This Week’s Top 10: Plug-in sales up 66% from a year ago, Google carpooling takes on Uber and Lyft

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. Tesla Model SPlug-in sales surge: Tesla led August U.S. plug-in sales performance in August, taking a third of the sales with the Model S and Model X. With about 3,200 units sold, the Model S doubled its sales over August 2015. The Chevrolet Volt had another good month, up over 50% in sales over last year while the Nissan Leaf continued its sales decline. Overall sales of all-electric and plug-in hybrid electric vehicles were up 66% over a year ago, according to HybridCar.com’s Dashboard. Hybrid sales were down 14.4% from last year, with the Ford Fusion Hybrid the only hybrid model in the top 10 seeing an increase over last year. Its hybrid sales were up 23% over a year ago, and the Fusion Energi plug-in hybrid sales were up 6% over the previous month and nearly 50% over August 2015.
  2. Google takes on Uber and Lyft: Google is testing out a carpooling service in San Francisco designed to compete directly with ridesharing services offered by Uber and Lyft. Since May, Google has been helping employees of major companies carpool to work with drivers sharing their cars with riders going to and from work. The carpool service uses the Waze navigation mobile app; Waze is a subsidiary of Google. Waze users share information with each other about traffic conditions, accidents, and police patrol cars. Riders are being charged at most 54 cents a mile, which is cheaper than Uber, Lyft, and taxi rides. Google and Waze started testing out carpooling last year in Israel, where Waze was founded.
  3. BYD performance: BYD reportedly sold 53,380 plug-in vehicles in the first half of this year, with Nissan coming in at second with 34,362 and Tesla following closely behind with 33,620. Chinese automaker BYD reported doubling its PEV sales in the first half of this year, and seeing profits going up 400% in the first half of this year compared to the same period the year before. There have been reports that the company is making plans to bring one or more models to the US market in the not too distant future.
  4. Daimler rolling out 6 to 9 new EV models: Daimler is said to be designing six, and as many as nine, electric cars to better compete in the luxury EV space with Tesla and Audi. A growing political backlash from the Volkswagen “dirty diesel” scandal has driven Daimler’s strategy, along with recent advancements in battery technology. Daimler is scheduled to unveil a new electric car model at the Paris motor show in late September. Will it be an SUV or a sedan?
  5. California settlement: Volkswagen will pay $86 million to California in the diesel emissions scandal, which is where the largest share of the almost 600,000 cars on U.S. roads rigged to cheat tests were sold. The settlement will help pay for research grants, consumer protection programs, and the cost of the investigation by the California Attorney General’s office. The deal also prohibits VW and Porsche from advertising, selling, leasing or distributing in California any vehicles containing the so-called defeat devices used to cheat pollution tests. The automaker won final approval from the federal judge overseeing hundreds of lawsuits in the U.S.
  6. Mitsubishi scandal widens: Mitsubishi’s headquarters and Nagoya plant were raided by government officials last week, further complicating the Japanese automaker’s attempts to resolve the mileage manipulation scandal that increased the number of vehicles involved by eight. Mitsubishi has said it used unapproved methods to calculate mileage for 25 years. “We want to thoroughly investigate the circumstances that led to this situation,” said Japan’s Transport Minister Keiichi Ishii.
  7. Tesla rules Hong Kong: German automakers would like the city of Hong Kong to allow plug-in hybrid electric vehicles in its EV sales numbers, and to change incentives that only all-electric vehicles get to have. For now, only all-electric vehicles are counted, which has helped Tesla Motors gain 80 percent share of that market. Plug-in hybrids aren’t allowed to tap into the 100% waiver on first-registration taxes, which all-electric vehicles are granted. Those numbers can be pretty steep in the market, allowing for a price advantage all-electric vehicles get to enjoy.
  8. Electrifying trucks: Electrification of medium- and heavy-duty trucks can be one of the best moves fleets and transportation companies can make for cost reduction, even during this time of stable gasoline and diesel prices. Roger Bedell, former CEO and founder of Opbrid Fast Charge, a company that provides high-power bus-charging stations, did a cost analysis for Trucks.com. “The key is to look for situations in which fuel usage is the highest — for example, running big rigs at highway speeds for long distances. Although giant trucks are far from the easiest vehicles to electrify, they have the most potential profit possibilities for electrification,” according to Bedell.
  9. How to compete with Tesla: German luxury carmakers have been struggling to deal with a big question Tesla Motors has raised – how to make high performance luxury electric cars while also producing a profit. They’re in a different organizational culture lacking the kind of internal management support needed to be strong in the market. Investors have been allowing Tesla to lose money. “Part of it is a cultural issue,” said a Mercedes-Benz official who asked to remain anonymous. “You can’t compare a 130-year-old company shaped by German engineering ingenuity with a startup from Silicon Valley. It’s a different approach.”
  10. California HOV stickers: California took no action last week on Assembly Bill 1964, which would extend the driving perk beyond 2019 or allow more green stickers above the currently capped 85,000 limit. Legislators don’t know if the bill will be reintroduced in the next legislative session. There are now 6,500 drivers on a waiting list for the green decals. Plug In America has been opposing AB 1964, that supported plug-in hybrid green stickers but limited purchase incentives on battery electric vehicles.

