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Volkswagen has added another law firm to it defense strategy – Kirkland & Ellis, which represented BP in the Deepwater Horizon oil spill law suits and settlements. Yesterday, I spoke with an attorney who represented corporations, small business owners, and local governments in a class action lawsuit for parties that experienced economic losses and environmental disasters associated with the oil spill. Thomas Young, who heads a law firm based in Tampa, Fla., is now working with other attorneys to file a class-action lawsuit representing dealers, fleets, and other entities affected by the economic impact of VW’s diesel car emissions reporting scandal.

The recall, which won’t go into effect immediately and is awaiting detailed guidelines from the U.S. Environmental Protection Agency (EPA), affects 482,000 cars in the U.S., could eventually cost the company about $18 billion to repair, and could include a $37,500 fine per vehicle given to VW. Affected diesel models include the 2009-15 Volkswagen Jetta, 2009-15 Beetle, 2009-15 Golf, 2014-15 Passat, and 2009-15 Audi A3. VW is expected to negotiate a per car fine with EPA at a lower cost than the $37,500 maximum, but the lawsuits will be staggering. According to Young, over 300 lawsuits have been filed across the country with most all of them class actions and 99% filed on behalf of consumers. Young is organizing a class-action suit representing businesses that will be hard hit by the declining used car values and other costs associated with the crisis.

With a widely publicized crisis like this one, it’s typical to see lawyers all over the country filing lawsuits and eventually consolidating down to a much smaller number of suits – perhaps one federal lawsuit representing all injured parties. The U.S. Judicial Panel on Multi-District Litigation (JPML) will meet on Dec. 3, 2015 in New Orleans to hear arguments on where to consolidate the 300-plus lawsuits; that decision should be announced in January 2016. Early front runners for the class-action suit are federal courts in New Jersey, Virginia, or California, Young said.

For the BP oil spill, the impact for the oil company was as much about it reputation and image in the world as it was about the environmental and economic damage, Young said. With the Deepwater Horizon spill, the amount of oil that washed up onshore was less than the public’s perception of how much oil was spilled and the environmental damages. The economic impact was felt by local communities with about $20 billion in estimated losses from dramatically declining tourism business in the Southeast U.S. Young estimates that BP paid out about $60 billion in cleanups and lawsuit settlements.

Young and other attorneys are carefully watching how VW responds to the crisis, what the EPA will issue in its recall guidelines, and how dealers and other businesses will be impacted. The lawsuits being filed are also gaining their attention and analysis – including Harris County, Texas, filing a multimillion dollar lawsuit this week stating that VW contributed to the region’s poor air quality in the Houston metro area. Independent auto dealers have filed suit against VW in a California federal court on behalf of independent dealers for losses they say they will incur as more information on the scandal is released. A pension fund in Michigan has filed the first investor lawsuit against Volkswagen over its drastic stock drop in the aftermath of its emissions scandal.

Owners of VW diesel vehicles are furious about software that falsifies emissions; they’re waiting to hear how and when the company will fix their cars and what sort of compensation they’ll receive for being lied to since 2009. VW shareholders are paying close attention, as well. Elected officials and regulators in the U.S. and Europe are scheduling public hearings. VW’s top U.S. executive has been summoned to Washington, where he will testify before a congressional oversight panel on October 8.

VW appears to be attempting to keep investigation of this scandal in-house, taking care of it on its own. The automaker is facing growing concern that it may need to revise its corporate culture and allow for more outside supervision; as General Motors did with the ignition-switch defect vehicle recall.

On Thursday, VW’s board of directors announced that Hans-Dieter Pötsch, VW’s chief financial officer since 2003, would become chairman in the near future, filling the spot vacated by patriarch Ferdinand Piëch, who resigned in April. Deciding to nominate a long-serving executive as chairman has once more highlighted the carmaker’s corporate governance and culture. Some auto industry analysts argue this was the root cause of the diesel-emissions scandal. “There have been warnings about VW’s corporate governance for years, but they didn’t take it to heart and now you see the result,” said Alexander Juschus, director at IVOX, the German proxy adviser.

Young is reaching out to dealers, fleets, financial institutions, and other parties economically impacted by the VW diesel crisis. He hasn’t heard of a VW dealer filing suit yet, but he thinks that will happen and that a federal judge will include all VW and Audi dealers in a class-action suit. The legal issues are accountability for accurate emissions reporting, environmental impact, and the huge losses businesses will be feeling from vehicle valuation declines and lost sales that are likely to come from the crisis. Toyota and GM have recovered from huge vehicle recalls, but there will be much weighing on EPA and VW on how the recall is structured and carried out into next 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…….

