clean transportation Archives

This Week’s Top 10: Spyshots revealed of Chevrolet Bolt, Rethink Methane Symposium launched in Sacramento

by Jon LeSage, editor and publisher, Green Auto Market

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

The Chevrolet Bolt electric vehicle, which grabbed eyeballs during its unveiling at the Detroit auto show as a concept car, was the subject of spy shots last week. A spy photographer took pictures of the Bolt on a test track in the Detroit area. The 200-mile range Bolt hatchback is expected to start production in late 2016 at General Motor’s Lake Orion assembly plant, for market launch in 2017. Shown off originally with its sunset-orange paint as a concept car, the spy shots show this test model has been painted in the camouflage style commonly seen on test tracks in recent years. The exterior paint makes it hard to see all the details, but there is one slight difference from the concept car – a black roof-mounted wing. There might also be some new lighting elements near the rear bumper. The price of the Chevrolet Bolt is expected to be around $30,000 after a $7,500 federal tax credit.
Rethink Methane Symposium took place for the first time last week in Sacramento. Presented by ACT Expo organizer Gladstein, Neandross & Associates, the symposium featured stakeholders in the natural gas, bioenergy, solar, wind, hydrogen, and fuel cell industries. Panel speakers explored how renewable methane from biological and synthetic sources can help California meet its climate protection and air quality improvement goals. Speakers included California Senator Fran Pavley, who co-authored California’s AB 32 and chairs the Select Committee on Climate Change and Assembly Bill 32 Implementation; California Senator Ben Allen, sponsor of a bill to establish a renewable gas standard for California’s gas utilities; and Peter Lehner, executive director of the Natural Resources Defense Council. One of the themes of the symposium was the importance of having policies and incentives in place to accelerate production of renewable methane from a variety of sources including organic waste, landfills, and wastewater treatment plants.
Honda committed to hydrogen, leaving natural gas: Honda will be bringing its first production scale hydrogen fuel cell vehicle to market in 2016, while also stopping production of the Honda Civic Natural Gas. That alt-fuel car was introduced in 1998 and has only seen 16,000 units sold since then. John Mendel, head of US sales for American Honda, says that gasoline prices being down influenced that decision. Mendel also said that the Honda Accord plug-in hybrid will go out of production and will be replaced by another plug-in hybrid by 2018.
More “new energy” cars coming to China: Guangzhou Automobile Group Motor will be investing about $322 million in a factory in China that will exclusively build green “new energy” vehicles; details on what technology will be used haven’t been given. The company, a subsidiary of Guangzhou Automobile Group, currently sells hybrid and range-extended electric versions of its GA5 sedan, with a hybrid version of its GS4 SUV scheduled to be launched next year. China’s “new energy” policy is aiming to clean up increasing air pollution in its cities, with green vehicles making for a big part of it.
EcoCAR 3 year one winners named: Ohio State University has taken the top spot in Year One of the EcoCAR 3 competiton, according to co-sponsors, the US Dept. of Energy and General Motors Corp. Virginia Tech and the University of Waterloo took second and third place respectively in the first part of a four-year collegiate engineering programs where students have the opportunity to design, build, and demonstrate clean, advanced vehicle technologies. This time, all the teams are working on conversion projects built on the 2016 Chevrolet Camara.
VIA Motors gains CARB and EPA certifications: VIA Motors announced that its plug-in hybrid Chevrolet Silverado has been given emissions certification by the California Air Resources Board (CARB) and by the US Environmental Protection Agency (EPA). The plug-in Silverado pickup truck has a 40-mile battery range and averages 100 mpg in typical daily driving, VIA says. Having a big fuel tank (16 gallons) allows it go an additional 400 miles of gasoline and electric miles.
Nissan sponsoring National Drive Electric Week: Nissan just made an agreement to be the national sponsor of the annual National Drive Electric Week for the next three years. The Nissan Leaf continues to be the highest selling electric vehicle ever, now closing in on 200,000 global sales since its introduction in December 2010. This year’s National Drive Electric Week, (an education, public awareness, and driving event) will be taking place Sept. 12 through 20.
General Motors entering energy storage market: While Tesla Motors is now entering the stationary storage market, GM’s strategy deals more with the classic question: What do you do with those expensive plug-in battery packs once they leave the vehicle? GM will soon be announcing its strategy for secondary use of its electric vehicle batteries. Three years ago, GM and Swiss engineering company ABB tested and showed off how they could take batteries from five Chevrolet Volts and convert them into a modular unit capable of providing two hours of electricity to three-to-five American homes.
DOE aggregate purchasing program: The US Department of Energy is moving its aggregate purchasing program forward by making up to $2 million available. The funding is designed to support its aggregate purchasing plan, when one central organization coordinates customers to maximize their collective buying power. It’s been designed to support increasing sales for plug-in electric and other alternative fuel and advanced technology vehicles, subsystems, components, alternative fuels, and refueling/charging infrastructure.
‘Socially responsible’ charging stations: Social responsibility is resonating deeply within corporate America, and that might be a good vantage point to bring to the electric vehicle charging infrastructure, adding it to the list with environmentally responsible, really-cool technology. Volta Industries is using it as the model for building a network of 100 public stations that offer free charging. The company has secured an additional $7.5 million in funding to expand its operations, and has so far brought in Macy’s, Whole Foods, and the Sungevity solar company. Volta was founded in 2010 and began offering free public charging in Honolulu; since then, the company has expanded to San Francisco, Los Angeles, San Diego, and Phoenix.

Tesla-Orama: Interesting comments from the annual shareholder meeting on Model X and other topics

Tesla Motors and its CEO Elon Musk had another week of heavy media coverage – with more being revealed on the upcoming Model X launch, Gigafactory, battery swapping, SpaceX, what shareholders want, and what Bob Lutz had to say……….

