Sacramento and East Bay Clean Cities Forum explores advanced vehicle technology innovations

Sacto and East Bay Clean Cities“Northern California Clean Technology Forum” featured informative speaker panels and introduction to the Toyota Mirai hydrogen fuel cell car. Held at the California Automobile Museum in Sacramento on Oct 14-15, and hosted by the Sacramento and East Bay Clean Cities Coalitions, stakeholders in the region met to mingle, hear the latest on advanced vehicle technologies, and check out exhibited vehicles including plug-in electric school buses; there was also one of the few remaining GM EV1 models on display in the conference room.

The event kicked off Wednesday with a tour of the Sacramento CNG Station and Natural Gas Compliant Shop. A welcome reception started off the evening prior to the East Bay Clean Cities Coalition 2015 Clean Air Champion Awards. Richard Battersby, Equipment Services Manager for the City of Oakland and Coordinator and Executive Director of the East Bay Clean Cities Coalition, handed out awards to: Ben Rutledge, Resident Engineer, Anheuser Busch In-Bev, Fairfield Brewery; Pat O’Keefe, Vice President and Lori O’Keefe, Project Manager, Golden Gate Petroleum; Nina Hapner, Environmental Director and Fred Carr, EV Project Director, Kashia Band of Pomo Indians of the Stewart’s Point Rancheria; Phillip Kobernick, Sustainability Project Manager, Alameda County; and Kent Leacock, Director of Government Relations, Proterra.

On Thursday, Keith Leech, President of Sacramento Clean Cities and Chief, Fleet Division & Parking for Sacramento County, made opening remarks on topics to be addressed during the day. The first speaker panel started with Kerry Drake, Associate Director at the U.S. Environmental Protection Agency – Region 9, talking about the gains being made in the Central Valley to meet the EPA’s top priorities, public health and greenhouse gas emissions reductions. Drake compared the museum’s vehicle display of classic cars going back to the 1920s to where we are now; he described his trip to the museum using Google Maps, being a carsharing subscriber, and looking forward to seeing the upcoming Tesla Autopilot.

Mike Tunnell, Director of Environmental Affairs at American Trucking Associations, talked about the trucking industry facing the second phase of the federal regulations on fuel economy and emissions. Technology innovations need to be reached for this to be possible, Tunnell said. Waste heat recovery, 6×2 axle configurations, automatic engine shutoff, low rolling resistance tires, and automatic tire inflation are resources being tapped into for mileage improvements.

Bill Van Amburg, Senior Vice President at CALSTART, gave an overview of 2016 model year roll-outs in clean vehicles. The Mirai, a Japanese word for “future,” was up on the stage with Van Amburg and other speakers; that fuel-cell vehicle is launching this month in California.  The 2016 Toyota Prius, with its revamped exterior, is also being anticipated in the market.

On the commercial vehicle side, Van Amburg discussed innovations being adopted as increased fuel economy pushes forward in Phase 2 of the federal rules; breakthroughs on this front include a Freightliner model that has increased from 6 mpg to 12 mpg and a Cummins engine with NOx 90% below its 2010 level. Renewable natural gas is coming to market, and Cummins said that the clean fuel can now be used in its 6.6L and 12L engines. Two other innovations that Van Amburg discussed include the Cadillac Super Cruise hands-free system rolling out in 2017 Cadillac models; and the Workhorse battery electric “HorseFly” package delivery drone winning U.S. Federal Aviation Administration authorization for test flights.

Rich Piellisch, Editor of Fleets & Fuels, moderated a panel on renewable fuel sources moving forward as a viable alternative for fleets. Speakers included Teri Rohner, CA DGS Natural Gas Services Program on renewable natural gas; Pat O’Keefe, CEO of Golden Gate Petroleum on renewable gasoline and diesel; Chris Kretz, Business Development Manager at Air Products on renewable hydrogen; and Bill Boyce, Electric Transportation Supervisor at Sacramento Municipal Utility District (SMUD) on renewable electricity.

During that same day, the City of Oakland announced its commitment to renewable diesel when the first of its vehicles filled up with NEXDIESEL renewable diesel during a gathering of the Public Works Department, its supplier Golden Gate Petroleum and fuel manufacturer, Neste. Golden Gate Petroleum sells Neste’s NEXBTL renewable diesel under its own brand NEXDIESEL renewable diesel and had display cars outside the automotive museum.

Green Auto Market Editor Jon LeSage moderated a panel on future vehicle technologies and transportation trends. Jean-Baptiste Gallo, Senior Project Engineer at CALSTART; Jason Schulz, Partnership Marketing Manager & Business Development for the 21st Century at Toyota; and Tim Lipman PhD, Co-Director at the Transportation Sustainability Research Center, UC Berkeley, talked about the “urbanization” trend with traffic congestion and air pollution driving policy changes and increased use of transportation alternatives such as carsharing and ridesharing. Carsharing services such as Zipcar and Car2Go are taking off in membership, and ridesharing services from Uber and Lyft are seeing gains in permission to pick up at airports and in ridership numbers.

With predictions of another one billion people living on the planet by 2025, Toyota is looking at alternatives such as the electric I-Road three-wheeler being testing out in Japan, Schulz said. Automakers are looking at the changing transportation options that members of the Millennial generation who put off car purchases longer than previous generations, and who are looking for practical options in personal mobility in crowded cities.

During the panel’s discussion of autonomous vehicle technologies, Schulz said that for OEMs, safety is the driving force behind supporting test projects such as Mcity in Ann Arbor, Mich. Toyota, Honda, GM, and suppliers are exchanging data from the Mcity project to develop autonomous technologies and take away the 33,000 fatalities per year figure that continues in the U.S. Safety issues and cyber security are being addressed in the autonomous vehicle studies, as is the question of whether driverless cars will take away road traffic congestion, Lipman said. If long commutes become easier for watching TV or reading a book, it can take away the motivation to drive less miles and remove some of the traffic congestion, he said. Lipman and his colleagues have seen a strong convergence between electrified and autonomous vehicle technologies.

Electrification of urban fleets is seeing gains in passenger vehicles and truck options, Gallo said. Energy storage, smart grid technologies, and electricity price planning are being explored by companies. A recent CALSTART study analyzed how fleets are integrating electric vehicles including delivery trucks and transit buses. Managing through demand periods when energy costs rise is still new for a lot of fleets, and they’re testing out solutions in the new vehicle-to-grid systems.

An afternoon session featured fleet success stories using GPS/telematics for sustainability gains. Dave Head, President of NorCalMEMA; David Worthington, Fleet Manager, Sonoma County; Doug Bond, Fleet Manager, Alameda County; and Sam Pence, Heavy Equipment Mechanic Leadworker, CalTrans, participated on this panel.

