Latest news with #AdvancedCleanCarsII
NBC News
28-05-2025
- Automotive
- NBC News
Hybrid leader Toyota targets major growth in plug-in vehicles amid industry's EV uncertainty
PLANO, Texas — Twenty-five years after introducing many Americans to hybrid vehicles with the Prius, Toyota Motor is targeting significant growth in plug-in hybrid electric vehicles, or PHEVs. Such vehicles can function as an all-electric vehicle for a certain number of miles before they need a traditional gas-powered engine. Unlike traditional hybrids like the Prius that use a small amount of battery technologies, PHEVs also need to be charged with a plug, like an EV, to use the electric range. PHEVs aren't new. Toyota first introduced the Prius as a PHEV in the U.S. in 2016, but such plug-ins are experiencing a renaissance as automakers try to meet federal fuel economy standards and emissions regulations. They've also acted as potential steppingstones to all-electric vehicles for consumers who might be hesitant to go fully electric. 'We are going to grow our PHEV volume through the lineup over the next few years,' David Christ, head of the Toyota brand in North America, told CNBC during a visit to the company's North American headquarters. 'We love the PHEV powertrain. We're working to increase, perpetually increase, the amount of miles you can drive on EV-only range.' Company sources said Toyota plans to increase PHEVs from 2.4% of its U.S. sales volume last year to roughly 20% by 2030. However, they said that could change based on regulations, customer acceptance of electrified technologies and affordability, among other factors. That percentage of sales would match the amount of PHEV mix allowed under the California Air Resources Board's Advanced Clean Cars II rule, which requires automakers to exclusively sell zero emissions vehicles in the state by 2035. President Donald Trump is expected to eliminate that rule. Toyota's planned PHEV expansion comes amid the regulatory uncertainty and slower-than-expected adoption of all-electric vehicles, which the company also continues to invest billions of dollars in annually. The performance of PHEVs also continues to improve. 'We're looking at plug-ins across the lineup, and it's more a function of where can we build them, and what is the product strength versus the competition,' Christ said. The EV-only range of PHEVs has increased from a few dozen miles in ideal conditions to 50 miles for vehicles such as the automaker's redesigned RAV4 that was introduced last week. Sales estimates and forecasts for PHEVs vary, as their sales are limited and not all companies break out such models when reporting results. Several automotive data and forecasting companies expect modest PHEV growth, to between 4% and 5% of U.S. industry sales by 2030. 'The growth is likely limited due to the expensive dual powertrain cost structure. For those already invested, it may make sense to continue along the path,' said Chris Hopson, principal analyst at S&P Global Mobility. 'However, for those who haven't already made significant investments, it is a large incremental cost that must be balanced.' S&P has PHEV sales in the U.S. growing from about 2% last year to 5% by the end of the decade. AutoPacific expects PHEVs to grow to about 4.2% by 2030, while AutoForecast Solutions expects such sales to be relatively stable around 3.3% over the coming years. PHEV sales for Toyota, including its luxury Lexus brand, increased roughly 39% last year, according to company data. That included a 30% increase for the Toyota brand's Prius and RAV4 PHEVs, as well as an 88.6% jump for Lexus' three PHEVs, including a new 'TX' model. That compares to the automaker's more than 20 hybrid models that experienced a combined sales increase of 53% last year, including a 56% increase for the Toyota brand amid several new introductions. 'We're looking across the lineup and saying, 'How many power trains can we offer on what products?'' Christ said. 