Big Picture: GM has high hopes for a redesigned Chevy Volt; Smith Electric Vehicles shuts down production

Chevy Volt plant productionGeneral Motors would like to pick up steam on sales of its plug-in hybrid Chevrolet Volt. To get there, GM will be selling two versions of the redesigned 2016 Volt. One will be a lower-priced version with a smaller battery pack and shorter driving range. That will be carried overseas through GM’s Opel division in Europe. The next versions of the Volt will go into production in about 16 months at the automaker’s Detroit-Hamtramck plant. That plant will get a $384 million investment that will be aimed toward the Volt and a new flagship Cadillac sedan and a redesigned Buick LaCrosse.

GM would like to reduce product cost and make the Volt more profitable, and expects to achieve necessary cost reductions in the 2016 model. The automaker would also like to see stronger sales results without investing so much on incentives. The Chevrolet brand reported selling just 58,158 units since the Volt was launched nearly 40 months ago.

And in other clean transportation news……

  • More bad news on the EV startup front: Smith Electric Vehicles, based on Kansas City, Mo., has temporarily stopped plant operations. The company is best known for its Smith electric delivery truck, and says that it’s not shutting down operations for good. CEO Bryan Hansel says manufacturing the vehicles has yet to become profitable; he says suppliers and investors have been informed that it’s a temporary shut down and is part of the company’s plan to scale up production and sell enough of them to turn a profit.
  • Tesla Motors is setting up a new finance arm to entice companies to lease the Model S as one of their fleet vehicles. Small and medium-sized businesses will be able to calculate the leasing cost on Tesla’s website will offer them an attractive value proposition. The new Tesla Finance unit offers leases through partner banks with a guaranteed resale value. Tesla is also getting ready to start selling cars in China this month. Tesla CEO Elon Musk will be delivering a few of the first ones to customers. He’ll also be meeting with representatives from China Petroleum & Chemical (also known as Sinopec) this month about constructing charging units in the refiner’s nationwide network of service stations. The charging network is expected to start in Beijing and then roll out to surrounding areas.
  • CleanFUEL USA has rolled out the propane autogas industry’s first complete fuel network management system for electronic dispensers. Using CleanFUEL eCONNECT, fleet managers can economically monitor and control fuel inventories faster and easier than ever before with real-time data insight, flexible report storage, and remote access capabilities.
  • The Environmental Protection Agency may continue to be sympathetic to the biofuels industry; EPA Administrator Gina McCarthy recently spoke to the issue at North American Agricultural Journalists meeting in Washington DC. McCarthy expects the EPA’s final rule to be different than the proposed version released in late 2013. After reviewing more than 200,000 on the Renewable Fuel Standard proposal, EPA is looking more closely at the realities of the fuel market, with one of them being the realities of the fuel blend wall. The agency expense more legal challenges for any RFS standards. “We need to be able to justify it in court, McCarthy said.
  • Tesla Motors has taken a swing at “lemon law king” attorney Vince Megna’s lawsuit against the electric vehicle maker. While insisting that it doesn’t believe in automotive “lemon laws,” the company says there are several good reasons to be skeptical about the lawsuit and denied some of the claims. Megna made a big splash on the internet with a Youtube video on behalf of client Dr. Robert Montgomery of Franklin, Wis.; Montgomery stated in the filing that he had a number of problems (such as a malfunctioning door handles) with his Tesla Model S that led to it being pulled of the road for 66 days. He wants Tesla to buy it back under a law that take affect after the vehicle is pulled off the road at least 30 days during its first year of life.

NAFA and CALSTART launch Sustainable Fleet Standard Program

NAFA Sustainable Fleet StandardDuring its annual conference last week, the NAFA fleet management association launched the Sustainable Fleet Standard Program in collaboration with CALSTART. It a first-of-its-kind “best practices” program supporting fleets in increasing efficiency and reducing emissions and fuel consumption for their vehicles.  “The importance of sustainable practices becomes more evident each day,” said NAFA President Claude Masters. “By becoming more energy independent and efficient, our members will extend benefits to their bottom line and their customer base.”

The Sustainable Fleet Standard Program will be complimentary to existing federal programs, but also sets a standard by which fleets can assess their progress. The program has two purposes – to encourage and make it easy for fleets to take first steps toward clean transportation; while also setting a strong framework to reward those fleets already taking real action. Member organizations will be assisted in assessing their practices to decrease fuel dependence and emissions; and to increase vehicle efficiency, improve performance, and reduce harmful pollutants. In recent years, many fleets have been learning the win-win scenario clean transportation brings in reducing emissions and operating costs.

