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China’s new energy vehicles shaping the future of plug-in EVs

Chinese EV How China has become the largest plug-in electric vehicle market in the world; and how Chinese investors have put millions of dollars into U.S. companies with electric drive technology.

Editor’s note: This is the introduction to an upcoming $15 market report I’m writing that will include sales figures, pricing information, incentives, and specs on electric vehicles being built in China; and a section of the report focused on U.S.-based companies serving the Chinese EV market.

World’s largest auto market
China has experienced tremendous economic growth in the past 30 years, with workers moving from farmlands and small towns to metro areas for jobs and buying their very first cars. Ten years ago, Chinese consumers purchased about six million new vehicles annually, but last year that number had increased to 21.1 million passenger cars (sedans, SUVs, and minivans); that made for about a quarter of global sales and a huge share of profits for major automakers.

Global automakers see China as the largest and most important market for manufacturing and sales, and have created joint ventures with government-backed companies to expand their global presence. General Motors sold 35% of its new vehicles in China last year through GM China and its joint ventures. GM’s Buick brand is heavily invested in that market – selling 919,582 Buicks last year in China, versus 228,963 in the U.S. GM China has committed to bringing in 10 “greener” vehicles into its product lineup in the next few years, including the Cadillac CT6 Plug-in Hybrid Electric Vehicle.

In 2015 and into 2016, automakers and their dealer networks faced downturns and instability in sales in the Chinese market. A plunging stock market in the first part of 2016 and rising house prices have had their economic impact on car sales. Dealers in China have become reluctant to put too much vehicle inventory on car lots amid concerns about the broader economy and stock market.

In China, the government remains committed to growing plug-in hybrid and battery electric vehicle production and sales. Air pollution in Beijing and other major Chinese cities have been driving the incentives and sales for more electric vehicles (EVs) to make it to China’s increasingly congested roads. As passenger and commercial vehicles pour into cities, the air pollution has been getting worse – as was observed during the 2008 summer Olympics in Beijing.

What are new energy vehicles?
The Chinese government uses the policy term “new energy vehicles” to designate plug-in electric vehicles, and only battery electric vehicles and plug-in hybrid electric vehicles are eligible for purchase incentives. Initially, conventional hybrids were included in the incentives with plug-in EVs. More recently only plug-in EVs are eligible for the government incentives, which consist of subsidies and tax cuts.

China’s new energy vehicle sales have seen rapid growth in the past two years thanks to these incentives. The country finished in first place for global EV sales last year. China made up 34.2% of global plug-in electric vehicle sales in 2015 with 176,627 sold; in the U.S, 115,262 plug-ins were sold last year. In China, EV sales have been heavily subsidized by the national government and local branches. There’s been an assumption by global automakers that the market’s EV sales will continue to grow – enough for major OEMs to invest heavily in the market, many times in joint ventures with Chinese companies.

Chinese automaker BYD says car shoppers are more interested in owning an EV due to the air pollution in China – and this unpleasant reality is making for an effective marketing message. One of BYD’s online ads shows a man in a cloud of pollution calling for help from China’s fabled Monkey King hero.

Government policies have given Chinese investors and Chinese companies the confidence to sink millions of dollars into U.S. companies with electric drive technology. While some of these vehicles may end up in the U.S. and other global markets, Chinese investors want to focus primarily on the China market. Nissan, Tesla Motors, and other automakers would tend to agree, and are investing heavily in the China market to grow EV sales well beyond the U.S. and Europe. Chinese automakers BYD, BAIC, Chery, SAIC, Zotye, and others, have EV models in pre-production and several EV models on the market being sold by dealers; their EVs are explored in this study.

Will subsidies go away?
Subsidies for the new energy vehicles have started to decline, but they’re not going away any time soon. One assessment states that about $4.56 billion in local and central government incentives were spent last year. The government’s five year’s plan will see subsidies in 2017 and 2018 reduced by 20% from 2016 levels; and another 20% will be cut in 2019 and 2020.

There have been media reports made of fraudulent sales transactions reported in 2015, and government agencies are conducting investigations. EV sales numbers tripled last year in China, and the data may have been “padded” with some of the EVs being counted twice in the total. Another factor analyzed by global auto analysts comparing EV sales around the world is that China’s new energy vehicle policy counts low-speed, neighborhood electric vehicles in its sales figures. Chinese automaker Kandi has been offering its small, low-speed EV for retail sale in China and for its carsharing service; but its sales numbers have been low so far. Whatever findings end up being adopted and reported, China is expected to remain the leading EV market ahead of the U.S. and Europe.

