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Retail Automotive Summary – October 2014

Government fleet vehicles are expected to play an integral role in California and seven other states requiring 15% of new vehicles sold to be zero-emission vehicles by 2025. Governors from seven states – Connecticut, Maryland, Massachusetts, New York, Rhode Island, Oregon, and Vermont – met in Sacramento on Thursday with California’s governor to say they’re following California’s rule. The governors agreed to buy more ZEVs for their fleets, and will be taking other important actions that could spur sales. A lot more charging stations will need to be there, and the agreement includes efforts to have building codes simplify installations. Cash incentives and discounted electricity rates for home charging are being considered, and developing shared standards for charging networks and common road signage are part of the agreement. Charging station installations should play a big part in all of this coming together.
The non-binding agreement will likely push sales of battery electric vehicles, plug-in hybrid electric vehicles, and hydrogen fuel cell electric vehicles in those states. Automakers have been supportive of the agreement, and say it will be easier to sell them if the initiative applies to eight states and not just California; these eight states make up 23% of US new vehicle sales. If the states meet this ambitious target, it would bring 3.3 million of these vehicles on their roads by 2025.

Tesla Model S not getting recalled by NHTSA for battery pack fire, but what about Mexico fire?
It appears that Tesla Motors is walking away from its post-crash battery fire and won’t be getting recalled by the National Highway Traffic Safety Administration. On October 1 in Kent, Wash., a lithium-ion battery in a Model S caught fire after the car collided with a large metallic object on the state highway. NHTSA has found no evidence that the fire came from a vehicle defect or from violations of US safety standards. It was day one of the 16-day federal government shutdown, and NHTSA didn’t send an investigator to the scene of the crash. The agency consulted with Tesla and is still “gathering data” on the fire, but it is not going to conduct an investigation process that could lead to recalls. Two other plug-in electric vehicles have gone through NHTSA investigations and recalls due to fires – the Chevrolet Volt and Fisker Karma.
Tesla now has another Model S fire to deal with as reports and video footage have come out on an Oct. 18 crash and fire in Merida, in the Yucatan peninsula of Mexico. According to media reports, the driver was under the influence of alcohol and escaped with no injuries. The driver was speeding into a roundabout and then collided with a tree. It’s too early to tell if the crash pierced into the battery and started the fire.

Truck makers in federal appeals court over EPA compliance
Implementing federal regulations on fuel economy and emissions for commercial trucks has become a legal battle. Truck makers are split over whether one of the major OEMs should be granted the ability to pay penalties instead of complying with the US Environmental Protection Agency (EPA) standard. Navistar International Corp. paid a penalty to allow its non-conforming engines to go to market. Daimler Trucks North America, Mack Trucks, and Volvo Group North America are challenging EPA rules following its 2001 heavy-duty engine standards for nitrogen oxides (NOx).
The EPA wanted to see 95% of NOx emissions reduced by 2010. That led to a split among truck makers on how to comply – Daimler, Mack, and Volvo have used selective catalytic reduction technology and did meet the standard; Navistar relied on a different technology and failed to comply, hence paying a penalty of $2,000 per engine. The US Court of Appeals for the District of Columbia Circuit has been hearing the case on the EPA ruling and whether Navistar’s efforts could comply for a Clean Air Act exemption that allowed for the engine to enter the market if the penalty fine was paid. Daimler and other OEMs are claiming the exemption unfairly penalized their successful efforts to comply.

And in other green car news……

1. Cost of ownership analyst company Vincentric says that hybrids can be pretty darn good for lifecycle ownership cost. In its 2013 Hybrid Analysis, 13 of the 33 hybrid vehicles on the market have lower cost-of-ownership than their gasoline-only counterparts; that’s two more hybrid models than was on the 2012 Vincentric study. However, with the increased number of hybrids on the market, the number of financially cost-effective hybrids out there dropped from 44% to 39%.
2. Tesla Motors hired Doug Field as vice pres­i­dent of vehi­cle pro­grams. Field was an Apple Inc. exec­u­tive and for­mer Ford engi­neer and will be respon­si­ble for dri­ving devel­op­ment of new vehi­cles for the lux­ury elec­tric vehi­cle car­maker. He was in charge of devel­op­ment of sev­eral Apple prod­ucts such as the lat­est Mac­Book Air, Mac­Book Pro, and iMac.
3. A bipartisan group of 13 House members asked the regulatory Commodity Futures Trading Commission to investigate the alleged manipulation of the market for ethanol credits. A letter to the commission said price volatility experienced this year in the market used by oil refiners to meet renewable fuel standard may be due to fraud and manipulation. Credit prices shot up to $1.44 in July and have gone back down to the 30-cent range.
4. EvCarCo, Inc., has secured a license for electric/hybrid vehicle technology. The company says that the technology allows for production of lightweight fully wheel chair accessible electric and hybrid buses and has the capability to be utilized for niche utility vehicles such as garbage trucks and city utility vehicles. EvCarCo says that it is an automotive retailer deploying a coast-to-coast network of eco-friendly dealerships and vehicles.
5. Things might be changing on the dating circuit. About 2,000 women in the United Kingdom were surveyed recently and the majority found owners of Toyota Prius hybrids and Nissan Leaf electric cars to “conscientious” and “intelligent,” and more likely to be safe drivers. On the other hand, a majority of respondents said that owners of expensive sports are “arrogant” and some of them find them to “self-centered.” As for safety, 38% said that male sports car owners are a “danger on the roads.”
6. Ford Motor Co. is focusing on “big data” and analytics to increase fuel economy, reduce vehicle emissions, and support other sustainability initiatives, said John Viera, global director of sustainability, at the 2013 Net Impact conference in San Jose, Calif. Ford is using a science-based model that forecasts CO2 emissions that will be generated by the fleet of vehicles on roads worldwide for the next 50 years. That’s helping Ford set aggressive fuel economy targets to help reduce carbon. Ford’s EcoBoost engines play into it, as do Ford hybrid plug-in hybrid, all-electric, flex-fuel, biodiesel, CNG and LPG vehicles. The automaker’s analytics also optimize millions of possible vehicle combinations exploring all possible transportation scenarios. This has resulted in green products such as Ford Auto Start-Stop, which reduces fuel consumption and emissions when the car is idling.

