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California's zero-emission vehicle program is stuck in neutral

Gives a good insight into how the car industry always manage to play the system & find a way to beat the ''spirit'' of regulations.
At least Tesla make money on something (allegedly selling environmental credits to Toyota & others for USD600M.)
If only all those efforts to play the system were channeled into making electric cars people want to buy?
 

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The sale, or transfer, of these environmental credits has to be outlawed.

Companies should instead receive credits off the tax on their profits.
 

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The sale, or transfer, of these environmental credits has to be outlawed.

Companies should instead receive credits off the tax on their profits.
I disagree. Let me see if I can persuade you otherwise.

You have two companies, one is pure EV one is pure sports cars. The latter cannot hope to meet the EV fleet average criteria.

They have similar volumes, such that together the two companies deliver 50% EVs, easily achieving the EV target.

Now ask - what possible benefit would there be in forcing the sports car company from making EVs? All that would happen is you have a very bad business because they don't understand EVs make bad ones, dilute their expertise in making nice sports cars, and to what end result? If there are only so many EV buyers in the market, they take market share of the other company.

Imagine these two companies merge, and then achieve the EV criteria. What practical difference is there if that arrangement is written into acts of incorporation or written into trading credit agreements?

I think it is absolutely a very good thing that manufacturers are forced to produce a %age of EV but that to achieve that they are free to collectively account their cars together with any other manufacturer with whom they create a trading agreement. This really is a very good way for small EV manufacturers to start up - they could come up with an agreement with a big manufacturer to effectively produce their EVs for them.

The end result is great EVs and great ICE, but an increasing %age of EVs on the road through application of the criteria.

Please don't think encouraging a big manufacturer to make EVs is a good idea if there is an alternative strategy in which they commercially promote manufacture of them with, if you like, 'a subsidiary'.
 

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On the contrary this is the regulations and markets doing exactly what they are supposed to, providing clean cars at minimum cost. If permits were not tradeable manufacturers like Tesla and to a lesser extent Nissan would effectively be penalised for producing more ze cats than they need to meet the minimum rules.
 

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If permits were not tradeable manufacturers like Tesla and to a lesser extent Nissan would effectively be penalised for producing more ze cats than they need to meet the minimum rules.
Where the margins are lower, this is another very good point, well made!
 
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