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For EV sales strength, it’s not all about California

Living in California is a choice made by many, whether they’re originally from Mexico, Korea, or England; or from parts of the United States where the freezing and muggy weather drove them west. It’s a vacation center, and its cities host major conferences and awards shows. Some companies are moving out of California to Texas, while others quickly fill in those now-empty spaces; they’re willing to pay for the land and the workforce to reach the talent they need, and to be located near key partners and clients. The regulatory climate is tougher for businesses to increase earnings in California, but they keep moving or starting up here.

As the state’s Zero Emission Vehicle (ZEV) target shows with other states adopting that policy, what happens in California doesn’t necessarily stay in California. But, how true is that of plug-in electric vehicle sales?

The California Plug-in Electric Vehicle Collaborative just announced a milestone: the 100,000 mark has been crossed. At the end of August, 102,440 plug-in electric vehicles (EVs) have been sold in the state since the launch of the Nissan Leaf and Chevrolet Volt in late 2010. Californians are buying about 40% of all the EVs sold in the US.

“California’s plug-in electric vehicle market is ramping up, and we expect to see significant growth over the next ten years as customers realize how economical and convenient they are,” said California Plug-In Electric Vehicle Collaborative Executive Director Christine Kehoe. The collaborative, made up of key stakeholders in the EV space, are hoping Gov. Jerry Brown’s goal of having 1.5 million EVs on the roads by 2025 can be realized.

As for the rest of the country, EVs just reached their quarter-million sale mark in the US. These announcements were made on the eve of the fourth annual National Drive Electric Week, which is taking place this week – Sept. 15-21, 2014, in more than 130 cities in 35 states.

San Francisco is the top selling US city for EVs, with San Diego and Los Angeles also making a top 10 list issued not long ago by ChargePoint. Other cities making the top 10 were Seattle, Austin, Honolulu, Portland (Ore.), Detroit, Washington, DC, and Boston.

While EVs are impressive in their US sales numbers since their launch in late 2010 – compared to hybrid electric vehicles in 2001 – some analysts see the excitement waning. As a Californian who probably won’t be moving out this state, I’m proud to see the Golden State take another leading role in technology innovation and ambitious environmental targets. The question becomes: How to increase EV sales across the rest of the country?

While interviewing Cary Donovan, vice president at Sam Swope Auto Group in Louisville, Ky., I asked him about the dealer group’s experience selling EVs. Sam Swope Auto Group manages about every brand of car you can think of and works with customers who want to check out all of them. “The BMW i3 and Cadillac ELR offer great technology – they’re world class,” Donovan said. “But American car buyers are not quite ready for them.”

The dealer group had a similar experience selling hybrids. “Hybrids go hot and cold with gas prices,” Donovan said. “Hybrids were confusing to consumers.”

What will it take to win over consumers – and fleets – to purchasing more EVs around the country? This is a very big question, one that I’ve put out to leaders in the industry; and some of them who participate in my monthly stakeholder conference calls. Here are a few ideas to consider on reaching a significant audience outside California:

Get dealer staff trained on effectively selling EVs: As Donovan said, you’ve got very intelligent consumers walking into dealer offices these days. Dealer sales reps need to be well trained and concise in selling the benefits of an EV to a car shopper. That can be overwhelming for dealers these days with all the mobile devices being paired to electronic controls in cars for GPS, driving directions, music, satellite radio, etc. Selling the EV is too much for many of the staff – if a sharp customer finds out the dealer associate doesn’t know what he or she is talking about, they’ll lose that sell. Sale reps are enticed to direct car shoppers to cars that are easier to sell and will give them their sales commission faster. What about a sales program training staff on how to effectively tell that story in less than 10 minutes? What if they can answer all those questions professionally – incentives, home charging installations and what they cost, charging time, driving range, model options, and payment plans would be great starting points for staff training.
Reach the four market segments: For automakers and dealer networks, there appears to be four key market segments to reach in marketing programs for EVs. It may be wise to adapt marketing content to each niche. Those interested in the Tesla Model S, BMW i Series, Fisker Karma, and Cadillac ELR, many times are in the near-luxury and upscale luxury consumer segments. They’re most impressed by the performance of the car, the gadgetry on the dashboard, and the brand image – and are willing to pay for them, many times through leasing programs. I would call the second category NextGen technologists; they’re younger consumers who usually buy the next Android, iPhone, or tablet before anyone else does. They bought their share of Leafs and Volts in the early adopter phase. They do have a lot of influence on their peers. Sustainability stewards have environmental concerns and many times belong to environmental groups; they’re likely to have solar panels on their houses, do a lot of recycling, donate to causes, have owned a hybrid for years, and are ready to transition over to EVs. Some of them were among the early adopters. As for the largest group of all: cost savers, which applies to fleet managers as much as consumers. You’ve got to have the numbers in order: acquisition costs with every type of incentive you can find out there; cost per mile compared to gasoline-engine counterparts and current gas prices; maintenance – what’s required and how often (which is a real benefit EVs have over internal combustion engines and all their oil and filter changes). Resale value is another question – it’s still a bit early to have much reliable data on this question, though it hasn’t looked so good for the Nissan Leaf.
Ramp up production and deliver more EVs to dealers: The Chevrolet Volt is the most obvious example of this issue to me. But there are several observers who say that most of the EV strategies being followed by automakers comes from the “compliance car” conundrum based on California and a few colleague states aiming for zero emission vehicle targets through regulations. There are a lot of attractive EV deals out there for consumers and fleets with state and federal incentives, and OEM and dealer incentives. They need to reach a wider swath of markets for more consumers to take them seriously. Like most new vehicle technologies, they need to cross a few boundaries to see sales growth – that might include displaying them at car shows; ride and drive events; test programs with fleets and car rental companies; partnerships with carsharing agencies; social media campaigns; and special events such as those being carried out during National Drive Electric Week. There are a few dealers out there standing out in their markets as the No. 1 green car dealer. All of this takes more investment, commitment, and staff resources from automakers and dealers – and usually in alliance with event planners, conferences, and car shows. Automakers and dealers will be drivers of change in EV adoption, if they can stand up to the challenge.
Work things out with Tesla Motors on its retail stores. Dealer groups are not happy to see state legislative and legal settlements allowing a set number of Tesla retail stores within the state, such as the high court ruling in Massachusetts yesterday. That issue was also addressed in New York earlier this year when Tesla was allowed through a settlement to operate five existing stores within the state. I recommend that it be accepted as a resolution. Tesla is fine with it, as are major automakers. The conflicts end, and large dealers will likely go unaffected. The real competition right now is coming down to Tesla vs. BMW for the near-luxury and upscale luxury segments. As for the franchise vs. corporate store battle, that’s one going back to the origins of property law in England that was carried over to the US. That battle will go on for years to come. In the meantime, it’s seems obvious that Tesla isn’t going away. Retailing is morphing as consumers go through most of the decision-making process on their mobile devices and laptops before stepping into a store to close the deal.

Can autonomous vehicles support the endgame of clean transportation?

When I was writing “Hands off the Steering Wheel,” the feedback I received from colleagues in clean transportation was a mixed bag. Lack of interest, not seeing how it relates to clean transportation, and ominous dread were the types of responses I received, for the most part. There were a few people, including readers who’ve posted comments in Green Auto Market and on LinkedIn, who see the connectivity between the goals of clean transportation and autonomous vehicles. For me, it’s all about the role ground transportation will be playing in the next 25 years as technology advances rapidly, traffic congestion grows, and for meeting aggressive mandates in greenhouse gas emissions.

A Christian Science Monitor analysis piece took on some of these questions in “Driverless Cars: Good for the Planet?” Both sides of the argument are presented – with points made about autonomous vehicles encouraging additional driving for passengers who get to do other things besides drive; public transportation could lose support if people get used to driverless cars to fulfill their intentions formerly met by bus and train rides. On the flip side, the environmental gains that are likely to come from autonomous vehicles include more efficient driving removing all of the constant accelerating and braking that drivers shouldn’t be doing.

Vehicle-to-vehicle (V2V) technologies will play an important role in autonomous transportation as vehicles communicate with each other. A car approaching an intersection will be able to intelligently coordinate with other cars – avoiding collisions and less time and fuel wasted stuck in traffic or missing the traffic green light. That applies to highway routes driven and off-ramps, where V2V technology will communicate and reroute cars away from collisions points, highway construction, or storm after effects that usually keep drivers stuck in traffic for hours – emitting carbon and wasting fuel.

“Platooning” is being tested in Germany and Australia – where heavy duty commercial trucks carry additional cargo trailers or lead a few cars. Volvo Trucks has participated in the Safe Road Trains for the Environment (SARTRE) in Germany, a European Commission-funded project. It’s a tested concept where several vehicles are electronically linked together in a “road train,” with only the lead driver in active control – many times a Volvo truck driver.

Many fleet managers are exploring the possibilities of autonomous vehicles in the long run. For now, using carsharing services is moving them in that direction – whether that be within their own fleet vehicles or outsourcing it to providers like Zipcar and Car2Go. They’re finding they need less cars than they used to; autonomous vehicles will increase the efficiency benefits of carsharing programs through lower operating cost per mile, better fuel economy, and reduced wear and tear on brake pads.

The city of San Francisco sees the connection between carsharing and reducing greenhouse gas emissions. The city’s Board of Supervisors may approve a proposal that will reduce the city’s 1,500-vehicle fleet 25% every three years; the fleet will be right-sized within 12 years following this plan. San Francisco will use carsharing services such as Zipcar or City Car Share to implement the law. That follows behind similar policies enacted in the cities of New York, Chicago, Houston, and Indianapolis. Many of the carsharing services are using electric vehicles (EVs) in their fleets. Navigant Research predicts that EVs will play a significant role in the growth of carsharing services.