National Plug In Day, now in its third year, is getting a little bit more popular – it took place in about 95 cities, up from 65 last year. Cupertino, Calif., saw about 2,000 attendees; overall somewhere between 40,000 to 50,000 people showed up on Saturday across the US and participated in test drives, tailgate parties, brief speaker presentations by well-known advocates, and parades. It expanded outside the borders this year to Holland, Mexico, and Canada. Every single electric car that you can think of was on display, along with Brammo electric motorcycles. Long Beach, Calif., saw a well-attended event at the California State University Office of the Chancellor, where smart USA served as the lead sponsor and announced three new Level 2 EV chargers. Attendees saw 245 plug-in electric vehicles and “60 Minutes” was there to film it.

Nissan was the lead sponsor for National Plug In Day, and announced that sales of its Leaf electric car have passed the 35,000 mark in the US since being launched in December 2010. Schneider Electric was another leading sponsor, promoting its EVlink product. National Plug In Day was once again organized by Plug In America, the Electric Auto Association, and the Sierra Club. Many of the attendees at these events are EV owners who enjoy the annual car shows and chatting with their fellow colleagues about the nuts and bolts of operating their cars – similar to those attending festivals for owners of classic, vintage cars. EV owners have been thrilled to see the number of EV models coming to market and the sales figures growing at a strong percentage rate. Famous fans were present – Ed Begley, Jr., Robert F. Kenney, Jr., and climate change expert Bill McKibben, spoke at microphones along with mayors and other elected officials.

Texas study and California senate bill significant to those following fracking process
A University of Texas-Austin study released last month found that methane emissions from new wells being prepared for production, a process known as completion, captured 99% of the escaping methane—on average 97% lower than estimates released in 2011 by the US Environmental Protection Agency. It was thought to be the most comprehensive shale gas emissions study ever undertaken on methane leakage. The findings were criticized by two Cornell University scientists whose study released two years ago claimed catastrophic levels of methane were being leaked by fracking operations. Energy experts and environmentalists celebrated the finding that almost all the escaping methane could be captured by state of the art equipment.
In California Senate Bill 4 was recently passed and signed by the governor and has come under fire by environmental groups. It imposes new regulation on fracking in the state, and the bill’s author State Senator Frank Pavley (D-Agoura Hills) has said that criticism is coming from lawyers looking for the “worst case scenario.” Changes made in the final hours have been criticized by Natural Resources Defense Council and the California League of Conservation Voters. The new law requires California’s Dept. of Natural Resources to conduct an independent, peer-reviewed scientific assessment of fracking; it also requires would-be frackers to apply for a permit with the state’s Division of Oil, Gas and Geothermal Resources. There are other provisions in SB4 structured around reporting standards, and environmental groups think the amendments compromised the original bill’s constructive guidelines.

Automaker Roundup:

• Along with rolling out its dimethyl ether (DME), clean heavy duty truck, Volvo Trucks has reached zero landfill status at its New River Valley assembly plant in Dublin, Va. All of the waste generated at the facility is now being recycled, composted, or converted to electricity. Volvo Group has been at it a few years – waste reduction started in 2003 that resulted in coordinated efforts in reuse, recycling, and composting.
• Honda is looking for another supplier of lithium ion batteries for its new line of hybrid vehicles. The company thinks it can seal a deal within a year that would generate a better battery at lower costs; Honda is also interested in having access to a second supplier in case there are delivery problems with the primary supplier. Since 2009, Honda has been going with its Blue Energy Co., a joint venture with between Honda and Japanese battery maker GS Yuasa Corp. It’s gone into Honda’s Earth Dreams hybrid drivetrain. Honda is counting on hybrids like its 50 mpg Accord hybrid to see strong growth in sales.
• Jaguar Land Rover will be opening a $160 million research and development center in the UK by 2016 for its next generation of vehicle technologies for electric vehicles and hybrids, plus other powertrains. Jaguar Land Rover is now owned by Indian automaker Tata Motors; the company said about 1,000 academics and engineers will be working at its National Automotive Innovation Campus at Warwick University. It will be a collaborative research project coming from Tata Motors European Technical Center, Warwick Manufacturing Group, and the UK government’s Higher Education Funding Council.
• Fisker Automotive could get a second life on October 11 when the US Department of Energy (DOE) auctions off its loan to the automaker. Problems run deep for Fisker, and it’s yet to file for bankruptcy; but the extended range sports carmaker hasn’t built a car in more than a year. A few investors have expressed interest in buying Fisker. German investor group Fritz Nols sent a detailed plan to DOE this recently; and offered to buy the beleaguered starup carmaker for $25 million.
• Automakers and suppliers are starting to talk about developing a single standard for autonomous, self-driving cars. Experts spoke about it recently at the Michigan Automotive Summit in Detroit. Companies need to come up with a “standard which would make the entire industry rise around it much faster,” said Jeffery Owens, chief technology officer at Delphi Automotive.
• The 2014 Chevrolet Cruze may soon be available in a bi-fuel compressed natural gas (CNG) version, joining ranks with gasoline and diesel Cruzes. This one will be through an aftermarket conversion. IMPCO will offer a bi-fuel conversion for the 1.4-liter, four-cylinder turbocharged Cruze engine. It will get 200 miles on natural gas and have some of its cargo space reduced by the CNG tank. It will be the only other EPA-approved 2014 car on the market competing with the Honda Civic Natural Gas, which is a dedicated CNG-only vehicle.

