished D-pillar, which is visually connected to the rear spoiler. At the rear, the Elexio boasts high-mounted full-width LEDs, bold lettering, and some graphic elements on the bumper.

While Hyundai didn’t show any photos of the interior, they teased an “intelligent interface” with no physical buttons, alongside a new digital instrument cluster. The infotainment system will run on the Qualcomm SA8295 chip, delivering the latest connectivity features.

Inside, the design is said to focus on simplicity, with plenty of storage compartments. As for safety, the Elexio will be equipped with a range of ADAS (Advanced Driver Assistance Systems), offering Level 2+ autonomous driving capabilities.

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Powertrain and Range

The new SUV rides on the E-GMP architecture, which already underpins numerous electric models from Hyundai, Kia, and Genesis. While the company didn’t share any details about the number of electric motors or their output, we do know that the platform is compatible with single- and dual-motor setups.

More: Hyundai Plans To ‘Sell Like Hell’ And Tariffs Can’t Stop It

A battery of yet-to-be-revealed capacity is expected to provide over 700 km (435 miles) of range under normal conditions, though this figure is likely based on the Chinese CTLC testing protocols. The battery will also feature rapid charging, able to go from 30-80% in just 27 minutes. It’s housed in a reinforced structure that meets the crash safety standards.

Manufacturing and Future Plans

The new Elexio will be manufactured in China by Beijing Hyundai, with a local market launch expected in the coming months. Whether it will be offered outside China has not yet been confirmed.

Earlier this year, Hyundai announced a $1.1 billion investment in its joint venture with BAIC. This move aims to deliver electrified products tailored to the needs of Chinese customers while boosting exports. With declining sales in China due to intense local competition, Hyundai is hoping vehicles like the Elexio will help restore its foothold in the world’s largest automotive market.

Audi Wants To Build Electric SUVs In America As Tariffs Bite

  • The Q4 e-tron might be built at VW’s plant in Chattanooga, Tennessee.
  • Audi may also build the Q6 e-tron and Q8 e-tron at other VW Group plants.
  • The automaker is under pressure to find a solution to Trump’s tariff policies.

While the VW Group produces many vehicles in the United States, every single Audi sold locally is built in either Europe or Mexico and exported to the US, meaning they are subject to President Trump’s 25 percent auto tariffs. The premium brand is working hard to avoid these tariffs and could build several of its vehicles locally.

A recent report out of Germany suggests that Audi may build the existing Q4 e-tron crossover, or its successor, at the Volkswagen plant in Chattanooga, Tennessee. This would be a logical option as the Q4 e-tron shares the same MEB platform as the VW ID.4, which is currently built in Tennessee.

Read: Audi Stops All US Vehicle Exports Over Tariffs

At the same time, it could alter production plans for the Q8 e-tron. This model was originally going to be built in Mexico, but it may now be manufactured in Columbia, South Carolina, which will be home to Scout and handle production of both the EV and EREV versions of the Terra and Traveler. While VW has been eager to distance itself from Scout to allow the new brand to sell direct-to-consumers, it clearly has enough influence over it to also have the site build an unrelated model from Audi.

 Audi Wants To Build Electric SUVs In America As Tariffs Bite

According to a report from Automobilwoche, the VW Group is also eyeing a third potential location for building the Q6 e-tron, though details are scarce for now.

When asked about these plans, an Audi spokesperson didn’t exactly confirm anything but did admit that the U.S. market is one of their top priorities, sitting alongside Europe and China as a core pillar of their global strategy.

“We want to increase our presence in the U.S.,” they told Auto News. “We are currently examining various scenarios. We are confident that we will be able to decide on the specific details in consultation with the Group before the end of this year.”

Either way, the wheels are in motion for Audi to make a more significant push in the States, as it’s imperative for the company to do whatever it takes to dodge those tariffs, whether by relocating production, shifting models, or just flexing the power of the VW Group.

