Big Picture: OEMs getting into driverless cars; Don’t even think about spamming this blog, but please leave some opinionated comments; Tesla competing with BMW in its homeland

GM and Mercedes-Benz join Nissan in race for driverless car launch
Nissan autonomous driveNissan 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.

Big Picture: August a hot sales month for green cars, $45M more in DOE funding, EV rentals in vacationland, the latest from Tesla-Mania!

Volt dealer salesAugust 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.

Big Picture: America’s largest port sees transportation emissions drop dramatically…. NHTSA irked by Tesla’s best-ever safety ratings claim

vacation timeWell 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.

Big Picture: EPA taking on controversial mileage ratings, Green manufacturing plants given thumbs up

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

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.

Big Picture: Will Elon Musk gain business from Hyperloop?

Hyperloop AlphaHyperloop:  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.

Big Picture: Mazda’s SkyActiv campaign, F-150 in CNG and propane, Chevy Volt feeds the price war

Mazda Laird Hamilton adHave 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.

The Big Picture

  • 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.

How are plug-in electric vehicles comparing to ICEs for ownership cost?

workplace chargingAs automakers reduce prices on their plug-in electric vehicles, how does the cost of ownership compare to fuel-efficient internal combustion engine vehicles?

  • Ford Motor Co. just joined the price war reducing the base price of its Focus EV from $39,200 to $35,200. With the federal tax incentive, the price goes down to $27,700 and some states are offering their own incentives (i.e., California is taking another $2,500 off the price).
  • Honda cut monthly payments of a 36-month lease on its Fit EV from $389 to $259.
  • Leasing made up about 93% of electric vehicle sales deliveries in Q4 2012, according to Experian Automotive.
  • Maintenance costs are lower on EVs compared to ICEs. You don’t take them in for oil changes and basic service as you do with a gasoline engine car.
  • As for the cost of the energy needed to keep the car moving, the US Dept. of Energy has started up a fueling indicator called eGallon. On average, fueling your car with gasoline costs about three times more than powering it with electricity. On a given day, the average US price of gasoline was $3.65 per gallon and the cost per mile equivalent for electricity was $1.14 for an electric eGallon.

Long term lifecycle costs for EVs are still unknown – unless you’ve been driving one for several years, such as the limited number sold in the second half of the 1990s. As for the new generation of lithium-ion battery models, they’ve only been on roads since late 2010. The cost of the battery pack replacement is a big issue for analysts. However, with 93% of them being leased for now, battery life is yet to be much of a real concern – but the worry is always there. The Nissan Leaf has gone through this struggle in the past year with Leaf drivers in hot areas like Arizona being angry and vocal about the performance of the Leaf’s battery pack.

Phil Gott, Senior Director at IHS, said, “If you are going to compare the operating costs of an electric vehicle and take into account the battery costs, you need to take into account all the costs of maintenance and engine replacement.”

How many consumers will be doing that math while buying a car? “Nobody and that’s the reality,” Gott said.

EV sales are still small compared to the overall market – only 0.63% of new vehicle sales in the US during June. They’re not going away, but there are a few barriers to be crossed for these numbers to grow. Car shoppers need a lot more education and experience to address key concerns – limited range per charge; sparse charging infrastructure; vehicle reliability and durability; and total cost of ownership compared to what they’re driving now.

Why AeroVironment is an EV Charger Company to Watch

Electric vehicle charging solutions provider AeroVironment just made an agreement with Ford Motor Co. to be thepreferred installation partner and authorized charging station supplier for its plug-ins – Ford Focus Electric and the C-Max Energi and Fusion Energi plug-in hybrids. Customers will get a 240-volt charger and schedule a turnkey professional installation after making a call to AeroVironment (with a web-based option soon to come). AeroVironment also brings its nationwide network of certified installers and a three-year onsite parts and labor warranty.

AeroVironment has become the leader in the field – having installed 11,000 charging stations (home, public, and workplace). Two of its competitors – ChargePoint and ECOtality – have deployed US Department of Energy-grant funded installations, but AeroVironment has surged forward through its partnership with the Nissan Leaf and other customers who are very familiar with the diverse company known for its technology expertise. AeroVironment plays a leading role in supplying the US Dept. of Defense and its military organizations with electric-powered unmanned aircraft systems (aka drones). In the early 1990s, AeroVironment worked with General Motors on an electric vehicle test program that became the EV1 electric car.

The Ford program is a little bit different than the dealer program AeroVironment announced at the National Automobile Dealers Association convention earlier this year. Those buying a battery electric vehicle or plug-in hybrid have the option of financing the charger in combination with the vehicle at the time of sale. Dealers can now offer a one-stop shop experience for EV drivers. Dealers can offer various “bumper-to-bumper” warranty options for the chargers that match the financing terms of the vehicle. Chargers bought through the dealer program are installed by a licensed electrician certified in EV charging installation in all 50 states.

Nissan is working with AeroVironment on this program, and the charging station maker may do something similar with BMW, Mitsubishi, and other OEMs. Ford’s alliance with AeroVironment is very similar to the one-stop financing program with Nissan. Ford is seeing gradual increases in EV sales, and is getting a lot of attention with its C-Max Energi and Fusion Energi plug-in hybrids. It wouldn’t be surprising to see other major OEMs announce similar supplier agreements with AeroVironment.