More electric vehicle rentals come to market
Rental cars are always a great way to get “butts in seats” with new types of vehicles like hybrids and EVs. Hertz is now offering Tesla Model S rentals in select US markets as part of its “Dream Cars” program. For starters, it’s now at the San Francisco and Los Angeles airports. Renters can get behind the wheel of the Model S Performance that comes with an 85 kilowatt-hour lithium-ion battery pack and a 416 horsepower motor. They probably shouldn’t tell renters that it can go 0 to 60 miles per hour in 4.2 seconds. Hertz has been at its since 2010 when it started offering the Chevrolet Volt and Nissan Leaf plug-ins.
In India, Mahindra Reva Electric Vehicles is testing out EV rentals in New Dehli, Mumbai, and Bangalore. Mahindra Eva e2o electric cars will be available in these three cities. It will cost 200 rupees (about $3.20) to rent an e2o for two hours. The electric car has a driving range of around 62 miles when fully charged and has a top speed of 50 miles per hour. It will tie into about 100 free charging points being installed in these three cities.

GM and Mercedes-Benz join Nissan in race for driverless car launch
Nissan made a splash recently showing off its Autonomous Drive concept car (a driverless Leaf) that it says will come to market by 2020. Laser scanners, Around View Monitor cameras, as well as advanced artificial intelligence and actuators, have been installed in Leafs to enable them to negotiate complex real-world driving scenarios. General Motors is testing out Cadillac SRX prototypes at its Milford, Mich., proving grounds. GM is working out the kinks in its Super Cruise feature that it wants to launch by 2020. Mercedes-Benz demonstrated what it calls a “self-piloted” car at the Frankfurt auto show. Its S500 “Intelligent Drive” concept car drove autonomously along a 62-mile route in Germany last month. As for the year it should be available: 2020, which sounds like a very big year for driverless cars.

Spam attack defeated!!! Now, please leave your reader comments…..
For those of you who have written for a blog, you probably have experienced the extremely annoying scam of bot engines placing deceptive reader comments on the site. Green Auto Market was attacked by bots recently, where up to 50 fake reader comments a day were posted. However this works, there does seem to be some connection between certain trendy products and green cars (I can’t say which product it is, since that might place this blog once again on another bot’s list). A lot of the comments were in Japanese – WordPress does offer a translator software function if needed. The other common thread in the comments was someone hawking their services to increase SEO on Green Auto Market – thanks but no thanks. They might approach that by throwing out a series of compliments on how awesome Green Auto Market and its writer/editor are. Well, shucks…. but, thanks but no thanks. We used a plugin product called Simple Comments to alleviate the spam attack – so far, so good. That being said, this is a very good time for you to leave a comment – see the “Leave a reply” link at the top of each post. I will review it, post it, and occasionally write a reply to the comment. Another suggestion is to forward the newsletter email or a link to the blog website, encouraging peers to post their name and email address to join the subscription list. You’ll find that box in the upper right corner of the blog. Some readers are sharing articles from this blog in their newsletters, websites, and blogs. Together, we can stop spammers from dominating the internet!

Tesla-Mania! Tesla setting up stores in Germany
I might have been wrong: Maybe it was Tesla going after BMW and not vice versa. Tesla is setting up sales centers in Germany and will be able take on BMW directly. BMW has rolled out its i3 luxury electric car and showed off its i8 plug-in hybrid supercars at the Frankfurt Motor Show. Tesla is focusing on the German market to sell its Model S luxury electric car by setting up six stores. Four are in place – three sales centers are in Frankfurt, Dusseldorf, Hamburg, and Munich; two more stores are being set up Berlin and Stuttgart. “The European home turf belongs to the likes of Daimler, BMW and Audi,” said Bryan Batista, Tesla’s European sales director. “We’re confident that we have a product that stacks up very well.”

More bodacious claims from Mazda on its Skyactiv system
The Mazda CX5 with its Skyactiv technology is being compared to Thomas Edison and all his innovative inventions. Okay, so we have the surfing legend Laird Hamilton and Thomas Edison comparisons for Skyactiv – very impressive. How about Henry Ford? Or Albert Einstein?

Fuel cell vehicles get some good news in California
California Assembly Bill 8, which will fund at least 100 hydrogen stations in California, passed through the state legislature last week and is on its way to Gov. Jerry Brown’s desk; the governor indicated he’ll signed it during a news conference this week. AB 8 will provide funding for at least 100 publicly available hydrogen stations, with a commitment of $20 million a year (or 20% of available funds) until January 1, 2024. UK-based ITM Power, a fuel cell energy storage and clean fuel products company, just took its first US order for $1.4 million to support hydrogen refueling stations. ITM Power turns renewable wind and solar power into hydrogen gas using electrolyser technology, which creates on-demand clean fuel for cars, cooking, heating and welding. The company will supply an electrolyser-based unit for Hyundai’s hydrogen energy and fueling station in Chino, Calif.

Toyota gets into carsharing game in the US
Toyota Motor Sales USA is getting into the carsharing business through an alliance with City CarShare, which is considered to be the largest nonprofit carsharing organization in North America. The relationship has started with the Dash carsharing program in Pleasanton, Calif., for an employer’s needs and for their carpool, vanpool, and public transportation commuters. It’s a three-year pilot program that will delivery Scion iQ electric vehicles that were designed specifically for the carsharing market. Navigant Research just issued a report projecting that carsharing services will have more than 12 million members worldwide by 2020, up from the current level of 2.3 million.