CALSTART has been working with NAFA for several years on providing educational resources to fleets on advanced and clean vehicle technologies.  The non-profit organization has more than 150 member companies and works with industry and government partners to support growth in the industry. “NAFA’s central role in the fleet industry will help this program create a tipping point for sustainable transportation,” said John Boesel, president and CEO of CALSTART. “We’re working with NAFA to make sure the standard is strong, but easy to use by any fleet, whether just starting out or far down the road on sustainable operations.”

The timing of this launch has been quite relevant. NAFA says that developing and launching this new program coincided with a speech given by President Barack Obama in February 2014 supporting a national vehicle sustainability initiative. “By applying this standard to fleets and vehicles of all sizes, NAFA is engineering a program that has the power to shift vehicle sustainability standards on a universal level,” NAFA’s press release says. You can also learn more and stay informed on the program as it approaches implementation, at NAFASustainable.org.

Big Picture: More actions on Tesla stores in Ohio and Arizona, Toyota Financial Services starts up Asset-Backed Green Bond

Tesla direct salesIn the wake of New Jersey’s decision on Tesla Motors’ right to run corporate retail stores, there are two more states seeing developments. Ohio Gov. John Kasich has received a letter from General Motors expressing concern that the state would allow Tesla to expand beyond the two Ohio stores it currently has in operation. GM thinks the state should oppose legislation allowing Tesla to open more stores, as it would allow Tesla to compete under a different set of rule. “We understand discussions are ongoing over legislation which could provide a broad exemption for a single manufacturer, Tesla Motors Inc., to circumvent long-established legal precedent on how new motor vehicles are marketed, sold and serviced in your state,” Selim Bingol, GM’s senior vice president of global communications and public policy, wrote in the letter.

Arizona may allow Tesla to sell directly to consumers at retail stores within the state – if the company is willing to have a service center in the state to handle repairs and warranty issues. The state’s Senate Commerce, Energy and Military Committee voted three-to-two to push forward this bill in the legislature.  Arizona Senate Majority Leader John McComish called the bill a “pre-emptive strike” against future laws that outlaw Tesla’s direct-sale model. The bill will need to go before another committee for review, then would go to the full Senate.

And in other clean transportation news…….

  • Toyota has a very interesting offer through its Toyota Financial Services (TFS) captive finance arm – the auto industry’s first-ever Asset-Backed Green Bond; the company is outlaying $1.75 billion, which was upsized from $1.25 as institutional investors have expressed interest in this clean transportation investment opportunity.  TFS will use the proceeds from Green Bond toward the purchase of retail finance contracts and lease contracts for Toyota and Lexus vehicles that meet high green standards as established by three criteria: gasoline-electric hybrid or alternative fuel powertrain; minimum EPA estimated MPG (or MPG equivalent for alternative fuel vehicles) of 35 city / 35 highway; and California Low-Emission Vehicle II (LEV II) certification of super ultra-low emission vehicles (SULEVs) or higher, which would include partial zero emissions vehicles (PZEVs) and zero emissions vehicles (ZEVs). Qualifying models from Toyota include: Prius, Prius C, Prius V, Prius Plug-in, Camry Hybrid, Avalon Hybrid, and RAV4 EV. From Lexus, qualifying vehicles are CT 200h and ES 300h.
  • Producing more than 5,000 compressed natural gas (CNG) fueling tanks last year is one of several positive signs that Quantum Fuel Systems is on a turnaround that should continue, according to stock market analyst website Seeking Alpha; that’s more than double the amount of tanks that were produced in 2012. The company was close to collapsing 12 to 18 months ago, but a corporate restructuring has been completed and seems to have a brighter future. Quarterly earnings were reported earlier this month – positive earnings were reported for the first time in quite a while. The company’s share price has increased by more than 250% in the past 12 months. About 10,000 tanks are expected to be delivered in 2014.
  • The Energy Independence Summit will be taking place in Washington, DC, March 30-April 2. Leaders in clean transportation will be gathering to share best practices and educate federal policy makers about the benefits of the US Dept. of Energy’s Clean Cities program. The need for additional tools and resources to overcome barriers to the widespread use of clean vehicles and fuels will also be discussed.  You can contact Ken Brown at Transportation Energy Partners at ken@akbstrategies.com or (202) 674-7777 if you have questions or would like additional information about the Summit.
  • The CHAdeMO electric vehicle fast charging protocol, which was initially adopted in Japan by domestic automakers, has been officially recognized as an international DC charging standard by electrical standards organization the International Electrotechnical Commission. The final draft international standards were approved by committees in January 2014, and were finally published last week on the IEC website. The number of CHAdeMO fast charging stations doubled in 2012 to more than 2,000 units are expected to grow, the association said last year.
  • Dish Network unveiled 47 new propane-powered vehicles at an event on Friday in Hawthorne, Calif. Roush CleanTech converted Ford E-Series vans for Dish Network, and the company’s goal is to deploy 200 of these alternative-fuel vehicles that will run on propane autogas.
  • Volvo Trucks is bringing its full range of alt-fuel vehicles to the 2014 Mid-America Trucking Show in Louisville, Ky. That lineup will include: Volvo VNL 300 CNG with 400-horsepower 11.9-liter Cummins Westport ISX12 G engine; Volvo VNL 300 LNG with 455-horsepower Volvo D13-LNG (compression ignition) engine; and Volvo VNL 300 dimethyl ether (DME) with 435-horsepower Volvo D13-DME engine.
  • BMW plants to produce more than 100,000 electric vehicles per year to meet tougher European emission standards that reach a key mandate level by 2020. CEO Norbert Reithofer told reporters that BMW will increase production levels of its i3 and i8 in 2018 in anticipation of getting up to 100,000 units annually in order to meet the stricter carbon dioxide emission standards. BMW was pleased to see that its i3 took 10,000 internet orders when it went online last fall.

