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Europe’s Carmakers Hike Gas Car Prices To Push EV Sales Harder Ahead Of New Mandates

  • Europe’s 2025 CO2 cap will cut average emissions to 93.6 g/km, forcing automakers to adapt.
  • Automakers must raise zero-emission vehicle sales from 13% to 20% to meet the EU targets.
  • Critics argue the EU’s emissions targets are too ambitious, risking industry-wide financial penalties.

Starting in the new year, the European Union will drastically tighten its regulations on automotive carbon dioxide emissions. From January 1, 2025, the EU will enforce a much stricter cap, requiring the average CO2 emissions per kilometer for each new car sold by a manufacturer to not exceed 93.6 grams. This represents a 19% reduction from the current year’s target.

According to consultancy firm Dataforce, under the new emissions measurement system, the 2024 target would equate to 116 g/km using the previous system of calculation.

Read: Europe Is About To Find Out If EV Sales Can Survive As More Governments Slash Subsidies

While the regulation doesn’t prescribe specific methods to achieve this reduction, it effectively forces major car manufacturers to ensure that at least 20% of their sales come from zero-emission electric vehicles. This marks a significant increase from the current average of 13% of all cars sold in the region, according to data from the industry association ACEA. As Reuters reports, manufacturers that fail to meet these targets will face hefty fines.

Automakers Shift Pricing Strategy

In response, automakers have started increasing the prices of their gasoline and diesel vehicles to reduce demand for internal combustion engine models and make EVs more appealing.

“Carmakers have started with their pricing strategy to steer demand towards battery EVs in order to reach the CO2 targets and avoid potential fines,” Beatrix Keim of the Center for Automotive Research told Reuters.

Companies such as Stellantis, VW, and Renault have already increased the prices of ICE models by hundreds of euros in recent months. For instance, all Peugeot models sold in France—except EVs—saw price hikes of up to €500 ($525) last month. According to S&P Global auto analyst Denis Schemoul, these adjustments could also help fund future discounts for EVs.

Affordable EVs On the Horizon

Over the next year, Europe will see the launch of several new and more affordable EV models. These include the Hyundai Inster, Fiat Grande Panda, BYD Seagull, Cupra Raval, Renault R5, Skoda Epiq, and VW ID.2. Other EVs priced below €25,000 (about $26,200 at current exchange rates) are also in development, such as the Renault Twingo, Kia EV2, and VW ID.1.

 Europe’s Carmakers Hike Gas Car Prices To Push EV Sales Harder Ahead Of New Mandates

Mounting Criticism From Automakers

Not everyone is on board with the EU’s tightening regulations. At the Paris Auto Show in October, Luc Chatel, president of the French car lobby PFA, slammed Brussels for what he described as unrealistic emissions targets.

“At some point, enough is enough,” Chatel said. “I can’t sell enough electric vehicles and I’m going to be penalized on my thermal vehicles. What do they want me to make, horse-drawn carriages?”

This year, just 13% of all vehicles sold across the EU have been electric, and many politicians are pushing the region to relax its targets for 2025. If the sector fails to meet its CO2 obligations, fines could soar as high as €15 billion ($15.7 billion). Some automakers have found alternative strategies to avoid fines, such as pooling emissions with other brands. For example, Suzuki will pool emissions with Volvo in 2025, eliminating the risk of penalties.

Despite these efforts, skepticism remains. A source close to one of Europe’s major automakers told Reuters that simply raising ICE prices may not be enough to drive sufficient EV sales, citing weak growth in the EV segment. As the market faces both political and economic pressures, 2025 could be a turning point for the region’s auto industry.

 Europe’s Carmakers Hike Gas Car Prices To Push EV Sales Harder Ahead Of New Mandates

92% Of EV Owners Will Never Go Back To ICE-Only, New Study Finds

  • The study questioned over 23,000 electric vehicle drivers from across 18 different countries.
  • Only 1 percent of respontends said they would be going back to a pure ICE vehicle
  • Most prefer the platform for its low operating costs, but many have issues with charging.

Electric vehicle adoption rates fluctuate wildly sometimes. What doesn’t move around so much is loyalty after a person owns an EV. According to a new study, 92 percent of respondents said they would never go back to an ICE car. In fact, of all the available options, only one percent of the study population said they’d definitely go back to an ICE-only platform. As for the remaining 7 percent, 4 percent indicated they’d opt for a plug-in hybrid (PHEV), and the rest weren’t sure.

