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Big Picture: Tesla becoming a top job creator, and Gigafactories could lead to hundreds of plant openings

With Toyota Motor Corp. announcing its plan to shut down at its US headquarters in Torrance, Calif., and then moving to Texas by 2017, Tesla Motors will become the largest auto industry employer in California. Tesla now employs more than 6,000 people in the state, mainly at its production plant in Fremont. Tesla will add at least 500 more workers by year’s end in California, according to a company spokesman……. Tesla CEO Elon Musk received more media attention last week on where “gigafactories” are headed. Speaking at the World Energy Innovation Forum, Musk said the need for lower-cost batteries for autos and power storage will bring hundreds of these advanced lithium battery plants like the one Tesla is planning with fellow investors. Musk thinks cost will be reduced for these lithium-ion cells initially by 30%, but that will only get better. In other news, Tesla is getting a perhaps temporary break in the state of Missouri in the franchised dealers vs. Tesla online sales battle. Legislators have put a bill on hold until its reintroduced next year.

And in other clean transportation news…….

Japanese automakers have formed a consortium similar to what’s been implemented in Europe – taking a big step forward in fuel-efficient powertrains. Toyota, Nissan, Honda, Mazda, Mitsubishi, Daihatsu, Suzuki, and Fuji Heavy Industries (which makes Subaru vehicles) have pooled resources to jointly produce gasoline and diesel engines that are 30% more fuel efficient by 2020. It’s taking place through a newly created organization, Research Association of Automotive Internal Combustion Engines. The Japanese government is putting up half the budget, which combined totals out to 1 billion yen ($9.9 million).
Check out “Forty One New Models Coming,” an Automotive Digest video featuring AOL Automotive’s Steve Sturm, at the thinkLA, Automotive Breakfast 2014. Sturm thinks that hydrogen fuel cell vehicles rolling out in the next year will have a role to play in new vehicle sales.
Fisker Automotive will be assembling its cars in the US and maybe eventually in China, said Lu Guanqiu, chairman and founder of Fisker’s post-bankruptcy owner, major Chinese auto parts maker Wanxiang Group Corp. The Fisker Karmas out on the roads today were built at an assembly plant in Finland. Lu sounds very serious about building the next wave of Fisker plug-in hybrids. “I’ll put every cent that Wanxiang earns into making electric vehicles,” Lu said. “I’ll burn as much cash as it takes to succeed, or until Wanxiang goes bust.”
Last year’s controversy has subsided over Terry McAuliffe’s GreenTech Automotive company being the subject of a Securities and Exchange Commission for promises made by the electric carmaker while soliciting overseas investors. Its merger with VL Automotive is helping GreenTech Automotive to express optimism about delivery of electric city cars to the Chinese market. McAuliffe, now serving as governor of Virginia, started up GreenTech about five years ago. GreenTech President and CEO Charles Wang last year became embroiled in the governor’s race about the deal making McAuliffe had been part of.
In this day of five million General Motors recalls being announced, 276 Nissan Leafs is a mere pittance. Nissan is recalling 211 vehicles in the US and 65 in Canada to check for a problem with its front structural member assembly. The risk of injury during a crash goes up for these models as the assembly may be missing welds, which affects structural integrity during a crash. Nissan is notifying customers and their dealers to bring in their Leafs for inspection.
Lobbying for higher blends of ethanol at the national and state level is continuing. Legislators in Illinois have heard from a racing celebrity who supports the alternative fuel. NASCAR driver Kenny Wallace. “I’m here to let everyone know not to worry about it,” Wallace said. “I’ve got a lot of knowledge and it’s a clean-burning fuel. It’s good for the environment and it cuts down on emissions.” Wallace has been working with the Illinois Corn Growers Association to advocate blended fuels. Illinois currently provides tax credits for fuel with a 10% ethanol blend; the association wants to see the credit carry over to fuels with a 15% blend.
The 2015 Chevy Spark EV will have an entirely new battery pack. General Motors will bring assembly of the electric Spark’s battery in-house to the Brownstown, Michigan, plant that already builds batteries for the Chevrolet Volt, Opel/Vauxhall Ampera, and Cadillac ELR. The first 1,000-plus batteries were assembled by Compact Power Inc. at a different Michigan plant, then shipped to South Korea for installation in the Spark EV.
AT&T has deployed its 8,000th compressed natural gas (CNG) vehicle; the company is more than half way there to fulfill its 10-year, $565 million commitment to add approximately 15,000 alternative fuel vehicles to its fleet by end of year 2018. The 8,000th CNG vehicle – a 2014 Chevy Express van manufactured in Wentzville, Missouri – was delivered to a work center in St. Louis, Missouri, and will be used to provide entertainment and communications services in the St. Louis metropolitan area.
IHS Automotive sees EV sales performing stronger than early hybrids: IHS Automotive has become the leading market analyst on auto industry trends through its acquisition of Polk and all of Polk’s vehicle registration data. A new report by IHS Automotive says that despite the limitations that electric vehicles (EVs) have faced in its early development and market availability, these models have still sold better than hybrids did in the early years starting in 2001 with the Toyota Prius and Honda Civic and Insight. “Most EV drivers still own their first-generation electric vehicles,” said IHS Automotive analyst Ben Scott. “Furthermore, there have been insufficient product offerings to effectively legitimize the market and show to consumers that EVs and plug-in hybrid electric vehicles (PHEVs) represent the way of the future.” The IHS Automotive study also says that early expectations and perceptions for EVs may been too lofty, which had a negative impact. It’s lead some people to think of early EVs as failures for not meeting their inflated expectations despite these models’ relative sales success in the global market.