This Week’s Top 10: Tesla facing possible opposition on placing Gigafactory in Nevada, Nissan Leaf breaks its own sales record in August

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…….

Tesla Motors will soon find out whether it’s deal to set up its Gigafactory in Reno, Nev., will pass through the state legislature – and there could be a wave of opposition. The factory would be impressive – powered by renewable energy and expected to produce up to 500,000 lithium batteries annually, and the Gigafactory will cost $5 billion to build. The challenge is that Nevada Governor Brian Sandoval needs legislative approval for the $1.25 billion package of tax breaks needed to lure Tesla into the state. Speaker of the Assembly Rep. Marilyn Kirkpatrick said she did not know whether or not the deal will pass at a special session next week. Legislators have questions, Kirkpatrick said. The deal will need support of Democrats from the Las Vegas area that are skeptical of the plan, according to a media report. They are leaning toward voting for the plan but have questions needing to be answered. Established business groups might oppose the tax breaks due to how they’ll affect other companies in the state; car dealers may also oppose the Gigafactory as part of their fight to keep Tesla retail locations out of the state. There’s a lot at stake here – “This factory is very important to the future of Tesla — without it we can’t do the mass-market car,” Musk said at a press conference with Nevada Governor Brian Sandoval in Carson City, Nevada. As for other Tesla news……. Tesla CEO Elon Musk says his company may have another “significant” joint project in two or three years with Toyota, and it would be at higher volumes than its recently ended Toyota RAV4 EV alliance…… Musk reiterated his pledge to bring a partially self-driving car to market in three years; it will be developed in-house using sensors and components from suppliers. He thinks all Tesla cars will someday be self-driving……. Tesla is arguing against a complaint filed against it by Georgia dealerships with the Georgia Department of Revenue last week. Dealers say Tesla is breaking the state rules which limit non-dealers to selling fewer than 150 of its electric cars directly to customers each year.
The Nissan Leaf broke its own sales record in August – selling 3,186 units and marking its 18^th consecutive month of year-over-year sales increases. In the nearly four years that the electric car has been on the market, it’s sold more than 61,000 units. The Chevrolet Volt came it at 2,511 sold, its best performance month since a year ago. A new 2016 Volt will be introduced in January; and nearly 67,700 units have been sold since its launch in December 2010. Sales of the Tesla Model S go unreported, but it was estimated to be about 1,200 units sold in August. BMW saw sales of its BMW i3 leap from less than 400 units in the three previous months up to 1,025 in August, according to industry and analyst reports.
Growth in the heavy-duty natural gas truck market was underemphasized in the Wall Street Journal, according to natural gas vehicle (NGV) leaders. The market for these trucks is growing at an annual rate of about 20%, which is “extraordinary,” says NGVAmerica president Rich Kolodziej. Ron Eickelman, president of Agility Fuel Systems and chair of NGVAmerica, says demand for his firms compressed natural gas fuel systems has been very strong. NGV leaders disagree with the premise of the WSJ article that it takes four years for payback to be seen from the fuel-savings; operators can see that payback in as little as two years, say leaders at NGV organizations. In other NGV news, Ryder System, Inc., announced that it’s partnering with Anheuser-Busch to bring in 66 CNG diesel-tractor trucks to its fleet. GE Capital Fleet Services has made an agreement with VNG to support expansion of the CNG refueling infrastructure for light-duty fleet vehicles.
Leading ridesharing company Uber has been banned from Germany until a hearing this year by a court in Frankfurt. Uber faces fines up to 250,000 euros (about $330,000) and its local employees could be jailed up to six months if the temporary injunction is violated. In April, a Brussels, Belgium-based court imposed a 10,000 euro fine on Uber drivers for every ride they accept in the city. Uber’s fight continues with taxis and governments.
Daimler distanced itself from Uber as it announced acquisitions of two smartphone applications when acquiring Mytaxi and Ridescout. Daimler said these deals will not disrupt the taxi industry, a large client of its Mercedes-Benz cars. Through its Moovel GmbH, Daimler bought the Mytaxi app, which allows customers to hail a cab and other functions using a smartphone. RideScount helps customers find the best way of reaching a destination through both public and private transportation options, along with carsharing services. Daimler has been in the carsharing business through its car2go subsidiary.
A Volkswagen Group executive thinks that hydrogen fuel cell vehicles won’t be doing well beyond Japan’s borders. Government subsidies of as much as three million yen ($28,500) by the Japanese government for hydrogen-powered vehicles will probably be too high for other countries to match; and refueling will be impractical even in Japan as handling hydrogen is challenging and building the infrastructure is costly, says Shigeru Shoji, Volkswagen Group’s Japan president.
A $5,000 rebate on purchasing a propane autogas vehicle or converting an existing vehicle to propane are available to New York residents, including fleet users. New York Propane Gas Association is making the rebate available to one vehicle per fleet, and the incentive is available through the end of this year.
The United States Advanced Battery Consortium LLC awarded $667,452 in an advanced battery technology development contract for next-generation plug-in hybrid electric vehicle applications to Xerion Advanced Battery Corporation of Westminster, Colo. The consortium is a collaborative organization operated by Chrysler, Ford, and General Motors.The competitively bid contract award is co-funded by the US Department of Energy and includes a 50% Xerion cost-share.
Average fuel economy for light-duty vehicles sold in the US in August reached an all-time high, according to a University of Michigan report. Those new vehicles reached 25.8 mpg, up from 25.6 in July and 24.9 a year ago.
Oberon Fuels had its dimethyl ether (DME) biogas fuel approved by the US Environmental Protection Agency (EPA) for use in commercial vehicle applications. Oberon Fuels secured approval under the Renewable Fuel Standard and is now eligible for several renewable identification numbers (RINs) under the cellulosic and advanced categories. EPA says that Oberon’s DME has a 68% reduction in greenhouse gases compared to traditional diesel fuel. Oberon Fuels is working with Volvo Trucks and Mack Trucks to bring DME to Volvo and Mack trucks.