More: EV Batteries May Last Up To 40% Longer Than Expected

Notably, the survey comes from the Global EV Alliance (via Bloomberg) which, as its name might suggest, probably isn’t the most unbiased group when it comes to electric vehicles. It says online that “We believe that zero emission mobility is necessary to combat climate change,” and that “Our goal is a planet where all transportation is sustainable, clean, and electric!”

A Global Perspective on EV Trends

On the other hand, the study itself appears rather transparent. It includes responses from over 23,000 electric vehicle drivers in 18 countries including the USA, Canada, Austria, Brazil, France and India. On top of that, it weighs results based on each country’s share of the total EV fleet across the globe. This means that the results from the USA get weighted higher than those of, say, Sweden. That’s key because, in some smaller nations like Sweden, EV adoption rates are incredibly high.

By weighing the results, we get a more accurate picture of the reality EV owners are living in. According to almost all of them, electric cars are all they’ll buy from this point forward and that’s not all because of climate concerns either. Instead, nearly half of respondents (45 percent) championed the low operating cost of an EV when compared to a gas or diesel-powered car.

Climate friendliness was the second-biggest draw (40 percent), followed by helping the local environment (32 percent), solid driveability (21 percent), and lower maintenance costs (18 percent). In short: they’re cheaper to own, better to drive, and won’t leave your wallet crying every time you pull into a charging station (assuming it works, but we’ll get to that circus later).

 92% Of EV Owners Will Never Go Back To ICE-Only, New Study Finds

Charging Woes Cast a Shadow

Here’s the part where the love affair stumbles: charging infrastructure. Or, more specifically, the lack of it. The study revealed that the biggest downside of driving an EV is the availability – or frequent unavailability – of fast chargers. This explains why Tesla, with its expansive Supercharger network, continues to dominate among buyers.

Read: Global EV Sales Shatter Records In November Thanks To China’s Unstoppable Growth

“When being asked about the disadvantages of driving an EV, the results indicate that the most significant drawbacks are the limited availability of fast chargers, the time-consuming nature of charging, and the frequent downtime of fast charging stations,” the study says. Certainly, that’s a major issue in the USA and clearly, Americans aren’t alone. 

Your Turn: Tell Us What You Think

Are you on the EV bandwagon yet? Or are you holding out for a fast-charging network that’s as reliable as your toaster and as conveniently located as your corner gas station? Whether you’re an EV diehard or still clutching your ICE keys like a security blanket, we want to hear from you. What’s your favorite thing about EVs, and what grinds your gears (figuratively, of course)? Drop your hot takes in the comments below. We’ll be here, pretending we’re not refreshing every five minutes for responses.

 92% Of EV Owners Will Never Go Back To ICE-Only, New Study Finds

Image Credit: GEVA

Propane Bus Grant Provides Funding Opportunities for Missouri Districts

The Missouri Department of Elementary and Secondary Education (DESE) is offering to fund local education agencies (LEAs) in the state to purchase propane-powered school buses.

The Missouri Propane Education and Research Council said in a press release that DESE is providing $970,000 million in funding to school districts for the purchase of the propane school buses. School districts can apply for up to four propane buses at $24,250 each.

Application consideration will be based on data received. At the time of the release last month, the DESE said it had received over two dozen applications and about dozen more spots were available.

Guidance from DESE stated that school buses must meet certain eligibility requirements, including being a 2024 model or newer equipped with an EPA certified engine, and purchased rather than leased. LEAs will need to provide a title, certificate of origin, or a purchase order to the department, showing the purchase of the buses with grant funds, by June 15.

The applications are due Dec. 15. DESE stated that “after the initial application period, should funds remain available, a second round of funding will be offered using the same criteria that will be applied to the first round.”


Related: Missouri Director of Transportation Furthers Safety and Sustainability
Related: Propane Best Immediate Option For Greening Fleet, Says Rural Missouri School District
Related: School Districts Replace Diesel Buses with Propane, Electric

The post Propane Bus Grant Provides Funding Opportunities for Missouri Districts appeared first on School Transportation News.

Mazda Confirms Iconic SP Sports Coupe For Production

  • Mazda’s design chief confirms the Iconic SP concept will enter production in the “not-so-distant future”.
  • In concept form, it features a dual-rotor rotary engine and an EV drivetrain delivering a combined output of 365 hp.
  • This stunning concept could evolve into a successor for the RX-7 or even shrink down to MX-5 size.