Green Auto Market – Extended Edition offers market data and analysis on this new and growing industry

Here’s a summary of an article that was just published in Green Auto Market – Extended Edition………

Reaching more fleets and other stakeholders at clean transportation conferences
No doubt, ACT Expo 2014 was a success – with increased attendance and excellent keynote speakers and workshops. The challenge is reaching more fleets that need a lot more information, hands-on experience, and time with knowledgeable peers who can help them bring the right clean vehicles and fuels to their workplaces. Here are my thoughts on what could help events reach more stakeholders.

I invite you to take a look at another issue of the monthly subscription version of this newsletter – Green Auto Market – Extended Edition. This newsletter offers market data and analysis on this emerging global industry.

Topics/issues covered in Extended Edition include:

Monthly sales numbers for hybrids and electric vehicles.
Stock market performance on green transportation publicly traded companies.
Fuel prices on gasoline and diesel with comparisons to alternative fuels.
Infrastructure: US fueling and charging stations.
Government policies impacting the industry.
Introduction of car and truck offerings in EV, hybrid, fuel cell, natural gas, propane autogas, and other emerging alternative fuels and technologies.
Marketing campaigns that are reaching decision makers in consumer, business, and NPO segments.
Deployment of green vehicles and fueling/charging infrastructure networks.
Capital investments from public and private entities.
Developments in international marketplaces impacting clean transportation.
Smart transportation — including autonomous/driverless vehicles, telematics, carsharing, ridesharing, and connected cars.

It’s $75 per year for a subscription. Got to this page for more information, and the PayPal subscription link.

EPA award winning NAFA President Claude Masters on vehicle electrification

By Mike Sheldrick, Senior Editor, Fleet Management Weekly

Fresh from his accepting the Environmental Protection Agency’s 2014 Clean Air Excellence Award for innovative programs on behalf of Florida Power & Light Co., we caught up with Claude Masters, NAFA President and FPL’s Manager of Vehicle Acquisition and Fuel. We found that Claude’s longtime enthusiasm for the potential of electric vehicles to save energy and contribute to our energy independence remains undimmed — in fact, even brighter.

Tell us about some of the electric vehicle initiatives that are in the forefront right now at Florida Power & Light Co.

Our initiatives are also important for the industry as well: helping move along the fleet electrification process for not just our fleet, but for the country and the industry as a whole.

How electricity is produced and used is a large component of the effort we are making to achieve energy independence. I serve on an Edison Electric Institute (EEI) committee that is writing a white paper for the CEOs of investor-owned electric companies across the country that will help them understand what fleet electrification means and why it is important to them.

Vehicle electrification is further along than many think. We already have a generation infrastructure. What is not fully developed yet is the final attachment point. But that distribution network is being worked on very actively. For example, you see a lot of media related articles about what Tesla is doing. Florida Power & Light has actually helped the company with the installation of a “supercharger highway” in Florida, and we look forward to doing more of that.

If you look at the electric vehicles that we have in place today, they have played an important role in helping the whole industry get to where it needs to be. For the OEMs to meet future CAFE standards, electric or plug-in hybrid electric vehicles have to be a major part of the OEMs plans. There is just no other way for them to meet those numbers without it.

