electric vehicles Archives

Two studies look at the state of vehicle electrification

ChargePoint and McKinsey & Co. have put out studies in the past week offering an interesting look at the state of plug-in electrified vehicles and the charging infrastructure in the U.S. and abroad.

California continues to be the leading U.S. market for registered PEVs on its roads, with about half of all battery electric and plug-in hybrid electric vehicle sales taking place there, according to the ChargePoint study. Georgia, known for its generous PEV incentives, was No. 2 on list. Washington was No. 3, but a surprising ranking was Oregon coming in at No. 9 when it’s been very competitive with Washington and California as part of the PEV charging highway infrastructure. Florida and Texas came in at Nos. 4 and 5 on list. Four other strong markets made the list with New York at 6, Michigan at 7, Illinois at 8, and New Jersey at No. 10.

As for the PEV market growth, another surprising state made the list, with Utah at No. 1, followed by Nevada, North Carolina, Colorado, Kansas, New Hampshire, Pennsylvania, Virginia, Florida, and Arizona. ChargePoint compiled the report’s findings with date provided by IHS Market through the third quarter of 2016. Growth figures for these top 10 states represent growth over Q3 2015.

As for cities seeing the strongest presence based on PEVs in operation, California had three of the cities, with Los Angeles at No. 1 over San Francisco at No. 2 (another surprise), and San Diego at No. 5. New York came in at 3, Atlanta at 4, Seattle at 6, Chicago at 7, Washington, D.C. at 8, Detroit at 9, and Portland, Ore., at 10.

As for PEV growth cities, several of them are considered to be significant business centers for conferences and meetings. Charging stations are being installed at airports, hotels, retail stories, and workplaces, supporting regions that have economic growth and interest in PEVs. Las Vegas was the No. 1 city in PEV growth in the past year, followed by Kansas City, Raleigh/Durham, Denver, Miami, Phoenix, Philadelphia, Portland, San Diego, and Los Angeles.

The charging company also reported on the Top 5 PEVs sold in the U.S. last year. The Tesla Model S was No. 1, followed by the Chevy Volt, Ford Fusion Energi plug-in hybrid, Tesla Model X, and the Nissan Leaf. According to Baum and Associates and InsideEVs.com, it split at 53% battery electric and 47% and for plug-in hybrids.

Gasoline prices were an interesting trend to see studied in the report. PEV sales used to be very tied to gas prices, but for over two years these prices have stayed down in and stable in the U.S. Consumers had been very interested in saving money. Now the sales chart shows that PEV sales have gone up as gas prices have stayed down. Consumers are interested in PEVs for reasons beyond gas savings, according to the study.

McKinsey on seeing breakthroughs in PEV sales

A new study by global consulting firm McKinsey & Co. looked at where consumers in key markets, and automakers, see adoption of PEVs going in the next few years. Electrifying insights: How automakers can drive electrified vehicle sales and profitability digs into consumer tastes and interests, and where auto manufacturing is heading in response.

Two studies were conducted with consumers interested in PEVs and consumers who own them. About 3,500 people were surveyed in the U.S., Germany, and Norway; and a second study was done with about 3,500 people in China interested in, and owning, PEVs.

The core issue for automakers is being overwhelmed by new technologies to invest in to meet emissions standards around the world, and to prepare for growing interest in PEVs of all types. As automakers invest a great deal of capital in fuel efficient technologies like start-stop, turbocharging, and lightweighting, investing sufficiently in battery packs and other needed components loses some of its value. That’s been intensified by growing interest in connected, autonomous vehicle systems.

Consumers are becoming more interested, and have a few factors they’re questioning and considering:

About half the surveyed consumers in the U.S. and Germany say they understand how PEVs work. Between 30-and-45 percent of vehicle buyers in the U.S. and Germany, respectively, have considered a PEV purchase. Strong demand is being seen in Norway and China, where incentives have been ample and have been seen in sales results.
The study sees reaching the other half of consumers in these countries to be an important opportunity, but the message will need to be revised.
Making batteries with more capacity will be a big part of getting past limited sales, and getting their cost down for manufacturers is part of it. The study says it’s costing automakers about $13,600 for the battery pack with 60 kWh of power. There are other costs that go into it such as the electric motor, high-voltage wiring, on-board chargers, and inverters.
There’s also keeping it all within economies of scale. Adding a new PEV and building it at decent numbers means a lot of capital being place in opening up a new factory, or opening lanes at an existing plant, tooling, R&D and getting the product to market through dealer networks retail stories, and launching marketing campaigns.
Premium luxury cars by Tesla Motors and a few competitors are taking a lot of the sales, but there’s been a bit of a void for consumers interested in a wide selection of small cars, SUVs, and crossovers. McKinsey sees this as one of the opportunities, especially for consumers living in cities looking for more options and spending less on their vehicles.
Automakers and dealers would be smart to sell PEVs from a different perspective. Instead of purchase price and lease deals, focusing on total cost of ownership (TCO) would be a better way to go. For example, PEV owners are typically paying about 20% to 40% less on maintenance costs over a five-year period compared to vehicles with internal-combustion engines.
Growth in ride-hailing, carsharing, and peer-to-peer car rental are expected to have strong PEV market potential, according to McKinsey. The study found that more than 30 percent of consumers surveyed would prefer a PEV model over an ICE when using ride-hailing services such as Uber and Lyft; and about 35 percent would pay a premium to ride in a PEV.
Carsharing provides an opportunity to get consumers to try out a PEV through promotional offers. Companies such as Maven, Zipcar, and Car2go could tap into this market potential.
Another service to provide could be P2P (peer-to-peer) car rental. Consumers who own a PEV could make money renting out their car when it’s not being used.

Taking a look at expiring federal tax credits and available state incentives for PEVs

Nearly all the market forecasts you’ll read on plug-in electrified vehicles mention government incentives as essential for seeing sales numbers grow. These include tax credits and rebates, and in the U.S. that breaks down to available federal tax credits and a few states that are offering rebates and other attractive incentives.

As for the federal tax credits that come with purchasing a PEV, the highest credit of $7,500 applies to battery electric vehicles (with a few exceptions); plug-in hybrids are usually seeing tax credits in the $4,000 to $5,000 range. These tax credits do phase-out out eventually, based on how many PEV units have been sold. InsideEVs has published an analysis piece looking at the current state of tax credits per automaker.

Whether the new Trump administration will work to continue the tax credits is unknown. The program could be reviewed and adjusted sometime in the second half of 2017. It’s also possible that the new administration could let tax credit incentives fade out and disappear by not renewing them.

The IRS defines the tax credit phase-out process as: “The federal tax credit begins to phase out for a manufacturer’s vehicles when at least 200,000 qualifying vehicles have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009).”

Each automaker’s qualifying PEV receives a federal credit until the 200,000th plug-in vehicle is registered inside the U.S.; at that point, tax credits are reduced and then phased-out over an allotted time period. Once the 200K mark is reached, the full tax credit continues through the end of that quarter and until the end of the next one. Credits on a $7,500 tax credit will drop to $3,750 for the next six months, and then to $1,875 for the next six months before going away. The chart below shows the phase-out quarter being the estimated time period when the tax incentive disappears.

