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by Jon LeSage, editor and publisher, Green Auto Market

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

1. Increasing EV sales: How will U.S. new vehicle sales go from less than 1% to more than 10% plug-in electric vehicle sales? Automaker speaker panelists at EVS29 in Montreal addressed the issues. Robert Langford, American Honda Motor Co. manager of electric vehicle sales, is enthusiastic about the new products coming out of the pipeline but warns that charging stations need to be increase at multi-unit residential complexes; and that charging stations need to become more compatible. Britta Gross, director of advanced vehicle commercialization policy at General Motors thinks that automakers need to spend more on marketing to communicate the benefits of PEV ownership, whether that be by helping the planet or spending less on gasoline. If you don’t accompany in infrastructure of vehicle incentive program with an outreach campaign, you lose the battle, she said. Aaron Cohen, Audi of America’s general manager of electric vehicle strategy, thinks there needs to be coordination by key players – carmakers, electric utilities, charging companies, and federal, state and local governments. Brendan Jones, previously with Nissan and now with EVgo, talked about how challenging it can be get auto dealers and their sales consultants to spend more of their time selling EVs.
2. Mercedes e-brand: Daimler AG is considering creating a new brand for the upcoming Mercedes electric vehicles. The report comes from German publication Handelsblatt, and coincides with what Ola Kallenius, Mercedes’ sales and marketing director in Britain, told Autocar – that the company is considering creating an eco-focused sub-brand to rival the likes of BMW’s i electric vehicle division. “The launch of the electric car brand is planned for September in Paris, where Mercedes-Benz wants to present a SUV model which is based on the current GLC model,” sources told Handelsblatt, and that it should go on sale next year.
3. Notice on email address change for Green Auto Market: Please change your email setting to accept this newsletter from my email address jon@jonlesageconsulting.com. The previous Gmail address used in the “From” section, jlesage378@gmail.com, had to be changed over to another address on Constant Contact. That comes from a new Google policy on its Gmail service for email authentication protocol to prevent spam.
4. North American EV sales: Navigant Research predicts a large increase in North American plug-in electric vehicle sales – 62% this year over last year, nearing 200,000 units sold. Next year will likely boost the market by around 60%, and then nearly double the market in 2018. Navigant expects it to be driven by the Tesla Model X, the second-generation Volt, Chevrolet Bolt, Prius Prime, and Mitsubishi Outlander PHEV. The boost in 2017-2018 sales is expected to come from introduction of the Tesla Model 3.
5. Dragon Racing team: Faraday Future announced it is now the title sponsor and core technical partner to the Dragon Racing team. Under the new team name Faraday Future Dragon Racing, the partners will compete in the third season of the Formula E championship running from 2016 to 2017. After competing in Season 3, the team will start using Faraday components, which could include motors, gearboxes, and the FF Echelon Inverter, the same inverter that will be installed on every Faraday Future vehicle that comes to market in the future.
6. Tesla chargers at gas stations: Tesla Motors will be installing charging stations at gas stations through a partnership with Sheetz gasoline. Sheetz operates hundreds of retail outlets across six states, mostly in the mid-Atlantic region. These may be Supercharger or Level 2 chargers, or a combination of both. That announcement followed a previous, recent news item about Tesla setting up a retail outlet with Nordstrom starting at a test site in Los Angeles. Following the Sheetz gas station announcement, Ruby Tuesday restaurants announced that it has begun installing a series of Tesla Supercharges at its locations along important routes across the country. The first one opened up at the Ruby Tuesday location in Miner, Miss.
7. Vision Next 100: BMW is celebrating its 100th anniversary this year with futuristic concept cars for its BMW brand and its Rolls-Royce and Mini brands as well. All three wear the “Vision Next 100” name, referencing BMW’s intent to predict the direction car design will take over the next century. The Rolls-Royce Vision Next 100 concept is expected to combine an electric powertrain and autonomous driving with some of the British luxury carmaker’s more traditional design elements.
8. Carbon rules for biodiesel and renewable diesel: California Air Resources Board released a set of carbon intensity pathways June 30 for biodiesel and renewable diesel pathways. It’s being certified under the readopted low carbon fuel standard (LCFS) regulation using the CA-GREET 2.0 model. These pathways include both new applications and requests to have legacy pathways, or pathways adopted under the earlier LCFS rule, recertified, according to CARB.
9. Why ExxonMobil may be supporting carbon taxes: ExxonMobil is lobbying for a revenue-neutral carbon tax in Congress. Some of it may be coming from its transformation in recent years to being the leading producer of natural gas in the U.S.; the oil giant is in a strong position to supply more natural gas to electric utilities to help them reduce their coal consumption. It may also be related to a scandal in the past year about ExxonMobil having known about the dangers of climate change from burning fossil fuels decades ago and conspiring to keep that information from the public.
10. BMW deal with Mobileye and Intel: BMW Group is forming a development partnership for autonomous vehicle technology with Mobileye and Intel. Mobileye is known for providing cameras, software, and other components that allow vehicles to see the world around them to a few automakers. Intel still holds the lead on the global computer-processor market, but is fairly new to automotive. Going this route will make it more competitive with Silicon Valley competitors Google and Apple.

 

The largest electric vehicle conference of the year returned to North America. Electric Vehicle Symposium & Exhibition (EVS29) was held June 19-22 in Montreal with about 2,000 attendees participating in speaker sessions and workshops – and an opportunity to test drive EVs. The international event showcased EVs and charging infrastructure from Québec and all over the world. Sponsors included Nissan, Toyota, the provinces of Quebec and Ontario, Hydro Quebec, Investissement Québec, and Charged Electric Vehicle Magazine; the event was organized and hosted by Electric Drive Transportation Association. (Editor’s note: EVS30 will be the 30^th EVS venue since 1969 and it will be held next year in Stuttgart, Germany.)

Here were some of the highlights from the annual event:

BMW introduced its energy storage system that taps into the resources of its BMW i3 vehicle battery – and that can be integrated seamlessly with charging stations and solar panels. The system utilizes BMW i3 high-voltage batteries and can be expanded to incorporate second-life batteries as they become available in the market, BMW says. Users of the energy storage system can offset peak energy costs and will have access to backup energy supply during power outages. BMW is adding its new product to the energy story market segment that others automakers had previously entered including Tesla, Daimler, and Nissan.