This Week’s Top 10: More on the VW scandal, Sacramento Clean Cities hosting Clean Technology Forum

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. Volkswagen diesel recallVW diesel emissions scandal: The biggest automotive scandal of the year (and maybe the decade) carries on….. Consumer Reports did some road testing with TDI diesel Volkswagen models and found mild differences in the reporting. The team tested a 2011 Jetta SportWagen TDI, powered by the now-discontinued EA 189 engine, and a 2015 2015 Jetta TDI sedan, which is equipped with the company’s new EA 288 engine. The newer engine has the latest in diesel emissions technology, a selective catalytic reduction system, while the older model does not; and both are included in the 482,000 unit U.S. recall. The 2015 VWs’ fuel economy slipped from 53 to 50 mpg in the tests, while older models’ fuel efficiency went from 50 to 46 mpg. The new model drove from 0-60 in 9.1 seconds in regular driver mode and 9.2 seconds in “cheat mode,” and the 2011 Jetta slowed from 9.9 seconds to 10.5 seconds……. W’s credit rating was cut one level by Standard & Poor’s, which said the German carmaker’s cheating on U.S. diesel-emissions tests indicates management weaknesses that may lead to a further debt downgrade……… California has given Volkswagen until November 20 to come up with a plan to fix diesel models affected by its deceptive emissions tests, according to the California Air Resources Board……… VW is offering a $2,000 loyalty bonus to current owners of its diesel and gasoline models, which can be used to buy a new gasoline or hybrid 2015 or 2016 model……. Volkswagen of America is wiring additional “discretionary funds” to dealers in its network to be used as incentives, sales bonuses, and floorplan subsidies. Diesel models have made up more than 20% of sales for VW and Audi dealers in the U.S., so incentives are needed to deal with the downturn.
  2. Clean Tech Forum: The Sacramento Clean Cities Coalition will be holding the Northern California Clean Technology Forum on October 14-15th at the California Automobile Museum in Sacramento, Calif. A tour of the Sacramento CNG Station and Natural Gas Compliant Shop will take place on the afternoon of the 14th and a reception will be held that evening. Panel discussions and networking will take place on the 15th. This year’s event will showcase vehicle and fuel technologies in the next two years and the next two decades. I’ll be moderating a speaker panel on Oct. 15, “A Panel Discussion on Future Technologies,” featuring Jason Schulz, Partnership Marketing Manager & Business Development for the 21st Century, Toyota; Jean-Baptiste Gallo, Senior Project Engineer, CALSTART; and Tim Lipman PhD, Co-Director Transportation Sustainability Research Center, UC Berkeley. You can view the agenda here.
  3. BlueIndy adds to carsharing membership: The new electric carsharing service in Indianapolis, BlueIndy, has surpassed the 500-member mark and the number of trips have passed the 1,500 mark. The electric service launched on September 2 and quickly began registering daily, weekly, monthly, and yearly memberships. The vast majority of members opt for the yearly plan which is the most economical with a 20-minute ride costing just $4. Indianapolis is the first American city to use the Bluecar, an electric vehicle developed by the Bolloré Group. Indianapolis was selected to be the US showcase for this unique service, with plans to expand to other leading cities around the globe; the city’s fleet has been dedicated to deploying electric vehicles and accessing carsharing services.
  4. Smart parking solutions: Finding parking in crowded city spaces is gradually becoming a major source of stress and more air pollution around the world. The parking industry is being transformed by new technologies that are enabling cities to reduce levels of congestion significantly. Sensor networks that detect vehicle occupancy are providing the basic intelligence behind smart parking systems. Adoption of these necessary technologies has been slower than expected, according to a Navigant Research study, but government funding is helping system adoption to grow steadily. Another solution has come from other segments of the market, such as universities, airports, and corporate campuses, ramping up deployments of smart parking systems.
  5. Propane autogas recognition: At this year’s BusCon Expo in Indianapolis, the Propane Education & Research Council partnered with METRO Magazine to recognize five top transit fleets for their use of clean, domestic propane autogas. Groome Transportation, Historic Tours of America, Inter-County Public Transportation Authority, LeeTran, and VIA Metropolitan Transit were each presented a “Top User of Propane Autogas” award. These transit agencies and transportation companies are operating hundreds of propane-powered vehicles for significant emissions reduction, cutting operating costs, and decreasing dependence on foreign oil.
  6. Ford Focus Electric ad: Ford has launched its first-ever ad campaign for the Focus Electric, which “delivers a 100% electric punch with zero C02 emissions.” It’s part of Ford’s car campaign that follows the iconic Built Ford Tough pickup truck ad campaign. The car campaign is built on the slogan, “That feeling of power? It’s By Design.”
  7. Peak year of fossil fuel use? Yes, according to global futurist David Houle. The supply of oil is far outstripping demand, and we’ll never see the $100 per barrel price of oil again. What’s behind it? “The transportation and building sectors have become vastly more energy efficient than in 2000, or even 2010. The price of alternative and renewable energy has dropped dramatically in the last ten years and is now comparable in cost to fossil fuels as a source of electricity. There is a rapidly growing critical mass of people who fully see and understand the magnitude of climate change,” Houle predicts. He also predicts that oil producing regions – Middle East, Africa, and Latin America – all have an abundance of sun and wind and will turn to them for their own energy rather than spending money on gas subsidies for their citizens.
  8. Biofuels cleaner than electric vehicles?: Yes, according to Biofuels Digest editor Jim Lane. Looking at the “well-to-wheels” emissions for plug-in hybrids and battery electric vehicles, they’re higher in emissions than E85 or renewable diesel, according to the U.S. Dept. of Energy’s recent Quadrennial Technical Review. Lane twists the knife a little deeper, playing on the wealthy EV owner criticism that’s grown in popularity this year: “Electrics are generally purchased by rich white guys, who get big tax breaks, at the expense of the poor and Latinos, who tend to favor renewable fuels over electrics when it comes to reducing carbon.”
  9. Hyperloop taking shape: Originating in August 2013 when Tesla CEO Elon Musk issued a whitepaper on the 700-mph low-pressure tube train, Hyperloop Technologies Inc. is seeing gains. The team of over 50 full-time employees was founded in 2014 by Brogan BamBrogan and Shervin Pishevar, and is headquartered in the downtown Los Angeles Arts District; with former Cisco President Rob Lloyd joining the company as CEO. The team of engineers are focusing on everything from rockets, to turbines, to laser communication systems, to electric vehicles, and fusion energy research diagnostics.
  10. More from Elon Musk: Speaking to German newspaper Handelsblatt,Musk talked about the buzz around Apple possibly getting into the electric and autonomous car business through hiring more staff: “(Apple) have hired people we’ve fired. We always jokingly call Apple the ‘Tesla Graveyard’. If you don’t make it at Tesla, you go work at Apple. I’m not kidding.”

Toyota working hard at building its image as the leader in safe, connected and autonomous vehicles

Self driving Lexus test modelToyota Motor Corp. is striding forward to reestablish its name as a manufacturer of safe vehicles and a forerunner in advanced, autonomous vehicle technologies. Its vehicle communication system, called ITS Connect, will go on sale in Japan this year in the Toyota Crown luxury sedan; it was unveiled on Oct. 6 during a demonstration near the Tokyo waterfront. Toyota said it will deploy autonomous driving systems by 2020 supporting vehicles talking to each other, scanning blind spots, and keeping safe distance from other cars.

