For Today: Tesla takes quarterly hit from costly Model 3 production, ExxonMobil settles with EPA on plant pollution

Model 3 cost hits Tesla quarterly earnings:  Tesla reported its largest loss ever during its third quarter earnings report yesterday – $671 million compared to a $336 million loss in the previous quarter and a $21 million profit in Q3 2016. That’s coming from the huge investment needed for ramping up production of the Model 3 at its Fremont, Calif., assembly plant and its Nevada-based Gigafactory. The company also reported a record $3 billion in quarterly revenue and delivery of about 26,000 vehicles. Speeding up Model 3 production has hit a bottleneck, much of it at the battery factory in Nevada. The goal of building 5,000 of the more affordable electric cars at 5,000 units per week has been moved from the end of 2017 to early 2018. “While we continue to make significant progress each week in fixing Model 3 bottlenecks, the nature of manufacturing challenges during a ramp such as this makes it difficult to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear,” Tesla said.

Trucking industry happy with court ruling:  A federal court of appeals in District of Columbia has ruled in favor of trucking companies on changes made last year to setting emissions standards on their trailers. The court ruled that the trucking industry has met its federal fuel efficiency and emissions obligations and that rule will stay in place. Last year, under President Obama, the Environmental Protection Agency had ruled that the long-haul trailers were affecting the federal standards and tougher rules would be in place by the end of this year. The Truck Trailer Manufacturers Association had filed a petition asking the court to stop the trailer portion of the rule, saying that they don’t produce emissions at all; Obama’s EPA had said that trailers put a drag on truck engines and effect performance. The overall standards will remain in effect, although the court will hear arguments as to its legality next year.

Oil giant paying for air pollution improvements:  ExxonMobil has agreed to pay a fine of $2.5 million and spend about $300 million on air pollution improvements in a settlement with the federal government and the Louisiana Department of Environmental Quality. The company will install and operate air pollution and monitoring technology for pollution reductions coming from eight of its petrochemical manufacturing facilities in Texas and Louisiana. The Dept. of Justice and Environmental Protection Agency had been enforcing violations of the Clean Air Act, coming from the oil company failing to accurately monitor industrial flares at the facilities, causing excess emissions. Some environmentalists say the settlement is not nearly enough to address violations by the oil company going back a decade. EPA administrator Scott Pruitt said its shows the EPA’s commitment to enforcing the law and working with states to address compliance with environmental regulations. It may not address other claims, such as those filed in June by New York’s attorney general accusing former ExxonMobil chief and current Secretary of State Rex Tillerson of misleading investors on the costs of climate change while Tillerson led the oil giant.

For Today: Electric Vehicle Charging Association reports on how charging has grown since 2011, EVs beat diesel in new study

EV charging report:  Electric vehicle charging outlets have grown tenfold in the U.S. since 2011, according to a new report from the Electric Vehicle Charging Association – from 5,070 in 2011 to 50,991 this year. As a business sector, the EV charging infrastructure increased 576% in revenue between 2011 and 2016 – from $27 million in 2011 to $182 million in 2016. Revenue could grow to the $276 million by 2020, and the association also forecasts that the industry globally could produce $45.59 million by 2025. As with electric vehicle sales, California has led the way in charging stations. The state’s infrastructure has grown 67% since the association’s first report in October 2015. California now about 15,930 charging outlets in place, not including residential outlets, according to the “State of the Charge” report.

Diesel seeing more clean fuel competition:  ExxonMobil and Renewable Energy Group (REG) have conducted research finding feasibility in biodiesel converted from a variety of biomass sources. The two companies were able to validate the feasibility of the REG Life Sciences fermentation technology across multiple cellulosic sugar compositions produced from a few non-edible biomass sources. The study confirmed REG Life Sciences technology is capable of achieving substantial reductions of full-lifecycle greenhouse gas emissions compared to traditional diesel fuel. “Biofuels today are made largely from food sources, such as corn and sugar cane,” said Vijay Swarup, vice president of research and development at ExxonMobil Research and Engineering Company. “ExxonMobil is challenging that paradigm by exploring a portfolio of large-scale biofuels solutions that do not compete with food and water.”

