EV Final Rule Is a Win For OEMs, VW Union, Shredding EGs

March 19, 2024
It’s Tuesday and the Auto Industry is alive and well as we talk about the DOE final rules on EV requirements that are a win for OEMs. We also talk about the pending UAW vote at VWs Chattanooga plant as well as the legendary metal band, Metallica, going an an EV/hydrogen powered tour. 
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Show Notes with links:

The finalized U.S. EV mileage ratings rule brings relief to automakers, reducing the risk of heavy fines and easing the transition to electric vehicles, a significant shift from the Department of Energy's initial proposal.some text

  • The Department of Energy's final rule softens its initial proposal, lowering the compliance value of EVs by 65% through 2030, allowing automakers more time to adjust.
  • Detroit 3 and the UAW voiced concerns that the original proposal could lead to $10.5 billion in fines through 2032 for failing to meet fuel economy requirements.
  • The revision was influenced by automaker and UAW feedback, aiming to balance environmental goals with industry realities.
  • The EPA's upcoming vehicle greenhouse gas emissions requirements are also set to be less stringent than proposed, promoting a gradual increase in EV production.
  • This ruling is also seen to be a boost to hybrid and PHEV sales

Workers at Volkswagen's Chattanooga plant are pushing to join the UAW, marking a pivotal moment in the union's efforts to expand its influence across foreign-owned automakers in the South.some text

  • Volkswagen Chattanooga employees have filed for a union election with the NLRB, demonstrating a "supermajority" interest in joining the UAW. This is the third attempt in 10 years to unionize the plant, with the last narrowly failing
  • A successful vote at VW would be a landmark victory as  the  UAW's persistent efforts to unionize foreign auto plants in the South have faced significant political and legislative challenges over the years.
  • VW has committed to supporting an NLRB-administered secret ballot, ensuring every employee's voice is heard, with the election timeline to be set by the NLRB.
  • President Biden and presumptive Republican rival Donald Trump are keenly watching the UAW's moves, with Biden expressing support for the workers' right to unionize, reflecting the national political significance of the union's campaign.
  • "The decision whether to join a union belongs to the workers," stated President Joe Biden, endorsing the workers' efforts and the importance of union representation.

Heavy Metal band Metallica is teaming up with heavy truck maker Iveco to embark on a world tour using electric and hydrogen fuel-cell big rigs to haul their equipment across Europesome text

  • For the European leg of their M72 World Tour, Metallica is using a fleet of Iveco's battery-electric and hydrogen fuel-cell trucks, demonstrating their dedication to cutting carbon emissions.
  • The band is an early adopter and high-profile proponent of eco-friendly touring practices by choosing the latest in FCEV technology for their gear transportation.
  • Metallica is also employing Iveco EV minibuses for concert shuttles, further reducing the carbon footprint of their tour.
  • Far from just good PR, this strategy aligns with Metallica's broader efforts to promote renewable energy and education, including their $2 million investment to support "Metallica scholars" in the renewables sector.
  • "Everywhere they have concerts, we are engaging together on sustainability," says Gerrit Marx, CEO of Iveco Group, underscoring the collaboration's focus on environmental sustainability.

Paul J Daly: 0:19

Well hit the button. No music started today. It's Tuesday, March 19. We're talking about evey final ruling from the Department of Energy. When for OEMs so a VW union and shredding D jeez. Sorry about that. Oh,

Kyle Mountsier: 0:37

see that title though? They don't know yet. You know, they don't know yet. But that title was

Paul J Daly: 0:43

this organization has been rockin EGS for a long time. Original early adopters,

Kyle Mountsier: 0:50

early adopters of e g.

Paul J Daly: 0:52

Oh my goodness. Hey, everybody. Welcome to Tuesday. I guess we're supposed to say we have a few things to talk about. Number one. Hey, Adrienne Gibbs. She's always so always there. I was. I can't wait today, folks. Good to see you. At ASOTU CON Adrienne Gibbs. If you don't know her, you should know her. Go on LinkedIn. Search the name. She's nominee for what? What's the what's the competition called? That has turned into a competition the 40 slightly over 40

Kyle Mountsier: 1:20

She got kicked out last week. It was sad. It's so sad. She went full Adrian you went full political, like law. It was crazy. But she did lose to like another person close to heart the new owner of Riverhead, Mazda, Michael Lukey previously with NADA at Academy like everybody's everybody's in the house. So

Paul J Daly: 1:46

I have a beef with our friends at hive analytics. And I haven't I haven't talked about this publicly. Give

Kyle Mountsier: 1:53

it to him, Paul, but

Paul J Daly: 1:58

we're gonna send this to him. I am personally uncomfortable with popularity contests, which is what this has turned into. So uncomfortable.