Boulder Electric demonstrates V2G at three sites
Electric truck manufacturer Boulder Electric has successfully demonstrated its Vehicle-to-Grid (V2G) all electric trucks in three separate locations including Michigan, Colorado and California.  With 60 kilowatts of power going in and coming out of the vehicles, Boulder EV reached a new milestone and became the first EV truck manufacturer in the world to successfully demonstrate V2G bi-directional charging at its first testing site at Royal Oak, Mich., back in June. The second project took place at the US Army Corps of Engineers and SPIDERS project in Carson, Col. Most recently, at Boulder’s plant in Los Angeles, the California Energy Commission award the company a $3 million grant to support opening its second plant.

National fuel economy number goes up to 24.9 mpg
Corporate average fuel economy is inching upwards each month. The University of Michigan Transportation Institute says that the August number for light-duty cars and trucks sold in the US reached 24.9 mpg, up 0.1 mpg from the previous month. It’s gone up 4.8 mpg since the university began tracking the numbers in October 2007.

ClipperCreek brings smallest Level 2 EV charging station to market
Veteran EV charging station maker ClipperCreek has announced the availability of what it claims to be the smallest cord and plug connected, 20Amp, Level 2 EV charging station on the market.  Based on the company’s LCS-25, this new product features a plug in connection to make installation inexpensive and fast.  With a standard 25 foot charge cable, there is no need to juggle cars to plug in. Customers with existing outlets can purchase the LCS-25P and install it by attaching it to the wall and plugging the LCS-25P into a 240V outlet.  It’s for sale at a retail price tag of $549, with a 3 year warranty.

DOE may be settling for small chunk of Fisker’s debt being paid for
Fisker Automotive may have a buyer take care of its large debt with the US Dept. of Energy. Fritz Nols AG, a German investment company, appears to have placed its $25 million offer to the DOE, and its sounds like it could be moving forward. The parties signed a letter of intent for its restructuring plan. It might be a partial solution for the DOE to resolve some of the $193 million that the agency made available as a loan and which the extended range automaker has yet to pay back. Fritz Nols AG may not close the deal, though; other bids are being considered by the feds including one from Chinese auto parts maker Wanxiang Group (and owner of previously-named A123 Systems); and a Hong Kong-based investment group. It sounds like all of the bids are lower than the US government had been hoping for; yet, they may settle for less and walk away from Fisker.

Dark days ahead for Ecotality
Ecotality has a swirl of class-action lawsuits being filed against the electric vehicle battery charger company. Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Ecotality, Inc. in US District Court, Northern District of California. It’s been filed on behalf of a class consisting of all persons or entities who gained securities of Ecotality between April 16, 2012 and August 9, 2013. This class action seeks to recover damages as a result of alleged violations of the federal securities laws.

August witnessed a hot sales market for plug-ins and hybrids
Plug-in electric vehicle sales nearly doubled year-ago figures to 9,431 units in August. The Chevrolet Volt reached its highest ever monthly sales figure – 3,351 units sold in August reaching just under 15,000 for this year. June 2013 had seen its best June ever at 2,698 units sold and July had dropped to 1,788. So August was a win-win for GM and incentives have been helping. The Nissan Leaf sold 2,420 units in August and made it to a little over 14,100 for the year. Previously, March had been the best sales month of the year for the Leaf, at 2,236 units sold. Atlanta has been a new and strong market for the Leaf. Tesla brought in sales of 1,716 Model S units, for a total of 13,330 for this year. Toyota had an even better month, setting a monthly record of 1,791 of its Prius Plug-in Hybrids. The RAV4 EV did well, too, reaching a record 231 units sold. Overall, the Prius saw a strong month with 27,358 units sold in all four variants – 28% over last year.

Ford did very well, almost quadrupling its green car numbers from last year at 8,292 vehicles sold. The Fusion Hybrid reached 3,694 units sold, C-Max Hybrid reached 2,411, the Fusion Energi hit 600 sold, and C-Max Energi made it to 621 sold. Revising the mileage rating on the C-Max hybrid on August 15 didn’t seem to hurt sales. Ford announced the EPA combined fuel economy rating was dropping from 47 to 43 mpg. The automaker thinks it still has a very strong selling point against its chief competitor, the Toyota Prius V, which has a combined mileage rating of 42 mpg.

DOE investing $45M in advanced vehicle technology projects
Ford, General Motors, Chrysler, General Electric and Caterpillar are among the 38 companies, universities and national labs to receive more than $45 million in US Department of Energy funding for projects that accelerate R&D of vehicle technologies to improve fuel efficiency, lower transportation costs, and protect the environment. While similar to the Advanced Vehicle Technology Manufacturing program, this new DOE project fund is a separate project tied into President Obama’s Climate Action Plan that was launched in June of this year. The US Army will be contributing an additional $3 million to support projects based on lightweighting and propulsion materials, batteries, fuels, lubricants.

Coalition bringing electric drive experience to tourists visiting Orlando
Drive Electric Orlando (DEO) is bringing the electric vehicle driving experience to a lot of tourists visiting the city famous for its massive theme parks. DEO is bringing together car rental, charging stations, hotels, theme parks, and other stakeholders into the coalition. Enterprise Rent-A-Car is playing the leading role and working with Nissan on bringing Leafs to customers. Other participants include Disney, Sea World, Universal Studios, Duke Energy, Visit Florida, Peabody Hotel, and the University of Central Florida; Electrification Coalition is also part of the network. Renters can get a Leaf for as low as $30 a day that includes GPS navigation and overnight charging at hotels. Customers will be able to have free use of the Clear security lanes when leaving the city’s airport.

Siemens leaving EV charging business
Siemens AG, a German multinational engineering and electronics conglomerate, is leaving the electric vehicle charging market. Demand and market development has been weaker than expected in Germany and in the US. It will continue offering wall boxes for recharging electric vehicles at home, and will continue research on wireless charging. Siemens has played a very visible role at conferences such as Plug-in 2012.

