Article Type: News

European battery supply chain boosted by two new projects

As battery-electric vehicles (BEV) move from the realms of alternative fuel to mainstream automotive technology, the supply chain for the critical component, the battery, needs to be shortened.

Currently, the industry relies on shipments from Asia. To maintain efficiency and reliability of supply as the production of BEVs increases within Europe, a closer network of gigafactories is required. In recent days, announcements suggest efforts are being made to establish a European supply network, saving the industry from potential issues, as seen with the recent semiconductor shortage.

A new company, Italvolt, will establish a gigafactory in Italy, with the first phase of the project scheduled for completion by 2024. Lars Carlstrom, former founder and shareholder of the Britishvolt project created the new company.

Italvolt states that its factory will employ around 4,000 people and be the largest in Europe, with an initial capacity of 45GWh, increasing to 70GWh. The 300,000m2 facility will be built in a yet-to-be-determined location in the country, with investment projected at €4 billion.

‘With the gigafactory project, Italvolt wants to give an important answer to the historic opportunity of green industrialisation, which is affecting all production sectors in a transversal way, representing a turning point for the global economy,’ commented Carlstrom.

The company states that demand for batteries in Europe, primarily driven by the automotive market, will hit 565GWh by 2030, behind only China, with an expected demand of 1,548GWh. Locating its factory in Italy gives it access to another market area, with carmakers such as Stellantis manufacturing in the country.

UK ambition

Following Brexit uncertainty, the UK has seen a swathe of announcements in recent months that have boosted the country’s automotive industry. Vehicle electrification is driving these investments, with the aforementioned Britishvolt project and news that Nissan will bring battery manufacturing to the country.

There could now be a third project that would see a gigafactory developed in Coventry, with the city’s council entering a partnership with the owners of Coventry Airport.

The joint venture partners will develop proposals and submit an outline planning application for a gigafactory in 2021. This will take place alongside regional discussions with battery suppliers and automotive manufacturers to secure the long-term investment.

The UK’s West Midlands area is home to several carmakers, including Jaguar Land Rover (JLR), BMW, and LEVC and Aston Martin Lagonda. The UK government has made up to £500 million (€577 million) available for investment in a battery-manufacturing facility, and the area will be tendering a bid for funding from this pool.

‘Coventry has emerged as a world leader in battery technology,’ said George Duggins, Coventry City Council leader. ‘The city is home to the UK Battery Industrialisation Centre, world-leading research institutions, and the UK’s largest carmaker, JLR, and it is clear to me that Coventry is the right location.

‘Coventry Airport sits at the heart of this powerful automotive research cluster and is the obvious location for a UK gigafactory. It will immediately plug in to a mature automotive supply chain and skills eco-system.’

The plans will have been boosted by news that JLR is to transition its Jaguar brand to a BEV-only marque by 2025, while Land Rover will launch six new battery models, with manufacturing centred in the UK. A supply of batteries on their doorstep would make sense, cutting delivery times and improving the carbon footprint of their BEVs with reduced shipping.

Jaguar makes BEV and hydrogen changes on path to net zero

Jaguar is to become an electric-only brand by 2025, as part of parent company Jaguar Land Rover’s (JLR) plans to be a zero-carbon business by 2039.

As part of a new strategy, presented by CEO Thierry Bolloré, JLR has set a path for a sustainable future. The Reimagine plan will see Land Rover produce six battery-electric vehicles (BEVs) in the next five years, with the first variant arriving in 2024. Jaguar will transition all models to BEVs by the middle of the decade.

The carmaker is looking to achieve net-zero carbon emissions across its supply-chain, products and operations by 2039. As part of this, JLR is preparing for the expected adoption of fuel-cell technology, in line with a maturing of the hydrogen economy.  Fuel-cell prototypes are set to be seen on UK roads in the next 12 months as part of a long-term investment programme.

‘Jaguar Land Rover is unique in the global automotive industry,’ commented Bolloré. ‘Designers of peerless models, an unrivalled understanding of the future luxury needs of its customers, emotionally rich brand equity, a spirit of Britishness and unrivalled access to leading global players in technology and sustainability within the wider Tata Group.

‘We are harnessing those ingredients today to reimagine the business, the two brands and the customer experience of tomorrow. The Reimagine strategy allows us to enhance and celebrate that uniqueness like never before. Together, we can design an even more sustainable and positive impact on the world around us.’

JLR will make an annual commitment of around £2.5 billion (€2.9 billion) to the plan, including investments in electrification technologies and the development of connected services to enhance the customer experience.

Underpinnings

Land Rover will use its forthcoming modular longitudinal architecture (MLA) platform for upcoming hybrid and BEV models, while also using the company’s electric modular architecture (EMA). Jaguar will build future models on a platform designed exclusively for pure-electric models.

This is part of a plan to consolidate platforms across the business, allowing JLR to focus on efficiency in production and quality of the finished product. It will also help to rationalise sourcing and accelerate investments in the supply chain.

The announcement also included confirmation that JLR will continue to build vehicles in the UK. Its plant in Solihull will become home to Jaguar’s BEV models, while also manufacturing the MLA. The replacement of the current Jaguar XJ model will also not be pursued. With its West Midlands plant geared up for BEV production, it is likely JLR’s site at Castle Bromwich will be repurposed.

The company will substantially reduce and rationalise its non-manufacturing infrastructure. Its executive team and other management functions will move to its Gaydon site to aid cooperation.

Show of faith

The move is good news for the UK automotive industry, which is finding its feet again after years of Brexit uncertainty. JLR’s commitment to the country follows Nissan’s announcement that it will invest in its Sunderland plant and bring battery manufacturing to the country.

‘The news that the UK’s largest automotive business has confirmed its long-term commitment to the UK is very welcome and is an injection of confidence into the wider sector,’ commented Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT). ‘Its roadmap to a future that is built around sustainability, with electrified and hydrogen models as well as investment in connected and digital technologies, aligns with government ambition and increasing consumer expectations.

‘Delivering this ambition, however, will require the UK to improve its competitiveness. The UK automotive industry is essentially strong, innovative and agile, but the global competition is fierce. The UK government must ensure advanced manufacturing has its full support, with a policy framework and plan for growth that reduces costs, accelerates domestic battery production and electrified supply chains, and incentivises R&D and skills development. Every effort must be made to create conditions that will enable the entire sector to flourish.’

Electric future

JLR’s decision to turn its Jaguar brand into an electric-only marque is in line with an industry that is starting to fully embrace the zero-emission technology after years of development. The timescale, stopping the sale of internal combustion engines in around four years, may sound ambitious. However, Jaguar already has a BEV model on the market, the I-Pace, while it has also shortened the number of non-electric models it offers in recent years as part of financial cutbacks.

Therefore, the company is ideally placed to make this announcement with such a short timeline. It will hope that it can achieve these targets before its main rivals, including Audi, BMW and Mercedes-Benz, and therefore take advantage of shifting consumer attitudes towards luxury BEVs.

The move to bring hydrogen fuel-cell vehicles to test this year also shows the company’s proactive thinking. With electric drivetrains moving from development to production, carmakers now have space to consider the alternative fuel. Hydrogen can produce the range and refuelling times of internal combustion engines, while also producing zero emissions. The technology is already used by Toyota and Hyundai.  JLR partner BMW is planning to bring a hydrogen model to market next year.

VW Group and Microsoft to collaborate on cloud-based developments

Volkswagen (VW) Group is to collaborate with Microsoft to build a cloud-based automated-driving platform (ADP) to deliver the technology on a global scale.

The platform will be built on Microsoft Azure, the tech giant’s cloud-computing software, and will see VW Group’s Car.Software Organisation increase the efficiency of development of both advanced driver-assistance systems (ADAS) and automated-driving functions for passenger cars across all brands.

The two companies have been collaborating on the VW Automotive Cloud since 2018. This software will span all of the carmaker’s digital services and mobility offerings. The extended partnership is another example of carmakers seeking the tech industry’s help to simplify development and to push forward with new digital solutions as the automotive industry transitions towards a technology-focused future.