Toyota’s work is aimed at supporting developing technologies that could lead the auto industry’s transition to autonomous vehicles. That will come through ITS Connect, which deploys vehicle-to-infrastructure and vehicle-to-vehicle communication systems in its cars; these technologies are also described by transportation planners as “intelligent transportation systems” (ITS). Some experts believe that ITS technologies will be key components in autonomous vehicles. For now, Toyota is considered a leader in connected car technologies that will play a role in the future of autonomous vehicles.

Toyota is continuing to recover from its massive vehicle recall during 2009-2010 for “unintended acceleration,” and was part of the major recall this year with Takata airbags. In February 2011, the National Highway Traffic Safety Administration, in collaboration with NASA, released findings into the investigation on the Toyota drive-by-wire throttle system. After a 10-month study, NASA and NHTSA scientists found no electronic defect in Toyota vehicles; the crisis wasn’t over in court rooms, but the ruling helped Toyota emerge from the crisis on solid ground.

General Motors seemed to follow Toyota’s lead in 2014 with its massive recall of 39 million vehicles globally over a faulty ignition switch, bringing in outside investigators to get to the root of the problem. Analysts and commentators are encouraging Volkswagen to follow a similar ethical path in its diesel emissions scandal accountability.

Along with hydrogen fuel cell vehicles, Toyota has been investing in safety and innovative technologies that could support development of future autonomous vehicles. Toyota has been testing out its own Advanced Safety Research Vehicle – a Lexus LS used for research at the Toyota Research Institute in Ann Arbor, Mich. It uses forward-looking and side-facing millimeter-wave radar sensors, as well as a 360-degree laser scanner. Onboard computers use data from those scanners, and data collected from the engine and wheels, to collect data on the car’s surroundings, and operate the car’s controls.

Eight automakers – Toyota, Daimler, Ford, General Motors, Honda, Hyundai, Nissan, and Volkswagen – have been developing vehicle-to-vehicle communications (V2V) technology in cooperation with the federal government for several years through a group called the Crash Avoidance Metrics Partnership (CAMP). The V2V transmitters and software are expected to cost an estimated $350 per vehicle in 2020; but automakers so far have supported NHTSA’s objective.

On Aug. 18, 2014, NHTSA released an advance notice of proposed rulemaking and a supporting research report on V2V communications technology. “Safety is our top priority, and V2V technology represents the next great advance in saving lives,” said US Transportation Secretary Anthony Foxx.

The rules will give drivers early warnings of approaching danger in vehicles built after 2020. NHTSA predicts that V2V technology could prevent 25,000 to 592,000 crashes and save 49 to 1,083 lives annually when the entire US vehicle fleet has adopted the technology; that would come from adopting Left Turn Assist (LTA) and Intersection Movement Assist (IMT) applications.

The Ann Arbor test, managed by the University of Michigan Transportation Research Institute (UMTRI), is testing out several different accident-prevention approaches. The most sophisticated includes 64 cars, three buses and three trucks driven by the public and specially built by the automakers with a sampling of six safety-warning features, along with video cameras to capture traffic incidents.

On the green car front, Toyota is counting on the redesigned 2016 Prius to reestablish the Prius brand as a technology innovator. For fuel cell cars, Toyota will be displaying the Toyota FCV Plus at the Tokyo Motor Show. Toyota is counting on the 2016 Mirai to essentially become the Prius of hydrogen fuel cell cars.

This Week’s Top 6: Model X rollout, Chevy Volt attack ads

by Jon LeSage, editor and publisher, Green Auto Market

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

  1. Tesla Model XModel X SUV rolls out: The long-awaited Tesla Model X was unveiled a week ago at a warehouse party in Fremont, Calif. The luxury all-electric SUV gets 257 miles on one charge and can reach 60 mph in 3.2 seconds in Ludicrous mode. As we’ve know about for three-and-a-half years, it comes with futuristic falcon-wing doors. It is an expensive car, reminiscent of the BMW i8; the Model X comes with a $132,000 price, plus delivery and other fees. The Tesla Model S has been selling in various editions from about $75,000 to around $100,000 and lease payments have been in the $1,100 to $1,300 per month range. There are no details released yet on what the Model X will cost in payments through financing options, but it has required a $40,000 deposit. Demand is strong, even at its high price. There should be a lot more owners lining up for the cheaper Model III, which is due to roll out in 2018.
  2. Chevy Volt attack ads: When the revamped 2016 Chevrolet Volt rolls out next spring, General Motors has plans to attack its arch enemies, the Nissan Leaf and Toyota Prius. At the press launch in San Francisco, Chevrolet executives showed the ads to automotive journalists. The Volt ads focus on three messages: The car’s 53-mile all-electric range, its advanced technology, and a combined gasoline and electric driving range of more than 400 miles. The 2016 Volt has a sticker price of $33,995, including destination – down from the 2015 price of $35,110 including shipping.
  3. New name for Fisker Automotive: The luxury sports carmaker Fisker Automotive has renamed itself Karma Automotive. The new company intends to bring the Karma plug-in hybrid back to market next year. The company says the new name was chosen because it’s “relevant to both the old and new brands, while providing an aspirational message which embodies the company’s purpose.”
  4. GM gets into personal mobility: General Motors will be investing $5 billion to take on new challengers such as Apple, Google, and Tesla, CEO Mary Barra said. During the Thursday meeting at its GM Proving Grounds near Detroit, Barra also announced the automaker’s “Let’s Drive” carsharing program in New York City. It will be available to eligible residents of The Ritz Plaza, who will have access to a GM vehicle for three hours each month. Those interested can buy more carsharing hours at a nominal rate. In related news, GM discussed plans to test out a fleet of autonomous 2017 Chevrolet Volt plug-in hybrids at its Tech Center site in Michigan. Employees will use the vehicles to get around the 326-acre campus in Warren, Michigan.
  5. RNG buses: Orange County Transportation Authority (OCTA) in Southern California plans on switching over to renewable natural gas (RNG) in its existing fleet of more than 340 compressed natural gas buses – and will add 202 new buses. The transit agency is looking for a supplier to provide a guaranteed supply of RNG to its four facilities; the supplier will develop and manage OCTA’s Low Carbon Fuel Standard (LCFS) program.
  6. Honda fuel cell car: It’s take a while, but Honda is getting ready to unveil its fuel cell vehicle, currently being named the Honda FCV. It’s scheduled to be rolled out at the Tokyo Motor Show, and will feature a very similar look as the finalized version Honda will be bringing to market next year. Honda said it has made a few changes to the FCV since introducing it as a prototype in November 2014.The range is being extended to more than 300 miles; that will place it in a competitive position with the 301-mile rated Toyota Mirai.