Big Picture: Northern California AltCar Expo starts up, Intertek working with DOE on AFV data collection for petroleum use reduction

AltCar Expo logoAltCar Expo is continuing to expand beyond Santa Monica, Calif., with the first Northern California AltCar Expo held at Richmond’s Craneway Pavilion on Friday and Saturday. Plug-in vehicle readiness and deployment of alternative fuel infrastructure tools for local government agencies were explored in speaker panels, and electric vehicles, hybrids, and vehicles powered by hydrogen, natural gas, and propane were available for test drives. AltCar Expo Texas will host its fifth annual meeting March 28-29 at the Irving Convention Center; it’s taking place in coordination with the Propane Engine Fuel Summit on March 27.

The free two-day event in Richmond, Calif., kicked off Friday morning with remarks from Mayor Gayle McLaughlin, Contra Costa County Supervisor John Gioia, and Randall Winston, special assistant to the executive secretary office of Gov. Jerry Brown. Scheduled speakers on Friday included Jon Coleman of Ford, Steve Ellis of Honda, Jeannie Lam of Nissan, and Christine Kehoe of the California Plug-In Electric Vehicle Collaborative. “Plug-In Electric Vehicle Readiness Plan for Local Governments & Industry,” was hosted by the Association of Bay Area Governments, the Bay Area Air Quality Management District, and the Metropolitan Transportation Commission. The session focused on suggested actions elected officials can take in their communities to support electric vehicle deployment. “Best Practices for Deployment of Alternative Fuels Infrastructure-Tools for Local Government Agencies” was hosted by the Bay Area Air Quality Management District, and the San Francisco, East Bay, and Silicon Valley Clean Cities Coalitions. It focused on best practices for the sighting and permitting of natural gas and hydrogen infrastructure.

The daylong Propane Engine Fuel Summit in Texas will feature Texas schools and businesses using propane autogas. Presentations from the City of Fort Worth, CleanFUEL USA, Dallas County Schools, Dallas-Fort Worth Clean Cities, and Northwest Propane Gas Co., will cover topics such as refueling infrastructure, economic and environmental factors, and propane industry equipment. Santa Monica’s flagship AltCar Expo, the ninth annual, will be held September 19-20 at the Santa Monica Civic Center in Santa Monica, Calif.

And in other clean transportation news……..

Intertek is working with US Department of Energy (DOE) and several national laboratories to collect data on alternative fuel vehicle street performance and reduction of petroleum consumption. Testing includes vehicle performance, durability, and operational costs. Intertek has a lot of experience in this space, being a leading provider of global testing, quality, and safety solutions. Most battery electric and plug-in hybrid models have been included in the study, along with hybrids, the Honda Civic Natural Gas, and the Volkswagen Jetta TDI. Vehicle performance data is being collected through Intertek’s data logging systems at a closed course test track. Fleets are also involved in the data collection – as the test models are driven daily for nearly 200,000 miles over three years. Each car is equipped with Intertek’s data loggers, which use Wi-Fi to automatically upload the operational data.