This Week’s Top 10: Tesla drops in Consumer Reports reliability ratings, VW scandal brings in outside executives

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. Tesla Model SModel S ratings drop: The honeymoon with Consumer Reports is over for Tesla Motors, and CEO Elon Musk says the negative reliability ratings were off the mark. The magazine received feedback from about 1,400 Model S owners as part of its Annual Reliability Survey. The results showed a worse-than-average overall problem rate, lower than last year’s average rating. The new reliability study findings followed a glowing review in August from Consumer Reports, where the Tesla Model S P85D was given 103 on a 100-point system, the highest score ever. That didn’t include reliability ratings; the concerns owners expressed include climate control, steering, and suspension systems all appearing to have more problems than they did during the 2014 model year. Musk wrote it off in his October 21 Twitter post: “Consumer Reports reliability survey includes a lot of early production cars. Already addressed in new cars.”
  2. More about VW: Volkswagen has hired Thomas Sedran, former head of GM’s Opel division, to run its group strategy. Sedran is the second outsider recruited to join team as the German automaker loses its No. 1 in global sales ranking and deals with its diesel emissions scandal. Christine Hohmann-Dennhardt, a former judge from Germany’s top court, has been brought into VW to head its legal and compliance division. Differences in how European regulatory agencies view and measure emissions was a top issue over the past week. Europe has been considered behind the U.S., and some of that has to do with their testing model based on carbon emissions buts giving less attention to nitrogen-oxide (NOx) emissions, which is a key measure in the U.S. for air pollution.
  3. Growth forecast for biogas: Biogas, which can also be classified as renewable natural gas and biomethane, is starting to show signs of extending beyond academic test studies into commercial-scale motor fuel. A new Navigant Research report focuses on four feedstock sources in the global market: waste, industrial, agricultural, and sewage. Capacity and revenue, segmented by feedstock source, end use (electricity, renewable natural gas injection, and transport), region, and selected country, through 2024 are examined in the study. The study forecasts that the global cumulative revenue from biogas production should reach $25.8 billion by 2024. Growth is expected to come from gaining regulatory support and government incentives, and playing a role in meeting expanding renewable energy targets.
  4. Testing out carsharing: Automakers and carsharing companies are sponsoring promotional test projects in urban centers. General Motors’ new “Let’s Drive NYC” offering is reaching out to young urban professionals in New York City. GM is working with a New York real estate firm where residents can purchase access to a fleet of shared SUVs parked in their garage. Daimler has tested out a shared mobility partnership with a suburban home developer in Southern California. Carsharing giant Zipcar has worked with apartment giant Equity Residential, which owns upwards of 110,000 rental units, in cities including New York, Boston, Seattle, and Washington, D.C.
  5. China growing EV market: China is becoming a booming market to produce and sell electric vehicles in the consumer, fleet, and transit markets. Sales have been down in the past year, but the national government is committed to seeing growth in the market through incentives. Tesla Motors has been pleased to negotiate with officials on Chinese production, and will begin assembling cars in that country in two years, CEO Elon Musk said. UQM Technologies has received a purchase order for its PowerPhase electric propulsion systems for ITL Efficiency, a Beijing-based subsidiary of China’s Eastlake New Energy. Revenue may be in excess of $400 million over a ten-year period, UQM said, for shuttle and transit buses and medium-duty trucks. ZAP and Jonway Auto have increased factory production capacity and running operations at seven days a week, with production of around 50 EV minivans per day in order to meet pressing backlog orders from Dong Feng Motor Corp. in the Chinese market.
  6. Back to the Future DeLorean: For some fans of advanced vehicle technologies, the fast time-traveling DeLorean powered by garbage as engine fuel in the “Back to the Future” trilogy stands out in their memories. Toyota participated in 30th anniversary of the first film in the series with a commemorative video with the film’s stars, Michael J. Fox and Christopher Lloyd. It also serves as a kickoff to the U.S. debut of the 2016 Toyota Mirai hydrogen fuel-cell vehicle.
  7. Charging station connectivity: Growing electric vehicle charging station networks in the U.S. and abroad will require a lot more than setting up stations and supplying them with power. Communications equipment, payment systems, and consumption data collection is needed for public charging stations to increase their presence and functionality. In a new Navigant Research market forecast, the consulting firm projects that global communications equipment and services associated with EV charging networks is expected to generate revenue of just over $62.8 million in 2015 and grow to more than $709.7 million in 2024.
  8. Highlights from UCLA Luskin Center’s Impact report: Factors that influence plug-in electric vehicles sales in California; Overcoming electric vehicle adoption barriers for apartment and condominium residents; Assessing the state of the state’s PEV policies; and Paving the way for complete, living streets that create vibrant, productive, and sustainable communities.
  9. Honda’s tech revolution: Honda is about to launch a new round of powertrain technologies with the goal of boosting fuel economy and performance and reinforcing the company’s reputation for innovation. The new technologies range from a new-generation plug-in hybrid powertrain that gets 40 miles of range on its battery; a 10-speed automatic transmission; a lean-combustion cycle that gains ultrahigh thermal efficiency; and unveiling the production version of its hydrogen fuel-cell vehicle at the 2015 Tokyo Motor Show. That fuel-cell vehicle’s platform will also be used in the 2018 plug-in hybrid.
  10. Pre-orders of Mirai: About 2,000 people have placed orders for the Toyota Mirai hydrogen fuel cell vehicle that just arrived for sale in the U.S. in select California markets. Only about half of those orders will be fulfilled in the 2016 model year, Toyota says.