 Audi Wants To Build Electric SUVs In America As Tariffs Bite

Rivian Slashes 2025 Sales Forecast By Up To 13%, But Secret Stockpile Could Help

  • The EV maker expects to manufacture 40,000-46,000 vehicles until the end of the year.
  • Rivian produced 14,611 vehicles during the first quarter and delivered 8,640 of them.
  • Meanwhile, Lucid built 2,212 vehicles in Q1, but expects to end 2025 with 20,000 units.

Rivian has revised its 2025 delivery forecast, blaming a shifting global trade environment that has been heavily influenced by Donald Trump’s second term as U.S. President. In a similar vein, Lucid is acknowledging rising costs due to tariffs but is holding firm on its production targets, expecting to produce 20,000 vehicles this year.

Read: Rivian’s Secret Stockpile Could Be Its Key To Defeating Tariffs

During the announcement of its first-quarter 2025 financial results, Rivian revealed a notable increase in gross profit, at $206 million to be exact. This marks the company’s second consecutive quarter of profitability, a significant milestone for the fledgling American EV manufacturer. It also makes Rivian eligible for a $1 billion investment from the Volkswagen Group, part of a broader partnership between the two companies.

Rivian’s First-Quarter Progress

The EV startup manufactured 14,611 vehicles in the first quarter, delivering 8,640 of them to customers. The company continues to make strides with its small R2 model, now building validation prototypes while expanding its manufacturing facility in Normal, Illinois.

The carmaker pointed out that while all its vehicles are manufactured in the U.S. and most of its materials either come from the US or are USMCA-compliant, the effects of tariffs, “evolving trade regulations,” and other policy changes have forced it to revise its delivery forecast.

Rivian now expects to deliver between 40,000 and 46,000 vehicles this year, down from an earlier projection of 46,000 to 51,000 vehicles. This adjustment means a potential reduction of up to 5,000 vehicles, equating to a 10% drop at the higher end of the original forecast and a 13% decline at the lower end.

 Rivian Slashes 2025 Sales Forecast By Up To 13%, But Secret Stockpile Could Help

On top of that, Rivian estimates that tariffs could add thousands of dollars to the cost of each vehicle. However, the company does appear to have one ace up its sleeve: a stockpile of batteries, which, according to reports, it’s been quietly accumulating since before the election. This stash could serve as a buffer against the pricing pressures triggered by Trump’s auto tariffs.

“This quarter we hit our second consecutive gross profit and our highest gross profit to date at $206 million,” added company founder and chief executive RJ Scaringe. “We have continued to make significant progress on R2, including vehicle validation builds underway and our Normal, Illinois manufacturing facility expansion on track.”

Despite Slow Start, Lucid Aims High

Meanwhile, Lucid wrapped up Q1 by building 2,212 vehicles, excluding 600 currently being shipped to Saudi Arabia. The company also delivered 3,109 vehicles during the quarter, posting $235 million in revenue. Despite the ongoing challenges, Lucid ended the quarter with a healthy liquidity position of $5.76 billion and is still on track to build approximately 20,000 vehicles this year.

 Rivian Slashes 2025 Sales Forecast By Up To 13%, But Secret Stockpile Could Help

Washington School Bus Driver Fatally Injured During Crash

A Lynden School District bus driver in Lyden Washington, died following a traffic incident, reported KPUG News.

The incident occurred May 1, when the school bus driven by Annette Lyon collided with a white SUV just before 8 a.m.

According to the news report, there were no students on board the bus or involved in the crash. Lyon had been with the district since 2021.

Police said via the article that the SUV driver was sent to a local hospital with unknown injuries. The cause of the crash remains under investigation. Anyone who witnessed the incident or has dashcam footage is being asked to contact authorities.


Related: Pennsylvania School Bus Driver Dies as Result of Crash
Related: Over a Dozen Injured in a New Jersey School Bus Crash
Related: Massachusetts School Bus Driver Crashes into Trees Due to Medical Emergency
Related: Michigan School Bus Driver Charged in Fatal Crash

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Blue Bird Reports Fiscal 2025 Second Quarter Results; Beats Second Quarter Guidance With Record Result; Reaffirms 2025 Guidance and Long-Term Outlook

By: STN
7 May 2025 at 21:23

MACON, Ga.- Blue Bird Corporation (“Blue Bird”) (Nasdaq: BLBD), the leader in electric and low-emission school buses, announced today its fiscal 2025 second quarter results.