Coda Automotive has gone away, but its new identityCoda Energy – is up and running. Coda Energy has installed about 20 of its “CODA Core” Tower systems at commercial and industrial sites across California. Fortress Investment Group, which picked up Coda’s assets last year in June for $25 million during Coda Automotive’s bankruptcy, will be providing financial backing for a total of 100 systems over the next few months. Fortress is investing about $64,000 for each 30-kilowatt, 40-kilowatt hour lithium-ion battery based unit. Coda’s new combined system received Underwriters Laboratories (UL) 1973 safety standard certification last month. Coda’s customers for this grid battery system will pay only 50% of whatever savings the systems provide to annual utility bills. Reducing demand charges is the primary economic driver for these battery systems – and these types of battery storage systems are expected to become more important going forward as a way to retain renewable energy for electricity.

Hyundai Motor Co. is entering the battery-powered vehicle market in 2016 through its Kia Motors subsidiary. An electric version of the Soul compact will start being built in Korea next month, eventually ending up at destinations in the US and Europe. The battery electric Soul is expected to run 92 miles per charge; the global sales target for this year is 5,000 Soul EVs. In other news, Hyundai has another MPG problem – the automaker is restating the mileage rating on another one of its vehicles – the 2014 Sonata sees its rating drop from 29.6 mpg to 28.4 mpg. In 2012, Hyundai and Kia had an investigation by the US Environmental Protection Agency and acknowledged that its original stated mileage on cars like the Hyundai Elantra and Kia Soul had been inflated somewhere between one and six miles per gallon.

Biofuels will continue to see growth, but at a much slower pace than originally expected, according to a Lux Research study. The industry is expected to grow to 60.4 billion gallons a year between 2013 and 2017, a 3.2% annual growth rate – but far less than the 19.6% annual growth rate experienced between 2005 and 2013. The “food vs. fuel” debate and imminent blend limits for biodiesel and ethanol by the US Environmental Protection Agency have created impediments. Next-generation feedstocks like waste oils and cellulosic biomass are not tied up in the food supply and could unlock significant economic advantages; and next-gen biofuels – such as renewable diesel and butanol – can offer higher blends, but are not quite mature, according to the report.

Volkswagen is testing out lithium-air battery technology that could triple storage capacity. The new battery could hold much more power than its size would indicate – a 24.2 kWh battery perhaps holding 80 kWh of energy; its range could skyrocket up to 300 miles per charge. VW is keeping it under wraps for now – including when it might be installed in one of its cars.

Walmart is testing out a “WAVE” vehicle in its fleet – Walmart Advanced Vehicle Experience – which will be 20% more aerodynamic than counterparts because it’s being made out of carbon fiber; its micro-turbine hybrid powertrain can run on a variety of fuels. There’s also an electric motor and battery storage system being tested out. The carbon fiber body would cut out 4,000 pounds from the truck; it’s 53 feet long – the first time sheets that large have been manufactured. The goal here for Walmart is to double its fleet fuel efficiency by 2015, which the company says it’s 80% on the way to meeting.

Consultant’s notebook: Forget Facebook, best deal on alternative fuels

ConsultingIt’s been about two months since I launched LeSage Consulting – thanks very much for the support and feedback. Here are some of my notes on the experience so far……

Social Media Hits and Misses:  As internet marketing guru Bob Bly wrote about last week, social media has limited value for B2B marketing – especially Facebook (which somehow produced $7 billion in ad revenue last year). Facebook is great for photo galleries, “friending,” and reading about the fun one of your old high school chums is having standing in line at Starbucks. Everyone has an account on Facebook and, I would suspect, that in the next five years, there will be 10,000 more Facebook-type sites customized to a plethora of groups – special interests, hobbies, geography, politics, spirituality, environmental, business networking, etc. I’m seeing a lot more value in LinkedIn and Twitter. LinkedIn is very good for networking with like-minded professionals (check out my Clean Transportation interest group) and getting people to subscribe to your e-newsletter and take your survey. I’ve been surprised to see how important Twitter has become for business networking and special interest groups. Some companies are announcing new product and service offerings on webinars coordinated with tweets.

Compressed natural gas (CNG) is doing the best in transportation fuel prices; charging and alternative fuel stations are seeing growth and propane is still number two after charging stations (with E85 close behind propane). For those interested in receiving monthly reports on fuel prices, sales figures on hybrids and electric vehicles, and stock market performance of AeroVironment, Clean Energy, Tesla Motors, and others, you can opt for a paid subscription to Green Auto Market Extended Edition. You can also find a free sample copy of it there, too, on this site.

