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Tesla Model 3 Production More than Doubled During November

Hands down, no other electrical vehicle company possesses the charging infrastructure, the high quality electrical vehicles, and the production infrastructure that’s now in Tesla’s hands. This system synergy provides unparalleled value to Tesla customers. Enabling them to use and improve their electrical vehicles with far greater ease than offerings from other automakers.

So when one reads about rising sales of the Chevy Bolt or how Volkswagen plans to sell 100,000 EVs per year by 2020 (Tesla sells that many now, in 2017), one should realize that both of these companies, though presently producing or planning to produce high-quality EVs, are behind in a race to catch Tesla. The Bolt, which sells for around 36,000 dollars hasn’t even yet caught up with the Tesla Model S — which costs more than twice as much. And Volkswagen is still waiting for its signature EV brands to be built over the next two years.

(Tesla deposits are an indicator of customer interest. Model 3 has been a primary driver of deposit increases since openings for reservations began in Q1 of 2016. Image source: Bloomberg.)

Struggles by Tesla to hit a rapid Model 3 production ramp, however, have caused some to question whether the revolutionary EV manufacturer and renewable energy company would hold on to that lead. Whether the delay would allow others to start to catch up. And of course some of this conjecture was puffed up by traditional Tesla bears and opponents — grasping at any bad news to spin against a rising green energy giant.

To be very clear, Tesla is at least 1-2 years ahead of the competition. So a month or two or three delay for the Model 3 production ramp — a vehicle which more than half a million customers have reserved — is not going to knock it out of its present leadership status. Longer term problems — lasting for more than 6 months — would be more telling, especially if reservation holders began to drift away. But Tesla’s present advantage is so significant at this time that the production fail on the Model 3 would have to be pretty monumental to provide any serious opening for the competition.

(Model 3 starting to break out of the pack. The vehicle is now the #21 best selling EV for all of 2017 and probably #11-12 for November. If the production ramp continues, the car will easily break the top 10 in December and probably become the best-selling EV in the U.S. by January or February. Image source: Inside EVs.)

To this point, according to reports from Inside EVs, Tesla produced and sold an additional 345 Model 3s during the month of November. This number is up 200 from the estimated 145 produced and sold during October. In total, Inside EVs estimates that 712 Model 3s had been sold by end of November.

Number sold is not number produced. So if Inside EVs estimates are correct, then Tesla has likely built over 800 Model 3s so far. And present trends make it likely that Tesla will complete between 1300 and 3000 of these revolutionary new vehicles by year-end. If this is ultimately the case, then the Model 3 production ramp is 2-3 months behind schedule. Disappointing to the hundreds of thousands waiting to get their hands on a Model 3, for sure. But not a crisis set to break the back of Tesla — as some have implied.

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The Global Smack-down Against the Infernal Combustion Engine Achieves Full Charge

As the climate-wrecking fossil fuel age was climbing to dominance in 1943, Winston Churchill perhaps made the most famously telling Freudian slip of all time. In an attempt to laud the transition from the horse and buggy to the fossil-fuel driven car, he said to an audience at Harvard:

“Man has parted company with his trusty friend the horse and has sailed into the azure with the eagles, eagles being represented by the infernal combustion engine–er er, internal combustion engine. [loud laughter] Internal combustion engine! Engine!”

And as people from the Arctic to the Maldives to Bangladesh to the U.S. territory of Puerto Rico can now attest, the effects of the gasses produced by internal combustion have indeed started to become quite infernal as the leading edge of climate change related disasters begins to take hold.

(The LA auto show this week was dominated by new electrical vehicles.)

But at the same time that seas are rising and the weather is worsening, there is renewed hope that all this infernal combustion and related climate wrecking carbon dioxide spewing into the atmosphere may start to taper off. For if the age of unsustainable fossil fuels was heralded by an infernal engine, then the age of sustainability itself is being heralded by blessed batteries and the cars they power.

UBS — 1 in 6 New Cars to be Electric by 2025

For the electrical transition is happening now. And it’s charging up as we speak.