VW and Microsoft plans
Source: Volkswagen Group

‘As we transform Volkswagen Group into a digital-mobility provider, we are looking to continuously increase the efficiency of our software development,’ said Dirk Hilgenberg, CEO of the Car.Software Organisation. ‘We are building the ADP with Microsoft to simplify our developers’ work through one scalable and data-based engineering environment. By combining our comprehensive expertise in the development of connected driving solutions with Microsoft’s cloud and software-engineering know-how, we will accelerate the delivery of safe and comfortable mobility services.’

Driver assistance

Building ADAS and autonomous vehicles will improve safety while reducing congestion and therefore helping combat air pollution. To do this, carmakers need large-scale computational capabilities, analysing petabytes of data from road and weather conditions to obstacle detection and driver behaviours.

This data will help AD functions through training, simulation and validation. Machine-learning algorithms that learn from billions of real and simulated miles driven are key to connected-driving experiences.

VW Group’s Car.Software Organisation will address these challenges, thanks to its partnership with Microsoft, by simplifying the developer experience and leveraging the ‘learnings from miles driven’ through one database comprising real-traffic data from the group’s vehicles and simulation data.

‘ADP will help reduce the development cycles from months to weeks and efficiently manage the huge amount of data,’ the companies said. Work will start on ADP immediately, and both VW Group and Microsoft are looking to continuously expand the functional scope of the development platform.

Going digital

The entire automotive industry is shifting to become more digital and reap the benefits of connected vehicles and cloud-based technologies. By 2025, VW Group hopes to have invested around €27 billion in digitalisation while increasing the amount of in-house software development in the car to 60%, up from 10% today.

While digitalisation allows for a more straightforward development process, it also enables VW Group to provide new services and options to drivers after leaving the dealership. Using Azure, the carmaker can develop and test both ADAS and AD features before deploying them across the vehicle fleet, much like new operating systems on phones and computers. This means all VW Group cars would benefit from new developments, rather than those yet to be sold.

This could also open new profit streams, as carmakers developing over-the-air updates (OTA) can sell new features or existing optional extras to drivers who only have base-model vehicles. In time, such services could be opened up to third-party developers who can then help drivers to create a more ‘personalised’ version of their vehicle.

No talks between Hyundai-Kia and Apple

Hyundai Motor Company is not in talks with Apple over autonomous electrically-chargeable vehicles (EVs). The companies ended wide-spread speculation over a potential collaboration on Monday (8 February) with a regulatory filing.

The announcement dealt a $3 billion (€2.49 billion) blow to the carmaker’s market value, with its stocks sliding by 6.2%. Kia, as the rumoured potential operational partner, saw a 15% drop on the stock market, equalling a $5.5 billion loss in value.

Cooperation requests

‘We are receiving requests for cooperation in joint development of autonomous electric vehicles from various companies, but they are at early stage and nothing has been decided,’ the carmakers said in an investor update, as reported by Reuters.

‘We are not having talks with Apple on developing autonomous vehicles,’ it confirmed. Autovista Group’s Daily Brief did contact Hyundai, Kia and Apple for further comment on this latest revelation, but no response was received prior to publication.

Rumours had been rife over the potential battery-electric vehicle (BEV) tie-up. ‘We are agonising over how to do it, whether it is good to do it or not,’ a Hyundai executive aware of the Apple discussion said last month. ‘We are not a company which manufactures cars for others. It is not like working with Apple would always produce great results.’

Collaborative company

Hyundai is well known for its collaborative efforts across the board. These include everything from sponsoring global EV challenges, to investing in autonomous vehicle start-ups and even getting involved in robotics. So, the supposed talks with Apple fell well within the possible activity of this cooperative corporate mindset.

Addressing the company at the start of this year, company chairman Euisun Chung outlined the importance of this approach alongside its effort to become a global EV powerhouse as it launched its Electric Global Modular Platform (E-GMP), which will power its new Ioniq line-up.

‘With the launch of new vehicles based on the recently-released, electric-vehicle platform, the E-GMP (Electric-Global Modular Platform), we plan to provide attractive eco-friendly mobility options that aptly reflect customers’ diverse tastes and needs at more reasonable prices,’ he said.

‘Furthermore, our hydrogen fuel-cell technology, recognised as the world’s most advanced, will be expanded to diverse mobility and industrial sectors to help achieve carbon neutrality under the ‘HTWO (Hydrogen + Humanity)’ brand.’

This focus on electrification and hydrogen falls into a wider automotive trend, which emphasises the need for zero-emission mobility alongside the digitisation of vehicles. The sector is developing greener, smarter cars not only to meet emissions targets but also rising customer expectations. Consumer are becoming increasingly enveloped by new technologies, with mobile phones capable of connecting to every aspect of their lives, so the automotive industry is left playing catch-up.

Daimler to become Mercedes-Benz as it spins off truck business

Daimler is to undergo a fundamental change in its structure, spinning off its trucks business and renaming itself Mercedes-Benz. The move is intended to help the company unlock the full potential of its business in a zero-emission future.

Daimler Truck will become a listed company with a majority stake distributed to Daimler shareholders. Mercedes-Benz will continue to develop models for both the passenger car and van markets. Diverging the business will allow each unit to focus on new technologies that are impacting their respective sectors.

Signs of a shift in policy emerged last year when Daimler announced it was developing hydrogen systems for its trucks business while cancelling plans for fuel-cell-powered cars. As the commercial and car markets are likely to take different paths towards zero-emissions, each company will now be able to put funding and resources into its own development rather than share the pot and restrict development as a result. The split is expected to occur at the end of this year, with an extra-ordinary shareholder meeting in Q3 to discuss the final plans and obtain approval.

Corporate structure

‘This is a historic moment for Daimler. It represents the start of a profound reshaping of the company. Mercedes-Benz Cars & Vans and Daimler Trucks & Buses are different businesses with specific customer groups, technology paths and capital needs.’ said Ola Källenius, chairman of the board of management of Daimler and Mercedes-Benz.

‘Both companies operate in industries that are facing major technological and structural changes. Given this context, we believe they will be able to operate most effectively as independent entities, equipped with strong net liquidity and free from the constraints of a conglomerate structure,’ he added.

As part of a more focused corporate structure, both Mercedes-Benz and Daimler Truck will be supported by dedicated captive financial and mobility service entities. The company plans to assign resources and teams from its current Daimler Mobility business to both brands.

‘We have confidence in the financial and operational strength of our two vehicle divisions. And we are convinced that independent management and governance will allow them to operate even faster, invest more ambitiously, target growth and cooperation, and thus be significantly more agile and competitive,’ commented Källenius.

Sustainability needs

Daimler had been struggling in recent years, announcing a series of profit warnings and initially struggling with its CO2 targets following the introduction of the Worldwide Harmonised Light-Vehicle Test Procedure (WLTP). Last year, the company managed to turn things around, tripling sales of plug-in hybrid (PHEV) and battery-electric (BEV) vehicles, and forecasting that it met its emissions figures to avoid any EU-sanctioned penalties.

‘We will continue to push forward with our ’Electric first’ strategy and the further expansion of our electric model initiative. Based on our current knowledge, we expect to meet the CO2 targets in Europe again in 2021,’ said Källenius.

With separate CO2 targets for passenger cars and trucks, Daimler will be keen to keep up this momentum, especially with stricter EU regulations for 2025 and 2030. Therefore, separating its trucks business will give Mercedes-Benz more focus on ensuring it meets guidelines by focusing on its electrification plans.

Further strategy

In October, Daimler unveiled a raft of plans that would see Mercedes-Benz focus on the luxury market with a shift to electrically-chargeable vehicles (EVs). The company plans for the number of internal combustion engine (ICE) models it offers to drop 70% by 2030. Part of this plan could see its range of compact models decrease as it focuses its product portfolio on the most profitable parts of the market.

‘We intend to build the world’s most desirable cars,’ said Källenius at the time. ‘It is about leveraging our strengths as a luxury brand to grow economic value and enhancing the mix and positioning of our product portfolio. We will unlock the full potential of our unique sub-brands – AMG, Maybach, G and EQ. Our strategy is designed to avoid non-core activities to focus on winning where it matters: dedicated electric vehicles and proprietary car software. We will take action on structural costs, target strong and sustained profitability.’

