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My day at AltCar Expo and thoughts on what it takes to create a strong green vehicle event

I had mixed feelings about once again attending AltCar Expo at the Santa Monica Civic Auditorium and its outside parking lot. I’ve been attending since 2009 (it started in 2006 and just completed its eight year), and it’s always been a must-attend conference – the most comprehensive ride and drive out there; excellent speaker panels with veteran experts in the field (government agencies, university research centers, automakers, infrastructure partners, consultants); display booths from automakers and organizations; and usually something very distinct you won’t forget (“Oh, I didn’t know the ports were using all-electric drayage trucks.”)

I’ve also had concerns about it. If you do a news search on AltCar Expo, you’ll see very little coverage of this significant conference. The attendance is also pretty light. I would think there would be a lot more people showing up (for example, on the fleet-focused sessions on Friday) in a city that’s considered to be a bellwether for alternative fuel vehicles and EV charging stations – not to mention that it’s one of the trendiest, wealthiest cities on the west coast. There are a lot of residents who own electric vehicles and support the basic premises behind alternative fuel vehicles – not to mention that Southern California is usually one of the leading markets where automakers first deliver green vehicles.

As for this year’s AltCar Expo, a few moments really stood out – Terry Tamminen – former head of California’s EPA during the Schwarzenegger administration when AB 32 and the Low Carbon Fuel Standard were being implemented – gave a clear picture of what’s happening in policy; Jon Coleman, fleet sustainability and technology manager for Ford’s North American Fleet, Lease and Remarketing Operations, had some very direct comments to make about the value proposition that needs to be fulfilled for EV charging and CNG refueling stations to go beyond symbolic to practical; Genze is launching an electric motorbike in the first quarter of next year that should stand out as utilitarian and hip to Millennials; and the Cal State Los Angeles EcoCAR 2 team was on hand (and so far is in second place among 15 universities in the US and Canada in this EPA and General Motors sponsored competition), displaying its converted Chevy Malibu plug-in hybrid flex fuel version. It was interesting to hear how strong sales have been since the recent introduction of Ford’s new F-150 natural gas pickup (the first half-ton CNG-powered pickup to come to market). I’ve always looked forward to attending AltCar Expo, and have always enjoyed the experience and learned a great deal about this important, new industry. I’ve just wanted to see a lot more people show up and have their own experiences with the technology.

It’s not the only green vehicle conference that faces big challenges increasing attendance, sponsorships, and other revenue to cover costs and pay for promotional campaigns – and playing a much-needed role helping to set a foundation for business growth. The Green Fleet Conference & Expo is coming up, put on by Bobit Business Media, publisher of the flagship Automotive Fleet; but there are only a limited number of people likely to attend even though it’s an excellent conference. ACT Expo is the most successful, highest attended green fleet-focused conference, and has successfully filled the void that opened up when the Alternative Fuel Vehicle Institute annual conference ended in 2010. Plug-In 2013 is coming up soon in San Diego and has been influential; the Electric Drive Transportation Association annual conference has been essential for EV stakeholders for several years; and NGV America’s annual conference is the flagship natural gas vehicle event. Still, attendance is limited at all of them, and their influence in media coverage, government policies, public opinion, and vehicle buyer decisions is slim. For those wondering what it’s going to take for green vehicle sales to increase along with all the positive environmental, energy, and economic impacts that many people are quite articulate about, I would say that successful conferences, trade shows, and vehicle displays are the meat and potatoes that need to go on tables.

Here are my thoughts on what could raise the numbers….