The Ride, Drive & Charge event organized by EVS29 offered the general public the opportunity to test drive some of the electric cars available on the market in Canada. Car manufacturers will made their latest electric car models available to the public. A side event was held on Sunday, June 19, with an EV parade featuring electrified vehicles including bicycles, delivery vehicles, and cars parading downtown from Palais des congrès.

City of Amsterdam won AVERE’s E-Visionary Award for the second time for continuous efforts in developing e-mobility in the broadest way, including charging infrastructure, taxis, tourist boats, and much more. AVERE is the European association for electromobility. Jury members awarded Amsterdam for its long and solid track record of promoting the use of EVs in the city, putting an effective charging infrastructure in place and promoting in general the transition to electromobility. The targets and the ambitious timing set for zero emission taxis, buses, small delivery vehicles, light vehicles, and boats, were recognized. The E-Visionary Award for North America (chosen by the EDTA & Electric Mobility Canada) was given to the City of Montreal. Professor CC Chan from EVAAP – and World Electric Vehicle Association founder – presented the Asia-Pacific E-visionary Award to the Hon. DU Peng, Consul of the Peoples Republic of China to Quebec for outstanding efforts in the field of E-Mobility by the City of Hefei.

See the EVS29 social media pages on Twitter (@EVSymposium29) and Facebook for highlights from speakers and the exhibit hall. Audiences learned more about Canadian transit districts bringing in electric buses; Montreal Mayor accepting the WEVA e-Visionary award as his city leads the charge for electric mobility; and Parliamentary Secretary Kim Rudd to the Honorable Jim Carr, Minister of Natural Resources, giving keynote remarks during the opening plenary.

Highlights from speaker panels included:

• Takuma Takeuchi of the University of Tokyo spoke on wireless in-wheel motors that he said can make EVs more efficient. The technology could enable induction charging directly from coils embedded in roadways, which would eliminate the need for on-board batteries entirely. The version that the University of Tokyo is working on replaces the cables that carry electricity from the battery to the wheels with magnetic coils that send power through the air.
• Hydro-Québec announced the electrification of Highway 20, one of Québec’s busiest corridors, between Montréal and Mont-Joli. New fast-charge stations in Daveluyville and Laurier-Station will be in addition to the existing stations in Sainte-Julie, Drummondville and Lévis. A sixth charging station will be available this fall at the St-Hubert restaurant in St-Hyacinthe. Results of a pilot project were also discussed, which was run by the Hydro-Québec’s research institute, IREQ, and aimed to test power exchanges between electric vehicle batteries and homes or the electrical system.
• Martin Bruell of Continental AG, Germany, revealed progress on elimination of the on-board charger (OBC). In a paper, “Bidirectional Charge- and Traction-System” he reported, “We have developed a cost-efficient solution for E-Mobility targeting all kinds of conductive charging. It solves the chicken-and-egg problem of investment for fast charging electronics by reusing existing electronics in the car. It makes the charging station as simple as possible, which is AC charging. Furthermore all conductive charging interfaces can be used when the BCTS is installed.”
• New EV telematics service: FleetCarma, a provider of telematics systems for electric vehicles, announced at EVS29 the launch of a new product for fleets seeking to increase the number of electric vehicles they operate. Fleets connecting the new telematics device, named the C2, to gasoline, diesel, and hybrid vehicles in their fleet receive the immediate benefits of standard telematics, while the system also uses the operational data to identify optimal vehicles for replacement with electric vehicles. The single telematics system provides immediate telematics benefits on the gasoline and diesel vehicles while providing the long term benefits of optimized electric vehicle deployment.
• Nissan Leaf going farther on a charge: As reported last week (along with the FleetCarma announcement), Tthe next-generation Nissan Leaf will be able to travel more than 200 miles per charge from its 60-kWh battery, said Kazuo Yajima, Nissan’s global director of EV and HEV engineering. Watch AutoblogGreen’s Sebastian Blanco doing a video report on what it’s like this week in the expo hall at EVS29. You can hear Yajima talk about Nissan’s new battery pack during the video.
• The Institut de recherche sur l’hydrogène (IRH) at the Université du Québec à Trois-Rivières, together with Toyota Canada representatives and Quebec’s Minister of Energy and Natural Resources Pierre Arcand, invited media to an event to express their desire to position the province as a leader in sustainable mobility. The recently unveiled energy plan makes hydrogen and fuel cell electric vehicles an integral part, with a Toyota Mirai vehicle display.