“I am incredibly proud of our team in delivering another outstanding result, achieving a new all-time quarterly record revenue and profit,” said John Wyskiel, President & CEO of Blue Bird Corporation. “The Blue Bird team continued to exceed expectations, improving operations, driving new orders, and expanding our leadership in alternative-powered buses. Market demand remains very strong with approximately 4,900 units in our order backlog at the end of the second quarter. Unit sales were slightly above the same period as last year, and revenue was up by $12.9M, driven by product mix and pricing. We delivered an exceptional 14% Adj. EBITDA margin for Q2 2025. With 88% of our second quarter unit sales mix comprised of internal combustion engine (ICE) buses, this result demonstrates the very strong earnings power of our core business.

“In our push to expand our leadership in alternative-powered school buses, we delivered a record 265 electric-powered buses this quarter. As of the end of the quarter, we have more than 1,100 EV buses either sold or in our firm order backlog, which supports our EV sales target for 2025.

“Based on our strong Q2 performance, we’ve maintained our full-year financial guidance for Adjusted EBITDA at $200 million, with a 14% margin. This will be an all-time full-year record for Blue Bird, and we look forward to sustained profitable growth in the coming years.”

FY2025 Guidance and Long-Term Outlook Reaffirmed

“We are very pleased with the second quarter results, with our highest ever quarterly revenue and Adj. EBITDA” said Razvan Radulescu, CFO of Blue Bird Corporation. “Our business is in a very strong position and we continue to deliver ahead of the plan we have been messaging. We are reaffirming our full-year 2025 guidance for Net Revenue to $1.4-1.5 Billion, Adj. EBITDA to $190-210 million and Adj. Free Cash Flow to $60-80 million. Additionally, we are confirming our long-term profit outlook towards an Adjusted EBITDA margin of 15%+ on ~$2 billion in revenue.”

Fiscal 2025 Second Quarter Results

Net Sales
Net sales were $358.9 million for the second quarter of fiscal 2025, an increase of $12.9 million, or 3.7%, compared to $345.9 million for the second quarter of fiscal 2024. The increase in net sales is primarily due to a small increase in Bus unit bookings as well as Bus customer and product mix changes that were partially offset by a small decrease in Parts sales.

Bus sales increased $14.8 million, or 4.6%, reflecting a 1.8% increase in unit bookings and a 2.8% increase in average sales price per unit. In the second quarter of fiscal 2025, 2,295 units booked compared to 2,254 units booked for the same period in fiscal 2024. The small increase in unit price for the second quarter of fiscal 2025 compared to the same period in fiscal 2024 was primarily due to customer and product mix changes.

Parts sales decreased $1.8 million, or 6.5%, for the second quarter of fiscal 2025 compared to the second quarter of fiscal 2024. This decrease is primarily attributed to slight variations due to product and channel mix.

Gross Profit
Second quarter gross profit of $70.9 million represented an increase of $7.2 million from the second quarter of last year. The increase was primarily driven by the $12.9 million increase in net sales, discussed above, and partially offset by a corresponding increase of $5.7 million in cost of goods sold.

Net Income
Net income was $26.0 million for the second quarter of fiscal 2025, the same as from the second quarter of last year. Among other smaller fluctuations, the $7.2 million increase in gross profit, discussed above, was offset by an increase of $9.6 million in selling, general and administrative expenses, primarily due to an increase in a) share-based compensation expense recorded in the second quarter of fiscal 2025 relating to the retirement of our former President and Chief Executive Officer and b) labor costs.

Adjusted Net Income
Adjusted net income of $31.5 million represented an increase of $2.3 million from the second quarter of last year. The increase was primarily driven by a tax effected increase of $3.7 million in share-based compensation expense, largely relating to the retirement of our former President and Chief Executive Officer, and partially offset by a tax effected $1.4 million in stockholder transaction costs that was present in the second quarter of last year, with no such expense in the current year.