During the annual shareholders meeting last week, Musk said that the all-electric Model X crossover is moving forward and will be ready for deliveries in the third quarter of this year. The company reports that orders have been placed for at least 20,000 of them. Overall, the company expects to sell about 55,000 vehicles this year, with most of that volume coming from the Model S sedan. The Model X, with its “falcon wing” doors, had a two-year delay with questions buzzing on the internet about when it would actually be rolling out. It’s expected to be offered with a variety of different battery-pack sizes and performance levels, similar to the Model S.
The Gigafactory lithium ion battery manufacturing plant in Nevada is ready to start production in mid-2016. Partner-company Panasonic Corp. has committed to sending hundreds of its employees to the Gigafactory starting this fall and will be investing around $478 million on the plant this fiscal year.
Battery swapping took another blow – Tesla is backing away. During its California test program with Model S owners, only five out of 200 who had been invited tried out the battery pack swap that Tesla had made available. It’s clearly not very popular, and it’s unlikely to be expanded in the future, Musk said. Customers seem to be more interested in using Tesla’s Superchargers that can fuel the Model S battery pack for about 200 miles of range in about 20 minutes of charging. Plus, using the Supercharger is free for Model S owners, unlike the battery swaps.
As for its energy storage product, utilities and large companies are much more interested in making the investment than are consumers. The Powerpack, which will go to utilities and large industrial customers, will probably get more than 80% of the total energy sales. Based on negative feedback from consumers about the Powerwall energy storage product, Tesla is increasing the kilowatt power storage capacity without raising the price, Musk said.
Speaking of energy storage and working with utilities, Musk made another memorable quote last week during the Edison Electric Institute’s annual convention for investor-owned utilities in New Orleans (and which helped deflate the word “disruption”): “I’m not actually a fan of disruption for it’s own sake. I don’t think we should disrupt things unless it’s…fundamentally better for society,” he said. “I’m not really a fan of disruption; I’m just a fan of things being better.”
Two Tesla shareholders, Mark and Elizabeth Peters from Texas, want the company to stop using animal products such as leather seats. Elizabeth said her husband, Mark, had to go through “extreme measures” to get her a vegan Tesla as an anniversary gift. Later in the call, a representative from People for the Ethical Treatment of Animals asked Musk if the animal-rights group could help the carmaker find vegan alternatives to leather. “We’ll look into it,” Musk said.
An “autopilot” edition of the Model S, with semi-autonomous features like a lane changer system, will be available in the near future.
Being in the auto manufacturing business requires a large amount of capital. Tesla has secured a credit line of up to $750 million backed up by property, inventory and equipment owned by the company, which was disclosed in a Tesla public filing on Friday. That line of credit had been in place for $500 million, and was extended another $250 million by Deutsche Bank, Bank of America, Goldman Sachs, J.P. Morgan Chase, Morgan Stanley, Wells Fargo, and Credit Suisse. Tesla has been using up its cash reserves and needs to have access to a sizable credit line. Tesla spent more than $500 million in cash during the first quarter to bring its Model X to the marketplace. Tesla expects to see the Model X generating cash flow in the fourth quarter of this year; delaying the Model X launch again would get in the way.
As for the SpaceX interspace commercial transport company (where Musk serves as CEO), it won’t be going public anytime soon. That company recently asked the federal government for permission to begin testing an ambitious internet service from space – that would go into direct competition with Comcast, AT&T, and other internet-service providers. The SpaceX plan would launch 4,000 small and cheap satellites that would send high-speed internet signals to all parts of the earth. Musk has said it “would be like rebuilding the Internet in space.”
While former GM vice chairman and Chevy Volt champion Bob Lutz has been impressed with Musk and Tesla Motors, their battery business isn’t winning him over. Appearing last week on CNBC’s Squawk Box, Lutz said he can’t understand the fascination with backup battery storage or manufacturing your own lithium-ion batteries. He thinks that if the energy storage market were truly ready for growth, it would have been tapped by Alessandro Volta in 1800 when he invented the first battery. He also said that building its Gigafactory won’t necessarily make manufacturing lithium-ion batteries more cost competitive. That’s already being done in China and the US, where production is fully automated and labor costs are coming down. “The highest cost in the lithium-ion battery is not the assembly labor; it’s the raw materials,” Lutz said. “And the raw materials have to be procured at a certain price. And everybody pays more or less the same price.”
Some automakers are complaining about California’s zero emission vehicle mandate and what it means for staying profitable. Tesla Motors has complained about it from the other side of the coin. In an interview with Automotive News, Diarmuid O’Connell, Tesla’s VP of business development, said that California needs to step up and actually enforce the rule. “I don’t think it was ever conceived that a pure-play electric car company like Tesla could exist, let alone thrive, but we have,” O’Connell said. “The inconvenient truth is that our success has revealed the weakness of the mandate.”

This Week’s Top 10: Seasonal pattern starts up for EV sales, Budgetary restrictions tightening up available EV incentives

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…….

