This Week’s Top 10: Tesla drops in Consumer Reports reliability ratings, VW scandal brings in outside executives

by Jon LeSage, editor and publisher, Green Auto Market

Here’s my take on the 10 most significant and interesting occurrences during the past week…….

  1. Tesla Model SModel S ratings drop: The honeymoon with Consumer Reports is over for Tesla Motors, and CEO Elon Musk says the negative reliability ratings were off the mark. The magazine received feedback from about 1,400 Model S owners as part of its Annual Reliability Survey. The results showed a worse-than-average overall problem rate, lower than last year’s average rating. The new reliability study findings followed a glowing review in August from Consumer Reports, where the Tesla Model S P85D was given 103 on a 100-point system, the highest score ever. That didn’t include reliability ratings; the concerns owners expressed include climate control, steering, and suspension systems all appearing to have more problems than they did during the 2014 model year. Musk wrote it off in his October 21 Twitter post: “Consumer Reports reliability survey includes a lot of early production cars. Already addressed in new cars.”
  2. More about VW: Volkswagen has hired Thomas Sedran, former head of GM’s Opel division, to run its group strategy. Sedran is the second outsider recruited to join team as the German automaker loses its No. 1 in global sales ranking and deals with its diesel emissions scandal. Christine Hohmann-Dennhardt, a former judge from Germany’s top court, has been brought into VW to head its legal and compliance division. Differences in how European regulatory agencies view and measure emissions was a top issue over the past week. Europe has been considered behind the U.S., and some of that has to do with their testing model based on carbon emissions buts giving less attention to nitrogen-oxide (NOx) emissions, which is a key measure in the U.S. for air pollution.
  3. Growth forecast for biogas: Biogas, which can also be classified as renewable natural gas and biomethane, is starting to show signs of extending beyond academic test studies into commercial-scale motor fuel. A new Navigant Research report focuses on four feedstock sources in the global market: waste, industrial, agricultural, and sewage. Capacity and revenue, segmented by feedstock source, end use (electricity, renewable natural gas injection, and transport), region, and selected country, through 2024 are examined in the study. The study forecasts that the global cumulative revenue from biogas production should reach $25.8 billion by 2024. Growth is expected to come from gaining regulatory support and government incentives, and playing a role in meeting expanding renewable energy targets.
  4. Testing out carsharing: Automakers and carsharing companies are sponsoring promotional test projects in urban centers. General Motors’ new “Let’s Drive NYC” offering is reaching out to young urban professionals in New York City. GM is working with a New York real estate firm where residents can purchase access to a fleet of shared SUVs parked in their garage. Daimler has tested out a shared mobility partnership with a suburban home developer in Southern California. Carsharing giant Zipcar has worked with apartment giant Equity Residential, which owns upwards of 110,000 rental units, in cities including New York, Boston, Seattle, and Washington, D.C.
  5. China growing EV market: China is becoming a booming market to produce and sell electric vehicles in the consumer, fleet, and transit markets. Sales have been down in the past year, but the national government is committed to seeing growth in the market through incentives. Tesla Motors has been pleased to negotiate with officials on Chinese production, and will begin assembling cars in that country in two years, CEO Elon Musk said. UQM Technologies has received a purchase order for its PowerPhase electric propulsion systems for ITL Efficiency, a Beijing-based subsidiary of China’s Eastlake New Energy. Revenue may be in excess of $400 million over a ten-year period, UQM said, for shuttle and transit buses and medium-duty trucks. ZAP and Jonway Auto have increased factory production capacity and running operations at seven days a week, with production of around 50 EV minivans per day in order to meet pressing backlog orders from Dong Feng Motor Corp. in the Chinese market.
  6. Back to the Future DeLorean: For some fans of advanced vehicle technologies, the fast time-traveling DeLorean powered by garbage as engine fuel in the “Back to the Future” trilogy stands out in their memories. Toyota participated in 30th anniversary of the first film in the series with a commemorative video with the film’s stars, Michael J. Fox and Christopher Lloyd. It also serves as a kickoff to the U.S. debut of the 2016 Toyota Mirai hydrogen fuel-cell vehicle.
  7. Charging station connectivity: Growing electric vehicle charging station networks in the U.S. and abroad will require a lot more than setting up stations and supplying them with power. Communications equipment, payment systems, and consumption data collection is needed for public charging stations to increase their presence and functionality. In a new Navigant Research market forecast, the consulting firm projects that global communications equipment and services associated with EV charging networks is expected to generate revenue of just over $62.8 million in 2015 and grow to more than $709.7 million in 2024.
  8. Highlights from UCLA Luskin Center’s Impact report: Factors that influence plug-in electric vehicles sales in California; Overcoming electric vehicle adoption barriers for apartment and condominium residents; Assessing the state of the state’s PEV policies; and Paving the way for complete, living streets that create vibrant, productive, and sustainable communities.
  9. Honda’s tech revolution: Honda is about to launch a new round of powertrain technologies with the goal of boosting fuel economy and performance and reinforcing the company’s reputation for innovation. The new technologies range from a new-generation plug-in hybrid powertrain that gets 40 miles of range on its battery; a 10-speed automatic transmission; a lean-combustion cycle that gains ultrahigh thermal efficiency; and unveiling the production version of its hydrogen fuel-cell vehicle at the 2015 Tokyo Motor Show. That fuel-cell vehicle’s platform will also be used in the 2018 plug-in hybrid.
  10. Pre-orders of Mirai: About 2,000 people have placed orders for the Toyota Mirai hydrogen fuel cell vehicle that just arrived for sale in the U.S. in select California markets. Only about half of those orders will be fulfilled in the 2016 model year, Toyota says.