By divesting itself of Daimler Trucks, the carmaker can now focus on expanding new technologies in the passenger car market, including expanding its EQ line-up of BEVs. It plans to increase its range in the shortest space of time, meaning product development resources and expertise will be shifted to electric-drive projects.

Will there be a physical motor show in 2021?

The possibility of physical automotive shows in 2021 is still uncertain, even with vaccination programmes underway around the world to fight the COVID-19 pandemic.

Although countries worldwide are administering vaccines, it will take some time to inoculate a majority of their populations, dependent on supply. This adds uncertainty to event planning, as it is unknown what restrictions will be in place during the second part of this year. Until June, any events will likely be online-only, as infection rates remain too high in many markets to allow for mass gatherings.

With restrictions on travel, mass gatherings and uncertainty around what regulations will be in place, it is almost impossible to put full itineraries in place. Yet 2021 is set to see several big shows for the industry, two of which are based in Germany, which is currently under lockdown.

Both the IAA in Munich and Automechanika Frankfurt are to take place in September. The IAA, which is set to focus on the expanded theme of mobility with a new format and new venue for this year, is set to become a ‘hybrid’ event, encompassing both physical and digital elements, according to Automotive News Europe.

The report states that virtual events will help to increase the show’s reach and make it more attractive for exhibitors and visitors. Carmakers will have the opportunity to send marketing messages to their target groups on various digital channels using different communication methods. The IAA had not responded to Autovista Group’s request for comment at time of publication.

It is reported that while Germany’s domestic brands, such as BMW, Volkswagen Group and Daimler have signed up to be present, only a handful of foreign carmakers are committed, including Ford, Hyundai and various Chinese brands. It is interesting to note that both Ford and Hyundai have shunned motor shows in recent years.

Other large carmakers are waiting to see how the pandemic plays out. This is likely why the VDA is looking at a virtual element to this year’s event, allowing them to take part safely and without the financial risk associated with a last-minute cancellation.

Clarifying cancellations

Organisers have also sought to clarify what any cancellation would mean in terms of financial penalty to exhibitors. Last month, a post on the IAA website stated that the VDA had ‘revised the current cancellation regulations of its Exhibition Conditions for IAA Mobility 2021.’

Should the VDA cancel the event, as a result of force majeure or unforeseeable circumstances, the organisation will ‘bear almost the entire risk and shall retain only 10% of the stand rent, even if the decision to cancel occurs during the event. In addition, exhibitors who are not permitted to travel to the show owing to state-imposed bans in Germany or another country, and whose stand operation, therefore, becomes impossible, ‘shall also receive a generous reimbursement of their stand rent.’

This statement has likely been made following the uncertainties surrounding the 2020 Geneva International Motor Show (GIMS), which was called off days before it was due to take place. This was seen as force majeure, with the Swiss government installing restrictions on mass gatherings, and as such, organisers initially stated they would be offering no refunds. However, they later agreed to refund as many exhibitors as possible, with a sale of the event to new organisers to help facilitate this.

‘A majority of GIMS exhibitors who took part in a survey stated that they would probably not participate in a 2021 edition and that they would prefer to have a GIMS in 2022,’ the GIMS organising foundation said at the time of the sale.

Write off?

Instead of a physical event last year, GIMS moved quickly to become an online-only event, with keynotes and press conferences, as well as the annual Car of the Year awards, hosted on its website. However, it was a very basic affair due to the timing of the cancellation.

GIMS set a precedent for online motoring events. This year’s CES was virtual with online exhibitor booths. The virtual event allowed for hundreds of companies to present their products and new developments to a global audience, while ensuring no one was put at risk. This did feel very different to previous shows however, without the physical ability to explore and discover new companies and technologies. The question is, therefore, if in the first months of 2021 no physical events go ahead,  , should the whole year be written off to remove uncertainty and allow organisers and exhibitors to begin thinking about 2022 instead?

The North American International Auto Show (NAIAS) organisers have chosen another option, cancelling their 2021 event but arranging a new show, Motor Bella,  which will act as a ‘bridge to the future’, allowing them to test a new concept while ensuring COVID-19 compliance is kept in place.

The Motor Bella event will run from 21-26 September in Michigan, at the M1 Concourse, an 87-acre outdoor location.

‘The pandemic has caused changes in our society and world in ways not previously imagined, and we all should be looking for new and highly creative ways of doing business,’ said executive director Rod Alberts. ‘This new event captures that creative spirit. It will provide new mobility experiences and increasingly innovative approaches to tapping into the industry and its products.’

Whatever happens with the vaccination programmes around the world, it is clear that event organisers are having to prepare for multiple probabilities when it comes to motoring events.

EU states commit to sustainable battery development

The European Commission has approved a second Important Project of Common European Interest (IPCEI) that will see €2.9 billion handed out to carmakers, suppliers, technology businesses and energy companies to support research and development in the battery value chain.

The European Battery Innovation project has been prepared and notified by 12 member states. It will see companies such as Tesla, BMW, Fiat Chrysler Automobiles (FCA), Northvolt and Enel X share the funding across four areas of the battery supply chain. The public backing is expected to help unlock an additional €9 billion in private investments, as the Commission seeks to vastly improve Europe’s standing in battery manufacturing. The overall project is expected to be completed by 2028, although each sub-project will have different deadlines within this timeframe.

Funding will cover the entire battery value chain, from the extraction of raw materials, design and manufacturing of battery cells and packs, to the recycling and disposal of units in a circular economy, with a strong focus on continued sustainability.

New technologies

It is hoped that the funding will spur the development of next-generation battery technology that can power vehicles while being produced with little or no impact on the environment. The Commission hopes that the IPCEI will help develop battery technology further, including technological breakthroughs in cell chemistries and production processes, all of which will be in addition to what the first IPCEI, established in 2019, will accomplish.

‘For those massive innovation challenges for the European economy, the risks can be too big for just one member state or one company to take alone,’ comments executive vice president Margrethe Vestager, in charge of competition policy. ‘So, it makes good sense for European governments to come together to support industry in developing more innovative and sustainable batteries. This project is an example of how competition policy works hand in hand with innovation and competitiveness.

‘With significant support also comes responsibility: the public has to benefit from its investment, which is why companies receiving aid have to generate positive spillover effects across the EU.’

Environmental impact

The big focus of the project is sustainability. There is increased awareness of the carbon impact of vehicle electrification, as it starts its big push for market domination. Taking over from fossil-fuel-based technology, and championing the sustainable position for the automotive industry, companies need to increase awareness of the entire production cycle and its impact on carbon emissions.

‘The batteries value chain plays a strategic role in meeting our ambitions in terms of clean mobility and energy storage,’ said Thierry Breton, commissioner for internal market. ‘By establishing a complete, decarbonised and digital battery value chain in Europe, we can give our industry a competitive edge, create much-needed jobs and reduce our unwanted dependencies on third countries – in short, make us more resilient. This new IPCEI proves that the European Battery Alliance, an important part of the EU industrial policy toolbox, is delivering, he added.’

Companies involved in EU battery value chain IPCEI

Unternehmen, die an der EU-Batterie-Wertschöpfungskette beteiligt sind IPCEI

Source: European Commission

The project will involve 42 direct participants, including small and medium-sized enterprises (SMEs) and start-ups with activities in one or more member states. The direct participants will closely cooperate through nearly 300 envisaged collaborations, and with over 150 external partners, such as universities, research organisations and SMEs across Europe.

Volkswagen Group narrowly misses CO2 targets

Volkswagen Group (VW) narrowly missed its EU CO2 fleet targets for 2020. The manufacturing group fell short, albeit by only 0.5 g/km, even after entering pools with other manufacturers like SAIC Motors bringing the average down to 99.3 /km. This will mean a fine for the company, for which it set aside provisions earlier on. VW did manage to lower its new passenger-car fleet emissions to 99.8g/km, a reduction of roughly 20% compared to 2019.

The German manufacturing giant points to two of its major brands, Audi and Volkswagen Passenger Cars (VWPC), as driving down fleet emissions with their respective electric offensives. Notably, the luxury brands Bentley and Lamborghini were measured individually, and so were not included in the overall fleet total.