Republicans in Congress likely to oppose DOE advanced vehicle loans
The US Dept. of Transportation’s Advanced Technology Vehicle Manufacturing loan program is facing Republican opposition in Congress. The DOE recently announced an active outreach campaign for the loan program to deliver more than $15 billion to potential applicants. U.S. Rep. Darrell Issa, R-Calif., the head of the House oversight committee, previously said the auto loan program was a “perfect example of government waste.”

Tesla-Mania!:  Combat with dealers, Musk family road trip
 After mixed results in state-level battles with dealers over its non-franchised dealer business model, Tesla Motors is ruminating over taking it to Washington. Tesla had fought the fight most intensely in Texas to overturn state franchise laws – and lost to dealers. Texas is considered to have the toughest state laws benefiting dealers over automakers. Dealers are watching it very closely with fear that Tesla gaining victory in Washington or any of the states would open the door to automakers from developing countries coming to the US to carve out market share. There’s also fear of what major OEMs might gain if Tesla gets away with it and they decide to switch over to company stores. They do tend to find Tesla CEO Elon Musk extremely irritating, but recognize he can pull a lot of sway.

In less dramatic news, Musk will be taking off on a cross-country road trip in a Model S with his five kids in the car. Musk will have to figure out the best way to drive 3,200 miles and make charging time most efficient at Tesla’s Supercharger stations. He thinks it will take up to 90 minutes a day to get the needed charging done during the five-day trip.

Well it was certainly a busy week for alternative technology vehicles – and that’s saying a lot given that it’s unofficially Vacation Time here in the USA. So here’s a list of the most interesting stories of the past week….

• The Ports of Long Beach and Los Angeles were proud to announce some big numbers…. Long Beach has cut diesel particulates by 81% and sulfur oxides 88% since 2005. The port has also reduced nitrogen oxides by 54% and other greenhouse gases by 24% since 2005. Reasons mentioned in the report for emissions reductions include bigger ships carrying cargo more efficiently, newer ships with cleaner engines, implementation of the Clean Trucks Program, increasing use of shore power, and a new low-sulfur fuel rule for ships, according to its Emissions Inventory report.
• Port of Los Angeles just put out a similar report – the 2012 Inventory of Air Emissions. LA saw a 79% drop in diesel particulate matter since 2005. Moving cargo volume fluctuations from the equation showed the number was closer to 81% in reductions. The LA port saw a huge drop in sulfur oxides emissions (SOx)  throughout the South Coast Air Basin. In this report, 6% of all SOx came from the Port of Los Angeles – way down from 25% in 2005. Nitrogen oxides also saw a big drop during the past seven years. The port has implemented several clean-air measures, requirements, and incentives to reach these targets. All transportation modes are included – ships, trucks, trains, cargo-handling equipment, and small harbor aircraft.

• NHTSA is tweaked that Tesla claims it received the highest crash-test safety record ever for its Model S. It got great ratings – five stars in each category, but it didn’t really get a 5.4 overall score like it claims, NHTSA said. Tesla used the mathematical formula that NHTSA cites to come up with its own 5.4 rating. NHTSA doesn’t even rate vehicles beyond five stars and doesn’t rank them against other vehicles, the agency said. (Editor’s Note: Wrong or right, Tesla did gain a lot of publicity when it issued its press release on gaining the best five-star safety record ever. I sure fell for it!)
• In other Tesla news, the EV maker’s plans to enter the China market have stalled out for now. There’s a dispute over a trademark that Tesla needs to enter the market and set up a flagship showroom in Beijing. A businessman in China is claiming the trademark rights to the name.
• And….. Tesla hit $173 and then closed at $164.23 in stock price yesterday – that’s market value in excess of $20 billion for part of the day.
• Tesla competitor BMW is rolling out another plug-in concept next month at the Frankfurt Auto Show. The BMW Concept5 X5 eDrive plug-in hybrid is based on the BMW X5 SAV. It will be powered by a four-cylinder TwinPower turbocharged gasoline engine in tandem with a 70 kilowatt electric motor and a lithium-ion battery pack. The X5 eDrive will join the BMW i3 and i8 plug-ins in Frankfurt.
• California Energy Commission is seeking proposals for $4.7 million available in awards – three awards up to a little over $1.5 million each to be distributed among three regions – Northern, Central, and Southern California. The funds will support new or existing centers for alternative fuels and advanced vehicle technology. Winners of the awards will support a neutral site for companies to collaborate on technology demonstrations, with fleet managers expected to play a big role. In other government funding news, the new US Secretary of Energy, Ernest Moniz, said the feds may revive the $25 billion Advanced Technology Vehicle Manufacturing Program. That program has been on hold since March 2011 after two of the five companies that had received loans halted production. The DOE is looking at revising the loan solicitation process.
• Detroit Electric is sputtering in its manufacturing plans as the company that revived the historic EV brand has to yet to make an agreement for a plant in Wayne County, Mich. There was going to be a facility in Plymouth to make its electric sports car, but that’s failed to come together.
• Mercedes-Benz ordered 123 more hydrogen-based GenDrive fuel cell units to run forklifts at its logistics center under construction in Tuscaloosa, Ala. Last month, Mercedes bought 72 of these fuel cell lifts for its Tuscaloosa vehicle assembly plant.
• While some scoff at the term “clean diesel,” others would disagree. RL Polk & Co. says the US sales figures have gone up 25% between 2010 and 2012 and the number of these diesel-powered light-duty vehicle models will be going up from 27 models now to more than 55 in the next two years. Why is the momentum building for diesel passenger vehicles? Three main reasons:  lots of appealing products to choose from; diesel engines are 20% to 40% more fuel efficient than comparable gasoline engines; who cares of diesel is pricier than gasoline? Automakers like them for the 54.5 mpg by 2025 fuel standard mandate and consumers have more confidence in them now. The Volkswagen Golf TDI and Jetta TDI impressed a lot of people as high performance and fuel efficient, and led the way in diesel adoption.
• Google poised to profit from self-driving cars: Mega-automotive supplier Continental AG is now in alliance with Google and IBM to build autonomous driving systems for cars. Continental has a similar deal with Cisco Systems for automated/driverless cars and data transfer between automobiles. Google has been in this game since 2010, providing test results from California highways and played an important role in the state of Nevada doing its homework and becoming the first state to adopt a self-driving car testing program.
• EVCARCO Inc.., an up-and-coming dealer network offering green vehicles, has launched its EV Leasing Program. The company wants to support increase in demand in the US for new and pre-owned electric and hybrid vehicles available now in the US. CEO Walter Speck said the EVCARCO has submitted licensing to solicit consumers to enter into a lease of new or pre-owned models, which include the Chevy Colt, Nissan Leaf, Teslas, BMWs, Toyotas, and other alternative fuel vehicles.