This Week’s Top 10: Clean Cities announces research resources, Tesla Model S and Toyota Prius take Consumer Reports awards

by Jon LeSage, editor and publisher, Green Auto Market 

 

Here’s my take on the 10 most significant and interesting occurrences during the past week…….

 

  1. Clean Cities logoThe US Dept. of Energy’s Clean Cities has issued several research resources for stakeholders in the past week. The Clean Cities 2015 Vehicle Buyer’s Guide offers vehicle selection, pricing, infrastructure, and emissions information on a wide selection of alternative fuel vehicles. Categories include propane, compressed natural gas, biodiesel, plug-in electric, plug-in hybrid electric, hybrid electric, and ethanol flex-fuel. Clean Cities also said that it’s moving forward on its request for information (RFI) project announced in November on purchasing and procurement for bulk vehicle orders. The RFI is soliciting feedback from industry, academia, research laboratories, government agencies, and other stakeholders on issues related to purchasing/procurement processes designed to coordinate and consolidate bulk alternative fuel vehicle, advanced vehicle orders, and vehicle subsystems. Responses are due no later than 5:00 pm eastern time on March 13, 2015. This announcement was coordinated with a public meeting for Clean Cities stakeholders to collect input in a new Clean Cities five-year strategic plan. Clean Cities encourages stakeholders to continue to give written comments through its Strategic Planning Meeting website until March 13.
  2. The Tesla Model S and Toyota Prius take best of awards from Consumer Reports. For the second year in a row, the Model S has taken the “best overall” category for its “innovation, magnificence, and sheer technological arrogance.” The testing team likes the fact that Tesla’s over-the-air software updates keep the 2013 model up to date with many of the same features as the new models. The Toyota Prius took the “green car” category again, which has been the case consecutively since 2004. Testers haven’t been that impressed with ride comfort, cornering, and interior, but the affordability, fuel economy, packaging and “blue-chip reliability” make it the “perfect economical transportation solution.” Rating indicators for all Consumer Reports categories are based on overall road-test performance, reliability, and safety.
  3. AltCar has announced dates for its two 2015 events. For the Northern California event, the City of Oakland AltCar Conference & Expo will be held May 28. The 10th anniversary of the City of Santa Monica’s AltCar Expo will take place on Sept. 18-19. For participation, you can contact Platia Productions at (310) 390-2930, ext. 3.
  4. Toyota started production of Mirai fuel cell sedan at its Motomachi Plant in Toyota City, Japan. The fuel cell car can travel 400 miles on a fueling and has been very important in Toyota’s green vehicle strategy; however, the production numbers are limited to 700 units this year, 2,000 in 2016, and 3,000 in 2017.
  5. Daimler joins other automakers selling in the European market by implementing more material cost efficiencies to meet stringent European Union emissions targets. Daimler Chief Financial Officer Bodo Uebber says that in 2014, the automaker offset the burdens from the variable cost for its carbon reducing measures with material cost efficiencies such as sharing more commonality among its different car lines. Uebber expects to do the same this year through at least 2017.
  6. The Propane Education & Research Council (PERC) is funding $600,000 to Icom North America to support development of its propane autogas technology in the Ford 3.5L EcoBoost engine. That should assist Icom receiving both US Environmental Protection Agency and California Air Resources Board certifications for the 3.5L EcoBoost platform. Icom’s JTGhp direct-injection system can be applied to the Ford F-150, Explorer, and Taurus vehicle platforms. PERC also announced last week that it will be displaying at the NTEA Work Truck Show in Indianapolis. Fleet managers are invited to interact with PERC’s dimensional displays for calculating lifetime operating costs, and seeing cost savings that comes from using propane autogas.
  7. Volvo Cars is joining the autonomous vehicle test driving movement by placing 100 self-driving cars on Gothenburg, Sweden streets by 2017. Local residents will be using these autonomous Volvo XC90 crossover test vehicles commuting to work on a controlled 31-mile route. That test is expected to run through the spring of 2019 and will use sensors, cloud-based positioning systems, intelligent braking, and steering technologies through a new Volvo autopilot system.
  8. Texas state grants had pretty good return on investment with grants issued to natural gas vehicles (NGVs), according to a study by the University of Texas San Antonio’s Institute for Economic Development. Three state grants, totaling $52.9 million, supported construction of new natural gas fueling stations and the adoption of NGVs. That generated $128 million in economic impact, $52.9 million in gross state product, and supported 927 full-time jobs in 2014. The Texas Commission on Environmental Quality administered the three grants that went out to the Clean Transportation Triangle, the Alternative Fueling Facilities Program, and the Texas Natural Gas Vehicle Program.
  9. As biofuel supporters wait for the US Environmental Protection Agency to get around to announcing its 2014 volume standards, another action was taken in Washington. A bill introduced last week by Senators Pat Toomey (R-Pa.) and Dianne Feinstein (D-Calif.) would repeal the corn ethanol mandate in the Renewable Fuel Standard (RFS). Feinstein is especially concerned about corn prices increasing if that mandate continues. They’re misunderstanding the facts, according to Bob Dinneen, president of the Renewable Fuels Association. “Corn is less expensive today than when the RFS was passed,” Dinneen said.
  10. Solar power will see substantial growth in 2015, according to a new study by GTM Research. Solar installations will grow in 75% of US states, with incremental growth in Arizona and Massachusetts but significant growth in Georgia and Utah.