‘We are making good progress on the road to becoming a CO2-neutral company. We significantly reduced the CO2 emissions of our new vehicle fleet in the EU,’ said Herbert Diess, VW CEO. ‘The Volkswagen and Audi brands in particular have made a major contribution to achieving this with their e-offensive. We narrowly missed the fleet target for 2020, thwarted by the COVID-19 pandemic. Along with Volkswagen Passenger Cars and Audi, Cupra and Škoda are now bringing out further attractive electric models. This will allow us to achieve our fleet target this year.’

Electric offensives

Both Audi and VWPC were able to meet their CO2 fleet targets, thanks in a large part to their electric offensives with the ID.3 and e-Tron respectively. Based on the Modular Electric Drive (MEB) platform, the ID.3 saw 56,500 deliveries last year. Roughly 212,000 electric VWPC vehicles were handed over to customers during the last 12 months, including some 134,000 battery-electric vehicles (BEVs). Meanwhile, the Audi e-Tron (including Sportback models) recorded a significant increase in demand in 2020, with year-on-year growth of 79.5%, up to 47,300 vehicles.

So, as BEV front-runners, Audi and VWPC represented increased traction for the group, which saw a fourfold increase in deliveries of electric models in the Europe, including the UK, Norway and Iceland. A total of 315,400 electrically-chargeable vehicles (EVs) were delivered in 2020, compared to 72,600 in the previous period. BEVs and plug-in hybrids (PHEVs) accounted for 9.7% of VW’s deliveries last year, up from 1.7% in 2019. The group therefore asserts this makes it ‘the clear market leader in the all-electric segment in Western Europe,’ given that it claimed a quarter of the market, up from a 14% share in 2019.

‘Despite very ambitious efforts in electrification, it has not been possible to meet the set fleet target in full. But Volkswagen is clearly well on its way,’ said Rebecca Harms, member of the independent VW Sustainability Council. ‘Work has to continue systematically to bring about the drive transformation and meet climate and sustainability targets. The key to success will be to give a greater role to smaller, efficient and affordable models in the electrification rollout.’

VW will step up its electric offensive this year with a large number of new BEVs based on the MEB platform. Audi will start 2021 with the Q4 e-Tron2 and Q4 e-Tron Sportback2. Meanwhile, Cupra will launch the el-Born2 and Škoda will deliver the Enyaq iV3. VWPC will launch its electric SUV, the ID.4, in a number of additional markets and present a new all-electric model.

Faster EV-charge points will help reduce charge anxiety

With the development of electrically-chargeable vehicles (EVs) driving forward at a pace, range anxiety will soon be a thing of the past. However, this could be replaced with charging anxiety, where consumers fear the infrastructure’s availability, the time it takes and the ease of use.

Therefore, developing EV charging is of equal importance to the market, in order to make consumers comfortable with the new technology. There is likely to be a push to create more efficient and easy-to-use charging posts that will benefit drivers and operators of charging sites.

Siemens is one company pushing development to meet these needs. The company has announced a new public fast-charger, named the Sicharge D, which is suited for highway and urban locations where drivers require a quick battery top-up, such as shopping centres and parking locations.

The post is capable of charging at up to 1,000 volts, with scalable charging power of up to 300kW and a peak efficiency range of 96%. This figure is helped by a dynamic power-sharing feature, which accounts for each connected car’s power demand and automatically adapts the charging process to the EV’s battery technology and charging status. This ensures that the connected cars get the maximum power they need without any additional manual intervention. 

Future proofing

The 96% efficiency rate means almost all the power picked up by the point from the grid is transferred to the vehicle, reducing wastage and helping to keep operating costs down for the operator.

Siemens is also aware of the need for charging points to adapt as charging capacities of EVs continue to improve in a developing market. This may mean that compared to today’s models, vehicles in the future could accept higher charging power and demand higher voltage ranges, especially if the battery is able to be recharged in a shorter space of time.

This demand is met through the scalable-charging power up to 300kW, either from the start of installation or through plug-and-play upgrades. Furthermore, the charger already supports voltages between 150 and 1,000 volts and currents of up to 1,000 amps across all DC outlets. This means it can cater for full-power loads for future 800 volt vehicles, as well as the lower-voltage charging rates demanded by current EVs.

‘With its upgradability and dynamic charging, it is a big step forward to support the future of electromobility. Our customers can be sure to be prepared for future eventualities of electromobility, be it an increasing number of required charging options or increasing charging speeds,’ said Birgit Dargel, global head of future grids at Siemens Smart Infrastructure. ‘At the same time, it is one of the most efficient fast chargers currently available on the market – an important aspect since building sustainable mobility requires careful handling of the scarce resources we are using.’

Reducing anxiety

The Sicharge D is an example of how technology companies are working to meet the demand for charging infrastructure through new efficient and future-proofed, fast-charging points. By making the post more cost-effective for the operator, more points can be added in a single location. Adding the ability to scale up the point to cover future technologies will also reduce the need to replace them down the line, while also ensuring drivers are able to rely upon them whatever their vehicle type.

Other companies are also likely to develop charging points that offer efficient charging and a user-friendly experience.

Five-minute-charge battery the answer to range anxiety?

Battery developer StoreDot has unveiled its first five-minute-charge battery engineering samples. Working on extreme fast-charging (XFC) technology, the Israeli company is aiming to eliminate range and charging anxiety for electrically-chargeable vehicles (EVs.)

Currently, rapid DC chargers offer some of the quickest charging speeds with a compatible vehicle. An example of this is Lucid Motor’s upcoming Lucid Air, which is reportedly capable of charging rates of up to 20 miles per minute when connected to a DC fast-charging network. Although, with a price tag of $80,000 (roughly €66,000) this luxury sedan’s battery technology cannot be considered widely accessible. If five-minute-charging technology could be introduced into the mass-market, this could remove several significant barriers to wider EV adoption; range anxiety, charge anxiety and wallet anxiety.

Ultra-fast charging

StoreDot is using this first production batch of sample cells to highlight the technology to potential industry partners. It will show OEMs how it replaced graphite in the cell’s anode with metalloid nano-particles, representing a breakthrough in safety, battery cycle life and swelling. In 2019, it demonstrated the full charge of a two-wheeled EV in just five minutes, as can be seen in the video below. 

Developed by Chinese company EVE Energy, StoreDot’s strategic partner, the sample cells do not require significant capital expenditure in bespoke manufacturing equipment. The XFC units are designed to be produced on existing lithium-ion production lines at EVE Energy. The samples are also compliant with UN 38.3, which ensures safety while shipping.

Doron Myersdorf, CEO of StoreDot, said the company is getting one step closer to making its vision of five-minute-charging times a commercial reality. ‘Our team of top scientists has overcome inherent challenges of XFC such as safety, cycle life and swelling by harnessing innovative materials and cell design. Today’s announcement marks an important milestone, moving XFC for the first time beyond innovation in the lab to a commercially-viable product that is scalable for mass production.’

With this, he looks to pave the way for the launch of a second-generation, silicon-dominant anode prototype for EVs later this year. Myersdorf explained; ‘we founded StoreDot to achieve what many said could never be done – develop batteries capable of delivering a full charge in just five minutes. We have shown that this level of XFC charging is possible – first in 2019 with an electric scooter and again six months ago with a commercial drone. We are proud to make these samples available, but today’s milestone is just the beginning. We’re on the cusp of achieving a revolution in the EV-charging experience that will remove the critical barrier to mass adoption of EVs.’

A charge a week

Technological developments like these work alongside the introduction of new EV models into the marketplace, demonstrating to consumers how committed OEMs are to electromobility. This appears to be working as a recent survey carried out by Tusker found that 63% of drivers are considering an EV for their next car. In November last year, the company-car supplier approached over 1,750 employed adults in the UK and found environmental benefits, home-charging and tax benefits all went a long way to swaying respondents.

Of those drivers who said they would consider an EV, 36% believed they could name up to three or more local charging locations they could use. The survey also revealed that 79% of the respondents admitted to driving less than 150 miles a week. The company claims this ‘means models like the Tesla Model 3 (263 miles – 423 kilometres), the Audi e-Tron (220 miles) and even the new Vauxhall Corsa-e (200 miles) will cater for a week of driver journeys on a single charge.’