1. 50% petroleum reduction bill dies: California did take a giant step forward in Gov. Jerry Brown’s climate change legislation on Friday, but motor vehicles were unfortunately cut out of the negotiated deal. SB 350, the Clean Energy and Reduction Act, was notable for increasing mandates on renewable energy used to power electricity; efforts to cut petroleum consumption in the state 50% by 2030 were cut out of the settlement. The bill, authored by Senate President Pro Tempore Kevin de León and Senator Mark Leno, called not only for a 50% reduction in petroleum use in cars and trucks but it also called for a 50% increase in energy efficiency in buildings and half of the state’s utility power coming from renewable energy. The Western States Petroleum Association led the charge to defeat the petroleum provision with a major campaign to block the legislation. The oil industry’s campaign showed advertisements charging the bill could lead to fuel rationing and bans on sport-utility vehicles. Automakers had expressed concern that the state already had its aggressive mandate in place for hitting zero emission vehicle (ZEV) targets and that jumping that target up to 50% petroleum reduction was far from what could be accomplished in conjunction with the federal fuel economy and greenhouse gas emissions targets.
2. Funding available for EV charging stations: You can view presentations and hear the entire recording on “Funding & Financing Electric Vehicle Charging Stations for your Business.” Panelists talked about reducing the cost of buying and installing the equipment for workplaces and multi-unit dwellings. Speakers included Rick Teebay, of LA County Office of Sustainability and co-chair of the event sponsor, LAEDC’s e4Mobility Alliance. NRG’s Kevin Kelleher talked about the utility’s Ready for Electric Vehicle (REV) Program. NRG eVgo can provide funding up to $30,000 in electrical infrastructure upgrades for qualified California workplaces and multi-family properties; other funding programs were detailed during the presentation. Click here to fill out the form and download the webinar.
3. Audi, Porsche, Jaguar, and Land Rover plan to roll out new plug-in models to meet demand from luxury and sports car enthusiasts – and to maybe take some business away from Tesla Motors. Audi is getting ready to roll out a battery-powered SUV that could be faster and deliver better performance than the Tesla Model X. It could come to market by early 2018. Porsche is rolling out the high-performance Mission E, a concept car the German automaker is unveiling at the Frankfurt Motor Show. The 600-horsepower Mission E will make it to 62.5 mph in under 3.5 seconds. Drivers of the Mission E will be able to go more than 310 miles per charge if they’re being a little more gentle on the throttle. Jaguar Land Rover Automotive PLC will be adding advanced, battery-based powertrain systems to its high-performance offerings such as the Jaguar F-Type and Range Rover. The British automaker is exploring several green car options to meet government mandates – including the electric models, a couple of hybrids, diesels, and lightweighting the vehicle bodies.
4. Algenol Biotech and Protec Fuel Management have entered into an agreement to market and distribute a new type of ethanol from Algenol’s Fort Myers, Fla., commercial demonstration module. The companies say it’s the first time that ethanol made from algae will be available commercially. Protec Fuel will distribute and market the fuel for E15 and E85 applications for both retail stations and general public consumption, as well as fleet applications. The partner companies will also offer Algenol’s future 18 million gallons per year from its commercial plant, which is planned for development in Central Florida in 2016 and 2017.
5. UPS has purchased 125 E-GEN range-extended electric delivery trucks that were produced by Workhorse Group. The trucks are scheduled to be deployed in Arizona, Texas, Nevada, Mississippi, Alabama, Georgia, and Florida during the first half of 2016. “This investment will help create and grow the market for ground-breaking alternative propulsion systems that reduce environmental impact, reduce operating costs and save fuel,” said UPS senior vice president global engineering and sustainability Mark Wallace in a release. UPS expects to see significant fuel economy equivalency gains on the trucks designed for urban routes traveling 50-to-60 miles per day.
6. Warning issued about hacking driverless cars being too easy: A security firm is concerned that hackers will be able to play with the complex LiDAR (Light Detection and Ranging) systems that are integral for driverless cars, to fool the onboard system into a crash with merely $60 in parts. It’s happening through a small, low-power laser and a pulse generator, said Jonathan Petit of Security Innovation. It could even be replaced by a Raspberry Pi, a small computer board used in DIY projects, he said. The attacker can trick the car into thinking there are objects where there actually isn’t – potentially forcing the car to slow down, stop, or swerve. “I can take echoes of a fake car and put them at any location I want,” Petit said. “And I can do the same with a pedestrian or a wall.”
7. Elio Motors and its three-wheeled personal transportation vehicles was named one of the “Top 10 Automotive Startups,” by the LA Auto Show’s Connected Car Expo. Elio Motors was recognized for offering a fun-to-drive, super-economical, environmentally friendly personal transportation alternative. The Elio is designed to achieve up to 84 MPG with a targeted $6,800 base price.
8. Toyota building flying cars?: Toyota Motor Corp. has filed for a patent with the U.S. Patent and Trademark Office for a “stackable wing for an aerocar.” The wing can change shape and guide the car during flights. One configuration from Toyota shows the wings as if they were stacked atop the car roof, and another image shows a more aerodynamic shape for when it’s deployed for flight.
9. Bosch leading CNG fuel system: A consortium of automotive suppliers and vehicle manufacturers in Germany are being led by Robert Bosch GmbH to develop a new fuel system for compressed natural gas (CNG). The concept is based on direct injection, which would make natural gas vehicles even more economical and environmentally friendly. Bosch says the new technology could deliver as much as 60% more torque at low rpm, and offer the prospect of an even more dynamic driving experience in CNG vehicles.
10. EV sales in China jump: Electric and plug-in hybrid car sales leaped 270% to 108,654 cars in January through August of this year, the China Association of Automobile Manufacturers (CAAM) said. With incentives and targets, the Chinese government is pushing automakers to develop battery electric cars. Electric powertrains are simpler to develop, and driving a push to green cars fits President Xi Jinping’s policy goal of reducing pollution through manufacturing “new energy” vehicles, according to a Reuters article.

