VOLKSWAGEN FACES STRIKES AMID RESTRUCTURING DEADLOCK
Volkswagen Group is on the brink of widespread strikes as talks between executives and union leaders over the company’s restructuring plans reach a standstill. This impasse could significantly alter the workforce and operational strategies of the German automaker.
Labor leaders have suggested an extra €1.5 billion ($1.6 billion) in cost-cutting measures to avoid factory closures. Their proposal includes eliminating bonuses for two years and creating a fund to reduce working hours in less productive areas temporarily. Additionally, they propose a 5.5 percent wage increase for employees to support colleagues in sectors facing excess capacity and potential job losses. However, the unions have not revealed how they plan to achieve these savings.
Negotiations began on November 21, 2024, at Volkswagen’s headquarters in Wolfsburg. This is the third round of talks focused on wage agreements for 120,000 of the company’s 300,000 employees in Germany. These workers are spread across six plants with a unique collective wage arrangement. With just ten days left to finalize an agreement, the tension is high. Unions have threatened strikes at German locations starting December 1 if no resolution is found.
Volkswagen has asked for a 10 percent wage reduction to lower costs and boost profits, aiming to stay competitive against Chinese manufacturers and address the declining demand for European cars. For the first time in its 87-year history, the company is considering closing German plants and possibly repurposing its Emden site for contract manufacturing.
If management rejects the union’s proposal, the unions will demand a 7 percent pay increase without closing any plants. This could lead to the first major strikes at Volkswagen’s German operations since 2018, when over 50,000 workers protested wage issues. CEO Oliver Blume is under pressure to cut expenses in Germany, where labor and energy costs are among the highest in Europe, making the company’s financial situation more challenging.
https://evne.ws/3CDMD4G
FORD PULLS OUT OF MAJOR QUEBEC EV BATTERY PROJECT
Ford has decided to exit its plan to produce battery materials for electric vehicles (EVs) in Quebec. The automaker is withdrawing from a $1.2 billion Canadian (about $860 million USD) joint venture with EcoPro and SK On. Although the construction of the cathode active materials plant will continue, Ford’s direct involvement has ended, creating uncertainty about its role as a key customer.
The partnership was first announced in August 2023. It aimed to produce 45,000 tonnes of cathode active material each year by 2026. These materials are essential for nickel-cobalt-manganese batteries, which power EVs.
The plant was expected to support around 225,000 Ford EVs, marking Ford’s first major manufacturing investment in Quebec. However, the cancellation of Ford’s three-row EV program has led to the decision to leave the joint venture.
This year, the Quebec plant faced two significant construction delays, including one in the fall. These delays likely gave EcoPro time to adjust the plant’s equipment to produce the specific cathode types needed for the North American market.
The impact of Ford’s withdrawal could go beyond the company itself. It might affect regional economic plans in Quebec and the wider North American EV manufacturing landscape. Additionally, it may prompt other automakers to keep their supply chain strategies flexible as the EV market continues to evolve.
https://evne.ws/3ZrL56V
ITALY INCREASES TAXES ON GAS VEHICLES TO PROMOTE CLEAN TRANSPORT
Italy’s 2025 Budget Law introduces a significant change to encourage environmentally friendly transportation.
The government has doubled the taxes on non-plug-in cars to promote the use of low- and zero-emission vehicles.
This move aligns Italy with a broader European trend of updating national car fleets by shifting away from diesel and petrol-powered cars toward electric and hybrid models.
Starting in 2025, the new tax measures will include a 50% increase in taxes on company cars. To make green vehicles more attractive, taxes on Battery Electric Vehicles (BEVs) will be reduced to 10%, and those on Plug-in Hybrid Electric Vehicles (PHEVs) will drop to 20%, according to Fleet Magazine.
Italian companies are already responding by adding electric vehicles to their fleets to meet corporate social responsibility goals. This proactive change not only allows companies to benefit from the upcoming tax cuts but also supports Italy’s environmental objectives.
However, higher taxes on non-electric cars may pose challenges for employees, especially since average salaries in Italy are relatively low compared to the high cost of living. This economic pressure could affect individuals who rely on traditional cars for their daily commutes and other personal transportation needs.
Italy’s strategy mirrors successful approaches used by other European countries leading in electric vehicle adoption. For example, Norway has been a leader by exempting BEVs from the 25% VAT since the 1990s. Similarly, Denmark offers substantial tax and VAT exemptions to encourage electric vehicle use. These examples demonstrate that financial incentives can effectively accelerate the transition to cleaner transportation options.
https://evne.ws/4fCtheT
NISSAN URGES UK TO RELAX EV RULES AMID LOW SALES
Nissan has asked the UK government to rethink its electric vehicle (EV) rules. The company argues that weak consumer demand is making it hard for manufacturers to meet the government’s Zero Emissions Vehicle (ZEV) targets, which could lead to heavy fines.
On November 20, Nissan joined other major carmakers like BMW, Ford, Stellantis, Tesla, Toyota, and Volkswagen in meeting with Transport Secretary Louise Haigh and Business Secretary Jonathan Reynolds. They discussed the move to electric vehicles and the tough requirements of the ZEV mandate. Representatives from groups such as the Society of Motor Manufacturers and Traders (SMMT), ChargeUK, and the British Vehicle Leasing and Rental Association also voiced their concerns.