Three-quarters of respondents believed EVs were within their budget, while the remaining quarter felt they were just for the wealthy. However, the company did point out that these vehicles are affordable on its salary-sacrifice scheme, ranging from £399 per month (€450) for a Tesla Model 3 to £249 per month for a Corse-e (inclusive of maintenance and insurance on a four-year agreement).

As consumers consider the benefits of alternative-ownership methods, alongside the practicality of owning and charging an EV, there is little doubt that advancements like a five-minute-charging time would go far to convince more people that electromobility is a viable option.

Alternative drives made up a quarter of German registrations in 2020

Alternative drives, consisting of hybrid, fuel-cell, gas, hydrogen, and battery-electric vehicles (BEVs), claimed approximately a quarter of all new-car registrations in Germany in 2020. This result came in a year defined by COVID-19, when registrations in the country declined by roughly 20%.

The country’s government sought to use the pandemic as a springboard for a greener economy, with a greater emphasis on electromobility. In November last year, it committed a €4 billion stimulus package to the automotive sector, with funds being channelled into the adaptation of production lines and incentivising the purchase of electrically-chargeable vehicles (EVs).

An electric transformation

With the Kraftfahrt-Bundesamt (KBA) reporting the number of newly-registered BEVs increased by 206% in 2020, compared with 2019, the German automotive market does look to be on track for an electric transformation. Some 13.5% of all newly-registered passenger cars in the country now sport an electrified drivetrain, from BEVs to plug-in electric hybrids (PHEVs) and fuel-cell electric vehicles (FCEVs). The federal states of Schleswig-Holstein, Berlin and Baden-Württemberg played host to a high share of these new EV registrations last year, at over 16%.

‘E-mobility is now at the heart of mobile society. Positive user experiences, reliable technologies and a growing range of products facilitate the switch to e-mobility. With a sustained trend for registrations of vehicles with electric powertrains, around 22% in the last quarter of 2020, the government target of seven to 10 million electric vehicles registered in Germany by the year 2030 can be achieved,’ said KBA President Damm.

Segments and brands

The small-car segment was the strongest, accounting for 29.9% of registrations of new BEVs in 2020. Meanwhile, SUVs made up just under a fifth of the registration volume of new BEVs. The compact segment also reached a high share of this type, with 19.6%.

For BEVs, private registrations made up almost half of all registrations, at 48.8%. For all alternative powertrains, two-thirds were commercial (63.5%), and one third (35.4%) were private. Overall, some 63% of all new-car registrations, including petrol and diesel, were registered for commercial use in 2020. 

A total of 394,940 new EVs were registered last year. VW passenger cars claimed the highest market share at 17.4%, up 608.6% compared with 2019. Meanwhile, Mercedes enjoyed a 14.9% share, up 499.8%, and Audi took 9%, up 607.9%. A total of 194,163 new BEVs were registered in the country in 2020. The VW brand claimed a 23.8% share of this volume, representing a 463.3% increase on the previous year. Renault then followed with a share of 16.2%, up 233.8%, and Tesla captured 8.6%, up 55.9%.

VW achieved the largest share of the EV parc, with 16%, pulling ahead of BMW at 12.3%, and Mercedes at 12.1%. For BEVs, VW claimed a 20.2% share, this time ahead of Renault at 18.1%, Smart at 11.6% and Tesla at 11.1%.

Around 70% of the battery-electric car parc was allocated to the small-car (33%), compact (19.6%) and mini (17.3%) segments. The stock of battery-electric passenger cars in the SUV segment, which has a high number of registrations, reached a share of 14.4%.

While the KBA has yet to confirm the total number of new-car registrations in 2020, at the end of last year Autovista Group’s Schwacke projected a recovery to just under 3.1 million in 2021. This would follow an expected registration volume of 2.9 million new cars in Germany in 2020.

SEAT focuses on safety with eye-tracker glasses

As the number of screens and infotainment systems in new cars grows, so too does the need to keep the driver focused on the road. A 2020 study found that using a touchscreen display can lower reaction times by more than 50%.

‘We must guarantee the minimum interaction time with the screen, and to do this the information must be where users intuitively and naturally look for it,’ said Rubén Martínez, head of SEAT’s smart quality department. So, the carmaker has been looking at a potential solution; a pair of high-tech glasses.

Framing the solution

The wearable technology features eye-tracking capabilities powered by infrared sensors in the lenses and a camera built into the frame. Martínez explained that the sensors are capable of detecting the exact position of the iris at every moment, while everything the user sees is recorded. A 3D-eye-modelled algorithm then interprets this data and pinpoints where the driver is looking.

These glasses could bring clarity on how people interact with all kinds of devices, such as the usability of mobility apps. This would allow SEAT to better understand where users intuitively expect to find information like battery-charge level or remaining range.

Looking for accuracy

The smart quality team is working on a pilot to introduce the eye-tracker glasses in the testing of new models. Currently, the team gathers data from a varying selection of users behind the steering wheel of a SEAT Leon.

‘We’ll ask them, for example, to turn up the temperature or change the radio station and we’ll analyse which part of the screen they’ve directed their gaze at first, how long it takes them to do so and how many times they look at the road while interacting with the device,’ explains Martínez.

Beforehand these tests might have been carried out verbally; asking people about the positioning of information and controls. But Martínez points out that the brain can be deceptive, and where a person thinks they are looking is often not where they actually are. By employing this technology, these studies can gather and use more accurate data.

Interpreting the data

But how is this data understood? The smart quality department employs an algorithm to understand the behaviour patterns of where a driver looks, through a system of indicators. One of which is a heat-zone indicator, which displays the intensity of each focus of attention. ‘The red spot, which indicates the greatest number of impacts, should always be on the road,’ Martínez said.

SEAT Eye Tracker demonstration
Source: SEAT

Another indicator is the order in which the driver looks, revealing where they may expect to find a certain function or instrument. For example, developers might have believed in the past that the lower portion of the screen is the most accessible. But the eye-tracker glasses could reveal that the majority of drivers first look at the upper part of the screen instead.

These usability patterns will be essential in the development of central consoles, helping determine the most useful size, location, and distribution of information for the driver. ‘This technology will help us humanise the interfaces, improving the user experience. With it we’ll certainly go a step further in the quality of the infotainment console of the future,’ Martínez concluded.

By designing cars around genuine human interaction, SEAT’s upcoming generation of vehicles could look very different and function in a completely new way. So, the carmaker must ensure the sample size of drivers in its studies is diverse enough to represent its entire customer base. Otherwise, it could risk alienating under-represented customers. This may include those drivers with particular needs or who have become accustomed to the layout of legacy systems.

Automotive relief at Brexit deal

Following a year of unprecedented difficulties, the European Union and the UK reached an agreement on Christmas Eve for a Brexit deal.

‘It was a long and winding road. But we have got a good deal to show for it,’ said European Commission president Ursula von der Leyen. ‘It is fair and balanced. And it is the right and responsible thing to do for both sides.’

Confirming the long-awaited agreement, UK Prime Minister Boris Johnson estimated the free-trade deal to be worth approximately £660 billion (€735 billion). He described it as a ‘comprehensive Canada-style free-trade deal,’ which means UK goods can be sold without tariffs and quotas in the EU.

As the UK now no longer follows the EU’s rules on production standards, checks on goods have been introduced. This, in turn, creates more paperwork and red tape, which may result in delays if goods arrive at ports unprepared. However, the deal does include a 12-month grace period on some elements of the ‘rules of origin’ declarations, which require exporters to certify goods qualify as locally sourced, allowing them to avoid tariffs. Businesses will have a year to obtain supporting documents form third-party suppliers, giving some companies more time to adapt.

But how has this last minute, 1,246-page Christmas present been received by the automotive sector?

The automotive reaction

The European Automobile Manufacturers’ Association (ACEA) welcomed the deal and the relief it brought as the sector avoids the harsh consequences of a no-deal Brexit. ACEA director-general Eric-Mark Huitema explained that no other industry is more closely integrated than the European automotive sector, which depends upon complex supply chains that stretch across the region.

‘The impact of a no-deal Brexit on the EU auto industry would have been simply devastating, so we are first and foremost extremely relieved that an agreement was reached before the transition period expired,’ Huitema said. ‘Nonetheless, major challenges still lie ahead, as trade in goods will be heavily impacted by barriers to trade in the form of new customs procedures that will be introduced on 1 January 2021.’