'We are going to increase the percentage of hybrids and PHEVs.' Christ said the Toyota brand expects hybrids, including PHEVs, to account for more than 50% of U.S. sales this year, increasing from roughly 46% in 2024 and nearly 30% in 2023. Cooper Ericksen, Toyota North America senior vice president of product and battery electric vehicles, or BEVs, compared the automaker's 'electrified' vehicle approach to having the bases loaded in a baseball game with different players. 'We've got ICE. We've got hybrid. We got plug-in hybrid. We got EV,' he said. 'So, our chances of being successful in scoring runs is just a lot better than if you're really overly committed to any one of those power trains.' Ericksen, citing Toyota research and studies, said once people understand how PHEVs work and their benefits, there's a massive swing in customer interest from traditional vehicles, hybrids and even some EVs. 'Once we educate people, by far the biggest swing from all the powertrains is PHEV. It goes up exponentially,' he told CNBC during a separate interview. 'PHEV is really important for us. There are people that will consider a PHEV that will not consider a BEV.' Consumer understanding of PHEVs has been a challenge in the past. It was partially to blame for the slow sales and discontinuation of General Motors ' Chevrolet Volt, which the automaker produced from 2010 to early 2019. Many consumers also have voiced concern about having to plug the vehicle in. (But the vehicles can still operate as a traditional gas-powered vehicle without ever being plugged in, which has drawn criticism from some EV supporters.) PHEVs are also costly due to the need for both EV technologies and an engine. Toyota's PHEVs currently cost thousands of dollars more than traditional or hybrid vehicles. 'There are a lot of negatives in the production side of it, and buyers, unless they're forced to, don't really opt for the PHEV models,' said Sam Fiorani, AutoForecast Solutions vice president of global vehicle forecasting. Toyota's 2025 RAV4 PHEV carries a roughly $15,000 price premium over the base model and $12,000 over the hybrid version. 'It's kind of like getting two cars in one,' Ericksen said. 'And if it serves a compliance benefit, maybe we sweeten the pot a little bit on the price to get more people to consider it.'
CNBC
28-05-2025
- Automotive
- CNBC
Hybrid leader Toyota targets major growth in plug-in vehicles amid industry's EV uncertainty
PLANO, Texas — Twenty-five years after introducing many Americans to hybrid vehicles with the Prius, Toyota Motor is targeting significant growth in plug-in hybrid electric vehicles, or PHEVs. Such vehicles can function as an all-electric vehicle for a certain number of miles before they need a traditional gas-powered engine. Unlike traditional hybrids like the Prius that use a small amount of battery technologies, PHEVs also need to be charged with a plug, like an EV, to use the electric range. PHEVs aren't new. Toyota first introduced the Prius as a PHEV in the U.S. in 2016, but such plug-ins are experiencing a renaissance as automakers try to meet federal fuel economy standards and emissions regulations. They've also acted as potential steppingstones to all-electric vehicles for consumers who might be hesitant to go fully electric. "We are going to grow our PHEV volume through the lineup over the next few years," David Christ, head of the Toyota brand in North America, told CNBC during a visit to the company's North American headquarters. "We love the PHEV powertrain. We're working to increase, perpetually increase, the amount of miles you can drive on EV-only range." Company sources said Toyota plans to increase PHEVs from 2.4% of its U.S. sales volume last year to roughly 20% by 2030. However, they said that could change based on regulations, customer acceptance of electrified technologies and affordability, among other factors. That percentage of sales would match the amount of PHEV mix allowed under the California Air Resources Board's Advanced Clean Cars II rule, which requires automakers to exclusively sell zero emissions vehicles in the state by 2035. President Donald Trump is expected to eliminate that rule. Toyota's planned PHEV expansion comes amid the regulatory uncertainty and slower-than-expected adoption of all-electric vehicles, which the company also continues to invest billions of dollars in