How accurate and truthful are automakers and EPA being about mileage ratings?

Fallout from the fuel economy ratings on the Ford C-Max hybrid has caused the US Environmental Protection Agency to rethink how it calculates mileage. The EPA window sticker mileage rating labels go back to the 1970s, and disparities have widened as more hybrid and electric vehicle models have come to market. Consumer Reports and analysts are taking automakers to task for fudging on fuel economy numbers as OEMs push for fuel economy improvements to comply with strict federal standards.

EPA says it will work with consumer and environmental groups and automakers to propose revised fuel-economy testing regulations. It’s understood that the ratings need to be reliable. Ford has changed the combined rating on its C-Max from 47 mpg to 43. Ford is also offering C-Max owners reimbursement cash payments for additional fuel consumption. Consumer Reports is still staying on top of the controversy and just released a chart showing its own mileage testing data versus what the EPA lists for 14 vehicles. EPA test results showed them that the agency used a mathematical derivation formula in lieu of an actual test. EPA doesn’t publish the formula that it uses, but it is using the formula for EPA mileage ratings on more than 80% of all cars.

Here’s some of the numbers Consumer Reports found testing out 14 models…

• Ford and Lincoln had the widest gaps in their EPA ratings versus Consumer Reports. Along with the controversial gap between the C-Max hybrid and Fusion Hybrid ratings, two other that made the list were the Fusion Titanium (2.0T) that 26 mpg overall EPA rating versus 22 from Consumer Reports. The Lincoln MKZ 2.0 with EcoBoost had an EPA rating of 26 and a CR rating of 23.
• The Chevrolet Traverse had an EPA rating of 19 mpg and a CR rating of 16 mpg.
• Volkswagen Golf TDI got better CR ratings than EPA – 38 vs. 34, and Volkswagen Jetta SportWagen TDI had 36 vs. 34.
• The Nissan Frontier, Nissan Xterra, Lexus ES 350, Toyota Avalon Limited (V6), Toyota Land Cruiser, and Toyota Sequoia were very close to being exactly the same – sometimes just one mpg off.
• It looks like the EPA and automakers have a ways to go – especially Ford – in gaining back confidence from car shoppers on accurate mileage ratings.

 

Automakers given kudos for sustainability initiatives at US plants
Ford Motor Co. and General Motors have been recognized for making manufacturing plants more energy efficient, reducing landfill and water consumption, and powering plants with renewables. Competitors have been getting the nod lately, as well, for changes being implemented at US plants. Honda is working on a test track facility using 70,000 solar panels and selling the excess renewable energy. Subaru has installed a zero-landfill, 100% recycling policy at its Lafayette, Ind., plant. In Chattanooga, Tenn., Volkswagen opened a 9.5 MW solar park with 33,600 solar modules capable of producing 13.1 gigawatt hours per year of electricity. Toyota prides itself for having the most clean energy patents in one year – with 207 being filed in 2012. Honda is taking the lead this year on clean energy patents and registered 87 patents in 2012.

EPA ranks five greenest, most fuel efficient cars of the year
Green Car Reports made a list of the five greenest cars on the market, based on fuel economy measurements issued by the US Environmental Protection Agency. As you’ve just read about previously in this newsletter, the EPA’s ratings have been questionable lately. However, it is good to get a look at how the miles per gallon equivalent rating is being reported and what are now to be considered the top cars for fuel efficient vehicles. (You’ll also notice that the Toyota Prius is no longer in the top five, and it topped this list for years.)

(1) 2013 Honda Fit EV: 118 MPGe
(2) 2013 Fiat 500e: 116 MPGe
(3 and 4 tied) 2013 Nissan Leaf: 115 MPGe, 2014 Honda Accord Plug-In Hybrid: 115 MPGe
(5) 2012 Mitsubishi i-MiEV: 112 MPGe

Renewable natural gas adopted by Washington bus fleet
Renewable natural gas just took a step forward. Pierce County, Washington, (covering Tacoma and Olympia) has been converting its transit bus fleet over from compressed natural gas to renewable natural gas. Pierce Transit gained EPA approval to fuel its bus fleet with RNG – 143 of its 155 buses are now being powered by RNG made from the biogases from the Cedar Hills Landfill in nearby King County. It’s the first municipal transit fleet in the country to utilize this alternative fuel, and probably one of the first large organizations to bring in RNG.

Ecotality hitting the wall and may go bankrupt
Another company in the EV supply chain may be heading for bankruptcy – Ecotality. The DOE has put Ecotality’s request for more federal funding on hold after the charging station supplier company stated that it’s having trouble getting financing and may have to declare bankruptcy. Ecotality outlined its problems in its latest SEC 8-K filing. Ecotality has been depending on the DOE funds — $100 million had come through, nearly all of which has gone into the federal EV Project.

