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This is the EV poster child the world needs.
“It is a head turner, a traffic stopper, a conversation starter.” That’s what The New York Times wrote about the Volkswagen New Beetle when it debuted almost exactly 25 years ago.
That’s the kind of magic Volkswagen hopes to work again starting next year with another reborn icon: the original “Type 2” Microbus that reached a household-name status in the 1960s and ‘70s. And like the New Beetle before it, this new VW Bus offers a taste of nostalgia but ultimately updates the recipe for a new era.
While the New Beetle was powered by diesel and gasoline engines, the VW Bus is reborn as the ID.Buzz, and now it runs on electrons instead of fossil fuels.
The U.S.-spec 2025 Volkswagen ID.Buzz made its debut Friday at a special event in Huntington Beach, California, where its surfer-and-hippie-van image was played to the hilt. It’s an understatement to say we’ve been waiting a while for this electrified Type 2 comeback; the original concept car debuted way back in 2017, but the world would wait another five years before the production car would go on sale in Europe. And Americans will have to wait even longer still until sales start here in 2024.
But just as the original Microbus wasn’t known for its speed, this new ID.Buzz makes up for its lack of punctuality with pure charm. Americans will get the longer, bigger version of the bus with rear-wheel-drive or all-wheel-drive; more horsepower than the European model; and a bigger 91 kWh battery good for an estimated 260 miles of range, according to various reports.
And above all, it just looks fantastic. There are a lot of reasons to pay attention to the ID.Buzz when it finally starts gracing American roads next year.
The world, and the car market, are very different since the days when the New Beetle was still, uh, new. While the spherical, ultra-cute, vividly colored New Beetle was essentially a stylish compact car, American buyers’ tastes have since skewed much bigger. We’re a truck, SUV, and crossover market now. That goes doubly true for EVs.
Electric vehicles are costly (and not always profitable) to make, and so automakers have to target the most volume-selling segments first. This is partly why the Mustang Mach-E is a small crossover and not a coupe, for example.
So VW was smart to use the old Microbus as a way into this world (though it should be noted that the company has flirted with this idea for over 20 years now). The U.S.-spec ID.Buzz has three rows of seats and can carry up to seven people. In short, it’s a people-mover just like the old one was, and that’s the kind of car we’re buying right now.
And thankfully, it’s not just another crossover. No automaker has really jumped into the electric van space with this much style yet. Those offerings tend to be cargo-carrying options, like the Ford E-Transit. The ID.Buzz brings family-friendly capability with a design that you may just stare at when it’s stopped to charge. I’d argue Hyundai’s eye-catching Ioniq cars are like that, but they still won’t bowl people over like VW’s electric van will.
It’s proof that, yes, automakers can think outside the box a little bit and that EV design, unencumbered by the need to place an internal combustion engine somewhere, can take more risks. I hope we see more of this. Too many new electric crossovers are just straight boring. I don’t see a world where driving an ID.Buzz wouldn’t be an adventure of some sort.
The ID.Buzz has the potential to be exactly the kind of head-turning, traffic-stopping, conversation-starting electric vehicle that we haven’t really seen the likes of since the Tesla Model 3 came out.
It’s not just a needed shot in the arm for Volkswagen after the capable but unexciting electric ID.4 crossover — although it very much is that — it’s also destined to become a new kind of ambassador for electric cars in general. And one driven by eye-catching design, our real or idealized visions of the past, and the kind of technology VW and other companies are counting on over the next few decades.
When people see this thing, they’re going to stop and ask questions — and those questions will invariably touch on the charging experience, range, and day-to-day driving. That might help people realize EV ownership is more within reach than ever, and getting better all of the time.
Remember how much you didn’t love never going anywhere at the height of COVID-19? Pandemic lockdowns are why so many Americans discovered the #vanlife for the first time, going on long, outdoorsy trips in camper vans, RVs, and even Japanese-imported off-road vans.
Even though much of the very worst of COVID-19 seems thankfully in our collective rearview mirrors, the road trip, camping, and vanlife boom is still going relatively strong. And the RV Industry Association says a new generation of Millennials (and sometimes Zoomers) is taking up this mantle for the first time ever, bringing younger energy into something once considered almost exclusively a Boomer hobby.
If you want to do that and not pay for expensive RV gas, the ID.Buzz seems like a great way in. While it’s not as large as RVs are, obviously, it does seem tailor-made for road trips just like the Microbus was. The new EV even has tables that fold out of the back seats and a removable center console between the front seats for extra space. You’re kind of missing out on a lot of fun if you just use this thing for school drop-offs and daily errands.