Attorney organizing VW class-action suit and bringing experience from BP oil spill

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

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

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

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

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

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

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

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

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

This Week’s Top 6: DOE awards $55M in clean vehicle projects, CARB re-adopts low carbon fuel standard

by Jon LeSage, editor and publisher, Green Auto Market

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

  1. DOE EV programDOE $55M in Grants: General Motors won a nearly $4 million award from the U.S. Dept. of Energy’s funding of clean vehicle technologies. The GM project “will research, develop, and demonstrate a highly integrated wide bandgap power module for next generation plug-in vehicles.” It’s one of 24 projects awarded nearly $55 million in the DOE funding round designed to strengthen the U.S. clean energy economy, reduce petroleum consumption, and support the agency’s EV Everywhere Grand Challenge to make electric vehicles as cost competitive as traditional internal combustion engine vehicles by 2022. The biggest grant award went to Cummins Inc. – $4.5 million for its Cummins SuperTruck program. Through the Advanced Vehicle Power Technology Alliance with the DOE, the Department of the Army is contributing an additional $2.26 million in co-funding to support projects focused on battery modeling technologies and computational fluid dynamics.
  2. State reaffirms commitment to low carbon: The California Air Resources Board voted Friday to readopt its low-carbon fuel standard; the action was taken in the wake of the ambitious petroleum reduction mandate being cut from the state’s clean energy bill. It will require California to achieve at least a 10% cut in the carbon intensity of transportation fuels by 2020. CALSTART lauded CARB’s strong support for low carbon fuels. “The Low Carbon Fuel Standard requires fuel producers to innovate and invest in cleaner fuels. Because of strong policy direction, a number of California industries have been doing their part – now it’s time for the oil industry to do its fair share. Today’s action by the Air Resources Board will spur investment and encourage job growth in California, enabling the development of fuels we can truly live with for decades to come,” said John Boesel, President and CEO of CALSTART.
  3. Carsharing is taking off: Interested in reading more about ridesharing giant Uber? Don’t forget how much carsharing is expanding, says a new report. According to Navigant Research, global carsharing services revenue is expected to grow from $1.1 billion in 2015 to $6.5 billion in 2024. The success of one-way carsharing services is prompting more companies to consider offering this service model (which Daimler’s Car2Go is finding out). Carsharing members can use one-way carsharing for shorter, spur of the moment trips. Automakers have entered this market with good results, building substantial membership levels in only a few years, according to the Navigant report. In related news, Zipcar said it will be launching its car-sharing service on 100 additional colleges and universities nationwide by the end of 2015.
  4. Dealers sue VW: Independent, used car dealerships sued Volkswagen in California last week for the losses they expect to take with the “clean diesel” scandal. Dealers sued over losses they say they will incur following revelations that the company fitted some diesel models with software to cheat on U.S. Environmental Protection Agency vehicle emissions tests. The proposed class action was filed in California federal court on behalf of independent car dealers in the state and seeks damages likely to exceed $1 million.
  5. China and U.S. make carbon deal: The U.S. and China are moving forward on their 2014 agreement to reduce carbon emissions. During President Xi’s visit to Washington, D.C., the U.S and China released a U.S.-China Joint Presidential Statement on Climate Change that will affect transportation, energy, and construction. The partners will develop collaborative Electric Vehicle (EV) Interoperability Centers with the goal of coordinating relative technical standards, promoting coordination, and providing technical support to the existing, successful electric vehicle work between the two countries. The U.S. and China are also committing to finalize respective next-stage fuel efficiency standards for heavy-duty vehicles in 2016, and both countries are committing to implement them in 2019.
  6. Autonomous-capable vehicle forecast: Navigant Research has come up with a good tag name for self-driving vehicles – “autonomous-capable vehicles.” Advanced driver assistance features are bringing semi-autonomous driving features under specific circumstances to current vehicles and soon-to-be released models. Cars will soon have the ability to cruise on freeways and safely navigate traffic jams with minimal driver input. The research firm thinks that 85 million autonomous-capable vehicles are expected to be sold annually around the world by 2035. Improvements in traffic flow in a city are a key reason for continuing advancements in autonomous-capable vehicles, says Dave Alexander, senior research analyst with Navigant Research.

Is Volkswagen the Darth Vader of the automotive space and will clean diesel survive?

VW as Darth VaderWas Greenpeace right about Volkswagen with its Darth Vader spoof in 2011? The environmental group lampooned VW’s TV commercial where a child plays Darth Vader. In the Greenpeace version, another group of kids dressed as Luke Skywalker and other “Star Wars” characters confront Darth junior. We find out that “Volkswagen is threatening our planet by opposing cuts to CO2 emissions. Join the rebellion.”

VW temporarily made right with the European Union after the social media buzz that came out of the Greenpeace campaign. Now VW and the entire auto industry faces much bigger questions: Is VW as evil as Darth Vader? Here are 15 points to consider for shaping your own opinion about it:

  1. Bigger than GM recalls?: The scandal at Volkswagen started by the U.S. Environmental Protection Agency (EPA) issuing a recall for inaccurate emissions reporting on its diesel cars, appears to be turning into the biggest story to hit the automotive sector since General Motor’s historic massive vehicle recall. This story will be dragging out and is likely to draw in other automakers and government regulatory agencies around the world (especially in Europe).
  2. New CEO in place: Matthias Mueller, president of Volkswagen’s Porsche brand, has been named CEO of VW. He’s replacing Martin Winterkorn, who previously had been expected to keep his job until the end of 2018. Winkerton is now the subject of a criminal probe being taken on by prosecutors in Germany. There’s been talk of an outsider coming in soon to take the reins – to address concerns over more VW executives being tainted by the scandal. Another option could be Mueller staying in place for now and overseeing an internal investigation and ouster of the management considered to be responsible for the diesel scandal. Porsche has done very well in recent years, earning close to three billion euros a year, and barely using any diesels for sales. It never used any of VW’s EA 189 engines that were said to have been manipulated to fool U.S. emissions tests.
  3. VW losing No. 1 title?: VW is now Number One in global auto sales, having taken the title from Toyota. A full 25% of the vehicles it has sold in the U.S. in recent years are diesel-powered and those diesel sales figures are much larger globally. For example, less than half a million diesel vehicles are being recalled in the U.S., while 11 million may be recalled globally. That number may grow with more Audi models being added to the recall list. The recall and controversy are likely to bring down VW sales figures. The impact has been staggering with the company’s stock price collapsing, government agencies around the world launching probes, and some potential buyers putting their purchases of VW products on hold for now.
  4. Critical importance of transparency and emissions reporting: The scandal highlights two major priorities in government policies around the world – transparency in reporting and reducing carbon emissions. It will take some time to determine how deep these problems run, but it’s already clear that VW has a major crisis to deal with. Some government officials are now calling for random roadside checks to avoid the possibility that VW and other automakers secretly developed software to play with the emissions testing process.
  5. What EPA thinks about it: With the recall order, the Obama administration claimed the German automaker covered up the truth about its “clean diesel” models sold in the U.S. The EPA issued a notice of violation to Volkswagen, and accused the company of installing software in its cars known as “defeat devices” in 4-cylinder Volkswagen and Audi diesel cars from model years 2009-2015. EPA says the device was set up to only turn on emissions control systems when the car is undergoing official emissions testing; the controls are turned off during normal driving, when vehicles pollute far more heavily than reported by the OEM, according to EPA. The U.S. Justice Department has launched a probe into allegations Volkswagen intentionally rigged emissions tests of a number of diesel-powered vehicles sold in the U.S. market. VW diesels can emit up to 40 times pollutants allowed by current regulations, which is outraging owners.
  6. What vehicles are included in recall: The recall, which won’t go into effect immediately and is awaiting detailed guidelines from EPA, affects 482,000 cars in the U.S., could eventually cost the company about $18 billion to repair, and could include a $37,500 fine per vehicle given to VW. Affected diesel models include the 2009-15 Volkswagen Jetta, 2009-15 Beetle, 2009-15 Golf, 2014-15 Passat, and 2009-15 Audi A3.
  7. The Woodward and Bernstein who uncovered the story: The scandal was discovered for the EPA through independent researchers from West Virginia University, working with the International Council on Clean Transportation (ICCT). Peter Mock, Europe managing director of ICCT and John German, a senior fellow at ICCT, contacted West Virginia University’s Center for Alternative Fuels, Engines and Emissions to test a few of the VW diesel cars. As for who may play the Haldeman and Ehrlichman of VW’s Watergate-type scandal, VW Group has suspended Audi development chief Ulrich Hackenberg, VW brand R&D boss Heinz-Jakob Neusser and Porsche development head Wolfgang Hatz, Reuters reported; and don’t forget their Nixon, as previously mentioned about the former CEO Martin Winterkorn who faces potential prosecution in Germany.
  8. This could be one piece of a larger puzzle: Automotive Digest Publisher Chuck Parker believes that this scandal will drag in other major automakers – and not just for Vader-like cover-ups. Automakers face a long list of demands from government agencies, consumers, and technology leaders (Google, Apple, etc.) to make these vehicles as clean and technology intensive as possible – with airbags, connected car systems, safety standards, emissions, accurate mpg reporting, etc. Parker thinks they would be wise to be honest and accurate about their mileage and emissions claims, and everything else in their cars – rather than being buried in a mess they didn’t need to create.
  9. Death of “clean diesel?”: As for me, I would say that as this recall scandal gets dragged into next year, the future of “clean diesel” passenger vehicles will be shaken up. When you review diesel passenger vehicle sales in the U.S., you’ll see that the recalled models listed above make up a large share of diesel sales in the U.S. It’s likely this crisis will hurt clean diesel vehicle sales. BMW and Daimler immediately issued statements saying that their diesel cars are complying with EPA rules – implying that they’re being more trustworthy than their German competitor. VW’s turbodiesel direct inject diesel engines have been at the heart of its clean diesel lineup. The company was getting credit for its claims that the latest versions of the powertrain technology are boosting mileage, improving performance, and reducing emissions.
  10. All eyes are on EPA: EPA has renewed its commitment to improve its testing and reporting methods for emissions on new vehicles sold in the U.S. The agency is “upping its game” to catch cheaters, EPA Administrator Gina McCarthy told reporters. It’s a similar situation to what EPA had been facing during 2013-14 on its mileage ratings. Ford has been forced to lower fuel-economy ratings twice, and Hyundai and Kia were also found to be overestimating gas mileage in EPA scandals. On Friday, the EPA sent a letter to vehicle manufacturers notifying them that the agency is adding to its testing additional evaluations designed to look for potential defeat devices.
  11. Sustainability image tarnished: During the past month, Volkswagen AG had been named best in class for automotive industry sustainability by the Dow Jones Sustainability Indices. The diesel emissions reporting scandal is likely to tarnish that rating. Billionaire environmentalist Richard Branson thinks that VW’s recall should be a wake-up call to invest in clean vehicle innovations instead of fossil-fuel derived technologies.
  12. True opportunity for other clean technologies: In light of Branson’s comments, I would think there is real opportunity for makers of hybrids, plug-ins, NGVs, propane-powered vehicles, hydrogen fuel cell vehicles, infrastructure suppliers, and producers of innovative alternative fuels like DME, renewable diesel, and RNG, to make the business case for investing in these technologies and fuels.
  13. Wasted federal incentives: Taxpayers have given out $51 million in green car incentives to VW through tax credits. An article in the The Los Angeles Times claims the federal government gave out $51 million in green car subsidies directed at model year 2009 Volkswagen Jetta and Jetta SportWagen TDI diesel vehicles; they qualified for a $1,300 tax credit. An estimated 39,500 buyers took advantage of the credit, which added up to $51 million in subsidies.
  14. VW experienced in scandals: About 10 years ago, VW faced another scandal. VW management was found to systematically circumvent compliance in a sex and bribes scandal that resulted in a 33-month jail term for the former head of the company’s workers council, Klaus Volkert.
  15. Angry VW owners: VW owners have been expressing outrage for what the automaker has done. One of my colleagues forwarded me a voicemail that he’d left to his VW dealer (and to all of VW corporate) about his Jetta TDI that he’d bought from them. He wants to be compensated, along with a half million other Americans owning these VW models, for the “outrageous crime you have committed against us.”

This Week’s Top 10: Volkswagen facing huge vehicle recall after EPA finds diesel cars weren’t so clean, Highlights from the Frankfurt Motor Show

