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This Week’s Top 10: Leaf still No. 1 in plug-in sales, Tesla Model S drivers wreak havoc in Los Angeles

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. The Nissan Leaf continues to lead plug-in sales, delivering 2,347 units during June. While that’s 770 units lower than May’s best-ever Leaf sale volume, it set a record for June and was up 5.5% over a year ago. That makes for 16 straight months of record sales for the Leaf and deliveries up almost one third over the first half of 2013. The Chevrolet Volt saw an increase in sales in June versus May – 1,777 units sold versus 1,684. That was down from its best-ever June sales. Volt sales are stabilizing, but they are down about a third from the first half of 2013. Another interesting trend to watch is that the Ford Fusion Energi plug-in hybrid beat the Volt for the first time in monthly sales — 1,939 deliveries beat the Volt’s 1,777 units sold. Tesla doesn’t report its monthly sales, but it’s estimated to have sold about 1,200 Model S units in June. That’s much more than luxury electric car competitor BMW and its i3, which closed the month with 358 units sold.

2. Two drivers wreaked havoc in Los Angeles during separate incidents on July 4^th, with both of them driving a Tesla Model S. A Tesla driver hit the back end of a Toyota Corolla at 10:35 pm on Highway 14 in Palmdale; three passengers in the Corolla were killed and two seriously injured while the Tesla driver suffered minor injuries and was released from the scene late Friday. One person was injured and is in critical condition after another crash on Friday morning in West Hollywood; the injured person may have been an unidentified driver who stole the Model S. The car had been stolen early Friday morning, most likely from the Tesla service center on the 5800 block of Centinela Ave. The driver led police officers on a wild chase, getting near 100 mph and eventually crashing in West Hollywood. The Model S collided with a light pole that split the car in half. The front half of the car caught fire after the battery pack was ignited. Prior to the crash, police officers chasing the Tesla crashed their police car near La Brea Ave. The two police officers were treated for minor injuries. Several other drivers were hurt in the Tesla crash, although it is still unclear how many.

3. Fleet managers are gaining more experience with electric vehicles and are making the business use case for acquiring them, says Morgan Davis of Electric Power Research Institute in this segment of our recent video interview. Check out the Plug-In 2014 website for more information on for the conference taking place later this month – July 28-30 in San Jose, Calif.

4. A webinar is being offered to learn about an important area for alternative fuels – emergency planning for communities hit with disasters. The National Association of State Energy Officials (NASEO) is presenting a webinar on July 17th at 4:00 pm eastern time to explore the benefits and opportunities of integrating alternative fuel vehicles in energy assurance planning. Panelists Linda Bluestein, National Clean Cities Director for the US Dept. of Energy, and Jeff Pillon, Energy Security Director for NASEO, will help participants examine strategies to promote information sharing and stakeholder coordination among state energy offices and Clean Cities coordinators. To register for this webinar, visit this site.

5. Toyota Motor Corp. has requested a two-year exemption from a rule governing electric cars to clear the way for the company to sell its upcoming hydrogen fuel-cell vehicle in a petition to the National Highway Traffic Safety Administration. Toyota says that the federal rule, FMVSS No. 305, would render its vehicle inoperable. The rule requires automakers to isolate high-voltage parts in electric cars in the event of a crash. The company’s new fuel-cell car doesn’t fully meet this requirement because a mechanism for protecting against electrical shocks in lower-speed crashes would render its vehicle inoperable, Toyota said. Toyota has taken another approach to insulating the car’s high-voltage cables and surrounding components, and would like more time to work this out with NHTSA.

6. The Tesla Model S has taken yet another award – this time winning the annual Total Quality Index study issued by market-research firm Strategic Vision. The study is based on responses from 38,361 vehicle owners and “encompasses positive and negative product experiences including reliability, actual problems, driving excitement and other measures.” Earlier this year, Strategic Vision ranked the Model S the single “most-loved car” in the US. The Nissan Leaf also ranked high on that poll.

7. Tesla Motors heard some good news from the Pennsylvania legislature – the automaker has been given more approval in the state to directly sell its cars to consumers even though dealers have been objecting. Tesla will be able toincrease the number of stores in Pennsylvania and add more service centers. The bill that was already approved by the state senate would allow for as many as five retails stores in the state; it still needs to be signed into law by Gov. Tom Corbett.

8. Electric buses and trucks have secured more private funding. Proterra, a builder of electric municipal buses, has raised $30 million in fourth-round venture capital funding that was co-led by KPCB and GM Ventures. That makes for a total of $180 million raised with another $10 million expected to close in coming weeks. Motiv Power Systems raised $7.3 million for an electric school bus. Motiv provides a power train control system that can power a truck or bus chassis with commercially available battery packs and motors.

9. Hybrid electric vehicles used in commercial vehicles just lost a supplier. Eaton is exiting the market in North America for utility trucks and parallel drives for delivery trucks; that comes from weakened market demand, especially in the US, the company said. Contributing factors include expiring government incentives, a general stabilization in diesel prices, and the rise of natural gas as a heavy duty vehicle fuel.

10. Natural gas vehicles might be selling like hotcakes in China. About 3.8 million cars, trucks and buses in China will be fueled by compressed or liquefied natural gas by 2020, according to Bloomberg New Energy Finance. China is the world’s largest energy consumer and emitter of greenhouse gases; China would nearly double the number of its natural gas vehicles by 2020 as President Xi Jinping seeks to reduce smog.

