This Week’s Top 10: VW starts up cash for clunkers program, GM and Honda building fuel cell stacks

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. VW settlement: Volkswagen will be managing a program similar to the federal government’s cash-for-clunkers program that started in 2009. The German automaker will be buying back or fixing as many as 562,000 diesel vehicles in the U.S. into 2019 as part of its diesel emissions cheating settlement. While the federal government gave out about $3 billion subsidizing gas-guzzling vehicles for fuel efficient vehicles, VW may spend about $10 billion on new-vehicle purchases to replace diesels with excessive emissions. VW has hired about 1,300 contractors to process its diesel program-related paperwork and staff call centers, shortening the average hold time to less than five minutes, said Hinrich Woebcken, who became VW of America’s CEO last April. More than 1,000 cars have been fixed and returned to the used-car market, he said.
  2. GM and Honda fuel cell plant:  Hydrogen fuel cell vehicle alliances are continuing to move forward, with General Motors and Honda announcing a plan to invest $85 million to build hydrogen fuel cell stacks at a factory in Michigan. The joint venture, Fuel Cell System Manufacturing, will begin producing the fuel cell systems around 2020 at GM’s Brownstown Township, Mich., plant south of Detroit. GM has been using that plant to produce battery packs for its hybrid and electric vehicles. The companies say that at least 100 new jobs will be created to make the hydrogen fuel cell stacks. In 2013, GM and Honda created a long-term, definitive master agreement to co-develop next-generation fuel cell system and hydrogen storage technologies. Sharing patented information has been part of the relationship with the companies collectively filing more than 1,200 fuel cell patents between 2002 and 2012. Earlier this month, Toyota, BMW, Daimler, Honda, and Hyundai, announced that they’re joining up with several other companies to invest a combined $10.7 billion in hydrogen-related products within five years. Thirteen automakers, and energy and industrial companies, are forming a hydrogen council to support hydrogen fueling and FCEVs; and to provide another channel beyond battery power to hit the zero emission vehicle mark.
  3. Model S No. 1:  The Tesla Model S was the world’s top selling plug-in electrified vehicle for the second year in a row. Tesla hasn’t confirmed the number but it’s estimated to be at 50,931 units sold last year. The Nissan Leaf still has the highest sales volume with 61,507 units sold in 2014. In 2016, the Leaf came in at 49,226 and second place for the second consecutive year. Chinese automaker BYD, which was the top global selling maker of PEVs last year, had three of the top 10 selling electric cars. The crossover SUV BYD Tang plug-in hybrid came in at No. 3; the Qin plug-in hybrid finished at No. 8; and the e6 sedan, China’s top selling all-electric car, came in at No. 9.
  4. Daimler and Uber partnering on self-driving vehicles:  Daimler AG has made an agreement with Uber Technologies to include the German automaker’s self-driving vehicles in Uber’s ride-hailing network in the “coming years.” Details haven’t been released on the agreement, but it does indicate Uber’s willingness to work with other partners beyond its Volvo alliance. The agreement doesn’t include plans to team up on jointly developing technology for autonomous vehicles, according to a Daimler spokesman. In other news, Uber CEO Travis Kalanick has been under attack on the internet for allowing Uber drivers to access JFK Airport in New York as taxi drivers refused to do business there; boycotting the airport was part of a protest by the taxi industry against the Trump administration’s recent decision to close the nation’s borders to refugees and people from predominantly Muslim countries. Uber issued a statement in support of Uber drivers who are citizens of Iran, Iraq, Libya, Somalia, Sudan, Syria, or Yemen and live in the US but have left the country, and won’t able to return for 90 days. “This means they won’t be able to earn money and support their families during this period,” he said. The statement also announced creation of a $3 million legal defense fund to help drivers with immigration and translation services. Lyft has also been pulled into the scandal and has agreed to donate $1 million over the next four years to the ACLU to defend the U.S. constitution.
  5. Accessing EVgo network:  Nissan and BMW are working with EVgo to increase public access to DC Fast charging stations across the U.S. That will come through access to an additional 174 locations in 33 states now available to all electric vehicle owners in those markets, and over 50 more planned to be installed in 2017, supported by the partnership. EVgo’s fast charging network now totals 668 dual-port DC Fast charging stations installed and available to all EV drivers across the U.S., with access to new chargers continually being added.