Electric beats diesel in study:  A new study has looked into how clean electric vehicles can be based on what goes into generating the power and the impact of mining raw materials. The study finds that even when the power is generated by coal power, it still emits fewer emissions that diesel cars. Those findings are especially relevant to the European market, where automakers are gradually reducing the volume of diesel passenger cars. Conducted by VUB university in Brussels for NGO Transport & Environment (T&E) the study analyzed data from several European markets. Dr. Maarten Messagie wrote in the study that there is room for improvement on the battery manufacturing side to reduce the environmental impact, but clean energy sources have the greater impact. As in the U.S. and other countries, those emissions improvements are expected to increase as utilities add more renewable energy generation.

For Today: Panasonic says Tesla Model 3 production bottleneck being worked out, Europe seeing strong plug-in vehicle sales

Working out production bottleneck for Model 3:  Tesla’s battery partner said that production problems are being worked out at the Gigafactory in Nevada, which will get the Tesla Model 3 up to speed in the near future. Panasonic CEO Kazuhiro Tsuga said yesterday that delays to the automation of the battery pack production line meant some of it had to be completed manually. It will soon be automated, meaning the number of vehicles to be produced will rise sharply, he said. Tsugu declined to comment on how his company sees the production schedule will be carried out compared to the original projection. Automotive demand from Tesla and other auto industry customers helped the Japanese electronics company’s operating profit rise 6% during the July-September period. Panasonic supplies battery cells for Gigafactory production of Tesla’s battery packs. Earlier this month, Tesla had said that manufacturing bottlenecks had caused the slowdown for the Model 3 – down to 260 produced versus the original goal of 1,500 during the past quarter.

Mazda will offer rotary engine plug-in hybrid:  Mazda will be bringing out a plug-in hybrid powered by battery and a rotary engine in 2019. During the Tokyo Motor Show, the company confirmed that it will be launching an all-electric and extended range electric vehicle that year. Australian online publication Motoring reported that Mazda will be announcing a series of plug-in hybrids based on existing models around 2020. After that, then a battery electric vehicle will come out. It will be co-developed with Toyota and Denso in 2021 as part of its recently launched EV joint venture.

Plug-in sales doing well in Europe:  September was the second best month ever for plug-in electrified vehicle sales in Europe. At about 33,700 all-electric and plug-in hybrid vehicles sold, growth was up 32% year-over-year by the end of September. December 2015 had been its top selling month, with just over 33,800 units sold. Sales are expected to be strong in the fourth quarter, with historic data showing sales always improving over the last three months of the year in the region. Plug-in vehicles increased to 2.2% of overall new vehicle sales in Europe during September. Tesla saw its best month ever in Europe with the Model S coming in at #1 with an estimated 2,527 units sold. The next four on the list for top five selling PEVs in Europe during September were the Renault Zoe at 2,306 units sold, the Tesla Model X at 2,137, the Mitsubishi Outlander PHEV at 2,080, and the Volkswagen e-Golf at 2,041 units sold.

For Today: Tesla Model 3 production not looking good, BYD sees growing demand for electric buses and trucks

Tesla Model 3 production:  Tesla’s aggressive strategy of growing from 100,000 vehicles manufactured this year to about 500,000 next year – mostly through the Model 3 – isn’t looking very good right now. Its stock prices have slipped 4.5% since the company said this month that only 260 Model 3s were produced in the third quarter and that the 1,500-unit forecast had been far from being met. It goal to ramp up to producing 5,000 of these electric cars per week by December doesn’t look to be realistic. A separate media report confirms the slowdown, with Taiwanese auto component supplier Hota Industrial Manufacturing Co. having its parts orders slashed 40% for the Model 3 in December – from the planned 5,000 per week to 3,000 per week. The target of sending weekly shipments of 10,000 parts in March will be stretched out to May or June, according to the report. A Tesla spokesman declined to comment, and a CEO Elon Musk on Thursday tweeted once again that the company is going through “production hell.”