Adjusted EBITDA
Adjusted EBITDA was $49.2 million, which was an increase of $3.5 million compared with the second quarter of fiscal 2024. The increase primarily relates to the $4.9 million increase in share-based compensation expense and $1.9 million decrease in stockholder transaction costs, both discussed above.

Year-to-Date Fiscal 2025 Results

Net Sales
Net sales were $672.7 million for the six months ended March 29, 2025, an increase of $9.1 million, or 1.4%, compared to $663.6 million for the six months ended March 30, 2024. The increase in net sales is primarily due to a small increase in Bus unit bookings as well as Bus customer and product mix changes that were partially offset by a small decrease in Parts sales.

Bus sales increased $9.5 million, or 1.5%, reflecting a 1.0% increase in units booked and a 0.6% increase in average sales price per unit. 4,425 units booked in the six months ended March 29, 2025 compared with 4,383 units booked during the same period in fiscal 2024. The small increase in unit price for the first six months of fiscal 2025 compared to the same period in fiscal 2024 was primarily due to customer and product mix changes.

Parts sales decreased $0.3 million, or 0.6%, for the six months ended March 29, 2025 compared to the six months ended March 30, 2024. This small decrease is primarily attributed to slight variations due to product and channel mix.

Gross Profit
Fiscal year-to-date gross profit was $131.2 million, an increase of $4.0 million from the same period in the prior year. The increase was primarily driven by the $9.1 million increase in net sales, discussed above, and partially offset by a corresponding increase of $5.2 million in cost of goods sold.

Net Income
Net income was $54.8 million for the six months ended March 29, 2025, a $2.6 million increase from the same period in the prior year. The increase in net income was primarily driven by the $4.0 million increase in gross profit, discussed above.

Adjusted Net Income
Adjusted net income was $62.1 million for the six months ended March 29, 2025, an increase of $3.2 million compared to the same period in the prior year. This is primarily due to the $2.6 million increase in net income, discussed above.

Adjusted EBITDA
Adjusted EBITDA was $95.0 million for the six months ended March 29, 2025, an increase of $1.6 million compared to the same period in the prior year. This is primarily due to the $2.6 million increase in net income, discussed above.

About Blue Bird Corporation:
Blue Bird (NASDAQ: BLBD) is recognized as a technology leader and innovator of school buses since its founding in 1927. Our dedicated team members design, engineer and manufacture school buses with a singular focus on safety, reliability, and durability. School buses carry the most precious cargo in the world – 25 million children twice a day – making them the most trusted mode of student transportation. The company is the proven leader in low- and zero-emission school buses with more than 20,000 propane, natural gas, and electric powered buses in operation today. Blue Bird is transforming the student transportation industry through cleaner energy solutions. For more information on Blue Bird’s complete product and service portfolio, visit www.blue-bird.com.

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Georgia School Bus Driver, 7 Children Charged After Student Attack

A Georgia school bus driver and seven students have been charged in relation to a violent attack of a 7-year-old student during a bus ride, reported WTOC.

According to the news report, a William James Middle School resource officer in Bulloch County received a report April 23 of an attack on the child during the morning bus route of April 18. Following the report, a criminal investigation into the incident was initiated.

Details from the investigation revealed that seven students ages 5 to 14 physically attacked a 7-year-old child during the bus ride to Mattie Lively Elementary School.

Capt. Todd Hutchens with the Bulloch County Sheriff’s Office told local news reporters that one used his feet to stomp on the 7-year-old. Authorities said the nature of the attack was very violent, which led them to be very concerned for the safety of the 7-year-old as well as other children on the bus.

According to the article, the school nurse said the 7-year-old had multiple injuries, including heavy bruising. Video footage from the bus reportedly shows the seven students involved in the attack. Since then, all the students have been identified, suspended from school and charged with battery.