Suggested theme for marketing success in clean transportation: Pragmatism

Pragmatism: (noun)

a reasonable and logical way of doing things or of thinking about problems that is based on dealing with specific situations instead of on ideas and theories

–Merriam-Webster

Advanced, alternative fuel vehicles face the challenges of any new technology – overcoming ignorance and resistance to change. The past four years have witnessed positive, impressive numbers in US sales of electric vehicles (EVs) and breakthroughs in new vehicles and fueling infrastructure for natural gas, propane, and hydrogen. It is going to take a while to see sales increase substantially, and charging and alternative fueling stations to become commonplace.

All that being said, there are green vehicles seeing sales growth; and solid steps are being taken in government and corporate policies embracing alternative fuels and clean transportation. Fleet managers are bringing in more alternative fuel vehicles and doing the numbers on lifecycle cost comparisons; consumers are looking into deals on EVs, or trying out their first diesel, hybrid, or natural gas vehicles (NGVs). Corporate sustainability programs are including clean transportation targets more often lately. They seem to value clean transportation meeting a few of their goals – reducing emissions and petroleum consumption, offering more energy independence, and contributing to domestic economic gains. They do see it as a pragmatic alternative.

What seems to be working? Pragmatic messages seem to be clicking with shoppers and buyers:

You get to drive by gas stations while smiling big – the original Nissan Leaf and Chevrolet Volt ads played on these messages, and you can still see it in TV commercials for new EVs.
You could also pull up into a gas station and have more options – buying less fuel, choosing biodiesel or ethanol, and eventually even more – hydrogen, methanol, natural gas, and maybe even an EV fast charger; as mentioned in the upcoming film, “Pump.”
Lifecycle ownership cost savings – this big question is still being worked out. What does it cost for a fleet to convert over to natural gas or propane compared to gasoline and diesel engine vehicles? How long until the acquisition cost evens out? There’s always the question of how long incentives will last, how many charging and fueling stations there are – or the cost of having one installed on your property. But it is a tipping point that’s taken seriously in electric, CNG, propane, hybrid, and flex-fuel vehicle options for fleets and consumers. Hydrogen fuel cell vehicles have a big challenge here, but their pricing is starting to come down; and per gallon equivalent pricing on hydrogen will be released in the near future by government agencies. Rising gasoline prices always help tip the scale to green vehicle, but the prices are probably not going to be spiking up substantially anytime soon. Finding other analytics and messages makes a lot of sense.
Reducing greenhouse gas/carbon emissions – that’s becoming the widely accepted global tracking standard, whether or not the policy is based on the climate change/global warming issue or if its primarily a logical, accepted standard. It’s becoming the broad standard that encapsulates air pollution, smog, carbon, and other pollutants. The advantage coming from GHG/carbon emissions as the standard is that you can reduce your emissions several ways – purchasing EVs, natural gas, or other alternative fuel vehicles; buying more fuel efficient vehicles and hybrids; driving less and using carsharing and ridesharing services; using stop-start technologies and reducing driver idle time; or some combination of methods. That’s good news for those concerned about emissions, or who are being directed by their employers to reduce vehicle emissions.
Connectivity to mobile devices, dashboards and WiFi, and to “the internet of things.” A good example being Android Auto, which offers a simple and intuitive interface, integrated steering wheel controls, and powerful new voice actions designed to minimize distraction and keep the driver focused on the road. Automakers and technology suppliers are integrating safety systems that are considered a stepping stone toward autonomous vehicles. It also brings more simplicity to drivers. They can find charging stations, NGV stations, schedule maintenance, and use carsharing and ridesharing services – all from their mobile device integrated into their dashboard.
Economic development and job creation. If you’re looking for perspectives on this issue, ask a venture capital executive; or a good number of automotive executives, military officers; scientists, college students, and young professionals. Many people see clean transportation as a pragmatic, win-win scenario, meeting economic and environmental targets. There are significant job announcements, as reported by Environmental Entrepreneurs. Another sustainability organization, Ceres, has always supported federal mpg standards as a vital catalyst for reducing fuel consumption and emissions and creating more jobs.
The US has a strong platform for capitalizing on technology innovations – with examples being Tesla Motors and its Model S and the “Gigafactory;” General Motors research centers, Ford’s personal mobility campaign; automaker sustainability and water conservation campaigns, such as Ford’s Oakville Assembly plant sending zero waste to landfill; and EVs, hybrids, NGVs, propane, hydrogen, and advanced biofuels seeing increasing signs of acceptance and support.

