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Automotive

World’s first all-electric bus fleet shut down due to breakdowns and expense

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From Heartland Daily News

By The Antiplanner

Electric Buses Not a Panacea

Last week, the city of Seneca, South Carolina decided to shut down the Clemson Area Transit System, which served Seneca and nearby Clemson University. Once touted as owning the world’s first all-electric bus fleet, just a few years later two thirds of its expensive electric buses had broken down, the company that made them went bankrupt, parts were no longer available, and the city can’t afford to buy replacement buses.

Seneca is not exactly a major metropolis. But Clemson Area Transit isn’t the only transit agency to have trouble with electric buses. Just the day before Seneca decided to shut down its transit system, Austin’s Capital Metro announced that it was giving up on its plan to electrify its bus fleet by 2030. Electric bus technology, said the agency, simply hasn’t progressed far enough to replace Diesels.

California’s Foothill Transit, one of the first agencies to use rapid-charge electric buses in 2010, has also had problems. Like Austin, the agency had hoped to completely electrify by 2030. Instead, by 2020 most of the electric buses in its fleet were out of service. In 2021, the agency decided to return the buses even though doing so would require it to pay a $5 million penalty to the Federal Transit Administration, whose grant initially paid most of the cost.

The Southeast Pennsylvania Transportation Authority (SEPTA) may be the largest agency to have practically given up on electric buses. It pulled its 25-bus electric fleet out of service in 2021 when the buses were just five years old. The buses had suffered cracks in their chassis, but it appears that problem was only the straw that broke the omnibus’s back. “We do not feel the current [electric bus] technology is a good investment at this time,” concluded SEPTA’s general manager.

Transit agencies in Asheville, Colorado Springs, and several other cities have reported similar problems. Albuquerque completely gave up on its electric buses and returned them to the manufacturer, a Chinese company called BYD.

Electric buses cost 50 to 100 percent more than their Diesel counterparts. A 2019 study by US PIRG predicted that such buses would nevertheless save transit agencies $400,000 apiece over their lifetimes due to lower fuel and maintenance costs. US PIRG relied on four “success stories” to justify this conclusion. Success story number one was Seneca, South Carolina.

The report acknowledged Albuquerque’s problems but blamed them on the city’s hills and high temperatures. Compared with Austin, Albuquerque is practically flat and its temperatures are nowhere near as extreme. If electric buses can’t work in Albuquerque, they aren’t going to work in a lot of other cities.

Other than Albuquerque, one thing many of these failures have in common is electric buses manufactured by Proterra, one of four major electric bus manufacturers that have recently sold buses in the U.S. and the only one to actually be a U.S. company. In 2023, it claimed that COVID-related supply-chain problems had driven it into bankruptcy. The company’s three divisions — transit buses, batteries and drive trains, and charging systems — were sold to three other companies to pay Proterra’s debts and none of the buyers are supporting Proterra’s buses or even making similar buses. In view of the many problems transit agencies were having with its buses before 2023, it seems likely the supply-chain explanation was just a dodge for Proterra’s shoddy design and workmanship.

One reason for that may simply be opportunism on the part of bus manufacturers, including both Proterra and BYD. Before passage of the 2021 infrastructure bill, the federal government was paying 80 percent of the cost of Diesel buses but 90 percent of the cost of electric buses purchased by transit agencies. For a transit agency, that meant that an electric bus could cost twice as much as a Diesel bus without costing local taxpayers an extra dime. Bus manufacturers thus felt free to increase their profits by raising the price of their electric buses and, having done so, may have compounded the problem by cutting costs.

Beyond manufacturing defects, electric buses have several generic problems. First, while a Diesel bus can operate all day, an electric bus can operate only a few hours on a single time-consuming charge. Proterra claimed to have solved this problem with a rapid-charge system, but that didn’t prevent Foothill Transit from suffering enormous problems with its electric buses. This probably is particularly serious on long bus routes: Austin’s Capital Metro estimates that today’s electric buses could satisfactorily serve only 36 percent of its routes.