  6. Green Car Award winners named:  Three winners of Green Car Journal’s Green Car Awards were announced at a Washington Auto Show press conference. Named 2017 Connected Green Car of the Year is the Mercedes-Benz C350e, with the 2017 Green SUV of the Year awarded to the BMW X5 xDrive40e, and the 2017 Luxury Green Car of the Year going to Acura’s new NSX. The Mercedes-Benz C350e delivers all the luxury and driving enjoyment expected of the automaker’s popular C Class with the additional benefit of efficient plug-in hybrid power. BMW’s X5 xDrive40e iPerformance features appointments appreciated by BMW drivers combined with efficient plug-in hybrid power. The Acura NSX is powered by a 500 horsepower Sport Hybrid SH-AWD powertrain integrating a 3.5-liter mid-ship V-6 and three electric motors. It can go 0 to 60 mph in 2.9 seconds while still delivering over 30 percent better city fuel efficiency than the model’s previous generation.
  7. Ford in Super Bowl ad:  Ford Motor Co. will be running a 90-second commercial highlighting its mobility solutions on Super Bowl Sunday, tying into the opening of its FordHub center in New York showcasing these technologies and services. The Super Bowl ad highlights Ford’s advancements in ride sharing, electric vehicles, bike sharing, and self-driving cars. FordHub is a 2,900-sqare-foot hands-on experiential center located at the Westfield World Trade Center in New York City. Visitors will be able to try out exhibits and learn more about Ford’s vision as an evolving mobility company offering transportation solutions instead of just making vehicles.
  8. Dealers and EVs:  Audi of America President Scott Keogh spoke last week at the J.D. Power Automotive Summit on how Audi and other dealers can break through in selling and servicing plug-in vehicles. Dealers have been known to divert car shoppers away from EVs and over to higher profit margin traditional vehicles. Home-charging station installation and other services needed by EVs could be excellent service opportunities for dealers, he said. The German brand will be launching three new battery electric vehicles in the U.S. by 2020; it will be part of parent company Volkswagen’s campaign to launch 30 BEVs by 2025 in the wake of its diesel emissions scandal. Keogh said that Audi will need its dealers supporting the effort for the electrification campaign to succeed.
  9. SMART Center Gains $45 in funding:  Ohio Governor John Kasich last week announced that the State of Ohio and the Ohio State University are funding the $45 million Phase 1 expansion of the Transportation Research Center’s (TRC) all-new 540-acre SMART (Smart Mobility Advanced Research and Test) Center – a state-of-the-art hub for automated and autonomous testing, to be built within the 4,500 acres of the nation’s largest independent automotive proving grounds. TRC has been testing different types of vehicles – cars, trucks, buses, ATVs, military vehicles, specialty vehicles – and components on its 4,500-acre facility in East Liberty, Ohio for more than 40 years, including testing automated and autonomous vehicles over the last two decades. Phase 1 of the expansion will include a flexible platform and infrastructure; the industry’s largest high-speed intersection; the industry’s longest and most flexible test platform (a space the width of more than 50 highway lanes and the length of 10 football fields end-to-end); an urban network of intersections, roundabouts, traffic signals; and a rural network including wooded roads, neighborhood network and a SMART Center support building.
  10. Car2Go adds to its fleet:  Car2go will be adding thousands of 2017 model year Mercedes-Benz CLA and GLA four-door, five passenger vehicles to its fleet. The carsharing company anticipates that Mercedes-Benz vehicles will comprise the majority of its North American fleet by the end of 2017. The compay says this comes right after car2go’s recent upgrades to its member experience with the rollout of thousands of new, improved, car2go smart fortwo vehicles to its U.S. and Canadian network. “At Mercedes-Benz we see the four key pillars for future mobility as connectivity, autonomous driving, carsharing, and electrification,” said Dieter Zetsche, CEO of owner company Daimler AG. “Today we take another step toward that future by adding the new Mercedes-Benz CLA and GLA to Car2go’s North American fleet.”