About a year ago, Mazda turned heads with the unveiling of the Iconic SP concept, a gorgeous retro-futuristic coupe powered by an electric motor and a rotary range extender. Now, after months of speculation and rumor-mongering, we finally have official word: this isn’t just another flashy concept destined for obscurity, as it’s actually heading for production.

Masashi Nakayama, Mazda’s design chief, confirmed the news, stating, “This concept is not just one of those empty show cars. It has been designed with real intent to turn it into a production model in the not-so-distant future.”

More: Mazda’s Iconic SP Concept Looks Amazing Out In The Open

This is the first time we’ve heard Mazda commit to building the Iconic SP, along with a tentative timeline, though the signs were there The first hint came during the concept’s debut at the 2023 Japan Mobility Show, where Mazda President and CEO Masahiro Moro described it as a beacon of the brand’s “commitment to the future.” Then, in a later interview, Nakayama hinted that the Iconic SP was a project he’d love to see realized, stoking fires that had already started to smolder among Mazda enthusiasts. Now, with production confirmed, that vision is one step closer to reality.

The Iconic SP’s final form could evolve into a successor of the RX-7 and RX-8 sports cars, although Mazda has hinted that its footprint can also be shrunk down to the size of the MX-5 roadster. Ideally, the production version will hold on to the clean lines and seductive curves of the concept, along with those distinctive pop-up headlights. In a market flooded with overwrought designs, the Iconic SP stands out like a glass of neat scotch in a sea of sugary cocktails.

 Mazda Confirms Iconic SP Sports Coupe For Production

Naohito Saga, the Executive Officer at Mazda’s R&D Strategy Planning Division, emphasized the painstaking attention to detail in the Iconic SP’s design: “The more time you spend looking at it, the more the car will reveal to you”. The high-ranked official went on to mention that “everything from position of the doors and tyres, to the length of the vehicle, the seating position of the occupants and visibility was meticulously researched before reaching the final specifications”.

In other words, this isn’t some cobbled-together concept for auto shows; Mazda clearly invested serious resources into making this a viable production vehicle.

Range-Extender Rotary Engine

While Mazda hasn’t shared any details about what might power the production version, at the heart of the Iconic SP concept lies a compact dual-rotor rotary engine paired with an EV drivetrain. In that car, it produces a combined output of 365 hp (272 kW / 370 PS). The company claims that the range-extender can be adapted to run on any kind of carbon-neutral fuel, potentially reducing emissions by up to 90 percent.

According to Saga, “The rotary engine can be very compact and very powerful at the same time. That’s one advantage, but also it can be powered by various types of fuels, and that could give us an edge in the race to find a feasible solution for the future of mobility”.

Furthermore, Mazda is currently experimenting with a new technology that could capture CO2 from exhaust emissions. If the proof of concept goes to plan, the technology “could play a role in the development of Mazda’s future range of vehicles”.

Earlier this year, Mazda told Carscoops that a rotary-powered project would reach the market as soon as some “technical hurdles” were overcome. Hopefully, this coincides with the launch of the production version of the Iconic SP in the next few years.

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November 2024

By: STN
The future is now for Craig Beaver of Beaverton School District in Oregon, when it comes to electric school buses. Photo by Taylor Ekbatani Cover design by Kimber Horne
The future is now for Craig Beaver of Beaverton School District in Oregon, when it comes to electric school buses. Photo by Taylor Ekbatani
Cover design by Kimber Horne

Meet the 2024 Transportation Director of the Year, Craig Beaver, director of transportation at Beaverton School District in Oregon. Read about Craig’s background, leadership experience and accomplishments for his district, including an all-inclusive electric school bus implementation. Also find articles about electric battery recycling, finding the best deal on fuel, protecting student transportation data, guidelines for transporting students with disabilities and more.

This issue also features the 2024 Rising Stars, read profiles on this year’s chosen winners.

Read the full November 2024 issue.

Cover Story

Going Big
Craig Beaver was meant for Beaverton School District in Oregon. He is recognized as the magazine’s Transportation Director of the Year for leading an all-inclusive electric school bus implementation and sharing data on program effectiveness.

Features

Rising Superstars
This year’s industry Rising Superstars share their stories of how they have climbed the industry ladder while providing exemplary service to their students and fellow transportation professionals.

Playing the Fueling Game
School district leaders discuss why price, state contracts and collaboration are just as important as environmental friendliness when securing the best deal on fuel and energy purchasing.

Seeking Transparency
State and federal legislation seeks to ensure that battery second-life, recycling and material sourcing remains top of mind for every student transportation decision on buying an electric school bus.