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. Volkswagen diesel recallVW recall: Volkswagen was hit hard Friday by a recall order from the Obama administration, claiming the German automaker covered up the truth about its “clean diesel” models sold in the U.S. The U.S. Environmental Protection Agency (EPA) issued a notice of violation to Volkswagen, and accused the company of installing software in its cars known as “defeat devices” in 4-cylinder Volkswagen and Audi diesel cars from model years 2009-2015. EPA says the device was set up to only turn on emissions control systems when the car is undergoing official emissions testing; the controls are turned off during normal driving, when the vehicles pollute far more heavily than reported by the OEM, according to EPA. The recall, which won’t go into effect immediately and is awaiting detailed guidelines from EPA, affects about 482,000 cars in the U.S., will eventually cost the company about $18 billion to repair, and could include a $37,500 fine per vehicle. Affected diesel models include the 2009-15 Volkswagen Jetta, 2009-15 Beetle, 2009-15 Golf, 2014-15 Passat and 2009-15 Audi A3. When you review diesel passenger vehicle sales in the U.S., you’ll see that the recalled models make up a large share of sales; it’s likely this crisis will hurt clean diesel vehicle sales. BMW and Daimler have issued statements saying that their diesel cars are complying with EPA rules. Near the end of the business day yesterday, The Detroit Bureau reported that the U.S. Justice Department has launched a probe into allegations Volkswagen intentionally rigged emissions tests of a number of diesel-powered vehicles sold in the U.S. market.
  2. Frankfurt Motor Show highlights: Long before the “clean diesel” crisis started, Volkswagen decided to focus on “electrified” versions of its Volkswagen and Audi vehicles at the benchmark annual Frankfurt car show. “Every car will be electrified,” said Ulrich Hackenberg, the board member overseeing technical development at Audi, and this would include hybrids, plug-in hybrids, and battery-electric variations replacing a few conventional gasoline and diesel models. The Porsche and Bentley brands will also be rolling out battery-powered models……. BMW gained a lot of attention with comments about its i Series lineup soon seeing big announcements from the automaker. Until then, the BMW 330e will fill that space; this new model uses the eDrive plug-in technology from its i3 and i8 models. The plug-in hybrid gets 252 hp and 310 pound-feet torque from its electric motor and 2.0L four-cylinder engine. Rolls-Royce Motor Cars is looking into bringing an electric vehicle to market as tighter emissions regulations on automakers are being enforced in Europe and the U.S. Finding ranges acceptable to customers will be necessary to go forward, said Torsten Muller-Otvos, head of the BMW AG unit……. Tesla Motors is finding Germany a tough market to go beyond looking cool into turning over strong sales – only 958 of the Tesla Model S units had been sold in that country since the beginning of the year. To make its upcoming Model X more appealing in Germany and other markets, Tesla recently changed the available range up from 240 to a maximum of 250 miles per charge using the optional 90-kilowatt-hour battery pack.
  3. Drive Electric: More than 100,000 people attended events last week at the fifth annual National Drive Electric Week. More than 170 events in 165 cities in the U.S., Canada, and Hong Kong took place from Sept. 12-20. “Plug-ins are not a partisan issue any more,” said Plug In America’s executive director Joel Levin. “People just love these vehicles and the volunteers putting on these events are keen to educate people about EVs and share their excitement.” Organized by Plug In America, Sierra Club, and the Electric Auto Association, the mission has been to provide a learning experience for interested people from talking to EV owners and participating in ride and drives.
  4. Underwood wins lifetime achievement award: Energy Vision President Joanna Underwood was given a Lifetime Achievement Award by NGVAmerica during the NGV Achievement Awards last week in Denver. Underwood’s contribution to the clean fuel go back to the 1980s as she became a convincing advocate for the role natural gas can play in displacing diesel in heavy-duty buses and trucks; more recently, Underwood has been a champion for development of renewable natural gas as the lowest carbon commercially viable transportation fuel available today. It was one of 16 awards presented by NGVAmerica honoring outstanding leadership, vision and innovation in advancing natural gas as a transportation fuel.
  5. The next phase in DME: Ford Motor Co., Oberon Fuels, FVV (Forschungsvereinigung Verbrennungskraftmaschinen e. V.), and other FVV member companies, have partnered on a three-year project to research, analyze, and test the potential of dimethyl ether (DME) and oligomethyl ether (OME) fuels in passenger vehicles and heavy-duty trucks. One of the project’s goals will be also build the world’s first production passenger car powered by DME for on-road testing. Oberon Fuels will make its pilot plant available for the study. Two years ago, this plant produced the first fuel-grade DME in North America. The Volvo Group used that fuel in commercial demonstrations of DME-powered, heavy trucks.
  6. Apple moving on driverless and electric: An Apple Inc. executive met with California Dept. of Motor Vehicles (DMV) officials to discuss autonomous vehicle regulations, according documents viewed by the Guardian Code-named Project Titan, the hour-long meeting took place on August 17. In other news, Apple has chosen 2019 as the target for finalizing its electric car. The company will be tripling its 600-person team made up of dozens of experts on electric cars and autonomous driving systems; there’s no word yet on whether Apple will be manufacturing its own cars or providing technologies to at least one automaker partner to build the vehicles.
  7. The role of digital cockpits: During a conference on autonomous vehicles and connected cars, Automotive Digest did video interviews with a series of technology suppliers, including this one with Dave Anderson of NVIDIA. Driving all the displays found in tomorrow’s cars requires a powerful computer, and automakers need a solution to get to market fast with the low costs. Anderson talks about the company’s platform, NVIDIA DRIVE CX, a digital cockpit that harmonizes safety, comfort, and user experience in one platform.
  8. Extended alt-fuel range for paratransit: ROUSH CleanTech has developed an extended range fuel tank for the Ford E-450 chassis with the advantage of less fuel stops to smooth out trips for riders. With 64 usable gallons of propane autogas, the new tank holds 56% more fuel than the standard 41-usable gallon tank option. “We listened to our paratransit customers who wanted the Ford E-450 chassis, yet also needed more autogas fuel capacity,” said Todd Mouw, vice president of sales and marketing. “With this extended range fuel tank, we offer the longest driving range for this model — plus an extended warranty for those customers.” The new tank is built on Ford’s 6.8L V10 engine, the Ford E-450 with extended range fuel system comes with an extended 5-year, 100,000-mile warranty exclusively for the transit industry.
  9. How autonomous tech in EVs can lower battery costs: Plug-in electric vehicles can save up to $1,800 in battery costs, or extend driving range by 24 miles with the addition of autonomous features like self-parking, according to a new report from Lux Research. Autonomous features – including self-parking – may boost fuel efficiency by as much as 10%, when compared with human drivers. “Many buyers of electric cars, such as those who buy the expensive Tesla Model S, are willing adopters of more autonomous driving technology,” said Maryanna Saenko, Lux Research Analyst and lead author of the report titled, “Electric Car, Drive Thyself: How Autonomous Systems and Plug-in Vehicles Will Converge.”
  10. Mazda SkyActiv expects big fuel economy gain: While its claim will be carefully tested in light of the recent Volkswagen debacle, Mazda is making a bold claim. The next generation of its SkyActiv engines will increase by 30% in fuel efficiency, company president Masamichi Kogai said during an interview with UK publication Auto Express at the Frankfurt Motor Show. This should start by 2018 and will probably be the main focus of Mazda’s fuel-efficient compliance strategy. Its current SkyActiv models (including the Mazda3) have so far come out pretty well in reports.

Why autonomous vehicles was central theme at AltCar Expo – and why John Krafcik is leaving TrueCar for Google’s self-driving car project

John Krafcik at GoogleAutonomous vehicles was a central theme at AltCar Expo in Santa Monica, Calif., on Friday, during its 10th anniversary conference. USA Today’s Chris Woodyard moderated a panel called “Automated Vehicles, Uber Autonomous Driving Now.” The lunchtime keynote speaker was Tony Seba, a lecturer at Stanford University and author of a book on disruption in clean energy and transportation; Seba was the keynoter last year and was popular and controversial enough to be invited back. One of his revolutionary forecasts is that all new vehicle sales in U.S. will be electrified and autonomous by 2030.

