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Aug. 23, 2021 12:38PM EST
The EV revolution will hit speed bumps
Nobody said the transition to electric vehicles would be seamless, and the General Motors recall of every Chevy Bolt is the latest example of why it won't be.
Driving the news: GM's expanding Bolt recall over battery fire risks to include 2020-2022 models, and 2019 models that weren't covered by previous rounds.
- The new recall of roughly 73,000 vehicles announced Friday will cost the auto giant $1 billion, GM said. That brings the total Bolt recall costs to $1.8 billion, per numerous reports.
- GM's replacing defective battery modules over what it calls "rare" problems. The multiphase recall now covers every Bolt since the car's 2017 launch.
Why it matters: While lots of gas-powered cars are recalled, EV recalls are unwelcome at a time when automakers and the White House are looking to hasten the transition to cars with a plug.
- EV sales have been surging, but they're still a tiny fraction of the market and will need to massively expand to reach President Biden's goal of 50% of sales by 2030.
- GM is among several automakers to issue recalls over battery problems or other glitches. Others include Hyundai, Porsche and Ford (CNBC has a breakdown here).
What they're saying: "It’s an image hit, and not just for GM," Cox Automotive analyst Michelle Krebs tells Axios.
- Krebs notes that "GM is so committed to electric vehicles that I don't think it will do anything to derail that," and that she expects industry-wide EV sales to keep growing a lot.
- However, she adds that it's too soon to know whether industry recalls will have any drag on sales as EVs move beyond early adopters.
Doug Parks, a top GM executive, said in a statement alongside the new recall that "as leaders in the transition to an all-electric future, we know that building and maintaining trust is critical."
- "GM customers can be confident in our commitment to taking the steps to ensure the safety of these vehicles," he said.
The big picture: The recall comes as GM is pouring $25 billion in electric and autonomous vehicles through 2025, with plans for well over two-dozen new models.
- One bright spot for GM is that its future models will use its Ultium battery propulsion system that's separate from the Bolt's batteries.
- Meanwhile, GM says its pursuing reimbursement from LG Chem over battery defects behind the Bolt recall, and shares of the Korean industrial conglomerate are sliding.
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Jun. 07, 2021 11:26PM EST
Nigeria's government threatens to prosecute people for tweeting
Nigeria’s government is doubling down on its decision to ban Twitter indefinitely, with regulators Monday ordering broadcasters to stop using Twitter even to gather news, and the foreign minister summoning Western ambassadors whose countries criticized the ban.
Why it matters: Twitter has been a powerful tool for younger Nigerians to mobilize, including during the massive #EndSARS protests last year against police brutality. The ban could have economic repercussions for Africa's most populous country, which has a burgeoning tech sector, and it sends an ominous signal about the country’s democracy.
How it happened: The ban was announced a day after Twitter deleted a tweet in which President Muhammadu Buhari threatened a secessionist movement in southeastern Nigeria and seemed to allude to the civil war (1967–1970) in which Buhari served as a military commander.
- In announcing the ban, the government called Twitter a source of misinformation and a threat to Nigeria's stability, while noting that rebel leaders had been allowed to tweet incendiary things without facing such censorship.
- Misinformation and incitement to violence on social media are genuine problems in Nigeria, says Zainab Usman, director of the Carnegie Endowment’s Africa program, but the government's rationale was highly “cynical."
- “This ban reinforces perceptions that the government is not very tolerant of criticism and that it is more preoccupied with its own survival than handling the serious issues of violent crime and insecurity across many parts of Nigeria,” Usman says.
The backstory: Buhari is a former military ruler who returned as a democrat and is now halfway through his second and final term.
- "He’s never been able to shake a general’s intolerance for dissent,” says Judd Devermont, director of the Africa program at the Center for Strategic and International Studies, and he currently leads “a country under siege."
- "In every one of its six geographic zones, there is conflict and criminality or secessionist movements," says Devermont.
- Under intense pressure for its handling of the security situation, Buhari’s government has been cracking down on journalists and civil society activists, Devermont says.
- “I’m deeply worried about Nigeria’s democracy,” he continues. One key test will be whether the National Assembly applies any pressure on Buhari over the ban this week.
Between the lines: The ban also exposes a vast gulf between Nigeria’s young and increasingly tech-savvy population and its aging political elites.