Get connected with major car shows. What about moving AltCar Expo in front of the LA Auto Show? Sure, it might be competing with the Green Car of the Year award, but it’s likely that efforts could be combined – such as continuing to have the ride and drive at the Santa Monica Civic Auditorium parking space; but what about having the speaker sessions at the LA convention center during the media days or during a dedicated event promoted by the auto show? There’s going to be a very interesting connected car event at LA Auto Show in November – maybe it could have been fused together as a broader topic? Smart transportation?
Coordinate the event with trade groups, research centers, and exhibitors. Last year, it was very productive to attend a pre-conference hosted by the Luskin Center for Innovation prior to the global EVS26 conference (put on by Electric Drive Transportation Association) at the LA convention center. It was fascinating information offered during presentations, but to a very limited audience. A much larger number attended EVS26, but once again, it was pale in comparison to many other events at that conference center. Organizations and businesses want to make gains in marketing exposure, public education, and through supporting technologies and sometimes controversial issues. I would think they should be included in the event planning process way ahead of time – and that could be one to two years out.
Get connected with fleet managers and Clean Cities coordinators. NAFA is doing a lot of it now through its relationship with Calstart and US Dept. of Energy’s Clean Cities leadership. But fleet managers and Clean Cities coordinators are down in the trenches and bring a lot of experience and expertise to the table. Put them on your conference planning committees.
Get celebrities to show up. Certainly, it would be tough to get big names to be placed on conference brochures – I doubt Elon Musk would be willing to be a keynote speaker; Neil Young and Willy Nelson support biofuels but are unlikely to put on a concert; T. Boone Pickens might show up and speak, but is likely to charge a hefty speaker fee; Tom Hanks was proud to drive an EV1 but would be very hard to get ahold of unless you’re a Hollywood insider. Ed Begley, Jr., is passionate about electric vehicles but might not be willing to speak at a conference in Chicago. Still, there are a lot of interesting and somewhat famous people out there who advocate and drive green vehicles – and could be convinced to come support the cause. Celebrities could include politicians, newscasters, experts (such as authors of influential books in the field), academics, actors, singers/musicians, athletes, and leaders of advocacy organizations. They might not be widely known, but could be icons to a sophisticated audience. And let’s be honest about it – we live in America, and celebrities are as big it gets. You might find that superficial, but just about every cause I can think of utilizes celebrities in their promotional campaigns whenever they can, and it tends to grab attention and conversation.
Location, location, location – and timing. Some markets usually deliver higher attendance than others, and it’s probably best to not have these types of conferences scheduled too close together.
Find sponsors willing to monetize the event. They’ll want a lot in return, but how unreasonable would that really be? All of the major conferences have a handful of large backers and sometimes a long list of companies willing to pay their dues to get on the list and perhaps exhibit at booths and host gala events – product unveilings, award shows, keynote speakers, etc.
Work together with organizations looking for such an event. The automotive and transportation sectors are chock full of organizations striving to better serve their memberships. Many are chomping at the bit to host an annual conference that elevates their importance and influence and brings together key stakeholders for valuable networking and education activities.
Make the ride and drive and vehicle displays distinct. One measure of an influential conference is the number of unveilings that happen during press conferences. There is a difference between what’s referred to by the conference planners as a product introduction and the actual launch of something. And if there’s no major unveilings to be announced, there are other ways to go – introducing a new mobile app; an upgrade to a vehicle’s features and color options; engine and powertrain enhancements; and infrastructure launches. If it’s been displayed at five conferences already, don’t claim it to be an introduction. As for ride and drives, there are ways to make it unique for that location – and user friendly for people standing in line waiting for their turn. Automakers sometimes offer incentives for car shoppers to earn when they show up at the ride and drive and go buy one of the new cars soon after.
Get lots of media coverage before, during, and after. Some conferences are good at getting media sponsors and offering perks for them to show up and create valuable content in articles, videos, podcasts/radio, and photo galleries. Targeted trade, professional, and special interest publications are critical to draw and reach important niches, but don’t forget about mainstream media. Getting reporters from Bloomberg, Reuters, Wall Street Journal, major media from the hosting city, and business publications, is a given for the big auto shows. Getting them to show up at niche conferences is a tough sell, but it becomes more newsworthy if a governor or a championship-game-winning coach are scheduled to drive up in their plug-in cars (or hydrogen fuel cell vehicle, natural gas vehicle, propane-powered truck, biodiesel bus, or hybrid vehicle) and say great things about the cause. Blogs and social media will also play a vital role in getting the word out.
Hold the speaker panels somewhere nearby that upgrade the professionalism and appeal of the event – such as at a nearby hotel where business conferences are popular these days.

Automakers are willing to send newly launched vehicles to car shows all over the world. They’re spending lots of money to reach eager consumers who love attending annual car shows and conferences. Green vehicles are unlikely to see anything of this size and scope, but the sales numbers are slowly inching up; and at some point, we’re going to see millions of them on the roads. To keep these vehicles running safely and efficiently, it will take a lot of people skilled and experienced in the field to be networking with and educating each other at significant industry conferences.

ARI’s Brian Matuszewski on what fleet managers are doing on the sustainability front

Does your organization have a sustainability officer on staff? The last time I counted, there were 19 of these filled management positions at US-based vehicle manufacturers; nine at automotive supplier companies; 16 at transportation companies (including fleet management, cargo transport, and delivery companies); and 12 in the energy sector (and that includes NPOs and research centers). Not all of them have the word “sustainability” in their job titles. They’re typically responsible for carrying out environmental and energy efficiency initiatives for their organizations; it tends to cover the end result of the entity (such as manufacturing clean, fuel efficient vehicles) and internal processes such as energy efficiency, recycling, and waste management. Sustainability has to do with what gets handed over to future generations.

Brian Matuszewski is one of the few sustainability officers, so far, in fleet management. He serves as manager – strategic consulting, sustainable strategies at ARI, one of the top fleet management companies based in the US. Matuszewski spoke to me last week about his duties at the company – and what it’s like to be among the growing movement of management professionals focused on sustainability issues. ARI’s clientele includes fleets in the corporate, government, and NPO sectors. The Cornell University graduate previously served at the US Environmental Protection Agency, as an analyst at P&L in Mexico City, and joined ARI earlier this year.

He’s primarily focused on supporting clients’ efforts to operate sustainable fleets with alternative fuel vehicles, fuel efficiency, and research and consulting services. Fleet managers are interested in implementing organizational targets to reduce carbon and greenhouse gas emissions, supporting their country’s energy independence, and maximizing operational efficiencies and cost reductions. Matuszewski starts out by assessing fleet data and working with clients on integrating what makes the most sense for them.

Along with green vehicle acquisition decisions, Matuszewski said that ARI’s Environmental Management System helps clients monitor energy efficiency, manage waste going to landfills, implement recycling programs, and track baseline data globally. These days, fleet managers wear a lot of hats – their duties go way beyond fleet management; ARI assists fleets in reducing emissions and increasing efficiency in different facets of fleet management duties. Some fleet managers are working closely with sustainability managers within their organizations. “Fleet managers are getting some pressure from sustainability officers – buy more hybrids, etc.,” Matuszewski said. “The fleet manager’s job is a lot more comprehensive.”

European fleets are dealing with taxation on emissions, and in the US, several government and large corporate fleets are implementing sustainability initiatives – generally designed to meet carbon emissions targets. Smog emissions are not a priority for fleets these days due to advanced technologies that are commonplace in new vehicles; reducing CO2 emissions is a top priority for a growing number of fleets. Diesel powertrains are being tracked, too, and a lot of that is being dealt with effectively by regulatory compliance including diesel being sold now at fueling stations that “combust fuel in a clean way,” Matuszewski said.