Hyperloop:  Telsa CEO Elon Musk stirred up a lot of curiosity over the past year for the unveiling of his Hyperloop high-speed rail concept yesterday. It boils down to flying through a steel pipeline; take a look at this 57-page report. It’s a concept that won’t necessarily be carried out by any of Musk’s companies such as SpaceX, but it is intriguing. Musk says he is releasing the designs as an open source project in hopes of optimizing the design and bringing down costs.

The high-speed transit solution could go from Los Angeles to San Francisco in 30 minutes and would cost $6 billion – compared to the $68 billion budgeted for the state’s high-speed rail project. It would travel along the state’s I-5 and I-580 highways and reach top speeds of 760 miles per hour. The capsules, or pods, could carry up to 28 people and each person could bring two bags. The trip would cost them about $20 one way. Musk recommends that it be built as a low friction suspension system traveling with a cushion of air from the pod using the same air bearings principle used in an air hockey table, instead of wheels. His team thinks that a battery used to accelerate the pod would be drawn not from the battery pack (that battery would circulate air in the pod); instead an external linear electric motor with a round induction motor, similar to the one used in the Tesla Model S, would deliver that power. Perhaps Tesla would provide an electric motor? There is probably some potential business opportunity for Musk and his companies — similar to Google funding and delivering driverless Toyota Priuses to states testing out autonomous cars. There’s got to be some technology applications that Google and Tesla can provide.

Neapolitan Express is leading a campaign to bring natural gas vehicles to food delivery vehicles in fleets across the country: Everything is powered on natural gas, instead of propane for food heating and gasoline or diesel for the truck’s engine and the motor powering air conditioning and other features. The food truck produces 70% less carbon emissions and reduces fuel costs by 60% over gasoline and diesel-fueled versions. Company owner Max Crespo unveiled the Neapolitan Express in February alongside New York Mayor Michael Bloomberg and Clean Energy Fuels Corp. founder T. Boone Pickens. In partnership with Clean Energy Fuels, Crespo is now rolling out the concept across the country, according to ClimateWire (subscription required).

Cellulosic ethanol reaches commercial production: The US Environmental Protection Agency is adjusting the Renewable Fuels Standard (RFS) in order to reflect market realities. The rule previously called for 14 million gallons of cellulosic ethanol, but the final rule reduced the number to six million gallons of cellulosic ethanol this year. While coverage has stated that the EPA backed down, the cellulosic ethanol is actually becoming a tangible biofuel industry with commercial production starting up. KiOR started commercial production in March using wood chips to produce cellulosic fuels, and Ineos just announced that their Indian River BioEnergy plant in Florida has begun operations to make biofuels from plant waste. Both of these are now operating at full commercial scale.

Attention Fleet Managers — Sell green vehicles as part of GHG emissions reduction strategy:  Major aerospace company Northrup Grumman just released impressive numbers on reaching its greenhouse gas emissions reduction targets – the only problem is that it had nothing to do with transportation. The company reduced GHG nearly 27% in three years – two years ahead of plan. How was this accomplished? An environmental sustainability program that covers facilities, engineering, and manufacturing efficiency projects, a green information technology strategy, real estate optimization, renewable energy, and ecosystem conservation. Not a word was said about its fleet vehicles. Fleet managers have been thinking about installing electric vehicle charging stations on campus and looking at green vehicles like its fleet management counterparts, but so far that hasn’t happened.

Have you seen Mazda’s TV commercial with monster waves being surfed by legend and tow-in surfing pioneer Laird Hamilton? Mazda makes the bodacious claim that its Mazda3 with SkyActiv technology is on the same level. The ad pitches the 40 highway mpg EPA estimate, that it was named a top safety pick by Insurance Institute for Highway Safety, and that it starts at $16,700. “This is the Mazda way, and this is the Mazda3. What do you drive?”

Mazda has yet to offer any plug-in, hybrid, or alternative fuel vehicles – so its SkyActiv technology is its best bet for meeting federal fuel economy and emissions standards – and for upping its green credentials. Mazda says that the smartness of SkyActiv boils down to highly fuel efficient engines with great compression ratio; ideal transmissions; reduced vehicle weight; safety performance; and a clean diesel version. While Mazda’s sales were slow in the first third of 2013, Mazda credits SkyActiv for starting to pick up the numbers again for its all-new 2014 Mazda6 and versions of the Mazda3 and CX-5 utility vehicle. It’s too early to tell if SkyActiv is making much of a difference; those models were already doing well in their vehicle categories, but sales have picked up for the automaker and SkyActiv is the main focus of its marketing campaign.

Ford offering CNG and propane powered F-150s
Compressed natural gas (CNG) and liquefied petroleum gas (LPG) nearly have nothing to do with retail light duty passenger vehicles, with the exception of the Honda Civic Natural Gas Vehicle (which has only been sold in very small numbers to retail buyers so far). Now, when it comes to fleets, natural gas and propane autogas-powered trucks are a very big deal. Ford Motor Co. is adding to alternative fuel vehicle offerings with CNG and LPG options for the 2014 F-150 pickup truck. Ford will become the first automaker this fall to offer both a CNG and propane autogas version of a half-ton pickup. Ford expects to sell about 15,000 CNG-LPG vehicles this year. Chrysler and General Motors are offering bi-fuel trucks that can be powered by either CNG or gasoline. Fleets like the alternative fuel trucks for the cost per mile – about a third of gasoline and diesel and reduced emissions compared to conventional trucks. The challenge has been seeing enough product offerings on the market and a refueling infrastructure outside the fleet’s home base. Ford’s announcement is good news for advocates of the alternative fuel and technology.