ACEA pointed out that compared to when the UK was aligned with the EU, the deal struck by negotiators has introduced much more red tape and regulatory burden. According to ACEA, before Brexit, almost 3 million vehicles worth €54 billion were traded annually between the EU and the UK, and cross-Channel trade in automotive parts accounted for nearly €14 billion.

Phase-in period

In the UK, the Society of Motor Manufacturers and Traders (SMMT) also welcomed news of the agreement as a platform for a future relationship between the EU and UK. It also identified the need for a ‘phase-in period,’ which it stated would be critical to help business on both sides adapt.

‘The tariff-free, quota-free trade industry has called for has been secured in principle. However, the six-year phase-in period and special provisions for electrified vehicles and batteries now make it imperative that the UK secures at pace investment in battery gigafactories and electrified supply chains to create the world-leading battery production infrastructure to maintain our international competitiveness,’ said Mike Hawes, SMMT chief executive.

The SMMT went on to call for the immediate ratification and implementation of the agreement. Members of Parliament in the UK did go on to vote overwhelmingly to back the deal, with the House of Lords also passing the bill off for Royal Assent.

The EU has also identified the need to get the agreement ratified as a matter of ‘special urgency,’ even though it was unable to do so before the UK left the single market. Given the late hour, the Commission proposed to apply the details on a provisional basis for a limited time period until 28 February 2021. The deal was also given unanimous backing by ambassadors from the 27 nations, with written approval from member states.

Now the UK can look to future partnerships with countries like Turkey, with which it recently signed a deal for preferential trading terms. New relationships like these will be essential as the country’s partnership with the EU trading bloc becomes more complex, and it navigates the terms of the deal.

‘Further ahead, we must pursue the wider trade opportunities that Brexit is supposed to deliver while accelerating the UK’s transition to electrified-vehicle manufacturing. With the deal in place, government must double down on its commitment to a green industrial revolution, create an investment climate that delivers battery-gigafactory capacity in the UK, supports supply-chain transition and maintains free-flowing trade – all essential to the UK Automotive sector’s future success,’ said Hawes.

Mercedes-Benz goes on the electric offensive

Mercedes-Benz has announced where its upcoming battery-electric vehicles (BEVs) will be produced, as it goes on an electric offensive. Built in its factories in Germany, the US, and China, these new BEVs will be assembled alongside vehicles powered by internal combustion engines (ICE).

Mercedes-Benz revealed a total of eight EQ BEVs will be in production across seven of its locations by 2022. Spanning three continents, this production map will be essential for the carmaker to achieve its goal of electrically-chargeable vehicles (EVs) making up half of its sales by 2030. The electrification of the manufacturer’s entire product range is a key component of the ‘Ambition 2039’ strategy and a prerequisite on the way to CO2 neutrality.

‘With its ‘Electric First’ strategy, Mercedes-Benz is consistently on the path to CO2 neutrality and is investing heavily in transformation,’ said Markus Schäfer, member of the board of management responsible for Daimler Group Research and COO Mercedes-Benz cars. ‘Our vehicle portfolio becomes electric and thus also our global production network with vehicle and battery factories. We intend to lead in the field of e-mobility and focus in particular on battery technology. We are taking a comprehensive approach, ranging from research and development to production, and also including strategic cooperation.’

Global production

The first Mercedes-Benz electric luxury sedan, the EQS, will launch from Factory 56 in Sindelfingen in the first half of 2021. The electric EQA C-SUV will also be made at the Beijing plant in China next year, after initially entering production at the Rastatt plant in Germany this year. It is a similar story for the EQE, which will be built in the Bremen site in Germany and Beijing in China from next year. Meanwhile, the EQB compact will be built at the Kecskemét plant in Hungary in 2021. The EQS und EQE SUVs will be manufactured in Alabama, US, starting from 2022. The EQC business sedan is already built in Bremen and Beijing.

Battery systems will also be produced and assembled in Germany, Poland, Beijing and Alabama. ‘The local production of batteries is an essential success factor in our electric offensive,’ said Jörg Burzer, member of the board of management for production and supply chain. He explained that the carmaker already produces batteries in Kamenz, Bangkok and Beijing, with a network that is well-positioned for the EQ offensive. ‘The ramp-up of our battery plants in Hedelfingen and Jawor is imminent and our colleagues in Brühl and Tuscaloosa are already preparing to start production in 2022.’

‘The Mercedes-Benz production network is global, digital and flexible, and ready for the upcoming electric offensive – thanks, of course, to our highly qualified and motivated employees worldwide. We are now beginning a real Mercedes-EQ fireworks display,’ said Burzer.

‘Six electric product launches by 2022 underscore the strength and competence of our Mercedes-Benz production sites worldwide. The production network will have a total of six Mercedes-EQ car locations. Local production of highly efficient battery systems plays a central role in the Mercedes-Benz strategy – coupled with a comprehensive sustainability concept that spans the entire life cycle of the battery all the way to recycling,’ he concluded.

Making the battery market more sustainable

The European Commission wants to enforce mandatory requirements on all batteries entering the EU market, which includes applications within the automotive sector, alongside industrial and portable-uses cases.

This could include using responsibly-sourced materials with constrained use of hazardous substances, including a minimum amount of recycled materials, as well as carbon footprint, performance and durability. The Commission argues this would help develop a more sustainable and competitive battery industry across Europe and the wider world.

These requirements come as part of plans that will modernise EU legislation on batteries, focusing on greater sustainability throughout their lifecycle. They also address social, economic, and environmental issues tied to all types of batteries.

The changes complement the Circular Economy Action Plan, a core building block of the European Green Deal. The Commission argues these roadmaps promote competitive sustainability while enabling green transport, clean energy and the attainment of climate neutrality by 2050.

Sustainable and safe

The proposals set out the need for batteries placed on the EU market to become sustainable, high-performing and safe throughout their whole lifecycle. This singles out batteries produced with the lowest level of environmental impact, using materials sourced in full respect of human rights, following social and ecological standards. Under these proposals, at the end of their life cycle, these units should be repurposed, remanufactured or recycled, allowing valuable materials to re-enter the economy.

In addition, providing legal certainty would help unlock large-scale investment and boost the production capacity for innovation and sustainability, to help Europe respond to a fast-growing battery market. ‘Better and more performant batteries will make a key contribution to the electrification of road transport, which will significantly reduce its emissions, increase the uptake of electric vehicles and facilitate a higher share of renewable sources in the EU energy mix,’ the Commission argues.

‘Clean energy is the key to European Green Deal, but our increasing reliance on batteries in, for example, transport should not harm the environment,’ said Frans Timmermans, executive vice-president for the European Green Deal. ‘The new batteries regulation will help reduce the environmental and social impact of all batteries throughout their life cycle. Today’s proposal allows the EU to scale up the use and production of batteries in a safe, circular and healthy way.’

Collection and recycling

With its proposal, the Commission also aims to boost the circular economy of batteries, promoting the more efficient use of resources, and aiming to reduce the environmental impact. From July 2024, only electrically-chargeable vehicles (EV) with a carbon footprint declaration can enter the market.

To improve the collection and recycling of portable batteries, the 45% collection rate should increase to 65% in 2025, and 70% in 2030. Units from the automotive sector meanwhile have to be collected in full. This enables the recovery of valuable materials like cobalt, lithium, nickel and lead.

The use of new technology, like the battery passport and interlinked-data space, will help enable safe data sharing, increase market transparency, and make large batteries traceable throughout their life cycle.

‘This future-oriented legislative toolbox will upgrade the sustainability of batteries in each phase of their lifecycle,’ said commissioner for environment, oceans and fisheries Virginijus Sinkevičius. ‘Batteries are full of valuable materials and we want to ensure that no battery is lost to waste. The sustainability of batteries has to grow hand in hand with their increasing numbers on the EU market.‘

Honda’s UK production pause a sign of things to come?

On Wednesday (9 December), Honda confirmed its Swindon factory in the UK, where it makes the Civic, would pause production due to transport-related parts delays. The carmaker has since confirmed it will not be re-opening the plant until the beginning of next week. Honda confirmed with to Autovista Group Daily Brief that: ‘the situation is currently being monitored with a view to re-start production on Monday 14 December.’

