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Volvo to build range-topping S90 sedan in China

Volvo is furthering its deep ties in China by announcing a major expansion to its factory in Daqing that will equip the site to build its future S90 sedan. The automaker is promising to make the plant, "one of the most advanced car making facilities in China," according to its press release. Unfortunately, the company isn't specifying the amount being invested or how long the work will take.
Because the northeastern Chinese city of Daqing owns about 37 percent of the automaker, the location for the significant expansion isn't entirely surprising, especially since Geely owns a majority stake in the Swedish brand. The existing factory there employs about 700 people to build the original XC90 for the local market, but the upgrades will allow the plant to handle Volvo's Scalable Product Architecture modular platform.
To be fair, Volvo doesn't specifically call out the S80-replacing S90 by name in its announcement. However, it promises the first vehicle built in Daqing after the expansion will be a new premium sedan, and the upgrades will allow the plant to make "most innovative vehicles in its product range," and the range-topping sedan is widely expected to adopt the S90 moniker.

Daimler rebuffs Geely offer to buy stake

HONG KONG/BEIJING - Daimler AG has turned down an offer from China's Geely to take a stake of up to 5 percent via a discounted share placement, as the German automaker has long been reluctant to see existing shareholdings diluted, sources with knowledge of the talks said. A stake of that size would be worth $4.5 billion at current market prices. Although Daimler declined the offer, it told Geely it was welcome to buy shares in the open market, the sources added. Carmakers in China have embarked on a flurry of dealmaking, as they scramble to boost production of electric and plug-in hybrid vehicles ahead of tough new quotas to be imposed by Beijing, which wants to reduce urban smog and lower the country's reliance on oil. People with knowledge of Geely's thinking said the company was keen to access Daimler's electric car battery technology and wanted to establish an electric car joint venture in Wuhan, the capital of Hubei province. Geely, which also owns Swedish car maker Volvo, is still hopeful it can secure a deal in some form over the coming weeks, they added. The two automakers met in Beijing in recent weeks at Geely's behest. There, the Chinese firm, formally known as Zhejiang Geely Holding Group, offered to take a stake of between 3 percent and 5 percent if Daimler would issue new shares at a discount, the sources said. It was not immediately clear what kind of discount for the shares Geely had in mind or whether Geely was interested in buying the shares on the open market. A spokesman for Geely declined to comment. A spokesman for Daimler said the company was "very happy with our shareholder structure at present", but added that it would welcome new investors with a long-term interest in the company. Shares in Daimler were up 1 percent in early Wednesday trade, in line with the broader market.DAIMLER ALREADY TIED TO BAIC, BYD Geely, which has a market value of some $32 billion, is the leading domestic brand in China with a 5 percent market share, according to an analysis by Nomura Securities. A stake of 5 percent would establish it as Daimler's third-largest shareholder behind the Kuwait Investment Authority and BlackRock, who hold 6.8 percent and 6 percent respectively, according to Reuters data.

How Norway became a world leader in EV sales, and where it goes from here

OSLO, Norway — A silent revolution has transformed driving in Norway. Eerily quiet vehicles are ubiquitous on the fjord-side roads and mountain passes of this wealthy European nation of 5.3 million. Some 30 percent of all new cars sport plug-in cables rather than gasoline tanks, compared with 2 percent across Europe overall and 1-2 percent in the U.S. As countries around the world — including China, the world's biggest auto market — try to encourage more people to buy electric cars to fight climate change, Norway's success has one key driver: the government. It offered big subsidies and perks that it is now due to phase out, but only so long as electric cars remain attractive to buy compared with traditional ones. "It should always be cheaper to have a zero emissions car than a regular car," says Climate and Environment Minister Ola Elvestuen, who helped push through a commitment to have only zero-emissions cars sold in Norway by 2025. The plan supports Norway's CO2 reduction targets under the 2015 Paris climate accord. To help sales, the Norwegian government waived hefty vehicle import duties and registration and sales taxes for buyers of electric cars. Owners don't have to pay road tolls, and get free use of ferries and bus lanes in congested city centers. These perks are being phased out in 2021, though any road tolls and fees would be limited to half of what gasoline car owners must pay. Gradually, subsidies for electric cars will be replaced by higher taxes on traditional cars. Registration tax on new cars is paid on a sliding scale with a premium for the amount of emissions produced. Elvestuen pledges that the incentives for electric vehicles will be adjusted in such a way that it does not scupper the 2025 target. "What is important is that our aim is not just to give incentives," he says. "It is that we are taxing emissions from regular cars." Using taxes to encourage consumers to shift to cleaner energy can be tricky for a government — protests have erupted in France over a fuel tax that hurt the livelihood of poorer families, especially in rural areas where driving is often the only means of transportation. In the U.S, some would like to see the tax credit on EVs and hybrids eliminated while others would extend it. In this sense, Norway is an outlier. The country is very wealthy after exporting for decades the kind of fossil fuels the world is trying to wean itself off of. Incomes are higher than the rest of Europe, as are prices.