Nissan to test electric cars in Tennessee

By Reuters


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Nissan Motor Co has formed a partnership with Tennessee to study the infrastructure needed to support the roll-out of electric cars starting in 2011, Nissan Chief Executive Carlos Ghosn said.

"We are forming a partnership with the state of Tennessee to promote zero-emission mobility," Ghosn said at the opening of the Japanese automaker's new headquarters in Nashville.

The tie-up will include the Tennessee Valley Authority, a federally controlled utility that ranks as the nation's largest, supplying electricity to residents in seven states.

Nissan, which trails Japanese rivals Toyota Motor Corp and Honda Motor Co in hybrid technology, has made it a priority to become a leader in the still emerging market for fully electric vehicles.

By 2010, Nissan plans to start testing an all-new electric car being developed in Japan. It is aiming for global sales of the still-unnamed, battery-powered car by 2012.

Tennessee Gov. Phil Bredesen said state agencies would look at how to support Nissan's electric car development efforts, including the possibility of setting up charging stations.

The partnership is one of several between automakers, electric power utilities and government agencies. Ford Motor Co and General Motors Corp both have tie-ups with the utility industry to cooperate in electric vehicle development.

Ghosn signed a similar deal earlier this month with Portugal that would create a national recharging network. Nissan and its French alliance partner Renault SA also have similar tie-ups with Israel and Denmark.

Speaking to reporters, Ghosn said such government partnerships would provide a crucial boost for electric cars at a time of soaring gasoline prices.

"We are seeing a lot of political interest, which is very supportive," Ghosn said. "What's driving zero-emissions today are cities and countries. It's not companies."

Ghosn said Nissan's new electric car would have no back-up combustion engine, making it a zero-emission vehicle that would comply with the type California has mandated.

"I am insisting that I want a pure electric car," Ghosn said, adding that Nissan's car would be an all-new, small car built for more than just limited city driving.

Ghosn also said he wanted to take Nissan into "the battery business," opening the prospect that it could supply other automakers with next-generation lithium-ion battery packs from a joint venture with Japan's NEC Corp.

Ghosn's backing for pure electric cars sets Nissan off against the strategy of its larger rivals.

Honda is concentrating on its next-generation hybrid models. GM, meanwhile, is racing Toyota to bring the first mass-market rechargeable hybrid cars to market by 2010.

GM's Chevy Volt, a plug-in hybrid, is being designed to have a 40-mile (60 kilometer) battery-powered range with an onboard gas engine that will be used to recharge the battery for longer trips.

Toyota is planning similar tests with a plug-in version of its market-leading Prius hybrid.

Ghosn also serves as the chief executive of Renault, which has a controlling 44-percent stake in Nissan.

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Nuclear helps Belgium increase electricity exports in 2019

Belgium Energy Mix 2019 shows strong nuclear output, rising offshore wind, net electricity exports, and robust interconnections, per Elia, as the nuclear phaseout drives 3.9GW new capacity needs after improved reactor availability.

 

Key Points

High nuclear share, offshore wind, net exports, interconnections; 3.9GW capacity needed amid nuclear phaseout.

✅ Nuclear supplied 48.8% of generation in 2019.

✅ Net exporter: 1.8 TWh, aided by interconnections.

✅ Elia projects 3.9GW new capacity for phaseout.

 

Belgium's electricity transmission system operator, Elia, said that the major trends in 2019 were a steady increase in (mainly offshore) renewable power generation, illustrated by EU wind and solar records across the bloc, better availability of nuclear-generating facilities and an increase in electricity exports.

In 2019, 48.8% of the power generated in Belgium came from nuclear plants. This was in line with the total for 2017 (50%) and significantly more than in 2018 (31.2%) when several reactors were unavailable amid stunted hydro and nuclear output in Europe as well.

Belgium exported more electricity in 2019, as neighbors like Germany saw renewables overtake coal and nuclear generation, with net exports of 1.8TWh (2.1% of the energy mix), in contrast to 2018 when Belgium imported 17.5TWh (20%).