The bus driver, 70-year-old Joey Edwin Jackson, was also charged following the investigation. He faces charges of cruelty to children in the second degree and failure to report child abuse.

Hutches said via the article that Jackson did not pull over, did not call the bus garage to report an incident, and did not ask for help. Instead, he continued driving to the school. Jackson was fired for failing to follow mandatory reporter protocol. He had been employed by the district since October 2023.


Related: Florida School Bus Attendant Arrested for Inappropriate Behavior with Young Girls
Related: Alabama School Bus Driver Arrested for Allegedly Assaulting Student with Special Needs
Related: 11-year-old Charged in Maine School Bus Incident
Related: Teen Charged in Pennsylvania School Bus Shooting, 3 Others Wanted

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National Congress Finishes Early After 10-Year Hiatus

DES MOINES, Iowa — The National Congress on School Transportation completed a day early, something that hasn’t happened “in recent history,” steering committee chair Mike LaRocco told delegates when the final gavel sounded.

On-site chair Charlie Hood, a former NASDPTS president and retired state director for Florida, added Tuesday at the conclusion of the 17th NCST that it was the hard work of the committees, leadership team and delegates “who understood the importance of this process,” that attributed to the expedited timeline.

NCST is scheduled to meet every five years to update the National School Transportation Specifications and Procedures. The congress last met in 2015 and was scheduled to meet in 2020, but it was canceled due to COVID-19. At this year’s congress, most delegates were newcomers to the process. Forty-eight states were in attendance, there were no representatives from New Hampshire, North Dakota and Washington, D.C.

Especially noteworthy was the quick passage of crossing arms or gates affixed to the front bumper of school buses. The proposed change during the School Bus Specifications deliberations stated, “school buses shall be equipped with a crossing control arm mounted on the right side of the front bumper. When opened, this arm shall extend in a line parallel to the body side and aligned with the right front wheel.”

The delegation passed the proposal by a vote of 34 to 13 without discussion. It was the first proposal to be read at the congress Monday morning. Currently, 26 states require crossing arms in their state specifications or regulations.


Related: Crossing Arms: Do They Work?
Related: Canada Becomes First Country to Mandate External School Bus Surveillance Feeds
Related:
McManamon Citing ‘Personal and Professional Reasons’ Relinquishes NCST Chair
Related: Updated: NCST Takes on Issue of Non-School Bus Transportation


Two proposals failed in School Bus Specifications, the first being a requirement that school buses have two stop-arms on the left-hand side, one toward the front and one in the rear. State delegates noted that while dual stop arms are generally a good idea, they should remain optional as because of the price increase per bus. State delegates cited no data to support this assertion.

A Utah delegate noted the Beehive State already requires two stop-arms on the left side, but that hasn’t seemed to deter illegal passers. A New Jersey delegate added student transporters there, too, “found that the second stop-arm is irrelevant and has no affect whatsoever on people stopping or not. It should be an option.”

Proposal 25, the requirement for LEDs on “all exterior body/chassis lighting with the exception of head/park/turn combination assemblies,” also failed. A delegate from Pennsylvania noted that no financial impact of the requirement as listed on the proposal was an inaccurate statement. Another delegate from Wyoming noted that LEDs may be the current technology but inserting them into the specs would beholden districts to the technology, even if future technology proves to be a better option. A Texas delegate agreed, noting that the word “shall” restricts school districts from using improved technology. The proposal failed by a vote of 45 opposed to 2 in favor.

New to NCST this year was the alternative transportation committee for non-school-bus vehicles, a first for deliberations. The states approved criteria for driver credentials, driver training, vehicle design/equipment and special education policy considerations.

“The 17th National Congress on School Transportation has successfully completed its work,” LaRocco told School Transportation News. “Thank you to the NCST Steering Committee, all writing committees, the editing, technical, appendices, Terms and Definitions Committee and resolution committees, and most importantly the 48 state delegates that were present.”

According to conference attendees, six states (North Dakota, South Dakota, Maine, Kansas, Minnesota, and Louisiana) currently adopt the National School Transportation Specifications and Procedures as written into regulations or law. This is a decrease from the last conference in 2015, when 11 states adopted the manual. School Transportation News was seeking to confirm these number at this report.

