UK car sector accelerates toward electric future

Europe witnesses a growing trend for car consumers looking for more environmentally conscious and efficient products. (Reuters)
Updated 22 July 2019

UK car sector accelerates toward electric future

  • A total of 214 models will be available for purchase by 2021, up from 60 in late 2018

LONDON: Britain’s auto industry, seeking to swerve Brexit obstacles, is accelerating toward electrification as consumers shun high-polluting diesels, driven by rapid advances in technology and greener government policy.

Four famous car brands born in Britain but now foreign-owned — German-held Bentley and Mini, Indian-backed Jaguar Land Rover, and Chinese-controlled Lotus — have each this month outlined plans for purely electric models to sit alongside their petrol vehicles.
All-electric cars, which need to be charged from the mains, and hybrids, which combine electrics with petrol or gasoline engines, are gaining in popularity as more consumers turn away from the pollution-spewing internal combustion engine.
“You need to be into electrification,” Lotus Cars chief executive Phil Popham told AFP in an interview after unveiling the firm’s first all-electric sports car Evija — pronounced “E-vi-ya” — which the company will start making next year.
Lotus, 51-percent owned by Chinese auto giant Geely, plans an initial sale of only 130 of the supercars, which will each cost about £1.7 million ($2.1 million).

Heading toward future
“Electrification is absolutely part of our future,” said Popham. “In the not-too-distant future, all of our cars will offer electrification.”
Lotus’ plant in Hethel, eastern England, will see a £100-million investment over the next five years as it ramps up its sports car range with financial firepower and technical knowhow from Geely, which bought its majority stake two years ago. Etika Automotive of Malaysia holds the remaining 49 percent of Lotus.

NUMBER

200 mph will be the top speed of the lotus hypercar Evija.

Popham said the removal of large components, like the internal combustion engine and gearbox, will see the so-called hypercar Evija have an electric motor on each wheel.
It will reach 0-60 miles per hour in three seconds and have a top speed of 200 mph. Fully charged however, it will be able to drive a distance of only 250 miles.
In the more affordable premium market, Jaguar Land Rover, owned by India’s Tata Motors, is planning a range of electric vehicles at its central England factory — starting with the next-generation Jaguar XJ luxury saloon model.
“The future of mobility is electric,” said JLR CEO Ralf Speth, whose company introduced its first electric vehicle I-PACE last year.
Elsewhere, BMW-division Mini recently launched plans for its first all-electric Mini Cooper at its factory in Cowley, southern England.
“We’ll be able to really react to demand from customers as we go forward because Mini electric (cars) go down exactly the same production line as the traditional combustion engine product,” David George, director of Mini UK, told AFP on a visit to the facility.

SPEEDREAD

In Europe as a whole, the number of electric car models, including hybrids, is set to triple by 2021.

In Europe as a whole, the number of electric car models, including hybrids, is set to triple by 2021, according to Brussels-based environmental lobby group Transport & Environment.
A total of 214 models will be available for purchase by 2021, up from 60 in late 2018, T&E said.
“There is a growing trend for consumers to be looking for more environmentally conscious and efficient products and technologies,” Bentley CEO Adrian Hallmark told AFP.
He was speaking in July after the Volkswagen-owned luxury carmaker detailed its futuristic all-electric self-driving concept, the EXP 100 GT, at its facility in central England.
When Nissan unveiled its first mass-market electric car hatchback Leaf nine years ago, the Japanese carmaker described it as a “game-changer” for Britain’s biggest car plant in Sunderland, northeastern England.
Since then, more and more carmakers have sped up plans for more environment-friendly products — and also electrify their current offerings.
However, Cardiff University economics professor and auto specialist Peter Wells lamented the fact that many automakers were merely replicating electric versions of pre-existing models — rather than optimising how they deploy cutting-edge technology.
“The mindset is that the industry should simply replicate the existing petrol/diesel product ranges, only in hybrid and electric,” said Wells.
“In my view, this strategy can still result in less than optimized vehicle designs,” he noted.


WEEKLY ENERGY RECAP: Keeping things in balance

Updated 08 December 2019

WEEKLY ENERGY RECAP: Keeping things in balance

  • The over-compliance will result in cuts of 1.7 million bpd

Brent crude rose above $64 per barrel after OPEC+ producers unanimously agreed to deepen output cuts by 503,000 barrels per day (bpd) to a total 1.7 million bpd till the end of the first quarter of 2020.

The breakdown is that OPEC producers are due to cut 372,000 bpd and non-OPEC producers to cut 131,000 bpd.

Current market dynamics led to this decision as oil price-positive news outweighed more bearish developments in the US-China trade narrative that has weighed on oil prices throughout the year, with US crude exports rising to a record 3.4 million bpd in October versus 3.1 million bpd in September.

OPEC November crude oil output levels at 29.8 million bpd show that producers were already overcomplying with its current 1.2 million bpd output cuts deal by around 400,000 bpd. 

The over-compliance will result in cuts of 1.7 million bpd, especially when Saudi Arabia continues to voluntarily cut more than its share.

This makes the agreed 1.7 million bpd output cuts pragmatic since it won’t taken any barrels out of the market.

It isn’t a matter of OPEC making room in the market for other additional supplies from non-OPEC sources, as OPEC barrels can’t be easily replaced.

Instead, this is about avoiding any oversupply that might damage the global supply-demand balance.

Saudi energy minister Prince Abdulaziz bin Salman has effectively kept his promise and managed to smoothly forge a consensus among OPEC and non-OPEC producers.

He has also successfully managed the 24-country coalition of OPEC+ including Russia in reaching an agreement.

Despite suggestions otherwise in recent coverage of the Vienna meeting, the deeper cuts announced on Friday have nothing to do with the Aramco IPO. Let’s remember this meeting was scheduled six months ago and the IPO has been in the works for much longer.

The Aramco share sale did not target a specific oil price. If that was a motivating factor it could easily have chosen another time.