annually. The performance of PHEVs also continues to improve. "We're looking at plug-ins across the lineup, and it's more a function of where can we build them, and what is the product strength versus the competition," Christ said. The EV-only range of PHEVs has increased from a few dozen miles in ideal conditions to 50 miles for vehicles such as the automaker's redesigned RAV4 that was introduced last week. Sales estimates and forecasts for PHEVs vary, as their sales are limited and not all companies break out such models when reporting results. Several automotive data and forecasting companies expect modest PHEV growth, to between 4% and 5% of U.S. industry sales by 2030. "The growth is likely limited due to the expensive dual powertrain cost structure. For those already invested, it may make sense to continue along the path," said Chris Hopson, principal analyst at S&P Global Mobility. "However, for those who haven't already made significant investments, it is a large incremental cost that must be balanced." S&P has PHEV sales in the U.S. growing from about 2% last year to 5% by the end of the decade. AutoPacific expects PHEVs to grow to about 4.2% by 2030, while AutoForecast Solutions expects such sales to be relatively stable around 3.3% over the coming years. PHEV sales for Toyota, including its luxury Lexus brand, increased roughly 39% last year, according to company data. That included a 30% increase for the Toyota brand's Prius and RAV4 PHEVs, as well as an 88.6% jump for Lexus' three PHEVs, including a new "TX" model. That compares to the automaker's more than 20 hybrid models that experienced a combined sales increase of 53% last year, including a 56% increase for the Toyota brand amid several new introductions. "We're looking across the lineup and saying, 'How many power trains can we offer on what products?'" Christ said. "We are going to increase the percentage of hybrids and PHEVs." Christ said the Toyota brand expects hybrids, including PHEVs, to account for more than 50% of U.S. sales this year, increasing from roughly 46% in 2024 and nearly 30% in 2023. Cooper Ericksen, Toyota North America senior vice president of product and battery electric vehicles, or BEVs, compared the automaker's "electrified" vehicle approach to having the bases loaded in a baseball game with different players. "We've got ICE. We've got hybrid. We got plug-in hybrid. We got EV," he said. "So, our chances of being successful in scoring runs is just a lot better than if you're really overly committed to any one of those power trains." Ericksen, citing Toyota research and studies, said once people understand how PHEVs work and their benefits, there's a massive swing in customer interest from traditional vehicles, hybrids and even some EVs. "Once we educate people, by far the biggest swing from all the powertrains is PHEV. It goes up exponentially," he told CNBC during a separate interview. "PHEV is really important for us. There are people that will consider a PHEV that will not consider a BEV." Consumer understanding of PHEVs has been a challenge in the past. It was partially to blame for the slow sales and discontinuation of General Motors' Chevrolet Volt, which the automaker produced from 2010 to early 2019. Many consumers also have voiced concern about having to plug the vehicle in. (But the vehicles can still operate as a traditional gas-powered vehicle without ever being plugged in, which has drawn criticism from some EV supporters.) PHEVs are also costly due to the need for both EV technologies and an engine. Toyota's PHEVs currently cost thousands of dollars more than traditional or hybrid vehicles. "There are a lot of negatives in the production side of it, and buyers, unless they're forced to, don't really opt for the PHEV models," said Sam Fiorani, AutoForecast Solutions vice president of global vehicle forecasting. Toyota's 2025 RAV4 PHEV carries a roughly $15,000 price premium over the base model and $12,000 over the hybrid version. "It's kind of like getting two cars in one," Ericksen said. "And if it serves a compliance benefit, maybe we sweeten the pot a little bit on the price to get more people to consider it."