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. Is Apple jumping into the autonomous vehicle space, and how about electric vehicles?  Jamie Carlson, former “Autopilot Firmware Manager” at Tesla Motors, joined Apple this month to work on a special projects team at the company according to his LinkedIn profile. What about Project Titan, the code name for Apple’s electric vehicle program? Apple won’t make an official statement about entering the car business, but it has hired several people with impressive autonomous vehicle backgrounds. Along with Carlson, colleagues at Apple include Megan McClain, a former Volkswagen engineer with expertise in automated driving; graduate researcher Vinay Palkkode who came from Carnegie Mellon, and Paul Furgale, the former deputy director of the Autonomous Systems Lab at the Swiss Federal Institute of Technology. Driverless car testing (including what Apple will likely be doing at the GoMentum Station in Concord, Calif.) is on the minds of many these days, including Daimler CEO Dieter Zetsche – and it could indicate that Apple and Google are setting themselves up to be technology partners with major OEMs, not necessarily following Tesla into the incredibly costly vehicle manufacturing space. “Google and Apple want to provide system software for cars and bring this entire ecosystem around Apple and Google into the vehicle,” Zetsche said. “That can be interesting for both sides.”
2. Tesla Motors revamping stores: Tesla will be remodeling its retail stores soon to coincide with the upcoming launch its Model X electric SUV. So far it’s only through one of its stores in San Jose, Calif., where visitors get to see interactive displays built around four major themes: safety, autopilot features, Tesla’s charging network, and the dual motors that power each axle. Tesla will have more cash reserves than expected to pay for these and other projects; its secondary stock sales brought proceeds up to an estimated $738.3 million – well over the $642.5 million the company announced that it needed to raise last week. Tesla sold 3.1 million shares at $242 each to give itself a cash cushion as it prepares to begin deliveries of its Model X. In other news, Tesla announced that it will be installing charging stations at 30 West Coast hotel properties managed by Airbnb Inc. Tesla says these are “high-end” Airbnb properties that come through Airbnb’s “shared economy” model (similar to Uber and other ridesharing companies and Car2Go and other carsharing services) where property owners rent out house space to customers.
3. Ford of Europe COO working with Chinese company: Former COO of Ford Europe Martin Leach is now working for a new electric car manufacturer based mainly in China and California. Leach is recruiting staff for the company but declined to name his new employer; he says that the company doesn’t have a background in the auto industry. The new automaker will start out making electric vehicles and may eventually produce autonomous vehicles, he said. Enhancements in battery technology that will extend range, and government incentives, are setting up a viable market – especially in Chia, Leach said.
4. Connecticut’s big ideas for EV incentives: Connecticut is taking on California to become the cutting-edge electric vehicle (EV) incentive state. In May, “cash-on-the-hood” rebates for EVs showed up, making it the first state to go with the cash incentive model. “We’re a small state, but we have some big ideas, and maybe we can show California how to do this” by using automaker-style customer rebates, said Jim Fleming, president of the Connecticut Automotive Retailers Association in Hartford. The Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR) program has set aside $1 million for rebates from $750 to $3,000 per electrified vehicle, depending on battery size. The rebates are on top of a $2,500 to $7,500 federal tax credit for the vehicles. There is a way to go in catching up with other states in funding the incentives – so far, only a small part of the $1 million fund is set aside for dealer cash.
5. Carsharing Potential in NYC: Could carsharing services from Car2go and its competitors such as Zipcar actually replace taxis and subway rides? A Crains New York article ponders the question. It may also involve tiny, nimble cars like the Smart cars being used in the Car2go fleet. The challenges and opportunities for Car2go are there, according to the article: Buses are too slow, subway lines can require long routes, and cabs and Uber rides can quickly get expensive. Customers can locate, reserve and open rides on Car2go’s Smart cars with a mobile app, which means the carsharing company could complement the transit system and help fill a hole in the way people get the city.
6. GM investing in Chinese factory: A General Motors join venture in China will be investing about 3 billion yuan, or $470 million, to build “new energy vehicles” for plug-in vehicles and hybrid cars. SAIC-GM-Wuling, a three-way joint venture with SAIC Motor Corp Ltd, GM, and Wuling Motors Holdings Ltd, began construction of the plant last week in the province of Guangxi. That’s coming from the Chinese government’s mandate for automakers to reduce air pollution in cities.
7. New study on EV battery leaders: Panasonic is the market leader in the battery market for electric vehicles, but LG Chem has the potential to overtake Panasonic in what will be a $30 billion market in 2020, according to a new study from Lux Research. Panasonic has nearly 40 percent of the share but its dependence on a single deal with Tesla Motors makes the company vulnerable. LG Chem has a strong client list that includes GM, Volkswagen, Daimler, and Ford.
8. New study on autonomous vehicles: Navigant Research estimates that 85 million autonomous-capable vehicles are expected to be sold annually around the world by 2035. How many of these will be used as fully automated vehicles? Navigant is being vague about it, as are other transportation forecasters. The study focuses on the semi-autonomous technologies already being deployed in new vehicles, such as cruise control on freeways and navigation systems for safely navigating traffic jams. Installing multiple sensors will increase that capability.
9. Prius global sales: The Toyota Prius has surpassed another milestone – seven million units have been sold globally since it was launched in 1997. The Prius has made up the lion’s share of Toyota and Lexus hybrid sales – eight million hybrids have been sold globally with seven million being Priuses. Hybrid models vary outside the U.S., including a Yaris Hybrid sold in Europe and the Crown Royal Saloon Hybrid sold in Japan. Outside the U.S., models vary from a Yaris Hybrid sold in Europe to the Crown Royal Saloon Hybrid, a big rear-wheel drive luxury sedan sold in Japan.
10. Dealing with aging hybrid batteries: Toyota and Honda hybrids have been on US roads for the past 15 years, and many of them need service or replacement to stay on roads. Owners are facing decisions over which of the 3 Rs they want to choose for their battery packs – reuse, repurpose, or recycle. EV World profiled GreenTec Autos, which has been positioning itself as a leader in the field. The company has 11 locations in the US from the West Coast to the Northeast, with a service center in Kansas City. GreenTech Auto also offers a mobile operation to service hybrid vehicles.