But time will tell if the new ID.Buzz is going to be the kind of ultra-popular, volume-selling EV that could keep Elon Musk awake at night and wondering if he should spend more time updating Tesla’s lineup and less time tweeting.
The price is still a big unknown factor. We should learn more about that closer to its actual debut, but the estimates of around $40,000 feel a bit low to me; I’m worried it could be closer to $60,000. (VW’s North American CEO is already warning his dealers not to engage in price-gouging.) And as of now, the German-built ID.Buzz won’t qualify for any tax credits.
Finally, that 260-mile range isn’t exactly mind-blowing. With tons of competitors crossing 300 miles of range or more these days — that’s what you get from Kia’s forthcoming three-row EV9, for example — road-tripping may hinge on the car’s ability to charge its battery from 10 to 80 percent in 30 minutes rather than its talents as a distance runner. One imagines we’ll see some range upgrades in the near future.
Nonetheless. the ID.Buzz remains something to look forward to, an exciting and fresh entry into the electric space that I suspect could be a lot of families’ first EV ever. But if you end up getting one, expect to spend a lot of your time talking to other people about it.
The ID.Buzz won’t fly under the radar like yet another boring crossover, and that’s exactly the point.
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Rob and Jesse talk with former Ford economist Ellen Hughes-Cromwick.
Over the past 30 years, the U.S. automaking industry has transformed how it builds cars and trucks, constructing a continent-sized network of factories, machine shops, and warehouses that some call “Factory North America.” President Trump’s threatened tariffs on Canadian and Mexican imports will disrupt and transform those supply chains. What will that mean for the automaking industry and the transition to EVs?
Ellen Hughes-Cromwick is the former chief economist at Ford Motor Company, where she worked from 1996 to 2014, as well as the former chief economist at the U.S. Department of Commerce. She is now a senior visiting fellow at Third Way and a senior advisor at MacroPolicy Perspective LLC.
On this week’s episode of Shift Key, Rob and Jesse chat with Ellen about how automakers build cars today, why this system isn’t built for trade barriers, and whether Trump’s tariffs could counterintuitively help electric vehicles. Shift Key is hosted by Jesse Jenkins, a professor of energy systems engineering at Princeton University, and Robinson Meyer, Heatmap’s executive editor.
Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, or wherever you get your podcasts.
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Here is an excerpt from our conversation:
Jesse Jenkins: I hear often that we’re also sending parts back and forth as well — that particularly near the border with Canada, we have manufacturing parts suppliers on both sides of the border. So it’s not just the final car, it’s also pieces of the car going back and forth. How does stuff move around in this sort of complicated trade network between, Canada, the U.S., and Mexico?
Ellen Hughes-Cromwick: There is a lot of back and forth, and as you mentioned, a lot of the automotive analysts track the travel of not just the vehicles, but the parts. And the latest estimates show that in some cases, we’re going back and forth across the Ambassador Bridge here in Detroit, you know, six, eight times.
So when you say all of a sudden, as of tomorrow, I’m going to put a 25% tariff on that — I mean, that basically shutters businesses. You can’t absorb a 25% hit, especially if it’s a part or an assembled vehicle. Part of that 25% you could probably absorb, but for the thin margins that parts suppliers work for day in and day out, I mean, there’s just no way. You’re better off shuttering your business. I hate to say that, but you know, you just can’t make the equation work, with a 25% hit.
Jenkins: So this is hypothetical structure, I don’t know if this is exactly right, but so you might have engine parts manufactured in Michigan being sent to Windsor, Ontario to assemble an internal combustion engine. And then it goes back to a plant somewhere else in the U.S. to be assembled into a vehicle. Maybe you get the glass from somewhere for the windows, you know, these are all moving back and forth on a regular basis after so many years of free trade agreements between the two countries, or the three.
Hughes-Cromwick: That’s right. That’s right. And again, coming back to Michigan, because we’re so close to the suppliers in Canada, and we have the lion’s share of automotive suppliers, especially small and mid-size suppliers — so the tier two, tier three. They’re supplying to a tier one big supplier like Magna or Borg.
So you’ve got a lot of these tier two, tier three suppliers in Michigan. Well, why? Because they’re getting a part from a Canadian supplier, putting it into theirs. And maybe that’s a component that goes into an internal combustion engine that’s being produced.