According to a recent report by UBS, the number of affordable, desirable electrical vehicles will vastly expand between now and 2020. Multiple vehicles that are competitive with, if not matching the performance of, Tesla’s Model 3 will be available by that time. These models will continue to proliferate through 2025.

(UBS estimates rapid increases in EV market share. This is bad news for fossil fuels and good news for sustainability.)

At the same time, prices for both batteries and vehicles are expected to fall. Total cost of ownership for electrical vehicles is already less than a comparable fossil fuel based car for a number of models. This is due to lower fuel and maintenance costs. However, overall total cost of ownership is expected to be less on average than fossil fuel cars by the early 2020s. Meanwhile, base price for EVs is expected to out-compete that of fossil fuel based cars by 2025 even as EVs are expected to consistently outperform ICE vehicles by that time.

As a result, UBS expects that between 6 and 25 percent of all new cars will be electric by 2025 with the average between these two predicted ranges hitting 16 percent or 1 in 6 of all new cars sold.

Volkswagen Invests More than $12 Billion in EVs

Tesla, presently the global EV market leader, is today’s company to beat. And Volkswagen, recently stung by an emissions scandal, appears to be stepping up to the plate as a serious challenger.

The company, this month, decided to invest 12 billion dollars to build as many as 40 electrical vehicle models in China. A market that by itself may support as many as 6-9 million EV sales per year by 2025. Volkswagen, in total, aims to sell 1.5 million electrical vehicles per year at that time.

(Volkswagen electrical car, SUV and Hippie Van spotted in California on November 27th. Image source: Clean Technica.)

Already, the company is developing multiple high-quality models to include an electric version of its iconic hippie bus, an electric car based on traditional Volkswagen styling, and a new SUV crossover called the CROZZ. All are expected to have a 200+ mile electric range and feature better performance than their fossil fuel counterparts.

Movement Toward Electrification Across Entire Industry

But it’s not just Volkswagen that appears ready to move aggressively toward electrification, pretty much every major automaker is adding new EVs between now and 2022 — with a number focused on total or near total electrification (see Jaguar video at top of post).

To name just a few, GM plans 20 new electrical models over the next six years, Ford plans 13 by 2020, and both Daimler and Renault plan to have 8 BEVs on the road by 2022. New entrants like BYD and Tata are also advancing electrical vehicles in their home markets of India and China. And the above-mentioned Jaguar expects all its new vehicles to have electric or hybrid electric drive trains by 2020.

Tesla Still Leading the Charge, But Will that Last?

Though numerous factors have driven the industry toward electrification to include falling battery costs, concerns about mass devastation from human-caused climate change, and drives by cities like Paris and nations like China to clean up air quality, it was Tesla, primarily, that proved to the world that EVs could be mass produced at market-setting quality and performance.

Tesla advances continue today with news reports indicating that the Model 3’s performance beats pretty much all of the BMW 3 series internal combustion engine cars hands down. And reviewers over at Motor Trend have gone so far as to call the Model 3 a BMW 3 series killer.

Meanwhile, indications are that production bottle necks may be starting to clear for the market-setting Model 3. Panasonic recently announced that battery production for the vehicle is about to speed up even as the company introduced reservation options for non employees this past week. If this is the case, Tesla is in the process of securing at least a 1-2 year jump on most major automakers.

(The new Tesla Roadster. Image source: Tesla.)

Tesla has also not let its various aspirational goals slip. Its offering of a 500 mile range long-haul truck by 2020 at $180,000 is yet another trend-setter. And the new Tesla Roadster with a 250 mile top speed, a 600 mile range, and featuring hyper-fast charging will basically far outperform even the top fossil fueled vehicles in pretty much every metric.

As the race between Tesla and the rest of the auto industry to produce the next trend-setting EV ramps up, it looks like the main loser will be that old pollution-belching infernal combustion engine. Good riddance.

Auto Workers File Ethics Complaint Against Romney; Did Mitt Romney Break the Law While Preying on US Industry?