Volkswagen prepares for its toughest year ever as the emissions reporting scandal continues

VW former CEOVolkswagen AG is facing a catastrophe that will probably take years to recover from. The outcomes of government agency rulings, recalls, and class-action lawsuits will tap into VW’s cash reserves – and will dictate its future strategic planning. It’s the “perfect storm” as automakers compete to dominate global markets; compliance with national emissions standards, for the most part, is being enforced; OEMs face unattainable expectations on advanced technology innovations; and consumers expect major corporations to live with a fairly high level of accountability and transparency.

Opinions shared by VW vehicle owners, fleet operators, regulators, political leaders, and automotive analysts will also play its part in the outcome. As for now, here’s the latest significant developments on VW’s challenges:

  • EVs and charging could be a solution: As part of its ongoing talks with VW on fixing the diesel vehicle reporting problem, the U.S. Environmental Protection Agency has asked the German automaker to produce electric vehicles in the U.S. as a way of making up for its emission testing and reporting violations. This news came from German newspaper Welt am Sonntag, which reported that the EPA was asking VW to produce electric vehicles at its plant in Chattanooga, Tenn. Another layer to the settlement would be VW helping build a network of charging stations for electric vehicles in the U.S. It wasn’t clear whether this resolution would come from current VW models or new ones that would be introduced to the market. The automaker and EPA declined to comment. “Talks with the EPA are ongoing and we are not commenting on the contents and state of the negotiations,” a VW spokesman said.
  • Facing EPA and CARB scrutiny: Earlier this month, VW submitted its draft recall plan for about 85,000 VW, Audi and Porsche diesel vehicles to the U.S. Environmental Protection Agency and California Air Resources Board. CARB rejected VW’s plan in January to fix these vehicles. CARB said the plan did not meet its standards and called it “unacceptable.” On Feb. 3, CARB said that it had up to 20 business days to test if the revised plan actually reduces emissions; and the EPA will probably back CARB’s decision. If the new plan is accepted, VW could begin a recall and end the stopped sale of vehicles with these engines.
  • “Denial” and “obfuscation” continue to be commonly used words to describe VW’s state. Former Volkswagen Group CEO Martin Winterkorn (as seen in the photo above) may take more of the blame, as has been expected. Media has reported that Winterkorn was notified as early as May 2014 about the inevitable investigation U.S. authorities would put in motion on the diesel car emissions-test defeat device placed in several VW, Audi, and Porsche models. Volkswagen internal memos and emails suggest that Winterkorn and other company executives pursued a strategy of delay and obfuscation. The automaker would not be able to provide an explanation for elevated nitrogen oxide emissions and deceptive emissions reporting data. Winkerton resigned on Sept. 23, 2015, and said at that time that he didn’t find out about the defeat device until right before the company’s response to EPA’s recall announcement.
  • Class-action lawsuits: Dozens of class-action lawsuits filed nationwide on behalf of hundreds of thousands of angry Volkswagen owners, dealers, and other parties have been centralized in San Francisco federal court. Attorneys have been in communications on the best strategy to hold VW accountable in a case with billions of dollars at stake. It’s considered to be in the process of becoming one of the most massive legal assaults in U.S. history. All of the cases against VW have been assigned by a special national panel to San Francisco U.S. District Judge Charles Breyer.
  • Daimler is facing its own accusation that it utilized a shut-off device in emissions testing. The German automaker said that a U.S. class action lawsuit alleging that its Mercedes-Benz diesel cars use a device that turns off pollution controls is inaccurate. Consumer-rights law firm Hagens Berman Sobol Shapiro filed a lawsuit in a federal court in New Jersey alleging that Mercedes has placed a shut-off device in its BlueTec “clean diesel” cars that causes the vehicles to violate U.S. emissions standards when running at cooler temperatures. Daimler spokesman Joerg Howe said the company is complying with regulatory frameworks and all its vehicle are certified according to all the laws that it’s required to comply with. Daimler may be going in a similar direction as VW in cleaning up its image as a responsible, sustainable company. VW may need to manufacture more EVs in the U.S. as part of its EPA settlement. Daimler just decided that its executives must drive a battery electric vehicle or plug-in hybrid vehicle at the Stuttgart, Germany headquarters. These will be their company cars and it’s thought to be part of Daimler’s strategy to give its management more experience with plug-in electric vehicles.