As for alternative fuel vehicles, that varies fleet by fleet – plug-in electric vehicles, hybrids, natural gas vehicles, propane autogas, and biodiesel are being looked at. “Alternative fuels are not the only way to go green,” he said. “They’re optimizing fuel efficiency, and gasoline and diesel engine vehicles can be pretty clean.” At the end of the day, fleet managers have to meet their organization’s goals when making fleet vehicle acquisitions. “Whether you believe in global warming or not, you need to make a strong business case,” Matuszewski said.

You may notice that quite a few Millennials (along with Baby Boomers and Gen Xers) can get pretty fascinated and passionate about sustainability – and might end up choosing to travel down that career path, as did Matuszewski. “At the university setting, it’s become a hot topic and not a fad,” he said. The terminology now includes cleantech, clean transportation, and sustainability. Whether it be students majoring in engineering, architecture, public policy, or business management, a lot more of them are adding it to their degrees and are becoming active in campus in organizations such as Net Impact. “A lot of people coming from college see it happening and feel good about it,” he said. It makes a lot of sense to them – in creating economic growth and innovation. It was a hot topic at Cornell University while he attended, and he’s been seeing a lot of topical conferences taking place across the country.

Matuszewski also emphasized that automakers are not getting enough credit for embracing sustainability. For example, Ford’s Rouge plant now utilizes a zero emissions building, and soybeans are being used inside Ford vehicle interiors, he said. Fleets are going in that direction, too, and are making a solid contribution to sustainability through the volume of vehicles they’re purchasing, setting up onsite alternative fueling, and are part of building the infrastructure. ARI works with clients to extract and analyze data and “customize sustainable solutions,” he said.

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

GM and Mercedes-Benz join Nissan in race for driverless car launch
Nissan made a splash recently showing off its Autonomous Drive concept car (a driverless Leaf) that it says will come to market by 2020. Laser scanners, Around View Monitor cameras, as well as advanced artificial intelligence and actuators, have been installed in Leafs to enable them to negotiate complex real-world driving scenarios. General Motors is testing out Cadillac SRX prototypes at its Milford, Mich., proving grounds. GM is working out the kinks in its Super Cruise feature that it wants to launch by 2020. Mercedes-Benz demonstrated what it calls a “self-piloted” car at the Frankfurt auto show. Its S500 “Intelligent Drive” concept car drove autonomously along a 62-mile route in Germany last month. As for the year it should be available: 2020, which sounds like a very big year for driverless cars.

Spam attack defeated!!! Now, please leave your reader comments…..
For those of you who have written for a blog, you probably have experienced the extremely annoying scam of bot engines placing deceptive reader comments on the site. Green Auto Market was attacked by bots recently, where up to 50 fake reader comments a day were posted. However this works, there does seem to be some connection between certain trendy products and green cars (I can’t say which product it is, since that might place this blog once again on another bot’s list). A lot of the comments were in Japanese – WordPress does offer a translator software function if needed. The other common thread in the comments was someone hawking their services to increase SEO on Green Auto Market – thanks but no thanks. They might approach that by throwing out a series of compliments on how awesome Green Auto Market and its writer/editor are. Well, shucks…. but, thanks but no thanks. We used a plugin product called Simple Comments to alleviate the spam attack – so far, so good. That being said, this is a very good time for you to leave a comment – see the “Leave a reply” link at the top of each post. I will review it, post it, and occasionally write a reply to the comment. Another suggestion is to forward the newsletter email or a link to the blog website, encouraging peers to post their name and email address to join the subscription list. You’ll find that box in the upper right corner of the blog. Some readers are sharing articles from this blog in their newsletters, websites, and blogs. Together, we can stop spammers from dominating the internet!

Tesla-Mania! Tesla setting up stores in Germany
I might have been wrong: Maybe it was Tesla going after BMW and not vice versa. Tesla is setting up sales centers in Germany and will be able take on BMW directly. BMW has rolled out its i3 luxury electric car and showed off its i8 plug-in hybrid supercars at the Frankfurt Motor Show. Tesla is focusing on the German market to sell its Model S luxury electric car by setting up six stores. Four are in place – three sales centers are in Frankfurt, Dusseldorf, Hamburg, and Munich; two more stores are being set up Berlin and Stuttgart. “The European home turf belongs to the likes of Daimler, BMW and Audi,” said Bryan Batista, Tesla’s European sales director. “We’re confident that we have a product that stacks up very well.”

More bodacious claims from Mazda on its Skyactiv system
The Mazda CX5 with its Skyactiv technology is being compared to Thomas Edison and all his innovative inventions. Okay, so we have the surfing legend Laird Hamilton and Thomas Edison comparisons for Skyactiv – very impressive. How about Henry Ford? Or Albert Einstein?

Fuel cell vehicles get some good news in California
California Assembly Bill 8, which will fund at least 100 hydrogen stations in California, passed through the state legislature last week and is on its way to Gov. Jerry Brown’s desk; the governor indicated he’ll signed it during a news conference this week. AB 8 will provide funding for at least 100 publicly available hydrogen stations, with a commitment of $20 million a year (or 20% of available funds) until January 1, 2024. UK-based ITM Power, a fuel cell energy storage and clean fuel products company, just took its first US order for $1.4 million to support hydrogen refueling stations. ITM Power turns renewable wind and solar power into hydrogen gas using electrolyser technology, which creates on-demand clean fuel for cars, cooking, heating and welding. The company will supply an electrolyser-based unit for Hyundai’s hydrogen energy and fueling station in Chino, Calif.