Right after Seba, an impressive group of panelists discussed deploying autonomous vehicles. The Los Angeles County Economic Development Corporation’s (LAEDC’s) e4Mobility Alliance organized the panel, “From Research to Reality: Deploying Autonomous Vehicles.” The panel was moderated by Tom Paige of Urban Systems Laboratories and also featured comments from state Senator Ben Allen, who serves on the state’s Transportation and Housing committee, and the Select Committee on Ports and Goods Movement. Speakers included Geoff Wardle, Director of Advanced Mobility Research, Art Center College of Design; Naveen Berry, Technology Demonstration Manager, South Coast Air Quality Management District; Alan Clelland, Sr. VP & General Manager at Iteris Transportation System Division; and Aravind Kaillas, ITS Research Engineer at The Volvo Group, who commented on the commercial truck side of the topic. The e4Mobility Alliance has taken quite a lot of interest in autonomous vehicles this year, including passenger vehicles, cargo transport, neighborhood electric vehicles, and targeted applications (which could be utilized at airports, universities, corporate campuses, living facilities, etc.)

Earlier that week, TrueCar President John Krafcik shocked a few people announcing his new position heading up Google Inc.’s self-driving car project. While TrueCar’s future is in question with founder Scott Painter leaving soon, why would Krafcik choose Google over another automaker? He’d been praised for leading Hyundai to record U.S. sales, and would surely be offered an executive position with an OEM or tier 1 supplier. What’s behind the Google move?

Then there were comments made last week by Daimler CEO Dieter Zetsche to Reuters that Mercedes-Benz is thinking about starting up a business unit that would provide on-demand limousine service without a chauffeur; the company may create an extensive fleet of autonomous vehicles to reach consumers who want on-demand transportation services much more than owning a car. What’s behind this thinking?

Automotive engineers don’t think autonomous vehicles will make it to our roads in any real numbers until the 2030-to-2035 timeframe – according to a study last year by the Institute of Electrical and Electronic Engineers (IEEE). That’s at least 15 years from now. Here are a few points to consider on why autonomous, driverless cars have become the disruptive technology of the year.

  • Race to Be Leading Auto Tech Company: Google is competing with Apple and Microsoft to be the leading automotive technology partner. While Google has been testing a small fleet of its own self-driving cars in the past year, company executives have stated they don’t want to become an auto manufacturer. That same question has come up for Apple lately as the technology giant tests out autonomous and electrified vehicles. Google, Apple, and Microsoft have been investing heavily in becoming the leading supplier of mobile applications and devices, and software connecting cars to smart phones, telematics, and infotainment features. Google through Android Auto, Apple through CarPlay, and Microsoft with its Windows Embedded Automotive 7, are the latest offerings built around becoming the leading connected car technology systems company.
  • Marriage of Detroit and Silicon Valley: Krafcik will take the helm from Chris Urmson, the former head of the Google self-driving car technology. Krafcik combines engineering and marketing, which is one of the secret formulas behind success in the automotive market. He worked as a mechanical engineer at Ford Motor Co. from 1990 to 2004, where he served as chief engineer for the Expedition and Navigator SUVs. He spent 10 years with Hyundai Motor Co., with five years as the president and CEO of its U.S. division. He led the charge in boosting the automaker’s U.S. sales and market share. Google’s job offer indicates the company wants to be taken seriously by automakers as the leading technology supplier in driverless cars. Other major suppliers like Continental Automotive and Delphi are deeply engaged in testing out driverless car technologies; Google clearly wants to be seen as the leading voice out there in the marriage of Detroit and Silicon Valley.
  • Morphing Automakers: Daimler’s announcement has led to comparison to ubiquitous ridesharing startup Uber – but Daimler has already played a sizable role in the sharing economy. Its carsharing division, Car2Go, is considered by some to be even more substantial than Zipcar in leading the carsharing space. Carsharing is taking off with users and revenues at a fast pace in the past couple of years – just like Uber is seeing dramatic growth in rides. Daimler executives like Zetsche have been talking about the changing role of global automakers in recent years. Daimler, along with BMW, Ford, Toyota, Honda, GM, and Nissan, have been investing heavily in new technologies, research centers in Silicon Valley, and new business models like Car2Go. Some of that has to do with ambitious fuel economy and emissions reductions mandated in the U.S. and Europe, which is a key reason that automakers continue announcing electric vehicle new vehicle launches. There may be something even larger on the horizon. Futurists say that the identity of automakers will change dramatically in the next 15 years – from vehicle manufacturers to mobility companies. Along with environmental concerns, there’s also safety and mobility issues surrounding the “urbanization” trend – where young people are moving into cities and have less interest in owning cars.
  • Leading Advanced Technology OEM: Tesla Motors is emphasizing its leading role in self-driving car technologies through its Autopilot features available as an option with its Model S and upcoming Model X. Tesla’s Autopilot software helps the car maintain its place within a lane and its following distance, as well as manage its acceleration and braking. You can change lanes by switching on the turn indicator and the car will do the rest – moving you automatically to that lane when it’s safe to do so. Autopilot is expected to feature a 360-degree ultrasonic sonar that will monitor everything within a radius to make sure the car stays safely on the road. Every major automaker has connected car features that have been rolling out in recent years – with safety, fuel efficiency, connectivity, and convenience being emphasized. Why would an electric vehicle manufacturer jump into the self-driving car race? The future of the auto industry doesn’t boil down to one leading technology like hybrid or electric powertrains. All of the bases need to be covered for building brand identity and selling more cars. These days, OEMs are racing to be No. 1 in global sales along with being sustainable, efficient, safe, profitable, and the leader in advanced vehicle technologies.
  • “Semi-Autonomous” Vehicles: Autonomous vehicles may never become 100% driverless in the future, and “semi-autonomous” may be more accurate; the main issue being instantaneous highway disasters like a car crash where the driver needs to take over to save lives. Automakers are well on their way to offering the safest and best technologies – some of them being classic like GM rolling out cruise control features in its product lineup. Audi is testing out self-parking car systems, which should be a big hit with car shoppers. “Connected cars” is probably a more accurate search term for where automakers will be investing heavily in finances, intellectual property, and talented staff over the next 10 years – and it could be the same thing as semi-autonomous. The connected car concept is built around tapping into available data to maximize a vehicle’s performance, safety, and convenience. Some experts (including Automotive Digest Publisher Chuck Parker) expect to see limited test applications for connected, semi-autonomous systems in the next few years – such as industrial vehicles or controlled environments like universities or corporate campuses.
  • Why Uber Says it Will Go Driverless: In May 2014, Uber CEO Travis Kalanick made comments about Uber going driverless. It was a day after Google unveiled the prototype for its own driverless vehicle. That would bring down the largest cost of an Uber ride and increase profits dramatically for the company, but that lofty goal is very far away. As for today, Uber spends a lot of money on advertising to bring in more drivers and their cars. Why would Uber emphasize driverless cars? For one thing, Google Ventures is one of the largest investors in Uber (which may go public on the stock market). Perhaps Uber will play a role in Google’s heavy investment in self-driving car technologies? It could be an excellent client for Google to work with, and a technology testing platform with great potential. Kalanick has also made comments about wanting its fleet to be made up of Tesla vehicles with the Autopilot systems in place. Uber has also been participating in the Carnegie Mellon driverless car test program in the past year. The ride-sharing company’s self-driving prototype was spotted in Pittsburgh with “Uber Advanced Technologies Center” appearing on the test car. “This vehicle is part of our early research efforts regarding mapping, safety, and autonomy systems,” a company spokesperson said. Uber’s executives, based in San Francisco, seem to enjoy being part of the Silicon Valley clique with Google and Tesla. The company also hopes to one day not have to pay its drivers; as for now Uber has been enjoying having its name quoted all over the media and being the epicenter of one of the coolest, cutting edge technologies out there. They’d be foolish to ignore the viral buzz around self-driving cars.