Notes:

BEV = battery electric vehicles or all-electric vehicles. PHEV = plug-in hybrid electric vehicles.
Several of the vehicles listed on the U.S. Department of Energy’s Fueleconomy.gov have been discontinued from production, such as the Cadillac ELR, Chevrolet Spark EV, and Honda Accord Plug-in Hybrid. The chart above only lists vehicles currently being sold at retail lots.
Phase-out estimates include vehicles previously sold qualifying for tax credits that have ended production and are no longer being sold.
$7,500 tax credits usually apply only to battery electric vehicles; however, manufacturers were able to get $7,500 credits for a few plug-in hybrids, including the Chrysler Pacifica Hybrid, Chevrolet Volt, and Via Motors’ extended range trucks and vans.
Fuel cell vehicles (Toyota Mirai and Honda Clarity) qualified for $8,000 federal tax credits, and the Hyundai Tucson Fuel Cell for a $7,500 credit. These tax credits had been set to expire at the end of 2016 but could later be extended.
Manufacturers that have no phase-out estimates listed in the chart will take beyond 2021 to see their phase-out, as they’re far from reaching the 200,000 units registered units in the federal tax credits.

Tesla Motors has the earliest phase-out in this forecast. The Tesla Model 3, which will launch by late this year, is behind the estimate of Tesla being the first automaker to lose its available tax credits.

As for state incentives, Tesla reports that 15 states offer electric vehicle incentives, along with the Canadian provinces of Ontario and Quebec. California’s attractive $5,000 rebate not long ago was split in half to $2,500; Rhode Island is the second state to offer a $2,500 rebate, which is the highest available rebate in the U.S.

Tesla reports that only four states will have HOV carpool lane stickers available as an incentive to buy in that state. These states are: Arizona, Hawaii, Nevada, and Utah. California isn’t listed as one of them, though the state reports that white clean air stickers for battery electric and hydrogen fuel cell vehicles will be available through the end of 2018; and green stickers for plug-in hybrids will be available indefinitely.

Incentives vary by state, where some programs include PEV purchasing and HOV carpool lane stickers, and others include charging and parking incentives. Plug In America offers a state-by-state PEV program map with detailed reporting by state.

This Week’s Top 10: Electrified highlights from Detroit auto show, Green car sales in December

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…….

Detroit auto show: The North American International Auto Show has not been dominated by certain vehicle types, such as pickups and SUVs might have done in the past. Plug-in electrified vehicles have played their part, along with futuristic concept vehicles and mobility services. Back-to-back with the influential CES 2017 show in Las Vegas, the two car shows have had a few things in common. Volkswagen’s I.D. Buzz has taken a lot of attention. The electric microbus of the future is built on the MEB platform and may be able to travel 270 miles once fully charged. It offers maximum space utilization with all-wheel drive, electric motors at the front and rear axles, a fully autonomous driving mode (“I.D. Pilot”), and a new generation of display elements and controls…. The all-new Chevy Bolt electric car continues to win big awards, taking the North American Car of the Year award. The Chrysler Pacifica minivan was named North American Utility of the Year, the first time the award has been given out, and it also comes in a plug-in hybrid variation….. BMW showed its new 530 iPerformance plug-in hybrid. At 248 hp, it will go to 60 mph in about 5.9 seconds. It will also deliver up to 14 miles in all-electric mode, earning an EPA-rated 64 MPGe. The rear-wheel drive version will start at $51,400 while the all-wheel drive xDrive version will begin at $53,700…… Ford presented its vision for the “City of Tomorrow.” It looks at how near-term mobility advancements – including autonomous and electric vehicles, ride-sharing, ride-hailing, and connected vehicles – interact with urban infrastructure and create a transportation ecosystem to deal with challenges such as gridlock and air pollution. Ford’s City Solutions team has been working with cities around the world to propose, pilot, and develop mobility solutions. The team also is beginning to collaborate with Bloomberg Philanthropies and its global coalition of mayors…… Toyota rolled out a redesigned 2018 Camry with more interior space, advancements in its drive system, and a hybrid version that gets Prius-like fuel economy……… Waymo CEO John Krafcik announced that the former Google self-driving car division has been able to drop the cost of its Lidar sensors from about $75,000 per vehicle to about $7,500, which will help lower the cost of autonomous vehicle technologies for interested automaker partners. These new Lidar systems will be installed soon in 100 self-driving Chrysler Pacifica minivans that Waymo acquired from Fiat Chrysler Automobiles…… Audi unveiled the all-new Q8 SUV plug-in hybrid that will be out in production next year. It will be Audi’s second plug-in hybrid to enter the U.S. market, following the Audi A3 Sportback e-tron station wagon.
Green car sales: The Tesla Model S took back the No .1 spot in plug-in vehicle sales during December, bumping out the Chevy Volt, according to sales figures from HybridCars.com and Baum & Associates. Chevrolet did have a good month with the brand-new Chevy Bolt coming in at No. 10 with 579 units sold, far more than a few other electric cars had seen at their birth in the marketplace. The Volt came in at 3,691 units sold (following the Model S at 5,300 in estimated sales). The Volt beat its previous all-time of high 3,351 sold. The Toyota Prius Prime did pretty well, closing the month at 1,641 units sold. Plug-in sales were up 64.8% over the previous month and up 73.9% over December 2015. Hybrid sales were up 21.2% over November and up 6.5% over December 2015.
Faraday Future at CES: While the future of Faraday Future has been called in question with key executives leaving and as lawsuits have been filed by unpaid suppliers, CES 2017 turned out to be about as good for the startup as it was the year before. Revealing its FF91 electric SUV has gone well so far, with the company announcing that 64,124 reservations were placed within 36 hours of its launch at the show. The company didn’t clarify how many in this group made their $5,000 down payment. Faraday Future says that it’s a production car and deliveries will begin in 2018. Will the company be able to get through its tough times and have its North Las Vegas consistently running at full speed?
ChargePoint Express Plus: ChargePoint has launched ChargePoint Express Plus, a fast DC charging solution that is ready for the electric cars, buses, and trucks. Express Plus can charge today’s newest electric vehicles, such as the Chevy Bolt, at their maximum rate; is equipped to charge upcoming EVs such as the Tesla Model 3 and is ready to deliver maximum charging speed to EVs coming to market in the years to come. A modular platform designed for businesses and charging centers along major roadways or transit depots, Express Plus can deliver up to 400 kilowatts (kW) to an EV, the company said in its release.
Gigafactory starts up: Tesla Motor’s Gigafactory in the Reno, Nevada, area has started rolling its first battery cells off production lines to power the company’s energy storage products and, before long, the Model 3 electric car. More than 2,900 people are already working at the facility, and more than 4,000 additional jobs (including temporary construction jobs) will be added during 2017 through the partnership between Tesla and Panasonic Corp. Tesla also plans to begin shipping the Powerwall 2 home batteries by the end of this month, at prices that by some estimates are 30% cheaper than the closest competitor’s product.
Chrysler Portal: Chrysler unveiled its 250-mile range Portal electric minivan Concept at CES 2017 that may have autonomous vehicle capabilities. The new EV will offer touch screens, ports, and social media options to find interest from Millennial car shoppers. Parent company FCA said it will be an urban mobility vehicle of the future. The six-passenger minivan “explores the possibility of what a family transportation vehicle could look like,” Chrysler said.
Toyota AI concept car: Toyota Motor Corp. revealed the “Concept-i” at CES 2017. Embedded in the concept car is “Yui,” Toyota’s artificial intelligence system. Yui monitors driver behavior, interacting with the driver to facilitate the driver-vehicle relationship customized to the driver’s tastes, patterns, and road conditions. Toyota said it was built from the inside out, with a focus on making it immersive, energetic and, approachable. The Concept-i “will enhance that relationship between car and driver.” Toyota said it will be testing some of the concept vehicle’s technologies on Japan’s roads in the next few years.
Volvo carsharing: Volvo Cars will establish a new shared mobility business unit as part of a broad expansion of its carsharing and mobility services strategy. It will be based around Sunfleet, one of the world’s first car sharing companies that has been operated by the automaker since 1998. Based in Sweden, the Sunfleet division has around 50,000 subscribers generating approximately 250,000 transactions in more than 50 Swedish cities, the company said.
Clean Energy stock value: Natural gas prices have risen over 30% in the last two months to current levels of around $3.30 per million British thermal units since the beginning of November 2016. That rally in pricing should be good for business for Clean Energy Fuels, according to a Seeking Alpha investor and analyst. Clean Energy should be able to enter into fuel contracts at better prices. Growth may come from the transit bus and refuse truck markets. About 60% of new refuse trucks are operating on natural gas in the U.S., the analyst said.
Battery cells for EVs: Volkswagen Group is weighing and balancing a big decision as it prepares to hit its ambitious target of manufacturing up to three million electric vehicles per year by 2025. The German automaker is reviewing bids from six battery cell suppliers for its EV lineup. Several other automakers are in a similar situation as VW – should they manufacture their own battery cells? Tesla Motors and Panasonic have started this process at the Gigafactory in Nevada this month, but other automakers are tending to see outsourcing to more than one battery cell manufacturer as the necessary way to go.

