Range anxiety. The performance angst and penis envy of the new millennium. So you want to be nice to the planet. You no longer want to desecrate dead dinosaurs. You want to plug in and tune out.
But you also want visit grandpa and grandma who live 150 miles away, and you don’t want to overstay your welcome with an orange cord dangling out of the window. What to do? It’s so simple, that we wonder why nobody has thought of it: Read More >
It’s difficult to compete globally when governments try to pick the winning technologies and the direction changes from administration to administration… the U.S. government is going a bit too far in trying to dictate the powertrain technologies of the future.
BorgWarner CEO Tim Manganello tells Green Car Advisor what he really thinks of the billions of government dollars that have gone into the electric car industry of late. And though the supplier boss clearly has a personal interest in non-EV efficiency solutions (namely dual-clutch transmissions which require some kind of combustion engine), he’s also got a point. Why is the government lavishing unproven (luxury) startups like Tesla and Fisker with hundreds of millions in federal largess, while doing next to nothing to increase the market penetration of proven technologies like clean diesel or natural gas?
Earlier this week, Tesla reported a $38.5m Q2 net loss, up from its $29.5m in the first quarter of the year. The good news was that revenue rose by about $8m over Q1, to $28.45m, but development and selling/general expenses rose countering the higher receipts. Other good news came on the Model S front, as Tesla claims that body and powertrain development is complete for the forthcoming sedan. But with the company losing about $5 per share (currently valued at $19.70 each), there’s more bad news coming. In a piece at Wired Autopia, Tesla’s former PR boss Darryl Siry points out that a key revenue stream for Tesla is being closed.
Tesla cars are still hard to get and hard to find, but it’s not for a lack of international distribution. Soon, it will be easier to buy a Tesla out of the country than in the country. From April to June, Tesla Motors opened showrooms in Copenhagen and two other parts of the world, reports The Nikkei [sub] By the end of the year it plans to open three more showrooms in Tokyo, Paris and Milan.
Well, the debate over the viability of the Chevy Volt has been well and truly joined, as political and auto writers around the web spent the last week weighing in on the issue. Needless to say, a scan of these opinions shows that my NY Times Op-Ed has drawn a wide variety of reactions, ranging from complete agreement to utter contempt. But, in a phenomenon that seems all-too common on the internet these days, very few commentaries on my opinion (positive and negative alike) bring more detail or nuance to the issue. Which is too bad, because I’d be the last person to argue that I’m capable of doing complete justice to an issue as complex as the Volt in only 900 words. The variables and unforeseeable consequences floating around the Volt’s future are so vast and varied, no writer could possibly hope to cover them all. And one such problem didn’t even emerge until the day after I wrote the Times Op-Ed: dealer markups on the Volt.
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You can watch Ed Niedermeyer here if you didn’t already watch him live. Great show, Ed!
If you want, and if you don’t feel discouraged by Ed’s op-ed piece in the New York Times, you can go to your friendly GM dealer and pre-order the 2011 Volt for an MSRP of $41,000 (before a $7,500 federal tax credit). A 36-month lease costs $350 a month, with $2,500 down. Bring a cot, we are given the impression that there are long lines at the dealerships. GM’s spokesman David Darovitz told Automotive News [sub], that based on customer reactions, GM expects demand for the Volt to exceed the 10,000 units it will build between its launch and the end of 2011. Read More >
This could be the week that separates the electric hype from the electric truth. Real EVs get in the hands of real drivers for real reviews. Our Dan Wallach drove the Tesla Roadster. Our very own Ed Niedermeyer wrote his “GM’s electric lemon” review of the Chevy Volt for the New York Times. (He didn’t really drive the thing, but the article really drove some to drink, up the wall, nuts – their choice, it’s a free country.) And Joseph B. White of the Wall Street Journal laid his hands on a real Mitsubishi i-MiEV, for a real life test drive under the grueling conditions found within the Washington Beltway. Read More >
Noticed that things have been a little slower around here this week? Yes, well, it’s summer and I’m much harder to motivate in the summer. Also, I’ve been working on this op-ed on the Chevy Volt for the New York Times. My conclusion on the Volt?
In the end, making the bailout work — whatever the cost — is the only good reason for buying a Volt. The car is not just an environmental hair shirt (a charge leveled at the Prius early in its existence), it is an act of political self-denial as well.
If G.M. were honest, it would market the car as a personal donation for, and vote of confidence in, the auto bailout. Unfortunately, that’s not the kind of cross-branding that will make the Volt a runaway success.