Elia said this “should be viewed in its wider context, of declining nuclear capacity in Europe and regional market shifts, against the backdrop of an increasingly Europeanised market, and can be explained primarily by the good availability of Belgium's generating facilities (especially its nuclear power stations).”

The development of interconnections was also a key factor in the circulation of these electricity flows, as seen with Irish grid price spikes highlighting regional stress, Elia noted.

“Belgium had not been a net exporter of electricity for almost 10 years, the last time being in 2009 and 2010, when total net exports represented 2.8% and 0.2% respectively of Belgium’s energy mix,” it said.

Belgian has seven nuclear reactors – three at Tihange near Liege and four at Doel near Antwerp – and, regionally, nuclear-powered France faces outage risks that influence cross-border reliability.

In 2003, Belgium decided to phase out nuclear power and passed a law to that effect, with neighbors like Germany navigating a balancing act during their energy transition, which was reaffirmed in 2015 and 2018.

A commission appointed to assess the impact of the nuclear phaseout is scheduled to be completed in 2025 but has yet to report any findings.

Elia estimates that some 3.9GW of new power generating capacity will be needed to compensate for Belgium's nuclear phaseout.

 

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Biden administration pushes to revitalize coal communities with clean energy projects

Coal-to-Clean Energy Hubs leverage Bipartisan Infrastructure Law and Inflation Reduction Act funding to repurpose mine lands with microgrids, advanced nuclear, carbon capture, and rare earth processing, boosting energy security, jobs, and grid modernization.

 

Key Points

They are federal projects converting coal communities and mine lands into clean energy hubs, repurposing infrastructure.

✅ DOE demos on mine lands: microgrids, nuclear, carbon capture.

✅ Funding from BIL, CHIPS and IRA targets energy communities.

✅ Rare earths from coal waste bolster EV supply chains.

 

The Biden administration is channeling hundreds of millions of dollars in clean energy funding from recent legislation into its efforts to turn coal communities into clean energy hubs, the White House said.

The administration gave an update on its push across agencies to kick-start projects nationwide with funding Congress approved during Biden’s first two years in office. The effort includes $450 million from the Bipartisan Infrastructure Law that the Department of Energy will allocate to an array of new clean energy demonstration projects on former mine lands.

“These projects could focus on a range of technologies from microgrids to advanced nuclear to power plans with carbon capture,” Energy Secretary Jennifer Granholm said on a call with reporters Monday. “They’ll prove out the potential to reactivate or repurpose existing infrastructure like transmission lines and substations across an aging U.S. power grid, and these projects could spur new economic development in these communities.”

Among the projects the White House highlighted, it said $16 million from the infrastructure law will go to the University of North Dakota and West Virginia University to create design studies for the first-ever full-scale refinery facility in the U.S. that could extract and separate rare earth elements and minerals from coal mine waste streams. The materials are critical for electric vehicle-battery components that are currently heavily sourced from outside the U.S.

“Those efforts will pave the way toward building a first of its kind facility that produces essential materials for solar panels, wind turbines, EVs and more while cleaning up polluted land and water and creating good-paying jobs for local workers,” Granholm said.

Biden created an interagency working group focused on revitalizing coal-power communities through federal investments when he took office. In 2021, the group selected 25 priority areas ranging from West Virginia to Wyoming to focus on development, as high natural gas prices strengthened the case for clean electricity. There are nearly 18,000 identified mine sites across 1.5 million acres in the United States, according to the White House.

The massive effort fits into a broader Biden administration push to both fight climate change and support communities that have lost economic activity during a transition away from fossil fuel sources such as coal. While Biden’s most ambitious clean energy plans fell flat in Congress in the face of opposition from Republicans and some Democrats after the previous administration’s power plant overhaul, three major laws still unlocked funding for his administration to deploy.