There have been substantial improvements in these vehicles. Take hybrids, for example. Some early models didn’t even have electric air conditioning systems. With some of the early offerings, you had to take it out of “economy mode” to run the air conditioner because there wasn’t enough volume in that market space to drive development of a cost effective electric air conditioner. Today that is a standard feature on hybrid vehicles. Moreover, all of the ancillary components — power steering, power brakes, etc., that were formerly driven off the engine are being electrified. Removing that “parasitic loss” saves 40 to 65 horsepower, making the engine that much more fuel-efficient.

In today’s truck market, most of the heavy over-the-road tractors still have belt-driven water pumps, belt-driven air conditioners, power steering, etc. Eventually, electrification of these ancillary components will migrate into the heavy truck market and you will see the same thing happen. Over-the-road trucks and tractors can start downsizing their engines to make them more fuel efficient. Measured over the size of that fleet, it will be a big deal.

It’s true that we need better, lower-cost batteries. Nevertheless, with today’s technology, Tesla has proved that electric cars can be successful. Tesla may not have fully solved the range anxiety issue but they have certainly diminished it greatly. It’s not uncommon in West Palm Beach or Los Angeles to go to an upscale mall or restaurant and see two or three Teslas in the parking lot at the same time. That tells you that the acceptance of those vehicles is here. Granted, not everybody can afford a Tesla today but they are certainly not any more expensive than other premium cars.

Do you think Tesla has significant proprietary technology or are there other advanced battery technologies being developed?

I don’t profess to be an expert on it but what I do know about the military and the defense industry is that every day their reliance on high performance batteries is increasing. There is always going to be a market for some type of advanced battery. They need to get lighter and they need to get more energy dense. It is like a race, much like any other business: whatever chemistry you use to build the battery that provides the highest energy density at the lowest price will be the winner.

If somebody comes up with an inexpensive, relatively high energy-density battery two or three years from now, I think they will continue to work on that and refine it, and keep playing with chemistries until we get the one that is the right one for the industry. Just like cell phones, the technology changes so fast that, four years from now, we will look at it and say, “This thing is archaic. I can’t survive with this version.”

If you are just building batteries for cars you are probably not going to stay in business very long. If you look at a lot of the larger, successful battery manufacturers they are building batteries not only for the automotive industry, but for the aerospace industry, the medical industry, the solar industry, etc. That explains Tesla’s deal with Panasonic to jointly produce batteries.

As fleets become more electrified, what will be the effect on maintenance costs and residuals?

Most people don’t initially grasp the changes in residuals but when you talk about it in detail then it starts to make more sense. The reason why it is hard to set residuals on battery/electric vehicles today is because there’s so much debate about what the true life cycle of a battery is. Most manufacturers warranty their batteries from eight-to-ten years. That has more to do with the charge cycles than it has to do with actual age of the battery.

The battery-life studies that the manufacturers do run like this: They cycle it, and every full discharge and recharge is considered a cycle. Most batteries are approximated to live between 3,000 and 4,000 cycles. If you used your car 300 days a year times ten years that is 3,000 cycles. They feel very confident that that battery will live for that ten year period and they feel comfortable giving you a warranty on that. Most people don’t keep a car ten years.

Let’s say that you bought a ten or eleven year old vehicle and the batteries fail on it at eleven years. What we don’t know is what battery costs are going to be in eleven years. There are a lot of studies that have been done on battery costs by doing forward projections. Almost no one will tell you what the exact number is because it is proprietary information, and nobody wants to give their competitors knowledge of what their costs are. But most of the people that I talk to that do research on this say that today’s prices for a lithium ion battery, which is what most people are using, is about $450.00 per kilowatt hour. The Ford projection for that in five to seven years can vary from $150.00 to $250.00 per kilowatt hour.

After a battery is not suitable for use in a vehicle, it hasn’t reached the end of its useful life. There are many applications, such as solar power, where they can be put to perfectly good use. Beyond that, the battery materials themselves can be recycled. A secondary market in batteries is already beginning to develop. When the Prius first came out over ten years ago, people said the Prius was not going to have any residual value because nobody is going to want to buy one. They don’t know what is going to happen to the batteries. Well, today there is a great secondary market for Prius. Its residuals are typically higher than a comparable vehicle in its class.