Will driverless cars, Google, DMV, and highway patrol officers control our mobility?

Driverless, autonomous vehicles have been gaining a lot of attention recently – whether that be through Google claiming it will build its own prototype autonomous vehicles before existing automakers reach that milestone; or Daimler AG announcing it will roll out a commercial truck by 2025 that will be able to steer, brake and accelerate without a human driver behind the wheel. Then there’s Cruise Automation, a startup company that says it will roll out a $10,000 aftermarket driverless device that so far is only suited to operate on Audi A4 or S4 vehicles.

So what gives? Can we expect to see lots of driverless, autonomous vehicles on our roads within the next 10 years?

As far as state legislatures are concerned, four of them have already passed bills allowing autonomous vehicles to eventually make it to their roads – Nevada, California, Florida, and Michigan, plus the District of Columbia. It’s under consideration in 11 states – Hawaii, Washington, South Dakota, Minnesota, Massachusetts, New York, New Jersey, Maryland, South Carolina, Georgia, and Louisiana. And it’s failed in seven states – New Hampshire, Texas, Oklahoma, Colorado, Arizona, Wisconsin, and Oregon.

It was fascinating to see Google initially test its driverless car technology on a converted Toyota Prius hybrid. Nissan rolled out its driverless test model in a Leaf electric car. AutoTrader.com analyst Michelle Krebs thinks that driverless cars long-term will be like hybrids and electric vehicles (EVs) – they won’t take over completely but will play a role in how automakers and government officials are looking at the future of transportation. “There are certain places this approach makes sense, such as heavy commuting cities where autonomous cars could run essentially like train cars without a track — mass transit. That makes brilliant sense. Or these cars could be programmed to handle most responsibilities on long, boring drives, including commutes. In those ways, they will extend the mobility of aging baby boomers, which is where the biggest market is, if you believe that Millennials really don’t want to drive,” Krebs told Forbes.

For those autonomous vehicles that do sell in the future, Krebs thinks they won’t be driverless only. They’ll be “cars you have the choice to drive or not drive. There are so many legal and insurance and regulatory issues, and none of them are being resolved.”

There are some big questions that need to be answered in the next decade for autonomous, driverless vehicles to take off:

If there’s a collision involving a driverless car, who will be liable? The car owner? The automaker? The state government? The insurance company? Will liability be doled out and shared by all the above?
Then there’s the American civil liberty tradition. Will “big brother” be breathing down our necks? How much personal privacy will citizens have in the future?

I estimate that driverless, autonomous passenger and commercial vehicles will make up a large share of sales in the next 25 years – up to 25% of new vehicles sold in the US. Here are a few market forces that could shape that trend:

Traffic congestion is getting worse all the time – as the “urbanization” trend goes strong and more Americans work in, and live in, cities. While mass transit and bicycling are gaining a lot of support, in the end, new vehicle sales will likely stay strong for years to come and traffic congestion will be getting worse. Driverless, autonomous vehicles seem to have the best shot at dealing with the gridlock problem. That will require an interdependent relationship between state highway officials, DMVs, highway patrols and city police departments, automakers, and technology suppliers like Google.
Commercial truck makers are exploring the option. Along with Daimler, Volvo Trucks has been testing out autonomous solutions. Volvo has participated in the Safe Road Trains for the Environment (SARTRE) 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. Big rigs could play a critical role, as they do take up a lot of space on highways and have a major impact on safety and the flow of traffic.
Cars are already going in that direction. You’ve probably noticed that with every new model year, automakers brag about offering the coolest, advanced technologies with the latest in connectivity, safety, fuel efficiency, and convenience. After recently test driving a driverless car, Rep. Larry Bucshon (R—Ind.) said it was “the next generation of cruise control.” EVs are typically considered to be part of the cool technology trend – especially the Tesla Model S. For some people, driverless cars will probably be a logical extension of where all of the technology seems to be inevitably headed.
The perks will be getting better all the time. If you ever own a driverless car, there will be several benefits gained. For one, the former-driver-now passenger could do something else besides drive the car – play video games, watch a “Breaking Bad” episode, finish up some work, read a mystery novel, or talk to their significant other over a two-way TV screen. Car commuters will become more like train passengers, feeling more relaxed and replenished when they come home. There’s also the likelihood that riding in a vehicle will become safer as more and more of them become automated and driverless. Then there’s improved fuel economy, as these automated vehicles will probably drive routes and speeds based on efficiency. Best of all, gridlock will probably recede as driverless systems place vehicles at peak performance in speeds driven, braking, lane changes, fluctuations tied to weather conditions, and other factors eliminating human error. Cars will be interconnected and can communicate with each other, making traffic smoother and safer.

Hybrids softening in used vehicle market values, according to NADA report

Not long ago, the market values of used hybrid electric vehicles, especially the Toyota Prius, were very strong. It made for optimistic trend forecasts on increasing sales of new hybrids and strong retention values – making them all the more appealing to consumer and fleets. More recently, used vehicle values have been softening on hybrids. Other green vehicles are still up in the air, such as plug-in electric vehicles and natural gas vehicles. NADA Used Car Guide has covered these topics in-depth lately.

NADA Used Car Guide’s Perspective edition for June covered the topic of used hybrids. Here are a few highlights of the report along with what’s been happening with natural gas trucks…….