May sales: Plug-in hybrid and battery electric vehicles saw the start of a seasonal pattern – up for May, the first month of a strong selling period that usually extends through August. Electric vehicles saw increases over April – plug-in hybrids increased 21.1% and battery electric vehicles are up 16.9%. The Nissan Leaf, number two behind the Tesla Model S, has now seen more than 80,000 units sold in the US since its launch. The Leaf had 2,104 units sold in May and the Model S had 2,300 units sold. Sales are down about a third from a year ago for the Leaf, and trouble lies ahead when the Georgia tax credit ends after July 1.The Chevrolet Volt saw an improvement in sales – at 1,618 it was the best monthly sales figure since August. The Toyota Prius Plug-in Hybrid has been seeing a similar pattern – sales have been down in recent months with the revamped 2016 model coming out soon. Like the Volt, the Prius Plug-in had better results during May. At 727 units sold, it was the best sales month since August.
EV incentives dwindling: Electric vehicle (EV) incentive programs are going away in two states, while other states are limiting funding for these programs in a climate of state budgetary restrictions. Automakers will also be facing federal tax incentives drying once they pass 200,000 units sold point for that EV. Georgia’s tax credit of up to $5,000 will end on July 1; owners of noncommercial EVs in the state face an annual license fee of $200, while owners of commercial EVs will pay $300. For Illinois, state legislators indefinitely suspended its rebate program that had provided up to $4,000 on alternative fuel vehicles including EVs; that program had given out $14 million in incentives since 1998. Last month, Connecticut started a rebate program from up to $3,000 on the purchase or lease of an eligible EV; however, only $1 million was set aside for this program, which means it may not last very long.
CAFE up in May: The average fuel economy of new vehicles sold in May went up quite a bit – 0.3 mpg over the previous month, according to the University of Michigan’s Transportation Research Institute. For light-duty vehicles sold in the US during May, the average window-sticker value of new cars, crossovers, pickups, SUVs, and vans sold that month as 25.5 mpg – up from 25.2 in April. The increasing price of gasoline had something to do with it, according to Transportation Research Institute researcher Michael Sivak; dropping gas prices also influence fuel economy dropping in previous months. (See this week’s feature article for more analysis of hitting the 54.5 mpg target by 2025.)
NGVs coming back: Falling gasoline and diesel prices may have softened demand for natural gas vehicles, but that’s likely to turn around, according to a new study by IHS. The study, LNG in Transportation: Challenging Oil’s Gripsays that use of natural gas as a transportation fuel could displace more than 1.5 million barrels per day (mbd) of oil demand by 2030. The study says that it’s often more economic for truck fleets to switch to alternative fuel sources. Truck fleets have a relatively quick turnover which could lead to faster adoption of new technology. A combination of drivers – environmental, technological and commercial – will drive greater adoption of natural gas in transport, according to the IHS study.
Some dealers support Tesla: Executives at publicly traded dealer groups are “quietly supporting Elon Musk,” according analysts at Morgan Stanley about the Tesla Motors chief executive. Publicly traded dealers, which were not named in the report, said they would be delighted with deregulation, which would even help their business. Morgan Stanley analysts see the “Tesla vs. dealers” battle as the first of many legal challenges to existing state franchise laws; after numerous discussions with dealers, carmakers, and fleet managers on this topic, they wouldn’t be surprised to see today’s 10,000-plus dealer groups scaled down to as few as tens of dealer groups in the future.
Charging for fleets: Car Charging Group, Inc., has launched a new feature for fleet customers utilizing Blink EV chargers and Blink Network, software that operates, monitors, and tracks the Blink stations and all of its charging data. The company solicited feedback from fleet managers when creating the product and found that requiring drivers to enter odometer data before charging their plug-in electric vehicle was a control that needed to be put in place.
India facing severe air pollution: While China’s megacities have been taking the rap for severe air pollution, India is facing far worse air quality. New Dehli, India, is facing air pollution that’s twice the level of what’s being found in Beijing, according to the World Health Organization (WHO). Nearly half of that city’s 4.4 million school children already have irreversible lung damage from air pollution, according to the WHO study.
San Diego may see more charging: San Diego Gas & Electric is working with a group of automakers, labor representatives, environmentalists, and service providers on the utility’s proposal to substantially increase its local electric-vehicle infrastructure and incentives. The program calls for SDG&E to install charging stations for electric vehicles at up to 550 sites throughout its service territory and offer special rates to encourage use at times that are optimal for power-grid efficiency. Agencies signing on in support of the pilot effort include the Natural Resources Defense Council, Environmental Defense Fund, Sierra Club, California Coalition of Utility Employees, Greenlining Institute, ChargePoint Inc., NRG EV Services LLC, Smart Grid Services Siemens AG, Plug in America, GM, Honda, Alliance of Automobile Manufacturers, KN Grid, CALSTART, the Center for Sustainable Energy, and the Green Power Institute. The California Public Utilities Commission is expected to rule on the proposal sometime this year.
Panasonic moves forward on Gigafactory: Panasonic Corp. will be sending hundreds of its employees to Tesla Motor’s Gigafactory in Nevada starting this fall, as preparation for lithium-ion battery production moves forward for startup next year. Yoshio Ito, head of Panasonic’s automotive and industrial systems (AIS) division, said the company plans to invest around $478 million this fiscal year in the Gigafactory and the company’s joint development project with Spanish auto parts maker Ficosa International SA, which specializes in advanced driver assistance systems featuring blind spot detection and assisted parking.
Sending power back to grid: Electric vehicles with excess power stored under their hoods are a good source of electricity to send back to the local grid, according to Japanese auto executives. These company leaders are part of the movement supporting the CHAdeMO charging standard who think electric vehicles can be a good energy source for building, external batteries, and appliances. The strategy was unveiled during the annual meeting of companies backing CHAdeMO, a high-speed direct-current charging protocol for EVs and plug-in vehicles – and a target for competition by automakers in the US and Europe adopting SAE standards instead of CHAdeMO. “I think that’s how CHAdeMO can expand,” said Toshiyuki Shiga, CHAdeMO Association president and vice president of Nissan.

State of the Union: Where do federal fuel economy and greenhouse gas emissions targets actually stand?

Federal fuel economy and greenhouse gas emissions standards for new vehicles sold have had a huge impact on light duty passenger and medium-to-heavy duty vehicles being built and sold in the US. Consumer Federation of America (CFA) is hopeful that the 54.5 mpg by 2025 target for passenger vehicles can be met, though some automakers are lagging way behind their peers. A new study by CFA calls out a few of the automakers for dragging down the numbers. The dramatic drop in petroleum fuel prices over the past year is also having its impact on new vehicle sales numbers with truck and SUV sales climbing. Where does all of it stand in terms of hitting these ambitious federal corporate average fuel economy (CAFE) standards?

Analysis by the CFA states that from 2014 to 2015, the percent of vehicles with a US Environmental Protection Agency (EPA) fuel economy rating of at least 23 mpg increased from 50.5% to 52%; the percent of vehicles with fuel economy at or below 16 mpg declined from 8.5% to 6.1%. CFA says that some automakers are performing very well on improving fuel economy (Volvo, Honda, and Mercedes-Benz), while other automakers are doing poorly (Kia, Subaru, and General Motors) based on making progress in increasing the number of models they’re making and selling that comply with the year’s CAFE standard.