Urban mobility:  Navigant Research just released a report defining how sustainable mobility plans being adopted in fast-growing cities around the world are being shaped by three factors: automated vehicles, cleaner powertrains, and the mobility as a service (MaaS) model. These will eventually tie the outcome to where cities policies are hoping it will go. The study includes a potential scenario where a high level of adoption of automated vehicles where a city with 3 million inhabitants collectively own 1.5 million cars. Other studies have forecasted that growing usage of autonomous vehicles, biking and walking, and shared mobility services, will mean less vehicle ownership and miles driven.

BYD ready for growth:  BYD’s commercial vehicle arm in the U.S. is seeing growth in demand for electric buses, but also for moving goods. Andy Swanton, vice president of truck sales at BYD, told Trucks.com that the question has changed over to “when, but not if” on converting truck fleets over to electric vehicles. That’s behind the expansion of its Lancaster, Calif., factory where an additional 700 workers could be added to the facility. That will support building up to 1,500 all-electric buses each year and to serve growing demand for electric trucking. Swanton said that the company’s global manufacturing capabilities and environmental policies in California and other markets are behind much of that growth.

 

For Today: Environmental groups pressure automakers to support better fuel economy rules, NEVS partners with ridesharing giant DiDi

Green groups ask for support in clean car standards: Leading environmental groups have launched the “Forward Not Backward” campaign to pressure automakers to back the Obama administration’s federal fuel economy and emissions standards. U.S. Sen. Sheldon Whitehouse (D-R.I.) was scheduled to participate in a conference call Wednesday with executives from Sierra Club, Environment America, Public Citizen, Greenpeace, and Safe Climate Campaign. The speaker panel took place on the eve of Ford Motor Co.’s third quarter financial statement, with Ford, Volkswagen, and other automakers called on to avoid gutting the clean cars standards by “colluding with President Donald Trump to roll them back.”  Last month, the environmental groups sent letters to executives at Ford, General Motors, Fiat Chrysler, Toyota, Volkswagen, and other automakers urging them to “discontinue any and all efforts to weaken or delay the implementation” of the 2025 fuel efficiency standards. In August, after several meetings with auto executives, Environmental Protection Agency Administrator Scott Pruitt announced plans to review the standards. Automakers have said the costs of increasing fuel economy standards in the next phase would be financially onerous, and doesn’t reflect current market conditions where cheap gasoline prices are keeping consumer demand leaning toward trucks, crossover, and SUVs, over small cars and electrified models.

Honda and Nissan reveals in Tokyo:  The Honda Sports EV Concept was shown Tuesday at the Tokyo Motor Show. It follows the Urban EV Concept shown last month in Frankfurt. Like the Urban paying tribute to early Honda hatchback models, the Sports EV is said to honor classics like the Honda S600 and S800 coupes that were able to compete in the 1960s with MG and Triumph sports cars. Nissan just revealed the IMx concept electric vehicle, which the company says will be a long-range electric SUV tapping into Nissan’s Intelligent Mobility campaign. Along with electric propulsion, it will get the automaker’s ProPilot automated driving hardware.

NEVS partners with DiDi:  Swedish automaker NEVS AB and Chinese mobility company DiDi Chuxing have forged a strategic partnership. A formal launch took place Wednesday in Trollhättan on Wednesday, in presence of among others the Swedish Prime Minister Stefan Löfven. NEVS (National Electric Vehicle Sweden) is producing electric cars adapted from Saab assets. The company is backed by Chinese investors. The new automaker debuted an electric 9-3 at the 2017 CES Asia trade show. DiDi is China’s largest shared mobility service, and cut Uber out of the market last year through a major investment and no-compete deal. NEVA and DiDi plan to develop an electric vehicle fully optimized to DiDi’s mobility service. That includes going the route of self-driving and on-demand mobility services of the future. It will probably tap into the InMotion concept that NEVS unveiled in June. The first vehicle used in the new cooperative venture will be the NEVS 9-3.