by Jon LeSage, editor and publisher, Green Auto Market

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

1. EV sales in April: Plug-in hybrids are taking the lead this year, jumping 40 percent in first quarter U.S. sales versus that same period in 2015, according to Edmunds.com. In April, they were up 96.4% over April 2015 and up 9.6% over March 2016. Battery electric vehicles were down nearly 12% from the previous month and were up 3.8% over the previous year according to HybridCars.com and Baum & Associates. At 6,266 units sold, BEVs were still in the lead over PHEVs at 5,842, but the gap is tightening. BEVs had been dominant in the market for the past two years. The Chevrolet Volt and Ford Fusion Energi led the way for PHEVs, and were up 119.1% and 87.2%, respectively, over last year. The Tesla Model S was down 10.5% from last year and the Nissan Leaf was down 49.3% from April 2015. The Leaf finished 6^th on the list after the BMW i3; not long ago, it was in the top sales position. The all-electric BMW i3 broke the market trend for this year, doubling its sales since a year ago and going up 145.2% in sales over March 2016. In the top positions, the Volt finished the month with 1,983 units sold, and number two was the Model S, finishing at 1,700 units sold.
2. Tesla Q1 performance: Customer deposits for the $35,000 (or more, depending on options chosen) Model 3 helped Tesla raise cash on hand during the first quarter of 2016 as it reported a wider net loss of $282 million. Revenue rose 22% to $1.1 billion. Struggling to solve quality problems with its first two models while getting ready to launch the all-new Model 3 has been costly for Tesla Motors. It was another deficit for the automaker which has yet to see a profitable quarter, but losses narrowed, taking industry analysts by surprise. Using Tesla’s preference for non-GAAP accounting, the loss shrank to $75 million, or 57 cents a share, which was better than Wall Street had forecast. Analysts and shareholders took even more interest in a dramatic statement from CEO Elon Musk during the quarterly call – the electric carmaker will build 500,000 cars in 2018 and close to one million by 2020, two years ahead of the original schedule.
3. Self-driving Bolt taxis: Ridesharing company Lyft and its major investor General Motors will likely be working together on a self-driving test project with Chevrolet Bolt taxis on public roads within a year; though neither company has confirmed this news story. The testing program will make use of technology developed by Cruise Automation Inc., the self-driving technology startup GM plans to buy for $1 billion. GM did say that the “Chevrolet Bolt EV is the ideal platform for ride sharing solutions,” the automaker said in a statement. “We believe electrification blends perfectly with autonomy when it comes to technology integration.”
4. EcoCAR 3: Cal State Los Angele’s EcoCAR 3 team has just shipped its modified 2016 Camaro to General Motors’ testing facility in Yuma, Ariz. That’s where all 16 teams’ cars will be inspected and scored on how far teams were able to progress on hybrid vehicle integration since receiving their Camaros in December 2015. There are two more years to go in EcoCAR 3. It’s the third racing competition from the U.S. Department of Energy (DOE) Advanced Vehicle Technology Competition (AVTC) series. All 16 North American university teams are competing to redesign a Chevrolet Camaro to reduce its environmental impact, while maintaining the muscle and performance expected from this iconic car. Sponsored by DOE and GM and managed by Argonne National Laboratory, the EcoCAR  racing series have been excellent training grounds for students in developing hybrid technologies, working effectively on a team, and opening doors for excellent job opportunities in the auto industry.
5. Another legal fight for Uber: Less than a month after ridesharing giant Uber settled two class-action lawsuits in California and Massachusetts, another one has been filed in a federal court. The new lawsuit affects all current and former Uber drivers in the U.S., except for those in California and Massachusetts. The suit, filed last week in federal court in Chicago, asks the court to classify Uber divers as employees rather than independent contractors and other issues similar to the San Francisco case. In another news development, voters in Austin, Texas, have rejected a proposal for loosening regulations affecting Uber and Lyft. Both companies are pulling operations out of the city for now. In late 2015, Austin’s City Council approved an ordinance requiring companies like Uber and Lyft to be regulated like taxis with fingerprinting for background checks. Both ride-hailing companies pushed for a ballot proposal that ended up working against them.
6. Goodbye, Joe Jobe: Joe Jobe is leaving his position as CEO of National Biodiesel Board after nearly 20 years of service, to pursue other opportunities. The board will be searching for a permanent replacement immediately. Jobe started with NBB in 1997 and was named CEO in 1999. During that time, he helped lead the industry from 200,000 gallons of biodiesel use to over two billion gallons projected in 2016. Biodiesel is being used as a clean fuel by a growing number of fleets for their trucks, as was mentioned last week at ACT Expo.
7. Looking for office space: Apple is looking for 800,000 square feet in the Bay Area to set up its autonomous vehicle and Titan electric car project. Google is looking for 400,000 more square feet for its self-driving car research and development operations. Victor Coleman, a notable San Francisco Bay Area landlord told Wall Street Journal that Apple seeks real estate in the area. He said that Google (Alphabet), and several automakers are actively searching out large real estate spaces as well; the areas may be used for autonomous vehicle development, he said.
8. Networking charging stations: A new Navigant Research study says that communications technologies like RFID and Wi-Fi are one of the main reasons that electric vehicle charging installations are able to spread around the world. Having the right communications systems in place helps EV drivers gain access to charging power and pay for it. Whether it’s free or for a fee, the charging station must be able to communicate consumption data to the site owner or network operator, the study says.
9. Hybrid supercars: As part of its business plan through 2022, more than half its cars will be hybrids, said Mike Flewitt, CEO of British supercar maker McLaren. McLaren will be working with other high-end luxury performance carmakers facing global emissions regulations and upscale car buyers interested in the new technologies, including British carmaker, Bentley, and Chinese EV start-up LeEco.
10. BeeZero fuel cell carsharing: Starting this summer, 50 Hyundai ix35 Fuel Cell cars will be stationed around Munich for short-term rentals using a mobile app. European industrial gas producer Linde will be helping make that a viable possibility by setting up the world’s first hydrogen fuel cell-powered BeeZero carsharing system. Renters can keep the cars as long as they need them, though rates aren’t yet available on the BeeZero website.

Fleets, freight and logistics companies, and urban transportation planners are looking at best practices for hitting targets in greenhouse gas emissions, air pollution, fuel consumption, and mobility in crowded cities. That will be a discussion topic this week at ACT Expo in Long Beach during corporate sustainability speaker panels.

Erik Neandross, chief executive of Gladstein, Neandross & Associates, a clean transportation and energy consulting firm and organizer of ACT Expo, says that a hot topic at the conference will be California’s Sustainable Freight Action Plan. The plan will likely shake up the freight industry, he wrote in Trucks.com, “as it aims to transform the state’s freight system by 2050, making it more efficient, connected and advanced, while transitioning to zero-emission technologies.”

The plan will include an implementation strategy for deploying over 100,000 freight vehicles capable of zero-emission or near-zero-emission operation by 2030 aimed at meeting the state’s air quality and climate protection goals. It comes from a collaboration with the California Department of Transportation, the California Air Resources Board, the California Energy Commission, and the Governor’s Office of Business and Economic Development.

The draft Sustainable Freight Action Plan was scheduled to be released to the public on Friday, April 29. The anticipated plan is sure to be a key discussion topic at ACT Expo, Neadross said.

Fleets and freight transport companies can reduce road transport carbon emissions 29% in 2030 by deploying a clean transportation strategy, according a Lux Research Study. The sharp cut – exceeding the target of 24% set by 188 nations at the Paris Conference of the Parties (COP21) in 2015 – will be realized from a combination of low-carbon fuels, alternative fuel vehicles, and improved fuel efficiencies; biofuels and natural gas vehicles together will account for 45% of potential fossil fuel displacement as nations look for new technologies to cut emissions, Lux Research says.