Hybrid electric vehicles have been seeing decline in US new vehicle sales. Hybrid share of total new vehicle sales went from 3.1% of all new vehicle sales down to 2.9% this year. That’s the first non-production related decline since 2010, according to NADA.
The Toyota Prius is feeling it harder than the market’s overall 10% drop in hybrid sales this year. Year-to-date, Prius sales are down 19%, while deliveries of the smaller Prius C were only down by 1%.
Roles reversed between the Prius and the Toyota Corolla. In 2013, the one-year old Prius saw its retention fall to 70%, three points lower than the Corolla’s 73%; as for this year, the Corolla’s retention has been 75%, six points above the Prius’ 69%. The Prius has always been the bellwether symbol of hybrid performance – it’s likely to influence other valuation analyses for other hybrids.
Gasoline price spikes in 2008, and periods of price increases at lower levels and for shorter periods since that year, boosted sales of new hybrids and strengthened their resale values. But more recently, improvements in fuel efficiency of internal combustion engines (I CEs) and stabilized gasoline prices have softened demand for hybrids. Hybrids usually cost more than fuel efficient gasoline-engine cars, making them less appealing to many car shoppers. As automakers gear up for ambitious fuel economy targets and car shoppers remain interested in better mileage, fuel efficient cars and crossovers are doing well in new vehicle sales and used vehicle value retention.
With more natural gas trucks showing up in the commercial vehicle market, NADA’s used truck report devoted a section to resale value trending. The report said that natural gas trucks are starting to show up in the secondary, used vehicle market; however, it’s still too early to tell much about their used vehicle performance. There’s yet to be a published benchmark yet for comparing commercial truck resale values to past model years. This has influenced buyers and lenders to be more hesitant about natural gas truck acquisitions, according to the report.
Owners of hybrids, natural gas trucks, plug-ins, and other alt-fuel vehicles, will need to have a comprehensive lifecycle analysis. For consumers and fleets, the overall reasons for acquiring hybrids or other green vehicles will need to make sense compared to ICEs – even if their resale value is lower (or their residual value for lease holders, which are many times OEMs and their captive finance companies). Fuel efficiency, reduced emissions, environmental gains, and lower maintenance costs for hybrids and EVs may still be sizable enough to offset their used vehicle value retention loss.

This Week’s Top 10: Workplace charging and Plug-In 2014, Audi enters plug-in space with its A3 Sportback E-Tron

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. Workplace charging and Plug-In 2014 conference
Workplace charging has become the most discussed topic in the plug-in electric vehicle (PEV) infrastructure community. Check out comments from Electric Power Research Institute’s Morgan Davis on some of the issues that will be discussed next month at Plug-In 2014 in San Jose, Calif. Scheduled speakers from Google, SAP, Nissan, Georgia Power, and San Diego Gas & Electric, will talk about their experience with deployment of workplace charging stations. Other topics being explored at the conference include: the future of DC fast charging; PEV incentives and economics; the latest in vehicle technology; and, two pre-conference seminars: vehicle-grid integration and fleet implementation of PEVs.

2. Audi enters the plug-in space with A3 Sportback E-Tron
Audi AG began rolling out its A3 Sportback E-Tron plug-in hybrid model; it’s the first of four plug-in hybrids that will roll out and compete with BMW for luxury electric vehicle customers and its first-ever plug-in model (and eventually with Tesla as it increases its presence in Europe). The A3 Sportback E-Tron is said to get 31 miles of battery power. There is a price – it starts at 37,900 euros ($51,700) in Germany – 15,100 euros more than the base gasoline-powered version of the A3.

3. US Supreme Court stays out of California low-carbon fuel standard ruling
The US Supreme Court has decided to let stand a ruling from September by the 9th circuit court of appeals in San Francisco upholding the California low-carbon fuel standard – at the chagrin of out-of-state ethanol producers and oil companies. Ethanol producers from the Midwest challenged the fairness of the rule, as their fuel is given higher cost to buyers due to the state’s “carbon-intensity ratings.” California’s rating system is giving out-of-state producers a higher price for their credits than identical fuel being produced in California. Oil refiners also challenged the standard’s premise that the cost of transportation and processing for bringing the fuel into the state is adding more carbon. California Air Resources Board recently approved a funding of $200 million in the 2014-15 budget to encourage the deployment of more low-carbon transportation choices. Rebates of $2,500 for battery-electric vehicles and $1,500 for plug-in hybrids will be available; fuel-cell electric vehicle buyers will be eligible for $5,000 rebates.

4. Longer wait expected for next-gen Prius
Toyota Motor Corp. has decided to delay the launch of the fourth-generation Prius until December 2015 instead of next spring. The automaker hasn’t announced reasons for the delay, but those familiar with the matter confirmed the delay; one of them said Toyota engineers are trying out various configurations to improve fuel economy including adjusting the body and chassis. Production of the plug-in Prius may take even longer – sources say that will begin in October 2016. Also, more details have been announced on its first-ever hydrogen fuel cell vehicle. It will debut in the Japan market next April for around 7 million yen ($69,348); it will go on sale in the US and Europe by the summer of 2015, according the company.

5. Pennsylvania takes action on Tesla corporate stores and sets limits
The Pennsylvania Senate unanimously passed a bill last week after it was amended to cap the number of factory-owned stores allowed at five. The bill only applies to Tesla Motors and goes now to the Pennsylvania house. The original bill had no cap on the number of retail outlets that Tesla could have set up; that drew pressure on the state from the Alliance of Automobile Manufacturers, the major trade group representing 12 automakers but not Tesla.