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. CAR Management Briefing Seminars in Traverse City: While a huge storm postponed the start of CAR Management Briefing Seminars last week in Traverse City, Mich., things got underway later that day for the 50^th annual thought leadership event. Here are some of the highlights from what’s considered to be the most important annual conference for automotive executives…….

• The practicality of US and California fuel efficiency and emissions rules set off a heated debate in Traverse City. Automakers are struggling to meet California’s demand to see 15% of new vehicle sales be zero emission vehicles (ZEVs) by 2025, according to executives of two major automotive lobby groups. Diarmuid O’Connell, vice president of business development at Tesla Motors, made the opposite argument. California and the nine other states that have adopted the ZEV policy should make the rules tougher. Tesla profits from selling the ZEV credits to other automakers who aren’t hitting those targets.
• Chris Grundler, director of the EPA’s Office of Transportation and Air Quality (and featured in the photo above), said that the federal agency has not already set in stone the 4 mpg mandate for corporate average fuel economy. That will be determined by April 2018 after a review in 2017 and 2018. Issues such as fuel process and acceptance of new technologies will be reviewed; and the EPA administrator will make the final decision and will for the next president, Gundler said.
• Ford Motor Co. was the winner of the 3^rd annual Altair Enlighten Award for its use of various lightweighting materials in the 2015 Ford F-150. The award is given out by Altair and the Center for Automotive Research (CAR) and was created to acknowledge innovation in vehicle weight reduction. Ford was named the winner for taking 700 pounds off of the Ford F-150 while improving its performance, safety, and fuel efficiency.
• China is seeing the manufacturing of a high volume of electric vehicles – 84,700 battery electric and plug-in hybrid electric vehicles last year; and up 83,100 units in the first six months of 2015, according to Yonghe Huang, director of policy research at the China Automotive Technology Center. Challenges prevail, including a lack of public charging stations, a limited number of garages for parking the cars, and not enough demand to sell all these electric vehicles. Air pollution in its major, developing cities and abundant government incentives are spurring the production volumes. Automakers are skeptical about whether all of this will work as sales have been soft; even Tesla Motors has been struggling to get the ball rolling, as indicated by its recent Chinese management turnover right after sales objectives were not met.
• Using modular parts is dramatically reducing costs for batteries, motors, and other components in General Motors’ six electrified cars, said Pam Fletcher, GM’s executive chief engineer for electrified vehicles, during one of the management briefing seminars. All of these vehicles – the Chevrolet Bolt, Volt, Spark EV and Malibu Hybrid and the Cadillac ELR and CT6 PHEV – share powertrain components and technologies, Fletcher said. For example, the gasoline-electric powertrain in the upcoming Chevrolet Malibu Hybrid is nearly identical to that of the 2016 Chevrolet Volt. Editor’s Note: Ramping up to reach economies of scale and bring down production costs, leveraging its marketing muscle, and retailing through its dealer networks are other benefits that GM holds over small, startup electric vehicle manufacturers.