Biofuels recommended for use to hit these targets include cellulosic ethanol, renewable diesel and biomethane (renewable natural gas). These fuels, “have lower well-to-wheel carbon intensities compared to their first-generation counterparts and play a pivotal role in cutting emissions, as does renewable electricity,” said Yuan-Sheng Yu, Lux Research Analyst and lead author of the report.

Without improved fuel efficiencies, emissions reduction falls short of the COP21 target in 2030 by nearly 5%.  Automakers will have a range of lightweight materials available as multinationals and start-ups develop the next-generations of steel, aluminum, and composite technologies, Lux Research says.

Corporate sustainability policies have pushed fleets and logistics operations in this direction. Walmart has set a goal to double its fleet efficiency compared to 2005, and is 87% of the way to meeting this target. General Mills has cut its fuel consumption 22% compared to 2005 levels. DHL has improved the carbon efficiency of its business activities by 25% compared to 2007. The company recently added nearly 1,000 electric vehicles to its fleet, bringing that total to more than 13,500 in use network wide.

UPS is growing its alternative-fuel vehicle fleet every year and improving efficiency with its proprietary routing software ORION (On-Road Integrated Optimization and Navigation). The company’s “green fleet” is comprised of about 6,840 vehicles, or about 7 percent of its total feet, and includes propane, compressed natural gas, liquefied natural gas, and hybrid and electric vehicles.

Employers are working with city planners and transportation agencies to help deal with traffic congestion, air pollution, and to reduce stress for the local workforce. Susan Shaheen, a researcher at the Transportation Sustainability Research Center of the University of California, Berkeley, says ridesharing carpool services are a solution being explored that could help fix some of the “first-mile, last-mile” issues with U.S. transportation grids.

In Late March 2016, Lyft launched Lyft Carpool, a pilot program in the San Francisco metro area. The focus has been to address a heavily congested section of Highway 101 between San Francisco and Silicon Valley. The program matches up commuters for carpool rides. Commuters would pay through mobile apps and the services would take a percentage of the money charged.

Lyft also is working with the regional Metropolitan Transportation Commission to expand carpool lanes along that route, said Emily Castor, director of transportation policy for Lyft. The company also is working with transportation agencies in Nashville, Los Angeles, Dallas, Denver, and other cities to provide more connections from homes to mass transit.

This test program and other carpooling and ridesharing services are gaining traction and interest with public transportation planners. A recent study by the American Public Transportation Association suggests that ridesharing trips using Uber and Lyft are replacing trips made with personal vehicles more than trips using public transport. The report recommended that public-transit officials start working on ways to make ridesharing part of their services.

by Jon LeSage, editor and publisher, Green Auto Market

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

1. VW deadline extended and company recalling e-Golfs: Volkswagen had its March 24 deadline extended to April 21 to submit its fix for about 580,000 diesel vehicles in its emissions scandal. U.S. District Judge Charles Breyer had previously scheduled a March 24 deadline for VW to report where it stood on remediation efforts with the U.S. Environmental Protection Agency and California Air Resources Board. Breyer, VW, and the regulators agreed at the hearing in San Francisco that progress has been made in negotiations, but issues remain and no settlement had been reached yet. While plug-in electric vehicles might be mandated as part of the settlement, VW has to address a recall of nearly 5,600 e-Golf electric cars to deal with a battery problem that can cause stalling. The recall covers all of the electric vehicles it’s sold in the U.S. since it launched in November 2014, which may be caused by a software malfunction. Dealers will be installing updated software into the electric cars during the recall process. VW may not be the only OEM dealing with emissions scandals. A report by CDP forecasts that 15 automakers could be facing up to $4.8 billion in emissions penalties primarily from U.K. and U.S. regulators. The study says that General Motors and Ford are the most at risk and could face a combined $1.8 billion in emissions penalties.
2. Webinar on training stakeholders: A complimentary ACT Expo webinar will be held on April 7 at 10:00 a.m., “Comprehensive Training for AFV Deployment: Internal & External Stakeholders.” William Davis, Director at National Alternative Fuels Training Consortium (NAFTC), will cover the training needs for each audience, including: internal staff and external support stakeholders; possible alternative fuel vehicle (AFV) codes and standards and how they may impact stakeholders; what to do/not to do when providing AFV training for impacted stakeholders; and resources available and where to find training. You can register at this site for the webinar.
3. Biodiesel ranks high with fleets: According to a new 2016 Fleet Purchasing Outlook study conducted by the NTEA – The Association for the Work Truck Industry – biodiesel is now the most commonly used alternative fuel option on the market. Survey data shows 18% of fleets use biodiesel now – up from 15% in 2015.  For future alternative fuel interest, biodiesel also did very well in the study, with more fleets planning to acquire or continue using biodiesel than any other alternative fuel option.
4. EV incentives study: Incentives have been a vital element for launching and selling plug-in electric vehicles in the U.S. and aboard. A new Navigant Research study looks at incentives affecting vehicle purchase price, registration process, vehicle operation, and vehicle charging. Demand-side policies have been particularly effective at driving sales growth to specific markets. Leading electric vehicle markets covered in the study include North America, Europe, and select Asia Pacific countries, including China, Japan, and South Korea.
5. Ford shares on energy-efficiency projects with G7: Ford is sharing its Partnership for A Cleaner Environment (PACE) with G7 nations — Canada, France, Germany, Italy, Japan, the United Kingdom, and the U.S. – to share best practices and innovations with businesses and public agencies. PACE is an environmental reporting tool for Ford suppliers that will help partners save money and reduce their environmental impact. In 2013 alone, Ford invested more than $5 million in energy-efficiency projects and significant energy-related upgrades were included in its global manufacturing system upgrades. The company has also implemented a number of water-reduction technologies and process improvements, including using membrane biological reactors and reverse-osmosis processes to recycle water from on-site wastewater treatment plants; this allows Ford to avoid using drinking water in its manufacturing processes.
6. Breaking electric car speed record: An electric car conversion company claims to have broken the fastest speed record for production-based electric cars. Genovation Cars converts Corvettes to electric vehicles, creating a high-performance sports car it calls the Genovation eXtreme Electric (GXE). The car was able to reach a top speed of 186.8 mph after one mile around a track at NASA’s former Shuttle Landing Facility at the Kennedy Space Center in Cape Canaveral, Fla. The test track run beat a previous record of 177 mph as certified by the International Mile Racing Association. The GXE uses An electric powertrain that can generate 700 horsepower and 600 pound-feet of torque, the company says.
7. Anticipation building for Model 3 launch: Interested in getting one of the first Tesla Model 3 electric cars? Online reservations will open up Thursday morning of this week hours before the car is revealed at the Tesla and SpaceX facility in Hawthorne, Calif. It will price, prior to incentives, at $35,000 and will go 200-plus miles on a charge. Tesla Motors is counting on high volume sales for corporate growth in coming years; the company expects to be selling hundreds of thousands of Model 3 units per year.
8. Don’t overstate the impact, Deutsche Bank says: While technological innovations and revolutionary business models, like the launch of Uber and self-driving vehicles, carry huge potential for commuters and carmakers, one international bank thinks perspectives are being overinflated on the initial impact. Analysts at Deutsche Bank AG think that there are a lot of misconceptions about how the on-demand revolution will affect automakers, especially its impact on sales volumes. “The consensus view is that auto sales will decline, and that this will be negative for U.S. original equipment manufacturers,” wrote Deutsche Bank’s team led by Rod Lache. “We believe that the consensus view may be wrong.” However, growth in use of on-demand vehicles could ultimately reduce the number of cars on the road in the U.S. by more than 25 million, with population density serving as a key determinant of the size of the on-demand fleet, the analysts say.
9. Charge Ready bringing stations to SoCal: Southern California Edison has launched a $22 million pilot program, called Charge Ready, to install 1,500 electric charging stations throughout its covered area. Installations will likely start this fall, pending approval from the California Public Utilities Commission, and will see chargers placed at locations where cars are parked for extended periods of time, such as workplaces, campuses, and apartment complexes.
10. Timing for autonomous vehicles: Don’t get too optimistic about self-driving roads hitting our roads in large numbers anytime soon, according to an expert in the field. Speaking before the U.S. Senate Commerce Committee, Missy Cummings, an engineering professor and human-factors expert at Duke University (and director of Duke’s Humans and Autonomy Lab) shared her perspective that self-driving cars are “absolutely not ready for widespread deployment.” Cummings, 49, had been one of the Navy’s first female fighter pilots from 1988 to 1999 and managed a $100 million Navy program to build a sensor-laden robotic helicopter.