- Tweeting is now a crime, and the attorney general is calling for prosecutions. But Nigerians are flocking to virtual private networks, and many are continuing to tweet.
- There could be further restrictions coming. The government said on Friday that other social media platforms like Facebook would have to go through a licensing process.
The big picture: Nigeria isn't alone. Police in New Delhi visited Twitter's offices there two weeks ago after Twitter labeled a tweet by Prime Minister Narendra Modi as "manipulated media."
- Modi's government gave Twitter a final warning to comply with new social media regulations or face "unintended consequences," Reuters reported on Saturday.
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May. 10, 2021 01:12PM EST
What the Kentucky Derby doping scandal means for horse racing
Medina Spirit, the 2021 Kentucky Derby winner, failed a drug test after the race, putting his victory — and horse racing's integrity — in jeopardy.
Why it matters: Medina Spirit is Hall of Fame trainer Bob Baffert's fifth horse known to have failed a drug test in just over a year.
Details: The drug found in the horse's system was betamethasone, a steroid used to reduce pain and swelling. These kind of drugs can mask injuries, often leading to injuries or death.
What they're saying: Churchill Downs on Sunday suspended Baffert, who insisted that Medina Spirit had not been treated with the drug.
- "I don't feel embarrassed, I feel like I was wronged," said Baffert. "These are pretty serious accusations here, but we're going to get to the bottom of it and find out. We know we didn't do it.”
- He said he plans to run Medina Spirit at Saturday's Preakness Stakes in Baltimore, the second leg of the Triple Crown.
- Preakness officials said they'll make a decision about the horse's eligibility after reviewing the facts.
Bob Baffert after winning the 2021 Kentucky Derby. Photo: Andy Lyons/Getty Images
The state of play: Medina Spirit can't be disqualified until a second sample, collected at the same time as the first, confirms the result. Those results are expected soon, per NYT.
- If the positive test is confirmed, Baffert can appeal. If he loses, the runner-up, Mandaloun, will be declared the winner.
- Medina Spirit would then be stripped of his title and the $1.8 million winning purse, joining Dancer's Image (1968) as the only Derby winners to receive drug-related disqualifications.
The big picture: This news comes as horse racing, awash in doping scandals, prepares to implement the Horseracing Integrity and Safety Act.
- The landmark legislation will establish an independent organization to regulate medication policy, which is currently handled differently by each state.
- It's set to take effect next July, and would see the Federal Trade Commission write rules and the U.S. Anti-Doping Agency enforce penalties.
The last word, via SI's Pat Forde (subscription):
"Ultimately, this very much seems like the same sad song, different verse, when it comes to drug testing and sports. The denials are always vigorous. They are often fanciful. They are rarely compelling."
"Nobody hits 73 home runs in a season without assistance. Nobody wins five straight Tours de France. And in a sport like horse racing ... maybe it's simply too much to expect a guy to win a record seven Derbies between 1997–2021 without beating other cheaters at their own game."
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Feb. 23, 2021 09:49PM EST
4 board members of Texas power grid operator ERCOT resign
Four members of Texas' power grid operator resigned from their posts Tuesday after a winter storm led millions of homes to lose power across the state last week, according to a public filing.
Why it matters: Their resignations come days after Texas' public utility commission launched a probe to discover the "factors that combined with the devastating winter weather to disrupt the flow of power," throughout the state.
Electric Reliability Council of Texas (ERCOT) Chair Sally Talberg resigned along with Vice Chair Peter Cramton and board members Raymond Hepper and Terry Bulger.
- During the storm, ERCOT, which manages the flow of electric power in the state and is separate from the federal power grid, began conducting power outages to balance the demand and supply of the grid.
- In the aftermath, wholesale power prices rose from roughly $50 per megawatt hour to $9,000, WFAA reports — noting some Texans faced bills of up to $17,000 so far this month.
- ERCOT said last week that the grid almost suffered a catastrophic failure that could have caused uncontrolled blackouts leaving residents without power for months.
The big picture: Texas Attorney General Ken Paxton formally demanded copies of communications and other documents from ERCOT and Texas power companies related to the winter storm, Axios' Ben Geman reports.
- Texas Gov. Greg Abbott (R) called for an investigation into ERCOT on Tuesday and called the expensive energy bills "unacceptable."
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