2. Tesla guards against hackers: Cybersecurity researchers found they could take control of a Tesla Model S in a test project in one of six ways that need to be corrected. Tesla sent out a software patch to address the security flaws and protect Model S owners and the general public from hackers. Cybersecurity firm Lookout and technology company Cloudflare decided to hack a Tesla car because the company has a reputation for understanding software that is better than that of most automakers, they said. Tesla chief technology officer JB Straubel appeared at the Def Con annual hacker convention last week in Las Vegas to thank the researchers who uncovered vulnerabilities in Model S electric car software. Straubel also announced a hike in Tesla’s hacking bounty to $10,000.
3. EV sales in July: Tesla Model S was the clear leader in plug-in sales during the month of July, while the Chevrolet Volt increased to the second position and the Nissan Leaf fell back to No. 3. The BMW i3 had a strong month with a 70% sales increase over June and about 157% higher than a year earlier. Overall, U.S. plug-in sales were down 13.5% from the previous month and 21.4% from a year ago. Editor’s Note: See this week’s feature, “Sales are soft, but OEMs aren’t giving up on zero emission vehicles” for analysis of what’s ahead for green car sales.
4. Stop-start technologies seeing major growth: Chicago-based research firm Navigant Consulting predicts that 35% of new vehicles sold in North America will have stop-start systems, up from 10% this year. It’s part of automakers moving forward on hitting the federal government’s 54.5 mpg by 2025 target. The stop-start system shuts off the vehicle’s engine when it comes to a stop, and then restarts the engine when the driver takes his or her foot off the brake.
5. Mike Calise leading Car Charging Group: Car Charging Group, Inc., a publicly traded supplier of electric vehicle charging services, has named Mike Calise as CEO; Michael Farkas will continue to service as board chairman and Chief Visionary Officer. Calise most recently served as Head of North America EV Solutions at Schneider Electric; prior to that, he was founder of EVadvise, a consulting firm focused on mass scale electric vehicle infrastructure, where he developed the EV Charging infrastructure technology plan for Marin Transportation Authority’s countywide charger deployment as well as others.
6. Clean Power Plan increases goals: The Obama Administration has released the final version of the Clean Power Plan, which raised the bar on cutting carbon pollution from electric power plants to 32% from the initial 30% target. There has been some increased flexibility in the new plan – they must comply by 2022 instead of 2020 and the emissions reductions are phased in on a “gradual glide path” to 2030. The final Clean Power Plan also gives states more flexibility to meet the ambitious carbon standards: they must comply by 2022 instead of 2020 and the emission reductions are phased in on a “gradual glide path” to 2030. On Friday, 365 companies and investors including General Mills, Mars, Nestle, Staples, Unilever and VF Corporation sent letters voicing their support for the plan and encouraged states to release “timely finalization” of state implementation plans to meet the new standards. The National Association of Manufacturers said the rule will threaten manufacturers’ competitiveness and drive up electricity costs.
7. What EV owners think: Ford Motor Co. recently surveyed 10,000 electric vehicle (EV) owners in the US to gain understanding of their perceptions. Overall, EV owners love their vehicles and smart phone applications; 83% will consider, or already have installed, solar power to charge their vehicles at home to reduce emissions and save money; 92% of battery electric and 94% of plug-in hybrid drivers plan to purchase another EV in the future; EV owners use smart phone apps regularly and want to see vehicle health alerts, public charging station locators, charging time indicators, and reserving and paying for charging functions. About half of plug-in hybrid drivers and more than a quarter of battery electric drivers are using conventional outlets (120/110 volt) to charge at home; 88% of EV drivers would like to have a fast charger installed at their home.
8. Propane seeing a strong year: Sales of propane-powered fleet vehicles, and the propane needed to run them, are taking off this year. Propane prices are at a 13 year low and are 75% cheaper than diesel, along with bringing environmental gains of 12% less carbon dioxide than gasoline. The price differential is driven by a glut of propane coming from shale wells, with much of that coming out of the Marcellus field. ICF International Inc., a Fairfax, Virginia, consulting firm, expects U.S. sales of propane-powered vehicles to reach 20,000 units this year, a 35% jump over 2014, and slightly higher than what’s expected to be seen in fleet purchases of natural gas vehicles this year.
9. Tesla quarterly earnings good or bad?: During its quarterly earnings call last week, Tesla Motors said that its energy storage products are taking off in customer orders while the company also downsized its prediction for electric car sales this year – from 55,000 to around 50,000. CEO Elon Musk thinks it will be “quite a challenging production ramp” to deliver a realistic number of soon-to-be launched Model X units at the quality level the company wants to meet. The company reported $1.2 billion in Q2 revenue, up from $857.5 million a year ago. Fortune analyst John Kell thinks it’s all much worse than Tesla reported. Kell wrote that Tesla is losing more than $4,000 on every Model S it sells. The analysis goes to Tesla burning through $359 million in cash last quarter. Tesla had just $1.15 billion on hand as of June 30, down from $2.67 billion a year earlier. Tesla reported that the $359 million was spent on expanding capacity at its Fremont, Calif., plant to make room for the Model X; and for construction costs at the Gigafactory in Nevada.
10. Hyundai and Kia jumping into electrified sector: Hyundai will be expanding its green car offerings through its Hyundai and Kia brands. Along with the Tucson hydrogen model, Hyundai and Kia may be launching four hybrid models, two plug-in hybrids, and one battery electric car between the 2016 and 2018 model years, according to sources familiar with the company. The hybrids may be built on the compact-car platform that will be used in the next-generation Hyundai Elantra and Kia Forte. The hybrids would be powered by a direct-injected 1.6L gasoline engine paired with an electric motor. The Kia might end up being designed as a crossover, and the Hyundai as a liftback sedan similar to the Chevrolet Volt.