Second, the batteries needed to power electric bus motors are heavy, which is probably why SEPTA’s buses suffered cracks in their chassis. Supposedly, the frames on SEPTA’s Proterra buses were made of “resin, fiberglass, carbon fiber, balsa wood, and steel reinforcement plates,” which almost sounds like a joke. But making frames strong enough to support the batteries means adding even more weight to the buses, which shortens their range and adds to wear and tear on other parts of the buses.

Third, electric buses are not necessarily climate-friendly enough to justify their added cost. In Washington state, where most electric power comes from hydroelectric dams, switching from Diesel to electric buses will definitely reduce greenhouse gas emissions. But most other states, including New MexicoSouth Carolina, and Texas, get most of their electricity from fossil fuels and thus electric buses may not reduce greenhouse gas emissions at all when compared with Diesels.

Under the 2021 infrastructure law, the federal government is handing out close to a billion dollars to buy electric buses. Advocacy groups such as US PIRG want transit agencies to “commit to a full transition to electric buses on a specific timeline.” Such funding and commitment may be premature, however, if electric bus technology is not capable of equalling Diesel buses, will cost agencies more in the long run, and won’t do much to reduce greenhouse gas emissions.

The Antiplanner is a forester and economist with more than fifty years of experience critiquing government land-use and transportation plans.

Originally published by The Antiplanner. Republished with permission.

Automotive

The high price of green virtue

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Macdonald-Laurier Institute

By Jerome Gessaroli for Inside Policy

Reducing transportation emissions is a worthy goal, but policy must be guided by evidence, not ideology.

In the next few years, the average new vehicle in British Columbia could reach $80,000, not because of inflation, but largely because of provincial and federal climate policy. By forcing zero-emission-vehicle (ZEV) targets faster than the market can afford, both governments risk turning climate ambition into an affordability crisis.

EVs are part of the solution, but mandates that outpace market acceptance risk creating real-world challenges, ranging from cold-weather travel to sparse rural charging to the cost and inconvenience for drivers without home charging. As Victoria and Ottawa review their ZEV policies, the goal is to match ambition with evidence.

Introduced in 2019, BC’s mandate was meant to accelerate electrification and cut emissions from light-duty vehicles. In 2023, however, it became far more stringent, setting the most aggressive ZEV targets in North America. What began as a plan to boost ZEV adoption has now become policy orthodoxy. By 2030, automakers must ensure that 90 per cent of new light-duty vehicles sold in BC are zero-emission, regardless of what consumers want or can afford. The evidence suggests this approach is out of step with market realities.

The province isn’t alone in pursuing EV mandates, but its pace is unmatched. British Columbia, Quebec, and the federal government are the only ones in Canada with such rules. BC’s targets rise much faster than California’s, the jurisdiction that usually sets the bar on green-vehicle policy, though all have the same goal of making every new vehicle zero-emission by 2035.

According to Canadian Black Book, 2025 model EVs are about $17,800 more expensive than gas-powered vehicles. However, ever since Ottawa and BC removed EV purchase incentives, sales have fallen and have not yet recovered. Actual demand in BC sits near 16 per cent of new vehicle sales, well below the 26 per cent mandate for 2026. To close that gap, automakers may have to pay steep penalties or cut back on gas-vehicle sales to meet government goals.

The mandate also allows domestic automakers to meet their targets by purchasing credits from companies, such as Tesla, which hold surplus credits, transferring millions of dollars out of the country simply to comply with provincial rules. But even that workaround is not sustainable. As both federal and provincial mandates tighten, credit supplies will shrink and costs will rise, leaving automakers more likely to limit gas-vehicle sales.

It may be climate policy in intent, but in reality, it acts like a luxury tax on mobility. Higher new-vehicle prices are pushing consumers toward used cars, inflating second-hand prices, and keeping older, higher-emitting vehicles on the road longer. Lower-income and rural households are hit hardest, a perverse outcome for a policy meant to reduce emissions.

Infrastructure is another obstacle. Charging-station expansion and grid upgrades remain far behind what is needed to support mass electrification. Estimates suggest powering BC’s future EV fleet alone could require the electricity output of almost two additional Site C dams by 2040. In rural and northern regions, where distances are long and winters are harsh, drivers are understandably reluctant to switch. Beyond infrastructure, changing market and policy conditions now pose additional risks to Canada’s EV goals.