The one thing that everybody does agree on is that you do see a reduction in maintenance cost. But most people have not had electric vehicles in operation long enough to do a ten year comparison or comparative analysis, so that part has not been agreed upon. There are some Six Sigma tools that you can use to do projections. But, again, everybody agrees that your typical electric car has about one-third of the components of a conventional internal combustion engine vehicle. Typically you are talking about no transmission, no cooling system, and no exhaust system. On the heavier-truck side of it, the exhaust system profile for a medium- or heavy-duty truck is a big expense — $7,000-$10,000 worth of after-treatment devices on a truck that you didn’t have ten years ago. That is a big cost component.

Summarizing what we’ve talked about, can you give us your predictions for vehicle electrification?

Predictions are always dangerous, but certainly in 30 or 40 years, maybe sooner, we will probably be looking at vehicles that have electric motors to propel the vehicle, in conjunction batteries or with some type of power system such as a hydrogen cell reformer that generates the needed electricity. Electric motors —however they are powered, by batteries, or fuel cells, or even an onboard generator, have a significant edge in efficiency. In a conventional gasoline engine, only 30 to 40 percent of the energy actually makes it to the drive wheels; with an electric motor it is 100 percent. We still need higher-energy-density, lower-cost batteries.

In summary, vehicle electrification is a really big deal to our industry and to the country. I think it is going to play a major role in the transportation industry for the future, and I am going to do everything I can to help support that.

Big Picture: Wanxiang contemplates Fisker’s future, Clipper Creek co-founder Dave Packard goes over to ChargePoint

Fisker Automotive’s new owner is sorting through its assets to determine a new business plan. Chinese auto supplier Wanxiang, which funded Fisker out of bankruptcy a few months ago, loves the product but isn’t sure about the name. Fisker president Roger Brown described the cars as “rock stars,” but isn’t sure if the company will keep the Fisker Automotive name. The Fisker Karma plug-in hybrid will resurrect by the middle of next year.

Soon after the Karma returns, Fisker is likely to launch the Surf, a $100,000 version that looks like a station wagon; and the Atlantic, smaller sedan that will go for about $50,000. The Surf will be coming out in 2016 and the Atlantic should be released in 2017. Fisker only has 25 employees left out of its original 150.

And in other clean transportation news…….

ClipperCreek co-founder and former president Dave Packard has left his electric vehicle charger company and has been hired to run competitor ChargePoint’s utilities business development. Packard was part of bringing ClipperCreek to life in 2006 and was part of the EV industry in its early days. Packard joined the EV market in the early 1990s as VP of Sales at EPTI, a start-up, rapid battery charging company.
Earlier this month, Florida Power & Light Co. (FPL) accepted the US Environmental Agency’s Clean Air Excellence Award for 2014; that award honors innovative programs that benefit communities, the environment, and the economy. The EPA recognized FPL’s deployment of fuel-efficient vehicle technology. NAFA President and FPL Fleet Services Manager Claude Masters, CAFM, and In-Home Technologies and Electric Vehicles Director Brian Hanrahan accepted the award on FPL’s behalf during the ceremonies held in Washington, D.C.
The Federal Trade Commission (FTC) has tipped its hat toward Tesla Motors in the corporate stores vs. franchised dealer stores legislative battle. In its “Competition Matters” blog, FTC said that it supports the Tesla direct sales approach, comparing it to past technological advances in consumer-business relations.
A panel of top Canadian automotive journalists selected the Accord Hybrid from among five other category winners as the winner of its 2014 Canadian Green Car Award; they think that its the vehicle that best combines environmental benefits and mass-market appeal.
The US Dept. of Energy’s Clean Cities is proud to announce the expansion of the Plug-in Electric Vehicle Readiness Scorecard, a key tool for helping communities evaluate their PEV readiness efforts. The PEV Readiness Scorecard is a detailed, interactive online assessment tool that collects information about a community’s PEV readiness, provides feedback on its progress, and offers guidance for improvement.
Ford has launched the Ford Fleet Purchase Planner™ to help businesses identify the lowest cost and emission option when revamping their company fleet, while still meeting business goals. Developed by Ford researchers, the analytical tool factors in employees’ individual driving habits, terrain traveled, and environmental impact, to produce the optimal solution.
Classic Chevrolet in Grapevine, Texas, (the largest Chevrolet dealership in the US), has invested a million dollars in its own compressed natural gas fueling station. Chevrolet offers a heavy-duty pickup that operates on both gasoline and natural gas; and this fall, it will offer a bi-fuel version of the Impala.
Los Angeles, Paris, and Tokyo are expected by Navigant Research to be the largest markets for selling light duty electric vehicles. The research firm thinks that the US will be largest market over the next 10 years with its EV sales exceeding 514,000 in 2023.
Recargo, Inc., is celebrating the return of its research managing director, Norman Haijar, who just finished a record-braking 12,000-plus mile journey around the US while driving a Tesla Model S. Haijar was able to drive around the four corners of the US without paying anything in fuel costs. Take a look at this map.