Cellulosic ethanol plant brings back hope for biofuels supporters

The grand opening of one of the world’s first cellulosic ethanol production facilities has given hope to the biofuels industry and to supporters of biofuels as an alternative to oil. The biofuels industry faces imminent changes from the US Environmental Protection Agency (EPA) on the Renewable Fuel Standard that will reduce production of ethanol and advanced biofuels. The EPA recently sent its revised rules to the White House for review and approval. A new advanced biofuels plant in Iowa shows an industry weathering diminishing government and public support, while also taking steps forward with investors and regional markets.

POET-DSM Advanced Biofuels, LLC, a joint venture between Royal DSM and POET, LLC, on Sept. 3 hosted the grand opening of “Project LIBERTY.” The plant converts baled corn cobs, leaves, husk, and stalk into renewable fuel at the cellulosic ethanol facility in Emmetsburg, Iowa. Those present at the ribbon cutting included His Majesty Willem-Alexander, King of the Netherlands, US Secretary of Agriculture Tom Vilsack, Iowa Governor Terry Branstad, and thousands of guests.

At full capacity, the plant will convert 770 tons of biomass per day to produce ethanol at a rate of 20 million gallons per year, later ramping up to 25 million gallons per year. Fuel from Project LIBERTY represents a greenhouse gas reduction of 85% to 95% over gasoline. It will consume 285,000 tons of biomass annually from a 45-mile radius of the plant. The plant employs more than 50 people directly, and biomass harvesting is creating another 200 indirect jobs in the community. Hundreds of people were involved in the construction of the plant.

“Some have called cellulosic ethanol a `fantasy fuel,` but today it becomes a reality,” said Jeff Broin, POET founder and executive chairman. “With access now to new sources for energy, Project LIBERTY can be the first step in transforming our economy, our environment and our national security.”

POET considers the cellulosic ethanol facility to be a huge step forward in the wider adoption of biofuels, both in North America and around the world. “It is also a victory for the Renewable Fuel Standard (RFS), which prompted increased investment into advanced biofuels that accelerated development of this new technology,” according to the press release.

The cellulosic ethanol plant isn’t the only biofuels investment seeing significant investment support lately. The challenges are there for regaining support for biofuels in the US. Freedonia has addressed the economic issues in its latest World Biofuels Report – which expects global biofuels to top 115 million metric tons in 2018, and will be up from 96.30 in 2013. As for the US, Freedonia has a less optimistic vision: “Healthy growth will be experienced in all regions with the exception of North America, where conflicting government regulations and waning public support in the United States — the world’s largest market for biofuels — will limit advances.”

“Hands off the Steering Wheel” white paper on driverless cars launched

Driverless cars – also known as self-driving cars and autonomous vehicles – have recently become a heated topic in the US. In the wake of Google’s launch of a test project featuring its own self-driving pods, debate has gone viral on the internet. There’s fear of privacy being violated, hackers taking over control of the car, and loss of personal freedom behind the wheel. On the other side, there’s been much enthusiasm for the technology solving huge problems coming from car crashes and worsening traffic congestion and gridlock.

The polarized debate calls up two images – computerized artificial intelligence system HAL 9000 becoming an antagonist murderously attempting to take control of the spaceship in “2001: A Space Odyssey;” and there’s KITT, a black Pontiac Firebird Trans Am that safely transports do-good action hero Michael Knight in “Knight Rider.” A new white paper on the subject, “Hands off the Steering Wheel – The state of autonomous vehicle government policies, testing projects – and when these vehicles will likely make it to roads,” explores these polarizing issues and what to expect in coming years.

Since Google’s announcement in May of this year, there’s been a wave of debate and analysis over this ground-breaking technology and when it’s likely to show up in large numbers on our roads. Beyond Google, Nissan and other car and truck makers are making bold statements about it, and studies have been released this summer sharing perspectives from consumers and transportation and technology experts. Highlights of this white paper include details on states that have adopted autonomous vehicle testing programs and policies, along with where it stands in the US government and other nations; and the role Google has played in self-driving cars being tested in states, and the company potentially entering the automotive business with its own car. General Motors has played a key role in the history of autonomous vehicles dating back to its 1956 short movie, “Key to the Future.” Technology suppliers like Cisco and Continental are also playing an important role in developing these autonomous vehicle systems.

