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Automakers want to stop the EPA's fuel economy rules change, and why that's a shortsighted move

With a Trump Administration looming, the EPA moved quickly after the election to propose finalizing future fuel economy rules last week. The auto industry doesn't like that (surprise), and has started making moves to stop the EPA. Ford CEO Mark Fields said he wanted to lobby Trump to lower the standards, and now the Auto Alliance, a manufacturer group, is saying it will join the fight against cleaner cars. The Alliance represents 12 automakers: BMW, Fiat Chrysler, Ford, GM, Jaguar Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Porsche, Toyota, VW, and Volvo. Gloria Bergquist, a spokesperson for the Alliance, told Automotive News that the "EPA's sudden and controversial move to propose auto regulations eight months early - even after Congress warned agencies about taking such steps while political appointees were packing their bags - calls out for congressional action to pause this rulemaking until a thoughtful policy review can occur." The EPA was going to consider public comments through April 2017, but then said it would move the deadline to the end of December. That means that it can finalize the rules before President Obama leaves office. The director of public affairs for the Consumer Federation of America, Jack Gillis, said on a conference call with reporters last week when the EPA originally announced its decision that it is unlikely that President Trump will be able to roll back these changes. Gillis also said on the same call that any attempt by the automakers to prevent these changes would be history repeating itself. "These are the same companies that fought airbags, and now promoting the fact that every car has multiple airbags," he said. "These are the same companies that fought the crash-test program, and now are promoting the crash-test ratings published by the government. So, it's clear that they're misperceiving the needs of the American consumer." There are more reasons the Allliance's pushback is flawed. Carol Lee Rawn, the transportation program director for Ceres, said on that call that the automotive industry is a global one, and many automakers are moving to global platforms to help them meet strict fuel economy rules around the world.

BMW considering North American engine plant?

BMW may be set to expand its US operations with a new engine plant, Bloomberg reports. The Bavarian automaker already has its Spartanburg, SC factory which builds the company's X3, X5 and X6 crossovers. According to the story, Mexico is also under consideration for the BMW engine factory, with the report claiming a final decision will be made in 2014.
"Establishing local motor manufacturing abroad is more complex than assembling cars, but it's a logical step for them to eventually start making engines in markets where they're expanding vehicle production," Juergen Pieper, an analyst for Bankhaus Metzler tells Bloomberg. Building engines in the US or Mexico would save BMW from having to ship engines for some of its most popular models across the Atlantic.
BMW, for its part, hasn't said anything concrete. Spokesman Mathias Schmidt is quoted in the story saying, "As part of our long-term growth strategy, we're frequently looking at different countries for possible locations of future production facilities. No decisions have been made yet, though, for an additional plant."

BMW crushing ActiveE EVs, saving all batteries

It's unlikely to spark a movement and a movie, the way a certain EV1 did a decade ago, but anyone who's seen Who Killed The Electric Car? will likely cringe at this bit of news. Despite the fact that crushing and recycling old vehicles is standard operating procedure in the auto industry, when EVs are involved, it's always a touchy subject. The next phase will see "all of the lithium-ion batteries being repurposed for Battery Second Life research projects." So, what's the news? Well, the image you see above, which comes from the spotting of 16 smashed BMW ActiveE EVs on flatbed trailers on California Route 91 near Los Angeles, CA. EV advocate Chelsea Sexton told Green Car Reports, "It's all very deja vu, right down to [BMW's] DriveNow promotion as a don't-look-behind-the-curtain distraction – recall GM touting EV1s being donated to museums and universities? – and VINs spray painted on the sides, allowing former drivers to identify their own cars." BMW's take on this is that the ActiveEs were always meant to have a limited lifespan, and their time has come. As spokesman Dave Buchko tells AutoblogGreen, "The learning begun with the ActiveE will transition to the next phase with all of the lithium-ion batteries being repurposed for Battery Second Life research projects." (You can read his full statement below.) Originally, there were 700 ActiveEs leased to Electronauts (give or take). Yahoo! Autos points out that the ActiveEs were originally imported into the US as "pre-production" cars, which means they can't be sold, they can only be used for carsharing projects or re-leased. Eighty of those ActiveEs recently found a second life as vehicles in BMW's DriveNow carsharing fleet in San Francisco (bringing the total of ActiveEs in the program to 150) and "some have also been returned to Munich for additional research markets," Buchko said. The big picture here is that no one should be sad to see these cars go. Yes, they may have had some life left in them, but the rules say their time is done and everything is being done to crush responsibly in accordance with the law. Like Plug In Cars says, we're in a completely different era now than we were when GM crushed all those EV1s a decade ago. Instead of marking the end of a plug-in vehicle program, sending the ActiveEs away to be recycled is a symbol of the evolution and growth of BMW's i Project.