DUBLIN, Jan 20 (Reuters) – Airlines with the best environmental scores should pay less for leasing aircraft than more polluting competitors, the head of one of the world’s top leasing companies said on Monday.
The radical proposal from Dublin-based Avolon comes as aviation firms face mounting scrutiny over climate policies not only from environmental groups but also investment funds that monitor Environmental, Social and Governance (ESG) performance.
Avolon, one of the top three aircraft lessors, claims to have one of the industry’s youngest and most efficient fleets.
“But that narrative is not good enough for the next 1, 2, 3 or 4 years,” Chief Executive Domhnal Slattery warned.
“More and more of our major bond investors are keen to understand what our ‘E’ strategy is within ‘ESG’. We in turn are keen to understand when underwriting our airline credits what their ‘E’ strategy is,” he told Reuters.
Slattery predicted that lessors, which depend heavily on access to funds to run their capital-intensive businesses, would in future exert more pressure on airlines.
“You could see over time that airlines that have a better environmental score could get lower lease rates,” he said.
BERLIN (Reuters) – Around 250 Germans on Saturday protested in the outskirts of Berlin where electric car startup Tesla is planning to build a gigafactory, saying its construction will endanger water supply and wildlife in the area.
The U.S. carmaker announced plans last November to build its first European car factory in Gruenheide, in the eastern state of Brandenburg.
Politicians, unions and industry groups have welcomed the move, saying it will bring jobs to the region, but environmental concerns drove hundreds of locals to the streets on Saturday.
“We are here, we are loud, because Tesla is stealing our water,” protesters called.
Saturday’s protest came after a Brandenburg water association on Thursday warned against “extensive and serious problems with the drinking water supply and wastewater disposal” for the proposed factory.
Anne Bach, a 27-year-old environmental activist, said Tesla’s plans published earlier this month showed it would need more than 300 cubic meters of water per hour which would drain the area’s declining reserves.
“I am not against Tesla … But it’s about the site; in a forest area that is a protected wildlife zone. Is this necessary?” Bach said.
“In such an ecological system like the one here and with the background that climate is changing, I cannot understand why another location was not selected from the beginning,” said Frank Gersdorf, a member of “Citizens’ Initiative Gruenheide against Gigafactory”, a local group that organised Saturday’s protest.
Environmentalist protests in Germany have previously halted and delayed major companies’ plans such RWE’s lignite mining at the Hambach forest, near Cologne, which has become a symbol of the anti-coal protests.
Saturday’s protest, which Gersdorf and Bach said developed spontaneously from a 50-people forest walk demonstration, highlighted the deforestation of around 300 hectares to build the factory and its impact on wildlife, including birds, insects and bats.
People were also protesting against an expected “enormous” increase in traffic on a nearby highway and through the villages.
Next to the protest, on the other side of the street, around 20 people carried banners welcoming Tesla in their village, with children chanting, “We are here, we are loud, because Tesla is building our future.”
Bernd Kutz, a Gruenheide local, said Tesla would bring improvement to the area, create jobs and give chances to young people.
“I am here because I don’t understand those demonstrators who shout and show us the finger,” Kutz said. “Why has it always to be negative?”
(Reporting by Riham Alkousaa; editing by Christina Fincher)
‘You’re stealing our water’: Germans protest against Tesla gigafactory Demonstrators hold anti-Tesla posters during a protest against plans by U.S. electric vehicle pioneer Tesla to build its first European factory and design center near Berlin
Volkswagen logo is seen on a Teramont X SUV displayed at the second media day for the Shanghai auto show in Shanghai
HONG KONG/BEIJING (Reuters) – Volkswagen AG <VWAGY> is set to take a 20% stake in Chinese electric vehicle battery maker Guoxuan High-tech Co Ltd, two sources told Reuters, as the German firm accelerates its electric push into the world’s largest auto market.
The deal would mark Volkswagen’s first direct ownership in a Chinese battery maker and comes as the Wolfsburg-based automaker strives to meet a goal of selling 1.5 million new energy vehicles (NEVs) a year in China by 2025, including plug-in hybrid cars.
The top foreign automaker in China plans to acquire the stake in Shenzhen-listed Guoxuan via a discounted private share placement in the coming weeks, the two sources with knowledge of the matter said. Based on Guoxuan’s market capitalization of $2.8 billion, a 20% stake in the company at present is worth about $560 million.
