European Car Makers Hitting the Brakes on Electric Vehicles
Car manufacturers are slowing their transition to producing electric vehicles (EVs), because of low customer demand and production problems.
Mercedes-Benz announced to investors in March of this year that it is going back on its pledge to sell only fully electric cars by 2030. Instead, investors were told that the company plans to continue to make gasoline-powered cars well into the next decade. Fully electric cars and hybrids will account for only up to half of its sales by 2030.
It appears that carmakers are suffering after committing wholeheartedly to the ideological fad of EVs, rather than introducing them as a rival product in their combustion engine-dominated competitive market.
While electric cars sales exploded in northern Europe several years ago, due largely to generous government subsidies backed by EU funds, sales of plug-in electric vehicles have been weaker than expected in other markets. Some more publically than others, carmakers are beginning to admit to this trend.
“Unexpected developments may arise in particular from geopolitical events and trade policy,” Mercedes-Benz said in the statement. “Further supply chain disruptions and in particular, availability bottlenecks for critical components, remain a significant risk factor.”
The company explained that it would remain “strategically focused” and “tactically flexible,” regarding electric vehicle production, by monitoring demand, the growth of charging infrastructure, and changes in the supply chain. Following the announcement, the carmaker’s stock price rose 5.9% (also supported by a $3.3 billion share buyback program, according to the trade website insideevs.com).
El Debate reports that the Volkswagen group confirmed in a recent press conference that it had already started manufacturing cars using a multi-energy integrated approach by producing the same car in a range of versions: gas-powered engined, plug-in electric, and hybrids. The news site points out that this approach has proven very successful as the long-standing strategy of French carmaker Stellantis.
Other automakers—including Ford and Renault—have been less public about their partial abandonment of the EV project. Ford recently revealed that they’re planning for a new model combustion engine (albeit hybrid) in 2027, and Renault has launched a division named ‘Horse’ where it will produce combustion engines for markets outside Europe—possibly without having the main company name associated with it.
The EU’s ban on selling new cars with combustion engines after 2035 notwithstanding, consumers still prefer gas or diesel powered cars over fully electric cars. This isn’t expected to change in the near future.
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French Government Blocks TikTok to Curb Civil Unrest in New Caledonia
France has imposed a state of emergency in New Caledonia in response to protests and riots, leading to a ban on TikTok as authorities seek to stabilize the region. The French government has taken these measures to address the unrest that erupted after a contentious vote extending voting rights in the territory’s provincial elections and is the latest example of a government restricting internet access as a means to control citizens.
The local government representative in New Caledonia, under the directive of the newly declared state of emergency, took the significant step of banning TikTok, citing public safety concerns. This action was part of broader measures that included increased powers for security forces such as house detentions, weapon seizures, and restrictions on movement to prevent further disorder.
Prime Minister Gabriel Attal emphasized the necessity of these measures, stating, “No violence will be tolerated,” and highlighted the deployment of troops to secure critical infrastructure like ports and the international airport, which is already closed to international flights. The announcement followed shortly after the death of a French gendarme injured in the riots, bringing the death toll to four, as confirmed by Interior Minister Gérald Darmanin.
According to France 24, the violence began following approval of a bill by the French National Assembly, which aimed to expand the electorate in New Caledonia’s provincial elections by including residents from mainland France, a move critics argue could undermine Indigenous influence in favor of pro-France politicians. The reform passed amidst intense debates with a vote of 351 to 153.
These measures come as President Emmanuel Macron seeks to reinforce France’s strategic interests in the Pacific amidst competition from global powers like China and the United States. The recent riots reflect deep-seated tensions within New Caledonia, particularly among the Indigenous Kanak population, who have historically been wary of French attempts to assert control.
In recent years, governments around the world have increasingly turned to internet shutdowns as a tool to manage civil unrest and curtail riots, raising significant concerns about the infringement on civil liberties. This tactic involves restricting access to the internet or certain social media platforms to disrupt communications and organization among protesters.
For instance, during the 2019-2020 protests in India against the Citizenship Amendment Act, the government imposed multiple internet shutdowns. These were particularly pronounced in regions like Kashmir, where the longest internet blackout in a democracy severely limited the ability of citizens to communicate and access information. Human rights organizations criticized these actions for violating the freedom of expression and the right to information, highlighting how such shutdowns can isolate entire communities and prevent the dissemination of vital public information.
Iran has repeatedly demonstrated the use of internet shutdowns as a strategy to suppress dissent and manage civil unrest. In 2022, amid protests following the death of Mahsa Amini while in the custody of the morality police, the Iranian government again resorted to internet restrictions. These included throttling data speeds and blocking access to popular social media platforms like Instagram and WhatsApp, which are commonly used by Iranians to mobilize and report on real-time events. The government’s official stance was that such measures were necessary to maintain national security and public order.
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