This episode of Shift Key is sponsored by …
Download Heatmap Labs and Hydrostor’s free report to discover the crucial role of long duration energy storage in ensuring a reliable, clean future and stable grid. Learn more about Hydrostor here.
Music for Shift Key is by Adam Kromelow.
For now at least, USAID’s future looks — literally — dark.
Elon Musk has put the U.S. Agency for International Development through the woodchipper of his de facto department this week in the name of “efficiency.” The move — which began with a Day One executive order by President Trump demanding a review of all U.S. foreign aid that was subsequently handed off to Musk’s Department of Government Efficiency — has resulted in the layoff or furloughing of hundreds of USAID employees, as well as imperiled the health of babies and toddlers receiving medical care in Sudan, the operations of independent media outlets working in or near despotic regimes, and longtime AIDS and malaria prevention campaigns credited with saving some 35 million lives. (The State Department, which has assumed control of the formerly independent agency, has since announced a “confounding waiver process … [to] get lifesaving programs back online,” ProPublica reports.) Chaos and panic reign among USAID employees and the agency’s partner organizations around the globe.
The alarming shifts have also cast enormous uncertainty over the future of USAID’s many clean energy programs, threatening to leave U.S. allies quite literally in the dark. “There are other sources of foreign assistance — the State Department and the Defense Department have different programs — but USAID, this is what they do,” Tom Ellison, the deputy director for the Center for Climate and Security, a nonpartisan think tank, told me. “It is central and not easily replaced.”
In addition to “saving and improving lives around the world in an altruistic sense,” USAID has “a lot of benefits for U.S. national interests and national security,” Ellison went on. Though USAID dates back to the Cold War, its Power Africa initiative launched under President Barack Obama in 2013, and energy investment projects around the world followed. Of its $42.8 billion budget request for 2025, the agency had earmarked $4.1 billion for global infrastructure and investment programs, including energy security and excluding its additional targeted energy investment in Ukraine.
Some of these benefits are immediate and obvious. For example, USAID invested $422 million in new energy infrastructure in Ukraine, including more than a thousand generators and a solar and battery storage project, all to brace against Russia’s weaponized flow of fossil fuels. (USAID was also reviewing the deployment of Musk’s Starlink Satellite Terminals to the Ukrainian government prior to his gutting of the agency, per The Lever.)
But USAID is in the power business for other strategic reasons, too. USAID initiatives such as assisting Georgia and Kosovo in running their first renewable energy auctions help to secure energy stability and independence among countries where Russia is trying to gain sway. By the same token, rural electrification efforts in Africa help the U.S. remain a leader on the continent even as China is looking to make inroads. “China’s infrastructure and assistance programs around the world, like the Belt and Road Initiative — they consider that very explicitly a lever to peel U.S. allies away,” Ellison said. “Russian propagandists are already cheering the potential shutdown of USAID or a cut to their programs, for those reasons.”
Likewise, USAID has also rolled out energy projects in Indonesia, helping to deploy rooftop solar plants at airports and investing $200 million into a geothermal plant and two hydropower plants. Such efforts in the Indo-Pacific “pay dividends in strengthening relationships with allies and partners critical to that competition with China,” the Council on Strategic Risks, the parent institute of the Center for Climate and Security, wrote in a memo Tuesday.
That’s part of what makes the USAID whiplash so severe. Not only is the concern and uncertainty of the agency’s shutdown in complete opposition to the administration’s purported goal of “efficiency,” but Trump’s knee-jerk reaction to anything that suggests the idea of a U.S. handout — much less one that includes programs explicitly addressing “climate change” — runs counter to his stated goals of protecting U.S. troops and national security interests. USAID programs “are very cost-effective investments in terms of being a cent or less on the U.S. taxpayer dollars,” Ellison told me. “They’re paying for themselves over and over again in terms of humanitarian or military spending averted in the future.”
The American Clean Power Association wrote to its members about federal guidance that has been “widely variable and changing quickly.”
Chaos within the Trump administration has all but paralyzed environmental permitting decisions on solar and wind projects in crucial government offices, including sign-offs needed for projects on private lands.
According to an internal memo issued by the American Clean Power Association, the renewables trade association that represents the largest U.S. solar and wind developers, Trump’s Day One executive order putting a 60-day freeze on final decisions for renewable energy projects on federal lands has also ground key pre-decisional work in government offices responsible for wetlands and species protection to a halt. Renewables developers and their representatives in Washington have pressed the government for answers, yet received inconsistent information on its approach to renewables permitting that varies between lower level regional offices.