Going to ACT Expo 2014 next week? I am!

If you’re passionate about alternative fuel vehicles, there are limitations to how many events you can attend each year. ACT Expo is one of them, and it’s taking place next week in Long Beach, Calif. I will be attending and am looking forward to meeting colleagues in the industry. It’s designed around fleets integrating clean transportation into their operations. You’ll see several US Dept. of Energy’s Clean Cities coordinators at the conference, along with association executives, and representative from OEMs, infrastructure suppliers, and government agencies. More than 3,500 people are expected to show up this year.

In the past, ACT Expo was dominated by natural gas vehicles, but that’s expanding for the first time this year through alliances with a few organizations. Several events will be co-located with ACT Expo 2014, including: propane autogas summit “Lead the Way,” which is being presented by Propane Education & Research Council; California Hydrogen Business Council will be holding its spring summit; “Women in Alternative Clean Transportation Summit” has been organized by ACT Expo management firm Gladstein, Neandross & Associates; NGV Global will hold its conference in tandem with ACT Expo; “Alternative Fuel Toolkit for Local Governments, Fleet Managers, and Employers Workshop” is being organized by South Coast Air Quality Management District. Electric Drive Transportation Association, Advanced Biofuels USA, California Fuel Cell Partnership, National Biodiesel Board, and NGV America are among the conference’s endorsing organizations.

The ride and drive is always worth setting aside time for; it might be the only chance you get to drive around a hybrid medium duty truck or an electric delivery van. A full list of alt-fuel passenger cars are also on hand to test out. More than 70 alternative fuel vehicles will be featured in this year’s ride and drive. Though ACT Expo is certainly not all about light- and medium-duty vehicles. The American Trucking Associations has worked with ACT Expo organizers. “ACT Expo is a tremendous opportunity to learn more about the economic and environmental benefits of using alternative fuels and heavy-duty trucking efficiency technologies,” said ATA President and CEO Bill Graves.

Vehicles featured during the ride and drive include: Peterbilt 384 LNG tractor, Freightliner Cascadia 113 CNG daycab tractor, Honda Civic Natural Gas, Volvo VNL 670 CNG tractor, Chevrolet Express 2500 gasoline/electric hybrid cargo van, (XL Hybrids) and Ford F-250 pickup ( provided by ROUSH CleanTech). Heavy-duty trucks will include the Freightliner Cascadia and Kenworth T680 CNG trucks.

About 200 alternative fuel and clean transportation industry leaders will be speaking on panels. This year’s keynote speakers will be Southern California Edison President Ronald Litzinger and Volvo Trucks EVP Dennis Slagle; they’ll discuss the progress and momentum in today’s burgeoning advanced vehicle technology marketplace.

Big Picture: China is becoming the hottest EV market to enter, BMW i3 getting a lot of attention – and a World Green Car award

China must be a hot market to sell electric vehicles (EVS) in, with all the recent corporate announcements. The reality has been that sales have been soft, and the Chinese government continues to offer attractive incentives to get the “new energy” market rolling. It’s been enough for Tesla Motors to decide not just to sell its Model S in China, but to also build future models there. CEO Elon Musk thinks the company will have a production line up in three-to-four years. That goes along with its near-term future investment in a charging infrastructure, including superchargers going into Beijing and Shanghai. Daimler and BYD will start selling its joint venture DENZA electric car in September; it will be the first complete vehicle that Daimler has built with BYD outside of Germany. The five-seater EV will have 190 miles of range and pre-incentive pricing of $60,000. Volkswagen has an even bigger plan – to sell hundreds of thousands of EVs in the China market before the end of this decade – and will spend up to $27 billion in the next five years to do it. The ambitious campaign will start up this year with the launch of the VW electric Up! and e-Golf models in China.

And in other clean transportation news…….