Toyota gets into carsharing game in the US
Toyota Motor Sales USA is getting into the carsharing business through an alliance with City CarShare, which is considered to be the largest nonprofit carsharing organization in North America. The relationship has started with the Dash carsharing program in Pleasanton, Calif., for an employer’s needs and for their carpool, vanpool, and public transportation commuters. It’s a three-year pilot program that will delivery Scion iQ electric vehicles that were designed specifically for the carsharing market. Navigant Research just issued a report projecting that carsharing services will have more than 12 million members worldwide by 2020, up from the current level of 2.3 million.

Boulder Electric demonstrates V2G at three sites
Electric truck manufacturer Boulder Electric has successfully demonstrated its Vehicle-to-Grid (V2G) all electric trucks in three separate locations including Michigan, Colorado and California. With 60 kilowatts of power going in and coming out of the vehicles, Boulder EV reached a new milestone and became the first EV truck manufacturer in the world to successfully demonstrate V2G bi-directional charging at its first testing site at Royal Oak, Mich., back in June. The second project took place at the US Army Corps of Engineers and SPIDERS project in Carson, Col. Most recently, at Boulder’s plant in Los Angeles, the California Energy Commission award the company a $3 million grant to support opening its second plant.

National fuel economy number goes up to 24.9 mpg
Corporate average fuel economy is inching upwards each month. The University of Michigan Transportation Institute says that the August number for light-duty cars and trucks sold in the US reached 24.9 mpg, up 0.1 mpg from the previous month. It’s gone up 4.8 mpg since the university began tracking the numbers in October 2007.

ClipperCreek brings smallest Level 2 EV charging station to market
Veteran EV charging station maker ClipperCreek has announced the availability of what it claims to be the smallest cord and plug connected, 20Amp, Level 2 EV charging station on the market. Based on the company’s LCS-25, this new product features a plug in connection to make installation inexpensive and fast. With a standard 25 foot charge cable, there is no need to juggle cars to plug in. Customers with existing outlets can purchase the LCS-25P and install it by attaching it to the wall and plugging the LCS-25P into a 240V outlet. It’s for sale at a retail price tag of $549, with a 3 year warranty.

DOE may be settling for small chunk of Fisker’s debt being paid for
Fisker Automotive may have a buyer take care of its large debt with the US Dept. of Energy. Fritz Nols AG, a German investment company, appears to have placed its $25 million offer to the DOE, and its sounds like it could be moving forward. The parties signed a letter of intent for its restructuring plan. It might be a partial solution for the DOE to resolve some of the $193 million that the agency made available as a loan and which the extended range automaker has yet to pay back. Fritz Nols AG may not close the deal, though; other bids are being considered by the feds including one from Chinese auto parts maker Wanxiang Group (and owner of previously-named A123 Systems); and a Hong Kong-based investment group. It sounds like all of the bids are lower than the US government had been hoping for; yet, they may settle for less and walk away from Fisker.

Dark days ahead for Ecotality
Ecotality has a swirl of class-action lawsuits being filed against the electric vehicle battery charger company. Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Ecotality, Inc. in US District Court, Northern District of California. It’s been filed on behalf of a class consisting of all persons or entities who gained securities of Ecotality between April 16, 2012 and August 9, 2013. This class action seeks to recover damages as a result of alleged violations of the federal securities laws.

Solid used vehicle segment to reach: green cars

Looking for a profitable used vehicle market segment to reach? How about green cars – hybrids, electric vehicles, and fuel efficient vehicles? Franchised and independent dealers are seeing a lot of used inventory on the market today, and some of it, especially trucks, is seeing strong pricing. What we’re seeing though, such as in Manheim’s latest report, is that dealers are doing well by selling lots of used vehicle the right way. Prices might be down on small, fuel efficient cars and hybrids, but all things considered, they’re not bad – and selling a lot of them can be profitable.

There are two interesting announcements from last week that speak to the issue – one is that Nissan has added its Leaf electric car to its certified pre-owned vehicle list; and the other is an online tool for used cars rating fuel efficiency and emissions from the US Dept. of Energy (DOE) and Environmental Protection Agency (EPA).

Certified Leafs will get an extended warranty of seven years or 100,000 miles on both the electric system and powertrain. To be considered, the used Leaf must be less than five years old, have fewer than 60,000 miles, and have at least nine of 12 bars of battery capacity remaining on the gauge. It also needs to have a clean Carfax history report, and pass an inspection where 167 separate items are checked. Two warranties on the battery pack will remain in place – eight years or 100,000 miles, and five years or 60,000 miles, with a few performance indicators being checked on each warranty. The new certified program adds to the protections.

For the DOE and EPA offering, dealers and consumers can now place a used car label based on fuel economy and emissions performance. It’s a free online tool allowing for creation of a consumer-friendly label that lists gas mileage and CO2 emissions levels of used vehicles sold in the US since 1984.

Other indicators that used green cars is a viable market segment to reach include eBay’s Green Driving (which they say gets a lot of traffic); NADA Used Car Guide’s Plug-in Electric Vehicles: Market Analysis and Used Price Forecast; and ALG’s Alternative Powertrain Perceived Quality Study.

Frankfurt Motor Show looks electrified but how real is it?

The German auto show is going full steam ahead and has been getting plentiful media coverage describing electrified vehicles as the central theme. There certainly have been a lot of displays, but the typical question arises – how much of this will really reach production lines, what will the volume look like, and when will they show up at dealer lots? Here’s a few highlights from last week…

Volkswagen took center stage – claiming to have 40 new hybrids, plug-in hybrids, and battery electric vehicles in the works to roll out by 2018; the company plans to roll out 14 vehicles with alternative powertrains by next year. Coming soon will be electrified versions of the Up! city car, Golf compact, Audi A3 Sportback plug-in hybrid, and a battery-assisted Porsche 918 supercar. Volkswagen CEO Martin Winterkorn says that his company will become the world’s largest producer of battery-based vehicles in the world.

