EuroWire March 2020

Transatlantic cable

“If the popularity of SUVs continues to rise in line with recent trends, this could add another two million barrels per day to our projection for 2040 oil demand,” it said. However, both BMW and Daimler, owner of Mercedes, will be launching fully electric SUVs, which they say illustrates their commitment to a cleaner future. To an extent it does, but it needs greater interest from drivers and buyers, and that interest is likely to be driven by cost.

Automotive

Are SUV owners driving away from the climate issue?

High demand for sport-utility vehicles (SUVs) was behind 2019’s record sales figures for luxury carmakers, leaving the industry on what has been described as a “collision course with government efforts to tackle global warming, despite big investments in electric vehicles.” BMW’s main luxury brand rose 2 per cent to a record 2,168,516 vehicles last year, with a 21 per cent increase in sales of the “X” branded SUV that represents 44 per cent of BMW’s global sales. At Mercedes-Benz, every third luxury car sold in 2019 was an SUV. Carmakers worldwide are investing millions of dollars to develop electric vehicles that meet ever-tougher emissions regulations, but the International Energy Agency (IEA) warns: “Consumer preferences for SUVs could offset the benefits from electric cars.” There are over 200 million SUVs around the world, up from about 35 million in 2010, accounting for 60 per cent of the increase in the global car fleet since 2010. The IEA said in its November World Energy Outlook 2019 report that a doubling in market share over the last ten years has seen emissions from SUVs grow by nearly 0.55 gigatons of carbon dioxide (CO 2 ) to around 0.7 gigatons. The IEA estimates SUVs to be the second-largest contributor, after the power industry, to the increase in global CO 2 emissions since 2010.

Networks

† In January, Sprint, a US wireless operator, shut down its underperforming Virgin Mobile USA pre-paid sub-brand. Initially launched 18 years ago, co-owner Sprint paid $483mn to acquire it outright in 2009. The Virgin Mobile website stated that existing Virgin Mobile USA accounts would be transferred to Boost Mobile in February, to a “comparable or better” service plan, and at no extra cost. † Also in January, the Federal Communications Commission (FCC) announced it would be distributing $20bn to boost rural broadband. FCC chairman Ajit Pai said funds would be made available, not only to rural broadband providers, but also to companies that were previously ineligible for subsidies, such as wireless firms, electric co-ops and cable providers. The funds will be distributed over ten years with the aim of closing the existing digital divide suffered by rural areas, and creating opportunities for local communities. Gill Watson Features Editor

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March 2020