The United Auto Workers and Service Employees International Union filed an ethics complaint against Mitt Romney for illegally hiding profits he made during the US auto bailout yesterday.

According to news reports and the investigative reporting of Greg Palast, Mitt and Ann Romney invested $1 million dollars in GOP guru and mega-donor Paul Singer’s hedge fund — Elliott Management. Elliott then bought out major US auto parts manufacturer Delphi nearing bankruptcy at pennies on the dollar — 67 cents per share. As the US government began to bail out auto manufacturers GM and Chrysler, Singer demanded that Delphi also be bailed out saying “because if you don’t, we’ll shut you down.” This hostage taking of a key US industry by Singer resulted in shock from the government committee tasked with saving the US auto industry which described Singer’s actions as treating the US as a dictator would a third world country.

The government, seeing no other way to save the US auto industry without a parts supplier, acquiesced to Singer’s demands and Singer, who now was essentially in control of Delphi, used the funds to make Delphi profitable again. But only for investors. He cut workers pensions and went public with the corporation pushing share values to over 22 dollars. Delphi also profited by utilizing a number of other unsavory practices. The first was taking a page from Romney’s Bain Capital and shipping US jobs to China. Of the 25,000 well-paying union jobs that Delphi once employed, zero remain. Further, under the republican Singer, Delphi liquidated its US presence. Of the 29 factories Delphi once operated in the US, four remain. The rest all operate on foreign shores — in Mexico or China. Under Singer, Delphi continued its hostage-taking practices demanding exorbitant high prices for the parts it sold to GM. Singer’s combination of predatory market cornering, blackmailing the government for a bailout, shipping US jobs overseas, and destroying unions resulted in larger profits for his fund and his clients, the Romneys.

These profits were then taken and hidden in a tax haven on the Isle of Jersey.

Before we move on to the Romneys role in this action, it is important to note how critical the US automobile industry is to both the US economy and to US national security. The industry serves two major purposes in this respect. First, it results in the employment of millions of Americans through its direct manufacturing facilities and through its supply chain. And, second, it serves as an emergency industrial capacity in the event of a major war. During World War II, the US relied on this manufacturing might to become the ‘Armory of Democracy.’ Though somewhat diminished, this indigenous capacity remains a bastion of American strength in the world. Singer’s actions not only harmed workers and the larger US economy, they also directly harmed US national security — in favor of the Chinese.

Moving on, it is estimated that the Romneys made anywhere between 15 and 115 million dollars off of Singer’s predatory actions against a critical US Industry, the US government auto bailout, and against working Americans. And while this may be as unsavory as many of Romney’s other vulture capitalist ventures, Singer’s almost certainly criminal activities have, thus far escaped legal action.

That’s where the Ethics filing against Romney comes into play. The Romneys have not disclosed these profits. Under the Ethics in Government Act of 1978 politicians are legally obligated to make public all profits related to holdings that may be affected by a government action. In other words, it is illegal for politicians to keep secret investments that may benefit or may have benefited from government action, like the bailout Singer extorted for Delphi.

The Romneys predatory benefit from the auto bailout in the case of their Elliott/Delphi investment is just such an instance, while their failure to disclose this information is almost certainly breaking the law. So the US auto worker filing may just catch the Romneys by the tail of their heinous venture.

Romney’s own endless political and rhetorical attacks against the US auto industry, taken in this context seem ever more dark, underhanded, and vicious. Romney had called for Detroit to go bankrupt. Romney has cynically and viciously profited by preying on the bailout he opposed, further weakening the industry and hampering its recovery. And now Romney engages in a smear campaign waged against the US auto industry and the workers themselves. The only surprise is that workers and the US auto industry didn’t fire back at Romney sooner. Now, at least, it appears Romney’s vicious and self-serving acts have made him a determined enemy out of a great US industry. One wonders if the American people will be next to join in the fray?