6. SAP and Cox Enterprises add to their corporate sustainability campaigns
Software giant SAP will is taking a three-prong approach to promote sustainable driving behavior: economic incentives for employees to lease electric vehicles; bringing in a new app from Toyota and Verifone that will get them by dashboard of mobile device to determine fuel levels, get to the closest gas station, authorize electronic payments, and receive personalized coupons; and in collaboration with Volkswagen, SAP will try out a pilot project that uses SAP’s mobility and cloud services that will help drivers locate parking and nearby food offerings in urban settings. Cox Enterprises (which owns Manheim Auctions, AutoTrader, and Kelley Blue Book) is utilizing an energy storage system at its Manheim Southern California auction location in Fontana, Calif. An 18 kilowatt PowerStore system provides the location with real-time data analytics that are used to optimize efficiency and reduce electricity costs. Since 2007, the Atlanta-based company has prevented approximately 120,000 tons of carbon from entering the environment and saved more than 125 million gallons of water.

7. Greenlots will bring open standard DC fast chargers to San Francisco Airport
Greenlots will install four open standards-based DC fast chargers at the San Francisco International Airport; it’s part of a two-year pilot program supported by the California Energy Commission through the Bay Area Air Quality Management District. The chargers will be part of its “Sky” electric vehicle charging platform that utilizes Open Charge Point Protocol (OCPP), the largest open standard for charger-to-network communications. Sky “obsoletes the subscription-based model by providing drivers with flexible payment solutions including dynamic queuing and pay-by-phone,” the company said. The charging station host can mix and match charging station types, while setting pricing options: by kilowatt-hour, session, or length of time charging.

8. Minnesota starts 10% biodiesel blend
Minnesota has become the first state to require that a minimum blend of 10% biodiesel be sold in diesel fuel sold at retail fuel station pumps. Biodiesel sales are expected to jump from 40 million to 60 million gallons per year through the new Minnesota standard. That will bring three production plants in the state up to their capacity to make biodiesel that’s typically coming from soybean and other oils.

9. Ford bumps Toyota off on greenest automaker list
While Ford is getting chastised for again overstating its mileage ratings, Interbrand has been impressed enough with the global automaker to name it the world’s greenest brand. Conducted with Deloitte Consulting, the annual survey (taken long before the latest MPG controversy) gauges consumer perceptions in markets around the world, combined with data on how companies operate internally and report their environmental behavior.

10. Zap Jonway electric cars going on sale as Urbees in China
Zap Jonway, an electric vehicle manufacturer headquartered in Santa Rosa, Calif., received from SunRa (which is also called Xinri Electric Vehicle Company) a volume purchase agreement for its Urbee electric car through its subsidiary Jonway Auto for the Chinese market. It’s an agreement by SunRa to purchase 1,000 Urbees per month from Jonway Auto to sell through its distribution network in China, starting with the first shipment of 500 units from Jonway Auto’s production line in June 2014.

Earthgarage Certified Dealer program offers a way to reach greenest consumers

For those of you reaching out to consumers (and fleets) with interest in “green” issues like air quality, fuel efficiency, recycling, and protecting natural resources, you may want to consider the Earthgarage Certified Dealer program. The Shelton Group, a market research firm, has reported that the greenest consumers make up 24% of Americans. They make for a very desirable target audience – affluent, early adopters, and the most brand-loyal segment. They prefer to purchase greener products from greener companies.

Green Automotive Alliance yesterday announced the Earthgarage Certified Dealerprogram, which helps independent repair shops and tire dealers service the environmentally-savvy driver – and provides them with a good opportunity to stand out in the marketplace. It’s a win-win for customers – selecting repair shops that have joined the Earthgarage Certified Dealer program can offer consumers a lineup of aftermarket parts and services that have a lower impact on the environment and save money on routine maintenance.

The program includes branding, marketing support, and staff training. “We’re changing the way drivers think about maintaining their car,” said Bob Inzitari, Store Manager at Karl Auto Service in Greenwich, Conn., “being green also means you can save money, too.”

Customers also have the option of choosing environmentally responsible products to service their vehicles. One of them is G-Oil, the first bio-based motor oil; it’s synthetic oil with carbon emissions two-thirds lower than conventional motor oil. Another aftermarket product being offered is the micoGreen oil filter that extends oil change intervals out to 30,000 miles; it comes with a patented filter technology that makes for cleaner, longer lasting oil.

Green Automotive Alliance recently revamped its website, Earthgarage.com. The site offers pertinent information on products and resources that help motorists improve gas mileage, reduce emissions and lower the environmental impact of their vehicle.

The revised website also includes a store locator for participating Earthgarage Certified Dealers. “The Earthgarage Certified Dealer program allows independent shops to stand out in a crowded marketplace,” added Bob Leonard, CEO of Green Automotive Alliance, the marketing company that developed the program.

Check out the “Give Water a Brake!” campaign on the Earthgarage website, which seeks to ban copper in automotive brake pads. Every time a driver steps on the brake pedal while driving, copper in the form of brake dust is worn off the pads. This eventually winds up in the environment, contaminating our precious water resources. As Colors on Parade has discovered, choosing environmentally responsible standards and practices is paying off with customers and regulatory agencies such as the US Environmental Protection Agency. Regulatory compliance gets companies to save money by switching over from solvents to waterborne auto paints. Offering clean waterborne paint, and making the process more efficient than it had been in the past, is gaining a lot of traction, the company said. Consumers and fleets like to stay informed on these issues, so the Earthgarage Certified Dealer program may meet their financial goals and could be inspiring for many of them concerned about eliminating copper that wears off brake pads and damages the environment.

