EV/AV Report — September 4, 2025

Toronto, Ontario — In this week’s EV/AV report: a study finds electric vehicles emit just 35 percent less carbon dioxide than traditional ones, Europe fiddles as  a German and a Japanese OEM race to begin EV production in the continent, and General Motors breaks its EV sales records.

Estimating Emissions

A University of Michigan team led by Elizabeth Smith and Greg Keoleian has published a life-cycle analysis of light-duty vehicles in Environmental Science & Technology.

The researchers found that, on average, a 480-kilometre (300-mile) range battery electric vehicle (BEV) produces 31–36 percent less greenhouse-gas emission than a 80-kilometre (50-mile) plug-in hybrid (PHEV), 63–65 percent less than a hybrid (HEV) and 71–73 percent less than an internal combustion vehicle (ICEV).

Downsizing also plays a role, with compact ICEVs generating 34 percent fewer emissions than ICEV pickups.

The study is the first to measure emissions while hauling cargo, showing that carrying 1 135 kilograms (2,500 pounds) in a pickup raises BEV emissions by 13 percent, from 83 to 94 g CO₂e/km (134 to 152 g CO₂e/mi), compared with a 22 percent rise for ICE pickups, from 302 to 368 g CO₂e/km (486 to 592 g CO₂e/mi).

Volkswagen slowing production in North America, not Europe

VW says it will cut back production of its ID.4 electric SUV at the Chattanooga, Tennessee plant because fewer people are buying them. Around 160 workers will be temporarily laid off starting in late October, after U.S. ID.4 sales fell 19 percent in the first half of 2025 and dropped 65 percent in the second quarter. Sales in Canada also slipped by more than 40 percent, while government rebate cuts in Quebec and the end of U.S. federal EV tax credits are expected to make things even tougher.

Despite this, the OEM is doubling down on EV manufacturing across the Atlantic. Volkswagen is developing an entry-level electric hatchback, the ID.Polo, in Munich, Bavaria. The car, expected to sell for under €25,000 (about C$29,000), will be shown in Munich in camouflaged form before its full launch in 2026.

Toyota expands Czech factory for first European EV line

Toyota is putting €680 million (about $792 million) into its Kolín factory in the Czech Republic to build its first battery-electric car in Europe. The government is helping with about €64 million ($75 million) in support, and the project will add roughly 245 new jobs to a plant that already has 3,200 workers. The site, which now makes the Aygo X and Yaris Hybrid, will start turning out electric models in the coming years.

GM reports record EV sales in August

General Motors sold 21,000 electric vehicles in the U.S. in August, its best month ever for EV sales. helped by buyers hurrying to get government credits before they disappear. In the second quarter, GM sold about 46,000 EVs, while total U.S.

EV sales were just over 310,000, down a little more than six percent compared to last year. Even so, GM’s stock is up 14 percent in 2025, showing investors still feel confident.

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