Yahoo
23-05-2025
- Automotive
- Yahoo
DEP delays electric vehicle sales requirements for two years
BOSTON (SHNS) – The Healey administration said Friday it will not enforce minimum electric vehicle sales requirements for model years 2026 and 2027, administratively taking a step that lawmakers have repeated sought to force legislatively. Under the Advanced Clean Cars II regulation that Massachusetts adopted following California's lead in 2023, vehicle manufacturers are supposed to produce and make available for sale a gradually-increasing percentage of zero-emission vehicles starting at 35% in model year 2026, rising to 43% in model year 2027 and eventually hitting 100% in model year 2035 and beyond. The Department of Environmental Protection said Friday that it 'will exercise enforcement discretion' for model years 2026 and 2027 and declared that 'manufacturers shall not withhold internal combustion vehicles from car and truck dealerships seeking those vehicles.' MassDEP has similarly deferred enforcement of related minimum electric truck sales requirements. 'EVs should be the most affordable and clean option for cars,' Gov. Maura Healey said. 'We're giving carmakers more runway to invest in their manufacturing and supply chains, which will help ensure customers have additional affordable electric vehicles options at dealerships in the future. Massachusetts will continue to invest in charging infrastructure to support the widespread adoption of electric vehicles.' Delaying implementation of the ACC II regulations has been a topic of amendments filed to the spending bills that have been moving between the House and Senate recently. This week, Millbury Sen. Michael Moore withdrew his budget amendment to delay implementation for two years but highlighted what he said would be devastating economic consequences of keeping the rules in place when both demand for electric vehicles and charging infrastructure lag previous expectations. 'By enforcing this rule, manufacturers will have to artificially manipulate vehicle inventory to force more zero-emission vehicles into the state while reducing the number of gas-powered vehicles available,' Moore said. 'Looking at last year, 280,000 new vehicles were sold in Massachusetts. To artificially meet the 35% threshold, there would have to be a reduction of 198,000 gas-powered vehicles, representing a $9 billion reduction in economic activity in Massachusetts.' Senate Minority Leader Bruce Tarr called for a two-year delay to the ACC II regulation Thursday afternoon in a speech on a Senate budget amendment that was ultimately sunk. 'Number one, the electric grid is not ready to handle it. And number two, the demand for these vehicles has not proven to be as robust as we had hoped, and consumer uptake is not nearly where it would need to be to comply with those regulations,' he said. Environmental advocates slammed the MassDEP decision Friday. Environmental League of Massachusetts Legislative Director David Melly said the organization is 'disappointed to see Massachusetts walk back its commitment to Advanced Clean Cars II, causing delays that will harm our communities and the environment.' 'We know that timely progress on electrification of vehicles reduces both transportation emissions and healthcare costs. Our state leaders must step up to fill the gap this policy leaves behind, including firm commitments to expanding charging infrastructure statewide and addressing vehicle pollution in overburdened areas,' he said. Healey's office said it will 'soon announce dedicated additional grant funding for the purchase or lease of electric vehicles for publicly owned fleets, electric school buses, waste collection vehicles, and other vocational vehicles.' It also previewed an announcement related to 'enhanced future grant funding opportunities for existing programs that support medium- and heavy-duty vehicle charging, charging at multi-unit dwellings and educational campuses, charging at workplaces and for commercial fleets, and publicly accessible charging stations through the MassEVIP program.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Politico
23-05-2025
- Automotive
- Politico
Republicans try to unplug the EV era
Remember how the government was going to help America become an electric vehicle superpower? On Thursday, Congress said that's over. The Republican message was crystal clear. The Senate voted to kill the waiver that California relied on to require a giant ramp-up of EV sales. Meanwhile, the House passed a budget reconciliation bill that would methodically destroy the incentives that the Biden administration had used to support EVs, as I wrote today. Depending on one's view, these actions amounted to a correction of Democrats' meddling in the auto market, or a historic retreat from leadership in climate-friendly technology. Big U-turnThe killing of the waiver created a surge of relief among automakers and dealers, who saw California's Advanced Clean Cars II rule — adopted also by 11 other states — as requiring automakers to produce far more EVs than customers are now interested in buying. The House's rollbacks didn't evince that kind of celebration. The politics are trickier. Automakers, after all, have invested billions of dollars to produce