For Today: Twelve cities commit to zero emission vehicles, Fast food fats and oils gaining LCFS credits in California

Mayors commit to ZEVs:  Twelve cities have committed to converting over to zero emission vehicles by 2030 by signing the C40 Fossil-Fuel-Free Streets Declaration. The mayors of London, Paris, Los Angeles, Copenhagen, Barcelona, Quito, Vancouver, Mexico City, Milan, Seattle, Auckland, and Cape Town have signed the declaration that commits to procuring only zero-emission buses from 2025, and to make sure a major area of their city is zero emission by 2030. Commitments include increasing usage of walking, cycling, public transportation, and shared transport; reducing the number of polluting vehicles on their streets; converting over to ZEVs for their city fleets; and collaborating with suppliers, fleet operators, and businesses to shift over to ZEVs and reduce vehicle miles in these cities. Paris mayor Anne Hidalgo, who led the ban for elimination of fossil fuel-powered vehicles in the city, is serving as C40 chair. “Working with citizens, businesses and mayors of these great cities we will create green and healthy streets for future generations to enjoy,” Hidalgo said.

The state of AVs:  A new global map by Bloomberg Philanthropies and The Aspen Institute shows were autonomous vehicles stand in cities around the world. They’re broken up into two categories – Piloting Cities and Preparing Cities. Piloting cities have conducted tests of self-driving cars, or will do so in the near future. Preparing cities are conducting long-range surveys of the regulatory, planning, and governance issues raised by autonomous, but have not yet started pilot projects. The US leads the way, followed by the UK and China. Cities make the most sense to study, with technology giants, automakers, and startups focusing on these markets. That’s where future AV customers are expected to live and work, according to the study.

Fast food waste supporting renewable diesel:  California is seeing more of its fuel coming from fats and oils used by fast food restaurants as fleets comply with the Low Carbon Fuel Standard. Seven years after the credit system was initiated for producers of low-carbon fuels, cities and companies are using renewable diesel coming from fats and oils for all types of vehicles, including fire trucks to UPS delivery trucks. Bloomberg reported that the value of the LCFS credits for renewable diesel exceed those from electric vehicles fourfold and are second only to ethanol. The market “is definitely growing,” said Dayne Delahoussaye, head of Neste’s North American public affairs, the largest supplier of renewable diesel in California. “Renewable diesel has become very popular with the refining community as a good tool to meet obligations.”

 

For Today: Tesla preparing to build EVs in China, DOE funding extreme fast charging

Tesla readying for China plant:  Tesla, Inc., yesterday reaffirmed that it’s been in talks with the Chinese government to set up shop in a free trade zone in the Shanghai region – without indicating whether an agreement has been met. Those talks were reported to have been underway earlier this year. Tesla would still have to pay the 25% import fee that it’s had all along in China, but the company would have costs reduced not having to ship the cars into that market. It would also allow Tesla to stay true to its identity of being an independent operator by avoiding the traditional joint venture with a Chinese automaker that Tesla’s competitors have been doing for years. China is becoming more flexible to grow its local EV market and remain No. 1 globally, to clean up air pollution in its growing cities, and to free up the nation from foreign oil imports. The electric carmaker has been moving in this direction in recent years, with CEO Elon Musk thinking that it’s the most significant market in the world for company growth. The company now has a 5% stake from Chinse internet company Tencent Holdings, which should support Tesla’s strategy in that market.

Ethanol beats Big Oil:  President Donald Trump is keeping his campaign promise to ethanol-producing states by backing off proposed biofuel reductions recently announced by the Environmental Protection Agency. In a letter dated Oct. 19, EPA administrator Scott Pruitt said that the agency will keep renewable fuel volume mandates at or above proposed levels, reversing a decision to cut the mandates demanded by oil companies and refineries. It’s a big win for corn-growing states like Iowa, Nebraska, and Illinois, which are economically dependent on demand for corn-based ethanol. Companies such as PBF Energy Inc. and Valero Energy Corp. have been pleading with Trump to revise the costly mandate, and it at first appeared he would be going in that direction.

UK alliance for EV growth:  Automakers are working together in the United Kingdom to better educate car shoppers on the benefits of owning and charging electric vehicles. The Electric Vehicle Experience Center in Milton Keynes, north of London, will feature a multi-brand EV showroom. Sales pitches aren’t allowed, as it will be a showcase for explaining the technology to visitors. Funding participants include BMW, Kia, Mitsubishi, Nissan, Renault, and Volkswagen, along with Chargemaster, a UK-based supplier of charging stations. Chargemaster CEO David Martell said the showroom will be carefully watched, and could be repeated elsewhere in the UK if it works.