Despite these concerns, the UK government remains committed to the 2030 deadline to phase out cars that run only on combustion engines. While some hybrid cars will still be allowed until 2035, the government has not addressed the immediate worries about the ZEV mandate. This leaves room for possible changes in the future, but no clear plans have been announced.
The challenge for carmakers is evident in current sales figures. In 2024, about 300,000 new electric vehicles were sold in the UK, making up 18.1% of the market so far this year. This is an increase from 16.3% the year before but still falls short of the 22% target. A recent warning from a trade group indicates that the UK is likely to miss its 2024 goals, highlighting the need for more flexible policies.
https://evne.ws/3V4j7LH
DS 8 FASTBACK: LUXURY EV WITH 466-MILE RANGE
DS is set to unvil it’s new DS 8 electric fastback, which boasts an impressive range of 466 miles (750 kilometers) WLTP on a single charge.
That’s EQS territory.
The DS 8 achieves its extended range through significant aerodynamic improvements. Features like active air intakes in the front bumper and a redesigned windscreen and bonnet contribute to a sleek appearance.
While the DS 8 shares design elements with the Peugeot e-3008 and Vauxhall Grandland, it stands out as a more streamlined and luxurious option in its segment.
The DS 8 is expected to make its full debut before the end of the year, marking a significant milestone for the French premium brand. It will replace the current DS 9 saloon, aiming to strengthen DS’s presence in the European market, where the brand has struggled to establish a strong foothold.
A decade after becoming a standalone brand, DS is intensifying its efforts to compete with established players in the luxury EV sector.
https://evne.ws/4fAVJgV
HONDA LAUNCHES SOLID-STATE EV BATTERY LINE
Honda has advanced its electric vehicle (EV) ambitions by unveiling its first all-solid-state battery demonstration production line.
Solid-state batteries offer significant advantages over traditional lithium-ion batteries, including higher energy density and improved safety. Unlike many automakers that have limited their efforts to laboratory experiments, Honda is gearing up for large-scale production. A Honda spokesperson remarked, “It’s not merely trying to establish a lab-level technology,” emphasizing the company’s intent to expand production capabilities.
The facility is designed to replicate the processes needed for mass manufacturing. Equipped with state-of-the-art machinery, the line can precisely weigh and mix electrode materials, coat and roll-press electrode assemblies, form cells, and assemble modules. This setup allows Honda to fine-tune its battery cell specifications while preparing for large-scale production.
Honda plans to introduce EV models featuring this solid-state battery technology in the late 2020s.
Successful mass production could lead to cheaper batteries, longer battery life, faster charging, and enhanced vehicle performance, all of which are essential for increasing EV adoption worldwide.
https://evne.ws/3AV3v6l
LOTUS EMBRACES HYBRIDS AMID EV MARKET SHIFT
Lotus has changed its plan to become a fully electric vehicle (EV) brand by 2028. Instead, the company will now offer hybrid versions of its upcoming models. This shift comes as luxury buyers show hesitation towards fully electric cars.
At a recent motor show in Guangzhou, China, the Lotus CEO introduced the new ‘Super Hybrid’ technology. This system combines ultra-fast plug-in charging with a turbocharged combustion engine, aiming to deliver a range of 680 miles (1,095 kilometers). While specific models were not named, experts believe this technology will enhance the current Eletre large SUV and Emeya large saloon EVs, as well as a new SUV designed to compete with the Porsche Macan.
This change occurs as plug-in hybrids (PHEVs) and extended-range EVs (EREVs) become more popular in China. Many car manufacturers are adjusting their strategies to meet this growing demand. For example, Zeekr, another premium EV brand under Geely like Lotus, has also announced plans to introduce PHEV models soon.
Previously, Lotus had dismissed PHEV options, arguing that they affect drivability compared to pure electric systems. Feng pointed out that PHEVs usually need to be plugged in daily to maximize their electric power. EREVs can also slow down when the battery runs out and the internal combustion engine (ICE) starts. To address these issues, Lotus promises that their ICE will charge the battery much faster than other EREVs, reducing the need to rely solely on the combustion engine.
https://evne.ws/4fTFsDJ
BMW LAUNCHES NEXT-GEN NEUE KLASSE MODELS AT HUNGARIAN FACILITY
BMW has begun producing all-electric test vehicles at its new Debrecen, Hungary plant, marking a pivotal step in the company’s electric vehicle (EV) strategy. These initial models are not available for sale but are essential for testing the all-electric X variant of the Neue Klasse series.
This move demonstrates BMW’s progress in validating its manufacturing processes. The company plans to start full-scale production by the end of 2025.
Details about the all-electric X model remain limited, with test vehicles observed wearing heavy camouflage. Earlier sightings came from the BMW Vision Neue Klasse X study released in spring, featuring an electric SUV prototype.
https://evne.ws/4905PFH
CATL BOOSTS EUROPEAN BATTERY RECYCLING AMID EXPANSION
CATL, the world’s top electric vehicle (EV) battery manufacturer, is expanding its battery recycling operations across Europe, Bloomberg reports. This initiative coincides with CATL’s plan to start producing battery cells at a new facility in Hungary, set to begin operations in late 2025.