EVs, assuming the government would have their back by offering tax breaks for vehicle purchases and battery factories. America's EV sales declined last month, according to Cox Automotive. Nonetheless, automakers presume that interest will rebound as batteries get cheaper and charging stations become more common. That job becomes harder if the House gets its way and ends tax breaks —for batteries and charging stations. A crucial part of the House bill reflects sharp partisan differences in strategy over China. The House essentially voted to forbid Chinese content in EV batteries. That's a departure from the Biden approach, which was to require less Chinese content each year, stepping up domestic capacity while weaning off China as the globe's overwhelmingly dominant battery supplier. The approach that Republicans adopted — more of a crash diet — 'undermines efforts to build robust, secure and reliable access to critical minerals,' said Ben Prochazka, the executive director of the Electrification Coalition, a pro-EV nonprofit. Still not the end of the road? Nothing that happened Thursday is the last word. California immediately went to court to challenge the Senate's reversal of California's waiver. And the Senate counts some Republicans who object to voiding EV subsidies, because that would forestall new battery and automaking jobs back home. Meanwhile on Thursday, a different Trump-inspired campaign against EV subsidies took an intriguing turn. The Government Accountability Office, a nonpartisan arm of Congress, accused Trump's Department of Transportation of acting illegally when it shut off states' access to $5 billion in congressionally approved money for building EV charging stations. Trump's budget chief dismissed the GAO finding as a 'non-event,' but it could preview a conflict down the road if Congress takes umbrage at Trump usurping the legislative branch's spending decisions. 'It could be that this is one of the programs that brings a crazy battle between the executive branch and what powers it has,' said Loren McDonald, an analyst for the EV data consultancy Paren. It's Friday — thank you for tuning in to POLITICO's Power Switch. I'm your host, David Ferris. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to dferris@ Programming note: We'll be off this Monday but will be back in your inboxes on Tuesday, May 27. Today in POLITICO Energy's podcast: James Bikales and Kelsey Tamborrino break down the energy portions of the House Republicans' megabill. Power Centers EPA's 'gold bars' quest gets complicatedThe Environmental Protection Agency's bid to claw back billions in climate finance grants is facing internal contradictions as it continues, Jean Chemnick writes. Administrator Lee Zeldin claimed again this week that the funds are being withheld because of fraud and misconduct. Meanwhile, Justice Department lawyers defending EPA's move have downplayed any malfeasance in court. 'To be clear, we're not accusing anybody of fraud,' Yaakov Roth, an acting assistant attorney general, told a U.S. Court of Appeals panel in D.C. in a Monday hearing. 'I don't want to suggest otherwise.' Climate advocates regroup for Senate fightClimate action defenders are pinning their hopes on the Senate after moderate House Republicans who had defended renewable energy tax credits voted in favor of their chamber's budget reconciliation megabill, Kelsey Brugger and Andres Picon write. The bill that passed Thursday took a sledgehammer to a host of green incentives included in the Democrats' 2022 Inflation Reduction Act. Some Republican senators have been skeptical of dramatic changes to the IRA. 'We're going to urge our supporters in the Senate to make significant changes to this bill,' said Frank Macchiarola, vice president of the American Clean Power Association. Changes coming?Speaking of the Senate, Republicans can lose only three votes as some look to scale back changes to the IRA, James Bikales and Kelsey Tamborrino write. The upper chamber is expected to moderate the version passed by the House. 'We have a lot of work that we need to do on the timeline and scope of the production and investment tax credits,' said Sen. Thom Tillis (R-N.C.). 'Undoubtedly, there's going to be changes.' In Other News More power: The Northwest's only nuclear plant will get $700 million in upgrades after the Bonneville Power Administration approved plans for the expansion this week. Called to act: The late Pope Francis' call to environmental action inspired a Catholic church in Kentucky to be the first in the U.S. to announce plans to reach net-zero carbon emissions. Subscriber Zone A showcase of some of our best subscriber content. White House budget director Ross Vought sounded off on the Government Accountability Office after it issued a report calling the Trump administration's 'impoundment' of federal funds for charger stations illegal. Wisconsin regulators signed off on a utility's plan to add gas-fired power totaling $1.5 billion to supplement new demand from data centers. EPA Administrator Lee Zeldin offered a new argument — six, technically — for why the agency should overhaul the endangerment finding that underpins its climate rules. That's it for today, folks. Thanks for reading, and have a great long weekend!