VW also said that it’s considering rolling out natural gas-powered cars in the US. The automaker is urging the Environmental Protection Agency to do more to get a broader natural gas refueling network set up across the country.

Land Rover will be offering a diesel plug-in hybrid Range Rover SUV. It’s expected to pair a 288 horsepower turbodiesel engine with a 47 hp electric motor, and will get 44 miles per gallon.

BMW officially unveiled its i8 plug-in hybrid, which gets 362 hp that comes from a three-cylinder engine and an electric motor. BMW is also showing a Concept X5 eDrive at the show – a plug-in hybrid based on a four-cylinder engine.

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

August witnessed a hot sales market for plug-ins and hybrids
Plug-in electric vehicle sales nearly doubled year-ago figures to 9,431 units in August. The Chevrolet Volt reached its highest ever monthly sales figure – 3,351 units sold in August reaching just under 15,000 for this year. June 2013 had seen its best June ever at 2,698 units sold and July had dropped to 1,788. So August was a win-win for GM and incentives have been helping. The Nissan Leaf sold 2,420 units in August and made it to a little over 14,100 for the year. Previously, March had been the best sales month of the year for the Leaf, at 2,236 units sold. Atlanta has been a new and strong market for the Leaf. Tesla brought in sales of 1,716 Model S units, for a total of 13,330 for this year. Toyota had an even better month, setting a monthly record of 1,791 of its Prius Plug-in Hybrids. The RAV4 EV did well, too, reaching a record 231 units sold. Overall, the Prius saw a strong month with 27,358 units sold in all four variants – 28% over last year.

Ford did very well, almost quadrupling its green car numbers from last year at 8,292 vehicles sold. The Fusion Hybrid reached 3,694 units sold, C-Max Hybrid reached 2,411, the Fusion Energi hit 600 sold, and C-Max Energi made it to 621 sold. Revising the mileage rating on the C-Max hybrid on August 15 didn’t seem to hurt sales. Ford announced the EPA combined fuel economy rating was dropping from 47 to 43 mpg. The automaker thinks it still has a very strong selling point against its chief competitor, the Toyota Prius V, which has a combined mileage rating of 42 mpg.

DOE investing $45M in advanced vehicle technology projects
Ford, General Motors, Chrysler, General Electric and Caterpillar are among the 38 companies, universities and national labs to receive more than $45 million in US Department of Energy funding for projects that accelerate R&D of vehicle technologies to improve fuel efficiency, lower transportation costs, and protect the environment. While similar to the Advanced Vehicle Technology Manufacturing program, this new DOE project fund is a separate project tied into President Obama’s Climate Action Plan that was launched in June of this year. The US Army will be contributing an additional $3 million to support projects based on lightweighting and propulsion materials, batteries, fuels, lubricants.

Coalition bringing electric drive experience to tourists visiting Orlando
Drive Electric Orlando (DEO) is bringing the electric vehicle driving experience to a lot of tourists visiting the city famous for its massive theme parks. DEO is bringing together car rental, charging stations, hotels, theme parks, and other stakeholders into the coalition. Enterprise Rent-A-Car is playing the leading role and working with Nissan on bringing Leafs to customers. Other participants include Disney, Sea World, Universal Studios, Duke Energy, Visit Florida, Peabody Hotel, and the University of Central Florida; Electrification Coalition is also part of the network. Renters can get a Leaf for as low as $30 a day that includes GPS navigation and overnight charging at hotels. Customers will be able to have free use of the Clear security lanes when leaving the city’s airport.

Siemens leaving EV charging business
Siemens AG, a German multinational engineering and electronics conglomerate, is leaving the electric vehicle charging market. Demand and market development has been weaker than expected in Germany and in the US. It will continue offering wall boxes for recharging electric vehicles at home, and will continue research on wireless charging. Siemens has played a very visible role at conferences such as Plug-in 2012.

Republicans in Congress likely to oppose DOE advanced vehicle loans
The US Dept. of Transportation’s Advanced Technology Vehicle Manufacturing loan program is facing Republican opposition in Congress. The DOE recently announced an active outreach campaign for the loan program to deliver more than $15 billion to potential applicants. U.S. Rep. Darrell Issa, R-Calif., the head of the House oversight committee, previously said the auto loan program was a “perfect example of government waste.”

Tesla-Mania!: Combat with dealers, Musk family road trip
After mixed results in state-level battles with dealers over its non-franchised dealer business model, Tesla Motors is ruminating over taking it to Washington. Tesla had fought the fight most intensely in Texas to overturn state franchise laws – and lost to dealers. Texas is considered to have the toughest state laws benefiting dealers over automakers. Dealers are watching it very closely with fear that Tesla gaining victory in Washington or any of the states would open the door to automakers from developing countries coming to the US to carve out market share. There’s also fear of what major OEMs might gain if Tesla gets away with it and they decide to switch over to company stores. They do tend to find Tesla CEO Elon Musk extremely irritating, but recognize he can pull a lot of sway.

In less dramatic news, Musk will be taking off on a cross-country road trip in a Model S with his five kids in the car. Musk will have to figure out the best way to drive 3,200 miles and make charging time most efficient at Tesla’s Supercharger stations. He thinks it will take up to 90 minutes a day to get the needed charging done during the five-day trip.

Climate Change and transportation policies: Are skeptics right that it’s really a lost cause?