“Hands off the Steering Wheel” also presents the latest in academic, engineering, and policy studies on the subject matter from organizations including IEEE, SAE, and Navigant Research. Public opinion trends are explored that will likely influence autonomous vehicle resistance and support in the near future.

The white paper was written by Jon LeSage, editor and publisher of Green Auto Market, and media consultant at LeSage Consulting. The consulting practice creates content, marketing communications, and market intelligence in clean transportation, advanced and autonomous vehicles, and urban mobility. Green Auto Market delves into these issues on a weekly basis.

“Hands off the Steering Wheel” digs deep into the subject matter that readers are very passionate and opinionated about – and need to stay current and well informed on where it all stands. While the characters of HAL 9000 and KITT come from science fiction, the topic of self-driving, autonomous vehicles has lately been stirring more passionate comments on social media, blogs, and editorial think pieces than anything else seen for years in the automotive and transportation space. Click here to read more about the white paper.

This Week’s Top 10: California Gov. Jerry Brown gets three EV bills sent to his desk, Natural gas trucks behind diesel with fleets

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…….

California Gov. Jerry Brown has three bills to sign before the end of September that will affect electric vehicles (EVs) and the charging infrastructure. Wealthy people over a certain income level would have their $2,500 state EV rebate phased out; another bill would increase the number of carpool-lane permits for solo drivers using plug-in hybrid cars. The third bill addresses multi-unit dwelling chargers; the bill would prohibit landlords from stopping renters from installing electric car chargers as long as the tenant pays for installation. California has been the leading market for EV sales in the US – about one third of EVs sold in America are sold in California. The rebates have been a key incentive for people in California, along with carpool lane access stickers. California’s rebates of up to $2,500 for EV buyers have been instrumental in the state hitting its target of having 1.5 million zero emission vehicles on its roads by 2025. Changing its incentive program comes from pressure felt in Sacramento that the rebates are just a windfall for the wealthy. While there’s a strong market for luxury EVs like the Tesla Model S, it’s a limited niche market; consumers at average income levels will need to see state and federal incentives, and have been responding well to automaker incentives like discounts and attractive leasing deals.
Natural gas vehicles are not winning the natural gas vs. diesel fight in commercial vehicles, according to a Wall Street Journal feature. About 10,480 natural gas heavy-duty trucks should be sold this year in North America, down from the 16,000 initial forecast. Fleets are spending about $150,000 for heavy-duty trucks and an additional $50,000 for natural gas versions; that’s taking about four years to pay off. Saving $1.60 to $1.70 for the gas equivalent of diesel is appealing, but the acquisition cost differential and scarcity of NGV fueling stations in some parts of the country are tipping the scale toward diesel. Diesel fuel and diesel-powered trucks are also gaining more interest and credibility with fleets, as well.
Tesla Motors’ stock price reached a record level Friday after closing a charging station network deal in China. The shares closed at $269.70, up 2.2%, after reaching a high point of $271.40 during the day. Tesla began selling its Model S electric sedan in China in April, and just signed an agreement with China United Networks Communications Corp., the second-largest mobile phone company in China. The companies will build 400 charging stations in 120 cities at China Unicom outlets; and 20 Supercharger fast-charger stations. Both Tesla and BMW are now adding public chargers in China.
Kia is going with open-standards for DC fast-chargers as it rolls out its 2015 Kia Soul EV at select Kia dealerships on the west coast. Greenlots, a global provider of open standards-based technology solutions for electric vehicle (EV) networks, is partnering with Kia Motors America and ABB, a global leader in power and automation technologies, to offer these DC fast-chargers. The partnership illustrates the increasing role interoperability among EV charging technology networks plays in meeting pricing flexibility demands from automakers and providing a seamless experience for EV owners, Greenlots says.
The Ram 1500 EcoDiesel scored big, winning Consumer Reports’ top spot among full-size light-duty pickups and beating out Ford, GM, Toyota, and Nissan. The Ram 1500 EcoDiesel earned high marks for best-in-class fuel economy at 20 mpg city and 27 mpg highway; and for its “whisper quiet” interior.
Owners of the 2012 Fisker Karma will be getting something they need from Fisker’s new owner – supplies of spare parts. Fisker Automotive had built about 3,000 Karmas when it stopped production in July 2012; parent company Wanxiang America and Fisker management is negotiating with over 300 suppliers. Most of these supplier relationships have been set up, and Fisker will have access to needed parts.
Sakti3, a Michigan-based battery technology company, says that it will be able to double the energy density for lithium-ion batteries used in electric vehicles. Sakti3’s co-founder and CEO Ann Marie Sastry says the company’s solid-state lithium cells have reached 1,143 Watt-hours per liter; that would drive your electric car about 300 miles on a charge and would reduce the battery cost, too.
Volvo will roll out a first-of-its-kind vehicle – a plug-in electric vehicle that can seat seven passengers. The 2016 Volvo XC90 will offer both a seven-seat options and the availability of a twin engine plug-in hybrid model. The SUV will also have a weight savings of 250 pounds, which will increase its fuel economy.
China will offer tax breaks on purchases of electric vehicles predominantly made by Chinese automakers. The government posted a list of 17 vehicles from 11 automakers, including one model each from the China joint ventures of Nissan, General Motors, and Daimler. It’s the latest policy measure to boost green vehicles in the world’s biggest auto market, part of its strategy to deal with rising concern over air pollution.
Toyota’s “Choices” TV commercial for its Prius Plug-In Hybrid shows a father facing a tough choice in his garage. Does he unplug the fish tank or the refrigerator in the garage so he can charge his Prius Plug-In Hybrid? His son shakes his head no as his father prepares to unplug the fish tank and risk the pet fish’s life. “It’s also a hybrid,” the voice over says as the father puts away his power chord and decides to go without a charge.