Major automakers have delayed or cancelled new EV models and battery-plant investments. The United States has scaled back or reversed federal and state EV targets and reoriented subsidies toward domestic manufacturing. These shifts are likely to slow EV model availability and investment across North America, pushing both British Columbia and Ottawa to reconsider how realistic their own targets are in more challenging market conditions.

Meanwhile, many Canadians are feeling the strain of record living costs. Recent polling by Abacus Data and  Ipsos shows that most Canadians view rising living costs as the country’s most pressing challenge, with many saying the situation is worsening. In that climate, pressing ahead with aggressive mandates despite affordability concerns appears driven more by green ideology than by evidence. Consumers are not rejecting EVs. They are rejecting unrealistic timelines and unaffordable expectations.

Reducing transportation emissions is a worthy goal, but policy must be guided by evidence, not ideology. When targets become detached from real-world conditions, ideology replaces judgment. Pushing too hard risks backlash that can undo the very progress we are trying to achieve.

Neither British Columbia nor the federal government needs to abandon its clean-transportation objectives, but both need to adjust them. That means setting targets that match realistic adoption rates, as EVs become more affordable and capable, and allowing more flexible compliance based on emissions reductions rather than vehicle type. In simple terms, the goal should be cutting emissions, not forcing people to buy a specific type of car. These steps would align ambition with reality and ensure that environmental progress strengthens, rather than undermines, public trust.

With both Ottawa and Victoria reviewing their EV mandates, their next moves will show whether Canadian climate policy is driven by evidence or by ideology. Adjusting targets to reflect real-world affordability and adoption rates would signal pragmatism and strengthen public trust in the country’s clean-energy transition.


Jerome Gessaroli is a senior fellow at the Macdonald-Laurier Institute and leads the Sound Economic Policy Project at the BC Institute of British Columbia

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Automotive

Elon Musk Poised To Become World’s First Trillionaire After Shareholder Vote

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From the Daily Caller News Foundation

By Mariane Angela

Tesla shareholders voted Thursday to approve an enormous compensation package that could make Elon Musk the world’s first trillionaire.

At Tesla’s Austin headquarters, investors backed Musk’s 12-step plan that ties his potential trillion-dollar payout to a series of aggressive financial and operational milestones, including raising the company’s valuation from roughly $1.4 trillion to $8.5 trillion and selling one million humanoid robots within a decade. Musk hailed the outcome as a turning point for Tesla’s future.

“What we’re about to embark upon is not merely a new chapter of the future of Tesla but a whole new book,” Musk said, as The New York Times reported.

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The decision cements investor confidence in Musk’s “moonshot” management style and reinforces the belief that Tesla’s success depends heavily on its founder and his leadership.

“Those who claim the plan is ‘too large’ ignore the scale of ambition that has historically defined Tesla’s trajectory,” the Florida State Board of Administration said in a securities filing describing why it voted for Mr. Musk’s pay plan. “A company that went from near bankruptcy to global leadership in E.V.s and clean energy under similar frameworks has earned the right to use incentive models that reward moonshot performance.”

Investors like Ark Invest CEO Cathie Wood defended Tesla’s decision, saying the plan aligns shareholder rewards with company performance.

“I do not understand why investors are voting against Elon’s pay package when they and their clients would benefit enormously if he and his incredible team meet such high goals,” Wood wrote on X.

Norway’s sovereign wealth fund, Norges Bank Investment Management — one of Tesla’s largest shareholders — broke ranks, however, and voted against the pay plan, saying that the package was excessive.

“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk,” the firm said.

The vote comes months after Musk wrapped up his short-lived government role under President Donald Trump. In February, Musk and his Department of Government Efficiency (DOGE) team sparked a firestorm when they announced plans to eliminate the U.S. Agency for International Development, drawing backlash from Democrats and prompting protests targeting Musk and his companies, including Tesla.

Back in May, Musk announced that his “scheduled time” leading DOGE had ended.

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