The Value of Time:  Consultants need to have specialized expertise in their fields from work experience, education, accomplishments, and professional networking relationships – not to mention thousands of hours out in the trenches finding out what’s really going on out there. As a former consulting colleague (and current significant other) says to me all the time – What’s your time worth? Sending a proposal to a current or prospective client with fees based on project cost, or hourly estimate, or some variation, is one thing. But what about writing a freelance article? You could put in a lot of hours, and do a couple of rewrites, for $500 (or less – thank you, Elance). Perhaps that article goes out to a well-respected mass market publication, or to a very specialized niche publication read by managers in your field. Then, yes that’s worth the time and energy – it’s effective marketing and it doesn’t really cost you anything. But then there are other situations that come up that remind me that some of that time spent is not worth it. For example, I’ve had people contact me recently on LinkedIn for networking and promotion. They got something out of it, but I didn’t seem to – beyond the annoying learning experience of not doing that again.

AeroVironment and KnowWhatYouDrive educate EV car shoppers

AVEV101Education and accessible, clear information is needed out there to get past the stumbling block that holds consumers back from owning an electric vehicle. If you take a look at a new educational website for electric vehicle (EV) shoppers, you’ll find answers to frequently asked questions:

  • What’s the difference between EVs, plug-in hybrids, and hybrids?
  • Why lithium ion batteries?
  • What do you get out of it? Why make the investment?
  • What’s the latest on charging technologies?
  • How long does it take to charge and how far do you travel?

AeroVironment is working with Saginaw, Mich.-based KnowWhatYouDrive on an educational initiative to help consumers take the plunge and purchase an EV and a home charging port. The free online course at AVEV101.com walks through all of the questions that typically come up for car shoppers – or those with some interest in owning an EV. Details are presented on the types of available charging stations, charging time, and how the installation process works. You can test your electric vehicle IQ and instantly earn $25, $50, or $100 coupon codes for an electric vehicle charging station and installation.

“Education is one of the key factors that will help speed EV adoption,” said Wahid Nawabi, senior vice president and general manager of AeroVironment’s Efficient Energy Systems business segment. Doug Taylor, founder of KnowWhatYouDrive, says that it can be a daunting task with all of the EVs on the market now through Ford, Nissan, Fiat, and other OEMs. KnowWhatYouDrive works with charging station supplier Eaton on its website, and offers a discount program for EV charging stations.

AeroVironment has been committed to making the EV ownership and charging experience more accessible to consumers. It launched a dealer program last year offering a turnkey residential charging package. Consumers can purchase the EV and the charger in combination at the time of sale and build it into the financing. The home installation process is built into the transaction so that it can take place in a faster, more seamless way than it typically happens.

PERC’s Roy Willis on propane’s major milestone with UPS

UPS propane fleet vehicleUPS, along with Frito-Lay, have become testing grounds for alternative fuel vehicles in delivery fleets. You may have noticed that UPS was given a lot of attention last week for adding 1,000 propane-powered delivery trucks to its US fleet – joining up with electric, hybrid, CNG, LNG, biomethane, and nearly 900 propane-powered trucks in its Canadian fleet, in the corporation’s sustainability initiative. UPS will also initially install 50 propane fueling stations at UPS locations mainly in rural areas in Louisiana and Oklahoma with other states pending. That $70 million vehicle and fueling investment will allow UPS to displace about 3.5 million gallons of conventional gasoline and diesel per year. Propane Education & Research Council (PERC), a non-profit propane technology incubator, is playing a key role in integrating propane autogas and refueling with the UPS fleet. UPS and PERC were able to secure certifications with the US Environmental Protection Agency (EPA) and the California Air Resources Board, in alliance with equipment manufacturers. UPS did a test run this past winter in Gainesville, Ga., with 20 propane-powered delivery trucks, and expanded its order with Freightliner Custom Chassis Corp.

“The opportunity to road test new propane vehicles and fueling equipment with one of the most sophisticated fleets in the country is a major milestone for the propane industry,” said Roy Willis, president and CEO of PERC. The UPS deployment of propane vehicles and refueling infrastructure is a smart move and good investment, Willis says – making greater use of clean, efficient energy resource with growing domestic supplies. Willis says that other fleets, such as beverage companies and bakeries, are starting to show a lot more interest in propane – as what UPS does is carefully observed. Fleet managers need to see a business case made that propane-powered vehicles are worth the investment. They know UPS takes logistics very seriously and tests out the technologies and fuels long before adding them to their fleet – such as the test fleet in Georgia.

PERC has been collaborating for several years with Freightliner, CleanFuel USA, and Powertrain Integration to build safe, clean, and efficient propane vehicles. UPS will be using CleanFuel USA’s Liquid Propane Injection (LPI) system in the planned purchase of the propane delivery trucks. CleanFuel USA will also provide several of the fueling stations out of 50 planned across the US. The UPS delivery truck is built on the Freightliner Custom Chassis MT-45 walk-in van with the LPI system, and a 6.0-liter engine by Powertrain Integration.