This Week’s Top 10: Model S pulling ahead of Leaf in EV sales, Autonomous vehicles take over SAE World Congress

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. Tesla store in Santa MonicaEV sales in April: The Tesla Model S secured its top spot in front of the Nissan Leaf for the month of April – 1,900 for the Model S versus 1,553 for the Leaf (according to HybridCars.com and Baum & Associates). For 2015, the Model S is leading US the electric vehicle (EV) segment – with 6,800 units sold compared to No. 2 Leaf at 5,638 sold this year. The Leaf is still leading the pack as the highest-selling EV ever – nearing almost 78,000 in the US and expected to cross the 200,000 mark in global sales sometime this summer. The Chevrolet Volt saw 905 units in April, its highest monthly total since last December. There were a few surprises in the top 10 in April EV sales – one of them being the best-selling month for the Chevrolet Spark EV at 920 units sold. The Ford C-Max Energi also saw a big increase on the list, and the BMW i3 saw its first sales drop since entering the US market.
  2. Autonomous vehicles take over SAE World Congress: Automakers are running the gamut on self-driving cars – similar to alternative fuel vehicles. No one technology is winning but several are being considered. “There are many schools of thought and many concepts being tried,” said Cadillac spokesman David Caldwell, during the annual SAE World Congress in Detroit. German automakers have been taking the lead – including BMW unveiling the i3 hybrid version equipped with Traffic Jam Assistant two years ago, which allows the vehicle to accelerate, brake and steer at speeds up to 25 mph. Keynote speaker Ray Kurzweil, director of engineering at Google and a recognized futurist, says that the days are approaching when an inexpensive computer outperforms a human at a task such as driving; reasons for self-driving cars moving forward include their role in drastically reducing road fatalities and freeing people up to do something useful during their dreaded commuter trips.
  3. Demand strong for CNG/propane F-150: Ford Motor Co. says the 2016 F-150 pickup will be available with a 5.0-liter V8 engine that can run on compressed natural gas or propane. Ford says demand for these trucks has been steadily increasing for the past five years. Ford sold a record 16,821 commercial/fleet vehicles with CNG/propane gaseous engine-prep packages in 2014, and the automaker thinks that 2015 will be even stronger. Customers have been asking for more trucks and vans that run on these alternative fuels because it lowers their fleet operating costs and reduces greenhouse gas emissions.
  4. Vouchers in Chicago: VIA Motors has gained an exclusive voucher program for Chicago area fleets and business owners. VIA says it will dramatically reduce the initial costs of owning a VIA Motors extended range pickup truck, extended range electric passenger van, or extended range electric cargo van. The extended range pickup is now eligible for a $41,200 voucher, the passenger van is eligible for a $39,460 voucher and the cargo van is eligible $42,892.
  5. Price coming down for Volt: The 2016 Chevrolet Volt will be priced from $33,995 when it goes on sale sometime this fall; the price, which includes delivery, is $1,175 lower than that of the outgoing 2015 Volt. The 2016 Volt also offers appealing features – extended range, out to 50 miles on the battery and a fifth “seating position” in the car. That will put the Volt more in line with average transaction prices of light vehicles sold in the US.
  6. Sources for utility power changing: The U.S. Energy Information Administration (EIA) expects that 91% of a forecasted 20 gigawatts (GW) in new generating capacity will come from wind, solar, and natural gas. By the end of 2015, EIA forecasts that 9.3 GW of new wind generating capacity, 6.3 GW of natural gas, and 2.2 GW of solar. Coal’s share of the electricity-generating load will continue to decrease.
  7. Toyota EVs in China: While Toyota has been shifting away from electric vehicles (EVs) in markets such as the US in favor of hydrogen fuel cell vehicles, the Chinese government would like to see a different approach adopted. China wants to see automakers roll out more EVs to meet its “new energy” targets. In joint ventures with Chinese partners Guangzhou Automobile Group and FAW Group, Toyota will introduce the Leahead and Ranz all-electric brands this year in that market. It’s probably for show to please the Chinese government, analysts say.
  8. Hybrid and EV commercial vehicles: Navigant Research predicts that global sales of electric drive and electric-assisted commercial vehicles will grow from less than 16,000 vehicles in 2014 to nearly 160,000 in 2013. The size and weight of battery packs in electric vehicles can limit usability for several fleets, but their products choices are becoming more versatile in the next few years for trucks, vans, and buses. Vehicles that qualify for these Navigant Research study categories fall under a broad definition. That includes hybrid vehicles used in commercial applications (medium-to-heavy duty); and niche applications for plug-in hybrid and battery electric vehicles that can use onboard electrical energy to replace idling diesel engines or provide temporary power to buildings or tools at remote sites.
  9. Wrightspeed launches turbine generator: Wrightspeed Inc., a manufacturer of range-extended electric vehicle powertrains, has launched the Fulcrum, a turbine generator and electric vehicle range extender. Utilizing a proprietary set of advancements, the Fulcrum’s design could represent a breakthrough that challenges today’s piston engines and existing turbine generators. Wrightspeed is hopeful that the 80 kilowatt Fulcrum turbine generator sets a new standard as the company works to evolve electric vehicle propulsion. Located in Silicon Valley, Wrightspeed was founded by Ian Wright, a co-founder of Tesla Motors back in its startup days.
  10. Tesla enters CPO market: Tesla Motors has launched a certified pre-owned (CPO) website page, but it might be a bit early in the process to see much inventory there. During a recent media conference call, Kelley Blue Book’s Alec Gutierrez said that with current monthly sales of the Model S in the 1,500 to 1,700 range, it’s still early in the remarketing process. It does make sense to get started now, though, he said. “They want to have enough certified pre-owned inventory out there to help give consumers something in between the Model 3, whenever that arrives, and the full blown Model S or Model X, when that arrives,” Gutierrez said. “So to me, it’s a good play, but a long-term strategy for sure.”