Special Report

Managing Transportation Data and Keeping It Safe
With data privacy and security the No. 1 concern of school IT professionals amid increasing cyberattacks, how safe are student transportation records?

Feedback
Online
Ad Index

Editor’s Take by Ryan Gray
Donning a Leadership Cap

Thought Leader by Linda Bluth
Recommended Do’s and Don’ts for Meeting the Challenges of Transporting Children with Disabilities

Publisher’s Corner by Tony Corpin
Red, Blue, Green & Yellow

The post November 2024 appeared first on School Transportation News.

Fueling the Future: Unlocking Low-Cost Green Hydrogen

By: newenergy

Current methods used to process hydrogen into a usable fuel are cost-prohibitive, but several new innovations are promising to open the door to cost-competitive green hydrogen. Hydrogen is well positioned to be the fuel of the future. However, a commercially viable transition to green hydrogen – the environmentally friendly version of the fuel – seems …

The post Fueling the Future: Unlocking Low-Cost Green Hydrogen appeared first on Alternative Energy HQ.

Why the EPA Shouldn’t Favor Electric School Buses

By: STN

This content is brought to you by the Propane Education & Research Council. 

Last month, the Environmental Protection Agency announced awards for round three of its clean school bus rebates. As with previous rounds, most of the funding went to electric school buses. To date, the EPA program has allocated more than $2.8 billion for 8,427 electric school buses and 440 low-emissions propane buses.

While the five-year program justifiably aims to replace the nation’s aging, dirty diesel buses, electric models should not be the default replacement of choice. Research shows that more affordable options can lead to lowering emissions faster.

School buses travel more than 3 billion miles each year, providing transportation to more than 25 million American children every day. The rebates, therefore, have the potential to make a huge impact on air quality and decarbonization by replacing existing school buses powered by diesel. EPA’s Clean School Bus Program allows applicants to request battery-electric, propane or compressed natural gas buses.

Eliminating diesel-powered buses is a vital goal. Diesel fuel has a high carbon intensity, and when burned, emits ground-level air pollution that is unhealthy to breathe. Electric vehicles address some of the problem, but don’t actually solve the climate change issues we face today.

Unfortunately, the U.S. electric grid is not as clean as most people think. While renewable energy is being added at a considerable pace, fossil fuels are still being used to meet peak energy demand. The average carbon intensity of the U.S. electric grid is roughly 137 grams of CO2 equivalent per megajoule (gCO2eq/MJ). In comparison, conventional propane has a carbon intensity of 79 gCO2eq/MJ, and renewable propane made from the cover crop camelina has a carbon intensity of only 20 gCO2eq/MJ.

Leaving conventional diesel behind is a good move, and it can happen today with a combination of clean energy resources.

Rebate applicants and the EPA should also consider cost in their deliberations. At $375,000 each, electric buses with charging infrastructure cost about three times more than a propane-powered bus. The cost-prohibitive nature of electric models means school districts may only be able to convert a small portion of their fleets, especially in disadvantaged communities where budgets are often constrained. By choosing propane-powered buses, districts can replace three times the number of diesels to lower CO2, NOx, SOx and particulate matter.

School districts nationwide are realizing that converting traditional fleets to EV is no simple solution. The environmental benefits are less clear, and the grid is simply not ready to service the load. As journalist H.L. Menken once said, “For every complex problem, there’s a solution that is simple, neat, and wrong.”

According to the U.S. Energy Information Administration, about 60% of U.S. electricity still comes from fossil fuels. The cleanliness of the grid varies by state, so it’s important to understand how electricity is being produced regionally.

While major investments are being made in renewable energy, the transition is not happening at a fast enough pace to keep up with load growth. Transmission infrastructure delays and permitting requirements are two major challenges that must be overcome to accelerate grid decarbonization. Grid operators have announced concerns about being able to reliably serve demand due to the intermittent nature of renewables and the retirement of older, dirtier power plants.

Eliminating things like diesel fuel because clean, affordable alternatives are available is a responsible step. This is the wide path ahead — using a variety of ever-cleaner technologies to match the daunting energy-intensive challenge. We applaud EPA’s Clean School Bus Program and hope to see the agency’s awards embrace a holistic view.

Visit propane.com to learn why propane school buses are the smart choice for today’s student transportation needs.

The views expressed are those of the content sponsor and do not reflect those of School Transportation News.

The post Why the EPA Shouldn’t Favor Electric School Buses appeared first on School Transportation News.

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