In reviewing 2015 models, CFA found that the biggest jump was in the 27-30 mpg category, which improved from 14.8% to 16.5% in 2015. The Ford F-150, which had a 2014 fuel economy range of 13-19 mpg, jumped to a range of 17-22 mpg in 2015 through switching to a lighter aluminum body. “There is no doubt that since the announcement of higher CAFE standards, many car companies have improved their selection of vehicles with greater fuel efficiency, proving that 54.5 mpg by 2025 is achievable. The fact that the number of cars getting over 23 mpg has risen by almost 40 percent in the last ten years is strong evidence that reaching the goal of 54.5 mpg by 2025 is indeed attainable,” said Jack Gillis, author of The Car Book and automotive expert for CFA.

Automakers are focusing more on increasing sales of light duty truck and SUVS lately. CFA found that the percentage of CAFE-compliant light trucks and SUVS declined significantly in 2015, bringing the percentage of CAFE-compliant from 66% to 44%. The University of Michigan’s Transportation Research Institute that the actual fuel economy of new vehicles sold in the US in April 2015 was 25.2 mpg, versus 25.4 mpg in March 2015 and 25.3 mpg in April 2014. The high point was reached in August 2015 at 25.8 mpg. Gasoline and diesel prices had begun their spike by that point and took their toll, with truck and SUV sales increasing along with their used vehicle values.

Margo Oge, former director of EPA’s Office of Transportation and Air Quality and author of “Driving the Future: Combating Change with Cleaner, Smarter Cars,” along with Mary Nichols, chairwoman of the California Air Resources Board, earlier this month wrote a guest column for The Detroit News calling on the federal government and automakers to avoid weakening the federal standards.

“The recent dip in gas prices has led some to suggest that automakers should shift back to supplying more of the large and less fuel efficient cars and trucks that were popular with consumers a decade ago…… This is exactly the wrong time to take our foot off the accelerator of advancing technology. It is time to embrace the transformation of the automobile and harness the environmental and economic benefits of the industry’s shift towards safer, greener, and ‘connected’ vehicles,” they wrote.

Sergio Marchionne, the CEO at Fiat Chrysler, raised the issue in January when he said that while automakers could reach the 54.5 mpg target, he doesn’t think that year is a realistic timetable to accomplish it. “The question is whether 2025 is a realistic date for which to achieve it,” he said.

Other industry executives have joined in, citing cheap gas prices, mediocre support of alternatively fueled vehicles and the technology limitations as obstacles that make a fleet average of 54.5 mpg unattainable. On the commercial vehicle side, truck makers are anxiously awaiting phase two of federal standards for heavy-duty vehicle fuel economy and emissions. The proposal is expected to be published in June, three months later than its initial target.

Plug-in electric vehicles have played a “behind the scenes” role in automakers reaching fuel economy targets, as they’ve achieved credits in the federal program for selling more zero-emissions vehicles. President Barack Obama has relaxed his ambitious target of seeing one million plug-in electric vehicles on US roads by 2015. In March, the president scaled back that goal originally laid out in 2009; federal fleet purchase goals were scaled back in March, too, according to a Bloomberg article. Obama cut government purchase goals about two months ago, but said the government will continue to work to improve fuel economy into the future. “Presently, commercially available electric and hybrid vehicles do not align with the most purchased vehicle segments for federal fleets” which are trucks, GSA said in a statement. “They also come with a higher acquisition cost compared to conventional vehicles.”

This Week’s Top 10: Model S pulling ahead of Leaf in EV sales, Autonomous vehicles take over SAE World Congress

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…….