The deal’s details have been mostly finalized and the two firms are waiting for new Chinese regulatory rules on private share placements that will provide a more flexible pricing mechanism and shorter lock-up periods for majority shareholders, said one of the people, speaking on condition of anonymity.
After the stake purchase, Volkswagen will become the battery maker’s second-largest shareholder with a 20% stake, behind Zhuhai Guoxuan Trading Ltd, a firm controlled by Guoxuan’s founder Li Zhen, which currently holds 25%.
Guoxuan is among a swathe of mid-tier Chinese battery makers behind CATL and BYD. It is based in China’s eastern city of Hefei, where Volkswagen is also building electric vehicles with JAC Motor, one of a number of its Chinese joint venture partners.
A third source, who declined to be named due to the sensitivity of the matter, said Volkswagen has long wanted to control a battery maker to better manage its supply chain.
Volkswagen declined to comment. Guoxuan and the China Securities Regulatory Commission did not immediately respond to requests for comment.
To achieve its NEV sales goal in China, Volkswagen has built a new $2.5 billion electric vehicle plant with partner SAIC Motor that will have annual output capacity of 300,000 cars and is also revamping manufacturing facilities in China’s southeastern city of Foshan to build electric cars with partner FAW Group.
Volkswagen has also identified CATL as a strategic supplier and Volkswagen board member Stefan Sommer told Reuters in July last year that it could even build its own battery cell manufacturing plants in China.
“By holding a stake in the top Chinese battery makers, carmakers can gain more bargaining power on battery prices,” said Yale Zhang, managing director of Shanghai-based consultancy AutoForesight. “Foreign carmakers are now catching up with their Chinese counterparts on securing battery supplies in China.”
Volkswagen’s rivals in China include Tesla, which earlier this month began delivering cars from its $2 billion factory in China. The U.S. electric car maker eventually plans to manufacture 250,000 vehicles a year in the plant’s first phase.
China has been a keen supporter of NEV – pure battery electric, hybrid and plug-in hybrids – and has started implementing NEV sales quota requirements for automakers.
However, cuts to subsidies have dealt the market a blow, with NEV sales contracting for the first time last year. Sales this year are likely to be flat or rise only slightly, according to China’s top auto industry association.
(Reporting by Julie Zhu in Hong Kong and Yilei Sun in Beijing; Additional reporting by Zhang Yan and Zhang Xiaochong in Beijing; Editing by Brenda Goh and Richard Pullin)
Workers leave the General Motors CAMI car assembly plant where the GMC Terrain and Chevrolet Equinox are built in Ingersoll
WASHINGTON (Reuters) – General Motors Co <GM> will revive the Hummer name to sell a new family of electric pickup trucks and sport utility vehicles and will tout the return with a Super Bowl ad featuring NBA star LeBron James, two people briefed on the matter said on Friday.
The vehicles will be sold under the GMC nameplate. Reuters reported in October that GM planned to build a new family of premium electric pickup trucks at its Detroit-Hamtramck plant beginning in late 2021 and was considering reviving the Hummer name, citing several people familiar with the plans.
The Wall Street Journal reported GM’s decision to move forward earlier on Friday. GM declined to comment.
The electric truck and SUV program is the centerpiece of a planned $3 billion investment in the Detroit-Hamtramck plant to make electric trucks and vans, and part of a broader $7.7 billion (5.9 billion pounds) investment in GM’s U.S. plants over the next four years that was part of a new contract signed with the United Auto Workers union last year.
The investment moves the automaker into a part of the EV market that is largely untested and where GM has a higher likelihood of turning a profit, analysts said.
Reuters reported GM plans to first build EV pickups in late 2021 and then an electric SUV in 2023.
Tesla <TSLA> CEO Elon Musk in November unveiled an electric pickup called “Cybertruck” it plans to build starting in late 2021.
Rivian, a start-up electric company backed by Amazon.com <AMZN>, will begin building 100,000 electric delivery vans for Amazon starting in 2021.
Hummers were rugged civilian utility vehicles with low gas mileage that were inspired by military vehicles and were popular with such celebrities as actor Arnold Schwarzenegger but derided by environmentalists as gas-guzzlers. GM shut down its Hummer brand after a deal to sell the SUV-line to an obscure Chinese machinery maker was blocked by Chinese regulators in 2010.