With manufacturers dependent on ‘just-in-time’ supply chains, mounting disruption and delays at UK ports are taking a serious toll. In the wake of COVID-19, these processes had already taken a beating, as parts suppliers and carmakers alike struggled to deal with reduced production capacity and lockdown-induced shutdowns. But with Brexit just weeks away, this could only be the start of a long logistical nightmare for UK-based factories.

Broken supply chains

The temporary pause in production at Honda’s Swindon plant is a exemplifies how manufacturers rely upon ‘just-in-time’ deliveries. Currently, parts arrive exactly when they are needed, as opposed to being stored in a warehouse, adding additional storage costs and complexities. But signs of trouble have already been brewing at container ports in the UK, including the likes of Felixstowe, Southampton and London Gateway.

Last month, the Road Haulage Association (RHA) pointed to long-standing technical issues at the port of Felixstowe, in Suffolk. Rod McKenzie, the RHA’s managing director for policy and public affairs, commented that ‘managing Britain’s biggest and busiest container port is a massive logistical challenge at the best of times but since the implementation of nGen, Felixstowe’s own terminal-management platform back in 2018, productivity has dropped considerably. Not because it’s a bad system but because it was given insufficient time to bed in.’

The RHA explained that COVID-19, Brexit, nGen and Christmas had all come together to create a perfect storm at the port. It predicted that it would take up until the first quarter of 2021 to clear the site’s current backlog. Of course, Felixstowe is not alone, with an increasing number of consumer Christmas orders, and companies clearing lockdown-related backlogs creating congestion across the UK. Furthermore, it is also believed companies are stockpiling goods in the run-up to the end of the Brexit transition period on 31 December.

Brexit bares down

Autovista Group’s recent Brexit survey found that UK respondents still need more clarity on the specifics of changes to imports, exports and travel. They also pointed out the need for more time to adjust to any changes and clarification on what Brexit would mean for the automotive industry in particular. But as Brexit continues to bear down on the automotive industry, with talks appearing to hit nothing but brick walls, it is left trying to find short- and long-term solutions to disrupted supply chains.

Some manufacturers have taken their own steps regarding supply, Bentley has booked five Antonov cargo jets to help them fly past plugged-up ports in the event of a disorderly Brexit, Reuters reported. But while some carmakers try to find short-term logistical work-arounds, others have taken a grimmer long-term outlook.

Nissan has issued dire warnings throughout this year that no trade deal would simply make its plant in Sunderland ‘unviable’. Given that the EU would be the site’s biggest customer, any tariffs would make UK-based production difficult.

While Honda’s Swindon factory lays dormant over the next few days, its cards were already marked. Last year, the carmaker announced the factory will be closing its doors permanently in 2021. It said that the acceleration of electrification has made it ‘focus activity in regions where it expects to have high production volumes.

European Commission’s sustainable mobility strategy far from reality, says ACEA

The European Commission has drawn back the curtain on its Sustainable and Smart Mobility Strategy, with an action plan of 82 initiatives that will direct transport policy in Europe. It sets out how the EU’s transportation network can achieve its green and digital transformation, resulting in a 90% cut in emissions within the next 30 years. These new initiatives will set the standard over the next four years, with additional industry targets set for 2030, 2035 and 2050.

While the automotive sector has recognised the need to boost the uptake of zero-emission vehicles, the European Automobile Manufacturers’ Association (ACEA) has warned that some of the Commission’s ambitions could be a stretch. It explains the industry already dedicates much of its yearly €60.9 billion research and development budget to decarbonisation, as electromobility and digitisation shape a cleaner future.

Sustainable milestones

By providing clear milestones, the European Commission hopes to keep the transport system’s journey towards a smart and sustainable future on track. This includes ensuring there are at least 30 million zero-emission cars in operation by 2030, as well as the large-scale deployment of automated mobility, and climate neutrality in 100 European cities.

By 2050, the Commission wants nearly all cars, vans, busses and new heavy goods vehicles to be zero emission. It also expects there to be a fully-operational, multimodal Trans-European Transport Network (TEN-T) for sustainable and smart transport with high-speed connectivity.

‘To reach our climate targets, emissions from the transport sector must get on a clear downward trend,’ said Frans Timmermans, executive vice-president for the European Green Deal. ‘Today’s strategy will shift the way people and goods move across Europe and make it easy to combine different modes of transport in a single journey. We’ve set ambitious targets for the entire transport system to ensure a sustainable, smart, and resilient return from the COVID-19 crisis.’

82 initiatives

To achieve these goals, the Commission’s strategy outlines 82 initiatives within 10 key areas for action. So, for transport to become more sustainable, practical measures will need to be taken. This includes boosting the uptake of zero-emission vehicles, which can be targeted by installing three million public charging points and 1,000 hydrogen filling stations by 2030. The strategy also outlines the need to make urban mobility healthy and sustainable, for instance, by doubling high-speed rail traffic and developing extra cycling infrastructure over the next decade.

In terms of smart innovations, the Commission wants to see more connected and automated mobility, like allowing freight to seamlessly switch between transport modes. The strategy also plans on boosting the use of data and artificial intelligence, which could include supporting the deployment of drones and unmanned aircraft.

Reality check

Taking note of the Sustainable and Smart Mobility Strategy, ACEA acknowledged the objective of boosting the uptake of zero-emission cars. However, it warned the ambition to have 30 million of them across European roads by 2030 could be unrealistic. ‘Unfortunately, this vision is far removed from today’s reality,’ cautioned ACEA director-general, Eric-Mark Huitema.

New research by the association points out that of the 243 million passenger cars on the road in Europe last year, less than 615,000 fell into the zero-emission category, making up less than 0.25% of the whole car fleet. ‘To meet the Commission’s objective, we would need to see an almost 50-fold increase in zero-emission cars in circulation on our roads in just 10 years,’ Huitema explained.

He went on to say that despite industry investment and a growing market share, not all the right conditions were in place yet to take such a massive leap, such as the availability of charging points. ‘The European Commission should match its level of ambition for rolling out infrastructure across the EU with its ambition for reducing CO2 emissions from vehicles. It is quite simple: the higher the climate targets become, the higher targets for charging points and refuelling stations should be. Unfortunately, we still see a mismatch between these two elements at EU level,’ he warned.

A recent report by ACEA identifies the need for the deployment of 15 times more infrastructure over the next 11 years to meet the Commission’s target of three million public charging points, up from 200,000 last year. The association is therefore calling again for an urgent review of the Alternative Fuels Infrastructure Directive, to push national governments to invest.

‘Experience has shown us that a voluntary approach to these infrastructure targets does not work,’ stated Huitema. ‘While some EU countries have been very active, others have done little or nothing. The AFID review really must include binding infrastructure targets for member states.’

Apart from infrastructure, ACEA also identified other necessary measures to encourage consumers to make the switch to zero-emission mobility. This included the need for more aggressive carbon pricing, the continuation of fleet renewal schemes, as well as the re-training of sector workers.

Toyota continues hydrogen push

Toyota is highlighting its commitment to a hydrogen future by announcing a series of measures designed to improve infrastructure and supply chains, as the automotive industry continues to increase its interest in the zero-carbon propulsion technology.

The carmaker’s European arm has established a Fuel Cell Business Group to oversee hydrogen activities across the region. Based in Brussels, it will strengthen the business case for hydrogen and support its introduction into mobility and other fields, making it accessible to new commercial partners.

To accelerate hydrogen’s widespread take-up, Toyota will focus on hydrogen ‘clusters’ or eco-systems in European centres where local infrastructure is supporting transport fleets and mobility services. It believes activity like this will drive demand for hydrogen, bringing down costs and strengthening the viability of the supply infrastructure, which in turn will attract more customers.

Through the new Fuel Cell Business Group, Toyota will work closely with industry partners, national and regional governments, and organisations to stimulate the development of hydrogen eco-systems in more locations and progress towards the goal of a hydrogen society.

Speaking at Toyota’s Kenshiki forum last week, Thiebault Paquet, director of the Fuel Cell Business Group, said: ‘The benefits of hydrogen are clear. That is why we expect our global sales of fuel-cell systems to increase by a factor of 10 in the short term, and why we have dramatically increased our production capacity.’