Many of the initiatives are made possible through the Bipartisan Infrastructure Law, Chips and Science Act and the Inflation Reduction Act, even without a clean electricity standard on the books. The task force aims to make sure communities most affected by the changing energy landscape are taking maximum advantage of the federal benefits.

“Those new and expanded operations are coming to energy communities and creating good paying jobs,” Biden’s senior advisor for clean energy innovation and implementation John Podesta said on the call. “These laws can provide substantial federal support to energy communities like capping abandoned oil and gas wells, extracting critical minerals, building battery factories and launching demonstration projects in carbon capture or green hydrogen.”

The administration touted the potential benefits of the Inflation Reduction Act, a bill passed by Democrats to spur clean energy investments last year, even as early assessments show mixed results to date. At the time, U.S. consumers were dealing with decades-high inflation fueled in part by an energy crisis and high gas prices that drove debate — a point Republicans emphasized as the plan moved through Congress.

Deputy Treasury Secretary Wally Adeyemo said the Inflation Reduction Act aims to both “lower the deficit, as well as promote our energy security, lowering energy costs for consumers and combatting climate change.”

“As the Treasury works to implement the law, we’re focused on ensuring that all Americans benefit from the growth of the clean energy economy, particularly those who live in communities that have been dependent on the energy sector for job for a long time,” Adeyemo told reporters. “Economic growth and productivity are higher when all communities are able to reach their full potential.”

 

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Europe's Thirst for Electricity Spurs Nordic Grid Blockade

Nordic Power Grid Dispute highlights cross-border interconnector congestion, curtailed exports and imports, hydropower priorities, winter demand spikes, rising spot prices, and transmission grid security amid decarbonization efforts across Sweden, Norway, Finland, and Denmark.

 

Key Points

A clash over interconnectors and capacity cuts reshaping trade, prices, and reliability in the Nordic power market.

✅ Sweden cuts interconnector capacity to protect grid stability

✅ Norway prioritizes higher-priced exports via new cables

✅ Finland and Denmark seek EU action on capacity curtailments

 

A spat over electricity supplies is heating up in northern Europe. Sweden is blocking Norway from using its grids to transfer power from producers throughout the region. That’s angered Norway, which in turn has cut flows to its Nordic neighbor.

The dispute has built up around the use of cross-border power cables, which are a key part of Europe’s plans to decarbonize since they give adjacent countries access to low-carbon resources such as wind or hydropower. The electricity flows to wherever prices are higher, informed by how electricity is priced across Europe, without interference from grid operators -- but in the event of a supply squeeze, flows can be stopped.

Sweden moved to safeguard the security of its grid after Norway started increasing electricity exports through huge new cables to Germany and the U.K. Those exports at times have drawn energy away from Sweden, resulting in the country’s system operator cutting capacity at its Nordic borders, preventing exports but also hindering imports, which it relies on to handle demand spikes during winter.

“This is not a good situation in the long run,” Christian Holtz, a energy market consultant for Merlin & Metis AB.

Norway hit back last week by cutting flows to Sweden, this will prioritize better paying customers in Europe, amid Irish price spikes that highlight dispatchable shortages, giving them access to its vast hydro resources at the expense of its Nordic neighbors. 

By partially closing its borders Sweden can’t access imports either, which it relies on to handle demand spikes during the coldest days of the winter. 

In Denmark, unusual summer and autumn winds have at times delivered extraordinarily low electricity prices that ripple through regional markets.

The Swedish grid manager Svenska Kraftnat has reduced export capacity at cables across its borders by as much as half this year to keep operations secure. Finland and Denmark rely on imports too and the cuts will come at a cost for millions of homes and industries across the four nations already contending with record electricity rates this year. 

Finland and Denmark want the European Union to end the exemption to regulations that make such reductions possible in the first place, as Europe is losing nuclear power and facing tighter supply.

“Imports from our neighboring countries ensure adequacy at times of peak consumption,” said Reima Paivinen, head of operation at the Finland’s Fingrid. “The recent surge in electricity prices throughout Europe does not directly affect the adequacy of electricity, but prices may rise dramatically for short periods.”