Links:

http://www.thenation.com/article/170644/mitt-romneys-bailout-bonanza#

http://www.gregpalast.com/uaw-files-charges-against-romney-on-his-auto-bail-out-profiteering/

http://www.salon.com/2012/10/19/how_mitt_romney_made_a_fortune_off_the_auto_bailout/

http://www.thedetroitbureau.com/2012/10/romney-accused-of-personally-profiting-as-1000s-of-delphi-retirees-lost-pensions/

http://www.clevelandleader.com/node/19289

“Let Detroit Go Bankrupt” Romney Attacks GM in Final Days of Election; GM Defends Record From Romney Lies, Calls Them ‘Fantasy’

Before we get into the new morass of mud and muck dredged up by the Romney campaign and slung at the US auto industry, it’s important to establish a few facts. This effort is useful as the Romney campaign, with its almost daily distortions and flip-flops, has been the most fact-free bid for the Presidency of any election cycle in modern memory. Romney’s most recent smear campaign, waged against the US auto industry and, by extension, American workers, is just the newest in a daily stream of distortions, gimmicks, smears, and attempts to terrorize the US electorate.

First, in an op-ed to the New York Times entitled “Let Detroit Go Bankrupt,” Mitt Romney, in his opening sentence, stated:

IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye.

Coming into office and facing the worst economic decline since the Great Depression left behind by the Bush Administration, President Obama decided to act to save over 2 million American jobs by directly supporting the auto industry bailout. Though far less expensive than the TARP program to bail out the US financial sector, the auto bailout provided much more direct support to the US middle class by ensuring that auto industry and supply chain jobs were not lost and that key US industries did not collapse. Conservatives of every stripe immediately howled that such government intervention would result in an US auto industry ‘doomsday.’ And Mitt Romney added his voice to those claiming US automakers would fail if they accepted government assistance during the worst of times.

As the years passed, Mitt Romney and conservatives have been proven drastically wrong. The US auto industry has recovered. GM is again the number 1 seller of automobiles in the world. And the industry is in the process of adding US jobs and repatriating jobs from overseas. This dramatic success belies republican and Romney drama to the contrary. It shows that the leadership role Obama took to save the US auto industry is now beginning to pay off. And, most glaringly, it shows the deep, systemic, failure of the current, rigid republican economic ideology.

Meanwhile, the corporation Romney built — Bain Capital — is now preparing to dismantle a factory that manufactures sensors for the auto industry in Freeport Illinois and ship their jobs overseas. Nearly 200 workers at the Sensata factory which Bain bought-out will find their jobs outsourced to China before the end of this year. This is a result of the outsourcing and off-shoring legacy that Romney pioneered while head of Bain Capital. (See more about Sensata here.)

This dual narrative of Obama’s leadership and success combined with Romney still profiting from liquidating US factories and sending the jobs overseas has had devastating effect for Romney in states like Ohio, Pennsylvania, Wisconsin and Michigan who know all too well how damaging outsourcing and off-shoring have been to their economies. Loss of critical factories like the one at Sensata has resulted in the gutting of entire communities. Whole neighborhoods in Detroit are now ghost towns as a result of the kind of outsourcing Mitt Romney pioneered at Bain Capital. Some of these lost jobs may never come back, captured by 99 cent an hour Chinese workers and a country that is unwilling to establish laws to protect its own people from the abuses of vulture capitalists like Romney. China may as well have foisted a sign emblazoned ‘Robber Barons R’ Us.’ And, Romney, among many others, came flocking to exploit the slave wage labor there by dismantling US factories and sending them overseas.

Perhaps too late, Romney has realized how damaging these methods of employing equities firms and off-shoring practices to accumulate personal profit have become. But the realization appears to have now stuck with a vengeance. And, in typical Romney fashion, Romney is now waging a media campaign against the very business Obama was so successful in saving and that, since late 2009, has directly added thousands of US jobs.