Crossovers, New Plug-ins, and Mobility Setting Tone at L.A. Auto Show

This year’s Los Angeles Auto Show blended three automotive technology trends together:

Popularity of crossover SUVs.
Launching new plug-in electrified vehicles (PEVs).
Showcasing mobility technologies of the future at the all-new AutoMobility LA.

tesla-model-x-towing-an-airstream-trailer Previously known for being the showcase for electric car launches and ride-and-drives, crossover SUVs are taking more of the attention this year. That doesn’t mean that new electrified vehicles and advanced mobility technologies were forgotten.

Automaker displays this year at the Los Angeles Auto Show have been weighted toward crossover SUVs as market demand grows in an era of low gasoline prices and higher profit margins selling utility vehicles over PEVs. The all-new Ford EcoSport debuted ahead of the L.A. Auto Show on Monday, one of five crossovers and smaller SUVs that were premiered. Other small SUVs being shown are the Toyota C-HR, Jeep Compass, Mazda CX-5, and Alfa Romeo Stelvio.

Ford says that the non-electrified all-new 2018 EcoSport is a compact SUV designed to be “the perfect partner for a life full of surprising possibilities. What you need when you need it. Trim outside, spacious inside, it’s nimble and ready for just about anything.”

While Volkswagen has pledged to roll out 30 new PEV models by 2025, the gasoline-powered 2017 Atlas crossover has been its star at the L.A. Auto Show. On the plug-in electrified vehicle debut side, VW did announce changes to the e-Golf. The 2017 Volkswagen e-Golf comes with a new 35.8 kWh battery and 124 miles of range.

Other electrified vehicle announcements and displays at L.A. Auto Show included:

Tesla Motors: Tesla exhibited a Model X towing an Airstream trailer (see photo above). Inside the trailer, you could view a color display board for exterior and interior color combining options. A towing hitch was attached to the Model X in the display hall; the hitch can carry trailers that go up to 5,000 pounds. It was the first time Tesla has displayed an exhibit at the L.A. Auto Show in a few years.

Hyundai Ionic Electric: Not a new debut, Hyundai has increased the electric vehicle’s range to 124 miles instead of 110 previously announced, and it goes on sale late this year. Hyundai also made three announcements about mobility services connected to the Ioniq during the L.A. Auto Show. The new “Ioniq Unlimited” subscription-based ownership experience has one fixed payment that includes unlimited mileage, electric charging costs, scheduled maintenance, wear items and all typical purchase fees such as registration. A second program is being carried out with WaiveCar, an electric carsharing program running on advertising dollars. Consumers can drive an electric Ioniq wrapped in advertising with a rooftop mounted digital display for two hours at no charge.

For the third announcement, Hyundai revealed an autonomous version of the all-electric Ioniq during the show. The company will offer rides in the self-driving version at the Consumer Electronics Show in January. It uses a Lidar system with three advanced radars combined with three forward-facing cameras, blind-spot sensors, GPS antenna and “smart cruise” radar to provide 360 degrees or protection and sensing.

Jaguar I-Pace: Jaguar showed what will be the first step in its electrification plans. The all-electric I-Pace crossover SUV will have a 90-kWh battery for 220 miles of range. Jaguar says that it will be a high performance crossover with all-wheel drive propelled by dual electric motors, one on each axle. Its combined output of 400 horsepower and 516 pound-feet of torque. It’s expected to be released in 2018.

McLaren Hyper-GT: McLaren’s hybrid super concept car is said to follow the iconic McLaren F1, which has been a star at Le Mans for nearly 25 years. It will be the “spiritual successor to the F1,” according to the company. The prototype Hyper-GT is coming out next year and a production version is set for 2019.

Chrysler Pacifica Hybrid: While “plug-in” was dropped from the Pacifica’s name for the non-internal combustion gasoline engine version, it is a plug-in hybrid electric vehicle. It’s Chrysler’s first plug-in model to enter the U.S. market beyond test models. It is also an historic moment for Chrysler and parent company FCA Automotive. The gasoline-engine Pacifica is replacing the Chrysler Town & County and Dodge Grand Caravan as its minivan offering. The Caravan and its other variations had essentially created the minivan segment in the 1980s, and the Pacifica Hybrid will make for the first electric passenger van to be sold mass market. The 2017 Chrysler Pacifica starts at $41,995, not including destination. With the available $7,500 federal tax credit, customers can get the Pacifica Hybrid is for as low as $34,495, not including any state or local incentives. It was certainly a pleasure to drive and learn more about during the L.A. Auto Show’s ride and drive.

Cadillac CT6 PHEV: While earlier this year, Cadillac announced that its low-selling ELR plug-in hybrid would be discontinued, there will be a replacement coming out soon. Starting early next year, the CT6 sedan will have a $76,090 price tag before the $7,500 federal tax credit and potential state incentives lower the price. It comes with powertrain technology similar to that used in the Chevy Volt, and will be getting 30 miles of electric range.

Mini Cooper Countryman S E ALL4: BMW’s Mini brand has launched its first plug-in hybrid. The Countryman is larger than the original Mini Cooper with about 30 percent more cargo space. It comes with a 1.5-liter turbo thee-cylinder engine merged with electric propulsion, a 7.6-kWh battery, and a six-speed auto transmission.

Mitsubishi eX Concept: Mitsubishi’s Outlander plug-in hybrid SUV has been a top electric seller in Europe and will finally be rolling out in the U.S. next year. The all-electric eX Concept is said by Mitsubishi as a hint to the future. As a new part of the Renault-Nissan Alliance, there’s been speculation over whether Nissan and Mitsubishi will share electric vehicle technologies.

Chevrolet Bolt: The all-electric Chevy Bolt took Green Car Journal’s 2017 Green Car Of The Year award on Thursday morning. Other finalists included the BMW 330e iPerformance, Chrysler Pacifica, Kia Optima, and Toyota Prius Prime. Green Car Journal editors selected the 2017 Bolt for its “impressive 238 mile zero-emission driving range, stylish design, pleasing driving dynamics, and welcome suite of advanced and connected technologies.” It will start showing up next month in dealer lots.

AutoMobility LA: AutoMobility LA merged the previous Connected Car Expo and the L.A. Auto Show into a special three-day event just prior to opening up the L.A. Auto Show to the general public. Technology Pavilion was held right outside the convention center, with vehicle and booth displays and a speaker hall.