EV sales in April: The Tesla Model S secured its top spot in front of the Nissan Leaf for the month of April – 1,900 for the Model S versus 1,553 for the Leaf (according to HybridCars.com and Baum & Associates). For 2015, the Model S is leading US the electric vehicle (EV) segment – with 6,800 units sold compared to No. 2 Leaf at 5,638 sold this year. The Leaf is still leading the pack as the highest-selling EV ever – nearing almost 78,000 in the US and expected to cross the 200,000 mark in global sales sometime this summer. The Chevrolet Volt saw 905 units in April, its highest monthly total since last December. There were a few surprises in the top 10 in April EV sales – one of them being the best-selling month for the Chevrolet Spark EV at 920 units sold. The Ford C-Max Energi also saw a big increase on the list, and the BMW i3 saw its first sales drop since entering the US market.
Autonomous vehicles take over SAE World Congress: Automakers are running the gamut on self-driving cars – similar to alternative fuel vehicles. No one technology is winning but several are being considered. “There are many schools of thought and many concepts being tried,” said Cadillac spokesman David Caldwell, during the annual SAE World Congress in Detroit. German automakers have been taking the lead – including BMW unveiling the i3 hybrid version equipped with Traffic Jam Assistant two years ago, which allows the vehicle to accelerate, brake and steer at speeds up to 25 mph. Keynote speaker Ray Kurzweil, director of engineering at Google and a recognized futurist, says that the days are approaching when an inexpensive computer outperforms a human at a task such as driving; reasons for self-driving cars moving forward include their role in drastically reducing road fatalities and freeing people up to do something useful during their dreaded commuter trips.
Demand strong for CNG/propane F-150: Ford Motor Co. says the 2016 F-150 pickup will be available with a 5.0-liter V8 engine that can run on compressed natural gas or propane. Ford says demand for these trucks has been steadily increasing for the past five years. Ford sold a record 16,821 commercial/fleet vehicles with CNG/propane gaseous engine-prep packages in 2014, and the automaker thinks that 2015 will be even stronger. Customers have been asking for more trucks and vans that run on these alternative fuels because it lowers their fleet operating costs and reduces greenhouse gas emissions.
Vouchers in Chicago: VIA Motors has gained an exclusive voucher program for Chicago area fleets and business owners. VIA says it will dramatically reduce the initial costs of owning a VIA Motors extended range pickup truck, extended range electric passenger van, or extended range electric cargo van. The extended range pickup is now eligible for a $41,200 voucher, the passenger van is eligible for a $39,460 voucher and the cargo van is eligible $42,892.
Price coming down for Volt: The 2016 Chevrolet Volt will be priced from $33,995 when it goes on sale sometime this fall; the price, which includes delivery, is $1,175 lower than that of the outgoing 2015 Volt. The 2016 Volt also offers appealing features – extended range, out to 50 miles on the battery and a fifth “seating position” in the car. That will put the Volt more in line with average transaction prices of light vehicles sold in the US.
Sources for utility power changing: The U.S. Energy Information Administration (EIA) expects that 91% of a forecasted 20 gigawatts (GW) in new generating capacity will come from wind, solar, and natural gas. By the end of 2015, EIA forecasts that 9.3 GW of new wind generating capacity, 6.3 GW of natural gas, and 2.2 GW of solar. Coal’s share of the electricity-generating load will continue to decrease.
Toyota EVs in China: While Toyota has been shifting away from electric vehicles (EVs) in markets such as the US in favor of hydrogen fuel cell vehicles, the Chinese government would like to see a different approach adopted. China wants to see automakers roll out more EVs to meet its “new energy” targets. In joint ventures with Chinese partners Guangzhou Automobile Group and FAW Group, Toyota will introduce the Leahead and Ranz all-electric brands this year in that market. It’s probably for show to please the Chinese government, analysts say.
Hybrid and EV commercial vehicles: Navigant Research predicts that global sales of electric drive and electric-assisted commercial vehicles will grow from less than 16,000 vehicles in 2014 to nearly 160,000 in 2013. The size and weight of battery packs in electric vehicles can limit usability for several fleets, but their products choices are becoming more versatile in the next few years for trucks, vans, and buses. Vehicles that qualify for these Navigant Research study categories fall under a broad definition. That includes hybrid vehicles used in commercial applications (medium-to-heavy duty); and niche applications for plug-in hybrid and battery electric vehicles that can use onboard electrical energy to replace idling diesel engines or provide temporary power to buildings or tools at remote sites.
Wrightspeed launches turbine generator: Wrightspeed Inc., a manufacturer of range-extended electric vehicle powertrains, has launched the Fulcrum, a turbine generator and electric vehicle range extender. Utilizing a proprietary set of advancements, the Fulcrum’s design could represent a breakthrough that challenges today’s piston engines and existing turbine generators. Wrightspeed is hopeful that the 80 kilowatt Fulcrum turbine generator sets a new standard as the company works to evolve electric vehicle propulsion. Located in Silicon Valley, Wrightspeed was founded by Ian Wright, a co-founder of Tesla Motors back in its startup days.
Tesla enters CPO market: Tesla Motors has launched a certified pre-owned (CPO) website page, but it might be a bit early in the process to see much inventory there. During a recent media conference call, Kelley Blue Book’s Alec Gutierrez said that with current monthly sales of the Model S in the 1,500 to 1,700 range, it’s still early in the remarketing process. It does make sense to get started now, though, he said. “They want to have enough certified pre-owned inventory out there to help give consumers something in between the Model 3, whenever that arrives, and the full blown Model S or Model X, when that arrives,” Gutierrez said. “So to me, it’s a good play, but a long-term strategy for sure.”

This Week’s Top 10: Renewable Fuel Standard biofuel blends may be resolved, Tesla Motors announces Model S 70D