World Cup soccer popularity points to significant global socio-economic trend

“There are four things that will change the world – soccer balls, cell phones, TV sets, and bottled water,” Chuck Parker, publisher, Automotive Digest.

While working out of Automotive Digest’s home office in Manhattan Beach, Calif., I had to compete with the World Cup game for Chuck’s attention to get some business done last week. He loves the game, and that only happened very recently – which led to us having a conversation about the significance of soccer’s global popularity and what it could mean for the United States.

The 2014 FIFA World Cup Brazil has reached record numbers of TV viewers across the world; it has had breakthrough performance in the US and progress in Europe, Asia, and the rest of the Americas. “The United States’ 2-2 World Cup draw with Portugal is almost certainly the most-watched soccer match ever in the U.S., an emphatic confirmation of the sport’s rising popularity in a country slower to embrace it than the rest of the world,” according to CBS News.

It probably helps that the popularity of soccer has been increasing since about the 1970s – with much of that coming from more young people playing the game on high school teams and college soccer clubs; professional soccer hasn’t taken off in the US anywhere near the audience and revenue model being brought in by football, basketball, baseball, or hockey, but’s its likely to see growth in popularity in the near future.

Chuck Parker sees a strong relationship between the popularity of soccer and global social and economic trends. For anyone working today in clean transportation – and renewable energy and other cleantech industries – the World Cup points to an interesting social trend well worth paying attention to……

Soccer represents team cooperation more than fierce competition. It’s a fairly slow, low scoring game that probably bores fans of football and other fast, high-impact games. For soccer fans, it becomes hypnotizing, muck like watching a baseball pitcher face off against a great batter. Economic analysts and management professors tend to recommend adopting the cooperation model over competition as essential for economic growth and global stability.
It’s a nonviolent game with low injury rates and long-term careers for players. That’s very different than other sports popular in the US like football, hockey, cage fighting, boxing, or wrestling, where the injury rates tend to be high and the average lifespan of the player is much shorter than soccer.
The World Cup brings recognition and awareness to nations in Central and South America, along with Europe and North America – especially the hosting nation. As the economy continues globalizing, and joint ventures and mergers continue, the economic and military domination by the US and Europe is softening. Developing nations like Brazil, China, India, and others will play a leading role in technology developments and alliances. Global automakers know this well and are setting up shop and partnering with other OEMs. Hyundai-Kia and automotive supplier Continental are top sponsors of the 2014 FIFA World Cup Brazil. They’re counting on soccer fans being impressed and loyal to their brands.

This Week’s Top 10: Best and worst for Ford, NADA takes on Tesla in infomercial

by Jon LeSage, editor and publisher, Green Auto Market

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

1. Ford has gone to both ends of the spectrum
Ford saw the best and worst of it last week for its public image. The 2013 and 2014 hybrid and plug-in hybrid versions of the Fusion and C-Max, the Lincoln MKZ Hybrid, and the 2014 Fiesta, had incorrect mileage figures initially – it’s the second time Ford has dealt with incorrect MPG ratings. Around that time, Ford issued its 15^th annual Sustainability Report – with its commitment to water conservation. Ford was able to reduce per vehicle by 30% at its global facilities last year. Now, the pressure is on Ford and the US Environmental Protection Agency to institute more realistic and honest mileage rating procedures. The rollback “will force the company to abandon many of the competitive and superlative claims it has made over the past 18 months,” according to Automotive News.

2. NADA says Get the Facts about Tesla
Fierce competition by dealers is one of the reasons car buyers should go to franchised dealers – and avoid Tesla corporate stores – according to a National Automobile Dealers Association animated informational TV ad. Creating good paying local jobs and adding to the tax revenue for communities are other things traditional dealers need to be acknowledged for, according to the commercial. NADA clearly wasn’t happy to hear about the assembly in the state of New Jersey allowing Tesla to directly sell its electric luxury car directly to consumers.

3. Consumers want to see fuel efficiency improve in new vehicles
Americans are worried about gasoline prices going up and want to purchase more fuel efficient vehicles, according to the annual Consumer Federation of America survey. In the recent survey, 80% of those surveyed said that “in thinking about the next five years,” they were “concerned” about gasoline prices with 64% indicating “great” concern.

4. Tesla likely selling its technology to another automaker
Indian automaker Mahindra may be joining ranks with Daimler and Toyota by bringing in Tesla Motors patented technology to its electric vehicle offerings. Mahindra Reva Electric Vehicles, which is part of the Mahindra Group, hasn’t decided yet on how the company may tap into Tesla’s electric motor or battery pack, Mahindra Reva is very enthusiastic about the potential of accessing this technology sharing.

5. Kia enters the EV market
Kia is rolling out its first plug-in electric vehicle – the Soul EV, an electric version of its popular hatchback which has been gaining lots of attention in recent years through its hamster commercials. It’s got a 27 kWh lithium-ion battery pack and received a 131 miles per charge range figure in Europe. That could somewhere around 85 miles per charge in the US. It just started volume production and being exported globally.