The BMW i3 electric car was given high honors at the New York International Auto Show – 2014’s World Green Car. It beat out the Audi A3 Sportback g-ton and Volkswagen XL1 and 11 other entrants. It comes at a time when BMW is finding strong demand in Europe while introducing it around the world. That demand has pushed for a higher production volume than originally expected. “From the production process onwards, the BMW i3 is a truly sustainable vehicle, created with the needs of the 21st century city in mind,” said Dr. Ian Robertson, Member of the Board of Management of BMW AG, Sales and Marketing BMW. The BMW Group also won the 2008 World Green Car award for the BMW 118d with Efficient Dynamics.
Further evidence that the BMW i3 is getting a lot of buzz: Winning the top spot in Kelley Blue Book’s Top Ten Green Cars for this year.
Major auto supplier Robert Bosch LLC is getting investigated by NHTSA after a 2013 Nissan Leaf drivers reported smoke emitting while charging the EV. NHTSA reported that a possible 50 chargers may overheat and result in fires. Bosch said that it’s reviewing the filing and will cooperate with NHTSA. The charger used, a Bosch Power Xpress 240V, had been charging for over an hour at 30 amps at a private residence when signs of overheating, including a “strong burning smell,” were noticed.
The Keystone XL pipeline startup continues to get dragged out. The Obama administration delayed a final decision on the pipeline until an ongoing court challenge to its route in Nebraska is resolved. The controversial project will remain in limbo until after the November midterm elections. It has been a “hot potato” for the Obama administration.
Navigant Research thinks that medium- and heavy-duty trucks running on natural gas will see a huge growth spurt soon – from 1.5 million on the roads this year to 3.7 million on 2022.
Natural gas is crossing borders into several different market segments – now into motor oil. Pennzoil has added its Pennzoil Platinum with its PurePlus Technology; this patented process that converts pure natural gas into the first-of-its-kind, high quality full synthetic base oil.

Shopping for a new car? Stay tuned for Green Vehicle Database

If you’re shopping for the best deals in cars or trucks, you’re probably visiting Kelley Blue Book, Edmunds.com, and Consumer Reports for the latest in reviewer and consumer ratings. You’re most likely looking for the sticker price, miles per gallon, safety ratings, incentives, engine size, interior spacing, and maybe a few other specifications. But what about alternative fuel vehicles?

As I’ve spoken with members of the Green Auto Market stakeholder group during monthly conference calls, the topic usually comes up. What’s a federal or state incentive on a specific alternative fuel vehicle? How does it compare to other hybrids, EVs, etc.? What does the cost of ownership look like?

In July 2014, LeSage Consulting will release its first-ever Green Vehicle Database with specifications, pricing, and incentive data on passenger and commercial vehicle offerings for the 2014 and 2015 model years. Vehicle types will include: Plug-in Electric Vehicles (Battery Electric Vehicles and Plug-in Hybrid/Extended Range Electric Vehicles); Hybrid Vehicles; Natural Gas Vehicles (Compressed Natural Gas Vehicles and Liquefied Natural Gas Vehicles); Propane Autogas Vehicles; Fuel Cell Electric Vehicles; Flex-Fuel Vehicles; and Fuel Efficient & Green Vehicles on clean diesel cars and the most fuel efficient gasoline engine models.

Specifications will include: Make, Model, Model Year, Style, Engine/Motor, Battery Size, Transmission, Suspension, Curb Weight (passenger), GVWR (commercial), MSRP, Conversion Cost, MPG/MPGe; and Federal Tax Incentives and State Incentives. These categories may change as I get more feedback in the weeks ahead from stakeholders experienced in making vehicle acquisitions and analyzing a total cost of ownership forecast model.

There are excellent resources out there that I’ll be accessing including the Clean Cities annual buyer’s guide. In the end, there’s always the automaker websites for specifications and agreed-upon standards such as EPA mileage ratings. The idea behind Green Vehicle Database is that alternative fuel vehicles are becoming a sizable presence in the auto industry; for vehicle buyers such as consumers, fleets, businesses, transportation companies, and government agencies – there’s a growing need for a comprehensive data source for reviewing, analyzing, and comparing the right information for making the best decision.

Volkswagen counting on TDI to break through clean diesel barriers

How does this one sound? If you’re driving the new Volkswagen Passat turbocharged direct injection (TDI) sedan, you get 43 mpg on the highway, can travel 795 miles on one fueling, and it carries you with 140 horsepower and 236 lbs/ft of torque. The 2014 Passat TDI Clean Diesel starts at $26,675 (excluding taxes and destination charges), so it’s very price competitive with midsize gasoline engine cars that don’t get as good a mpg rating or driving range per fueling.