Olli: “Hello, I’m Olli. I’m self-driving. I’m adaptable. I’m efficient, and I’m around the corner. At Local olli-at-la-auto-show Motors.” That was the first display you’d see when walking in the Technology Pavilion last week. Local Motors specializes in co-creation design projects, such as the 3-D-printed, self-driving Olli minibus that’s currently being tested in pilot programs. It appears to be working on this electric, self-driving minibus project with Amazon, as you can see displayed in the exhibit photo. Designed to transport up to 12 riders, Olli uses IBM Watson’s “Internet of Things” cognitive computing capabilities to learn from data generated from sensors on the vehicle and encourage an interactive transit experience. Phoenix-based Local Motors is also working on a range of designs for 3-D-printed cars. The company recently sold some Olli units in Copenhagen and plans to announce its U.S. debut in next few months. It’s currently being tested on private roads in the Washington, D.C. area. On Wednesday of last week during AutoMobility LA, Olli shuttled Local Motors CEO Jay Rogers to his keynote address.

ReachNow: BMW’s car sharing service announced four new mobility services and a Brooklyn location last week. During a press conference at AutoMobility LA on Nov. 15, ReachNow described four pilot programs to enhance its services: Ride, Reserve, Share, and Fleet Solutions for residential buildings. The car sharing service also described its expansion into Brooklyn, N.Y., its third North American city and the company’s first expansion beyond the west coast. The new services expand ReachNow’s offerings to include on-demand ride services similar to Uber and Lyft; an opportunity to schedule individual recurring rides; and exclusive use of BMW i3 electric vehicles and BMW 3 Series onsite at select apartment and condo complex locations. Vehicle offerings include the electric BMW i3, BMW 3 Series, Mini Cooper, and Mini Clubman.

Divergent 3D: Headed by former Coda Automotive CEO, Kevin Czinger, the startup offers 3D printing divergent-3d-test-car-at-la-auto-show technology and a combination of aluminum and carbon fiber. The company’s concept was designed to change the way cars are manufactured by using technology that reduces pollution and the amount of materials. Divergent 3D’s Blade printed supercar greeted visitors in the atrium of the LA Convention Center. The company also showed a 3D printed motorcycle, and a sports car frame displayed, as seen in this photo, during the L.A. Auto Show.

Hyperloop One: CEO Rob Lloyd spoke during AutoMobility LA about Hyperloop One and meeting on-demand autonomous networks that will redefine cities and rewrite the rules of transportation for the future. The former Cisco executive became the startup’s CEO last year in September. The startup company, inspired by Tesla CEO Elon Musk’s 2013 concept design, is creating a tubular form of high speed transportation that can go 700 mph. On Friday, the company settled a lawsuit with Brogan BamBrogan, a co-founder and chief technology officer, and three other former executives, over alleged wrongdoing by management and investors.

This Week’s Top 10: VW e-Golf and other LA Auto Show e-launches, BMW shooting for 100,000 plug-ins per year

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…….

Electric launches at LA Auto Show: Along with crossover utility vehicles, plug-in electrified vehicles will see a few North American launches at the LA Auto Show. A refreshed e-Golf will be revealed with increased miles per charge (186 miles on European standards) and infotainment/connected car updates. The miles per charge range may be closer to 125 when defined by the U.S. Environmental Protection Agency using its own calculation – closer to the Nissan Leaf and Ford Focus Electric. For VW, it’s a jumpstart to a much larger post-Dieselgate electrification campaign with vehicles built on the MEB platform, including the all-electric ID in 2020. Jaguar will be showing the electric I-Pace crossover concept. The production version of the Tesla-competitor luxury electric car will be shown in late 2017 and go on sale in the U.S. in the second half of 2018. Also during the LA Auto Show (called AutoMobility LA during pre-show media and trade days), look for: all-electric models or concept cars from Porsche, Mitsubishi, and Mini; Cadillac will show off its CT6 plug-in hybrid; and Chevrolet will be promoting the all-electric Bolt, with its 238-mile range that starts shipping to dealers within weeks.
100K EVs sold per year: BMW Group wants to boost sales of battery electric and plug-in hybrid cars by two-thirds next year to 100,000 vehicles, the company said. The German automaker expects to increase deliveries of vehicles from its “i” subbrand to around 60,000 units this year. BMW expects electric car sales will grow three-fold. Sales of battery-powered BMW models have totaled about 100,000 cars since November 2013, according to BMW. BMW currently sells the compact i3 EV and i8 plug-in hybrid supercar in its electric subbrand. The automaker has said it also plans to add an electric Mini and BMW X3 SUV by the end of the decade.
Supplier on emissions mandates: BorgWarner is sticking with its plan to introduce a new generation of motors, transmissions and other gadgetry for electric cars and hybrids, even if the 54.5 mpg softens under the Trump administration. CEO James Verrier said during a presentation Friday that automakers have spent big sums to design EVs, upgrade powertrains and reduce vehicle weight over the next three to five years. “I don’t think the automakers will back off,” Verrier said. “I don’t think we’ll see regression.”
LeEco cash-strapped: LeEco’s co-founder has admitted to turbulent financial conditions that may pull back the Chinese company’s plans to compete in electric “supercars” through its LeEco and Faraday Future ventures. In a letter to employees last week, co-founder Jia Yueting admitted that the company is running out of cash through its rapid expansion. The company has been questioned about its significant investment in Faraday Future’s Nevada plant. “No company has had such an experience, a simultaneous time in ice and fire,” Jia wrote in the letter to employees. “We blindly sped ahead, and our cash demand ballooned. We got over-extended in our global strategy. At the same time, our capital and resources were in fact limited.”
Audi gasoline engines: Automotive litigation firm Hagens Berman has filed the first class-action lawsuit against Audi over charges that the automaker illegally installed an emission-cheating device in 3.0-liter gasoline cars. Models names in the suit include the Audi A6, Audi A8, Audi Q5 and likely the Audi Q7, as well as potentially several other 3.0-liter, automatic gasoline models. In related news, on Thursday a coalition of Audi owners sued the company’s Audi AG and Audi of America, LLC units after reports surfaced over the past weekend that certain gasoline powered Audi vehicles were equipped with emission control defeat devices. Similar to last year’s revelations involving Volkswagen’s diesel models, it is alleged that the California Air Resources Board has discovered cheat software installed by Audi engineers in certain 3.0 liter A6 and Q7 Audi vehicles.
Green Car of the Year award: Green Car Journal announced the five finalists last week for its annual award, four-out-five of which are available now in plug-in hybrid variations and one being an all-electric vehicle. The five 2017 model year nominees for the Green Car of the Year award are: the BMW 330e, Chevrolet Bolt, Chrysler Pacifica, Kia Optima, and the Toyota Prius Prime. The winner will be announced Thursday morning at the LA Auto Show. Green Car Journal also recently announced that the Ram ProMaster City work van won Green Car Journal’s 2017 Commercial Green Car of the Year, the second year in a row it’s taken that award. The gasoline-engine ProMaster City was recognized for environmental attributes along with traditional features customers seek, such as functionality, versatility, safety, value, and style. The announcement was made yesterday at the 48th annual San Antonio Auto & Truck Show in San Antonio, Texas.
Europe battery factory: Tesla Motors plans to begin looking for locations in Europe next year for a second “Gigafactory” to make cars and the battery cells to power them, the company said. Possible locations for the factory include the Netherlands, France and Spain, according to local media speculation. Tesla hasn’t communicated a preference. The electric automaker already has a facility in the Netherlands that does final assembly work for European versions of Tesla cars built in the automaker’s Fremont, Calif, factory.
Top 10 charging networks: Netherlands-based The New Motion charging network supplier has been ranked No. 1 in a Navigant Research report on charging networks, followed by the leading U.S., ChargePoint, at No. 2. EV-Box finished in third place, followed in order by Chargemaster, Fortum, Innogy SE, Greenlots, EVgo, Clever A/S, and Pod Point. Navigant based its rating system for plug-in electrified vehicle charger network suppliers on 10 criteria: vision; go-to-market strategy; partners; product strategy; geographic strategy; market presence; marketing and distribution; product performance and reliability; product and service capabilities; and staying power.
Supercharger network: Tesla Motors announced that more than 4,600 Superchargers have been installed around the world that allow over 160,000 Tesla owners to drive across the continental U.S., from the Arctic Circle to the south of Spain, and across all of the population centers in China and Japan, among many other places. The Supercharger Network, which Tesla calls the world’s fastest charging solution, was designed by the automaker so that all customers have access to a seamless and convenient charging experience when they’re away from home, as our intention has always been for Supercharging to enable long distance travel.
NHTSA noise rules: The National Highway Traffic Safety Administration has issued new standards to automakers requiring audible alerts required on all new hybrid and electric vehicles going forward beginning September 1, 2019. The new sound requirements applies across the U.S., and should help prevent as many as 2,400 pedestrian injuries each year once they span the range of EVs and hybrids on the road, according to the agency. The new rule says that all-electric, plug-in hybrid, and hybrid vehicles that have four wheels and weigh under 10,000 pounds must make an audible noise when traveling either backwards or forwards at speeds up of to 19 miles per hour.