In other words, despite years of the Republican Party inching slowly toward “all of the above” energy and climate rhetoric that seemed to leave room for renewables, solar and wind developers have so far found themselves at times shut out of the second Trump administration.
ACP’s memo, which is dated February 3 and was sent to its members, states that companies are facing major challenges getting specific sign-offs and guidance from the Army Corps of Engineers, which handles wetlands permits, as well as the Fish and Wildlife Service, our nation’s primary office for endangered species and migratory bird regulation.
Federal environmental protection laws require that large construction projects — even those on state and private lands — seek direction from these agencies before building can commence. Wetlands permitting has long been the job of the Army Corps, which determines whether particularly wet areas are protected under the Clean Water Act. Wetlands have historically been a vector for opponents of large pipelines and mines, as such areas are often co-located with sensitive ecosystems that activists want to preserve.
Fish and Wildlife, meanwhile, often must weigh in on development far from federal acreage because, according to the agency, two-thirds of federally listed species have at least some habitat on private land. FWS also handles the conservation of bird species that migrate between the U.S. and Canada, which are protected under the Migratory Bird Treaty Act. Any changes to federal bird consultation could impact wind developers because turbine blades can kill birds.
Now, apparently, all those important decision-makers are getting harder to read — or even reach. Army Corps district activity has become “widely variable” and is “changing quickly,” per the memo, with at least two districts indicating that for “wind or solar projects” they “will not be issuing any JDs,” meaning jurisdictional determinations for federally protected wetlands — that is, they won’t even say whether federal wetlands are present at a construction site or not. According to the Army Corps, receiving a JD is optional, but it is nevertheless an essential tool for developers trying to avoid future legal problems in the permitting process.
In addition, emails from staff in FWS’ migratory birds protection office now apparently include a “boilerplate notice” that says the office “is unable to communicate with wind facilities regarding permitting at this time.”
Usually, renewables developers just get a simple go-ahead from the government saying that they don’t have wetlands or bird nests present and that therefore work can begin. Or maybe they do have one of those features at the construction site, so guardrails need to be put in place. Either way, this is supposed to be routine stuff unless a project is controversial, like the Keystone XL pipeline or Pebble Mine in Alaska.
It’s not immediately clear how solar and wind developers move forward in this situation if they are building in areas where wetlands or protected species even may be present. Violating wetlands and species protection laws carries legal penalties, and with the Trump administration arranging itself in such an openly hostile fashion against renewables developers, it’s probably not a good idea to break those laws.
Unfortunately for industry, the ACP memo describes a confusing state of affairs. “Written guidance from ACOE [Army Corps of Engineers] to industry has been expected but members have not seen it yet. Actions and communications from regional districts appear to be guided by internal ACOE emails,” the document states. Staffing within the Army Corps is “uncertain” due to questions over whether money from the Inflation Reduction Act — which provided funds to hire permitting personnel — will be “available to continue funding staff positions in some offices,” or whether permitting staff will take the administration’s voluntary resignation offer, which the memo claims “is apparently still actively being pushed on staff with emails.”
Meanwhile, at Fish and Wildlife, ACP’s members “have indicated some staff are still taking phone calls and responding to emails to answer questions, while others are not.”
As with a lot happening in the early era of Trump 2.0, much of the permitting mess is still unclear. We don’t know who is behind these difficulties because there have been no public policy or guidance changes from the Army Corps or Fish and Wildlife. Trump did order agencies to stop issuing “new or renewed approvals” for wind projects shortly after entering office, but the ACP memo describes something altogether different: agency staff potentially refusing to declare whether an approval is even necessary to build on state or private lands.
Another example of how confusing this is? Interior had issued a 60-day pause on final decisions for solar projects, but the Army Corps isn’t under Interior’s control — it’s part of the Defense Department.
It’s also unclear if the contagion of permitting confusion has spread to other agencies, such as the Federal Aviation Administration, which we previously reported must regularly weigh in on wind turbines for aviation safety purposes. As I reported before Inauguration Day, anti-wind activists urged the Trump administration to essentially weaponize environmental laws against wind energy projects.
ACP didn’t respond to a request for comment. I also reached out to the Army Corps of Engineers and Fish and Wildlife Service, so I’ll let you know if and when I hear back from any of them.