Porsche, Ferrari Push E-Fuels at the Heart of Europe's ICE Ban Debate
Porsche and Ferrari are at the center of an EU debate about a plan to kill the combustion engine — and they are changing the conversation. The automakers are seeking a carveout for synthetic e-fuels from the EU’s planned 2035 ban on new internal combustion engine vehicles. While they belong to a narrow segment of the auto industry, Porsche and Ferrari’s status as iconic automakers was enough to move their governments to challenge the EU plan last week just days before a scheduled vote. Automotive News reports, a final vote on the 2035 ICE ban was due to take place on March 7 but was indefinitely delayed amid fears that Germany could abstain, which would torpedo the regulation. The European Commission, Germany, and Italy, which opposes the ban, will hold talks in the coming weeks on how to integrate e-fuel technology into the Commission's proposals. Germany and Italy's opposition to the ban, after they had earlier agreed to the proposed legislation, shook Brussels, and reopened questions around supposedly climate-neutral e-fuels that have proven too costly for large fleets of vehicles. Click here for the full story.
Volkswagen Pauses on Europe Battery Plants, Awaits EU Response to IRA
Volkswagen is waiting to hear what Europe's response to the U.S. Inflation Reduction Act will be before progressing with plans to build further battery plants in Europe, the company said. "De facto it is the case that we are getting ahead far faster in North America," a person close to the matter said to Reuters. The Financial Times previously reported that Volkswagen was pausing plans for a battery plant in eastern Europe, the next expected plant in the region, and prioritizing building a plant in North America where it could reap $10.54 billion in subsidies. Asked about the report, a Volkswagen spokesperson said the carmaker was "still evaluating suitable locations for our next cell factories in Eastern Europe and North America. No decisions have been made yet." Under former chief executive Herbert Diess, Volkswagen said in March 2021 it would build 6 gigafactories in Europe with total capacity of 240 gigawatt hours. "We stick to our plan to build cell factories for about 240 GWh in Europe by 2030, but for this we need the right framework conditions. That is why we wait and see what the so-called EU Green Deal will bring." Click here for the full story.
Wholesale Used-Vehicle Prices Rise Again in February, Bucking 2022 Trends
Wholesale used-vehicle prices rose in February, fueled by stronger demand and tightened supply, according to two major indicators. One of those, the Manheim Used Vehicle Value Index, recorded a third-straight month of increases. Cox Automotive said that its Manheim index — a measurement of wholesale used-vehicle prices calculated by tracking vehicles sold at Manheim's U.S. auctions and applying statistical analysis to those figures — rose 4.3 percent in February from January. That is the index's largest increase for any February since a 4.4 percent rise in 2009, said Cox, which adjusts its figures for mix, mileage, and seasonality, reports Automotive News. Black Book's Used Vehicle Retention Index — another indicator of wholesale prices, weighted based on registration volume and adjusted for seasonality, vehicle age, mileage, and condition — rose 1.9 percent in February from January after seven months of sequential declines. Still, wholesale prices were down compared with a year earlier, when used-vehicle demand was stronger overall. The Manheim index was 7 percent lower last month compared with the same month in 2022, according to Cox. The company also reported nonadjusted figures for the Manheim index — up 3.7 percent in February from January and down 5.6 percent year over year. Click here for the full story.
BMW Unveils the Newest Version of its BMW iDrive System
The BMW Group has unveiled the latest version of the BMW iDrive. The next-generation system turns the home screen on the BMW Curved Display into a permanently viewable user interface. The system’s QuickSelect concept additionally brings an improved menu structure that takes its cues from consumer electronics devices. QuickSelect makes it possible to directly select entertainment programs, contact lists and vehicle settings, start interaction with the BMW Intelligent Personal Assistant or activate other menu options, all by touch, reports Autofutures. The updated BMW iDrive system will be gradually introduced in current models over the course of 2023. Stephan Durach, Senior Vice President BMW Group Connected Company Development, says: “Today, BMW iDrive is more than just a control and operating system – it’s a digital world of experience allowing human and car to interact with one another and exchange information. As we said at the Consumer Electronics Show in Las Vegas in January 2023, we are continuously enhancing the associated user experience based on the latest available technology.” Click here for the full story.
Average Transaction Price Stays High as Luxury Market Share Grows
The average new-vehicle transaction price in January inched down compared to the previous month, Kelley Blue Book says. But luxury vehicles’ growing share of the light-vehicle market means a significant decrease in average transaction prices is unlikely to happen soon, Brian Moody, executive editor of Kelley Blue Book, tells Wards. “There is more supply now; before, (the market) was supply-constrained,” he says. “Even so, if you consider the record high percentage of luxury buyers, those are still cars transacting at higher rates. So that will keep the average transaction price higher.” Luxury vehicles’ market share in January hit a record 19.6 percent compared with 18.6 percent in December. In January, the average transaction price was $49,388. That was down 0.6 percent compared with December but up 5.9 percent compared to January 2022. “For dealers, that means more profit from the purchase price as well as points on the loans of higher-priced cars,” Moody says. Incentives helped push non-luxury prices down in January, but it was on a case-by-case basis depending on the manufacturer and model, Moody says. The average transaction price for a non-luxury vehicle was $45,344, down $271 in January compared with December. Click here for the full story.
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