A decade ago in the U.S., EVs were a hot commodity for venture capital firms in Silicon Valley and beyond along with other cleantech sectors. Up until about four years ago, you could attend auto shows and fleet events and check out a myriad of plug-ins from companies no longer in business including Fisker Automotive, Coda Automotive, Bright Automotive, and Aptera Motors.

In the early days of EV mass market sales from 2011 to 2014 in the U.S., automotive analysts and EV advocates were pleased to see strong numbers coming from the Nissan Leaf, Chevrolet Volt, Tesla Model S, Toyota Prius Plug-in, and BMW i3. Overall EV sales numbers in the U.S. began declining last year for reasons yet to be clearly understood. Cheap gasoline may have had something to do with it, although gas prices are thought to have more impact on hybrid sales than EVs.

The fascination may be over for early adopters and consumers who needed to be first in line for cool new technologies like smartphones and EVs. Executives at global automakers expect EV sales to eventually increase as consumers and fleets become accustomed to the new technologies – and lithium batteries are capable of 200-plus miles or more per charge while pre-incentive sticker prices on EVs come down to $35,000 or less. They also see government fuel economy and emissions mandates in the U.S. and Europe being a big driver behind their product planning, which includes a rich line of new EV models in the next few years.

While the EV sales numbers from the past two years may not stay high long term, most automakers do see China as the most important market to secure a solid platform for manufacturing and selling EVs. The numbers have been impressive so far this year. According to the statistics compiled by China Association of Automobile Manufacturers (CAAM), for the first two months of 2016, the production and sales of new energy vehicles reached 37,937 units and 35,726 units respectively, both increasing 1.7 times year on year. The production and sales of BEVs reached 27,850 units and 24,835 units, increasing 2.6 times and 2.7 times year on year; and such figures for PHEVs were 10,087 units and 10,891 units, increasing 60.1% and 68.5% year on year.

India may also be an important market for EV sales, with ambitious government targets and incentives being recently announced. Indian automakers could be well positioned to meet some of those targets, but having EVs delivered from Chinese production plants might be needed to meet those Indian government mandates. In late March 2016, Piyush Goyal, India’s minister of state for power, said India has the potential to become the first nation of its size to be 100% electric vehicles by 2030. Government policies set in 2013 laid out India’s goal to put six to seven million hybrid and electric vehicles on its roads by 2020. The country has been subsidizing new EVs as well as conversions to electrify existing traditional gasoline and diesel engine vehicles.

India’s largest automakers are just getting started in EV production and sales. Tata Motors is moving towards hybrids and electric vehicles. The Mumbai-based company, traditionally dependent on diesel engines, is working on partial hybrids and all-electric drive systems for its future list of passenger vehicles. Mahindra recently launched its first EV, the e20 low-priced electric car, in the United Kingdom.

China’s top carmaker SAIC Motor Corp, and Great Wall Motor, its biggest maker of SUVs, are leading the way on selling new vehicles in India, one of the world’s fastest growing auto markets, as growth at home in China stagnates. Both SAIC and Great Wall are producing EVs, and could make these products part of their market strategies in India. Major automakers like Nissan are looking at both China and India to best serve their global EV sales targets.

This market report looks at the state of China-based automakers and their EV product lineups; and where things stand with U.S.-based automakers and suppliers building electric drive technologies with the support of Chinese investors.

This Week’s Top 10: Tesla Model X voluntary recall, Three more mobility test projects

by Jon LeSage, editor and publisher, Green Auto Market

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

1. Model X recall: Tesla Motors has initiated a voluntary recall of 2,700 Model X sport utility vehicles due to problems with the third-row seats. The company was conducting an internal strength test prior to shipping Model X deliveries to Europe, and found that the third-row recliner unexpectedly slipped. The affected customers, all of whom live in the U.S., were sent an email about the recall. The Model X can still be driven prior to a recall, although Tesla is asking that passengers don’t sit in the third row seats until the SUV has been fixed. The recall affects vehicles that were made and delivered beginning in September and which were made before March 26. Tesla is now assembling new third-row seat backs and expects to replace them all within five weeks.