The idea behind the Automotive X-Prize was to prove that 100 MPGe (miles per gallon equivalent) is attainable in practical, daily-driver-type cars. And with competition moving into the final stage, 15 cars are still in the running. But how good are those cars actually? With only $10m in prize money, the X-Prize attracted few established OEMs to the competition, and as a result only a single car has made it through to the finals in the Mainstream class. This class was the main focus of the competition, as its requirement that each car “must seat at least four passengers, have four wheels, and have a minimum 200 mile range” meant Mainstream entries could be alternatives to “real cars.” Instead, the competition is being dominated by the “Alternative” class (two passengers, 100 miles range and any amount of wheels), which was included to open the competition smaller teams. And despite the fact that most of the entries had few restrictions on their designs, you might assume that they have performed impressively. The numbers, however, paint a very different picture.
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Some folks are convinced that EVs are taking over the world. So convinced they are that they are already publicly worried about peak Lithium. Lithium is found in unstable places. An internal Pentagon memo states that Afghanistan could become the “Saudi Arabia of lithium,” writes the New York Times. Then there are distressing news that countries like Chile, Bolivia and China sit on piles of lithium. Should we be worried? Nein, says a study from Germany. Read More >
With Chevy’s Volt priced at an eye-popping $41k before tax breaks, those tax breaks are now more important than ever. The first 200k Volts will qualify for up to $7,500 in federal credits, but Chevrolet had to be hoping for state incentives on top of the federal credit, especially in the key launch state of California. For a number of reasons though, the Volt doesn’t meet California’s requirements for Advanced Technology-Partial Zero Emissions Vehicles, and will lose out on a $5,000 tax credit that’s available to its cheaper competitor, the Nissan Leaf. As a result, the Leaf will cost Californians who qualify for both full credits about $20k, while the Volt will cost about $33,500. Moreover, the Leaf will have full access to California’s High Occupancy Vehicle lanes while the Volt will not, unless a pending bill before California’s state Senate passes. Together, these developments represent a serious advantage for the Leaf over the Volt in what is almost certain to be the world’s largest market for electric cars in the short-to-medium term. So how did GM let this happen?
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Have we scrutinized all the issues behind what they’re doing? Not really. My feeling is that a manufacturer-owned store as a business model violates the spirit of the state law here. But not a single person is complaining about it, and it’s kind of a back-burner thing for us. I imagine that if we start getting complaints from our membership, we would move it up to a front-burner thing
Tim Jackson, President of the Colorado Automobile Dealer Association tells Automotive News [sub] that Tesla’s non-franchise dealership in Colorado is not a long-term strategy, despite the company’s avowed desire to do without dealers. Well, franchised dealers, anyway (state law allows one OEM-owned dealership, and lots of EV tax breaks). Tesla admits (in its prospectus, no less) that wanting to own its own dealers will cause problems in Texas, but in the unlikely event that Tesla becomes a viable automaker, it’s easy to imagine a number of states putting up barriers to the franchise-free strategy. Especially since what we do know about Tesla’s dealer model plan is… highly irregular.
This, ladies and gentlemen, is a moment we’ve been waiting for for some time… which might explain why the news isn’t particularly earth-shattering [press release here]. Yes, believe it or not, the Volt will cost $41,000 base including destination charge, just as every bit of speculation has indicated since the Volt was first announced. Perhaps more surprising is GM’s announcement of lease deals starting at $350/month for 36 months with $2,500 down. But just as GM has found with its CTS, moving high-cost American-branded metal in any kind of volume tends to require heavy dependence on leases. Plus, the fact that the big question mark surrounding EVs in general continues to be long-term battery life makes leasing the obvious option for those who are tempted by the Volt, but don’t want own a lot of expensive, unproven technology. On the other hand, the Feds don’t subsidize EV leases, and with a Federal tax credit, the Volt’s price drops to a mere $33,500… which is less than a thousand dollars more than the Nissan Leaf’s base price (without tax credit, $25,280 with). Obviously the Volt has certain advantages due to its EREV design, but with the economy still shaky, the Volt’s hefty price premium will work against it, especially as volume builds. Seeing how these two very different EVs do relative to one another will make for some interesting lessons about the future of the electric car.
Two robots are retracing the tracks of Marco Polo and are on their way from Italy to China. The two heavily modified driverless Piaggio Porter Electric vans started last week in front of of the Milan Cathedral. By end of October they are expected to arrive in Shanghai after having driven 8,000 miles, all the way through Siberia and the Gobi Desert, all by themselves, untouched by human hands.
Well, kind of. Read More >
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