Wider field

In addition to its movements in Europe, Toyota is also joining the Japan Hydrogen Association (JH2A), a new entity aiming to promote the global collaboration and formation of a hydrogen supply chain.

The new organisation aims to maintain Japan’s lead in the development of hydrogen systems for various markets, including automotive. Both Toyota and Honda were leaders in hydrogen research for mobility, although the latter dropped out of the market before bringing its Clarity concept model to sale.

‘As part of our various efforts to contribute to the mitigation of global warming through the reduction of CO2 emissions, Toyota will actively make efforts together with our JH2A colleagues to realise the JH2A’s purpose of establishing a hydrogen society at an early point,’ the carmaker said.

Model launch

These involvements in hydrogen society come as Toyota launches its second-generation Mirai. The first-generation model was one of the first hydrogen-powered cars to come to market.

A priority of the new model has been to improve its driving range compared to the first-generation version. Increased power and hydrogen fuel capacity, improved efficiency and better aerodynamics all contribute to extending the driving range by 30% to around 400 miles.

Improvements have also been made to the fuel-cell stack, allowing it to sit on the new GA-L platform and use space more efficiently. A smaller but more efficient lithium-ion battery has also been included.

Increasing awareness

Toyota’s moves follow an announcement last month that Hyundai and market newcomer Ineos had signed a memorandum of understanding to explore new opportunities and accelerate the global hydrogen economy. The agreement also includes the evaluation of Hyundai’s proprietary fuel-cell system for the recently announced Ineos Grenadier.

BMW is also exploring hydrogen deployment, while in Germany, some states are looking at creating a hydrogen economy to take advantage of the zero-carbon emissions. There is also a move to explore hydrogen for heavy-goods vehicles, with Daimler looking to lead the way in this regard. However, the German vehicle manufacturer has ruled out the technology making its way into its passenger cars.

As most carmakers push to launch battery-electric vehicles (BEVs) to comply with strict EU emissions targets, the move from development to market means there is now more time for them to research other low- and zero-carbon technologies. Hydrogen has been around for some time, with Toyota starting its studies in fuel cells in 1992. The technology provides short refuelling times and long ranges, making it similar to internal combustion engine (ICE) technologies. However, the only emission is water, therefore making it a viable alternative to CO2 and NOx emitting petrol and diesel engines.

UK registrations stall in November as second lockdown takes effect

UK new-car registrations fell by 27.4% year-on-year in November, as a second lockdown came into effect, closing dealerships and hampering sales. New data from the Society of Motor Manufacturers and Traders (SMMT) reveals that 42,840 fewer cars joined British roads, resulting in a £1.3 billion (€1.4 billion) revenue hit for the market.

In total, the UK saw 113,781 new-car registrations last month, taking trade back to levels not seen since the 2008 recession. Private demand fell by 32.2%, while registrations by large fleets dropped by 22.1%. While this most recent decline demonstrates the continued impact of COVID-19, the drop was less severe than the one in the UK’s first lockdown which began in March, where registrations fell by 97.3% in April alone.

Fuel type divergence

Positive trends did continue for alternative-fuel cars, with battery-electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs) increasing their number of registrations, up 122.4% and 76.9% respectively. BEVs enjoyed their third-highest ever monthly market share at 9.1%, with PHEVs also building their share up to 6.8%.

Nearly 37% of the market was held by low-emission fuel types in November, resulting in a year-on-year change of 74.1%. This resulted in a combined total of 18,000 new zero-emission capable cars joining the UK’s roads during the month. Meanwhile, petrol continued to hold on to its market majority at 49.1%, with a year-on-year registrations drop of 41.9%, from 96,166 in November 2019 to 55,855 in the same period this year. Diesel sales fell by 56.2% to 15,925 in November 2020 from 36,329 units in the same period last year, holding on to 14% of the market.

Grafik: Neuwagen Anmeldungen November 2020 SMMT
Source: SMMT

Protective measures in place

November’s partial triumph is the result of manufacturers being better prepared to deal with the pandemic, having already put in place protective measures during the first wave of COVID-19 and the resulting lockdowns, such as click and collect ordering systems with little to no human contact.

‘Given the huge contribution that COVID-19-secure showrooms make to the economy and a national recovery, reopening dealerships across most of the UK will help protect jobs in retail and manufacturing and should help stimulate spending,’ the SMMT said.

So far, the automotive sector has been stripped of 663,761 units this year, down 30.7%. This means that some 31,000 cars would need to be registered every working day in December if the market was to climb back to the level expected at the beginning of 2020.


UK new-car registrations, January 2018 to December 2020 (forecast from December 2020)

UK new-car registrations, January 2018 to December 2020

Source: SMMT and Autovista Group

‘Compared with the spring lockdown, manufacturers, dealers and consumers were all better prepared to adjust to constrained trading conditions,’ said Mike Hawes, SMMT chief executive. ‘But with £1.3 billion worth of new car revenue lost in November alone, the importance of showroom trading to the UK economy is evident and we must ensure they remain open in any future COVID-19 restrictions. More positively, with a vaccine now approved, the business and consumer confidence on which this sector depends can only improve, giving the industry more optimism for the turn of the year.’

Now with less than a month to go until the UK leaves the EU, talks over a trade deal look to be reaching a pinnacle moment. In the event of no free-trade agreement between the UK and EU tariffs of 10% could be added to imports and exports. Carmakers have already cautioned their inability to absorb this additional cost, meaning they could tag it onto the price of new cars imported into the country, which will only come to hurt the sector further.

Tesla self-driving update teased as suspension probe begins

Tesla CEO Elon Musk has revealed wider ‘Full Self-Driving’ Beta software could be released within roughly two weeks. Targeted testing of the package began in October, with early users able to make autonomous turns on city streets, all linked through the car’s navigation and autopilot features.

However, this announcement was made as the US National Highway Traffic Safety Administration (NHTSA) opened up a new probe into roughly 115,000 Tesla vehicles. The investigation will focus on a safety issue with the front suspension of the Model S (2015-2017) and the Model X (2016-2017).

Self-driving software

Taking to Twitter at the end of last week (27 November), Musk confirmed the expansion of new self-driving features for Tesla vehicles within a fortnight. ‘Probably going to a wider beta in two weeks,’ he told a user enquiring as to whether the latest software would be available in Minnesota.

In October, the so-called ‘Full Self-Driving’ Beta software was initially offered to a select number of ‘expert, careful’ drivers. Delivering an almost feature-complete self-driving package, users are required to constantly monitor the system as is made apparent in the release notes.

‘Full Self-Driving is in early limited-access Beta and must be used with additional caution. It may do the wrong thing at the worst time, so you must always keep your hands on the wheel and pay extra attention to the road. Do not become complacent.’

Tesla outlined that when enabled, the new software would allow the user’s vehicle to ‘make lane changes off highway, select forks to follow your navigation route, navigate around other vehicles and objects, and make left and right turns.’

Musk had previously said the latest upgrade wold be widely released by the end of 2020. The system looks to become more robust and capable as it gathers additional data to feed its neural networks, improving with each new user. With the majority of this testing appearing to focus on the US market, and given the current legislative quagmire surrounding autonomous capabilities in Europe, uncertainty remains around when Tesla owners elsewhere in the world might experience this new system.

Suspension investigation

This announcement also fell under the shadow of a new probe opened up by the NHTSA, affecting an estimated 114,761 vehicles. The agency began the preliminary investigation after receiving 43 complaints alleging failure of the left or right front-suspension links. In a NHTSA document, the issue was linked to malfunction of the knuckle ball-joint ring in the Model S (2015-2017) and Model X (2016-2017), which could result in contact between the tyre and wheel liner.

Of the 43 complaints received by the agency, 32 involved failures occurring during low-speed parking manoeuvres (below 16kph), and 11 while driving (above 16kph), including four at highway speeds. ‘The complaints appear to indicate an increasing trend, with 34 complaints received in the last two years and three of the incidents at highway speeds reported within the last three months,’ the document detailed.

Tesla was approached for a statement, but did not respond to the request prior to the publication of this article. As this investigation continues in the US, Tesla owners in Europe will again have to wait and see how they are impacted.