The school bus market has been adding a lot of propane-powered buses, Willis said. Bluebird sold about 3,600 of these propane school buses last year, and Thomas Built will be introducing a new model soon. PERC is also working on dual-fuel research projects combining diesel and propane. Direct injection of propane is also being tested by PERC with the Southwest Research Institute. Direct injection can bring better horsepower and torque, plus fuel economy improvements. While most propane vehicles have been deployed in medium-duty fleet vehicles, direct injection could be a bridge to bringing propane to more light duty passenger cars like taxis and police cars. It could be an OEM product with warranty coverage at its dealerships and may be announced by the end of the year, Willis said.

The technology is pretty well proven, according to Willis, with propane-powered vehicles widely used in fleets for several years. The fueling infrastructure is growing – such as school bus fleets adding them to maintenance yards and propane retailers bringing them to their local markets at public stations, which have been supported by state grants and incentives. The UPS announcement is probably a tipping point for more fleets to adopt propane in vehicle and fueling technologies.

Taking a deeper look at alternative fuel vehicle sales figures

Take a look at this chart, which WardsAuto published in late February showing something quite rare: detailed sales numbers on every type of alternative fuel vehicle sold in the US over the past five years in the light-duty passenger vehicle market. WardsAuto is getting these numbers from its own internal database of sales figures. I’m not sure what the “Unspecified Gas/Diesel” category means, and WardsAuto has not yet responded to my inquiry about it. However, looking at each of the vehicle categories offers a comprehensive view of market trends…….

  • Hybrids continue to make up the largest share of US new vehicle sales for alt-fuel vehicles, but “clean diesel” isn’t far behind – 3.2% of total market share for hybrids in 2013 versus 2.85% for diesel. Some would argue that diesel shouldn’t be analyzed at all as an alternative fuel – it still comes entirely from oil; regardless, it is getting considered as an alternative by a few analysts as more Americans are starting to own them for passenger cars for the first time ever in place of gasoline engine vehicles. Strong performance and fuel efficiency are helping German automakers sell them in this market, and US automakers are starting to get into that space.
  • Electric and plug-in hybrid vehicles made up .64% of new vehicle sales last year – only two thirds of a percent. However, the growth rate since starting plug-in sales in late 2010 is outstripping where hybrid sales, mainly from Toyota and Honda, were performing in their first years in the early 2000s. There are more EVs coming to market this year and beyond, which should help grow their sales numbers – along with pricing coming down and more charging stations being installed around the country.
  • Hydrogen fuel cell vehicle sales are still very small; the Hyundai Tucson Fuel Cell vehicle is going to be on the market by early summer and has a production volume target of 1,000 units through 2015. There will be other models coming on the market through Toyota and Honda next year.
  • Hybrid sales are nearing 500,000 units per year, jumping up significantly in 2012. Forecasters, including JD Power and Associates, see hybrids growing in sales percentages in the next 10 years. There’s a lot more hybrid vehicle options at dealerships now than about five years ago, and that will continue to grow.
  • Compressed natural gas (CNG) vehicle numbers are very small with very little available on the retail market – the Honda Civic Natural Gas being about it. The Ford F-150 half-ton that can run on natural gas and propane came on the market last summer, and Chrysler and GM have heavier pickups more suited to commercial usage than passenger. Parent company Fiat Chrysler Automobiles has interest in more CNG-powered vehicles coming to the US, as natural gas has played an important role in Italian transportation since the 1950s.

Educating and training the electrified transportation workforce

electric vehicle techniciansIt was fascinating to participate last week at “Transportation Electrification Curriculum Roadmap Workshop,” which was organized by Brett Williams and J.R. DeShazo of UCLA Luskin Center for Innovation. It was hosted by Southern California Edison at its SCE Energy Education Center in Irwindale, Calif. The focus of that day was on challenges being faced by education programs training students in community colleges and universities to serve the growing industry of electric vehicles (EVs), electric vehicle supply equipment (EVSE), and charging infrastructure.

I was wearing my consultant hat – it was not a public media event – but I would like to present some of the important information shared that day (identities of participants beyond the two organizers will remain anonymous for now). Much of the insightful information came from instructors and directors at education and training programs on campuses all over Southern California. Along with education professionals, there were people from government agencies, utilities, automakers, fleet management, and research centers. Here’s a few interesting points that were made that day…..