  • Former General Motors vice chair Bob Lutz says that years ago he and his colleagues had been mystified at VW’s ability to build diesel cars that could pass stringent emissions tests. When Lutz served as GM’s “car czar” from 2001 to 2009, he had GM engineers analyze Volkswagen’s TDI models to see how the German automaker managed to meet U.S. emissions standards. Lutz wanted GM to sell more diesel cars in the U.S. GM staff couldn’t figure out how VW was able to meet the particularly strict standards in California, Lutz said. GM and its competitors wanted to build fuel efficient cars with strong engine performance; but they left diesel passenger cars to VW to take the lead. Lutz has always supported plug-in hybrid electric vehicles (such as the Chevrolet Volt and Via Motors vehicles).
  • Global sales: VW had been aiming to retain its number one spot in global auto sales, but that took a sharp turn after the news broke out in September. There’s been a lot of media coverage recently with a humorous twist. Car sales may be down, but wiener sales have gone up. Last year, VW’s car deliveries fell about 5% from 2014 to 5.8 million units; during that year its currywurst wiener output climbed 14% to 7.2 million sausages. Beyond that story, here’s the numbers on VW’s sales performance: In January, according to figures released by the European Automobile Manufacturers Association, overall new car registrations in European Union nations rose 6.2% while registrations of VW-brand vehicles fell 3.8%. VW brand’s market share in the EU fell 1.2 points year over year, to 11.7%. VW still has the commanding lead in the EU and its Audi brand did well, increasing 13.7% in January. Its sales fell 7% in the U.S. in January after the automaker had to halt sales of several models over the scandal. The automaker’s global sales rose 3.7% in January, as it still holds a strong position in a few overseas markets, especially China. The automaker sold 847,000 vehicles worldwide in January, up from 817,000 in the same month a year earlier.
  • Diesel car sales: VW and Audi diesel car models had been dominating diesel passenger car sales in the U.S., but that’s taken a downward turn since September. In January, automakers sold fewer than 225 diesel cars compared to somewhere between 4,800 and 9,500 a month through the first eight months of 2015, according to WardsAuto.com. Diesel-engine pickups are still doing pretty well (which GM and Chrysler had been counting on). Automakers sold 21,999 diesel light-trucks in January.
  • Taking the heat in South Korea: South Korean government prosecutors raided and searched VW’s Seoul headquarters and other South Korean offices. Computer hard drives, emails exchanged with headquarters, emissions verification, and vehicle certification information were confiscated by investigators during the search. The homes of VW executives in charge of product quality control were also raided. “We have made (it) clear that we will fully cooperate with the investigation and our position remains unchanged,” a Volkswagen spokesman told the AFP news agency.
  • VW has indefinitely postponed its fourth-quarter and full-year 2015 earnings reports as it scrambles to adjust its financial reporting to include the spiraling costs of the scandal. Some analysts are speculating that CEO Matthias Mueller is working behind the scenes to get to a settlement with the U.S. government that VW can charge against its 2015 earnings. The idea is that these negotiations could help get the company past the scandal more quickly – and it could help speed its efforts to recover its reputation with consumers around the world. That’s a very tall order for VW to face.

This Week’s Top 10: VW recall list expands, Fiat Chrysler entering hybrid market

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 list expands: The U.S. Environmental Protection Agency has expanded the list of 3.0-liter TDI diesel engines that have illegal emissions software – this time adding several Audi models, one Porsche diesel model, and another VW. VW’s corporate headquarters has been fighting the new EPA decision, but has issued a stop-sale order to its dealers on the newly named models. The latest list includes: Audi A6 TDI: 2014-2016; Audi A7 TDI: 2014-2016; Audi A8 TDI: 2014-2016; Audi Q5 TDI: 2014-2016; Audi Q7 TDI: 2013-2016; Porsche Cayenne Diesel: 2014-2016; and Volkswagen Touareg TDI: 2013-2016. These include both new and certified pre-owned versions of these cars. In other news, several Volkswagen engineers have admitted manipulating carbon dioxide emissions data because goals set by former CEO Martin Winterkorn were difficult to achieve, a German media outlet reported. And to appease VW owners, Volkswagen of America will offer $500 to owners of 2.0-liter diesel vehicles with illegal emissions test-rigging software.