“Hands off the Steering Wheel” white paper on driverless cars coming out this week

Driverless cars – also known as self-driving cars and autonomous vehicles – have recently become a heated topic in the US. In the wake of Google’s launch of a test project featuring its own self-driving pods, debate has gone viral on the internet. There’s fear of privacy being violated, hackers taking over control of the car, and loss of personal freedom behind the wheel. On the other side, there’s been much enthusiasm for the technology solving huge problems coming from car crashes and worsening traffic congestion and gridlock. A new white paper on the subject, “Hands off the Steering Wheel –The state of autonomous vehicle government policies, testing projects – and when these vehicles will likely make it to roads,” explores these polarizing issues and what to expect in coming years.

The white paper was written by Jon LeSage, editor and publisher of Green Auto Market, and media consultant at LeSage Consulting. Since Google’s announcement in May of this year, there’s been a wave of debate and analysis over this ground-breaking technology and when it’s likely to show up in large numbers on our roads. Beyond Google, Nissan and other car and truck makers are making bold statements about it, and studies have been released this summer sharing perspectives from consumers and transportation and technology experts. Highlights of this white paper include details on states that have adopted autonomous vehicle testing programs and policies, along with where it stands in the US government and other nations; and the role Google has played in self-driving cars being tested in states, and the company potentially entering the automotive business with its own car. General Motors has played a key role in the history of autonomous vehicles dating back to its 1956 short movie, “Key to the Future.” Technology suppliers like Cisco and Continental are also playing an important role in developing these autonomous vehicle systems.

The topic of self-driving, autonomous vehicles has lately been stirring more passionate comments on social media, blogs, and editorial think pieces than anything else seen for years in the automotive and transportation space. The white paper will be released on Thursday of this week, and an announcement will go out to Green Auto Market readers.

Solar power, Tesla and GM drive clean energy and transportation job growth in second quarter

Solar power and electrified transportation were key drivers of US job growth in the second quarter of 2014, according to a report from Environmental Entrepreneurs (E2). Arizona topped the list of states with the largest number of announced jobs in clean energy. Solar Wind Energy Inc. expects to hire at least 350 permanent jobs for a new project in San Luis, AZ. California came in at No. 2 on the list, driven by Tesla Motors announcing 500 new jobs and the utility-scale solar industry making its share of announcements. Michigan placed third on the ranking, with General Motors Corp. expected to add as many as 1,400 jobs producing advanced battery technologies.

E2, a nonprofit, nonpartisan business group, reported that more than 12,500 clean energy and clean transportation jobs were announced in the second quarter – more than double the number of jobs announced in the first quarter of this year. The remaining states in the top 10 for announced clean energy and clean transportation jobs in the second quarter were: Utah (4), Massachusetts (5), New York (6), Nevada (7), New Mexico (8), North Dakota (9), and North Carolina (10).

During a media conference call on Thursday, two factors were discussed driving economic growth in clean energy and transportation. One of these is more states adopting renewable portfolio standards, which are policies designed to increase generation of electricity from renewable resources. Another factor has been greater interest and support for clean energy in venture capital markets such as in Silicon Valley and San Francisco. Nancy Floyd, managing director of San Francisco-based venture capital firm Nth Power, and John Cheney, founder of San Francisco-based Silverado Power, both acknowledged that cleantech, clean transportation, and alternative fuels are gaining traction with investors; not long ago, mobile devices and social media had a lot more funding.

California’s AB 32, the Global Warming Solutions Act of 2006, is also helping drive corporate decisions. Transportation fuels will be included in AB 32 beginning in January 2015, and E2 expects to see more job announcements in the clean vehicles sector. Economic gains from AB 32 are being seen in the state.

“I’ve had companies we invest in open offices or relocate their entire companies to California, specifically due to AB 32,” Floyd said. Cheney shares that perspective: “What AB 32 and other good policies do is create certainty that there will be demand for clean energy and clean cars in the future,” he said.

Washington, DC, has seen mixed signals for support on clean energy policies from Congress. However, there has been new confidence about future clean energy growth tied to the recently announced federal Clean Power Plan that’s designed to cut carbon pollution and increase clean energy and energy efficiency, according to E2. You can review the report and see how clean energy sectors break out by state at E2’s Clean Energy Works for Us site.