by Jon LeSage, editor and publisher, Green Auto Market

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

The long-dragged-out biofuels standards may be coming to a conclusion. The US Environmental Protection Agency (EPA) said it will propose draft biofuels targets for 2015 by June 1 as part of a lawsuit settlement with oil industry trade groups. The American Petroleum Institute and the American Fuel and Petrochemical Manufacturers had filed a lawsuit stating that EPA delays in setting renewable fuel use requirements have led to uncertainty and volatility in biofuel markets; oil trade groups are tired of dealing with market volatility of Renewable Identification Number (RIN) credit prices, which is part of the Renewable Fuel Standard rules requiring that fuel refiners mix a certain volume of ethanol into gasoline and biodiesel into diesel each year. The EPA has been dragging out defining the rules that it will set for biofuel volumes. Its decision in late 2013 to reduce the ethanol mandate and maintaining the biodiesel mandate led to a wave of public outcry by biofuels producers and anger by oil industry trade groups over the instability and whether the EPA would reduce the biofuels targets.
Tesla Motors continues grabbing our attention. Last fall, it was the Tesla Model S P85D with “P” standing for performance; now, there’s the Model S 70D with more power, longer range per charge, and price tag with $5,000 added. The 70D is an all-wheel-drive Model S with a 70-kilowatt-hour battery pack, with 240 miles of range and priced at $75,000 before incentives; and it gets 514 horsepower (hp) to all four wheels from two electric motors. That compares with 208 miles on a charge and 380 hp on the base model rear-drive Model S. As for the “D” in Model S 70D, that stands for dual motor, which will be standard.
Henrik Fisker is dropping the Thunderbolt supercar. Former Fisker Automotive co-founder, and previous Aston Martin design director, Henrik Fisker, has settled a lawsuit by Aston Martin against plans to produce the $400,000 Thunderbolt. Fisker claimed it was based on the current Aston Martin Vanquish, a V-12 powered supercar that was to have been modified with custom styling and cosmetic features. Aston Martin says it was too close to the iconic sports car featured in James Bond movies and infringed on Aston Martin’s intellectual property rights. Fisker had shown off the Thunderbolt at the Amelia Island Coucours d’ Elegance car show last month, and said it would be marketed through the Galpin Aston Martin dealership in California.
ClipperCreek releases cost-competitive charging station. ClipperCreek announced availability of its popular LCS-20 EV charging station with a plug, previously available only as a hardwired unit. ClipperCreek released the LCS-20P Level 2 EV Charging Stations now starting at $379 hardwired and $395 with four plug options, the four most common residential 240V supply power plugs.
Elio Motors CEO Paul Elio still needs a few more investors. Elio just spoke at the New York Auto Show and said that to meet the $230 million to begin production of its two-seat, three-wheel fuel efficient vehicle is still falling short – the company needs another $165 million to get these cars on the road. Elio thinks that the $6,800, 84 mpg vehicle is ideal for cost-conscious fleets and consumers. A big question will be whether Elio Motors will be able to qualify for a low-interest loan through the US Dept. of Energy’s Advanced Technology Vehicle Manufacturing program that will be re-launched soon.
Rethink Methane Symposium coming up. Gladstein, Neadross & Associates (which puts on ACT Expo) is launching the inaugural Rethink Methane Symposium on June 9-10 in Sacramento, Calif. It’s focused on helping stakeholders understand how renewable methane from biological and synthetic sources can help California meet its climate protection and air quality improvement goals. Featured speakers will be Hector De La Torre of the California Air Resources Board, Peter Lehner of the Natural Resources Defense Council, Julia Levin of the Bioenergy Association of California, and Alan Lloyd, president emeritus of the International Council on Clean Transportation.
Massachusetts offering more EV rebates. Electric vehicles have been popular enough in Massachusetts to use up the initial $2 million incentive funding. Now Governor Charlie Baker has allocated an additional $2 million to the state’s Mor-EV rebate program. Mor-EV, which stands for Massachusetts Offers Rebates for Electric Vehicles, provides up to $2,500 to state residents who buy or lease electric vehicles.
BMW wants to double plug-in sales. BMW would like to double sales of its i3 electric and i8 plug-in hybrid models this calendar year. The BMW i3 had 6,092 in sales from its launch in May of last year through December; the German automaker would like to double that to 12,000 units sold of its i3 battery electric and i3 REX range-extended small hatchbacks by the end of this year. The i8 was introduced in August and took in 555 in sales last year; that number is intended to be 1,000 this year. BMW is happy to see strong demand for both models, said BMW North America CEO Ludwig Willisch.
GM prepping for redesigned Volt. General Motors says it will stop production of its 2015 Chevrolet Volt in May to reduce US stockpiles and to prepare for the highly anticipated 2016 Volt plug-in hybrid. Production of the redesigned 2016 Volt is expected to start late this summer. The suspension comes from lower-than-expected sales, factory renovations and engineering changes, the company said. Volt sales had dropped 19% to 18,805 units in 2014, and 48% in the first quarter of this year to 1,874 units. In other news, GM is thinking about spending $1 billion to renovate its Tech Center campus in Warren, Mich. GM has asked the city for tax breaks on the project. The Tech Center has been the hub of many projects since the 1950s including hosting a battery lab for electric-drive vehicles like the Volt.
Kevin Wood, project manager for clean transportation, at Center for Sustainable Energy, sees the plug-in and fuel cell vehicle markets taking off right now. They have a proven track record in fleets. While they don’t meet the needs in every duty cycle yet, in passenger vehicles and sedans, there’s no reason to not be looking at these technologies. You can hear his perspective on these plug-ins and fuel cell vehicles, and other alternative fuel vehicles, in this Fleet Management Weekly video.
Extra from this week’s Green Auto Market Extended Edition: How Hawaii has become a significant electric vehicle (EV) marketplace. EVs with strong incentives have their appeal in Hawaii – with destination charges and a higher price for gasoline than any other market in the US, EVs become as, or more, attractive with cost-conscious car shoppers living in the state. Hawaii ranks second in the US behind California in the number of electric vehicles registered in the state, according to figures recently release by the US Energy Information Administration. The adoption of electric vehicles is a key component in the state’s target of reaching of 70% in clean energy by the year 2030. Here’s more on how to subscribe to that weekly newsletter and read all about it, plus a section on clean transportation company publicly traded stocks – and resources to check out on following these stocks and market trends.

Phase 2 of fuel efficiency and emissions standards for trucks are central themes at NAFA and ACT Expo conferences

Phase 2 of national standards for fuel efficiency and greenhouse gas emissions from medium- and heavy-duty trucks will be central themes at upcoming industry conferences NAFA 2015 Institute and Expo and ACT Expo. The US Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA), in collaboration with the California Air Resources Board (CARB), are in the planning stages of extending its standards beyond model year 2018. The objectives are to further reduce fuel consumption through the application of advanced cost-effective technologies and continue efforts to improve the efficiency of moving goods across the US. EPA has announced that proposed Phase 2 regulations that were originally planned for publication last month will delayed until June. The new rules are expected to not take effect until 2020.

At NAFA Fleet Management Association’s 2015 Institute and Expo in Orlando, Fla., James Tamm, a top NHTSA official who has been heavily involved in the drafting of proposed regulations rulemaking regarding Phase 2 fuel efficiency and greenhouse-gas emissions, will speak to these issues at a session on Thursday morning, April 16. Tamm’s NHTSA division is also responsible for reviewing and approving manufacturer petitions for alternative CAFE standards. Tamm will make this presentation with Patrick O’Connor, president of the firm Kent & O’Connor, NAFA’s legislative counsel in Washington, DC. Tamm will provide attendees with an overview of the objectives for the Phase 2 standards and urge fleet managers to participate in the rulemaking process.

The 2015 ACT Expo, which takes place May 4-7 in Dallas, is presenting a greater emphasis this year on goods movement efficiency. Trucking Efficiency, a joint effort of The North American Council for Freight Efficiency (NACFE) and Carbon War Room (CWR), has an expanded partnership with the 2015 ACT Expo to provide greater emphasis on trucking efficiency at North America’s largest clean fleet event. Trucking Efficiency is an industry collaboration that aims to double the freight efficiency of North American goods movement.

The four-day ACT Expo event will also feature a dedicated “Trucking Efficiency Showcase” in the expo hall to display heavy-duty efficiency technologies. Speaker workshops include a trucking efficiency track to explore these technologies and discuss the benefits and challenges of their adoption. Speakers will be discussing the role of alternative fuels in work trucks and heavy-duty trucking, aerodynamic improvement systems, idle-reduction strategies, 6×2 axles, tire pressure monitoring systems, and driver training programs among other measures – that will enable fleets to improve productivity, save fuel, and meet emissions standards.

Phase 2 was a topic of discussion at the CALSTART annual meeting and Blue Sky Award ceremony in Los Angeles in December. Keynote speaker Christopher Grundler, director, office of transportation and air quality at the EPA, sees this as a top issue for the clean transportation community to follow.