The latest TV commercial for the Passat TDI emphasizes freedom from range anxiety – you can drive from Los Angeles to Philadelphia on just three stops for fuel – just a hop, skip, and a jump. Other midsize sedans need a lot more fuel stops, VW says – and you can receive a $1,000 fuel reward card on your purchase. It seems to be working – Volkswagen is leading sales for diesel passenger cars in the US. About 55% of diesel passenger cars sold in the US are the Volkswagen Passat and Jetta (with the Passat at 29%), and these two models are way ahead of any other diesel passenger car.

“Cruise from A to B, not from A to filling station to B,” says VW’s website promoting clean diesel TDI. The Passat and Jetta are joined by the Jetta SportWagen, Golf, Beetle, Beetle Convertible, and Touareg in the VW clean diesel TDI family. VW’s Audi division currently offers five clean diesel TDI models – the A6, A7, A8 L, Q5, and Q7. For the 2015 model year, Audi is launching a new version of the Audi A3 TDI. At the New York Auto Show, the 2016 Audi A3 TDI Sportback was unveiled – bringing a station wagon to Audi’s TDI lineup.

VW seems to be enjoying a few advantages in its clean diesel offerings……
• TDI is a registered trademark for VW and Audi – turbocharged direct injection brings more power and efficiency to sedans and taps into what many American car owners admire about German automotive engineering. VW is focusing specifically on TDI clean diesel models of its cars that also come in gasoline-engine versions – and is counting on the concept to sink into consumer minds.
• Clean diesel is considered by some people to be an alternative fuel – while it’s not as clean as electricity, natural gas, biodiesel, or propane – it is an alternative to gasoline. For car shoppers, buying a diesel engine car can be as big a switch as buying a hybrid or plug-in. It also helps that US fuel stations are only selling ultra-low sulfur diesel (ULSD) these days – adding more weight to the “clean diesel” identity.
• You can find diesel just about anywhere at US gas stations. With the extended range on a fueling of a VW Passat and with fuel stations all over the map, range anxiety is relieved. (Diesel does cost more than gasoline, but the fact that they’re getting great mpg seems to be offsetting that price differential).
• TDI Clean Diesel technology is part of VW’s Think Blue initiative, the automaker’s goal of creating and encouraging eco-conscious products and behaviors. While some people scoff at the idea of clean diesel actually being clean (especially when compared to electric vehicles), it does play into the drive for clean transportation – reducing emissions compared to gasoline engines on a mile-per-mile basis.

Big Picture: Cadillac ELR “Poolside” TV ad generates backlash; Fisker launches new website under new owner

Cadillac’s “Poolside” TV ad for its ELR extended range electric luxury car, which has been airing recently during the Winter Olympics and Oscars, has generated a lot of unintended backlash. It’s been enough for Ad Age to interview Cadillac advertising director Craig Bierley about it. He says that the TV commercial has been misconstrued – it’s not targeted to the wealthiest, but to self-made customers who’ve used “hard work and hustle” and are now making $200,000 a year more. It’s created a maelstrom of debate with right-wing commentators seeing it as affirmation of what’s made the US great; left-wing commentators see it as ugly American chest-thumping. Green Car Reports readers have felt strongly about it – a recent article generated heated debated and more than 300 comments. Uwe Ellinghaus, Cadillac’s global chief marketing officer, doesn’t have any problems with it. The TV ad is delivering what they’d intended. The early research Cadillac had done on the ad suggested “we would break through the clutter and generate a hell of a lot of buzz. Mission accomplished.” There’s always the question of what TV ads like this do to America’s (and Cadillac’s) image in important global markets.

