A different kind of Brexit…

 The Guardian reports– Britain to ban sale of all diesel and petrol cars and vans from 2040.  Like, woah!

This ban follows a similar commitment from France.  Ohlala!

Photo by Janko Ferlic

The times they are a changing! Britain commits to sell no diesel and petrol fueled vehicles after 2040 following in France’s footsteps.

Why this matters?  It’s a pretty big deal for a few reasons. When countries make these commitments, auto manufacturers design to what demand will be.  Manufactures want to lead design and consumption (a la Apple or Tesla).  These country commitments provide incentive to design a range of vehicles which do not run on diesel or gasoline.  And, manufacturers will most likely make models available to the market prior to 2040 (as we already see with hybrids and electric vehicles).

Additionally, once consumer decisions change en mass, this will have a large effect on petrol use and commodities prices (think: consumption drops which leads to excess supply which leads to commodity price decreases).  This is a whole other topic which gets in to oil producing countries and economic stability….. stay tuned.



On the road again….

So, Volvo just made a huuuuuuge announcement last week- all models introduced starting 2019 and after will either be (1) hybrid vehicles (running on electricity stored in a battery with a small gas tank which can be used once charge runs out of the battery) or (2) completely electric (battery storage) vehicles.


Most all major auto manufacturers are designing and have introduced hybrid and electric vehicles to meet growing consumer demand and to make a smart business move of diversifying their model portfolio, so to speak.  Leave it to the Scandinavians (Volvo = Swedish) to put pressure on the king in this game of chess.

Nerd alert: (this is the crux take away)
Overall, this is worth watching in the trend of energy.  With Tesla and now Volvo going full monty electric, electricifacriton of the transportation fleet will continue to gain market share.  In the short run, electric vehicles will still be a minority in the scheme of things. But, a growing share leads to a domino effect- less demand for petroleum in transport means there continues to be supply of petroleum in the global marketplace (i.e. prices/revenues remain low when there is plenty of supply to meet demand).  This continues to be hard on economies which rely on income from petroleum products (example OPEC countries, Russia and Venezuela).  Also, as batteries permeate (both static storage facilities and fuel sources in vehicles) the electricity mix can, and probably will, continue to evolve.

Who’s ready for a road trip?!