Advanced vehicle technologies will play a key role in meeting federal standards, as will adoption of next-generation alternative fuels and electrified trucks. Clean diesel and new diesel powertrains were key elements behind the Clean Truck Programs adopted by major ports, but there is concern about what it will take to further reduce emissions – and that it may take a while. Volvo Trucks has been working with Oberon Fuels to roll out trucks powered by the very clean dimethyl ether (DME). However, that will take longer than expected. Last fall, Volvo Trucks announced that it would no longer project a date for commercial availability, citing a slowdown in the pace of the North American alternative fuel market. The truck maker will continue field testing DME-powered vehicle, but it will be closely monitoring “market and stakeholder interest in the fuel.”

This Week’s Top 10: Hybrid and EV sales up monthly but down from last year, Incentives may change in California away from upper income consumers

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…….

Both hybrid and plug-in electric vehicle sales are up over February 2015 but down from March 2014. Plug-ins are down less than one percent from a year ago, but hybrids continue to see a significant drop from last year’s sales – down more than 23% from March 2014. The Tesla Model S took back the top electric vehicle sales spot, which it had gained in January, from the Nissan Leaf. Tesla Motors released a quarterly statement and said it delivered 10,300 cars in the first quarter of this year – a 55% increase over the first quarter of 2014. Overall, the Nissan Leaf is the best-selling EV in the US – with a total of 76,407 versus 75,321 sold for the Chevrolet Volt since these cars were launched in late 2010. The Leaf has been far ahead of the Volt in monthly sales figures for more than a year, and a number of EVs have been surpassing the Volt recently. That could be the case until the 2016 Volt is rolled out later this year. BMW is investing in TV advertising for its i Series, and the BMW i3 has been seeing relatively strong sales numbers for several months.
Californians make up about 40% of buyers of electric vehicles, but there’s growing concern too much state money is being spent on incentives and that they tip toward upper income consumers too far. Republican state Senator Ted Gaines has proposed eliminating rebates on cars that cost more than $40,000, but incentives would be boosted to $3,500. With the $7,500 federal tax credit, the cost of the vehicle could be reduced more than a quarter of it sticker price. The legislation comes at a time when the state has been criticized for giving most of the rebates to consumers who earn twice the national average; almost a fifth of the funds go buyers of the Tesla Model S with its starting price of about $71,000. Tesla has received about $34 million of the $203 million the state has doled out since the incentive program started in 2010. Almost twice as much as Tesla received in incentive funds has gone to Nissan Leaf owners for the electric car starting at about $29,000. Other states are making changes to their EV incentives; Georgia has passed a highway-funding bill that killed its $5,000 income-tax credit for purchase of an electric vehicles. Illinois suspended its own rebates to close a gaping budgetary hole, and Texas may do the same. Georgia also added a $200 registration fee for battery-electric vehicles.
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UPS will be installing 15 compressed natural gas (CNG) fueling stations to support its planned purchase of 1,400 new natural gas vehicles over the next year. Twelve of the fueling sites will be in new natural gas vehicle deployment areas, and three will replace existing stations with higher-capacity equipment. The CNG vehicle purchase represent a nearly 30% increase of UPS’s alternative fuel and advanced technology fleet of 5,088 vehicles in its global fleet.
BMW has won the World Green Car for the second year in a row. The 2015 award was presented at the New York International Auto Show to the BMW i8 plug-in hybrid sports car. The i8 was also one of the finalists in the category World Luxury Car of the year, and follows the i3 as the World Green Car category winner for this year.
Auto supplier Delphi Corp. just completed a 3,400-mile road trip in a driverless Audi Q5 test model. The car, with its human driver ready to intervene and take over, drove from San Francisco to New York to test its radar, cameras, and laser sensors. The Audi Q5 stuck to posted speed limits, even when all the other vehicles on the roads were violating them. Other drivers subjected the car and its human occupants to “a few hateful gestures,” said Delphi’s chief technology officer Jeff Owens.
While the BMW i Series was launched as part of BMW’s commitment to urban mobility, the US market for the i3 electric vehicle has been more of a mixed market than New York City. Two suburban markets in California are doing well marketing and selling the car – Crevier BMW in Santa Ana and Stevens Creek BMW in Santa Clara; parts of Texas and southern Florida are markets seeing hot demand, says Ludwig Willisch, CEO of BMW of North America. BMW is approaching “a sustainable rate” of selling 12,000 of the i3s annually, with its starting price of $43,350, including shipping.
Of all places, Texas is seeing some real gains in clean fuels; by January 2017, Georgetown, Texas, located about 25 miles north of Austin, will get all of its electricity from wind and solar power. The city has a 20-year agreement with EDF Renewable Energy for wind power from a new plant in Amarillo; and has a deal with SunEdison, which will build plants in west Texas that will provide Georgetown with 150 megawatts of solar power. Texas is still the largest producer of oil in the US, the state is also seeing an abundance of wind and solar power.
Wanxiang says it will begin showing off its version of the Fisker Karma sometime later this month, possibly at the Shanghai Motor Show. In what may be called the Elux Karma, Fisker’s owner Wanxiang is said to be thinking of upping the price tag to around $135,000 for the plug-in hybrid sports cars.
BASF, a massive chemical company based in Germany, is fighting with Umicore, a Belgian major supplier of battery materials, in US Federal Court in Delaware. The case filed on February 20 has BASF accusing Umimore of selling nickel-cobalt manganese (NMC) cathode materials even though BASF has an exclusive license to it. The case also affects 3M Corp. and Argonne National Laboratory, which are major player in the lithium battery field.

This Week’s Top 10: Chinese automaker BYD taking on Tesla in battery battle, DOE awards $6 million in clean transportation projects

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…….