LG partners with Qualcomm:  LG Electronics is entering the self-driving car market through an alliance with Qualcomm to jointly research and develop autonomous, connected car technology. The two companies have opened a joint research center in Seoul, with another one slated by open in that city by the end of 2018. The partners will be focusing on fifth-generation wireless communications technology – called 5G – that will deliver data much faster than the current technology. The move supports the three major trends in the auto industry – electrification, autonomous technology, and on-demand mobility services. It will also tie into Qualcomm’s efforts to bring wireless electric vehicle charging as a mainstay to vehicles of the future.

DOE funding extreme fast charging:  The U.S. Energy Department today announced that up to $15 million will be available for research projects on batteries and vehicle electrification technologies to enable growth in fast charging. It includes electrification projects that will support the development and verification of electric drive systems and infrastructure for what it defines as “extreme fast charging” (400-kW). It’s being done through the DOE’s Vehicle Technologies Office (VTO), which funds early-stage, high-risk research to support improved vehicle efficiency, lowers costs, and increases use of secure, domestic energy sources. It’s part of a VTO-funded report that will be released today, where researchers at Idaho National Laboratory, Argonne National Laboratory, and the National Renewable Energy Laboratory identified technical gaps to bring an extreme fast charging network to the U.S. The full report can be found on the VTO reports and publications page.

For Today: Alphabet investing in Lyft, Greenkraft receives CARB certification

Alphabet investing in Lyft:  Ride-hailing firm Lyft may be gaining $1 billion in a funding round organized by CapitalG, an investment arm within Alphabet, Google’s parent company. Alphabet’s self-driving driving division, Waymo, created an alliance with Lyft earlier this year on an autonomous vehicle project. Another funding division within Alphabet in 2013 made a $250 million investment in Lyft’s competitor, Uber. That ended badly after Uber entered the world of testing self-driving cars, with a major lawsuit coming from Waymo for allegations of intellectual property theft by Uber. The CapitalG funding round isn’t closed yet. One part of the agreement would be having CapitalG partner David Lawee join Lyft’s board.

UQM and Lightning Systems alliance:  UQM Technologies, Inc. announced that it will collaborate with Lightning Systems to support Ford Transit concept vehicles for Lightning Systems’ beta programs through Ford’s Advanced Fuel Qualified Vehicle Modifier (eQVM). Lightning Systems is already in production with hydraulic hybrid applications, and is in the process of expanding its customer offerings to electric vehicles. This early production program supports the initial vehicles that are expected to be delivered to customers during the first quarter of 2018. “This relationship will allow us to provide leading edge technology that will exceed our customers’ expectations for high quality and cost-effective zero emissions vehicles,” said Tim Reeser, President and CEO of Lightning Systems.

Greenkraft receives CARB certification:  Greenkraft Inc. announced that its 8L V8 gasoline, compressed natural gas (CNG), and propane autogas (LPG) fuel-injected engine received new certification from the California Air Resources Board’s On-Road New Vehicle and Engine Certification Program. The company’s 8L V8 fuel-injected engine achieved a NOx emission value less than 0.02 g/bhp-hr, which meets the optional near-zero NOx level set by CARB, on three different fuels: LPG, CNG and gasoline. The Greenkraft 8L spark-ignited engine is among the first to be certified at this near-zero NOx level on three different fuels, according to Greenkraft. It’s available as a stand-alone product, or it can be installed ln one of Greenkraft’s 26,000 GVW or 33,000 GVW heavy-duty trucks.

For Today: Plug-in vehicle sales up 80% in China, Amazon gets patent for drone EV charger

China EV sales strong:  China is seeing a very strong plug-in electrified vehicle market this year. During September, the market saw 59,000 plug-in vehicle sales, up 80% over September 2016. Year to date, China had 338,000 units sold, up 48% over the first nine months of 2016. Battery electric and plug-in hybrid vehicles made up 1.8% of new vehicle sales in the market, up from 1.5% a year ago. The top five sellers during September, in rank order, were the BAIC EC-Series, the Zhidou D2 EV, the BYD Song PHEV, BYD Qin PHEV, and Chery eQ. BYD took 19% of the “new energy vehicle” sales for the month, beating former leader BAIC, which had 15% of the share.