Michael Harley, executive editor for Kelley Blue Book, noted “the original Hummer was ostracized out of showrooms for being heavy and ponderous with an insatiable appetite for gasoline. An all-electric powertrain essentially exonerates the truck on all charges.”
Electric pickups and SUVs – the heart of the U.S. market – could help Ford Motor Co <F> and GM generate significant sales of EVs needed to meet tougher California emission standards and electric vehicle mandates.
The Trump administration is moving to roll back those standards – and eliminate extra credits that automakers receive from EV sales but electric trucks are a hedge if California prevails.
(Reporting by David Shepardson; Editing by Sandra Maler and Alistair Bell)
EmbraerX, Embraer’s disruptive business subsidiary, announces its expansion into the commercial air cargo market, via a collaboration agreement with Elroy Air, at CES 2020. This collaboration will allow the companies to accelerate the unmanned air cargo market worldwide, leveraging Embraer’s 50 years of industry experience with Elroy Air’s bold new developments in autonomous aircraft systems.
“In order to stay the course of creating solutions that benefit humanity at large, we believe the cargo market is prime for an autonomous aircraft,” said Antonio Campello, President & CEO, EmbraerX. “Booming eCommerce is forcing the cargo market to grow and seek new solutions, creating a distinct need for more flexibility. Our holistic approach to accelerating this market will include working with Elroy Air and its Chaparral system, capable of delivering cargo (250-500 lbs) over distances up to 300 miles, as well as our work in associated services and air traffic management solutions.”
“Elroy Air aims to open a new chapter for the logistics market with point-to-point autonomous aerial cargo systems” said Dave Merrill, CEO of Elroy Air. “Elroy Air’s Vertical Takeoff and Landing (VTOL) cargo delivery aircraft, the Chaparral, will operate without airports or charging stations, and is optimized for freight with automated cargo loading and unloading. Our collaboration with EmbraerX will accelerate our path to deployment in commercial freight markets.”
This collaboration is part of EmbraerX’s multi-project approach to further develop the air mobility ecosystem and create the conditions for people and goods to move from A to B in a seamless and affordable way. Beyond cargo, EmbraerX is engaged in several projects, including the development of an Urban Air Mobility focused eVTOL, a tailored Urban Air Traffic Management (UATM) system and a fleet-agnostic business platform, designated Beacon, to streamline services.
Singapore-based lessor BOC Aviation Limited has placed a firm order with Airbus for 20 A320neo aircraft. Up to 12 of the newly-ordered aircraft will be leased to Colombia’s Avianca Airlines.
Featuring the widest single-aisle cabin in the sky, the A320neo Family incorporates the latest technologies, including new generation engines and Sharklets, which together deliver 20% reduced fuel burn as well as 50% less noise compared to previous-generation aircraft.
(Reuters) – JetBlue Airways Corp on Monday said it plans to become carbon neutral on all domestic flights by July 2020 and would use an alternative fuel source for flights leaving from San Francisco amid rising pressure to cut greenhouse emissions.
The aviation industry has been trying to combat climate change by trying to cut its greenhouse gas emissions in half by 2050 compared with 2005 levels and sees the emergence of lower-carbon biofuels as a vital step towards meeting this goal.
The industry’s plan rests on a mix of alternative fuel, improved operations such as direct flight paths, new planes and other technologies.
JetBlue in its attempt to reduce greenhouse gas emissions will favor renewable sources and will start using sustainable aviation fuel in mid-2020 on flights from San Francisco International Airport.
“By offsetting all of our domestic flying, we’re preparing our business for the lower-carbon economy that aviation – and all sectors – must plan for,” Chief Executive Officer Robin Hayes said in a statement.
JetBlue declined to give details about the cost of the exercise. It did not disclose if any other airports will be a part of the plan to reduce greenhouse gas emissions.
Sustainable-fuel, derived from sustainable oil crops or from wood and waste biomass, would have the single largest impact in reducing emissions from each flight by around 80%, but is in short supply, according to the International Air Transport Association (IATA).