by Jon LeSage, editor and publisher, Green Auto Market

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

1. BMW’s next phase: BMW is making a move to reaffirm its top spot as the largest global luxury carmaker with announcements on the iNEXT autonomous electric vehicle, additions to the i3 and i8 models, and more versions of the high-end 7-series sedan and X7 SUV. During BMW’s annual financial press conference, CEO Harald Krueger said the iNEXT will arrive in the next 10 years and will use new sensor technology and powerful software for automated driving. Krueger said it “will set a new benchmark in this area.” The company will soon launch a roadster version of its i8 plug-in hybrid sports car, a new version of its i3 with increased battery capacity and a longer range, as well as a plug-in hybrid for its Mini brand. Daimler has been poised to seize the No. 1 luxury spot, and BMW has been reevaluating its product lineup and market identity. BMW would also like to strengthen sales of the i3, which have dropped lately, and its image as the most sustainable luxury brand in the world competing head on with Tesla.
2. EVI acquisition: Electric Vehicles International (EVI), a maker of battery electric light- and medium-duty trucks and a plug-in hybrid utility service truck, has been acquired by First Priority GreenFleet. First Priority GreenFleet describes itself as “a total solutions provider to sustainable fleets that brings customers a full range of zero and low-emission vehicles that allow them to select the products and infrastructure that best fits their needs.” Its parent company, First Priority Global, manufactures a variety of specialty vehicles, including firefighting, medical, rescue, and public safety equipment. EVI also sells powertrains and performs conversions.
3. Federal tax credits: For those electric vehicle owners looking at federal income tax credits before their annual tax filing next month, Green Car Reports has provided an update on vehicles sold through the end of December 2015……. 2012-2015 Toyota Prius Plug-In Hybrid: $2,500; 2013-2016 Ford Fusion Energi and C-Max Energi: $4,007; 2011-2016 Chevrolet Volt, Nissan Leaf, Tesla Model S, and other battery electric and plug-in hybrid models: $7,500.
4. Audi expands e-gas: Audi’s new Allendorf plant in Germany is expanding capacities for its sustainably produced e-gas through its partner company, the Viessmann Group. Viessmann is the first partner company to produce additional quantities of the synthetic fuel in a new type of biological process. In the Audi e-gas plant in Werlte, e-gas has been produced using a chemical-catalytic process under high pressure and high temperature. In the new Viessmann plant, methanation is now purely biological and creates a new molecule methane. Audi will be able to supply a growing number of customers with sustainably produced e-gas in the future.
5. UPS investing in NGVs: UPS is making a major investment in natural gas vehicles and fueling stations – $100 million on 12 more U.S. fueling stations and 380 more heavy-duty tractors powered by compressed natural gas. TruStar Energy is building the fueling stations, Kentworth Truck is providing the tractors, Cummins Westport the ISX 12G engines, and Agility and Quantum Fuel Systems will provide the CNG systems on the trucks. UPS is now operating 6,840 all-electric, hybrid-electric, hydraulic-hybrid, CNG, liquefied natural gas, and propane-powered vehicles.
6. Renewable diesel webinar: Check out a webinar on renewable diesel and the EPA’s Clean Diesel Program. Hosted by the Center for Alternative Fuels and the Green Transportation Summit and Expo, Dan Brown of the US EPA Region Nine and Gary Lentsch from Eugene Water & Electric Board talked about new tools to help you offset your carbon footprint and maintain regulatory compliance. Other discussion topics included options for accessing public funding to offset the cost of compliance with CARB and EPA regulations; and discovering the benefits and arguments for renewable diesel.
7. Hydrogen racer: Attendees at the Geneva Motor Show got to see the world’s fastest hydrogen fuel cell vehicle, H2 Speed. Italian car design firm and coachbuilder Pininfarina showed off the H2 Speed Concept. So far it’s a track-only hydrogen-powered car that can go 180 mph and can shoot from 0 to 62 in 3.4 seconds. The company estimates 300 to 350 people in the world are prepared to pay a seven-figure sum to own the zero emission exclusive sports car.
8. EV advocate dealer: Max Myers Chevrolet, of Middlebury, Ind., has been credited by electric-car advocates Chris Neff and Tiffany Raim as being a leader in bringing plug-in electric vehicles to the heartland of America. Second-generation owner Neal Myers has sold out every Chevrolet Volt it’s had delivered since they went on the market in 2011. Customers include out-of-state buyers and locals. The dealers’ staff has been trained on Chevrolet’s plug-in vehicles; and Myers regularly sends them to training courses to make sure they’re staying current. Even with low gasoline prices, Myers says the trick is reaching interested consumers and inviting them to visit for a test drive.
9. VW remediation fund: Volkswagen has been in talks with the U.S. Environmental Protection Agency and California regulators to establish a national remediation fund and a separate one for California, according to an inside source. This will be a penalty enforcement for emissions from its cars after the automaker cheated on diesel-emissions tests. The EPA fund would be used to promote clean transportation throughout the U.S.; the other would be run by California to promote zero-emission vehicles in the state.
10. Dealer group suing Virginia and Tesla: The Virginia Automobile Dealers Association (VADA) sued both Tesla Motors and the state’s Department of Motor Vehicles alleging a conspiracy to ‘hide’ the opening of a second Tesla retail store. The state is considering a second Tesla location in the city of Richmond; the suit alleges that Virginia’s DMV and Tesla have been violating the terms of a 2013 agreement that prevents Tesla from opening a second facility in the state until 2017.