  • Community college and university administrators have been very restrictive about how much funding they’ve been willing to contribute to the education programs. Program directors had to get creative about securing funding, and much of this has come from grant funding outside the school and from corporate contributors.
  • Part of the day was spent analyzing job categories and statistics compiled by Luskin Center based primarily on the US Bureau of Labor Statistics job categories. There’s concern that the job definitions and categories are limited right now – there’s a lot of new and emerging jobs in the US economy that include solar energy and electrified transportation. So the federal and state reports that education programs are using now (and which influence funding) are limited and need to see some change. Educators would like to see the jargon for job classifications standardized in a way making it clear and accessible for everyone.
  • Getting young people engaged in seeking training and education in electrified transportation is a bit of a challenge. The college programs are growing, but educators are wanting to inform communities about their programs – and that would include high school teachers and administrators, students, parents, local government agencies, and others.
  • Program directors are spending as much of their time getting their students jobs and securing funding as they are teaching classes. That’s where creating internships and externships for students is paying off, along with student workshops and research projects.
  • Students are interested in becoming certified service technicians for dealers and fleets; others are getting graduate degrees in engineering to meet the growing demand for advanced vehicle technology integration. There’s also a lot of need for EVSE and charging infrastructure workers to keep EVs on the road.
  • The National Institute for Automotive Service Excellence (ASE) is working on certification for electric and hybrid vehicle technicians. That’s very much needed out there.
  • Another area of interest and training programs is “first responder” safety training for paramedics, firefighters, and others who rescue drivers from EV collisions. As students have asked me about when I’ve done high school presentations, there is a good deal of concern about safety when working with EVs. “Second responders” is also a big group – such as tow truck drivers and storage and wrecking yards. Cars can potentially catch on fire up to a week later, so education and training is needed in this area.
  • Another question:  What to do about electric passenger cars and commercial vehicles (such as bucket trucks and delivery vans) that come off warranty coverage and need regular service?
  • Social media has its advantages in getting the word out to young people and EV enthusiasts. One participant shared that 50% of EV information in social media is being posted on Twitter. Posting photos and videos on social media is getting a lot of hits – with instructors teaching students what they should know about EV technology. Smartphone EV charging apps are also getting a lot of interest.
  • One point that I made at the end (and rambled on a little too long about – my apologies to the group) is that I’d like to see questions that EV buyers ask answered in these programs so that instructors and students can address them. As I learned once again last week in the Green Auto Market reader survey results, there’s a lot of concern among industry stakeholders about how we can effectively answer frequently asked questions that consumers, fleets, and other vehcle buyers have. They want to know if it’s worth their investment of time and money – acquisition costs and incentives, lifecycle ownership costs, and how it all compares to traditional gasoline ICE vehicles; and then there’s always range anxiety. Then there’s the question of the chicken or the egg – what needs to happen to make this all work – more affordable electric vehicles on the market or enough charging stations to alleviate fears of being stranded.
  • This working group on EV workforce training will be meeting again to keep these critical issues moving forward for the next generation of the EV workforce.

What Green Auto Market readers are most interested in – and what needs to happen for this industry to move forward

reader surveyMany thanks to readers who’ve taken the survey this month. Your responses were insightful and very similar to what I’ve learned from having conversations with stakeholders in the industry, reading media coverage, reviewing survey reports, and reading studies by market analysts. Overall, plug-in electric vehicles, hybrids, hydrogen fuel cell vehicles, and natural gas vehicles (in that order) have the most interest; the charging and fueling infrastructure is right up there, too. It was also rewarding to get feedback on what’s needed in the marketplace for my business, LeSage Consulting,– and to see that it fits in with what stakeholders have been saying to me for a long time about the need out there for effective educational content to address concerns about ownership costs and range anxiety – and if this new industry is making a real difference with environmental issues, governmental policies, and economics.

Educating market segments on the financial side of the question is top priority – acquisition costs and incentives, lifecycle ownership costs, and how it all compares to traditional gasoline ICE vehicles. Availability and accessibility of charging and alternative fueling stations was also high on the list. As for the most important stakeholder groups, consumers finished first, followed by fleets, government agencies, and OEMs (car and truck makers).

There is a lot of interest out there in what’s going on in other industries and technologies and how it will affect automotive and transportation. As for the top five related topics that readers want to stay current on:  next generation batteries for electric vehicles and hybrids; global market conditions for alternative fuel vehicles and clean transportation; regulatory, political, and economic issues affecting alternative fuels and vehicles; futuristic advanced technologies used in fuels such as biofuels and biomass, hydrogen, methanol, dimethyl ether (DME), and renewable natural gas (also known as biogas); and how alternative fuels and energies are being used in other industries such as stationary units, air conditioning, power generation, and industrial applications.

So what’s the tipping point for getting green vehicle shoppers to make that purchase decision? What methods are most effective? Number one: vehicle specifications, pricing, and incentive data; Number two: ride and drives; Number three: answers to frequently asked questions; Number four: video interviews and presentations, and Number five: step by step guides making purchase decisions.