Jason Chen, CATL’s Europe regional head, mentioned that the company is negotiating with several European governments, including Hungary, to find ideal locations for these recycling centers. By handling recycling locally, CATL aims to support its manufacturing activities in Europe and cut down on transportation dependencies.
Beyond recycling, CATL is also in early talks with regional suppliers to secure raw materials within Europe. The recycling efforts might involve partnerships with local businesses or utilize CATL’s subsidiary, Guangdong Brunp Recycling Technology Co., to enhance the sustainability and strength of its supply chain.
The upcoming plant in Hungary represents CATL’s largest new investment in Europe. Initially, the facility is expected to produce 40 gigawatt-hours (GWh) of battery capacity each year.
CATL serves major car manufacturers like Tesla, Volkswagen, Nio, Xpeng, Toyota, and Honda. In China’s market, CATL held a 42.8% share in October, installing 25.32 GWh (around 91.2 gigawatt-hours) of EV batteries. This marks a significant 50.9% increase from the previous year, according to China EV DataTracker.
https://evne.ws/492aqY6
EU BOOSTS RARE EARTH SUPPLY FOR ELECTRIC VEHICLE SURGE
As the global electric vehicle (EV) market grows rapidly, the European Union (EU) is ramping up efforts to secure its own supply of rare earth minerals essential for sustainable technologies. This strategy aims to lessen the EU’s dependence on China, which currently controls over two-thirds of the world’s production of key metals like lithium, cobalt, and nickel.
Rare earth minerals are crucial not just for EV batteries but also for wind turbines and other renewable energy systems. With the push for green energy gaining speed, the demand for these materials is expected to rise sharply. To address this, the EU has set ambitious goals to ensure that by 2030, 25 percent of its rare earth mineral needs will come from recycling. This is a significant jump from the current recycling rate of less than 1 percent in the region.
Experts warn that reaching these targets will be difficult due to China’s stronghold on the rare earth market. The EU’s reliance on a single supplier makes its supply chain vulnerable, especially amid geopolitical tensions. Recent trade disputes between Brussels and Beijing have highlighted the need for the EU to find alternative sources for these critical materials.
To increase self-sufficiency, the EU has introduced the Critical Raw Materials Act, which came into effect in May for its member states. This law requires that by 2030, at least 10 percent of the rare earth minerals used in the EU must be sourced domestically. This move is part of a larger plan to reduce dependence on imports, as China currently supplies up to 100 percent of the EU’s needs for some critical materials.
https://evne.ws/3UWTjkr
LONDON UNVEIL ELECTRIC BUSES ON ROUTE 358
London is making a stride towards sustainable public transportation with the launch of 20 electric buses by Spanish manufacturer Irizar on Route 358. These buses, resembling trams with their single-deck design, represent a major move towards zero-emission transit on one of the city’s longest bus routes.
The electric buses utilize pantograph charging technology, featuring an arm-like structure on their roofs that allows for quick recharging at the route’s endpoints. Each charging session takes only six minutes, removing the need for traditional overnight garage stops. This rapid charging not only lowers operating costs but also enables Transport for London (TfL) to invest in other network improvements, supporting broader financial and environmental goals.
Aesthetically, the Irizar buses stand out with their sleek, spaceship-like appearance. Their streamlined, curved windscreens and tram-inspired elements, such as wheel guards, give them a futuristic look that sets them apart from regular buses.
Bus-News.com writes: “With this deployment, route 358 has become the first in London to use ultra-fast opportunity charging. Irizar e-mobility has also provided chargers from Jema Energy (an Irizar Group member company). The infrastructure consists of two ultra-fast 450 kW chargers at each end of the line, as well as 100 kW chargers for the depot.
The buses feature the latest generation of Irizar Group batteries. The ultra-fast pantograph chargers with an inverted system make it possible for them to recharge in less than six minutes.”
https://evne.ws/3CACNAD
EXXONMOBIL AND LG CHEM STRENGTHEN U.S. LITHIUM SUPPLY
ExxonMobil and LG Chem have forged a pivotal partnership to enhance the United States’ lithium supply chain, crucial for the rapidly expanding electric vehicle (EV) market. On November 20, 2024, ExxonMobil signed a memorandum of understanding (MOU) to supply LG Chem with up to 100,000 metric tons (approximately 220,462 short tons) of lithium carbonate over multiple years. This agreement highlights the increasing need for secure, domestic sources of essential minerals that power the EV industry.
The lithium will be extracted from ExxonMobil’s upcoming U.S. project and supplied to LG Chem’s new cathode production facility in Tennessee. The Tennessee plant, which began construction in December 2023, is expected to produce 60,000 metric tons (about 132,277 short tons) of lithium carbonate annually, positioning it as the largest facility of its kind in the United States. This strategic location offers significant advantages for raw material imports and efficient distribution to customers.
https://evne.ws/3ANXfgP
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