by Jon LeSage, editor and publisher, Green Auto Market

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

1. Major feature on China and EVs: Automotive News has researched the deep interconnection between Chinese investors and electric vehicle manufacturers and suppliers – a trend that appears to be shaping the next phase of the global electric vehicle industry. Wheego Electric Cars, Smith Electric Vehicles, Protean Electric, A123 Systems, and Karma Automotive are being revived from financial crises and potential shutdowns through mergers and acquisitions tied into Chinese government incentives for EVs and restoration in markets like the U.S. and Europe.
2. NHTSA on self-driving cars: The National Highway Traffic Safety Administration is working on guidance to states, policymakers, and companies on self-driving vehicles that it hopes to release in July. NHTSA thinks major legal hurdles will have to be cleared before autonomous vehicles without steering wheels and gas pedals can be allowed to be sold in the U.S. NHTSA did tips its hat toward Google in February. The agency said that the artificial intelligence system piloting a self-driving Google car could be considered the driver under federal law. That could be a major step toward winning approval for self-driving vehicles on U.S. roads. NHTSA is looking into a Feb. 14 crash of a Google autonomous car into a municipal bus in Mountain View, Calif.; that may have been the first crash caused by an autonomous vehicle.
3. Faraday in Nevada: Faraday Future has set up a $75 million bond, and set aside $13 million in an escrow account, to show that it can meet its financial obligations to gain approval to set up its electric car factory in North Las Vegas. The bond was required under a $215 million tax-incentive package approved by Nevada lawmakers in December, according to the Las Vegas Review-Journal.
4. Millennial car buyers: Millennials may enjoy Uber, Lyft, Zipcar, and Car2Go, but they are starting to buy cars in big numbers. They are getting their drivers licenses later than did Baby Boomers and Generation Xers, but it is starting to happen. Millennials’ share of the new car market jumped to 28% last year, according to a J.D. Power and Associates study. In the country’s biggest car market, California, Millennials outpaced boomers for the first time. In past opinion surveys, Millennials/GenYers in their early 20s to mid-30s, have expressed a lot of interest in electric vehicles and hybrids. A new study by Kelley Blue Book concludes that while ridesharing and carsharing services are growing rapidly in transaction, it doesn’t necessarily mean that new car sales will go away. These fast-growing transportation services may actually present an opportunity for dealers and others in the auto industry.
5. VW loses U.S. president: The Volkswagen diesel vehicle emissions reporting scandal took another sharp turn last week when VW Group of America announced the immediate departure of its president and CEO Michael Horn. Horn had been with VW since 1990. He was well-liked by VW dealers now struggling with vehicles they can’t sell and continuing public concern over the VW brand. The National Automobile Dealers Association issued a statement of concern over the impact it will have on VW dealers who have been hit hard by the scandal. In other news, about 300 institutional investors in Volkswagen have filed a $3.6 billion lawsuit in Germany. The suit states that these investors see as breaches of its capital markets duty in the emissions scandal.
6. Fleet awards: Gladstein, Neandross & Associates, organizers of Advanced Clean Transportation (ACT) Expo, has teamed with Penske to launch the first-ever ACT Expo Fleet Award. The awards will recognize true leadership in sustainable transportation in several categories such as supply chain, good movement, shipper/carrier partnership, work truck, public fleet, and private fleet. The winners will be announced during ACT Expo 2016, which is being held May 2-5, 2016, at the Long Beach Convention Center in Long Beach, Calif.
7. Ford has started a new division called Ford Smart Mobility LLC. Ford launched the Smart Mobility initiative in early 2015, which has conducted numerous experiments into how people get around. The automaker also launched several pilot programs, including an Uber-like shuttle service for employees, a car-sharing program, and an on-demand public bus service. The new division will create “commercially ready mobility services” and invest in outside ventures, the company said.
8. GM buys Cruise Automation: General Motors is adding to its selection of urban mobility services with its acquisition of Cruise Automation, which makes a $10,000 aftermarket autonomous driving kit. The system uses radar sensors and other hardware that relay signals to in-car actuators to control the vehicle’s steering, brakes, and throttle. The companies did not disclose the price paid for GM’s acquisition.
9. Jet biofuel: United Airlines has agreed to buy as much as 15 million gallons of sustainable biofuel over the next three years from AltAir Paramount’s refinery in Paramount, Calif. The biofuel blend cuts carbon emissions by more than 60% compared to with traditional jet fuel, the airline said. Flights between Los Angeles and San Francisco will be fueled by a blend of 30% biofuel and 70% petroleum.
10. More biodiesel fraud: Federal prosecutors have enforced the Clean Air Act for another biodiesel fraud case. Philip Joseph Rivkin, the owner of a Texas biodiesel company, has been sentenced to 10 years in prison and fined $138 million for biofuels fraud. Rivkin created and sold more than 60 million false biodiesel credits under the federal renewable fuel program.