This Week’s Top 10: Hybrid and EV sales down from September, Bolt production starts up

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…….

Hybrid and EV sales: Hybrid and plug-in sales followed the overall market, which has been down over the past three months. Hybrid sales in October were down 15.3% from September and 13.1% from October 2015. Plug-in hybrid and battery electric car sales were down 29.36% from September, but were up 13.47% over October 2015. The Chevy Volt and Ford Fusion Energi led plug-in hybrid sales. Tesla saw a sizable drop in sales that may been affected by Tesla slowing down production to enable new autonomous technology hardware. Sales in November and December are expected to go back up as Tesla works hard at hitting quarterly sales goals.
Building the Bolt: General Motors has started production of the all-electric Chevrolet Bolt at its assembly plant in Orion Township, near Detroit. The first of the electric cars capable of going 238 miles on a charge will show up for sales before the end of the year, the automaker said. Badged as the Opel Ampera-e in Europe, the new model is due to be launched in European markets next year.
Toyota long-range EVs: Toyota Motor Corp. may be joining the race for long-range electric cars, according to the Nikkei. The automaker is exploring mass-producing battery electric cars that would hit the market by 2020, the Japanese news report said. In late October, Toyota said it has worked with Panasonic Corp., which also produces lithium ion batteries with Tesla, to improve the precision in battery cell assembly and extend range. This new battery technology will roll out soon in the soon-to-be-launched Prius Prime plug-in hybrid electric vehicle. That plug-in hybrid will go 37.3 miles on battery alone before the gasoline engine takes over; the new battery technology may go into all-electric, extended range cars, too.
Uber and Maven: Uber announced it will be partnering with General Motors’ new carsharing service, Maven. Uber drivers will be able to rent GM vehicles on a weekly basis. GM and Uber will be in a 90-day pilot where drivers will be able to rent GM vehicles for $179 plus taxes and fees per week. That was a bit surprising given that Uber’s main competitor, Lyft, now has a partnership with GM. A similar program, called Express Drive, had been started up for Lyft drivers and operates in about 10 U.S. cities. Alliances between automakers and mobility services continue to expand this year, including Toyota and Uber; Toyota and Getaround; and Volkswagen and Gett.
LA Auto Show: The Los Angeles Auto Show is launching a pre-car show segment for media and industry professionals called AutoMobility LA. Taking place Nov. 14-17, and to the general public Nov. 18-28 at the LA Convention Center, the latest technology devices will be displayed that embrace all forms of transportation and complement new and traditional vehicles. Located in the South Hall Atrium, “GO” features the latest smart mobility devices that can include electric scooters, bikes, or mobility apps. Also keep in mind that the annual Green Car of the Year award winner will be named on Thursday, Nov. 17 at the Technology Pavilion at LA Auto Show.
Free Tesla charging ending for new owners: Tesla owners had been able to fast charge for free for the past four years, using Tesla’s Supercharger Network. Drivers had access to free charging at a worldwide network of 4,600 chargers. That will come to an end soon as the company adopts a “change to the economics of Supercharging.” Cars ordered vehicles before January 1 and delivered before April 1, 2017, still will have free access to Superchargers. Customers who order after Jan. 1 will receive 400 kilowatt-hours – about 1,000 miles – of free charging credits annually, then will pay a fee “less than the price of filling up a comparable gas car,” the company said. Upcoming Model 3 owners won’t have access to free charging, CEO Elon Musk said during a shareholders meeting in May.
VW scandal continues: Volkswagen AG’s chairman Hans Dieter Pötsch has been added to the list of executives under investigation over fraudulent emissions reporting. The chair and former chief financial officer is suspected by German prosecutors of violating securities laws, especially failing to notify shareholders quickly enough about the financial risks of the scandal. German prosecutors have been at work on plea agreements with other executives; and former CEO Martin Winterkorn and board member Herbert Diess have been under investigation for failing to disclose information.
Gas and diesel engines waning: Internal combustion engines (ICEs) may be heading toward the end of their shelf lives, according to a Lux Research study. Governments may one day make them illegal and ICEs may be priced out of the market, according to the study. Netherlands has considered banning ICEs by 2025, with a similar debate starting in Norway. India would like to see 100% of new car sales go to something other than ICEs by 2030. Germany’s legislature is also considering a total ban by 2030. The study says that ICEs may actually decline earlier than government mandates push for. EVs are getting cheaper by the year, thanks to improving batteries and mass production. ICEs are getting more expensive, due to tougher fuel efficiency regulations that require more complex and pricier engineering like 10-speed rather than five-speed transmissions, double- and triple-turbocharging, and other new and costly technologies.
Wrightspeed extended range trash trucks: Wrightspeed rolled out what is says was the first commercial application of a range-extended electric refuse truck last week. Through its partner company, The Ratto Group, in Sonoma County, Calif., Wrigtspeed’s turbine-electric powertrain will be placed in at least 15 vehicles deployed into the trash hauling company’s fleet over the next year. With fuel economy up to about 7 mpg in combined electricity-liquid fuel operation, the powertrain can slash annual fuel consumption by 70 percent or more compared with the average diesel garbage truck, Wrightspeed said.
Lutz on autonomous vehicles: Bob Lutz, former vice chair at General Motors and champion of the Chevy Volt, thinks that fully autonomous vehicles are 15 to 25 years away. Lutz expressed his views during the annual awards dinner of the Michigan Venture Capital Association. His vision for the future is different than Google’s and several automakers. Cars will be replaced by “modules” that will look like telephone booths laid down, and electronically linked in a seamless train on the freeway moving at 200 to 250 mph. They’ll be powered by inductive electrical rails in the freeway, Lutz said.

Alternative Fuel Corridors and DOE data show where clean transportation infrastructure stands

ev-corridor-in-fhwa-map As you probably know by now, the Federal Highway Administration released a map last week showing 55 routes across the U.S. for charging plug-in vehicles and refueling alternative fuel vehicles, with 48 designated charging routes in the new corridor. The Alternative Fuel Corridors covers 35 states and nearly 85,000 miles, according the U.S. Department of Transportation’s FHWA. More miles will be added to the network to accommodate electric, hydrogen, propane autogas, and natural gas vehicles as more alternative fueling and charging stations are built.

The designation of these corridors comes from the “Fixing America’s Surface Transportation” (FAST) Act, which was signed by the president in December 2015. In July, U.S. Transportation Secretary Anthony Foxx put the alternative fuel station provision in motion by calling on states to nominate national plug-in electrified vehicle charging and hydrogen, propane, and natural gas fueling corridors along major highways.