Kyle Mountsier: 2:10

Oh Jeff Avila said it best he said how are all the winners listed as winners on the website but nobody's actually won yet. And then it's just going to be this.

Paul J Daly: 2:20

I guess it's like the march it's the March Madness my words is great to just be invited to the tournament and you made it but I mean, you're gonna walk away with your head down no matter what. No matter what there's only one person because even though no no, here's even that one person is gonna be like, but I love the person that I wouldn't like by some stroke of fate happened to be me. I would still feel bad, right like looking at other people I disappointed Alright, so there you go. Beef over fever. We hope you all join us at a soda con only 56 days away in Baltimore, May 15 16th. Go to a soda con.com The speakers are lined up. We're locking new sessions. We're gonna be posting more session topics we have so many queued up, people have been asking about that. So if you go to the big deal

Kyle Mountsier: 3:07

is if you are coming in, you're listening to this right now and you're about to say and you have not booked your hotel

Paul J Daly: 3:14

and you want to be in the same hotels the event that is a problem you need to get on

Kyle Mountsier: 3:18

that yesterday. I was booking way faster than it did last year. And look, there's a really nice Holiday Inn Express around the corner. It's actually really nice if you want to be in the venue and you'd like one of the crew, get your hotels now you can go to our website for slash hotels so to comm forward slash hotels get it right there. Hope

Paul J Daly: 3:36

you join us up also we have a webinar coming up tomorrow or so to edge webinars. And it I lost my notes all of a sudden

Kyle Mountsier: 3:44

we're gonna be talking about how Ron Bouchard Otto is bridging the online store and financing gap. I'm excited about this one because as I stated way early in the year I think that that things to be done to create efficiencies in the showroom in particular are going to be top of mind for dealers this year and whether or not you're utilizing upstart it is it is something a topic of conversation that I think we all need to be thinking about so I can't wait to have that conversation so good so good. Other conversations and we should get into our PA we really do because we gotta we got things to do. Alright, let's

Paul J Daly: 4:18

talk about this. So the finalized us Evie mileage ratings rule brings relief to automakers reducing the risk of heavy fines and easing the transition to EVs. So this is a big shift from Department of Energy's initial proposal. So basically, the final rule softens that initial proposal lowering compliance value of EVs by 65%. So it's a big cut through the year 2030, allowing the automakers more time to adjust the strategy and the manufacturing. So Detroit, big three and the UAW, both voice concerns they agreed on something. The original proposal, as the original proposal could have led to $10.5 billion in fines for the Big Three for failing to meet the requirements. It's so it was definitely influenced a lot by automaker and UAW feedback. I love hearing about them working together, by the way. So. So basically, this has been this is going to hasn't been announced yet, but it's like one of those Reuters confirms that they're gonna announce this today. So you probably hear here before you hear it there. But um, the ruling is also seen to be a boost to what we've already been saying hybrid and plug in hybrid vehicle sales, because, you know, I've,

Kyle Mountsier: 5:27

I've only got like a nice, slow clap for this one, you know, like, yeah, kudos, okay, everybody's kind of got, like, everybody's recognized, there's got to be a little bit of backtracking, there's got to be a little recognition of what the consumer demand actually is. And to go all the way to the Department of Energy now and recognize, okay, we might need to change our advice on how like the percentage of EVs in the market by certain year, the year 2030, which we haven't played the trigger, we haven't prepared

Paul J Daly: 5:59

for that. Hold on, hold on. I can I can, you know, my whole I wasn't ready for this,

Kyle Mountsier: 6:04

but we weren't ready. 20 We haven't done that in a while, because we haven't actually had to, because a lot of people have been talking about longer years, 2035, things like that.

Paul J Daly: 6:17

So like the consumer, like the consumer has been talking about, you

Kyle Mountsier: 6:21

know, kudos, we'll see what the actual announcement and what gets get what gets passed through. But this, this is just like you're saying consumers, it

Paul J Daly: 6:30

will I want to point out that this is another one of those kind of governmental reaches that goes so far. It sets this temperature for whatever you say first isn't going to be the real thing. Right? And then it just you're all the back and forth. That happens like you it's it's almost like dealers in the past have set the tone for like, whatever we say first isn't the real price. Right. So maybe we deserve it.

Kyle Mountsier: 6:57

I don't know. Paul. Do you remember what the cars rule is? Yeah.