6. Harley enters the world of electric bikes
Harley-Davidson (yes – the maker of huge, loud motorcycles) has entered the electric bike market. It’s leaking tidbits on its Project LiveWire. This is a test run of an electric motorcycle that will go into production in about two years from now. It will be a big risk – most of the demand for e-bikes is coming from consumers who want cheaper motorcycles and scooters; that will be a problem in China, where consumers want an inexpensive bike to move around crowded city streets.

7. Massachusetts offering rebates for electric vehicle buyers
Buyers of electric vehicles in Massachusetts will have access to rebates up to $2,500. Rebates are available on a first-come, first-served basis until all the $2 million in funding has been used up. All applications must be submitted within three months of the purchase or lease of an EV.

8. Fleets will be bringing in a lot more alternative fuel vehicles
A survey of 400 executives who oversee fleets by GE Capital reported that nearly half will be looking to add alternative fuel vehicles over the next five years to reduce fuel costs. As for now, only 4% of them operate alternative fuel vehicles. About 27% of them plan on expanding their fleets in the next year.

9. America’s Natural Gas Highway takes another step forward
Clean Energy Fuels Corp. said that its El Paso, Texas, refueling facility has opened up and plays a critical role in the natural gas fueling company’s campaign, which is called America’s Natural Gas Highway. This program enables heavy-duty LNG truck fueling along the transcontinental Interstate 10 highway between Los Angeles and Houston.

10. Navigant report digs into the future of next-gen advanced batteries
A new Navigant Research report looks at the global market for next-generation advanced batteries. The main focus of the report is on leading battery chemistry, lithium ion, and the energy storage device types that might eventually replace it; these include ultracapacitors and lithium sulfur, solid electrolyte, magnesium ion, next-generation flow, and metal-air batteries. The company forecasts that global next-generation advanced battery revenue will grow from $182.3 million in 2014 to $9.4 billion in 2023.

CleanTech OC’s clean transportation symposium showcased networking and education opportunities

Big Questions:

Will regulatory emissions standards be enacted soon enough by OEMs to improve air quality and address health hazards?
Will the sales volumes of plug-in electric vehicles, hybrids, and other alt-fuel vehicles make any real difference in a world heading for more than 100 million new vehicles sold per year?
Is the California Air Resources Board continuing to be so unrealistic about enforcing zero emission targets that “compliance cars” will be as good as it gets?
How can you get fleet managers, finance executives, and consumers to cross the bridge from short-term pocketbooks to long-term benefits and improvements?

These questions weren’t necessarily solved last week at a symposium on clean transportation – but the issues were thoroughly addressed within one afternoon. Clean Transportation: Stepping on the “Gas” was presented last Thursday by CleanTech OC at Brandman University in Irvine, Calif. The comprehensive speaker panels point to the opportunity that sustainability organizations like CleanTech OC can play in bringing stakeholders together – and in addressing the challenges faced by all cleantech sectors attempting to breakthrough barriers.

Patrick Thompson, CEO of EmiSense (a company that produces sensors for emissions monitoring) led a panel on “Drivers” in clean transportation. Dr. Wallace Walrod, chief economic advisor for Orange County Business Council, gave an update on corporate and government alliances. The hydrogen refueling infrastructure is getting a lot of focus in the county lately primarily through the FirstElement Fuel company, which is responsible for several of the refueling sites.

Dean Saito, manager on-road mobile source strategies at South Coast Air Quality Management District, discussed the challenges SCAQMD has been dealing with lately. Multiple pollutants are being analyzed now with greenhouse gas being central, but other toxic air contaminants are also being reported. Cancer risk in Southern California is a key factor for consideration, along with the US Clean Air Act and its emphasis on NOx. The inland empire and San Bernardino area continues to have the heaviest air pollution, with cargo transport contributing much of it, Saito said. Cherif Yousef, technology development manager for Southern California Gas Company, said that all of the Metro bus fleet in Los Angeles has converted over to compressed natural gas (CNG). Yousef also said that the US Department of Energy is looking at reducing its pressurized CNG tank requirement down from 3,600 pounds per square inch (psi). It could be moving toward 1,000 psi, which would be a big game changer, he said.

Khalid Simjee, site developer for NRG EV Services, moderated a panel on infrastructure. Simjee talked about the $100 million investment in the state that NRG is deploying now through its Freedom charging stations, with 200 of them becoming DC fast chargers. NRG is committed to renewables and is now the number one US utility using solar power and number three for wind power. Joe Gagliano, infrastructure business development specialist for California Fuel Cell Partnership, described the retail hydrogen stations being built in California. Hydrogen is being delivered through one of five technologies – gaseous compressed storage, liquid storage, electrolysis, steam methane reformer (SMR), and pipelines.

Harrison Clay, president of Clean Energy Renewable Fuels, talked about where the biomethane supply chain is going. Clean Energy is equipped to deliver its Redeem renewable natural gas through the US now; the challenge is that the cost is somewhere between gasoline/diesel and natural gas. Fleets are leaning toward traditional natural gas, but renewable natural gas is getting a lot of interest, Clay said. Three policies are guiding decision making – the US Renewable Fuel Standards and RIN fuel prices (which continue to be volatile); California’s Low Carbon Fuel Standard; and corporate sustainability.

Brandon O’Donnell of ChargePoint said that 80% of the charging network company’s revenue for this year is expected to come through private markets. That revenue had previously come through public funds, such as the US Department of Energy’s charging station project. ChargePoint, Blink (formerly run by ECOtality), General Electric, SemaConnect, OpConnect, and AeroVironment, have been deploying charging networks through the US and the numbers are increasing, he said. ChargePoint has installed 17,000 stations for 2,000 customers, he said.