This Week’s Top 10: EPA sends final 2014 biofuels targets to White House, LG Chem adds Volkswagen to its battery client list

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…….

The US Environmental Protection Agency (EPA) sent its final 2014 biofuels targets to the White House’s Office of Management and Budget on Friday for review and sign-off. It’s expected to take a minimum of 30 days before the decision is announced. The Obama administration will be deluged with lobbying from biofuels industry advocates asking for changes to the EPA’s recommended cutbacks, and from oil industry groups who oppose the Renewable Fuel Standard but want EPA to stand firm on proposed cuts to targets. The EPA issued its draft 2014 rule in November reducing federal requirements for use of ethanol and biodiesel at US fueling stations. Biofuel producers have been warning that the EPA proposal would hurt the industry with investments likely to dry up.
LG Chem added Volkswagen Group to its client list along with General Motors. The Korean battery maker has secured a supply contract with Volkswagen’s Audi brand, supplying cells to Audi for Audi’s next-generation plug-in hybrid electric vehicles. Audi shares several platforms with VW, and its’ expected LG Chem will supply cells to their plug-in vehicles as well. Audi says it will be launching its 2016 Audi A3 e-tron Sportback next year, a plug-in hybrid. LG Chem also supplies batteries to Ford (for the Focus Electric), the Hyundai and Kia brands, and to Renault.
Ridesharing market leader Uber has hired President Barack Obama’s 2008 campaign manager, David Plouffe, as its senior vice president of policy and strategy. Uber is fighting a war with the taxi industry in several states, and with airport authorities, as it attempts to roll out its ridesharing service for customers who use their mobile device to book a trip. Taxi drivers and taxi companies are furious over Uber drivers going outside the taxi regulatory structure – and the steep taxi driver licensing fees. Plouffe plans on running Uber’s communication efforts more like a presidential race, attempting to woo consumers and regulators alike with the company’s rapid-growth strategy.
A123 Systems has a new identity in the marketplace, according to new CEO Jason Forcier – a supplier of low-voltage batteries instead of battery packs for the Fisker Karma and other plug-in electric vehicles. Low-voltage batteries power portions of a vehicle’s operations including starting and regenerative braking. Competitors include Johnson Controls and LG Chem. A123 recently hired former Johnson Controls executive Patrick Hurley as its chief technology officer. Hurley previously served as executive director for global core engineering for Johnson Control’s power solutions business unit.
Renault-Nissan and Mitsubishi are working together to bring a small electric vehicle to the Japanese market. The first EV model from the joint venture should be coming out in fiscal year 2016 and will potentially be priced at 1.5 million yen (about $14,700).
European Union (EU) regulators are taking actions similar to the US Environmental Protection Agency on vehicle mileage ratings. The EU would prefer to have vehicle fuel consumption tested on roads rather than in laboratories to keep automakers from exaggerating MPG ratings and emissions credentials. An EU official, talking off the record, said a proposal on “a new real-world testing method” was expected by the end of this year; it would need to be endorsed ty EU member nations.
Ford is developing a Green Zone system that will bring more energy efficiency to Ford’s hybrid, plug-in hybrid, and battery electric vehicles. It could also help motorists avoid tolls and penalties as more cities are now enacting restrictions on driving conventional internal combustion engine vehicles in inner cities. Green Zone may also be used to make Ford vehicles more electricity efficient on non-engine power functions like headlights and transmissions. Ford is also working on introducing a new hybrid model in late 2018 that will compete directly with the top-selling hybrid, the Toyota Prius. It will be Ford’s first dedicated hybrid model.
How many days does it take to install six Supercharger stations? Eleven days, according to a report in Teslarati on installing its fast-charging stations in Goodland, Kansas, including at a Holiday Inn Express hotel – where the company had to dig trenches so that underground power conduits can be laid out by the local utility. Tesla installed its first Supercharger site in 2012, and has been steadily expanding its network for Model S owners to take long-distance trips.
Disney World’s Epcot theme park in Orlando is installing electric vehicle chargers for its guests. That follows in the footsteps of the Disneyland Resort in Anaheim, Calif., where 20 charging ports were installed on the first floor of the Mickey & Friends parking structure for guests and another 10 were installed for cast members. (Editor’s note: About three years ago, I called Disneyland’s sustainability officer and requested that the Autopia race car ride get electric cars instead of the smelly and loud gasoline-engine cars. He thought it was a good idea but doubted it would be carried out, as other sustainability projects were high priority.)
Propane Education & Research Council has a new logo and brand identity for propane, PROPANE Clean American Energy. The logo highlights propane as an increasingly American-made alternative fuel at a time when US propane production from natural gas liquids is at record levels, according to the PERC. PERC President and CEO Roy Willis says that the change also emphasizes recent investments by the propane industry in new technologies, including propane-powered vehicles, school buses, mowers, irrigation engines, and other equipment.