This Week In Autos: February 19-23, 2024

It's hard enough for someone who lives and breathes the sprawling car industry to keep up with developments, so what chance do others have?

In my role as a senior journalist and now PR guy at Cox Automotive Australia and Manheim Australia , I'm paid to stay across this stuff.

That's why I want to bring you a weekly update looking at 5 interesting stories or developments from the working week.

Albanese's New Vehicle Efficiency Standard continues to divide

The peak body for Australia's car brands is battling what looks like a minor mutiny right now.

We have seen Hyundai and the Volkswagen Group state their disagreement with the FCAI on how to reply to the government's preferred transport CO2 reduction policy. Not via backchannels or behind closed doors, but press releases.

My guess on all this? The government will commit to some concessions during the consultation phase, especially given the slowdown globally atm. But it will take a dim view scare campaigns and partisan lobbying.

MORE: Internal documents suggest car lobby is over-egging price hikes

Troublesome EV resale values causing a rift between OEMs and leasing firms

Leasing companies are reportedly demanding concessions from EV makers, including agreements that manufacturers will buy back vehicles, to protect against further erosion in the second-hand car market.

This means OEMs will probably find ways to pass-on costs of inflated guaranteed future values, further highlighting the importance of stabilising used EV residuals in the face of rampant discounting and quantifiably tapering demand.

Ayvens, a large French multi-brand leasing firm, already has received payments in recent weeks to make up for slumping prices, according to CEO Tim Albertsen as reported by Automotive News Europe.

MORE: Slumping used EV prices force automakers to repay leasing firms

Mercedes-Benz the latest OEM to walk back EV sales target

Mercedes-Benz has delayed its headline electrification goal by five years and will keep updating ICE models, Reuters reports, citing weak demand from core markets amidst household cost pressures.

This is a problem regardless how deep one buries one's head in the sand - ostrich apotheosis - and shows the degree to which many of the world's major OEMs misjudged EV uptake curves to date.

The company reportedly expects sales of electrified vehicles to account for up to 50% of its total by 2030, having previously aimed to meet this target by 2025.

MORE: Mercedes-Benz delays electrification goal, beefs up combustion line-up

Is the US about to slow the pace of EV targets under OEM and union pressure?

The Biden administration is reportedly set to ease the tailpipe CO2 targets imposed on car-makers, after facing pressure from the industry and powerful trade unions, reports the New York Times and Reuters.

The mooted easing of mandates is expected to give OEMs more time to scale up their profitable EV output across the decade before ramping up targets between 2030 and 2032, letting consumer demand beyond early adopters catch up.

The Environmental Protection Agency originally designed its proposed regulations so that 67% of sales of new cars and light-duty trucks would be all-electric by 2032, up from 7.6% in 2023.

MORE: Auto industry pressures Biden government to revise emissions targets

Subaru cuts EV price by 11.5% in response to market conditions

Subaru Australia's importer has slashed $8000 from the sticker price of its first EV, the Solterra, before the car officially launches.

On January 25 this year the company announced an entry RRP of $77,990, which it has cut to $69,990 less than a month later. The readjusted pricing will apply to all pre-orders of course.

Subaru’s decision to slash the price of its electric SUV follows in the footsteps of a similar move by Ford, which late in 2023 – before the first vehicles reached customers?– cut Mustang Mach-E prices by up to $7000.

MORE: Subaru Solterra electric SUV price slashed before launch

Thanks for taking the time to read this weekly wrap, stay tuned for the next one at the same time next Friday.