Automakers have understood for years that California, and the overall U.S. market, can’t be depended upon for meeting large-scale sales targets in plug-in electric vehicles. The decline in U.S. sales numbers during 2015 didn’t help, but the overall sales volume had still been small enough for automakers to question their future plans. That’s where global markets have become more important as OEMs look to sell enough volume to justify the resources invested in electric cars through talented employees, R&D, safety and performance testing, marketing spend, and setting up assembly plants to reach economies of scale. That has been the case for Tesla Motors along with its major OEM competitors, which makes China and other overseas markets even more important.

So how did 2015 go in the top 10 markets for EV sales?

Top 10 Countries for EV Sales in 2015

1. China 176,627
2. S. 115,262
3. Netherlands 43,971
4. Norway 34,455
5. K. 28,188
6. France 27,701
7. Germany 23,494
8. Japan 21,000*
9. Sweden 8,908
10. Switzerland 6,421

Source: Hybridcars.com
* Approximately

China made up 34.2% of global plug-in electric vehicle sales last year with 176,627 sold and finished in first place. It’s been heavily subsidized by the national government and local branches. There’s been an assumption made that the market’s EV sales will continue to grow – enough for Tesla Motors and other OEMs to invest heavily in the market.

Subsidies for the “New Energy Vehicles” (NEVs) have started to decline. One assessment states that about $4.56 billion in local and central government incentives were spent last year. The government’s five year’s plan will see subsidies in 2017 and 2018 to be reduced by 20% from 2016 levels; and another 20% will be cut in 2019 and 2020. There have been reports made of fraudulent transactions last year and government agencies are conducting investigations. Sales numbers tripled last year, and the data may have been “padded” with some of the EVs being counted twice in the total.

China’s NEV sales have seen rapid growth in the past two years thanks to subsidies and tax cuts. Air pollution in Beijing and other major Chinese cities have been driving the incentives and sales. Tesla Motors and BYD say car shoppers are more interested in owning an EV due to the air pollution – and its making for an effective marketing message. One of BYD’s online ads shows a man in a cloud of pollution calling for help from China’s fabled Monkey King hero.

In October, Tesla CEO Elion Musk announced plans to open the first Tesla manufacturing facility in China, a move that could slash prices for the Model S by more than one-third. The automaker has also bee searching out Chinese manufacturing partners and seeking to streamline Beijing’s complex license-plate lottery for buyers of its cars.

The U.S. was No. 2 with 115,262 EVs sold in 2015, making up 22.3% of the total. China and U.S. are still the leading markets, making up more than 55% of global sales, combined. Sales softened for the first time last year in the U.S. with gasoline prices staying down and consumers waiting for new versions of the Nissan Leaf and Chevrolet Volt to roll out.

Navigant Research’s John Gartner anticipates that sales volume will go back up in the next couple of years. By 2017, there will be several new EVs for consumers to test drive from Audi, BMW, Ford, GM, and Tesla. Expansion of the charging infrastructure is likely to increase EV adoption, as well. Survey results from Navigant have shown that U.S. consumers see the availability and inconvenience of charging PEVs as the main reasons not to switch from gasoline to electric powered cars.

Automakers are joining up with government agencies, municipalities, and other entities to expand the charging infrastructure. Several automakers now include a free year of access to charging at dealerships and other locations when an EV is purchased. BMW and Nissan recently teamed up to deploy 120 DC fast chargers across country.

Europe has seen substantial growth in EV sales; at about 75,000 new vehicles registered, it was nearly 50% higher last year in sales than was seen in the 2014 numbers. Seven of these nations made the top 10 EV sales list for last year with Norway, France, the U.K., and Germany accounting for about 75% of all registrations/sales for the year.

The Mitsubishi Outlander plug-in hybrid has been the top seller in Europe. Mitsubishi, for now, has left the U.S. market for EV sales and is focusing heavily on Europe; with more than 50,000 units sold in that region since its launch in October 2013.

German Chancellor Angela Merkel recently met with automaker executives on boosting incentives, but the meeting ended without a deal on subsidies being worked out. Merkel called the meeting with high-level executives at German automakers to discuss promoting EVs and hybrids following political pressures to “clean house” in the wake of Volkswagen’s admission that it cheated U.S. emissions tests for diesel-powered cars. OEMs would like to see government action to set up charging stations for electric cars and help fund sales subsidies. There’s been concern about Germany lagging behind other European neighbors in EV sales.

Japan appears to be more focused on supporting growth in hydrogen fuel cell vehicle production, sales, and fueling infrastructure than in supporting EV sales. Toyota and Honda have been investing heavily in fuel cell vehicles and would like to see ample support from the government.

Japan finished 2013 at second place in global EV sales, then dropped down to third place in 2014 and eighth place last year. The government has made some commitments to supporting companies in the EV space, including Panasonic and its EV battery technologies.

South Korea didn’t make the top 10 list and probably won’t for a few years. Hyundai and Kia have been getting into the game during the past couple of years with the low-volume Kia Soul EV battery-electric car; the Hyundai Sonata Plug-In Hybrid; and the recently displayed Hyundai Ioniq that will eventually be released in hybrid, plug-in hybrid, and battery electric versions.

So far, the most popular EV sold in the South Korean market has been the Renault Samsung SM3 ZE (known in Europe as the Renault Fluence ZE). The numbers haven’t been very high – with nearly 1,800 sold overall in the world since its launch two years ago.