You can view an Alternative Fuel Corridors resources page that includes a map showing each of the charging and fueling networks. There’s only one electric charging route linking the nation, which crosses the Great Plains with Highway 70 bridging between Utah and Colorado. Charging station routes are concentrated in the Northeast, East Coast, Great Lakes region, Texas, and the West Coast. Compressed natural gas will have corridors very similar to charging networks. Hydrogen fueling routes will be concentrated in California, Colorado, the Midwest, and the Northeast.

During a telephone interview with CNBC on Friday, Tesla CEO Elon Musk didn’t support the corridor project. Tesla’s Supercharger fast-charging network has been in place with its own cross-country corridor for quite a while now, he said, and he didn’t see the point in talking about the federal program. Musk’s comments reflected Tesla’s competitive philosophy of having the best electric cars and charging in the industry, and the company doesn’t see the point of cooperating on, or supporting, industry and government standards. That response also speaks to challenges the fast charger network faces with the CHAdeMO, SAE combo charger, and Tesla standards differing.

Looking at the Alternative Fuel Corridors maps, and the Energy Department’s data on alternative fuel stations, you can get a good look at where the clean transportation infrastructure stands in the U.S.

Infrastructure: US Fueling and Charging Stations
Biodiesel (B20 and above): 170, down from 236 a year ago
Compressed Natural Gas (CNG): 958, up from 867 a year ago
Electric Vehicle Charging Stations: 14,683, up from 10,998 a year ago
Ethanol (E85): 2,757, up from 2,678 a year ago
Hydrogen: 31, up from 12 a year ago
Liquefied Natural Gas (LNG): 83, up from 73 a year ago
Liquefied Petroleum Gas (Propane): 427, down from 1,524 a year ago
Source: Alternative Fuels Data Center

Propane has seen a dramatic drop in fueling stations during the past year – from 1,524 a year ago to 427 in the U.S. now, according to the Alternative Fuels Data Center. That’s likely been coming from propane networks consolidating stations to better serve the market. Some of the propane autogas stations are on private grounds not available to the public, such as school bus fleets. ICF International, Inc., based in Fairfax, Va., projects consumer propane sales to grow by about 9% between 2014 and 2025. Most of the growth will come from the propane engine fuel market, although lower propane prices associated with the growth in domestic propane supply and lower oil prices will also make propane more competitive in traditional propane markets, including residential and commercial space heating, and forklift markets, according to an ICF report prepared for the Department of Energy.

Biodiesel has also seen a drop in the past year, at 236 last year and down to 170 stations recently. That may have to do with the EPA dragging out its ruling on the federal Renewable Fuel Standards and decreasing volume mandates on the advanced biofuel. Biodiesel is also seeing more competition come from renewable diesel, which is being adopted by several large fleets in California to tap into low carbon fuel standard credits.

Electric charging stations, compressed natural gas, and hydrogen stations have seen impressive growth ratios in the past year. Charging stations grew by nearly a third in the past year, up to 14,683 stations. According to the U.S. Census Bureau, there were 114,533 gas stations in the U.S. at the end of 2012, the last year for which data is available, so there will need to be another 100,000 charging stations to match the reach of retail gas stations.

The corridor routes will be seeing signs posted similar to what’s been typical on highways for years alerting drivers to upcoming gas stations, food, and lodging. It will play an important role in the federal government’s mission to reduce carbon. Supporting lower-emission vehicles will help the U.S. meet its 2015 pledge to reduce greenhouse gas emissions by 80 percent or more by 2050, according to the FHWA.

“Alternative fuels and electric vehicles will play an integral part in the future of America’s transportation system,” said Secretary Anthony Foxx in the press release. “We have a duty to help drivers identify routes that will help them refuel and recharge those vehicles and designating these corridors on our highways is a first step.”

China may return to supporting hybrids as another channel for hitting targets in cutting emissions and oil imports

toyota-levin-in-china China is facing a challenge similar to the U.S. – how to get car shoppers to buy more clean vehicles and less gas guzzling pollution emitters like large SUVs. While plug-ins, or “new energy vehicles,” have taken off in sales during the past couple of years, China’s regulatory and incentive structure appears to be changing toward a broader definition of clean vehicles. Toyota and a few Chinese automakers and suppliers are asking the government to support plug-less hybrids as another way to reduce tailpipe emissions and dependence on imported oil

In 2013, incentives in China for purchasing plug-in electrified vehicles (PEVs), along with electric buses, jumped up while hybrid electric vehicle subsidies were cut. The definition of new energy vehicle changed exclusively to PEVs as previous new energy incentives for plug-less hybrids were cut.

That may change course as the government is considering mandating policy requiring 25% of new vehicle sales to be plug-less hybrids by 2030, according to comments made last week by Ouyang Minggao, who leads a group that China’s auto industry regulator commissioned to set targets for energy-saving vehicles. The report recommends increasing hybrid sales to 8% of total passenger vehicle sales by 2020, and then up to 20% by 2025 and one quarter of sales by 2030.

China is also considering extending a tax cut beyond the end of this year for small-engine cars with up to 1.6 liter engines, an industry ministry official said last week. That move could help sustain a sales rebound in small, fuel-efficient vehicles in the world’s largest auto market.

China requires automakers to lower the average fuel consumption of their vehicles to 5 liters per 100 kilometers by 2020 from the current 6.9 liters. New energy vehicles will play a part, but now China may be looking to hybrids and small cars to help hit the fuel consumption and emissions targets. This year has seen a steep increase in large SUV sales in China as gasoline prices stay down and consumers with more spending power find SUVs appealing, similar to what’s been seen in the U.S. market. That puts more pressure on China to meet emissions and fuel economy goals.

Subsidies to manufacture and purchase PEVs have made a huge difference in the market. Through September, China came close to selling as many cumulative PEVs as the U.S. has seen since they first appeared in the market in late 2010; with the U.S. total at 522,519 cumulative PEVs sold and China finishing the month at 521,649 sold. At the end of 2012, China had only seen 27,800 PEVs sold, with dramatic sales surges seen in 2014 and 2015. If electrified buses were to be included in the total, China would be clearly the world’s leader with 733,447 new energy vehicles sold through the end of 2015, according to HybridCars. Generous government incentives are considered to be a big part of rapid growth in China’s PEV sales.

Earlier this year, the Chinese government announced plans to cut 2017-2018 new energy/plug-in vehicle subsidies by 20% from those granted in 2016, and 2019-2020 subsidies will be 40% less than this year. These subsidies will stop after 2020, the government said. Instead, China will support development of a points-based credit system similar to that used in California to encourage production and use of new-energy vehicles.

Cutting PEV subsidies may be exacerbated by a scandal reported in September on rule violations by several vehicle manufacturers. Five Chinese bus makers were penalized by the government for taking about 1 billion yuan ($150 million) in illegal subsidies for new energy vehicles. Soon after, an additional 20 automakers were called out for violating these rules. These included global automakers Nissan and Hyundai, and Chinese makers Geely, JAC Motor, and a subsidiary of electric carmaker BYD.

The China Association of Automobile Manufacturers changed its forecast for PEV orders to 400,000 from 700,000 vehicles, down 43 percent, last month. China’s top auto industry association slashed its forecast of new energy vehicles that will be ordered this year as the government subsidy scandal widened.

Manufacturers such as Zhejiang Geely Holding Group Co. and Hunan Corun have been lobbying the Chinese government to increase support for development of plug-less hybrids. Hunan Corun supplies batteries for Toyota’s China-built hybrids.

Toyota has made the argument in China that hybrid technology could be more widely accepted by consumers as a solution.

Toyota plans to bring a hybrid version of its RAV4 sport utility vehicle to market in China as soon as possible, Matsumoto Shinichi, executive vice president of Toyota’s local engineering and manufacturing unit, said prior to the Beijing auto show earlier this year. The Japanese automaker plans to localize the development and production of hybrid SUVs in China, after introducing its Corolla and Levin hybrid compact cars late last year for a 2018 introduction, including plug-in hybrid variations.