The dates and location of the 18th NCST were not announced. State delegates were surveyed about whether they felt meeting every five years was appropriate, or if they would rather meet every two or three years. Survey results were not available at this report.

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Unfair Trade

8 May 2025 at 03:45

 

Esperanto. The Maginot Line. Feudalism. Tariffs. What do these things have in common? They were all clung to despite the tide of history, even after it had become obvious that the water was coming in and had no intention of making a halt.

The idea that public policy can override social and economic forces is, in its way, comforting. We would surely all like to imagine that we are masters of our fate. But Sophocles knew better: "…what is fated, no one can flee, neither by chariot nor by ship."

Take note, mariners. The Greek is saying that you had better rise with the tide.

So far, globalization has been unstoppable. Then and now, trade tensions and arguments about tariffs indicate globalization's continuing strength, not its failure.

I wrote about tariffs in 2020 ("Tariff Follies," Sept./Oct. 2020), in the waning days of the first Trump Administration. Back then, the oracles were prophesying that globalization would perhaps grind to a halt. One panicky prediction went so far as to suggest global trade volume could collapse by 17 percent, an apocalyptic number that would drag down global shipping along with it.

So, how did that go?

I'm happy to report that my five-year-old advice weathered the test of time. "The hot air blowing around tariffs and trade and the intensity of the arguments they engender do not nearly match with the reality," I wrote. That reality turned out to be "business as usual." Instead of shrinking, global trade volume grew by a satisfying six percent vis-à-vis 2020. Global container volumes also set a new record, reaching 74 million TEUs in 2024. All good signs.

Now it's 2025. Trump and tariffs are on the agenda. Again, people are concerned.

WORD ON THE STREET

But before we delve deeper, what's the word on the street?

According to Citibank, an undifferentiated 10 percent tariff could cut European GDP by 0.3 percent over two years. The Institute for the German Economy projected that the already shrinking German economy could suffer further losses in the 2025-29 timeframe equal to 180 billion euros. Italy's economy could contract by 1.2 percent, according to the French Center for International Economic Studies. Tottering Europe would be easy to push into a recession.

Divestment from tariff-afflicted manufacturing sectors may lead to difficulty in obtaining credit and a one or two percent price drop for equities. So would you like to buy the dip?

The machinery and automobile sectors will be hurt the most. They make up 41 percent of Europe's exports to the U.S. Europe sells America a surplus of 102 billion euros of machinery and automobiles each year.

BMW, the German automaker, is expected to take a 400-million-euro hit to its earnings. Other carmakers, however, like Volkswagen, remain unconcerned, remarking that its "North American assembled VW-brand vehicles meet the USMCA rules of origin and are exempted from the 25 percent tariffs." USMCA stands for the U.S.-Mexico-Canada Agreement, a free trade treaty.

Italian-led Stellantis, known for its Jeep and Dodge brands, has gone further. It's not only using the USMCA exemption but planning to expand its U.S. operations, aligning with Trump's goal to compel investment in American car manufacturing and provide jobs for Americans. Under USMCA, any vehicle with 75 percent of its parts originating in North America is tariff-exempt.

Europe has few options when it comes to retaliation. Europe mostly imports oil, coal and natural gas from the U.S. These fuels are not likely to be taxed further by European governments because energy costs are already so politically dangerous.

This illustrates how some can, and will, rise with the tide, while others will struggle.

SHIPPING'S RESPONSE

It's not only globalization that continues despite headwinds. Indeed, in the words of William Arthur Ward, "the pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails."

Let's see how shipping companies are responding.

First Maersk, the Danish titan. Charles van der Steene, its North America President, acknowledged that "the shortterm effect of any tariff clearly is inflation." But the bigger cost driver is a duty on Chinese-manufactured cargo vessels of $1-1.5 million per port call. Seventy-nine percent of Maersk's orderbook is for Chinese freighters, so worry is justified.