Mobility projects: Automakers are continuing to launch test projects for mobility services of the future. Jaguar Land Rover launched a technology venture named InMotion on Monday which aims to create apps for services such as carsharing. InMotion will begin testing carsharing mobile apps in North America, Europe, and Asia in the near future. JLR and other automakers are trying to appeal to younger consumers in major global cities who are less likely to buy a car and have been attracted by new services such as carsharing veteran Zipcar and rideshare giant Uber…… Volvo will be adding to locations to its Drive Me autonomous driving pilot projects. The U.S. has been added to the list, soon after announcing that China will be part of it. Drive Me will be launched in Gothenburg, Sweden, in late 2017. In China, up to 100 self-driving cars will be tested by local drivers on public roads in limited driving situations, such as on express roads and highways…… BMW is getting back into the carsharing business with ReachNow, which is starting with 370 cars in its point-to-point carsharing business. ReachNow will offer the ability to pick up a car on the street and park in any legal curbside spot near the driver’s destination, rather than in reserved parking spaces. Like Daimler’s Car2Go carsharing firm, ReachNow will offer the ability to pick up a car on the street and park in any legal curbside spot near the driver’s destination, rather than in reserved parking spaces; it will start up in Seattle and move out to other cities.

Alternative fuel engine innovations: Cummins Westport Inc. told Trucks.com that its 8.9-liter “near-zero NOx” engine is finishing its field test phase and the company will start taking orders this month. The engine reduces emissions of nitrogen oxide, or NOx, a smog- and ozone-causing product of fuel combustion that is particularly difficult to eradicate. The engine — called the ISL G NZ — is aimed at helping trucking companies meet regulations set by the federal Environmental Protection Agency clean-air standard that phases in from 2023 through 2031……. ROUSH CleanTech has developed a propane autogas fuel system for the Ford F-750 chassis that costs less than similar diesel counterparts. Operating up to 33,000 GVWR, the model was created in response to the growing demand for an autogas-fueled medium-duty chassis for bobtail applications, cylinder delivery trucks, and larger tank setters and box trucks, the company says.

Global EV incentives: A new study by Navigant Research examines global demand-side polices for plug-in electric vehicles. PEVs provide a number of advantages over conventional internal combustion engine-powered vehicles, including cost reductions related to vehicle operation and maintenance and the convenience of forgoing gas stations, oil changes, and emissions tests. While these benefits have not been significant enough to justify the high cost of the technology for many consumers, government policies around the world are helping to ensure the supply and demand of PEVs. Government incentives have been critical for gaining support. Western European countries are seeing few incentives and could gain from more government incentives. For example, Germany’s PEV penetration almost matches that of the United States, however incentives are relatively non-existent, which means a modest incentive improvement could create significant impacts for the market on a country and global level, Navigant says.

Model 3 may not see tax incentives: Tesla Motors may be able to stretch out federal tax incentives for the upcoming Model 3 by taking a creative approach – at least one discussed online by Tesla owners and analysts. Tesla will likely be approaching the cap placed on automakers of 200,000 electric vehicles sold for the $7,500 tax incentive as soon as 2018. Once the 200,000 mark is reached, the IRS cuts the tax credit in half for the next two quarters to a maximum of $3,750. Then the IRS slashes the tax credit in half again for another two quarters, and the incentive goes away. “We always try to maximize customer happiness even if that means a revenue shortfall in a quarter,” Musk replied on his Twitter page after suggestions were made on Tesla stretching out the timing.

Ridesharing legal battles: Ridesharing leaders Lyft and Uber are attempting to sort through legal battles with settlement agreements. A federal judge in California’s Northern District has rejected Lyft Inc.’s proposed $12.25 million settlement to resolve a case filed by California drivers over their status as independent contractors of the ride-hailing service. Under the settlement, Lyft would have avoided changes to a labor model that relies on classifying drivers as independent contractors; the judge thinks drivers have been shortchanged on mileage expenses. Uber has agreed to pay up to $25 million to settle a 2014 lawsuit filed by city officials in San Francisco and Los Angeles who want to see more from Uber on driver safety guarantees. The cities argued that Uber gave customers a “false sense of security” by touting its background checks as the toughest in the industry and are superior to the ones used by the taxi industry. Taxi drivers are given fingerprint checks, but Uber drivers are not.

Concerns over federal self-driving car guidelines: As the federal government gets closer to unveiling guidance on deployment of self-driving cars, an auto group has warned that it may be too aggressive. An automaker trade association warned Friday that U.S. auto safety regulators’ timetable for unveiling guidance on the deployment of self-driving cars may be too aggressive. The federal auto safety ageny “should not bind itself to arbitrary, self-imposed deadlines at the expense of robust and thoughtful policy analysis,” said Paul Scullion, safety manager at the Association of Global Automakers, a trade group representing Toyota, Nissan, Hyundai, and other major foreign automakers. “NHTSA should instead consider the development incrementally.” NHTSA Administrator Mark Rosekind said Friday the agency must move quickly, noting cars with significant self-driving features like Tesla Motors Inc’s autopilot function are already on the road.