  2. First Chrysler hybrid: A hybrid version of the redesigned Chrysler Town & Country will be part of the minivan’s launch at the Detroit Auto Show. It will be the first step in converting “most of the fleet,” adding a hybrid version throughout the Fiat Chrysler Automobiles vehicle lineup in the 2020-to-2025 time frame, FCA CEO Sergio Marchionne said during a conference call. It will be motivated by meeting federal Corporate Average Fuel Economy (CAFE) standards of reaching a fleet average of 54.5 mpg (equivalent to about 42 mpg on the window sticker) by 2025. It may also have something to do with FCA backing off adding new diesel models to its lineup in the wake of the VW emissions scandal. For several years, Chrysler had been experimenting with plug-in hybrid test models; it wouldn’t be surprising to learn that some of the news hybrid models will also have plug-in versions.
  3. Tesla 3Q report: Tesla Motors reported total revenue of $937 million – above Wall Street expectations, but a drop from second-quarter revenue of $955 million and a rise from third-quarter revenue of $852 million during 2014. The company reported a loss of $230 million, or $1.78 per share. Stock closed at $208.35 but surged to as high as $231 per share in after-market action. Tesla had $392 million in capital outlay, largely the result of factory expansion to accommodate the new Model X production line in Fremont, Calif., and investment in its Gigafactory battery factory near Sparks, Nev. The company also reported $39 million in sales of government-awarded zero-emissions vehicle credits, and $33 million in sales of pre-owned cars. The company expects to manufacture “several hundred” of its Model X SUVs by the end of the year.
  4. Faraday sets up shop: A luxury electric carmaker has come to California, setting up a corporate office with 400 employees. Housed in Nissan’s former U.S. sales office in Gardena, Calif., Faraday is planning on launching its first electric vehicle in 2017 and is looking for factory locations in California, Georgia, Louisiana, and Nevada. Incorporation papers filed with the California secretary of state’s office links Faraday to a Chinese media company operated by Jia Yueting, an entrepreneur who founded Leshi Internet Information & Technology. Jia may have net worth of $7 billion; he recently launched a line of smartphones and took a 70% investment stake in Yidao Yongche, an Uber-like car service in China. Jia has made comments that he plans on developing a car that could compete with Tesla Motors. Faraday may be investing $1 billion in its manufacturing facility. Chaoying Deng, a woman who runs a Leshi affiliate in the U.S., is listed in the filing as Faraday’s chief executive. Nick Sampson, who headed vehicle and chassis engineering for the Tesla Model S sport sedan, is now serving as senior vice president at Faraday. Richard Kim is head of design, and had provided those services to BMW, Porsche, and Audi.
  5. Toyota’s artificial intelligence arm: Toyota Motor Corp. will be investing about $1 billion in a U.S.-based r&d company, Toyota Research Institute Inc., to develop artificial intelligence technologies for future vehicles. Gill Pratt, Toyota’s technical adviser and a former Pentagon robotics expert, will be the CEO of the new enterprise. TRI will be based in Silicon Valley near Stanford University, and the office will open in January. Another office will be set up near the Massachusetts Institute of Technology in Cambridge. Projects will include systems that prevent traffic accidents and makes driving accessible to more people; including cars that can help handicapped people or the elderly stay behind the wheel; and another objective will be at-home technologies such as helper robots.
  6. Bob Lutz predicts doom for Tesla: Ex-GM vice chairman and Via Motors chairman of the board Bob Lutz doesn’t think Tesla Motors will make it. “Tesla’s showing all the signs of a company in trouble: bleeding cash, securitized assets, and mounting inventory. It’s the trifecta of doom for any automaker, and anyone paying attention probably saw this coming a mile away,” he wrote in a Road and Track guest commentary. One big problem is the real cost of a retail store with its service bays, chargers, and well-trained staff. A dealership location takes a lot of cash flow, he says.