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. AFV training schedule: The National Alternative Fuels Training Consortium (NAFTC) has released its fall alternative fuel vehicle training schedule ideal for professionals serving the clean transportation space – including service technicians, fleet managers, municipalities, and consumers interested in learning about alternative fuel vehicles The schedule includes courses for automotive technicians, including Light-Duty Natural Gas Vehicle Training, Compressed Natural Gas (CNG) Vehicle Fuel System Inspector Training, and Electric Drive Vehicle Automotive Technician Training. The schedule also includes the Hydrogen, Hydrogen Vehicle, and Hydrogen Fleet Awareness Workshop. All classes feature a combination of classroom and hands-on training and will be held at the NAFTC headquarters in Morgantown, WV. Continuing Education Units from West Virginia University are available for all training classes.
2. Mcity seeing investors: Ford, General Motors, Honda, and Toyota are among the companies each investing $1 million over three years in the University of Michigan’s Mcity. This testing ground if considered to be the first controlled environment specifically designed to measure the potential of connected and automated vehicle technologies that will lead the way to mass-market driverless cars. Thirty-three Affiliate Members are also contributing, and investing $150,000 over three years, to the University of Michigan’s Mobility Transformation Center. Current Leadership Circle companies are: Delphi Automotive, Denso, Econolite Group, Ford, GM, Honda, Iteris, Navistar, Nissan, Qualcomm Technologies, Robert Bosch, State Farm, Toyota, Verizon Communications, and Xerox.
3. China following California: China has been learning lessons from government policies in California to encourage automakers and consumers to purchase plug-in electric and hybrid vehicles. China’s program will extend incentives for hybrids, which had been downplayed due to the strong presence of Japanese automakers like Toyota in that market segment. Chinese carmakers such as BYD Co and SAIC Motor Corp. will benefit, but so will global rivals on a more level playing field.
4. GM investing $5B: General Motors will be spending $5 billion over the next decade on a new family of Chevrolet models aimed at emerging markets such as China, India, Brazil and Mexico. Most will be small cars but may include crossovers. “This new vehicle family will feature advance technologies focused on connectivity, safety and fuel efficiency delivered at a compelling value,” said Mark Reuss, GM executive vice president.
5. EPA certification: The U.S. Environmental Protection Agency (EPA) has certified Blossman Services’ propane-autogas-powered Ford Transit van. Blossman upfits the Transit with a Prins bi-fuel VSI 2 system with Ford’s 3.7-liter V-6 engine.The bi-fuel system is designed to cut installation time in half and ensure consistent performance, says Alliance AutoGas, which is managed by Blossman Gas.
6. Prius Plug-In range extension: Editors at Green Car Reports have recently heard from an industry source that the next Toyota Prius Plug-In Hybrid will have “30 to 35 miles” of rated battery range. The fourth-generation 2016 Prius hybrid is expected to launch within the next few months. The company has said that the plug-in hybrid version will lag the conventional hybrid model by about a year.
7. EVs vs. hydrogen: A recent Green Car Reports article dealt with hydrogen fuel cell car drivers being frustrated with the unreliability of current hydrogen fueling stations in Southern California. That story has accumulated more comments than any other article published in Green Car Reports, with about 2,000 coming in by the end of the day. Opinions expressed by electric vehicle (EV) advocates were similar to public comments made by Tesla Motors CEO Elon Musk; they disdain hydrogen fuel cell vehicles and think there’s been way too much attention on that technology and fuel this year. Drivers of hydrogen-powered cars tend to be just as, or more, passionate about the topic as EV drivers – but their numbers are so far much smaller.
8. NGV refueling stations: Navigant Research expects to see huge growth in global natural gas vehicle (NGV) refueling stations – from 23,001 this year to 38,890 in 20205. A large drivers of this trend will be fleets making NGV acquisitions. “As fuel economy and greenhouse gas emissions standards become increasingly stringent in world markets—particularly for medium and heavy duty vehicles (MHDVs), where electrification is less practical— (natural gas) is becoming an attractive alternative to diesel,” the study says.
9. Apple buying technology from BMW?: German business magazine Manager has reported that Apple proposed to BMW that the i3 – or parts of it – could form the basis of Apple’s own electric-car project. Apple had no comments to make, and has been staying in secrecy about its plans to enter the automotive industry as a manufacturer.
10. Coal-powered plants: The U.S. Energy Information Administration predicts that coal’s share of U.S. electricity generation will decline from 44% in 2011 to 32% in 2040. Most of these coal-powered plants are located in or near Virginia, West Virginia, Kentucky, Ohio, and Indiana, which are accounting for 8GW of the expected retirements. The rest of the 13-GW total will include plants in Alabama and the Midwest.