Special thanks to survey respondents who added open-end comments, which you can read below. There is fascination with advanced technologies and where vehicles are heading; creating the charging infrastructure that’s needed for electric vehicles to stride forward; and the source of energy – is that electricity really clean that’s fueling your zero emission vehicle? Here are the results from the reader survey……….

What topics are you most interested in reading about in Green Auto Market?

  1. Plug-in electric vehicles
  2. Hybrids
  3. Hydrogen fuel cell vehicles
  4. Charging and fueling infrastructures
  5. Natural gas vehicles
  6. Vehicle ownership and operating cost savings
  7. Research and development on advanced fuels and technologies
  8. Government regulations and incentives
  9. Vehicle emissions reductions
  10. Fuel-efficient driving and reducing idle time

What issues do you think need to be addressed to gain more interest and purchase activity from vehicle owners?

  • Total cost of ownership – green vehicle versus conventional vehicle  79%
  • Availability and accessibility of charging and alternative fueling stations  71%
  • Lifecycle ownership experience including charging and fueling, maintenance, repair, and remarketing  62.5%
  • Purchase price and incentives  54%
  • Safety of drivers and passengers in green vehicles  29%
  • Manufacturing and fueling the vehicle with energy efficient and environmentally responsible methods 25%
  • Gains alternative fuel vehicles are making in environmental, energy, and economic issues  21%
  • Payment methods for charging and fueling stations  21%
  • Ride and drive opportunities  21%
  • Connectivity with mobile devices  12.5%
  • Other:

  • Education related to how new technologies will be adopted over time. People in general need to put into context the magnitude of the change/transition that comes with moving away from gasoline ICE’s.
  • Long range between refueling events.
  • There are many smaller companies trying to start EV companies; they need access to funding. Only these companies want to bring the price of EV’s down; gas OEM’s don’t want EV’s and are not working on affordable EV’s. HELP!
  • New charging technologies, I read something a couple of months ago about a girl winning a science fair with almost instant charging. Real??
  • Since most electricity comes from coal powered plants how are they positively effecting the environment
  • Workplace charging infrastructure and programs
  • Technology transfer from auto racing use of hybrid and all-electric vehicles

How would you rank these stakeholder groups in importance for shaping the future of alternative fuel vehicles and clean transportation?

  1. Consumers
  2. Fleets
  3. Government agencies
  4. Original equipment manufacturers (car and truck makers)
  5. Transportation providers (such as delivery and trucking)
  6. Corporations
  7. Charging and fueling infrastructure providers
  8. Energy companies
  9. Auto dealers
  10. Environmental groups

What are some of the related topics that you’d be interested in reading about in Green Auto Market?

  • Next generation batteries for electric vehicles and hybrids  87%
  • Global market conditions for alternative fuel vehicles and clean transportation 65%
  • Regulatory, political, and economic issues affecting alternative fuels and vehicles 56.5%
  • Futuristic advanced technologies used in fuels such as biofuels and biomass, hydrogen, methanol, dimethyl ether (DME), and renewable natural gas (also known as biogas)  48%
  • How alternative fuels and energies are being used in other industries such as stationary units, air conditioning, power generation, and industrial applications 48%
  • Renewable energy including solar, wind, and hydro power  43.5%
  • Futuristic advanced technologies used in aerospace, auto racing, bikes, and military vehicles  35%
  • Sustainability campaigns in corporations, non-profit organizations, and government agencies  30.5%
  • Energy efficiency in manufacturing and production, residential and commercial buildings, and other areas 26%
  • Other:

  • Historical context of previous technology transitions (preference to transportation, but doesn’t need to be)
  • Driverless vehicles!!
  • Finding investors for new start-ups. Introducing new startups to your readers? The big auto guys don’t want EV’s and none of them are making money on EV’s. We need innovators like new start-ups that can bring affordable EV’s to the market

What methods do you think would be most effective in promoting support for purchasing decisions and public perception?

  • Vehicle specifications, pricing, and incentive data  65%
  • Ride and drives  52%
  • Answers to frequently asked questions  48%
  • Video interviews and presentations  43.5%
  • Step by step guides making purchase decisions  39%
  • Newsletters and blogs  22%
  • Whitepapers and reports  22%
  • Industry metrics including sales figures and alternative fuel prices  13 %
  • Podcasts and internet radio  13%
  • Other:

  • Actual range performance
  • Vehicle performance, vehicle appearance and comfort
  • Pricing, Pricing and Pricing.
  • Safety
  • Television
  • Carpool stickers