  7. Installing hydrogen stations: For anyone building hydrogen fueling stations in California or other states, check out the GO-Biz Hydrogen Permitting Station Guidebook. Aimed at station developers, permitting officials and Authorities Having Jurisdiction (AHJs), the guidebook provides insights and lessons captured from the past two years of hydrogen station development in California. The Guidebook provides a detailed discussion of the permitting process and suggested best practices for local and regional governments and station developers seeking to open (or in the process of opening) a hydrogen fueling station.
  8. Autonomous vehicles on roads: Tesla CEO Elon Musk seems to agree with a study last year by Institute of Electrical and Electronics Engineers (IEEE) predicting that fully autonomous vehicles will be on U.S. roads between 2030 and 2035. During a conference call, Musk said that vehicles that can’t switch into autonomous mode will be seen as having “negative value.” He predicts that within 15 to 20 years, it will be “quite unusual to see cars that don’t have full autonomy.” Nissan CEO Carlos Ghosn seems to understand why Tesla is investing in Autopilot so early in the game. Last week at the Tokyo Motor Show, Ghosn introduced Nissan’s IDS (Intelligent Drive System) concept car with its autonomous vehicle mode and long-range battery drive system.
  9. Steve Jobs and an Apple car: Back in 2008, Apple co-founder Steve Jobs had conversations with Apple senior VP Tony Fadell about launching an iCar. In the time frame soon after the iPhone launch, Jobs was interested in talking about why type of car they would build, what would be placed on the dashboard, and how it would be fueled or powered. In an interview with Bloomberg, Fadell talked about how the two collaborators on the iPod and iPhone swapped ideas about car designs – long before Apple began investing in the potential of designing autonomous electric vehicles. The crash of the auto industry the next year got their attention on other priorities.
  10. Keystone pipeline: As expected, President Obama has rejected the request from Canadian company TransCanada to build the Keystone XL oil pipeline. “America is now a global leader when it comes to taking serious action to fight climate change,” Obama said at the White House. “And, frankly, approving this project would have undercut that global leadership.” This decision ends a seven-year review that had become a battleground in Washington.

This Week’s Top 10: Highlights from Tokyo Motor Show, How are you shopping for cars?

by Jon LeSage, editor and publisher, Green Auto Market

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

  1. Honda Clarity Fuel CellHighlights from Tokyo: Fuel-cell cars took the lead in green car debuts at the 2015 Tokyo Motor Show; electric cars, hybrids, and autonomous driving were also central at this year’s event. Honda has launched its first production version of a hydrogen fuel cell vehicle; the Clarity Fuel Cell (replacing the FCX Clarity model name). It will go on sale in Japan in early 2016, and will be brought to the U.S. later. The Lexus LF-FC concept car is a large hydrogen fuel-cell luxury sedan that may preview the next-generation Lexus LS. The Mercedes-Benz Vision Tokyo concept has self-driving capabilities and a bulbous shape. The Mitsubishi concept battery electric eX has a 45 kWh lithium-ion battery pack. The Nissan IDS Concept electric car includes a wireless inductive charging feature. The IDS Concept may be setting the look for the next-generation Nissan Leaf, which is likely coming out in the 2018 model year; and it may come with a 60-kWh battery pack. The second Nissan concept car introduced at the show was the Teatro for Dayz mini-electric car. The Subaru Viziv Future has a turbocharged internal-combustion engine to power the front wheels, and an electric motor to power the rear wheels; it may someday be available as a hybrid crossover.
  2. Sharing your perspectives on vehicle purchasing: Consulting company BKi is conducting a study about how people shop for new vehicles. If you bought or leased a new passenger vehicle for personal, business or fleet use, please complete this short, confidential survey. BKi focuses on energy, economics, and the environment. Clients include U.S. Environmental Protection Agency, U.S. Dept. of Energy, California Air Resources Board, California Energy Commission, Mercedes-Benz USA, Toyota, Oak Ridge National Laboratory, and H2USA. Click here to take this brief survey.
  3. The latest on Volkswagen: The recall list is getting longer. The U.S. Environmental Protection Agency yesterday issued a new Notice of Violation to Volkswagen, Audi and Porsche saying that the 2014 VW Touareg, 2015 Porsche Cayenne, and 2016 Audi A6 Quattro, A7 Quattro, A8, A8L and Q5 crossover with 3.0-liter diesel engines contained the illegal software. This covers about 10,000 vehicles from the 2014 and 2015 model years, and an unknown number of 2016 model year vehicles are involved.…….. A panel of federal judges will meet in early December to decide on a single venue to handle the expected a wave of class-action lawsuits. So far, more than 300 lawsuits have been filed against VW following breaking news that the automaker cheated on diesel emissions tests.