This Week’s Top 10: California 50% petroleum reduction removed from legislative deal, Funding for EV charging stations

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. California legislature50% petroleum reduction bill dies: California did take a giant step forward in Gov. Jerry Brown’s climate change legislation on Friday, but motor vehicles were unfortunately cut out of the negotiated deal. SB 350, the Clean Energy and Reduction Act, was notable for increasing mandates on renewable energy used to power electricity; efforts to cut petroleum consumption in the state 50% by 2030 were cut out of the settlement. The bill, authored by Senate President Pro Tempore Kevin de León and Senator Mark Leno, called not only for a 50% reduction in petroleum use in cars and trucks but it also called for a 50% increase in energy efficiency in buildings and half of the state’s utility power coming from renewable energy. The Western States Petroleum Association led the charge to defeat the petroleum provision with a major campaign to block the legislation. The oil industry’s campaign showed advertisements charging the bill could lead to fuel rationing and bans on sport-utility vehicles. Automakers had expressed concern that the state already had its aggressive mandate in place for hitting zero emission vehicle (ZEV) targets and that jumping that target up to 50% petroleum reduction was far from what could be accomplished in conjunction with the federal fuel economy and greenhouse gas emissions targets.
  2. Funding available for EV charging stations: You can view presentations and hear the entire recording on “Funding & Financing Electric Vehicle Charging Stations for your Business.” Panelists talked about reducing the cost of buying and installing the equipment for workplaces and multi-unit dwellings. Speakers included Rick Teebay, of LA County Office of Sustainability and co-chair of the event sponsor, LAEDC’s e4Mobility Alliance. NRG’s Kevin Kelleher talked about the utility’s Ready for Electric Vehicle (REV) Program. NRG eVgo can provide funding up to $30,000 in electrical infrastructure upgrades for qualified California workplaces and multi-family properties; other funding programs were detailed during the presentation. Click here to fill out the form and download the webinar.
  3. Audi, Porsche, Jaguar, and Land Rover plan to roll out new plug-in models to meet demand from luxury and sports car enthusiasts – and to maybe take some business away from Tesla Motors. Audi is getting ready to roll out a battery-powered SUV that could be faster and deliver better performance than the Tesla Model X. It could come to market by early 2018. Porsche is rolling out the high-performance Mission E, a concept car the German automaker is unveiling at the Frankfurt Motor Show. The 600-horsepower Mission E will make it to 62.5 mph in under 3.5 seconds. Drivers of the Mission E will be able to go more than 310 miles per charge if they’re being a little more gentle on the throttle. Jaguar Land Rover Automotive PLC will be adding advanced, battery-based powertrain systems to its high-performance offerings such as the Jaguar F-Type and Range Rover. The British automaker is exploring several green car options to meet government mandates – including the electric models, a couple of hybrids, diesels, and lightweighting the vehicle bodies.
  4. Algenol Biotech and Protec Fuel Management have entered into an agreement to market and distribute a new type of ethanol from Algenol’s Fort Myers, Fla., commercial demonstration module. The companies say it’s the first time that ethanol made from algae will be available commercially. Protec Fuel will distribute and market the fuel for E15 and E85 applications for both retail stations and general public consumption, as well as fleet applications. The partner companies will also offer Algenol’s future 18 million gallons per year from its commercial plant, which is planned for development in Central Florida in 2016 and 2017.
  5. UPS has purchased 125 E-GEN range-extended electric delivery trucks that were produced by Workhorse Group. The trucks are scheduled to be deployed in Arizona, Texas, Nevada, Mississippi, Alabama, Georgia, and Florida during the first half of 2016. “This investment will help create and grow the market for ground-breaking alternative propulsion systems that reduce environmental impact, reduce operating costs and save fuel,” said UPS senior vice president global engineering and sustainability Mark Wallace in a release. UPS expects to see significant fuel economy equivalency gains on the trucks designed for urban routes traveling 50-to-60 miles per day.
  6. Warning issued about hacking driverless cars being too easy: A security firm is concerned that hackers will be able to play with the complex LiDAR (Light Detection and Ranging) systems that are integral for driverless cars, to fool the onboard system into a crash with merely $60 in parts. It’s happening through a small, low-power laser and a pulse generator, said Jonathan Petit of Security Innovation. It could even be replaced by a Raspberry Pi, a small computer board used in DIY projects, he said. The attacker can trick the car into thinking there are objects where there actually isn’t – potentially forcing the car to slow down, stop, or swerve. “I can take echoes of a fake car and put them at any location I want,” Petit said. “And I can do the same with a pedestrian or a wall.”
  7. Elio Motors and its three-wheeled personal transportation vehicles was named one of the “Top 10 Automotive Startups,” by the LA Auto Show’s Connected Car Expo. Elio Motors was recognized for offering a fun-to-drive, super-economical, environmentally friendly personal transportation alternative. The Elio is designed to achieve up to 84 MPG with a targeted $6,800 base price.
  8. Toyota building flying cars?: Toyota Motor Corp. has filed for a patent with the U.S. Patent and Trademark Office for a “stackable wing for an aerocar.” The wing can change shape and guide the car during flights. One configuration from Toyota shows the wings as if they were stacked atop the car roof, and another image shows a more aerodynamic shape for when it’s deployed for flight.
  9. Bosch leading CNG fuel system: A consortium of automotive suppliers and vehicle manufacturers in Germany are being led by Robert Bosch GmbH to develop a new fuel system for compressed natural gas (CNG). The concept is based on direct injection, which would make natural gas vehicles even more economical and environmentally friendly. Bosch says the new technology could deliver as much as 60% more torque at low rpm, and offer the prospect of an even more dynamic driving experience in CNG vehicles.
  10. EV sales in China jump: Electric and plug-in hybrid car sales leaped 270% to 108,654 cars in January through August of this year, the China Association of Automobile Manufacturers (CAAM) said. With incentives and targets, the Chinese government is pushing automakers to develop battery electric cars. Electric powertrains are simpler to develop, and driving a push to green cars fits President Xi Jinping’s policy goal of reducing pollution through manufacturing “new energy” vehicles, according to a Reuters article.