Bay Area AltCar Expo: The third annual Bay Area AltCar Expo & Conference is scheduled to be held May 20-21 at Oakland City Hall and Plaza. It offers a comprehensive program for the latest in vehicle technologies, ride and drive, and public education. The event is being co-presented by the City of Oakland Public Works, the East Bay Clean Cities, and the Bay Area Air Quality Management District. Event partners include: Honda, Nissan, Mercedes-Benz, Smart, San Francisco Clean Cities, Silicon Valley Clean Cities, Breathe California, Association of Bay Area Governments, and the Transportation Sustainability Research Center at UC Berkeley.

Honda CR-V plug-in hybrid: We may be seeing a redesigned 2017 Honda CR-V, and with it, a plug-in hybrid version. A Japanese media outlet is reporting that the available plug-in hybrid variant will have a 2.0-liter gas engine that mates with an electric motor. Honda hasn’t announced the fifth-generation CR-V yet, but it’s likely to be coming out around that time with current version having been launched in 2011 and a refreshed model released in 2014.

Electric postal vans: Germany’s postal carrier service may be building its own electric vans. Deutsche Post has been planning it for years, and acquired StreetScooter in 2014. StreetScooter is a maker of prototype electric vans that the postal service demonstrated in 2012. Deutsche Post plans to build 2,000 vans this year, which will join a handful of electric vans of various types already in operation. Deutsche Post plans to eventually replace its 30,000-unit fleet of internal combustion vans with electric vehicles.

How Hyundai plans to become the world’s second largest green automaker

Hyundai Ioniq plug in Hyundai Motor Company has been surging forward in the global auto market, and plans to become No. 2 in green car sales after Toyota by 2020. Hyundai unveiled its signature brand last month at the New York Auto Show – the Ioniq – which will be the auto industry’s first-ever model available in hybrid, plug-in hybrid, and battery-electric iterations and built on the same drivetrain. It will be rolling out later this year. Within the next four years, the Korean automaker intends to flood the market with 26 green vehicles, including hybrid, plug-in hybrid, all-electric, and hydrogen-powered models.

With 8.01 million vehicles sold through its Hyundai, Kia, and Genesis brands in 2015, Hyundai Motor Co. became the fifth largest global automaker; and the third largest Asian vehicle manufacturer after Toyota and Nissan. Kia and Hyundai surpassed Japanese brands for the first time last year in the J.D. Power 2015 U.S. Initial Quality Study. The automaker plans to sell 300,000 electrified vehicles by 2020, a sizeable gain over the 70,000 electrified vehicles the company sold last year.