Svenska Kraftnat says it’s not political -- it has no choice but to cut capacity until its old grids are expanded to handle the new direction of flows, a challenge mirrored by grid expansion woes in Germany that slow integration. That could take at least until 2030 to complete, it said earlier this year. At the same time, Norway halving available export capacity to about 1,200 megawatts will increase risk of shortages. 

“If we need more we will have to count on imports from other countries,” said Erik Ek, head of strategic operation at Svenska Kraftnat. “If that is not available, we will have to disconnect users the day it gets cold.”

 

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Trump's Vision of U.S. Energy Dominance Faces Real-World Constraints

U.S. Energy Dominance envisions deregulation, oil and gas growth, LNG exports, pipelines, and geopolitical leverage, while facing OPEC pricing power, infrastructure bottlenecks, climate policy pressures, and accelerating renewables in global markets.

 

Key Points

U.S. policy to grow fossil fuel output and exports via deregulation, bolstering energy security, geopolitical influence.

✅ Deregulation to expand drilling, pipelines, and export capacity

✅ Exposed to OPEC pricing, global shocks, and cost competitiveness

✅ Faces infrastructure, ESG finance, and renewables transition risks

 

Former President Donald Trump has consistently advocated for “energy dominance” as a cornerstone of his energy policy. In his vision, the United States would leverage its abundant natural resources to achieve energy self-sufficiency, flood global markets with cheap energy, and undercut competitors like Russia and OPEC nations. However, while the rhetoric resonates with many Americans, particularly those in energy-producing states, the pursuit of energy dominance faces significant real-world challenges that could limit its feasibility and impact.

The Energy Dominance Vision

Trump’s energy dominance strategy revolves around deregulation, increased domestic production of oil and gas, and the rollback of climate-oriented restrictions. During his presidency, he emphasized opening federal lands to drilling, accelerating the approval of pipelines, and, through an executive order, boosting uranium and nuclear energy initiatives, as well as withdrawing from international agreements like the Paris Climate Accord. The goal was not only to meet domestic energy demands but also to establish the U.S. as a major exporter of fossil fuels, thereby reducing reliance on foreign energy sources.

This approach gained traction during Trump’s first term, with the U.S. achieving record levels of oil and natural gas production. Energy exports surged, making the U.S. a net energy exporter for the first time in decades. Yet, critics argue that this policy prioritizes short-term economic gains over long-term sustainability, while supporters believe it provides a roadmap for energy security and geopolitical leverage.

Market Realities

The energy market is complex, influenced by factors beyond the control of any single administration, with energy crisis impacts often cascading across sectors. While the U.S. has significant reserves of oil and gas, the global market sets prices. Even if the U.S. ramps up production, it cannot insulate itself entirely from price shocks caused by geopolitical instability, OPEC production cuts, or natural disasters.

For instance, despite record production in the late 2010s, American consumers faced volatile gasoline prices during an energy crisis driven by $5 gas and external factors like tensions in the Middle East and fluctuating global demand. Additionally, the cost of production in the U.S. is often higher than in countries with more easily accessible reserves, such as Saudi Arabia. This limits the competitive advantage of U.S. energy producers in global markets.

Infrastructure and Environmental Concerns

A major obstacle to achieving energy dominance is infrastructure. Expanding oil and gas production requires investments in pipelines, export terminals, and refineries. However, these projects often face delays due to regulatory hurdles, legal challenges, and public opposition. High-profile pipeline projects like Keystone XL and Dakota Access have become battlegrounds between industry proponents and environmental activists, and cross-border dynamics such as support for Canadian energy projects amid tariff threats further complicate permitting, highlighting the difficulty of reconciling energy expansion with environmental and community concerns.

Moreover, the transition to cleaner energy sources is accelerating globally, with many countries committing to net-zero emissions targets. This trend could reduce the demand for fossil fuels in the long run, potentially leaving U.S. producers with stranded assets if global markets shift more quickly than anticipated.