Model 3 seeing slower forecast:  Telsa, Inc., will be delivering 100,056 total vehicles in 2017, with 3,005 of them being Model 3s. It will be far from the original goal, which included ramping up to build 5,000 Model 3s per week in December. That forecast comes from investment firm Oppenheimer & Co., which also said that Model 3 manufacturing bottlenecks have been slowing down the original delivery forecast for the new electric car. The research note to Oppenheimer investors came from a New York dinner meeting with Tesla management. Executives reaffirmed that all the needed equipment for Model 3 production has been installed, and that the EVs are moving their way through the production line. Musk dispelled a recent report claiming that large portions of the Model 3 were being built by hand.

Amazon drone chargers:  Amazon has gained a patent that will allow the company to create a drone that can charge electric cars, including EVs that are still in driving mode and need more power to get to a charging station. The patent granted to the tech giant also includes a rooftop docking station that the drone can land on to stay connected with the EV and provide power while it continues the trip. It would mean working directly with automakers to be adaptable to the technology, or making aftermarket modifications. The product isn’t scheduled to be launched anytime soon, but it ties into Amazon’s overall strategy tied to drone delivery services. The company could see demand for the product, with sales of EVs increasing each year.

For Today: Polestar 1 could be longest range plug-in hybrid, Toyota showing long range fuel cell vehicle

Polestar 1 could be longest range PHEV:  Volvo Car Group took a step forward on its commitment to electrify its fleet through the new Polestar division. The Polestar 1 plug-in hybrid is scheduled to roll off the production line in mid-2019. It’s a two-door, 2+2 seat coupe with an ‘Electric Performance Hybrid’ drivetrain capable of going about 93 miles on battery power. That could be less in the U.S., with Polestar not specifying whether range is based on European or U.S. standards. If it is 93 miles, it would be the longest range plug-in hybrid electric vehicle on the market. It will have a lot of power, with an output of 600 horsepower and 1000 Nm of torque, appealing to the high-performance car buyer. It will be built on Volvo’s Scalable Platform Architecture (SPA) but approximately 50% is new and created by Polestar’s engineers. A carbon fiber body reduces bodyweight. The company confirmed plans are in place for three Polestar models to be built at a production facility in China. Polestar 2 will be a battery electric vehicle, mid-sized to compete with the Tesla Model 3. It’s slated to start production in late 2019 and will have higher production volumes than the Polestar 1.

Autonomous Bolts in NYC:  General Motors will be testing out self-driving Chevy Bolts in New York City through its Cruise Automation subsidiary. The automaker will be the first to test Level 4 autonomous vehicles in the state, according to Governor Andrew Cuomo; Level 4 allows the car to go into fully autonomous mode with the driver capable of taking control. GM engineers will travel along in the driver’s seat to monitor performance, with a second person riding in the passenger seat. The state of New York has taken a cautious approach to testing out self-driving cars, with its current rules expiring on April 1, 2018. Participating automakers need to list specific vehicles being used for the tests in their application, and each tested vehicle must be covered by a $5 million insurance policy. Another rule under the state’s law is for each testing company to pay for a police escort to accompany the autonomous test vehicle. Other states are taking a more flexible approach to testing autonomous vehicle, with New York requiring the most oversight.

Toyota showing hydrogen-powered concept:  Toyota will be showing the Fine-Comfort Ride fuel cell concept vehicle next week at the Tokyo Motor Show. The company claims it can be refueled at a hydrogen station within three minutes, and will have 1,000 kilometers (620 miles) of driving range. That would be double the U.S. rating of 312 miles of range for the Toyota Mirai; however, Toyota said that the 1,000 km range rating is based on Japan’s JC08 test cycle, which would likely be farther than the U.S. rating. The concept car will also come with artificial intelligence and automated driving features, Toyota said. The “premium saloon” will have room for six passengers. The seat layout can be flexibly adjusted to make the vehicle as comfortable and user-friendly as possible.