BOOM. China to Ban Internal Combustion Engines

September 10, 2017

Video is on the money, in light of newest announcement.

For the record, GM sells more cars in China than the US. (see below)

Bloomberg:

China will set a deadline for automakers to end sales of fossil-fuel powered vehicles, a move aimed at pushing companies to speed efforts in developing electric vehicles for the world’s biggest auto market.

Xin Guobin, the vice minister of industry and information technology, said the government is working with other regulators on a timetable to end production and sales. The move will have a profound impact on the environment and growth of China’s auto industry, Xin said at an auto forum in Tianjin on Saturday.

A ban on combustion-engine vehicles will help push both local and global automakers to shift toward electric vehicles, a carrot-and-stick approach that could boost sales of energy-efficient cars and trucks and reduce air pollution while serving the strategic goal of cutting oil imports. The government offers generous subsidies to makers of new-energy vehicles. It also plans to require automakers to earn enough credits or buy them from competitors with a surplus under a new cap-and-trade program for fuel economy and emissions.

Honda Motor Co. will launch an electric car for the China market in 2018, China Chief Operating Officer Yasuhide Mizuno said at the same forum. The Japanese carmaker is developing the vehicle with Chinese joint ventures of Guangqi Honda Automobile Co. and Dongfeng Honda Automobile Co. and will create a new brand with them, he said.

Internet entrepreneur William Li’s Nio will start selling ES8, a sport-utility vehicle powered only with batteries, in mid-December. The startup is working with state-owned Anhui Jianghuai Automobile Group, which also is in a venture with Volkswagen AG to introduce an electric SUV next year.

China, seeking to meet its promise to cap its carbon emissions by 2030, is the latest country to unveil plans to phase out vehicles running on fossil fuels. The U.K. said in July it will ban sales of diesel- and gasoline-fueled cars by 2040, two weeks after France announced a similar plan to reduce air pollution and meet targets to keep global warming below 2 degrees Celsius (3.6 degrees Fahrenheit).

CNN Money:

China is now GM’s largest market. Sales growth there lifted it to volume it never achieved when it was the world’s biggest automaker. GM recorded its fourth straight year of record sales even as U.S. sales fell slightly, the first decline in GM’s home market since 2009.

The U.S. car market, which rose seven straight years to its own record, may have topped out in 2016. Sales are forecast to decline slightly this year. GM has announced three rounds of layoffs at its American plants, costing 3,300 jobs, its first cuts since 2010.

Still, GM is predicting improved results in 2017, thanks in large part to China. GM makes most of its cars for that market in China, though it does export some, mostly Buicks from the United States.

Detroit News:

Official Michigan for months has been in hot pursuit of the Foxconn Technology Group, the Taiwan-based contract manufacturer planning massive investments in the industrial Midwest.

Neighboring Wisconsin landed the first prize, an envisioned complex that ultimately could employ as many as 10,000 workers — provided taxpayers in America’s Dairyland pony up an estimated $3 billion in incentives to close the deal.

Michigan is still in the hunt for additional Foxconn investment, Gov. Rick Snyder and others say. That’s good, so far as it goes. Foxconn operations serving the hometown auto industry would be a natural fit here, as would a research and development site to leverage Michigan’s ample well of engineering talent.

But something far more strategic may be at play. Namely, establishing a beachhead in America’s industrial heartland that could be converted to production of electric and autonomous vehicles, competing directly with Detroit’s automakers and its global auto industry rivals.

That’d be a first, a kind of manufacturing Trojan horse within the shadows of General Motors Co.’s Renaissance Center and Ford Motor Co.’s Glass House. Oh, there’ve been joint ventures, like Mazda Motor Corp.’s now-defunct partnership with Ford in Flat Rock and Mitsubishi Motors Corp.’s dissolved tie-up with Chrysler Corp. in Normal, Ill.

But never in the history of the Detroit-based auto industry have foreign-owned rivals planted themselves in the heart of America’s auto industry.

The auto industry as this town has known it for a century is facing dramatic change. The Auto 2.0 transformation likely will see Silicon Valley tech heavies join the ranks of automakers — potentially with the help of contract manufacturers like Foxconn and one of its biggest customers, Apple Inc.

Automakers “and suppliers face significant challenges in the transition to Auto 2.0,” Morgan Stanley, a leading Wall Street investment firm, warned in a recent note, “including attracting and retaining human talent, capital deployment, exposure to obsolete technology and poor transferability of skills to an EV ecosystem.

“Foxconn’s efforts could, over time, expand into a position of direct competition or even substitution from the currently installed capital base to manufacture complete vehicles.”

Sound far-fetched? It shouldn’t, considering the high-tech players — Apple, Google parent Alphabet Inc., Intel Corp. and countless startups — angling for a piece of the 21st-century automotive pie called mobility, autonomy and electrification. And Foxconn in recent years has been investing in electric-car and mobility ventures.

 

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5 Responses to “BOOM. China to Ban Internal Combustion Engines”

  1. fw134 Says:

    A Sputnik moment for the US?

    • grindupbaker Says:

      Am I mistaken then in inferring that U.S. Americans have become mostly a bunch of idiots over the last 60 years ? Or is it just that black & white looks more sensible than colour, like sensible shoes ?

  2. J4Zonian Says:

    OK, like people saying “energy” when they mean electricity–“100% of energy will be renewable by…” this is starting to annoy me.

    When people (Lovins, @ 0:16 ) say countries are making all vehicles electric by blah blah, I don’t think they mean all vehicles, they mean all NEW vehicles. They’re not outlawing ICEVs; they’re prohibiting sales of new ICEVs. Unless other steps are taken to get rid of ICEVs and their infrastructure, it will take a lot longer than 2030 to replace all ICEV stock on the road.

    Other things that seem annoying but are just lies: the white house resident and other politicians talking about “sovereignty”, “freedom” etc. as a way of acting like 2 year old teens. They’re obsessed with making sure the rich still have the license to exploit people and the rest of nature.

    And, well, the white house resident. And everything s/he says (I’m still not sure the rude male behavior isn’t just cover for being post-surgicall transgender).

    • MorinMoss Says:

      @J4Zonian
      “I’m still not sure the rude male behavior isn’t just cover for being post-surgicall transgender”
      No need to insult transgender people. Trump came by his assholery honestly, through privileged self-importance.

      “They’re not outlawing ICEVs; they’re prohibiting sales of new ICEVs. Unless other steps are taken to get rid of ICEVs and their infrastructure, it will take a lot longer than 2030 to replace all ICEV stock on the road”

      I’m sure the time to completely replace will be much longer but they may take the step of disallowing pure ICE vehicles from city centers which will probably hasten their demise.


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