Geopolitical Implications

Trump’s energy dominance strategy also hinges on the belief that U.S. energy exports can weaken adversaries like Russia and Iran. While increased American exports of liquefied natural gas (LNG) to Europe have reduced the continent’s reliance on Russian gas, achieving total energy independence for allies is a monumental task. Europe’s energy infrastructure, designed for pipeline imports from Russia, cannot be overhauled overnight to accommodate LNG shipments.

Additionally, the influence of major producers like Saudi Arabia and the OPEC+ alliance remains significant, even as shifts in U.S. policy affect neighbors; in Canada, some viewed Biden as better for the energy sector than alternatives. These countries can adjust production levels to influence prices, sometimes undercutting U.S. efforts to expand its market share.

The Renewable Energy Challenge

The growing focus on renewable energy adds another layer of complexity. Solar, wind, and battery storage technologies are becoming increasingly cost-competitive with fossil fuels. Many U.S. states and private companies are investing heavily in clean energy to align with consumer preferences and global trends, amid arguments that stepping away from fossil fuels can bolster national security. This shift could dampen the domestic demand for oil and gas, challenging the long-term viability of Trump’s energy dominance agenda.

Moreover, international pressure to address climate change could limit the expansion of fossil fuel infrastructure. Financial institutions and investors are increasingly reluctant to fund projects perceived as environmentally harmful, further constraining growth in the sector.

While Trump’s call for U.S. energy dominance taps into a desire for economic growth and energy security, it faces numerous challenges. Global market dynamics, infrastructure bottlenecks, environmental concerns, and the transition to renewable energy all pose significant barriers to achieving the ambitious vision.

For the U.S. to navigate these challenges effectively, a balanced approach that incorporates both traditional energy sources and investments in clean energy is likely needed. Striking this balance will require careful policymaking that considers not just immediate economic gains but also long-term sustainability and global competitiveness.

 

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Swiss Earthquake Service and ETH Zurich aim to make geothermal energy safer

Advanced Traffic Light System for Geothermal Safety models fracture growth and friction with rock physics, geophones, and supercomputers to predict induced seismicity during hydraulic stimulation, enabling real-time risk control for ETH Zurich and SED.

 

Key Points

ATLS uses rock physics, geophones, and HPC to forecast induced seismicity in real time during geothermal stimulation.

✅ Real-time seismic risk forecasts during hydraulic stimulation

✅ Uses rock physics, friction, and fracture modeling on HPC

✅ Supports ETH Zurich and SED field tests in Iceland and Bedretto

 

The Swiss Earthquake Service and ETH Zurich want to make geothermal energy safer, so news piece from Switzerland earlier this month. This is to be made possible by new software, including machine learning, and the computing power of supercomputers. The first geothermal tests have already been carried out in Iceland, and more will follow in the Bedretto laboratory.

In areas with volcanic activity, the conditions for operating geothermal plants are ideal. In Iceland, the Hellisheidi power plant makes an important contribution to sustainable energy use, alongside innovations like electricity from snow in cold regions.

Deep geothermal energy still has potential. This is the basis of the 2050 energy strategy. While the inexhaustible source of energy in volcanically active areas along fault zones of the earth’s crust can be tapped with comparatively little effort and, where viable, HVDC transmission used to move power to demand centers, access on the continents is often much more difficult and risky. Because the geology of Switzerland creates conditions that are more difficult for sustainable energy production.

Improve the water permeability of the rock

On one hand, you have to drill four to five kilometers deep to reach the correspondingly heated layers of earth in Switzerland. It is only at this depth that temperatures between 160 and 180 degrees Celsius can be reached, which is necessary for an economically usable water cycle. On the other hand, the problem of low permeability arises with rock at these depths. “We need a permeability of at least 10 millidarcy, but you can typically only find a thousandth of this value at a depth of four to five kilometers,” says Thomas Driesner, professor at the Institute of Geochemistry and Petrology at ETH Zurich.