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. Clean transportation product launches coming up: Ford, Cummins Westport, the North American Council on Freight Efficiency (NACFE), Rush Enterprises, Alliance AutoGas, ClipperCreek, Parker, Bauer Compressor, Quantum Technologies, Superior Transportation Solutions, and other companies will be introducing new alternative fuel and clean vehicle technologies at the Alternative Clean Transportation (ACT) Expo. Event organizer Gladstein, Neandross and Associates (GNA) expects that more than 3,500 clean transportation stakeholders and 200 plus exhibitors will convene May 4-7 at the Kay Bailey Hutchison Convention Center in Dallas for ACT Expo, the industry’s largest annual alternative fuel conference and expo. “As the transportation industry faces volatile oil prices and continually tightening emissions regulations, it’s vital for fleet operators to understand the wide range of options available—including electric, hybrid, hydrogen, natural gas, propane autogas, renewable fuels, DME, clean diesel, and efficiency technologies,” said GNA CEO Erik Neandross.
2. Enterprise and Trucking Moves America Forward Honor Earth Day: With the 45^th annual Earth Day taking place on April 22, Enterprise Rent-A-Car announced its contribution for the 10^th consecutive year to the Arbor Day Foundation. The Foundation uses funding from the Enterprise Rent-A-Car Foundation to plant one million trees throughout the US, Canada, the United Kingdom, and Germany as part of the Enterprise 50 Million Tree Pledge. By the end of 2015, 10 million trees will have been planted through the program in forests  through this unique public-private partnership, which – in addition to the Arbor Day Foundation – also includes the US Forest Service, US National Park Service, Tree Canada, Trees Ontario, the U.K.’s Woodland Trust and the German Forest Protection Association (Schutzgemeinschaft Deutscher Wald). Trucking Moves America Forward (TMAF), the industry-wide image and education movement representing all areas of the professional truck driving industry, honored Earth Day by celebrating the progress the trucking industry is making toward a more sustainable future, which includes adopting industry recommendations to reduce carbon emissions. Some of the many programs, efforts and technologies that trucking companies and drivers support include: training that emphasizes fuel-saving driving techniques; reducing wait times at loading and unloading docks to decrease engine idling emissions; reducing pollution through ongoing participation in the EPA SmartWay Transport Partnership program; advancing alternative-fueled vehicles and fuels; lowering fuel consumption by reducing empty miles driven; and promoting more efficient freight hauling and freight packaging practices.
3. Tesla-rama: Hackers took on Tesla Motors by attacking its Twitter site and media-relations email account on Saturday. Tesla joins Sony Pictures and several other companies in getting hacked; in this situation, the hackers who entered Tesla’s Twitter feed were able to post messages to the company’s more than 564,000 followers, and one of the attackers responded to an email message to Tesla’s press contact……….. JB Straubel, co-founder and CTO of Tesla Motors, will be a keynote speaker at the 2015 EIA Energy Conference. The U.S. Energy Information Administration (EIA) will hold the conference on June 15 and 16 at the Renaissance Downtown Hotel in Washington, DC………. Tesla CEO Elon Musk only earned $35,360 from his Tesla paycheck last year; however, Musk has done very well with his Tesla stock portfolio over the past two years and from his salary at SpaceX, the private rocket launching service he also founded.
4. No more Bullsh*t about hydrogen:  As Toyota begins production of its Mirai hydrogen fuel cell car, the automaker is taking on hydrogen critics. It’s the most abundant element in the universe, but critics say that hydrogen fuel cells are not going to work as a viable alternative energy for transportation – it’s dead on arrival. Those that call it “bullsh*t” are right, but not in the way they think, the Toyota video says. Manure provides an enormous amount of energy, as do water and other sources, explains Toyota engineer Scott Blanchet while visiting a farm.
5. Audi plug-in hybrids: Audi believes plug-in hybrids are the best alternative to offer customers, and will be making that option a preferred choice for customers on several models over the next 10-to-15 years. First up will be a full-electric model – an Audi SUV with a 310-mile range that will take on Tesla’s upcoming Model X crossover, says CEO Rupert Stadler.
6. Americans support RFS: Renewable Fuel Association just paid for a consumer survey and found there’s bipartisan, majority support for the Renewable Fuel Standard. More than six in 10 Americans support it with Democrats at 65%, Independents at 61%, and Republicans at 57%. Less than two in 10 oppose it, and 20% have no opinion. Now it’s time for the US Environmental Protection Agency to release its volume standards.
7. Allied Specialty Vehicles has CNG and Propane partnerships: Big announcements from Allied Specialty Vehicles (ASV), a maker of vehicles for commercial, fire and emergency, and recreation markets……… ASV has an exclusive partnership with Westport to expand availability of the compressed natural gas (CNG) Westport WiNG™ Power System beyond school buses manufactured by Collins Bus; the CNG system will be added to commercial bus, emergency, and other vehicle products.  A week earlier, ASV announced its exclusive partnership with CleanFUEL USA to expand its lineup of propane autogas products. ASV will move beyond propane-powered Collins Bus school buses to “increase the breadth of propane autogas systems we can offer to our customers,” said Tim Sullivan, ASV president and CEO.
8. BMW adding to i series: BMW is adding to its plug-in electric i subbrand with the i5, which will be based on its 5 series. BMW will begin selling the i5 in 2018 and expects that it could be its best-selling i model. The plug-in hybrid executive sedan will have a gasoline engine and two electric motors.
9. Quantum adding to offerings:  Quantum Fuel Systems Technologies Worldwide, Inc., is expanding its offerings beyond natural gas storage systems and plug-in hybrid F150s – hydrogen fueling dispensers. Quantum received multiple orders from Linde North America to develop and manufacture retail hydrogen fueling dispensers for the further development of hydrogen fueling infrastructure in California, which should be delivered by the fourth quarter of 2015.
10. EV used vehicle values: NADA Used Car Guide’s Perspective: Electric Vehicle Retention Report Card was just released this morning. Here’s part of it: “For the most part, used EV prices continue to be very soft, which really isn’t much of a departure from how prices have tracked over the past couple of years. Used EV demand continues to be hampered by range and technology concerns, as well as by stiff competition from highly efficient—and more affordable—gasoline-powered cars.” Top performers on the list are the Tesla Model S at 83.1% retention value and Porsche Panamera S-E at 78.4% retention value. The Nissan Leaf is near the bottom of the list at 43.5% retention value.