Greg Alexander, senior project manager at E2 ManageTech (which provides environmental, health, and safety management information services), moderated a panel on fleet trends. Chuck White, director of regulatory affairs/west for Waste Management, talked about the 17 waste-to-energy plants that the company is now operating and which could power 650,000 homes. The company is striving to eventually reduce its fleet emissions 90% through renewable natural gas coming from its landfills.

Ashley White, manager of sustainability for supply chain at Kroger, said that the grocery store chain company is achieving three-year payback with liquefied natural gas (LNG) trucks. The company is getting four-year payback on hydrogen-powered fork lifts and pallet jacks; they’re being refueled within one-to-four minutes, she said. Aerodynamics also play a big part in Kroger’s sustainability campaign; testing is being done on potentially achieving 10% to 30% fuel economy improvements through aerodynamic design in its truck fleet. Bill Habibe, manager of transit technical services at Orange County Transit Authority (OCTA), said that the agency tends to be “technology neutral.” For several years, OCTA has been deploying CNG and LNG buses. Electric buses with 60 kilowatt batteries needing five hours per charge are being tried out, but cost and range are getting in the way, he said.

Marco Anderson, senior regional planner, sustainability, for Southern California Association of Government, served as moderator on a vehicles roundtable. Anderson and the panelists articulated the huge challenges automakers are going through now in California – and globally as rules of the game are shifting for OEMs. Eric Noble, founder and president of The Carlab, doesn’t think that OEMs will be able to comply with the California Air Resources Board’s zero emissions mandate. This is not new for the state, and there are always loophole credits that can be issued by CARB. Noble thinks that California does have one solution to this potential stalemate – CARB could issue OEM credits for their pilot programs that they typically run in the state through advanced technology, alternative fuel vehicles. Its allowing California to be a “petri dish” that moves the technology forward, he said.

David Peterson, regional manager at Nissan North America, said the value equation for the Nissan Leaf is making sense for consumers; sales are at 80% lease penetration, and the federal tax credit and HOV carpool lane stickers are helping. Atlanta has been the #1 sales market for the Leaf recently, which benefits from the $5,000 state tax credit in Georgia.

Toyota is testing out all the new technologies – hybrids, plug-ins, and fuel cell vehicles, giving customers options, said Logan Grizzel, who serves on Toyota’s advanced technology vehicles team. Providing all of these technologies is likely the best way to bring adoption, Grizzel said. Toyota is looking for commercialization at all levels, including the use of battery packs for energy storage in home power. “We’ll try everything out, and see what takes off,” he said.

Robert Langford, manager, plug in vehicle sales for Honda, was pleased to see the statement issued recently by the Alliance of Automobile Manufacturers on Tesla Motors’ battle with dealers in various states. Automakers and dealers need to look at selling EVs differently, and dealer staff need more training on it. Dealers are turning their sales staff over usually twice a year; training is needed to keep staff and to sell EVs as effectively as Tesla has been doing, he said.

Tedd Abramson, CEO of ZeroTruck, talked about what’s been happening in the medium-duty electric truck market. It’s helping to see New York offer its voucher program with 80% reduction on incremental costs as an incentive for fleets to convert over to EVs, he said. EV trucks are costing about 30% more than traditional trucks; fleet operators are becoming more in tune with it and see a three-and-a-half year return on investment. Municipalities are seeing the value of reducing maintenance costs when deploying EVs, and drivers are enjoying driving EV trucks, he said.

A vehicle expo was set up in the college’s parking lot. Hyundai, ZeroTruck, Nissan, Toyota, SunLine, Honda, Mercedes, and Kia displayed green vehicles – with several of them showing off HOV carpool lane stickers.

Consumers and B2B demanding accurate reporting of green products

Transparent, honest, and accurate reporting is being required in the regulatory environment – and consumers and business-to-business (B2B) are expecting as much. In the case of sustainable, green products, offerings made by manufacturers and marketers are expected to meet the claims being made. Ford Motor Co. is feeling the heat right now from its second round of inaccurate MPG listings. Ford is committed to being environmentally responsible in its water conservation and manufacturing, but the MPG reporting doesn’t look very good.

GreenBiz featured a webinar last week on the topic, “Understanding the B2B Green Marketing Landscape.” B2B companies are especially demanding – requesting unprecedented amounts of information about products’ environmental and health attributes. Joel Makower, executive editor at GreenBiz Group, moderated the panel that consisted of Scot Case, director, markets development at UL Environment; Kirsten Ritchie, principal, director of sustainable design at Gensler; and Yalmaz Siddiqui, senior director of environmental strategy at Office Depot.

UL Environment is working with clients, including companies in nanotechnologies, on validating credibility of sustainable product claims through its certification, validation, and testing services. Case said that $40 billion is being spent annually on green products in the US, and B2B could be even larger in sales. Consumers expect a lot from companies these days – a recent survey found that 65% of respondents want more trust and faith in claims being made, Case said.

Richie said that manufacturers are facing two challenges with green claims. They’re typically not adequately training their sales and distribution staff; and B2Bs and consumers need to have their questions answered by staff with understanding of how the technology works. The other problem is that manufacturers are underselling what they have to offer, Richie said. The product very likely has environmentally responsible parts, components, and manufacturing processes in place – and manufacturers are missing an obvious opportunity to inform customers. Her company, Gensler, consults on architecture, design, and planning in commercial buildings and deals with a lot of “eco-policy compliance.” LEED v4 is getting a lot of interest from clients, who need to be informed on the latest green building rating system, she said.