In order to improve the permeability, water is pumped into the subsurface using the so-called “fracture”. The water acts against friction, any fracture surfaces shift against each other and tensions are released. This hydraulic stimulation expands fractures in the rock so that the water can circulate in the hot crust. The fractures in the earth’s crust originate from tectonic tensions, caused in Switzerland by the Adriatic plate, which moves northwards and presses against the Eurasian plate.

In addition to geothermal energy, the “Advanced Traffic Light System” could also be used in underground construction or in construction projects for the storage of carbon dioxide.

Quake due to water injection

The disadvantage of such hydraulic stimulations are vibrations, which are often so weak or cannot be perceived without measuring instruments. But that was not the case with the geothermal projects in St. Gallen 2013 and Basel 2016. A total of around 11,000 cubic meters of water were pumped into the borehole in Basel, causing the pressure to rise. Using statistical surveys, the magnitudes 2.4 and 2.9 defined two limit values ??for the maximum permitted magnitude of the earthquakes generated. If these are reached, the water supply is stopped.

In Basel, however, there was a series of vibrations after a loud bang, with a time delay there were stronger earthquakes, which startled the residents. In both cities, earthquakes with a magnitude greater than 3 have been recorded. Since then it has been clear that reaching threshold values ??determines the stop of the water discharge, but this does not guarantee safety during the actual drilling process.

Simulation during stimulation

The Swiss Seismological Service SED and the ETH Zurich are now pursuing a new approach that can be used to predict in real time, building on advances by electricity prediction specialists in Europe, during a hydraulic stimulation whether noticeable earthquakes are expected in the further course. This is to be made possible by the so-called “Advanced Traffic Light System” based on rock physics, a software developed by the SED, which carries out the analysis on a high-performance computer.

Geophones measure the ground vibrations around the borehole, which serve as indicators for the probability of noticeable earthquakes. The supercomputer then runs through millions of possible scenarios, similar to algorithms to prevent power blackouts during ransomware attacks, based on the number and type of fractures to be expected, the friction and tensions in the rock. Finally, you can filter out the scenario that best reflects the underground.

Further tests in the mountain

However, research is currently still lacking any real test facility for the system, because incorrect measurements must be eliminated and a certain data format adhered to before the calculations on the supercomputer. The first tests were carried out in Iceland last year, with more to follow in the Bedretto geothermal laboratory in late summer, where reliable backup power from fuel cell solutions can keep instrumentation running. An optimum can now be found between increasing the permeability of rock layers and an adequate water supply.

The new approach could make geothermal energy safer and ultimately help this energy source to become more accepted, while grid upgrades like superconducting cables improve efficiency. Research also sees areas of application wherever artificially caused earthquakes can occur, such as in underground mining or in the storage of carbon dioxide underground.

 

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Electric vehicles to transform the aftermarket … eventually

Heavy-Duty Truck Electrification is disrupting the aftermarket as diesel declines: fewer parts, regenerative braking, emissions rules, e-drives, gearboxes, and software engineering needs reshape service demand, while ICE fleets persist for years.

 

Key Points

Transition of heavy trucks to EV systems, reducing parts and emissions while reshaping aftermarket service and skills.

✅ 33% fewer parts; regenerative braking slashes brake wear

✅ Diesel share declines; EVs and natural gas slowly gain

✅ Aftermarket shifts to e-drives, gearboxes, software and service

 

Those who sell parts and repair trucks might feel uneasy when reports emerge about a coming generation of electric trucks.

There are reportedly about 33% fewer parts to consider when internal combustion engines and transmissions are replaced by electric motors. Features such as regenerative braking are expected to dramatically reduce brake wear. As for many of the fluids needed to keep components moving? They can remain in their tanks and drums.

Think of them as disruptors. But presenters during the annual Heavy Duty Aftermarket Dialogue are stressing that the changes are not coming overnight. Chris Patterson, a consultant and former Daimler Trucks North America CEO, noted that the Daimler electrification plan underscores the shift as he counts just 50 electrified heavy trucks in North America.