And in other clean transportation news……

The new website for Fisker Automotive speaks to its rebirth as an automaker now owned by Wanxiang America, the US arm of the largest auto parts company in China. “Fisker Automotive is poised & ready for a new beginning,” it states on the revamped website. It looks like the extended range Fisker Karma will return as it was before.
EcoMotors, the Michigan-based OPOC engine maker backed by Bill Gates and Vinod Kholsa, has created a joint venture in China with a subsidiary of First Auto Works (FAW), which is a Chinese state-owned auto manufacturing company. The FAW subsidiary, First Auto Works Jingye Engine Company, is investing more than $200 million into the venture that has been named BEM Shanxi Co. That venture will build an advanced engine designed by EcoMotors in 2015. EcoMotors previously established a similar deal with another Chinese company, Zhongding Power, nearly a year ago. Both Chinese companies are utilizing EcoMotor’s OPOC engine, which is said to be cheaper and more compact than conventional gasoline and diesel engines, and will deliver higher fuel economy and fewer emissions.
Linear City Development said it’s now offering the nation’s first apartment building to provide free electric vehicle charging for tenants. Linear City has installed 20 Level 2 EV charge stations at The Elysian, a 96-unit conversion of Los Angeles’ historic Metropolitan Water District (MWD) headquarters. It will cover the cost of electricity for the life of every original EV-driving tenant’s lease.
BMW is getting strong initial orders for its i3 electric car, Norbert Reithofer, BMW’s CEO, said at the Geneva Motor Show. It’s already available in Europe and will soon roll out in the US and Asia. Orders might be more than the automaker has production capacity for right now, he said. The model with the range extender (which can go 160 miles versus 80 for the battery electric model) is getting more purchase activity from early buyers, he said.
Toyota Chairman Takeshi Uchiyamada, father of the original Toyota Prius, foresees hybrid models making up 20% of global auto sales; they’re at the 13% to 14% mark now. Honda may add to those numbers; the company issued a press release stating its renewed commitment to hybrid technology. That may have been damage control after news broke last month about one of its original hybrid models, the Insight, being pulled off production lines by the end of this year.

Big Picture: Fisker Karma coming back to dealerships, Tesla financial losses could be offset by “gigafactory”

Fisker Automotive’s new owner has been shedding more light on where the luxury extended range sports carmaker is headed. Pin Ni, head of Wanxiang America (the US division of Wanxiang Group, China’s largest auto parts company), told Automotive News that the Karma will restart production as early as this year at its Finland plant; the Karma will be sold again in the US and Europe. Production could happen in the US as well, once sales move forward. Ni said there’s a “potential partner out of Michigan.” There’s always the former General Motors plant in Delaware, but Fisker Automotive may stay away from it. Long term, Wanxiang may set up production in China where there’s a lot of government purchase subsidies for cars like the Fisker Karma. Ni also commented on the Fisker Atlantic; Wanxiang wants to complete development of this mid-sized plug-in hybrid. It’s positioned to be more affordable model that is likely to be produced at higher volume than the Karma.

And in other clean transportation news………

Tesla Motors sold 22,247 cars last year, pulled in $2 billion in revenue, and took a $74 million loss. This year’s financials could be similar with speeding up production, starting production of the Model X, and expanding globally. Tesla also reported a second set of financial results outside of the generally accepted accounting principles – that one looked much better with a $46 million fourth quarter profit, which was up from $16 million in the third quarter. Tesla CEO Elon Musk also coined another phrase for how Tesla will rise to its challenges – the company may develop a “gigafactory” that would produce lithium batteries for its vehicles at much higher volume and much lower cost. More cash would be needed to do so, and with the company’s stock price so high, now could be a good time to make that investment, Musk said.
Check out two reports from the US Department of Energy. “A Guide to the Lessons Learned from the Clean Cities Community Electric Vehicle Readiness Projects” pulls together coverage of 16 different projects around the country. “State of the States: Fuel Cells in America 2013” looks at energy being produced at stationary fuel cell installations, fuel cell forklift deployments, and fuel cell buses, trucks, and cars placed in service.
The Kia Soul EV is being equipped with an advanced power pack featuring lithium-ion polymer battery cells supplied by SK Innovation. The battery pack features 192 lithium-ion polymer batter cells in eight modules that can output 27 kWh.
Echo Automotive will be adding the Chevrolet Express and GMV Savana full-sized vans to its plug-in hybrid lineup. Production will start in the first quarter of 2015 and will follow conversions of Ford E-Series vans.
Paice LLC filed a lawsuit against Ford Motor Co. for alleged patent infringement on its hybrid vehicle technology. The Baltimore company has won a similar case against Toyota Motor Corp. Paice said in its lawsuit that hybrid and plug-in versions of Ford’s C-Max and Fusion, and the Lincoln MKZ, infringe on patents that address ways to control electric motors and gasoline engines for increased fuel efficiency and reduced emissions. The two companies had made a deal in 2010 where Ford licensed one of Paice’s patents. Negotiations haven’t gone well, according to Paice, hence the lawsuit filing.
Nissan CEO Carlos Ghosn delivered two Leafs to the Kingdom of Bhutan last week in honor of the king’s birthday. He pledged more EVs to help the government electrify its fleet and the nation’s taxis. Nissan wants to showcase its technology in an unexpected market.