Yahoo
23-05-2025
- Automotive
- Yahoo
California to sue Trump administration over ‘shortsighted' and ‘illegal' attempt to upend state's emissions standards
California officials announced their intentions on Thursday to file their 23rd lawsuit against the Trump administration — this time, over an attempt to upend the state's stricter-than-federal emissions rules. 'We want to make sure our future generations have clean air to breathe, and a livable planet,' state Attorney General Rob Bonta said at a Thursday press conference. 'Meanwhile, the president's focus on red team versus blue team is threatening California's lives, our economy and our environment. It's undoubtedly shortsighted, and it's also illegal,' Bonta added. The Thursday announcement followed a 51-44 vote in the Senate that morning, in which lawmakers passed a measure to repeal California's phaseout of gas-powered cars. The legislation, which already earned the House's approval, is heading to President Trump's desk for its expected signing into law. Rather than directly overturning California's rule, the bill would revoke the Biden administration's authorization of the Golden State's policy. Both chambers advanced the legislation via the Congressional Review Act (CRA), which enables the repeal of recently approved regulations with a simple majority. Yet in advancing the bill, lawmakers circumvented a ruling from the Senate parliamentarian, who concluded that the act didn't apply to the Biden administration's decision, due to its status as a waiver, rather than a regulation. Nonetheless, Senate Majority Leader John Thune (R-S.D.) conducted several procedural votes on Wednesday night that he deemed sufficient to enable such a vote. The waiver in question, which received the Environmental Protection Agency's (EPA) approval in December, enabled the implementation of California's Advanced Clean Cars II regulations. These stricter-than-federal emissions standards sought to require that 35 percent of cars sold in California in 2026 be zero-emissions, followed by 68 percent in 2030 and 100 percent in 2035. California can set such standards through a 1970 Clean Air Act clause, written amid historic smog conditions in the Los Angeles area. But to do so, the Golden State must first apply to the EPA for a waiver for each rule it wants to set — and only then can other states follow suit. At the press conference announcing the lawsuit on Thursday, California Gov. Gavin Newsom (D) said that while he and his colleagues 'anticipated being back here,' they 'didn't expect the path' that the administration elected to take with the CRA. 'They decided to change the rules that have been established in the United States Senate, protocols that have been well established for centuries, in order to attack California, in order to pollute more,' Newsom said. Bonta slammed the Trump administration for its 'unlawful and unprecedented CRA resolutions,' stressing that the law has been in place for 30 years and 'has never, ever, not once, been used to apply to a waiver.' 'This is a workaround for Trump to punish California for defying his efforts to bring us backward,' Bonta said. 'The federal government's overreach is illogical. It's politically motivated, and it comes at the expense of Californians' lives and livelihoods.' Revoking these waivers, Bonta contended, would hamper the state's abilities to advance the use of electric vehicles, fight climate change, decrease pollution and build a greener economy. Liane Randolph, chair of the California Air Resources Board, noted that the EPA has granted California more than 100 waivers across administrations on both sides of the aisle, and has demonstrated that these policies are both feasible and successful. Newsom, meanwhile, invoked the legacy of former President Reagan, a Republican who advanced California clean air policies as governor and whose portrait hangs above Trump's desk. The current governor recalled telling the president a few weeks ago that Reagan would 'be looking down in shame' if he signs legislation 'authorizing the degradation of his legacy.' Newsom characterized this moment as a 'big day for big oil, big day for GM and Toyota, big day for China' — and as a 'terrible day for your kids, terrible day for air quality, terrible day for innovation and entrepreneurship.' 'We are ceding our leadership, and we are going backwards, a half a century, with yesterday's technology,' he said, accusing the administration of 'doubling down on stupid.' 'They want to recreate the 19th century, and we want to dominate the 21st century,' the governor added. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