About 88% of today’s trucks run on diesel, with the remaining 12% mostly powered by gasoline, said John Blodgett, MacKay and Company’s vice-president of sales and marketing. Five years out, even amid talk of an EV inflection point, he expects 1% to be electric, 2% to be natural gas, 12% to be gasoline, and 84% on diesel.

But a decade from now, forecasts suggest a split of 76% diesel, 11% gasoline, 7% electric, and 5% natural gas, with a fraction of a percent relying on hydrogen-electric power. Existing internal combustion engines will still be in service, and need to be serviced, but aftermarket suppliers are now preparing for their roles in the mix, especially as Canada’s EV opportunity comes into focus for North American players.

“This is real, for sure,” said Delphi Technologies CEO Rick Dauch.

Aftermarket support is needed
“As programs are launched five to six years from now, what are the parts coming back?” he asked the crowd. “Braking and steering. The fuel injection business will go down, but not for 20-25 years.” The electric vehicles will also require a gear box and motor.

“You still have a business model,” he assured the crowd of aftermarket professionals.

Shifting emissions standards are largely responsible for the transformation that is occurring. In Europe, Volkswagen’s diesel emissions scandal and future emissions rules of Euro 7 will essentially sideline diesel-powered cars, even as electric buses have yet to take over transit systems. Delphi’s light-duty diesel business has dropped 70% in just five years, leading to plant closures in Spain, France and England.

“We’ve got a billion-dollar business in electrification, last year down $200 million because of the downturn in light-duty diesel controllers,” Dauch said. “We think we’re going to double our electrification business in five years.”

That has meant opening five new plants in Eastern European markets like Turkey, Romania and Poland alone.

Deciding when the market will emerge is no small task, however. One new plant in China offered manufacturing capacity in July 2019, but it has yet to make any electric vehicle parts, highlighting mainstream EV challenges tied to policy shifts, because the Chinese government changed the incentive plans for electric vehicles.

‘All in’ on electric vehicles
Dana has also gone “all in” on electrification, said chairman and CEO Jim Kamsickas, referring to Dana’s work on e-drives with Kenworth and Peterbilt. Its gasket business is focusing on the needs of battery cooling systems and enclosures.

But he also puts the demand for new electric vehicle systems in perspective. “The mechanical piece is still going to be there.”

The demand for the new components and systems, however, has both companies challenged to find enough capable software engineers. Delphi has 1,600 of them now, and it needs more.

“Just being a motor supplier, just being an inverter supplier, just being a gearbox supplier itself, yes you’ll get value out of that. But in the longhaul you’re going to need to have engineers,” Kamsickas said of the work to develop systems.

Dauch noted that Delphi will leave the capital-intensive work of producing batteries to other companies in markets like China and Korea. “We’re going to make the systems that are in between – inverters, chargers, battery management systems,” he said.

Difficult change
But people working for European companies that have been built around diesel components are facing difficult days. Dauch refers to one German village with a population of 1,200, about 800 of whom build diesel engine parts. That business is working furiously to shift to producing gasoline parts.

Electrification will face hurdles of its own, of course. Major cities around the world are looking to ban diesel-powered vehicles by 2050, but they still lack the infrastructure needed to charge all the cars and truck fleet charging at scale, he added.

Kamsickas welcomes the disruptive forces.

“This is great,” he said. “It’s making us all think a little differently. It’s just that business models have had to pivot – for you, for us, for everybody.”

They need to be balanced against other business demands, including evolving cross-border EV collaboration dynamics, too.

Said Kamsickas: “Working through the disruption of electrification, it’s how do you financially manage that? Oh, by the way, the last time I checked there are [company] shareholders and stakeholders you need to take care of.”

“It’s going to be tough,” Dauch agreed, referring to the changes for suppliers. “The next three to four years are really going to be game changes. “There’ll be some survivors and some losers, that’s for sure.”

 

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