Here’s Hyundai’s formula to become No. 2 in “eco-friendly vehicles” –

The near-term Hyundai lineup will include the Sonata hybrid and plug-in hybrid; Ioniq hybrid, plug-in hybrid, and battery electric; Grandeur hybrid; and its Tucson Fuel Cell. The Kia brand will offer the Optima hybrid and plug-in hybrid; Soul EV; Cadenza hybrid; and the upcoming Niro Hybrid.
Hyundai says the 2017 Ioniq plug-in hybrid will travel 25 miles on electric power alone in its plug-in hybrid version compared to Toyota’s 22 miles in the new Prius Prime. The fully electric Ioniq will travel 110 miles per full battery charge, which surpasses the current Nissan Leaf but will be overtaken by the upcoming 200 miles-per-charge models.
The Ioniq Electric battery electric version will use a 28 kWh lithium-polymer battery, and is expected to deliver 155 miles per charge on the European test cycle; and would likely be lower in the U.S. As previously stated, that could be about 110 miles per charge for the U.S. rating. The electric motor will have 118 horsepower and 218 lb.-ft. of torque. Its top speed is 103 mph.
Hyundai’s strategy appears to be driven by a mix of regulatory compliance, an environmental-friendly philosophy, and profitability. “With a goal of having a fleet-wide average of 54.5 MPG by 2025, we’re leading the future of eco-friendly vehicles,” according to Hyundai’s website. Hyundai’s Blue Drive Strategy is another element of Hyundai’s corporate strategy for fuel efficient vehicles and environmentally-friendly vehicle technologies. This has started with some of the Hyundai vehicles such as the i10, more fuel efficient version of the Elantra and Accent, the company said.
Hyundai has been far behind other OEMs in its green car lineup, bringing its Sonata Hybrid to market in 2010 and the Tucson Fuel Cell in 2014. It has been driven by Toyota’s leadership, and it does need to become profitable for it to be a viable option. “Except for Toyota, I can achieve some competitiveness against other companies,” said Lee Ki-Sang, head of Hyundai’s eco-car powertrain division. “Our target is before 2020, we would like to make profits on these eco-friendly vehicles,” he said.
Hyundai Tucson Fuel Cell drivers have accumulated more than one million miles (as of mid-February) in Southern California since introduction of the hydrogen-powered car in June 2014. The first mass-market produced fuel cell vehicles has been sold to about 100 owners (in February). The Tucson fuel cell model is currently available on a 36-month lease for $499 a month with $2,999 as the down payment.
At the Chicago Auto Show, Kia unveiled the 2017 Optima Hybrid and Optima PHEV plug-in hybrid that can travel 27 miles on electricity alone. The Kia Optima recently received a complete redesign. The Kia Optima Hybrid uses the new Optima body, as well as a similar powertrain to the latest generation of the related Hyundai Sonata Hybrid. Like the Sonata, the Optima also gets a plug-in hybrid variant for the first time.
Kia also introduced the Niro, the company’s first dedicated hybrid nameplate. Along with being Kia’s first dedicated hybrid, it will have an entirely unique body style. The 2017 Kia Niro is scheduled to go on sale late this year.
In November, the 2016 Sonata Plug-in Hybrid became the first plug-in hybrid electric vehicle launched by Hyundai and comes with a 27 mile battery range. The Sonata Plug-in Hybrid’s 9.8 kWh lithium polymer battery system helps deliver 99 MPGe.

This Week’s Top 10: Second Formula E series comes to Long Beach, VW in discussion with dealers

by Jon LeSage, editor and publisher, Green Auto Market

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

Lucas Di Grassi wins Long Beach ePrix 1. Formula E series: Lucas di Grassi drove his Abt Schaeffler Audi Sport electric racer for a perfect score to win the FIA Formula E Faraday Future Long Beach ePrix on Saturday. The driver had recently had his Formula E victory in Mexico City taken away after a post-race disqualification, so the victory in Long Beach and regaining the series point lead was a big win for the team. This victory is taking place during the second annual FIA Formula E series at its stop in Long Beach, Calif. Faraday Future was recently named the title sponsor for the 2016 Long Beach ePrix, the sixth stop on the 2015/2016 Formula E race season. Formula E was started up by veteran Spanish racing promoter Alejandro Agag, and was officially launched in September 2014 in Beijing. Sponsors and promoters of the race series are quite hopeful Formula E will educate and inspire people to see the potential of electric drives to power vehicles of all types quietly and with zero emissions.

2. VW and dealers: Volkswagen brand CEO Herbert Diess talked to media and to dealers during the National Automobile Dealers Association convention to deal with the diesel car emissions reporting scandal. Jason Kuhn, owner and Chairman of Kuhn Automotive Group, was chosen over the weekend by other VW dealers to lead a committee in negotiations with VW management. Kuhn and other VW dealers are talking to the German automaker about dealing with the crisis in a way to keep the VW brand viable with car shoppers. Volkswagen Group of America is now facing a suit filed by the U.S. Federal Trade Commission for falsely advertising that hundreds of thousands of diesel vehicles were environmentally friendly when that was far from the truth.

3. Karma Automotive will be bringing its extended range plug-in hybrid luxury sedan back into production before the end of the year. Along with dropping the Fisker Automotive company name, the automaker is fast at work setting up a factory in Costa Mesa, Calif. Parent compay Wanxiang is making minimal changes to the sports car, such as new dashboard displays and some additional safety features.

4.Insurance for self-driving cars: The auto insurance industry won’t be lowering premiums on driverless cars anytime soon, but it may not be a potential fiscal disaster for insurers. Semi-autonomous features like automatic braking and lane departure prevention are already reducing the frequency of common collisions; though high-tech autonomous vehicles may require costlier repairs, according to Moody’s analyst Jasper Cooper in a report. Profits will be cut into long term as accident rates decline, Cooper wrote. Autonomous vehicle leaders are carefully waiting for the U.S. Dept. of Transportation to issue guidelines to help the introduction of self- driving car technology within the next few months.