  4. Honda Clarity launch details, and BMW announcement: The Honda Clarity Fuel Cell hydrogen-powered car will go on sale in Japan and the U.S. next spring. In the U.S., sales will start in California where a network of hydrogen fueling stations have been constructed. Driving range estimates have varied from over 300 miles on a tank of fuel to 435 miles. Its price is expected to start at $63,000, and the marketing campaign is expected to tell how its driving range and interior space are more than what Toyota is offering in its Mirai fuel cell car. Honda is also looking into a program offering a portable hydrogen station. BMW AG said last week that its first fuel-cell vehicle would likely be a larger-sized sedan which would go on the market after 2020. That’s right after BMW’s hydrogen R&D partnership with Toyota will end. The two automakers are developing a method to compress hydrogen at ultra-low temperatures to increase fuel storage volume.
  5. Jaguar electric vehicle: Another luxury electric car may be coming out soon. Jaguar plans to launch a battery electric model called E-Pace, which will probably be a variant of the new Jaguar F-Pace SUV. Light carbon fiber and lightweight aluminum, and an aerodynamic shape, should help enhance the range it can travel on a full charge. The Jaguar E-Pace will use at least two electric motors, one or more for each axle for an all-wheel drive system.
  6. Autonomous EV from Nissan: The Nissan concept car, IDS, mentioned in the Tokyo Motor Show coverage above, is being designed to be driven autonomously. The Intelligent Driving System (IDS) can be self-driven, and with its 60 kWh battery pack, will be able to go 200 miles between charges. CEO Carlos Ghosn says that it’s being designed to learn the habits of its owners to modify the way it drives, including recommending restaurants to stop at for meals. Ghosn thinks it would be ideal for crowded urban environments – and would “compensate for human error which causes more than 90% of accidents,” he said.
  7. Carsharing will grow six-fold: Navigant Research estimates carsharing will grow six times by 2024 – from $1.1 billion this year to $6.5 billion in global revenue by 2024. While it’s been around for about 15 years now, it’s expected to mushroom in growth due to the popularity of one-way carsharing services; the adoption of electric vehicles in carsharing fleets is growing as carmakers help promote the technology, and this is also helping growth in carsharing usage. Those living in crowded cities appreciate having more options for multi-modal on-demand mobility, the study says.
  8. Self-driving car research: A self-driving car study done by the University of Michigan’s Transportation Research Institute found that crash rates in driverless cars were higher than conventional, human-driven vehicles; but the self-driving cars were not at fault and the severity of the crashes were lower than for conventional vehicles. The study conducted a preliminary analysis of the cumulative on-road safety record in 2013 of self-driving vehicles for three of the 10 companies that are currently approved for such vehicle testing in California (Google, Delphi, and Audi).
  9. Prius owners holding cars for long periods: Concern over the reliability of hybrids like the popular Toyota Prius is finding more good news. A study done by iSeeCars via Wards Auto found that the Prius is No. 2 on the list of longest-owned vehicles with 28.5% of original Prius owners keeping their cars for 10 years. The Honda CR-V crossover was No. 1 on the list, with 28.6% of owners keeping these vehicles for 10 years. “There are a rather large contingent of Toyota Prius owners who are happily touting the fact that their cars have logged 100,000 miles or more,” said iSeeCars CEO Phong Ly.
  10. BYD sees strong performance results: Chinese automaker BYD has been seeing stronger sales and financial results this year – net profit for the third quarter totaled 1.49 billion yuan (about $236 million), up from 28.2 million yuan a year earlier. BYD’s sales of plug-in hybrids and electric cars soared 220% year-over-year in September to 6,013 vehicles. The Tang SUV, BYD’s third plug-in hybrid passenger vehicle, accounted for nearly half the total with 3,044 sold. The Qin plug-in hybrid saw 2,115 sold in September. Generous government subsidies and a popular new model (Tang) helped sales increase.

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.”