This Week’s Top 10: September plug-in sales, $200K ticket to Mars with SpaceX

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

September sales: The Chevy Volt continues to be the best selling plug-in hybrid, by far, on the market with 2,031 units sold in the U.S. during September. At 16,326 Volts so far this year, there’s a thin chance it could catch up to 2013’s 23,094 units sold, if not also 2012’s 23,461. The Volt redesign seems to have taken off very well. The all-electric Nissan Leaf saw its first increase in year-over-year sales since December 2014. In September, there were 1,316 Leafs sold, a 5.5% improvement over September 2015. Tesla Motors just reported its third quarter deliveries, which were up 70% over the second quarter. Of the 25,185 units sold and delivered during the third quarter, 15,800 were Model S and 8,700 were Model X. For September sales, one estimate shows the Model S and Model X well ahead of the Chevy Volt and all other plug-ins sold in the U.S.
Ticket to Mars: Elon Musk gave a speech last week topping the Gigafactory and Hyperloop announcements. As SpaceX chief, he spoke last week at the 67th annual International Astronautical Congress in Guadalajara, Mexico. Once the company’s Interplanetary Transport System is fully operational, he estimates that a person will be able to travel to Mars for about $200,000 – much cheaper than the $10 billion it would cost you to buy a rocket that you fly to the red planet. One hundred passengers will ride to Mars with 42 Raptor engines, carbon fiber fuel tanks, reusable rockets, and other features. Musk was making the pitch to gain financial backing from current client NASA and others attending the event.
Uber and Otto: Self-driving truck startup Otto talked about its strategy now that ride-hailing giant Uber owns the new company. Uber plans to make Otto the leader in self-driving truck technologies in freight hauling. The ride-hailing company has started the process of selling services directly to shippers, trucks fleets, and independent truck drivers. Otto is expanding its fleet from six to 15 trucks, and is bringing in independent truckers to manage the trips. Those freight hauling trips will start next year with deliveries to warehouses and stores. Uber made the acquisition in August for an estimated $680 million. It ties into Uber’s strategy of developing self-driving car systems through its Pittsburgh test drive project.
Lyft drivers getting Bolts: Lyft drivers will be the first to receive key fobs for their Chevy Bolt when it arrives at dealerships later this year. “Drivers on the Lyft platform will be receiving Bolts to drive first,” said Emily Castor, Lyft’s director of transportation. Castor spoke last week at the World Mobility Leadership Forum at Metro Airport in Detroit. Ride-hailing service Lyft links riders with about 315,000 contractor drivers in about 200 U.S. cities. General Motors and Lyft created the Express Drive rental program for Lyft drivers earlier this year after GM’s $500 million investment in the company. Express Drive offers Lyft drivers the opportunity to rent the GMC Terrain, Chevrolet Equinox, Malibu, Volt and, by the end of this year, the 2017 Bolt EV.
First driver’s license for autonomous vehicle: Nevada last week granted the first autonomous vehicle-related driver’s license to Sam Schmidt, a former race car driver and The state granted Schmidt a license to drive a semi-autonomous test car on public roads under restricted conditions. Earlier this year, Schmidt drove more than 150 mph in the Arrow SAM Car during demonstration laps at the Indy 500. Arrow Electronics designed the SAM car for Schmidt in 2014, and they worked together to get the state to revise regulations allowing Schmidt to drive on roads in addition to race tracks. Schmidt used to be a race car driver, but lost his ability to drive years ago during a near-fatal speedway crash. Schmidt is able to control the car, a modified Corvette Z06, using his voice, head, and breath to steer, accelerate, and brake.
No price cutting: Tesla CEO Elon Musk sent out an email to employees last week asking them to stop offering discounts to drive up sales numbers for the Model S and Model X. Discounts are appropriate for when for Tesla vehicles that had been used in test drives or that were damaged before delivery, he said. Musk asked them to stay away from price cutting and to adhere to a sales approach he called “fundamental to our integrity.”
USPS test project: The U.S. Postal Service has identified six “prime suppliers” that will be producing 50 prototype vehicles from which a Next Generation Delivery Vehicle (NGDV) will be chosen. The companies are: AM General, Mahindra, Oshkosh, Utilimaster, VT Hackney, and Karsan. The new prime suppliers’ contracts total $37.4 million in business. It may lead to an electric or hybrid design, according to recent reports and USPS.
DMV supports fully autonomous: The California Department of Motor Vehicles revised its recommended policy on fully autonomous vehicles. While the agency had supported having steering wheels and pedals in autonomous vehicles for drivers to take over in case emergency conditions came up, that policy recommendation has changed. DMV revised draft regulations that the most advanced self-driving cars would no longer be required to have a licensed driver if federal officials deem them safe enough.
Report on mobility services: Navigant Research released a report examining trends associated with emerging mobility services most likely to influence the future transportation market, including automated systems and shared vehicle services. A nexus of trends related to emerging mobility services is converging to influence the future transportation market: autonomous vehicles, the consumer shift, multimodal integration solutions, and urban versus rural/suburban population distribution. From parking habits to the number of vehicles in operation, these trends and related factors will have far ranging effects on the transportation landscape, according to Navigant Research.
Testing e-trikes: UPS is testing electric-assist cargo tricycles and several other clean transportation and alternative fuel options in various scenarios around the world as part of a “rolling laboratory” project. The company is looking to resolve a serious challenge: how to keep up with the boom in e-commerce while at the same time reducing its impact on the environment. The e-trikes have a range of 21 miles and a top speed of 15 miles per hour and ample cargo capacity, They’re ideal for narrow European streets, but UPS customers in Portland, Ore., will soon see drivers pedaling around their neighborhoods in a similar model.

Paris Motor Show reflects paradigm changes in the global auto industry

As previewed last week, the Paris Motor Show has gone through a do-over – what was once the hallmark auto show for high-performance luxury and sports supercars (with many of them powered by diesel engines) is now shifting over to electric cars as the stars of the show. Crossover utility vehicles with battery power is another trend noticed by observers.

Paris Motor Show 2016 has also been marked by the disappearance of several automakers deciding to cut expenses through attending less auto shows and marketing through other channels such as social media. Paris has been the largest auto show in the world, with 1.25 million attending in 2014. Those attending this year are expected to be disappointed by several brands disappearing: Ford, Mazda, Volvo, Cadillac, Rolls-Royce, Aston Martin, Maserati, McLaren, Genesis, Lamborghini, Bentley, Bugatti, and others are skipping the show altogether.

Along with the diesel emissions reporting scandal, the impact of Tesla’s presence in the European market (and the hype and pre-orders for the Model 3) has been stirring up European automakers on the electrification front. Stricter emissions targets in Europe, the U.S., and China, are behind the EV launch as well; falling battery costs with more energy storage capacity is also playing its part.

“Crossovers and vehicle electrification are again expected to be key reveals at the event,” said Ian Fletcher, the principal analyst for IHS Markit, to Bloomberg. “The key trends are being determined by a combination of consumer demand – in terms of the number of crossovers being revealed – and legislative emissions factors, through a focus on electrification.”