5. India has very big goal for the next 14 years – having all electric cars on Indian roads by 2030. An aggressive incentive program would allow Indian citizens to obtain electric cars with no down payment, and then use fuel savings to pay for the balance of the cars. It’s a long ways out with a working group now taking shape.

6. Los Angeles-based Evercar has the ambitious goal of bringing zero emission vehicles as shared rides – reducing traffic congestion and smog. Evercar will adding as many as 1,000 vehicles in the gre ater L.A. area, and has been targeting on-demand drivers for Uber and Lyft. These drivers can rent its vehicles for $5 an hour, and handling all fuel, maintenance, and insurance for those vehicles. Evercar is led by Michael Brylawski, and is a subsidiary of Vision Fleet; that company is changing its name to Evercar.

7. Tesla Motors may file suit in federal court to override state franchise laws that prohibit the company form selling its electric cars directly to dealers, avoiding establishing dealer franchise networks. For now, Tesla is negotiating settlements in various states that may permit the automaker to open a specified number of Tesla Stores and service facilities.

8. LG Chem a major battery supplier: As General Motors and other OEMs compete with Tesla with upcoming electric car launches, LG Chem will play a significant role in supplying batteries and other technologies, according to Navigant Research. LG Chem will supply batteries for the upcoming Chrysler Pacifica plug-in hybrid. Daimler, Ford, Renault, and Volvo. The South Korean company is now supplying not only battery packs, but also motors, inverters, and onboard chargers to GM for the Chevrolet Bolt.

9. EPA methane challenge program: The U.S. Environmental Protection Agency (EPA) has launched a new voluntary partnership program that seeks to reduce methane emissions from the oil and gas industry. The Natural Gas STAR Methane Challenge Program has been launched by the EPA with 41 founding partner companies, will focus on achieving cost-effective methane emission reductions from natural gas operations. That will include onshore production, gathering and boosting, processing, transmission, storage, distribution segments, and onshore oil production. This will help lower well-to-wheel emissions and further enhancing the appeal of natural gas powered transportation.

10. Ricardo and Qualcomm partnering on wireless charging: Global engineering firm Ricardo has licensed Qualcomm Halo technology to commercialize wireless electric vehicle charging (WEVC) systems for plug-in hybrids and battery electric vehicles. Qualcomm has granted to Ricardo a royalty-bearing technology license to develop, make, and supply WEVC systems for automakers. Qualcomm subsidiaries will provide technical expertise and engineering support. Ricardo sees WEVC as an enabling technology for automakers to drive mass adoption of EVs by simplifying the charging challenge.

Fact sheet on the Tesla Model 3 roll out and its long list of pre-orders

Tesla Model 3 Tesla Motors marked a moment in plug-in electric vehicle history on Thursday night by unveiling what could become the first affordable electric car hitting mass-market sales; and getting hundreds of thousands of people to put money down on a car that won’t be coming out any time soon.

As of April 7, more than 325,000 orders had been placed with $1,000 down payments for the $35,000 midsize sedan. Deliveries won’t start until late 2017 with rollouts coming in the Spring of 2018 – nearly two years from now. If that many Model 3s are to be sold in 2018, it would more than double the number of EV sales seen in the U.S. in 2015. The roll out of the Model 3 will be closely watched as it competes with the Chevrolet Bolt and other cost competitive, longer range EVs that come to market.

Tesla has high hopes on sales going way beyond what’s been seen so far for its first three electric vehicles; and to pay for the billions of dollars invested in engineering design and its Gigafactory lithium battery plant in Nevada. During the launch event, Tesla CEO Elon Musk told the story of what it takes to roll out a safe, affordable electric car with good driving range; and the urgent environmental issues behind it.

Franz von Holzhausen, the chief executive designer at Tesla Motors who leads the Model 3 launch, came on stage first Thursday to welcome the audience. It was a high-energy crowd made up of hundreds of adoring fans and automotive reporters, at its Hawthorne, Calif., facility next door to the SpaceX headquarters. He welcomed his boss, Elon Musk, who came out to unveil, “an amazing product which will blow you away.”

Before pitching the performance of the Model 3, Musk started out with an overview on sustainability. As for why Tesla is building electric cars, “…..it’s very important to accelerate transition to sustainable transport,” Musk said. “This is really important for the future of the world. We have record high C02 levels.”

Musk described as the “Tesla secret master plan.” It all started with the high-priced, low-volume electric sports car, the Tesla Roadster, which has only been built at about 500 units per year. Tesla had to break the mold of slow, ugly electric cars that was the norm for many years, Musk said, and the Roadster was able to do it.