BYD taking on batteries: Chinese automaker BYD Co. is taking an active role in the global automotive and energy markets. The company, backed by Warren Buffett’s Berkshire Hathaway Inc., will be adding 18 gigawatt hours of global production for batteries over the next three years, putting it on par with Tesla Motor’s $5 billion “gigafactory” for electric vehicle battery manufacturing and energy storage capacity. Most that battery production is in China, but the company is opening a large factory in Brazil this year and will scale up production in the US. In 2013, BYD opened two manufacturing plants in Southern California for producing electric buses and batteries. On Friday, ridesharing giant Uber announced that it will be working with BYD on testing a fleet of electric cars for Uber drivers. This is the first time Uber will try out electric cars (which has been a popular fleet offering with carsharing companies Car2Go and Zipcar). The test program was kicked off a few weeks ago in Chicago and may be expanded to other cities.
DOE projects awarded: An interesting medley of universities, coalitions, and associations have just been granted about $6 million for 11 projects supporting advancement of clean transportation by the US Department of Energy (DOE). Some of the projects will help consumers and fleets adopt alternative fuel vehicles and infrastructure to help spread education and support for these projects. For example, a state agency in Florida is leading the Drive Electric Orlando project and received $400,000 to increase consumer familiarity and support for plug-in electric vehicle adoption.
Forgetting to shut down your Volt: A recall has been issued on about 64,000 Chevrolet Volts in model years 2011, 2012, and 2013; the problem stems from drivers mistakenly leaving the car running (which does happen on cars with keyless fobs running partially or completely on battery power). That means hazardous carbon-monoxide could spread in that area, which can be quite toxic in a garage. General Motors has issued the recall and notified the National Highway Traffic Safety Administration (NHTSA) about it.
Goodyear and green tires: Goodyear rolled out two green concept tires during the Geneva Motor Show. The first one sounds similar to what Protean Electric offers – its BHO3 can provide an additional source of electricity for electric vehicles – similar to energy coming from regenerative braking and power produced by Protean’s in-wheel electric-drive system. Goodyear’s BHO3 can harness heat created during normal driving conditions for producing electricity. The second concept from Goodyear, the Triple Tube, offers a pump that can adjust the tire into three different configurations; one of them, “Eco-Safety,” inflates the tire decrease rolling resistance.
Tesla relieving range anxiety: Tesla Motors CEO Elon Musk tweeted on Sunday that the automaker will announce a software update on Thursday that will “end range anxiety” and satisfy driver concerns about running out of battery power. In other Tesla news, the electric carmaker will be moving executive positions around to deal with its growth in deliveries in Asia, North America, and Europe. Jerome Guillen, vice president of global sales and service, will change over to a customer satisfaction role. Tesla will hire regional executives to better manage challenges like gaining sales traction in China.
Porsche may be making an electric car: Porsche may enter the luxury battery powered sports car world to take on Tesla Motors – and long-term competitor Ferrari SpA. Porsche AG chief Matthias Mueller acknowledged Tesla’s practical approach during a press conference on Friday. Porsche will be rolling out is seventh model line by 2020 but has yet to decide on the details. It will be a sports car model that would go directly after Ferrari.
Autocycles being adopted: Twenty six states now have laws in place, or are developing them, allowing three-wheeled, enclosed vehicles that are usually called autocycles to go street legal. Sen. David Vitter (R-La.) has introduced legislation that would bring the autocycle classification to the federal level. One of these companies, Elio Motors, has been gaining a lot of interest in the past year for its three-wheeler electric autocycle available for $6,800.
Intrigue continues on Apple: Is Apple Inc. entering the electric vehicle (EV) market? Investor shareholders have expressed interest in the technology giant creating a joint venture with Tesla Motors to build the most cutting edge EV ever, according to Apple CEO Tim Cook. “Quite frankly, I’d like to see you guys buy Tesla,” an investor told Cook recently, who sloughed it off. In other news, Apple asked a US court to dismiss a civil lawsuit filed by battery maker A123 Systems over engineers hired by Apple. Apple says it’s too speculative to proceed and has avoided giving out details on whether or not it will be starting up an EV manufacturing or lithium battery division.
Billions in advanced vehicle R&D: Automotive News just released an in-depth analysis piece on the massive challenges global automakers are facing in new technologies. Long gone are the days of slowly testing and developing new vehicle powertrains. The US 54.5 fleetwide fuel economy standard and tightening emission rules in Europe are driving much of the changing landscape; as are innovations in electric vehicle and hybrid systems – and companies like Google, Tesla, Apple, Uber, and Zipcar changing the rules of the game. That means billions in investments and a higher level of risk – with one example coming from Volkswagen, which will spend $7 billion in North America over the next five years on new plants, models and technology, and a new engineering center.
Valeo making investments: French automotive supplier company Valeo is looking at acquisitions that could leverage its role in fuel efficiency and autonomous vehicles. Hybrid technologies is one route the company is traveling to help automakers cut fuel consumption and carbon emissions. Another strategy is through connected, self-driving cars. Valeo announced a deal with Mobileye on March 11 to use the technology company’s image processors in autonomous and collision-avoidance applications.

Green Auto Market Extended Edition test drives Tesla Model S P85D and offers market data analysis

Green Auto Market is changing its format this week, adding another weekly publication that goes out on Mondays – Green Auto Market Extended Edition. The former monthly subscription publication is going weekly, featuring a commentary and at least one market data analysis section (with this week focused on hybrid and electric vehicle sales). Green Auto Market will continue to be a free weekly newsletter sent out on Tuesdays, but will be a brief newsletter with more in-depth coverage and analysis presented in Extended Edition.

This week’s Extended Edition presented readers with “Test driving a Model S P85D while experiencing what’s unique about Tesla Motors’ marketing tactics” – If you’re interested in driving a Tesla Model S – especially if you really want to try out the “Insane Mode” and go from zero to 60 mph in 3.2 seconds – then you’ll need to schedule an appointment at a nearby Tesla store. Tesla will not be participating at a ride and drive during an upcoming auto show or industry conference. Just like its Supercharger fast charger stations, Tesla Motors does everything its own way – and keeps things very interesting. Here’s what it’s like to visit a store and take the Model S P85D for a road trip.

Other features for this month include hybrid and plug-in electric vehicle sales charts and market trend analysis. In the next few weeks, a stock market chart will be featured on major clean transportation companies and suppliers; fuel prices; charging and alternative fueling infrastructure; and other important data metrics on what’s next for advanced vehicle technologies and alternative fuels.

Green Auto Market Extended Edition is available for $75 per year; subscribers can register on this PayPal page. Comp subscriptions are available for media and industry associations; contact Editor Jon LeSage for that request.