Depending on the vessel size, the additional cost per container could work out to around $100. The freight to move a container from Shanghai to Los Angeles sits at roughly $2,650 presently, so while this seems disruptive on its face, the new duty is only a drop in the bucket. Supposedly, this fee will boost purchasing of newbuilds from South Korean and Japanese shipbuilders.

Next, CMA CGM, the French shipping giant, which is proving itself agile. Rodolphe Saadé, CMA CGM's CEO, pledged a $20 billion investment in the U.S. including $8 billion for up to 30 new U.S-flagged containerships, $7 billion for logistics, encompassing new logistics hubs and warehouses, $4 billion for new port facilities and $1 billion for air freight hubs and aircraft. These investments will create approximately 10,000 American jobs.

And, finally, Hapag-Lloyd, the German container giant, whose CEO, Rolf Habben, is perhaps my kindred spirit. In February, he suggested that "it is too early to push the panic button" and counseled patience. Then, he pragmatically noted: "The U.S. President also wants the U.S. economy to grow. They will need more goods for that." And that means ships will be moving cargo.

IMPACTS

Now, let's take a moment to examine the strategic situation in more detail.

At the end of Trump's previous term, in 2019, the U.S. was bringing in $71 billion per year in tariff revenue. By 2024, that number had grown to $97 billion, which is more, but not so much more that it would be significant relative to America's $29 trillion economy. Even if Trump's hyped-up new tariffs enter fully into force, they would only make up about 2.5 percent of U.S. tax revenue, which is about the average from 1974-2023.

In value terms, the picture is similar and doesn't appear to be especially shocking.

For decades, on average, the U.S. levied tariffs of 2.71 percent against imported goods. The rest of the world imposed tariffs more than twice as high, 6.7 percent on average, on American products. Putting aside rhetoric, the Trump Administration's tariff adjustments will likely address this longstanding disparity rather than create a new trade paradigm.

A sampling of the rhetoric from the Trump administration suggests that the tariffs are more for domestic posturing than an effort to rework globalization. Commerce Secretary Howard Lutnick's remark exemplifies this neatly: "These countries have used us and abused us. That is going to change. It's unbelievable the way we get ripped off around the world, and Donald Trump is going to level set it, make it reciprocal and make it fair."

It isn't that the system needs to go. It needs to be "level set," to be made "fair."

LEVELING THE PLAYING FIELD

And, in truth, there's surprising merit to that argument.

Gilberto Garcia-Vazquez, Chief Economist at Datawheel, agrees that "the world imposes tariffs more than twice as high as those applied by the U.S. on imports," which also fails to take into account the rich tapestry of non-tariff trade barriers that are conspicuously common abroad but not in the U.S.

I detailed this in my 2020 article, but the situation is worse now. The U.N. Council on Trade and Development estimates that 70 percent of world trade is subject to what it calls "technical barriers," with climate change a major policy driver.

If the U.S. moves its economic policy in line with the rest of the world's protectionism, it's certainly a bad decision, but it's hardly a paradigm shift. A wise mariner knows that the tide will roll in and that it will eventually roll out. Only a fool would try to resist it.

A Made-in-Canada Solution for U.S. Coast Guard Ice Class Ships

8 May 2025 at 02:54

 

The U.S. Coast Guard is seeking an expedited procurement of ships that can operate in ice. Concurrently, the Royal Canadian Navy has just received the sixth of the Arctic Offshore Patrol Ships (AOPS). This is part of a large program to replace naval assets of various classes. The AOPS were build by Irving Shipbuilding Limited in Halifax, and the comparative capabilities are shown in the table below.

Item

USCG Requirement

Canadian AOPS Capability

Size

360 x 78x 23 ft

338 x62 x 19 ft

Ice Breaking

3 ft @ 3 knots

Polar Class 5 / 2.3 – 3.9 ft

Range

6,500 nm

6,800 nm

Endurance

60 days

120 days

Helicopter

Flight Deck and Hanger

Up to Sikorsky S-92

 

Upon completion of the Navy AOPS program, the Irving yard was to begin on the new surface combatants to replace the Halifax-Class frigates. There were delays in the design and contracting processes, which were going to create a gap at the yard where they would not be producing any ships and would lose much of their highly skilled workforce. The Canadian government stepped in and contracted the yard to build two more of the AOPS ships, which will be delivered to the Canadian Coast Guard.