Here’s a roundup of interesting announcements during the media days:

EQ electric brand launched: Daimler previewed its new EQ electric car brand through the Generation EQ concept, which is an electric small crossover utility vehicle. The EQ brand unveiling is the first step in launching 10 new battery-electric models by 2025 in Daimler’s strategy to become the global leader in electric vehicle technology; it appears to serve as a sub-brand of Daimler’s Mercedes-Benz division. Daimler expects electric cars to account for 15 to 25 percent of its global sales by 2025, CEO Dieter Zetsche said at the auto show. The German automaker’s chief confirmed what has been rumored lately – that the new electric cars will be launched under the EQ brands. Daimler said that the Generation EQ will have a range up to 500 kilometers (311 miles), which is probably based on Europe’s NEDC standards; that will be lower in U.S. mileage range under EPA measures. The concept car is being moving closer to production, and is being built on an architecture developed specifically for all-electric models. That architecture is adaptable for crossovers, SUVs, sedans, coupes, and other model series, the company said.

Volkswagen I.D. concept: Volkswagen’s chairman, Herbert Diess, was on the stage to unveil the new concept, called I.D., at the show. The Volkswagen I.D. will be rear-motored and rear-wheel-drive, much like the original Beetle, an interesting point that the automaker has emphasized in its press releases. It will be the first new model built on the automaker’s MEB modular electric platform. Its battery in-flat-floor architecture is built within a futuristic exterior design with a glass roof, artistic wheel covers, digital headlamps, and sliding rear doors. It’s expected to hit production level in 2019 for purchase starting in 2020. It’s part of the automaker’s Strategy 25, where the company will be building up to one million EVs by the middle of the next decade. Last week, the automaker announced it will be expanding sales of its e-Golf nationwide in the U.S., beyond a few select states. However, VW also revealed in Paris that the I.D. will eventually replace the e-Golf (but not the Golf).

Porsche Panamera plug-in: VW’s Porsche brand unveiled its Panamera 4 E-Hybrid plug-in hybrid electric vehicle at the Paris Motor Show. The large luxury hatchback will have a range of 31 miles and top battery-powered speed of 86 mph. The company says that the car generates some 340 kW of system power and delivers fuel consumption figures of 2.5 l/100 km in the European NEDC cycle for plug-in hybrid models. That corresponds to CO2 emissions of 56 g/km. “At Porsche, the term ‘hybrid’ is synonymous with not only sustainable mobility, but performance too – a fact proven not least by the victory of the 919 Hybrid in the 24 Hours of Le Mans race in 2015 and 2016,” the company said in its press release.

BMW X3 and new Mini: BMW said on Friday it will offer all electric versions of its next generation BMW X3 compact sport utility vehicle and electric Mini models. The electric Mini is expected to debut in about three years, company officials said. BMW had played a leading role in luxury plug-ins, but slow sales for the i3 and i8 have put plans back on the drawing board. BMW is also showing the new electric i3 and i8 Protonic Dark Silver special edition model. The German automaker said it will begin production of the BMW i8 Protonic models in December and in early 2017, but it will be in limited production; that’s similar to what happened with its previous Protonic Red Edition. BMW is also showing its new 3 Series Gran Turismo four-door, a C evolution e-scooter, and the X2 Concept SUV that is expected to go into full production late next year. The company chose to have its executive leadership stay in Germany to debate the future of its electric vehicle strategy.

Renault Zoe in 200-mile range: During the show, Renault confirmed that the next-generation Zoe all-electric car will come with a 41 kWh battery rated at 400 kilometers (248 miles) on the European NEDC cycle. The company acknowledged that the actual range per charge will vary, from around 186 to 200 miles per charge depending on how and where the electric car is driven. Chevrolet and Tesla have been getting all the attention for the upcoming Chevy Bolt (with 238 miles) and the 200-plus mile Tesla Model 3. Renault may have already crossed the barrier, and is now taking orders in Europe for delivery – and will be ahead of sister company Nissan’s Leaf reaching that range anytime soon. It beats the Bolt and Model 3 in cost, with a starting price of $24,500 before incentives.

Citroen CXPerience: French automaker Citroen is showing the plug-in hybrid CXperience concept car. It’s a low-to-the-ground sedan with rear suicide doors and a short rear deck. It combines a front-mounted gasoline engine with an electric motor, and an eight-speed automatic gearbox. The company claims that the battery range is 37 miles. The five-door hatchback was presented online a month ago, and may be the foundation for future Citroen plug-in models.

Mitsubishi GT-PHEV concept: Mitsubishi will introduce a few hybrid and all-electric vehicles, including a plug-in hybrid SUV concept vehicle. The GT-PHEV SUV has been designed around the automaker’s next-generation plug-in hybrid system. The system uses three electric motors and an internal combustion engine designed specifically for hybrid applications. Mitsubishi’s Executive Vice President of Overseas Operations, Kozo Shiraji, introduced the GT-PHEV concept (which stands for Ground Tourer Plug-In Hybrid Electric Vehicle) as the “possible form for a future large SUV.” The company said that the driving range for its next plug-in vehicle promises to expand on the current Mitsubishi Outlander PHEV’s range. The Outlander PHEV is a strong selling plug-in vehicle in the European market.

Opel Ampera-e: General Motors’ Opel division unveiled the Ampera-e, the European version of the Chevy Bolt. Opel says it will cost less than a Tesla and will go 250 miles on a charge, using NEDC European standards longer than U.S. range. “With the new Ampera-e, we continue the largest model offensive in Opel’s history,” said Opel CEO Dr. Karl-Thomas Neumann. “The Ampera-e with its outstanding range makes electric mobility fully feasible for everyday use and also lots of fun.”

Smart electric cars: The Smart ForTwo has a next-generation platform that will be extended over to the Cabrio and Smart ForFour models for a 2017 launch. Smart says it will be the only automaker to offer its entire lineup with both gasoline engines and all-electric versions. The Smart electric cars will compete with the Renault Zoe and Volkswagen e-Up. Smart says its electric cars will go 100 miles on a charge, and take around 45 minutes to recharge from a fast charger.

LaFerrari Aperta: Ferrari will be attending to represent classic, high-performance luxury brands. Ferrari will show the LaFerrari Aperta (aptera translates to “open” from Italian), which is an open-top version of the $1.1 million, limited-edition LaFerrari hybrid. Ferrari said that the entire production line has already been sold out, for an undisclosed price. Ferrari also unveiled the supercar grabbing most of the attention at the show – the GTC4Lusso T, a rear-wheel-drive, turbocharged V8 version of Ferrari’s rather all-wheel drive V12-engined grand tourer.

Toyota fuel cell and hybrids: Toyota thinks the future of green cars will be built around fuel cell vehicles and hybrids (not plug-ins), as expressed in its latest ad campaign comparing the Toyota Mirai to the historic role the Prius played. The company is showing the Toyota FCV Plus fuel cell car, shown for the first time in Europe after being revealed at the 2015 Tokyo Motor Show. Owners will be able to produce electricity directly from hydrogen coming from an exterior source – to power something else beyond the fuel cell car. Toyota’s Lexus division will show the UX SUV concept. The SUV is expected to have 3D driving and hologram components that would be new for the Toyota-owned brand. Lexus is also showing the LC 500h hybrid, which Toyota says will be getting a brand new Multi Stage Hybrid System engine. It will combine a 3.5 liter V6 engine with a “powerful electric engine,” a lithium-ion battery, and “a revolutionary automatic transmission delivering the sensations of a 10-speed gearbox.”

VW mobility brand: Volkswagen AG announced prior to the show that it has established a new subsidiary to handle carsharing and logistics, which is yet to be named. The so-called 13th brand in the VW family will be based in Berlin, according to VW CEO Matthias Muller. According to the chief of the new brand, Ole Harms, it will focus on on-demand mobility, with the help of Moscow’s number one ride hailing app, Gett, in which VW recently invested $300 million. VW’s recent partnership with the city of Hamburg may be the best market to introduce the service; and Gett’s presence in New York make it a likely market for the new VW service to expand to. European cities will be more of a priority for now. “Our new group brand is to rank among the leading mobility services providers and become the market leader in Europe by 2025,” Muller said.