Paper products have become a testing lab for accurate eco-labels, Siddiqui said. Rating systems similar to outdoor-wear company Timberland’s Green Index, with its 0-to-10 rating system, are becoming common in the paper industry. Environmental Paper Network’s paper calculator is a popular measuring tool for analyzing the environmental impacts of paper and discovering the best paper choices. It comes from a coalition of more than 100 non-profit organizations aiming for sustainability in pulp and paper production, consumption, and recycling.

Big Picture: Archrivals Tesla and BMW cooperating on EV charging, What might Iraq conflict mean for gasoline prices?

Tesla Motors took more steps in sharing technologies, one of them taking place through meetings with its top competitor in the luxury electric vehicle space. Executives from Tesla and BMW met last week and discussed working together on charging stations that could fuel different types of electric cars. The automakers discussed ways to raise popularity of battery electric vehicles to overcome consumer stumbling blocks related to range anxiety, having access to enough charging stations, and how long it takes to charge them. “Both companies are strongly committed to the success of electro-mobility and discussed how to further strengthen the development of electro-mobility on an international level,” a BMW spokesman said in a statement. Tesla CEO Elon Musk said there had been talks with BMW about how to promote EV adoption, and how to make better use of Tesla’s network of charging stations. (Editor’s note: there’s also rumor that Nissan would like to join these conversations with Tesla and BMW.)

In that spirit, Musk posted a statement on the company’s blog last week that Tesla’s wall of patents has been removed: “in the spirit of the open source movement, for the advancement of electric vehicle technology. Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology.” Musk has also recently made statements about EV charger companies taking up its “Supercharger” standard for fast charging; fast chargers will need to have higher power levels and shouldn’t charge people on a per-charge basis, he said. And in other news, Tesla had a favorable comment made by the automakers’ trade group, the Alliance of Automobile Manufacturers about the state-by-state legislative battles dealers are having with Tesla over franchise laws. The legal balance is weighted too heavily toward dealers and needs to be balanced out. “At the request of local dealer groups, states set up a labyrinth of protectionist laws that make the car-buying experience difficult and costly for our customers,” said Gloria Bergquist, a spokeswoman for the Alliance of Automobile Manufacturers, which represents 12 automakers but not Tesla.

And in other clean transportation news……….

What do energy experts think about the conflict in Iraq and how it may affect gasoline prices? What’s the latest on gasoline and diesel prices, and alternative fuel prices? Check out coverage in Automotive Digest. And for charts and market analysis, subscribe to Green Auto Market – Extended Edition, and you’ll receive that June issue by email.
Municipal Equipment Maintenance Association, Long Beach Clean Cities, and CleanTech OC are hosting a symposium with the title “Clean Transportation: Stepping on The Gas.” It will look at how industry players are moving that dial further forward and the effects of that in Orange County. It’s taking place next Thursday, June 19 from 12:30 to 6:30 at Brandman University in Irvine. Here’s a link for registering. Hope to see you there.
First responder training was held at the City of Los Angeles’ General Services Yard by Rio Hondo College Professor John Frala.The group was made up of technicians, body shop technicians, training managers, supervisors, and Los Angeles parking enforcement. Three technicians in attendance were Rio Hondo Automotive Graduates working for the City of Los Angeles. The program, funded through a US Department of Energy/Clean Cities grant, also focused on second responders providing towing and storage. California Fuel Cell Partnership’s Keith Malone attended and showed the new Hyundai Tucson Fuel Cell.
Check out “New Technology Reinvents Our Wheels” – in the latest Discover Magazine, written by Green Auto Market editor Jon LeSage. As the article’s intro says, “The future of driving is all about connectivity, sleek designs, and zero emissions.”
Minnesota is the first state nationwide to require its investor-owned utilities to offer a special rate for off-peak (overnight) EV refueling. Beginning in 2015, 1.3 million households will have access to a discounted rate for electric vehicle (EV) refueling. These utilities will also provide customers the option of zero-emissions EV refueling with renewable energy.
Georgia is now offering buyers of new electric cars a tax credit of up to $5,000, which is on top of the $7,500 income-tax credit offered by the Federal government. Atlanta residents get other incentives as well, including driver-only carpool-lane access and several charging stations. Georgia Power Co. also offers electric-car owners a low off-peak rate of about 6 cents per kilowatt-hour.
For those Californians looking for incentives, Honda just announced that those purchasing a new Civic Natural Gas vehicle are eligible for a $1,000 purchase credit provided by the California Energy Commission. Drivers will also get a “diamond lane” sticker – qualifying for single-occupant access to carpool lanes.
Ford Motor Co. and H.J. Heinz are working together to find more sustainable composite materials for use in vehicle manufacturing – with tomato fibers now being added to Ford’s list. Dried tomato skins could become the wiring brackets in a Ford vehicle or the storage bin a Ford customer uses to hold coins and other small objects, according to Ford and H.J. Heinz.
Six hydrogen production R&D projects selected yesterday by the US Department of Energy aim to produce, deliver, and dispense hydrogen at less than $4 per gallon gasoline equivalent; $20 million in grants were awarded.
National Biodiesel Board CEO Joe Jobe talked about the politics of the latest renewable fuel standard delays.
Why fleets can save $16,0000 in lifecycle cost using an electric vehcle.