There is a long history in Canada of saddling the Coast Guard with ships that were never designed for their programs. This includes inventory from the old Royal Canadian Mounted Police fleet, ships built by shipyards on speculation for the offshore oil industry, and ships acquired from other companies, both domestically and internationally.  

One of the early ships that fell into this category was the Labrador, a Wind-class icebreaker built for the Royal Canadian Navy. The Navy operated the Labrador from 1954 to 1957, and it was then transferred to the Coast Guard where it was in service until 1987.

Labrador was a less-than-ideal platform for Coast Guard programs. It was directionally unstable, which required skilled shiphandling when escorting commercial ships or breaking out harbors. Although the accommodations were upgraded from military standards, they did not meet the normal standards of the Coast Guard fleet. The Canadian Coast Guard, as always, made do, and developed a saying: “Seamanship is the art of overcoming bad design.”

The two Canadian Coast Guard AOPS are already under construction, with delivery planned for 2026 and 2027 respectively. Now would be an opportune time to sell them to the U.S. and use the money to build more purpose-built ships for CCG programs.

With the Canadian dollar trading at about 0.72 of a US dollar, the U.S. would be gaining almost thirty percent on the exchange rate alone. Whether Canada is willing to sell to the U.S. in the current trade environment and whether tariffs would affect the economics are unknowns.

If both countries wanted to make a deal, this approach would benefit both coast guards, as the U.S. would quickly acquire two new vessels that meet their stated requirements, and the CCG would get to have ships of their own design rather than making do with a naval design.

Jack Gallagher is the owner of Hammurabi Marine Consulting and served in the Canadian Coast Guard for twenty-two years.

Houthis' Fight With Israel Could Mean Continued Risks for Shipping

8 May 2025 at 00:50

 

Yemen's Houthi rebels have begun to clarify their version of the Red Sea truce agreement announced by the White House, and it appears that international shipping may still face risks on the waterway. 

On Tuesday, President Donald Trump announced that the Houthis had "capitulated" after an extended U.S.-Israeli bombing campaign. The group agreed to stop attacking U.S. shipping, Trump said, and U.S. forces would immediately stop bombing sites in Yemen. 

After Trump's statement, official Houthi media channels announced that the group would continue to attack Israel in retaliation for the ongoing military operations in Gaza. On Wednesday, Houthi spokesman Mohammed Abdulsalam emphasized that the new agreement with the White House did not affect the group's hostilities with Israel in "any way, shape or form." 

If the Houthis' plans to attack Israel also extend to Israeli shipping, the new ceasefire may not reduce risk for foreign-flag commercial traffic. The Houthis have previously attacked vessels with documented links to Israel, but they have used the same justification to attack vessels with no clear Israeli ties - and even vessels that have clear ties to Houthi allies. If this targeting pattern continues, neutral vessels could be targeted as "Israeli ships," whether by accident or by intent. 

Given the uncertainty, leading ocean carriers have suggested that they will wait some months after hostilities end before returning their ships to the Red Sea at scale, in part because of the cost and disruption of adjusting global networks to a different route. It would be expensive to change from the Cape of Good Hope route to Suez, then change back to the Cape route again if the Houthis began targeting foreign-flag merchant ships once more. 

Analysts agree that when container shipping does return to the shorter Red Sea route, the global ocean freight market will return to a familiar pattern - overcapacity and thin margins. 

"The one element of the container shipping market that affects freight rates the most . . . may be nearing an end. But, let's see if this is really happening," said Xeneta lead analyst Peter Sand in a social media post. "If transiting the Red Sea to its full extent is once again safe . . . the balance of the market will once again shift. From its current tightness to one where overcapacity will depress freight rates."

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