Cleaving Beginning? – Climate Change Policy Makes Europe Too Expensive for Low-Cost EV Manufacturing

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    from The Conservative Treehouse:

    We have been closely monitoring the signs of a global cleaving around the energy sector taking place.  Essentially, western governments’ following the “Build Back Better” climate change agenda which stops using coal, oil and gas to power their economic engine, while the rest of the growing economic world continues using the more efficient and traditional forms of energy to power their economies.

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    Within the BBB western group (identified on map in yellow), the logical consequences are increased living costs for those who live in the BBB zone, and increased prices for goods manufactured in the BBB zone.  In the zone where traditional low-cost energy resources continue to be developed (grey on map), we would expect to see a lower cost of living and lower costs to create goods.   Two divergent economic zones based on two different energy systems.

    This potential outcome just seemed to track with the logical conclusion.  The yellow zone also represented by the World Economic Forum, and the gray zone also represented by an expanding BRICS alliance.  Against this predictable backdrop we have been watching various events unfold, some obvious and some less so.

    Today, we get an obvious example:

    NEW DELHI, Nov 24 (Reuters) – Fiat parent Stellantis (STLA.MI) has concluded it can’t currently make affordable electric vehicles (EVs) in Europe and is looking at lower-cost manufacturing in markets such as India, its chief executive told reporters.

    If India, with its low-cost supplier base, is able to meet the company’s quality and cost targets by the end of 2023, it could open the door to exporting EVs to other markets, said Carlos Tavares, CEO of the group whose brands also include Peugeot and Chrysler.

    “So far, Europe is unable to make affordable EVs. So the big opportunity for India would be to be able to sell EV compact cars at an affordable price, protecting profitability,” Tavares told reporters at a media roundtable in India late on Wednesday.

    Stellantis is investing heavily in EVs and plans to produce dozens in the coming decade, but Tavares warned last month that affordable battery EVs were between five and six years away.

    On his first visit to India since taking over as Stellantis CEO, he said the company was still working out a plan regarding EV exports from the country and had not yet taken any decisions.  (read more)

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    Normally we would expect to see market forces determining the ultimate economic outcome.  Historically, we would not expect government policy that puts their nation at an economic disadvantage.  However, in this WEF controlled new western economic normal we see multinational corporations’ making decisions and government leaders creating policy to support the corporations.

    There is money to be made by corporations within the climate change agenda, and there is money to be made by producing goods with low-cost wages and cheap materials. Eventually, if you keep following this to its natural conclusion, the entire yellow zone becomes a service driven economy.

    Multinational corporations in control of government are what the BRICS assembly foresaw when they first assembled during the Obama administration.  When multinational corporations run the policy of western government, there is going to be a problem. Brazil, Russia, India, China and South Africa (BRICS) saw President Obama sub-contracting, actually giving away, U.S. trade policy.

    In the bigger picture, the BRICS assembly are essentially leaders who do not want corporations and multinational banks running their government. BRICS leaders want their government running their government; and yes, that means whatever form of government that exists in their nation, even if it is communist.

    BRICS leaders are aligned as anti-corporatist.  That doesn’t necessarily make those government leaders better stewards, it simply means they want to make the decisions, and they do not want corporations to become more powerful than they are.  As a result, if you really boil it down to the common denominator, what you find is the BRICS group are the opposing element to the World Economic Forum assembly.

    The BRICS team intend to create an alternative option for all the other nations. An alternative to the current western trade and financial platforms operated on the use of the dollar as a currency.  Perhaps many nations will use both financial mechanisms depending on their need.

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