For fleets of all types – from light-duty passenger vehicles to heavy-duty commercial vehicles – the challenge these days is making the business case for new vehicle acquisitions and refueling infrastructure that hits targets balanced with cost containment. Vehicle safety, fuel expense, route efficiency, maintenance and durability, and air quality and greenhouse gas emissions might be on the list – under the reality of limited budget constraints. Meeting sustainability targets is going higher up on the list for government and business fleets. Resources now being offered by carbonBLU, Fleet Vision, and NAFA Fleet Management Association will streamline the process and bring value to fleets needing to make that business case.

Rick Sikes, former Fleet Superintendent at City of Santa Monica, has taken the position of Chief Operations Officer (COO) for carbonBLU, which provides fleets with analytics, optimization, and deployment services for reducing spending and pollution. Sikes brings over 35 years of fleet management experience with a wide variety of equipment and alternative fuel vehicles; along with fleet positions at Frito-Lay and UPS, Sikes spent the previous 10 years at City of Santa Monica, which included help organizing the annual AltCar Expo in Santa Monica since 2006. Sikes also played a role in the testing phase of the new NAFA Sustainable Fleet Accreditation Program. Sikes and the carbonBLU team will be promoting that program to fleets as a tool to become more sustainable.

Sikes replaces Sedale Turbovsky, who will continue in his role driving innovation at carbonBLU, but will also be serving as Director of the Center for Alternative Fuels. carbonBLU recently received grant funding from the California Energy Commission (CEC) to create two physical and one virtual Centers for Alternative Fuels. These centers are a free resource dedicated to implementing economically and environmentally sustainable transportation energy strategies. The virtual center for alternative fuels allows fleet managers access to some of carbonBLU’s proprietary analytics tools and a wealth of information to help accelerate commercial deployment of alternative fuels.

Last week, Vision Fleet released a report, prepared for the Colorado Energy Office, on the economic suitability of alternative fuel vehicles (AFVs), efficiency improvement technologies, and alternative fleet management approaches for Colorado’s state fleet. The study holds relevance for other public fleets considering large-scale adoption of AFVs. Vision Fleet has become well known with fleets for its role with the City of Indianapolis in the largest to-date deployment of electric vehicles in a public fleet with 425 plug-in hybrid and battery electric vehicles.

The Vision Fleet report gained input from more than 30 agency fleet coordinators and sustainability contacts to identify appropriate options based on agency-specific vehicle use cases. The study utilized a total-cost-of-ownership (TCO) approach to assess where fuel and maintenance savings would likely offset the higher purchase price of AFVs.

The report recommends several procedural measures for making the case for AFVs and fuel-saving technologies, including committing to targeted, large-scale AFV deployments; replacing appropriate vehicles in the fleet;  effectively bringing drivers into the process; leveraging third-parties to make the business case with management; and identifying cost-effective opportunities for deploying AFVs, telematics, and idle-reduction technologies. “Electric and other alternative fuel vehicles already make economic sense for most public fleets,” said Michael Brylawski, Vision Fleet’s CEO. “The challenge is identifying the right vehicles to replace and then committing the necessary resources and effort – especially in the areas of education, tracking, and reporting – to ensure the program is successful.”

In this video interview with Fleet Management Weekly, Bill Van Amberg, Senior Vice President at CALSTART, talks about the recently announced NAFA Sustainable Fleet Accreditation Program. Van Abmerg says that in the program, NAFA Fleet Management Association and CALSTART look at a fleet’s portfolio to analyze the types of vehicles and fuels that are being used to set a baseline. Fleets are guided over a period of time on using different fuels, phasing in more fuel-efficient vehicles, changing how the fleet is operated, training drivers, and implementing idle reduction. The fleet will later be measured again and given a report card assisting fleets in making environmental improvements while at the same time showing a bottom-line value to their organizations.

The NAFA Sustainable Fleet Accreditation Program is now being structured on a four-tier rating system that evaluates fleets based on their environmental performance against world-leading goals. During the NAFA I&E conference in Orlando, NAFA Fleet Management Association, in conjunction with CALSTART, announced how the program has been designed to become an industry standard for recognizing concrete improvements in reducing emissions, increasing fuel efficiency, and reducing fuel use.