Stakeholders striving to bring green transportation to the mainstream tend to articulate one, two, or all three of the following reasons for supporting their missions:

1. Petroleum: Reducing and eventually eliminating America’s (and Planet Earth’s) addiction to oil and all its negative implications on geopolitics and energy security, economic stability, and environmental issues.
2. Economics: A seismic shift has been in the works for years, long before the Great Recession, with globalization and adoption of new technologies driving change. As America sees several industries and jobs diminish or disappear, looking for new opportunities is a very good thing. Alternative fuels and vehicles offer the possibility of return on investments, OEM and infrastructure sales, good paying jobs, and sales tax revenue.
3. Emissions: On the regulatory front, along with sustainability policies being adopted by several corporations, green transportation tends to be primarily pushed forward to reduce tailpipe and carbon emissions. Air pollution and its health-hazard implications are there on the tailpipe smog side of the analysis, and for many organizations, climate change is the central issue.

I’ve recently heard persuasive arguments made that climate change is certainly occurring, but there’s very little humans can do about it. While reducing fossil fuel consumption and emissions is the clear path to reducing CO2 levels, it will only address one end of the scale; there are environmental forces – including what’s happening deep within our oceans – that are outside human-caused climate change and there’s very little we can do about it.

Whether these arguments have weight or not, it’s very important to stay current on what’s happening out there, as it will affect government and corporate transportation policies. So here’s the latest on the climate change debate….

The US Department of Commerce’s National Oceanic and Atmospheric Administration (NOAA) just released a report stating that the scorching hot heat that hit the north central and northeast US during the summer of 2012 was impacted by man-made climate change. The report’s analyses found evidence of human-caused climate change in half of the 12 extreme weather and climate events analyzed from last year. It started with unusual warmth in the spring season of 2012. “Approximately 35 percent of the extreme warmth experienced in the eastern U.S. between March and May 2012 can be attributed to human-induced climate change,” NOAA said about one study in the report. From another study in the report, NOAA stated, “High temperatures, such as those experienced in the [north central and northeast] U.S. in [summer] 2012 are now likely to occur four times as frequently due to human-induced climate change.”

The California Air Resources Board has a legal battle to deal with that’s attempting to undercut the Low Carbon Fuel Standard Program, which came out of AB 32 when it was enacted in 2006. Oil and ethanol companies want to void the rule and claim that the fuel standard discriminates against crude oil and biofuels producers outside California. There are two lawsuits in the works. CARB lost the federal court case and is waiting to find out if the Ninth US Circuit Court of Appeals will hear the case. Ethanol producer Poet LLC has another case filed with the state court claiming CARB violated the California Environmental Quality Act (CEQA) when it adopted the standard. Poet claims the rule unfairly penalizes ethanol producers by counting their indirect carbon emissions.

National Geographic’s September cover story, “Rising Seas,” shows the Statue of Liberty waist high in seawater. The lead feature article starts out with three statistics – 136 large coastal cities are now at risk from sea-level rise; 40 million people are at risk in those cities; and there’s $3 trillion value of assets at risk. A fold-out map shows what the planet would look like if all the ice caps melted – the southeast US is underwater; California doesn’t break off and sink to the bottom of the ocean, but somehow its central agricultural region becomes a giant lake. The global map forecasts 5,000 years into the future when the sea level rises 216 feet, perhaps much faster if we add five trillion more tons of carbon to the atmosphere. The average earth temperature will be shooting up from the current 58 degrees Fahrenheit to 80 degrees. Most of magazine’s special section focuses on tactics for surviving flooding and other consequences that come out of disasters like last year’s Hurricane Sandy. In June, Mayor Michael Bloomberg outlined a $19.5 billion plan to defend New York City against rising seas. Tim Folger, author of the article does mention the role of human decisions impacting melting ice caps…. “Unless we change course dramatically in the coming years, our carbon emissions will create a world utterly different in its very geography from the one in which our species evolved,” Folger wrote in the summary. “No matter how much we reduce our greenhouse gas emissions, Foster (Gavin Foster, a geochemist at the University of Southampton in England) says we’re already locked in to at least several feet of sea-level rise, and perhaps several dozens of feet, as the planet slowly adjusts to the amount of carbon that’s in the atmosphere already.”

In June of this year, President Barack Obama came back to the issue of climate change, which he’d basically avoided during his reelection campaign last year. In June of this year, the White House published the “Climate Action Plan” and the president gave a speech that month on climate and energy. The theme of the transportation portion of the report digs into increasing fuel economy standards and developing and deploying advanced transportation technologies as the way to address climate change. The report does start out with a quote from the president’s reelection inaugural speech in January where he mentioned the overwhelming majority of scientists convinced that climate change is for real ….. “We will respond to the threat of climate change, knowing that the failure to do so would betray our children and future generations. Some may still deny the overwhelming judgment of science, but none can avoid the devastating impact of raging fires and crippling drought and more powerful storms,” he said. Our moral obligation is to hand over sustainable energy sources to future generations, according to the president. Obama addressed the topic during the G20 summit, though the issue of what to do about Syria was much more important. Five Scandinavian nations (Denmark, Finland, Iceland, Norway, and Sweden) agreed with the president on the goals outlined in the Climate Action Plan.

Transportation produced 31% of total carbon emissions and 26% of greenhouse gas emissions (GHG) in the US during 2011, according to the US Environmental Protection Agency. Electricity, industry, residential and commercial, and other non-fossil combustion make up the rest of carbon dioxide (CO2) emissions in the EPA analysis. GHG and CO2 emissions go through ebbs and flows of interest and action by government entities, researchers, and businesses. The published B2B and consumer surveys make the issues look vulnerable to fluctuation on priority lists for elections, investments, purchase decisions, and lifestyle concerns. Climate change is not going away as a pressing issue – especially in the wake of natural disasters and weather catastrophes – but it’s probably best suited for success in league with petroleum and economic issues.