Next came the award-winning Model S sedan, followed by the first electric SUV, the Model X. Musk said half the market wants cars and half wants SUVs, so Tesla extended the Model S platform into the Model X. Musk said that it’s taken multiple iterations and economies of scale to make it all affordable. Revenue produced by sales of the Model S and Model X were needed to move the Model 3 forward. “To all of you who bought the Model S and the Model X, thank you for helping to pay for the Model 3,” Musk said to a cheering audience.

After the staged presentation, journalists were given brief rides around the premises but weren’t allowed to drive the vehicle themselves. One reporter said that when the test driver floored the accelerator of the dual-motor Model 3, it had the same power-torque feeling as the Model S. That will be a very good selling point for the Model 3.

All of this being said, here’s a fact sheet on the Tesla Model 3:

Pricing: $35,000 starting price before incentives

Range per charge: 215 miles, and Supercharger capable

Torque: zero to 60 mph in under six seconds

Safety: Model 3 is being designed to attain the highest safety ratings in every category; with the goal of reaching 5-star safety ratings in all categories once again. There will also be Autopilot safety features.

Seating and storage: Seating for five adults; trunk in rear and no hatchback

Pre-orders: As of April 3, there were 276,000 pre-orders with $1,000 deposits made. (To stay current on Tesla Model 3 pre-sales orders, go to Elon Musk’s Twitter page.)

Logo design: Something unconventional, but also used in the Tesla logo for an “e”…….

Deliveries: Begin late 2017

This Week’s Top 10: VW deadline extended and EVs recalled, AFV deployment webinar coming up

by Jon LeSage, editor and publisher, Green Auto Market

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

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

Highlights from New York Auto Show where Hyundai Ioniq grabbed attention

New York Auto show sign High performance luxury sports cars took center stage at this year’s New York Auto Show. New product launches included Audi’s convertible version of its R8 supercar, the R8 Spyder; the redesigned Lincoln Navigator concept luxury SUV; and the Mercedes-AMG C63/C63 S cabriolet with 503 horsepower and 516 ft-lbs. of torque in the C63 S. Fuel efficient and alternative technology vehicles wasn’t the star of the show, though it did have its presence; even though gas prices are down, automakers are continuing to move forward to diversify green car offerings on the market and to meet federal and state of California fuel economy and emissions standards. Hyundai’s Ioniq took the most attention among green cars being shown off, and the Toyota Mirai fuel cell car won an international award.

Hyundai announced that its newly unveiled Ioniq will roll out to dealers later this year in hybrid, plug-in hybrid, and battery electric vehicle options. Hyundai’s putting a lot of hope in the Ioniq to move its brand along with excellent gas mileage and attractive plug-in range; and as its first dedicated alternative technology model. Hyundai wants to be the second largest green car seller in the world by 2020, following Toyota, so there’s a lot of expectation on the Ioniq brand to perform. The hybrid version may be rated at 57 or 58 miles per gallon in combined city and highway mpg. The plug-in hybrid will get 25 miles of battery power before the gas engine kicks in with a total driving range of about 600 miles using its battery and gas engine. The battery electric car will go 110 miles per charge, farther than the Nissan Leaf.

Hyundai’s Genesis brand showed a hybrid-powered, cleanly styled concept luxury sedan. The stylish hybrid concept car is the latest offering from Hyundai’s newly launched Genesis luxury brand. It offered a glimpse of the upcoming Genesis G70 that has its sights set on the BMW 3-series; and it’s meant to set the stage for the future of the Genesis brand.

The 2017 Prius Prime plug-in hybrid was Toyota’s most visible showing in New York. It suggests that Toyota remains committed is to its Prius lineup of hybrids at a time when gas prices remain at unexpected lows. The introduction of the Prius Prime plug-in hybrid comes two years after Toyota ended production of its previous Prius plug-in hybrid car. The first Prius plug-in car went just 11 miles on a full charge and dropped in sales after an initial surge. Toyota estimates that the Prius Prime will get 120 or more miles per gallon equivalent, which would be the highest MPGe rating of any plug-in hybrid. It will offer a significant 26% improvement over its predecessor Prius Plug-in.

In the SUV segment, Toyota demonstrated a hybrid version of its Highlander, Honda Motor Co.’s Acura MDX will get a new “sport hybrid” option, and the Maserati Levante is available in hybrid form. As for supercars, the Koenigsegg Regera revealed in New York combines electric drive with a V-8 engine to generate more than 1,500 horsepower.