• The U.S. Department of Transportation unveiled the Smart City Challenge last week, where cities with populations between 200,000 and 850,000 can compete for $50 million in transportation funding. It comes out of the five-year transportation funding adopted recently in Washington with $40 million coming from the Federal Highway Administration and $10 million from the department’s private sector partner, Vulcan Inc. Five cities will be chosen in May and the winner announced in June with the focus being on finding the most innovative plans to harness technology that helps develop new mobility strategies.
• Hyperloop Technologies will set up its first test track to develop its vacuum tube transportation system on 50 acres in North Las Vegas, Nev. Hyperloop equipment will begin arriving this month and testing is expected to begin early first quarter 2016, the company said. The agreement was facilitated by the Nevada Office of Economic Development.
• Apple Maps is making a comeback in telematics and driving directions. It had been overshadowed by Google Maps and its Waze subsidiary; with recently adopted changes, it’s now become more widely used than Goggle Maps in iPhones. Apple fixed errors as its users submitted them. Changes include adding transit directories for several major cities, and buying out engineering and other talent from several mapping companies.
• National Highway Traffic Safety Administration is adding new advanced vehicle technologies to vehicles to make them safer. The updated five-star system will enhance crash tests and will take into account whether any of nine vehicle technologies, such as forward collision warning or automatic headlight systems, are being used. The new NHTSA rating system will now go through a 60-day public review process and could be revised before going into effect, as planned, for the 2019 model-year.
• Korean company Samsung is looking at growing its business through automotive technologies like autonomous vehicles, satellite navigation, and in-car entertainment. Making Android phones for Google hasn’t been enough as the smartphone business weakens, and it wants to take on other technology companies like lawsuit nemesis Apple in autonomous vehicles.
• One technology company that has already plunged into autonomous vehicles is Delphi. The automotive supplier will be showing off its own self-driving vehicle at CES 2016. Features include improvements in vehicle-to-vehicle including abrupt entry of a car into the lane; vehicle-to-pedestrian which can alert pedestrians about upcoming cars; vehicle-to-traffic light with status reports on yellow and red lights at intersections; blind corner warnings when intersections are at strange angles inhibiting vision of approaching cars; and a ridesharing feature where the driver’s friends and family can be notified of the driver’s location so that a ride can be requested.
• Ford Motor Co. is testing out an Uber-like service for employees. Its new Dynamic Shuttle Project will provide a fleet of 21 modified Ford Transit vans to Ford employees at its Dearborn, Mich., campus. They’re operating like a cross between a bus system and the increasingly popular Uber ride-share service, helping hundreds of employees schedule rides through a smartphone app. It’s a cross between a shuttle bus system and a ridesharing service like Uber, where hundreds of employees can schedule rides through a smartphone app. It ties in well with a vision shared earlier this year. At the annual Consumer and Electronic Show in Las Vegas last January, CEO Mark Fields declared that Ford now sees itself as a “mobility company,” rather than simply an automotive manufacturer. The automaker announced it was studying 25 different alternative mobility projects – which tied in well with a guest column Ford chairman Bill Ford had published in The Wall Street Journal’s 125^th anniversary issue.

by Jon LeSage, editor and publisher, Green Auto Market

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

1. Model X SUV rolls out: The long-awaited Tesla Model X was unveiled a week ago at a warehouse party in Fremont, Calif. The luxury all-electric SUV gets 257 miles on one charge and can reach 60 mph in 3.2 seconds in Ludicrous mode. As we’ve know about for three-and-a-half years, it comes with futuristic falcon-wing doors. It is an expensive car, reminiscent of the BMW i8; the Model X comes with a $132,000 price, plus delivery and other fees. The Tesla Model S has been selling in various editions from about $75,000 to around $100,000 and lease payments have been in the $1,100 to $1,300 per month range. There are no details released yet on what the Model X will cost in payments through financing options, but it has required a $40,000 deposit. Demand is strong, even at its high price. There should be a lot more owners lining up for the cheaper Model III, which is due to roll out in 2018.
2. Chevy Volt attack ads: When the revamped 2016 Chevrolet Volt rolls out next spring, General Motors has plans to attack its arch enemies, the Nissan Leaf and Toyota Prius. At the press launch in San Francisco, Chevrolet executives showed the ads to automotive journalists. The Volt ads focus on three messages: The car’s 53-mile all-electric range, its advanced technology, and a combined gasoline and electric driving range of more than 400 miles. The 2016 Volt has a sticker price of $33,995, including destination – down from the 2015 price of $35,110 including shipping.
3. New name for Fisker Automotive: The luxury sports carmaker Fisker Automotive has renamed itself Karma Automotive. The new company intends to bring the Karma plug-in hybrid back to market next year. The company says the new name was chosen because it’s “relevant to both the old and new brands, while providing an aspirational message which embodies the company’s purpose.”
4. GM gets into personal mobility: General Motors will be investing $5 billion to take on new challengers such as Apple, Google, and Tesla, CEO Mary Barra said. During the Thursday meeting at its GM Proving Grounds near Detroit, Barra also announced the automaker’s “Let’s Drive” carsharing program in New York City. It will be available to eligible residents of The Ritz Plaza, who will have access to a GM vehicle for three hours each month. Those interested can buy more carsharing hours at a nominal rate. In related news, GM discussed plans to test out a fleet of autonomous 2017 Chevrolet Volt plug-in hybrids at its Tech Center site in Michigan. Employees will use the vehicles to get around the 326-acre campus in Warren, Michigan.
5. RNG buses: Orange County Transportation Authority (OCTA) in Southern California plans on switching over to renewable natural gas (RNG) in its existing fleet of more than 340 compressed natural gas buses – and will add 202 new buses. The transit agency is looking for a supplier to provide a guaranteed supply of RNG to its four facilities; the supplier will develop and manage OCTA’s Low Carbon Fuel Standard (LCFS) program.
6. Honda fuel cell car: It’s take a while, but Honda is getting ready to unveil its fuel cell vehicle, currently being named the Honda FCV. It’s scheduled to be rolled out at the Tokyo Motor Show, and will feature a very similar look as the finalized version Honda will be bringing to market next year. Honda said it has made a few changes to the FCV since introducing it as a prototype in November 2014.The range is being extended to more than 300 miles; that will place it in a competitive position with the 301-mile rated Toyota Mirai.