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Amy Caren Daniel and Aditya Soni)
A JetBlue aircraft comes in to land at Long Beach Airport in Long Beach
Akio Toyoda, president of Toyota Motor Corporation, speaks at a news conference, where he announced Toyota’s plans to build a prototype city of the future on a 175-acre site at the base of Mt. Fuji in Japan, during the 2020 CES in Las Vegas
LAS VEGAS (Reuters) – Toyota Motor Corp <TM> said on Monday it plans to build a prototype “city of the future” at the base of Japan’s Mt. Fuji, powered by hydrogen fuel cells and functioning as a laboratory for autonomous cars, “smart homes,” artificial intelligence and other technologies.
Toyota unveiled the plan at CES, the big technology industry show. The development, to be built at the site of a factory that is planned to be closed, will be called “Woven City” – a reference to Toyota’s start as a loom manufacturing company – and will serve as a home to full-time residents and researchers.
Toyota did not disclose costs for the project.
Executives at many major automakers have talked about how cities of the future could be designed to cut climate-changing emissions from vehicles and buildings, reduce congestion and apply internet technology to everyday life. But Toyota’s plan to build a futuristic community on 175 acres (71 hectares)near Mt. Fuji is a big step beyond what rivals have proposed.
The proposal highlights not only Toyota Chief Executive Akio Toyoda’s ambition, but also the financial and political resources Toyota can bring to bear, especially in its home country.
Toyota expects 2,000 people will live at the city initially, with construction slated to start next year. Toyoda called the project “my personal ‘field of dreams.’
“You know if you build it, they will come.”
Toyota said it has commissioned Danish architect Bjarke Ingels to design the community. Ingels’ firm designed the 2 World Trade Center building in New York and Google’s offices in Silicon Valley and London.
Toyota said it is open to partnerships with other companies that want to use the project as a testing ground for technology.
(Reporting by Jane Lanhee Lee and David Shepardson; Writing by Joe White; Editing by Dan Grebler)
Watch the 30 second Woven City YouTube video by clicking HERE!
U.S.-based Spirit Airlines has finalised a purchase agreement with Airbus for 100 A320neo Family aircraft. In October, the two parties had signed and announced a memorandum of understanding (MoU) for the purchase of up to 100 of the aircraft – a mix of A319neo, A320neo, and A321neo – to meet the airline’s future fleet requirements.
Spirit is based in South Florida and is the fastest-growing airline in the United States, with flights throughout the U.S., Latin America and the Caribbean. The airline will announce an engine selection at a later date.
Featuring the widest single-aisle cabin in the sky, the best-selling A320neo Family, comprising the A319neo, A320neo, and A321neo, will deliver a fuel-burn reduction of approximately 20% as well as 50% less noise compared to previous-generation aircraft, thanks to incorporating the very latest technologies including new-generation engines and Sharklets.
Firm orders worldwide for the A320neo Family now have surpassed 7,300 from more than 110 global customers.
BERLIN (Reuters) – Luxury German carmaker Daimler <DDAIF> and Volvo Cars, owned by China’s Geely, are considering cooperating to cut the costs of developing combustion engines, a magazine reported on Sunday, citing unnamed company sources.
The Automobilwoche weekly cited a Volvo manager as saying there were initial talks with Daimler, but no concrete plans, while a company spokesman said it was too early to talk about firm projects, although it was not excluding anybody.
A Daimler spokesman said the company’s cooperation with Geely, which owns a 10% stake in the German carmaker, was developing in a positive way, but declined to comment further.
Global tariffs, accelerated by a trade war between China and the United States, as well as higher investment requirements for electric and autonomous vehicles, are forcing carmakers to seek new ways to cut and share costs.
In October, Volvo said it would merge its engine development and manufacturing assets with those of Geely, creating a division to supply in-house brands and also potentially others with next-generation combustion and hybrid engines.
The Automobilwoche said this new division would start operating by the end of March, which could be a possible starting point for cooperation with Daimler, while a further step could be a partnership to develop electric power trains.
Geely and Daimler have said they plan to build the next generation of Smart electric cars in China through a joint venture and the two companies are also cooperating on a premium ride-hailing service in China.
Geely bought Volvo Cars in 2010 from Ford Motor Co <F.N>, allowing the Swedish brand to operate on an arms-length basis. But in recent years, it has deepened cooperation between the two brands.
Volvo already supplies engines to some Geely-branded vehicles, sharing technology through Geely’s Lynk brand. Both companies share and develop common vehicle platforms.
(Reporting by Emma Thomasson and Georg Merziger; editing by Jason Neely)