During a ceremony on Thursday at the show, The Toyota Mirai hydrogen fuel cell car was named 2016 World Green Car. The Mirai was one of eight global vehicles nominated for the annual award. Judges factored in tailpipe emissions, fuel consumption, and use of a major advanced power plant technology to increase the vehicle’s contribution to sustainability. While it’s only rolling out now in California, advocates of hydrogen fuel cell vehicles see the Mirai as a major stepping stone in moving the technology forward.

This Week’s Top 10: BMW reveals plans for autonomous and electric vehicles, EVI acquired by First Priority GreenFleet

by Jon LeSage, editor and publisher, Green Auto Market

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

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

Lyft and Uber testing grounds for autonomous vehicles

Lyft Express Drive Advanced mobility continues to look tangible and coming sooner to market than it appeared a couple years ago. Google’s unveiling of its small fleet of self-driving cars for road tests in the Spring of 2014 triggered a flurry of debate about the launch of road-worthy automated cars by 2035. That timeline may be shortening to 10 years or less, at least for automated driving technologies coming to market.

Ridesharing giant Uber’s investment in the Carnegie Mellon autonomous vehicle research center and General Motors’ half billion investment in Lyft with raised the ante. In the past week, more fascinating news was revealed………

Uber may have asked a few automakers for details on placing a large order for self-driving cars, an industry source told Reuters. Uber may have placed an order for at least 100,000 Mercedes S-class cars, but this isn’t being confirmed by Daimler or Uber. The executive sedan doesn’t year have fully automated features, nor do any other cars available on the market beyond road tests.

Uber needs to cut its largest cost – paying drivers – so self-driving cars are a logical step for the on-demand transportation company. Audi, Mercedes-Benz, BMW, and suppliers Bosch and Continental are working hard on advancing their technologies, as are several other OEMs and suppliers outside Germany.

Analysts at Exane BNP Paribas see a $25 billion market for automated driving technology by 2020. As for fully autonomous vehicles coming to roads, the brokerage firm sees that happening by 2025 or 2030, in part due to regulatory hurdles.

General Motors is following up its January investment of $500 million in the second largest ridesharing company, Lyft, with a symbolic step forward. GM and Lyft this month will launch a short-term rental program for Lyft drivers in Chicago with a fleet of 125 Chevrolet Equinoxes.

Similar to Uber offering car loans for drivers who don’t yet have their own car, Lyft drivers will be able to rental GM vehicles to do their work. The program, called Express Drive, will rent vehicles to Lyft drivers for one to eight weeks, including free maintenance and insurance. The companies said it will soon roll out to Boston, Washington, D.C., and Baltimore prior to a nationwide rollout.

Drivers will have an incentive for delivering riders more miles. Drivers who complete fewer than 40 rides a week will pay $99 a week and 20 cents a mile. For those driving between 40 and 64 rides, the mileage fee will be waived. Drivers who make 65 or more rides will have free access to the Equinox.

GM chose the Chevrolet crossover because it’s compact and it offers a comfortable interior and versatile storage, said Julia Steyn, GM’s vice president of urban mobility programs. Steyn also said Express Drive will build the infrastructure for an eventual fleet of on-demand autonomous vehicles, the long-term goal of the partnership.

Renting the vehicles and tracking driver contracts will be managed by Maven, the mobility subsidiary that GM created in January. GM is covering maintenance costs and is sharing the insurance cost with Lyft and Warranty work will be done at GM dealerships, Steyn said.

On-demand car service Uber announced this morning a new feature designed to make it easier for its customers to pay for rides for their friends and family: Family Profiles. The option was one of Uber’s most frequently requested features, the company notes, and will initially go live in a handful of markets, including Atlanta, Dallas and Phoenix, before rolling out elsewhere.

Though dubbed “Family Profiles,” the option to pay for others’ rides doesn’t only extend to those in your immediate family – you can choose to add anyone to this group in the app, including friends, co-workers, or anyone else. However, it makes the most sense for those who want to bill trips taken by others all to the same payment card – that means those who you add will need to be part of a fairly trusted group of people.

For example, parents could use the Family Profile setting with their kids in college – allowing them peace of mind that their child would always have a free ride home, when needed. You could also use it to help others you care about who may need the financial assistance.

This Week’s Top 10: China shaping the global EV industry, NHTSA exploring rules on self-driving cars

by Jon LeSage, editor and publisher, Green Auto Market

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

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