Tesla-Orama!: The latest on the luxury electric sports carmaker

  • Tesla storeCEO Elon Musk posted a comment on the Tesla Motors blog that the Model S drive unit warranty has been increased to match that of the battery pack. The 85 kWh model now has an eight year, infinite mile warranty on both the battery pack and drive unit. There’s no limit on the number of owners during that period.
  • Tesla Motors is now offering a replacement battery for the 2008-2012 Tesla Roadster, its first production electric cars. Musk said that the Roadsters range will be increasing from its original range (rated at 245 miles by the US Environmental Protection Agency) to about 400 miles. The company hasn’t offered prices, schedules, and any other information yet.
  • While staff at Consumer Reports initially fell in love while driving the Model S, the honeymoon has waned. One driver had the center screen go blank at a little over 12,000 miles, and Tesla had to repair it. Other quirks needed to be ironed out and it followed a report by Edmunds.com; the Edmunds team recently reported problems with its Model S test drives that included replacing the main battery pack after incidents in which the car stalled; a frozen touchscreen; a creaky steering wheel; and difficulties opening the car’s sunroof.
  • California may exempt Tesla Motors from some of its toughest environmental regulations as part of an incentive package to get the “Gigafactory” set up in the state. Tesla may get waivers on some of California’s legendary and controversial California Environmental Quality Act (CEQA), which is alarming to some environmentalists. The pitch by the governor’s office also includes tax breaks that could be worth up to $500 million, or about 10% of the project’s total costs. California is working hard to compete with Nevada, Arizona, New Mexico, and Texas to bring the Gigafactory within its borders.
  • Saleen Automotive is best known for making customized American muscle cars from the Ford Mustang, Chevrolet Camaro, and Dodge Challenger. The company just unveiled its first electric car, the 4Sixteen, based on the Tesla Model S. Founder and CEO, Steve Saleen, says it has him sold on electric cars.
  • Tesla stock closed at $259.94 yesterday. The price range has gone from $116.10 to a high point of $267.26 during the past year. The Consumer Reports coverage doesn’t seem to have hurt stock prices.