Some notes on the global EV market and how the UK is punishing its people with taxes to “nudge” them into horribly expensive EV’s PLUS Black and Asian safe swimming spaces in Leicester!
Regular readers will recall this article from 18 months ago about the state controlled and priced production methods that do not meet demand.
Field of dreams?
What’s the difference between dumping steel and dumping EV’s?
China is the world leader in EV cars and vans and wants to assert its dominance by displacing other manufacturers in the West.
The EU is not having it! From Brave AI:
Neither is the US:
“The Biden administration has imposed tariffs on Chinese-made electric vehicles (EVs), increasing the duty rate from 25% to 100%. This move is part of a broader strategy to promote domestic production and reduce reliance on Chinese imports..”
The UK has no specific tariffs on Chinese EV’s.
Chinese EV manufacturers could be angling for even cheaper prices.
Chinese EV Giants Demand Supplier Cuts as Global Market Heats Up | Nationwide Republican
· “Chinese EV manufacturers demand supplier cost reductions to survive competitive domestic markets.
· BYD asks suppliers for a 10% price cut and describes the situation as a “knockout match.”
· SAIC Maxus joins BYD in reducing supplier costs, citing market oversupply.
· Geopolitical factors, like U.S. trade policies, test plans for international expansion.
In the US, from here:
(100) Doug Sheridan: US EV Startups Are In Dire Straits As Biden's Days in Office Run Out
Several high-profile companies, including electric SUV maker Fisker and bus manufacturer Arrival, filed for bankruptcy earlier this year. Swedish-based battery maker Northvolt became the latest casualty last week, filing for Ch 11 after BMW cancelled a key order. At least a dozen other startups, specializing in EVs or batteries, are at risk of running out of cash by next summer, according to a WSJ analysis.”
So, the Chinese subsidise the cost of making EV’s to pursue global doomination, the companies engaged in the State volume and price fixing market still can’t make money – and the West simply can’t compete with rigged price and volume markets – so imposes whopping tariffs!
Got it!
Meanwhile the UK continues on its path to rig prices against the internal combusto engine (ICE).
It Minister for Energy Insecurity and Net Zero growth, the monster raving lunatic, Ed Milliband, has banned the licensing of new North Sea oil exploration and has persisted with extra taxes on producers.
From Brave AI:
“ … the effective tax rate of companies producing North Sea oil is likely to be higher than the headline rate of 78%, potentially exceeding 100% for some companies due to decommissioning costs and other expenses.”
Let’s check out the tax paid in a litre of petrol9gas0 charged ar the pump.
Just to put in the “raw material” cost – a barrel of oil contains around 160 litres (42 US gallons – 35 UK gallons) .
Around half of a barrel of oil is converted to petrol/gas – call it 80 litres.
The current price of a barrel of North Sea oil is around 72 bucks.
Just the petrol component of a barrel of oil is 72 bucks for 80 litres =
90 US cents per litre = around 70 British pence per litre – compared to the average “forecourt” price of 140 pence per litre.
From Brave AI: “
Total Tax Component:
5.5 pence (Fuel Duty) + 27.07 pence (VAT) + 1.5 pence (Additional Charges) = 33.12 pence per liter”.
So, it looks like 70 pence per litre – half – for the oil, 40 pence for the extraction, refining, distribution and profit and the balance of 33 pence per litre in tax, (Taxes will be taken for national insurance for wages, personal income tax and VAT right along the supply chain from the oil field to the pump – but these are hidden in the 40 pence portion).
“… the UK consumed approximately 17.281 billion litres of petrol in the financial year 2023 to 2024” – which works out at around 5.7 billion pounds in fuel duties.
But:
“”… Fuel Duty and Revenue: In 2023/24, fuel duty is estimated to raise £24.7 billion, “
It looks like the figures don’t reconcile! Maybe diesel revenues make up a large part of the gap, but still, we are looking for 19 billion in a Budget handbag!
Ok, this indicates the scale of the penalties imposed on the ICE car market. Now for the other side – the control of production og ICE v EV to force manufacturers of cars to produce EV’s that people do not want because they are unrelaible and costly – and whose “fuel” is rapidly approaching the price of the heavily taxed petrool versio (and already has passed the untaxed petrol version).
The UK has passed laws that do this:
Future of UK car industry 'at risk' if ministers fine firms for petrol car sales
“Companies face financial penalties of up to £15,000 a car for missing the targets. Bosses warns this could divert vital investment away from new vehicles and technology in the UK.”
“Manufacturers have been set these targets for sales of zero-emission vehivles (ZEVs). They face fines for every non-compliant vehicle sold.
· 22 per cent sales share of ZEVs in 2024
· 28 per cent in 2025
· 33 per cent in 2026
· 38 per cent in 2027
· 52 per cent in 2028
· 66 per cent in 2029
· 80 per cent in 2030
The UK sells around 2 million cars a year - down from 3 million i 2016.
There are around 33 million cars on British roads.
Every ICE car sold that breaches these minimum electric vehicle sales attracts that 15,000 pound fine for every ICE car sold that breaches the EV quota minimum.
The result? Insufficient demand for EV’s means that production of ICE vehicles is simply ended, until demand for the unsold inventory of EV’s picks up to allow the sale of a single ICE powered car.
Second had car prices? Well, they are going up and then there’s this:
“Vauxhall will close its 120-year-old Luton plant in April, the parent company Stellantis announced. More than 1,100 jobs at the van-making factory are at risk, but Stellantis said it is hoping to transfer "hundreds" of Luton jobs to the group's Vauxhall site in Ellesmere Port, Cheshire.”
All part of the global EV story – Germany faces pressure from CHiese EV’s! Germany is not cited as imposing tariffs.
Volkswagen may shut German car plants due to impact of Chinese EVs
The UK government has no business interfering in energy mafkets – only to make sue there is no price gouging and proper safety. It should “mind its own business” of delivering taxpayer value.t does not do this, instead it overtaxes and regulates prices upwards! Forcing energy suppliers out of the market and instead pursuing the heavily sponsored “renewables” industry- an industry that cannot survive without massive subsidies and beneficial planning regulations.
Governments have no expertise in climate, or hydrocarbon energy productuin or renewable energy. They are ignorant and the mistakes they are making are costing the Brtish public dearly.
To close, here is an example of the stupidity and bigotry that permeates the Marxist Labour government from top to bottom.
Here’s the bottom:
Specialist swimming for Black & Asian communities
“Specialist swimming for Black & Asian communities
Unity Swimming CIC provides a safe space, to improve swimming confidence, positive mental health, fitness, water safety and aquatics career support and funding for Black and Asian communities.”
Imagine if that said “.. for White communities?!!!!
Racist bigots. Why not just open it up to everyone?
Onwards!!!
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