On the subject of CNGs, Nissan is bringing a CNG pickup truck to the Thailand market. There are expectations that alternative fuel vehicles will be seeing an increase in Asian markets, especially through government-funded projects aimed at reducing air pollutions and vulnerability to fuel price volatility. The Nissan Navara CNG is the company’s first bi-fuel CNG-gasoline engine. It’s powered by an engine that generates 154 horsepower at 5,200 rpm. The new Navara CNG will reduce running costs by two thirds compared to a conventional gasoline engine, Nissan said.

Chevy Volt ramping up the price war
Chevrolet has cut the Volt’s price by $5,000 for the 2014 model year — down to $34,995. The 2013 model had already been cut by $4,000. Sales had been down slightly last month; while sales are up more than 9% for 2013, Volt sales are still behind the Nissan Leaf and Tesla Model S in the battle for the top spot in the plug-in market. So, the price war continues….

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Via Motors and PG&E roll out emergency power storage in plug-in hybrid trucks
Hurricane Sandy raised hackles for locals living in places like New Jersey last year. Power outages wreaked havoc for residents and employers in ways that tend to get forgotten about until the electricity disappears. Plug-in hybrid truck maker Via Motors has been working on a “power export” offering with Pacific Gas & Electric. The Via pickups can be hooked up to supply electricity for urgent situations, such as a home or medical facility that needs electricity to respond to an emergency. The two companies are working on a Via Motors VTRUX, a range-extended truck with a 300 kilowatt traction motor, 150 kW generator, and 4.3L, V6 engine. It’s able to power 120V and 240V power outlets, which can power tools and export electricity as needed.

Apple competing for share in the connected car space
Connected cars and telematics are a competitive battleground for third parties like Microsoft and Pandora Media, and now Apple is competing for space. By the end of this year, car shoppers will be seeing several vehicles with Apple’s iPhone functions that use Siri voice controls for navigation, texting, emails, and music. It takes a lot of testing and hard work to make these technologies work the right way in cars – and suppliers typically fail to deliver it, according to the Car Lab consulting firm. Automakers know many consumers already use their iPhones as a substitute for built-in navigation systems. The trick for automakers is figuring out a good way to pair the iPhone to their cars in a way that avoids driver distraction and increases user satisfaction. The Chevrolet Spark and Sonic small cars offer Siri, but it hasn’t done well so far in reviews. So Apple has a big challenge ahead, and it will get a lot of attention from connected car analysts.

• Welcome to the weekly edition of Green Auto Market. Some of you were previously reading Green Automotive Digest, and others have been reading the monthly Green Auto Market for the past year and a half. This weekly blog newsletter is produced by Jon LeSage, editor and publisher, along with Automotive Information Network, Inc. (parent of Automotive Digest, Dealer Digest Daily, Fleet Management Weekly, and Used Car Market Reports). This newsletter will be published on Tuesday mornings; it will continue offering the same analysis, coverage, and style – now in a more timely weekly format.

As for this week…..

• Chevrolet is marketing torque power in its Spark EV, which has been launched in California and Oregon. A new online video declares that the car’s 400 pounds-feet of torque are “more than a Ferrari 458 Italia.” The 30-second spot shows the minicar zooming through a gleaming white test facility at the speed of light – it goes 0 to 60 mph in 7.6 seconds, faster than the Fiat 500e, Ford Focus Electric and Nissan Leaf, GM says.
• Mack Trucks is following parent company Volvo Trucks and will begin production of dimethyl ether-powered Pinnacle Axle Back models with the 13-liter MP8 engine in 2015. Volvo introduced its DME option with fuel supplier Oberon Fuels in Sacramento last month. DME engines emit no soot — diesel particulate filter. When produced from biomass or biogas, DME can provide up to a 95% percent carbon dioxide reduction compared with diesel.
• More than 3,000 attendees made it to ACT Expo 2013 last month in Washington, DC, making it the largest and most significant US annual conference on alternative fuels and vehicles. It took place at the Walter E. Washington Convention Center in partnership with the U.S. Department of Energy as a platform to put key players together in green ground transportation. “We’d like to thank our sponsors, exhibitors, speakers and attendees for a terrific event in Washington,” said Erik Neandross, CEO at organizer Gladstein, Neandross and Association. ACT Expo 2014 will be held with NGV Global 2014, the world natural gas vehicles meeting. These will take place May 5-9, 2014 in Long Beach, Calif.
• Hertz has not officially entered the car sharing business – unlike Avis, which bought Zipcar, the largest car sharing company, at the beginning of 2013. Yet Hertz is in the car sharing business through its 24/7 service, which offers rentals at any time of day or night for any length of time. Hertz has about 35,000 vehicles in the US equipped with technology enabling the car sharing service. By 2016, the car rental giant expects to have about 500,000 vehicles ready worldwide for this 24/7 (also called Hertz On Demand) service. That would be about 10 times the size of the current car sharing industry, Hertz said.
• General Motors plans to double the amount of models that achieve 40 mpg highway or better by 2017. The Chevrolet Volt, Sonic, Cruze Eco Cruze Clean Turbo Diesel already meet that requirement, and the 2014 Cadillac ELR and Spark EV will do even better when released. GM’s long-term approach to sustainability enables us to increase efficiency and re-imagine personal mobility to best meet customer needs and lifestyles, the company said.
• Ford is attempting to make things right for its 2013 model hybrid vehicles that have been coming up short on its fuel economy performance compared to the official ratings. The company is offering free software upgrades intended to improve fuel economy to owners of 2013 Ford C-Max and Fusion and Lincoln MKZ. Ford drew a lot of criticism following 2012 tests by Consumer Reports, which reported that the Fusion hybrid had 17% less and the C-Max had 21% less than Ford’s original promise of 47 miles per gallon. 
• The 2014 BMW i3 has an MSRP of $41,350, before BMW’s $925 destination fee–for a starting price of $42,275  before the federal tax credit or local incentives.