Lithium-ion batteries see much brighter days for Asia-based battery makers

Not long ago, Navigant Research identified what it considers to be the top 10 most significant lithium-ion battery makers active in the electric vehicle market. Its top 10 ranking is based on systems integration, safety engineering, chemistry performance, geographic reach, manufacturing and product performance, pricing, and overall corporate financial health. Here’s the top 10 list with a bit of company background information….

LG Chem – formerly a subsidiary of LG Group, the South Korean company went public in 2001 with LG Group remaining a significant investor.
Johnson Controls – a US-based company offering products and services to optimize energy and operational efficiencies to several industries including automotive.
Automotive Energy Supply Corp. (AESC) – a joint venture between three Japan-based companies – Nissan, information technology company NEC Corp., and electronic device company NEC TOKIN Corp.
Panasonic – a Japanese electronics company.
Samsung SDI – a subsidiary of South Korea-based Samsung Electronics.
SK Continental E-Motion – a joint venture between South Korea’s largest oil refiner SK Innovation and German automotive parts supplier Continental AG.
Hitachi – a Japanese engineering and electronics conglomerate.
Toshiba – a Japanese engineering and electronics conglomerate.
GS Yuasa – a Japanese company known primarily for automobile and motorcycle lead-acid batteries.
BYD – Chinese BYD Company is a major battery maker and also owns BYD Auto Co.

You might notice a pattern here – of these 10 companies, only one is US based and nearly all others are in Asia and bring many years of success in automotive, engineering, and electronics to their battery divisions. The US has its share of electric carmakers, but the battery packs haven’t gone well for US-based manufacturing. A123 Systems went bankrupt and is making a few batteries now for its Chinese company owner; EnerDel came from Ener1 and its troubled partnership with Norwegian electric carmaker Think. EnerDel is struggling with lack of business and just cut its Indianapolis-area workforce by one third. Coda Automotive has pulled out of the electric vehicle market and filed for bankruptcy. Management is now focused on building its battery energy storage system through its Coda Energy division, which it started in 2011, and it’s focused on markets outside of electric vehicles.

LG Chem has done very well in the global li-ion battery market, but the US has been a bad experience for the top-ranked company. LG Chem finally began producing li-ion batteries in July for the Chevrolet Volt at its Holland, Mich. plant, but that’s been stopped again in the past few days. The US Environmental Protection Agency (EPA) has raised questions about how the cells are being made. The EPA has issued a subpoena on LG Chem to find out what chemicals have been used in production. The company says that it’s still confident it can get production ramped up once this investigation gets wrapped up.

LG Chem had received $151 million in US Department of Energy funds, but had not built any Volt batteries from Holland, Mich., until very recently – only from its South Korean facilities. It got fairly ugly earlier this year when the Office of the Inspector General reported that LG Chem employees were sitting around doing nothing but playing games and watching movies while being paid from these federal funds. LC Chem was instructed to return $842,000 as a result of the report.

Lux Research reported that electronics giant Panasonic’s lithium-ion battery division earned about $40 million in profits during Q2 2013 – much better than in Q2 2012 when the company lost $20 million. The company is expected to invest over $200 million during the next year to expand its li-ion production lines in Japan. Panasonic has supplied nickel-metal hydride batteries to Toyota and Honda hybrid models, but more recently has invested more in its li-ion division. Tesla Motors is a major client – Panasonic has been producing 60 kilowatt hour to 85 kWh battery packs for its Model S electric car. Lux Research reported that Panasonic has overtaken LG Chem and AESC in US li-ion sales. The US market is competitive for li-ion EV battery market share, but it’s now coming from companies based overseas.

Big Picture: Nissan joins Tesla in selling ZEV credits, Volvo Trucks upping its green credentials, Toyota improving Prius performance

Here’s my take on top news stories of the week:

One of the gains made by selling plug-in electric vehicles in California is gaining zero emission vehicle (ZEV) credits and selling them to your competitors. Nissan Motor Co. now joins Tesla Motors in selling green-car credits. California requires large automakers to sell electric or other ZEVs in proportion to their market share in the state. Nissan has sold enough Leafs that it can sell its excess carbon credits to other automakers. The Tesla Model S can generate up to seven ZEV credits because of its range of as much as 300 miles per charge and the option of swapping its battery pack with a charged one (the company will open its first battery swap facility by year’s end). The Leaf earns three credits through the state program.
Volvo Trucks is upping its green credentials even more – Through its Climate-Smart City Distribution project, emissions from 400 distribution trucks were cut between 30% and 80% over three years. Volvo worked with several partners to improve the efficiency of distribution operations in Gothenburg, Sweden. Conventional diesel distribution trucks were replaced with vehicles using renewable fuels – biodiesel, biogas, and dimethyl ether (DME); hybrid technology; and methane-diesel fuel. Volvo and Mack Trucks are committed to bringing DME powered trucks to roads soon; earlier this year, Volvo unveiled plug-in hybrid buses as part of a field test.
Toyota is optimistic that its next generation Prius will get even better fuel economy and cost even less. Improvements will come through using lighter materials and significant advances in battery, electric motor, and gas engine technologies, the company said. Toyota thinks its miles per gallon rating on the hatchback Prius will gain from 50 mpg to near 55. It’s likely to come out in 2015. It next generation batteries will have higher energy density. For the Prius and other Toyota models, the automakers is working on a diverse set of batteries – lithium ion, nickel metal hydride, solid state, lithium air, and magnesium.
Electric Drive Transportation Association (EDTA) and its GoElectricDrive Foundation have a partnership with Green Sports Alliance dedicated to improve the environmental performance of sports teams and facilities. Since being founded in March 2011 by six professional teams and five venues, Green Sports Alliance now has over 170 professional and collegiate teams from 15 different sports leagues. Members include Anaheim Ducks, Baltimore Ravens, Boston Red Sox, LA Dodgers, Miami Marlins, New York Jets, and University of Texas Longhorns. EDTA and Green Sports Alliance will show organizations the benefits of integrating electric drive in their fleets, and giving fans a place to charge up their EVs while watching a ballgame, said Brian Wynne, president of EDTA.
The 2013 AltCar Fleet Conference and Expo will be put on by the City of Santa Monica on Sept. 20-21. It tends to offer the best green vehicle display and ride and drive with just about e everything you can think of available to check out. As for speakers at the Friday fleet conference, these will include Terry Tamminen, former secretary of the California Environmental Protection Agency; David Friedman, deputy administrator of the National Highway Transportation Safety Administration; JR DeShazo, director of the Luskin Center at UCLA; Randall Winston, special assistant to the executive secretary, office of Governor Edmund G. Brown, Jr.; Jon Coleman, fleet sustainability & technology manager for Ford Motor Co.; and Richard Battersby, Public Sector Fleet Manager of the Year, from East Bay Clean Cities. Vehicle debuts will include Southern California Gas Company’s west coast introduction of four new prototype consumer vehicles built to run on compressed natural gas and capable of using gasoline as backup.
CleanFUEL USA has just brought in Blair Poulsen as its director of sales; Poulsen brings more than 23 years of propane industry experience to the company. He was most recently regional sales and marketing director for Heritage Propane and AmeriGas Propane, and currently serves on the Nevada Board of Regulation of Liquefied Petroleum Gas. Poulsen will lead a team serving clients in propane refueling infrastructure and OEM vehicle technology, including Thomas Built Bus, Collins Bus, General Motors Corp., and Freightliner Custom Chassis Corp.
You think regenerative braking is pretty cool? How about a regenerative suspension? German automotive parts maker ZF says it’s bringing the first technology of its kind to the world. ZF Friedrichshafen AG has teamed up with Levant Power Corp. to product a system that works like regen braking, recapturing energy when the suspension gets put in motion. It would take away the large amount of energy needed by suspension systems and increase fuel economy.
Is your community burdened by dirty coal? How about converting over to cleaner natural gas? Navigant Research is hosting a webinar on Sept. 10 that will explore that topic. Utilities are shutting down a lot of aging coal-powered plants through 2020. There are costs and complexities involved in switching over to natural gas that will be discussed by panelists, including examples of plants that have gone through these conversions in recent years.
States like California are digging into the best financial models for reducing traffic congestion and repairing worn out roads. Vehicle Miles Traveled (VMT) taxes, gasoline tax increases, road tolls, increasing vehicle licensing and registration fees, transportation-focused sales tax, and infrastructure bonds – and all they pluses and minuses – are explored in an article that was just published in Westways. It’s a very tough issue that states are going through.
Reincarnated electric carmaker Detroit Electric will still be making its all-electric SP:01, only it won’t be happening in Detroit. Its Lotus-based sports car will be made in the Netherlands, and production will start in the fourth quarter of this year. The company was going to bring jobs to Detroit initially – 2,500 cars per years with a workforce of 100. Plans started being delayed in June, as the company said it couldn’t find the right manufacturing location in Wayne County, Mich., where Detroit is located.

Chrysler Group and NADA encouraging dealers to be energy efficient

Chrysler Group just recognized 30 of its dealers who’ve performed well through its second annual Dealer Environmentally Conscious Operations program. Dealers are saving money by adopting energy efficient practices and looking for ways to make the changes pay for themselves. One of the more interesting examples has been Westgate Chrysler Jeep Dodge Ram, based in Raleigh, N.C. Westgate installed 420 solar panels on its service department and sold the power to the region’s electric utility at a fixed rate. It’s reducing energy costs $1,800 to $3,000 per month, depending on the volume of sunshine that make it to the solar panels.

Chrysler Group is emphasizing two accomplishments its dealer network is reaching – significant contributions to the environment and creating a sustainable enterprise. There’s also the operating cost savings part – which will take a while depending on the incentives available to the dealer and the cost of having the solar panels installed or other building structure investments needed for improved energy efficiency. Dealers can access incentive programs in some states that lower the solar panel installation cost quite a bit; and can start up energy efficiency programs such as changing over to LED lighting fixtures. Chrysler looks at how its dealers are doing in energy efficiency, waste recycling, wastewater control, bulk oil containment, vehicle lift maintenance, and community relations program.

The Chrysler dealers are based in 21 states, with four of them being in Michigan and four in Florida; California, North Carolina, and Texas each have two dealers recognized this year. They were selected based on data from dealership online surveys and in-dealership notes.

As for vehicles, Chrysler Group hasn’t done much at all in the green space. It is testing out some plug-in hybrid Ram pickups and a few other concept models. Parent company Fiat has introduced the Fiat 500e electric car to the US market; some say it’s a “compliance car” in California, but it does seem to be getting a good deal of interest from car shoppers.

National Automobile Dealers Association is in the process of having dealer members provide data in a benchmarking study through the US Environmental Protection Agency’s Energy Star program. They’re asking dealers to take a survey that will give EPA a benchmark to compare energy usage of dealers across the country, and to allow for certification of those dealers that perform well. Dealers are sharing their utility bills, total square footage, and different types of equipment being used at the dealership.

The NADA and EPA relationship goes back to 2007 in what’s called the Energy Ally program that was designed to help dealers reduce their energy consumption. Dealers are being educated on energy reduction and cost saving opportunities and strategies. KPA, a dealer services and internet marketing provider, now has an alliance with NADA through Energy Ally. KPA and other companies are helping NADA to benchmark at least 500 dealers on their energy usage.