The Romney campaign is now running a malicious and false advertisement claiming that Jeep plans to ship US jobs overseas to China. The ad comes as Jeep revealed plans to build two manufacturing plants in China over the coming years. But, contrary to Romney’s false assertion, Jeep’s China expansion is not coming at the cost of any US manufacturing. Unlike Romney’s Sensata, no Jeep facilities are being shut down. No workers are being forced to train their Chinese replacements, as Romney’s Bain is forcing Sensata workers to do so. In fact, Jeep and GM have pledged to take profits from the Chinese operation and use it to create more jobs in the US. It’s almost the exact reverse of the Romney model. Call it in-sourcing, or re-sourcing, or repatriating, or even re-shoring. But it’s definitely not the Romney/Bain model for outsourcing and off-shoring.

Since late 2009, Jeep alone has added over 4600 US jobs, showing, in fact, that Romney’s claims are patently false.

GM was quick to defend its record from Romney’s false attacks:

“We’ve clearly entered some parallel universe during these last few days,” GM spokesman Greg Martin said. “No amount of campaign politics at its cynical worst will diminish our record of creating jobs in the U.S. and repatriating profits back to this country.”

Crysler CEO Sergio Marchionne in an email to employees refuted Romney’s claims by simply laying out the facts:

“Jeep production will not be moved from the United States to China,” Marchionne stated in the e-mail. “The numbers tell the story,” followed by specific investments Chrysler has made in Detroit, Toledo and Belvidere, Ill. “Those include more than $1.7 billion to produce the successor of the Jeep Liberty and hire about 1,100 workers on a second shift by 2013.”

The additional 1100 jobs are on top of the 4600 jobs Jeep has already added. In contrast, Romney’s Bain will, in the next couple months, send another 200 jobs to China. So the contrast couldn’t be more stark.

And the media is starting to pick up on Romney’s egregious assault of lies against the US auto industry and US workers. The Atlanta Journal Constitution recently called the Romney advertisements attacking the auto industry ‘economic terrorism.’ The Detroit Free Press has published this in-depth piece exposing Romney’s false claims. The conservative-leaning US News and World Report posted an analysis showing how the US auto expansion in China was helping to support jobs expansion at home. And FactCheck.org labeled Romney’s recent advertising blitz “flat wrong” stating:

“It’s misleading to suggest that Chrysler’s decision to expand into China will cost U.S. jobs — especially after the company has said it would have no impact on its U.S. operations.”

The fact-checking website noted a report from Bloomberg that Chrysler was considering “adding Jeep production sites rather than shifting output from North America to China.” Meanwhile Chrysler, in a dramatic refutation of Romney’s doomsday prediction for the US auto industry, just reported a third quarter profit of $381 million, up 80 percent from a year ago.

It seems likely that the Romney misinformation machine may have just bitten off more than it can chew. Considering the wide-ranging backlash taking shape from both the US auto industry and the broader media, it appears that Romney’s false attacks against GM and Jeep are about to erupt in his face. The US auto industry is firmly on its path to recovery, with each new report showing positive results. Further, the US auto industry is in the process of adding thousands of jobs here in America. Both of these points prove Romney dramatically wrong. Wrong in his ‘Let Detroit go Bankrupt’ op-ed and wrong now. Finally, these attacks only serve to call attention to Romney’s own record of sending US jobs overseas, the most recent example of which is Sensata.

Links:

http://www.freep.com/article/20121031/NEWS15/310310091/GM-and-Chrysler-Romney-is-wrong

http://www.nytimes.com/2008/11/19/opinion/19romney.html?_r=0

http://blogs.ajc.com/jay-bookman-blog/2012/10/31/gm-on-romney-campaign-politics-at-its-cynical-worst/

http://www.usnews.com/news/blogs/rick-newman/2012/10/31/memo-to-mitt-romney-gms-success-in-china-is-good-for-america

http://www.cbsnews.com/8301-34222_162-57542993/gm-like-chrysler-refutes-romneys-auto-industry-ad/

http://www.politico.com/blogs/burns-haberman/2012/10/gm-aide-romney-ads-part-of-parallel-universe-147753.html

http://www.upi.com/Top_News/US/2012/10/30/GM-Gap-between-Romney-ad-and-reality/UPI-56761351637557/

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