Paul J Daly: 7:05

Speaking of rules, segway times, salty on Tuesday. We will hook up with it. The workers at Volkswagen Chattanooga plant are pushing to join the UAW marking and pivotal moment the union's efforts to expand its influence to foreign owned automakers in the south. So, Volkswagen Chattanooga employees have filed a Union Election with the NLRB demonstrating a super majority interest in joining. So this is the third attempt in 10 years to unionize the plant. The last one, if you remember just narrowly failed. So a successful vote at the plant would be a landmark victory for the UAW. You know, because usually one domino falls and then the other ones go so we'll see what happens. Volkswagen has said it is committed to supporting the NLRB administered secret ballot, ensuring every employee's voice is heard and confidentially, President Biden and presumptive Republican rival Donald Trump, we've now set his name two days in a row. And our producer Nathan pointed out it has been 147 days since we said the word Trump on the show. It's over I then call and I said, Well, it'll probably be we'll probably say it for the next 147 days. Now that was the election cycle and maybe beyond. So they're both watching the UAW smooth Biden expressing support for workers rights to unionize, no surprise there. And he said the decision whether to join a union belongs to the workers. So I don't know this is this, this can be a big shift.

Kyle Mountsier: 8:36

I got two things. I got two things.

Paul J Daly: 8:39

First of all, two things are willing to say on the air and then three things not

Kyle Mountsier: 8:42

Yes. Yeah. Two things I'm willing to say on the on the air. I've been to Chattanooga multiple times to Park in downtown Chattanooga costs $1.20 for like 80 hours. That's a little bit of an over exaggeration. But the cost of living in Chattanooga probably does not demand the change in pay that the UAW would start to implement. However, you know, I appreciate the way that VW at least publicly is putting a foot forward to say, hey, look, we support our employees, right, to give us feedback. And my hope, and I think the best implementation of any employee employer relationship is that the employee has a voice and that the employer listens. And if they can get that done in this timeline without the need for an intermediary that actually cost both sides money, that would be the best result. And so the more than cars mindset of Volkswagen in the next, you know, 3060 90 days will really, really challenge and change whether or not the UAW is successful here. And I would challenge those at the executive side of Volkswagen to really really look like are they holding I'm more than cars mindset in their employee relations because they probably wouldn't even be bringing up the UAW

Paul J Daly: 10:06

was it was it we covered I think it was Costco. Somebody unionize the warehouse. And the Costco executives were like we had a meeting and like let's talk about where we failed our people. They felt we needed to do that. So take a look at Costco follow their playbook seems to be working out okay for them. Speaking of working it out.

Kyle Mountsier: 10:25

Wow. Here we go. I love this. I saw this yesterday I was pumped. I knew we were going to be talking about it this morning. Heavy Metal band Metallica you know them is teaming up with heavy truck maker Iveco to embark on a world tour using electric and hydrogen fuel cell big rigs to haul their equipment across Europe. For the European leg of their M 72. World Tour. Metallica is going to be using a fleet of five echos battery, electric and hydrogen fuel cell trucks demonstrating they're always in at least the last couple of years dedication to cutting carbon emissions on their tours. They've always been kind of an early adopter of eco friendly touring. They've already used FCV tech not feel so Eevee technology for the year transportation. They are also going to be using mini buses for concert shuttles that are Evie. And this is like their goal is to be less than a lot more than just PR Metallica has invested over $2 million in supporting what they're calling Metallica scholars in the renewable sector so it's not just a tour stunt.

Paul J Daly: 11:35

I know Metallica scholars

Kyle Mountsier: 11:37

right it goes to high school yeah, right yeah. That's a different Metallica scholar there Yeah. Then you got your old guitar here a fan ticket ticket ticket

Paul J Daly: 11:48

so let me just say two things number one they've been want rockin electric guitars for a long time so they're used to this number two Iveco sounds like Metallica is long loss keyboard player. That's exactly who it is. Right. You think Lars and Iveco together just long hair?

Kyle Mountsier: 12:05

You are probably saying it wrong is low V neck right? Yeah.

Paul J Daly: 12:10

With also long hair,

Kyle Mountsier: 12:12

long hair. Exactly.

Paul J Daly: 12:13

I love this story. I mean, it's just a band being on brand Metallica being a band that very much values their brand perception. They valued licensing we know that as well. And their business people. I mean, James had like their business people so like, just

Kyle Mountsier: 12:29

from a brand play alone. Look at did we start we had the picture of this truck. Like you look at this thing. It's awesome. It is. It's a giant attitude. Uh, yeah, it's it's amazing. Yeah, it

Paul J Daly: 12:44

just plays Enter Sandman on repeat. Like when you turn it on, it's uh I don't know it's a fun story look, tried to bring you a little light on today's shows a little bit spicy. I don't know why but it's only Tuesday. We have a lot to go so we'll try to turn them down a little bit. Go out there. Take care of some people right more than cars mindset Kyle set of best

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