There was a time when $10m seemed like a lot of money.  It still does to me personally, but on the scales of corporate and government finance it is, well, almost nothing. Lest we forget, Ford’s lining-up for its share of $25b in low-interest loans provided by you [via The Department of Energy] to retool its way out of a sea of red ink (in theory). Meanwhile, the AP dutifully reports that Ford’s receipt of a $10m Department of Energy grant to cover half the cost of a planned 20 vehicle plug-in Escape test fleet. “Ford is working on a three-year project to demonstrate the vehicles and understand how they will interact with utilities around the country, a key step in commercializing cars that can be recharged by plugging into a standard wall outlet.”  At one million bucks per test vehicle, they’d better be good!

Silicon Valley vs. Detroit for THE CAR OF THE FUTURE. Nice story. Geeky David vs. Creaky Goliath. Only building a car is one thing. Building a hundred thousand is quite another. And not only did Tesla fail to build the first customer car anywhere near its oft-delayed deadline, but its production is still a lot closer to single digits than triple. But hey, a Prius is a gas-guzzling hog in comparison with Tesla’s car. Apparently. Anyway, Leslie Stahl applies some serious journalistic chops to the story, reporting that the Roadster travels [an unconfirmed] 200 miles between charges and requires four to thirty hours to rejuice. Hey did GM Car Czar Bob Lutz say Silicone Valley? I’m not sure. But Leslie’s happy to say “crock of shit” on TV– which is more than Maximum Bob was willing to do re: his opinion on gflobal warming. But Stahl’s real F-bomb comes when she glibly provides a reason why Silicon Valley might have the edge over Motown: “But Detroit is broke.” Ethanol industry types must also have choked on their Manhattans when Stahl pronounced corn juice a last big thing. And for what it’s worth, Bob Lutz stakes his reputation on the Volt.

Watch CBS Videos Online

Watch CBS Videos Online

Take that, GM. Formerly-sick car company Mitsubishi Motors has a working electric car; they’re already testing a fleet of a few hundred units in Japan. The Mitsubishi innovative Vehicle promises a 75mph top speed and a 100 mile range. It’ll take seven hours to recharge the battery using a normal socket (220V). If you’ve got high voltage, figure an 80 percent recharge within 30 minutes. Being a totally new car, the iMiEV benefits from the packaging advantages inherent to electric propulsion. The Li-Ion batteries are located beneath the passenger department, and the small electric engine is rear-midships. Thus, despite a sub-four meter’s length, it’s roomy enough for four. The Innovative Vehicle’s interior is airy but spartan/simple– no expensive materials for a lightweight car that wants to be affordable for commuters. I could only take the Mitsu EV for a few-minutes’ spin in a parking lot, so I can’t verify any of company’s range or speed claims. But acceleration is strong, smooth and silent, the steering is pleasant, and it brakes in a solid fashion. It feels like a proper, developed car, not like a prototype. No magic-year nonsense; commercial sales will begin in 2009. If Mitsubishi can keep their performance promises, this one’s a winner, at least for urban early adopters.

Back in the day, I mistakenly asked Gary Witzenburg to write for TTAC. The aftermath was… intense. To this day, Witzenburg remains the only [non-spam] person I’ve ever banned from my email account. Even though I knew Gary was wrapped a little tight on the whole stop picking on the domestic automakers deal, I never suspected that the former GM spinmeister would make an entire career out of defending the indefensible. Nor would I have predicted that he would make Autobloggreen his spiritual home. But there he is, and his most recent rant could well be his magnum opus. Witz begins with a long defense– of GM, the EV-1 and his own career– that puts Richard M. Nixon’s “My Mother Was a Saint” resignation speech to shame. And then we’re off into the lazy journalist’s favorite format: Q & A. A highly edited Steve asks “What I cannot fathom is how all three auto manufacturers fell into the big-car trap. This happened before in the 1970s – fuel prices went up and U.S. automakers were left with obsolete product lines.” Gary responds “Come on, Steve, they’re not making sandwiches.” Seriously, this is a fascinating read, on many levels. Just imagine Jack Nicholson playing Gary Witzenburg, insert expletives where needed (everywhere) and you’re there.

Warren Buffet’s recent investment in BYD has conferred a new legitimacy on a dual parallel-serial hybrid drivetrain, which combines features from both systems. And now VW has revealed its own PHEV third way called “TwinDrive.” Ohne transmission, VW’s concept car uses a small electric engine– powered by a 350 lbs. Sanyo lithium-Ion battery pack under the trunk floor– to launch its Golf testbed to 30 mph. (At which point the gasoline engine kicks in.) Electric acceleration helps overcome the limitations of a single high gear; reverse is electric-only. And drivers can engage an EV-only mode. Motor Trend reports that VeeDub’s testing the TwinDrive system with diesel engines, but gas-powered TD’s are destined for production. Production ICE is said to be a 100hp  turbocharged 1.05-liter turbocharged triple. A smart navigation-based system will calculate energy use priorities, saving battery capacity if urban driving appears ahead on the planned driving route, thus ensuring battery depletion at the destination and keeping the TwinDrive away from gas pumps unless absolutely necessary). The basic components of plug-in hybrid systems seem to have become fairly standardized. But concepts like the TwinDrive show that there are more development options than simply parallel or serial configurations.

China’s Build Your Dreams (BYD) is something of a dark horse in the hybrid/EV game. BYD has leveraged its status as a major manufacturer of NiCad and Li-Ion batteries to create what it calls a unique hybrid drivetrain, shown in a number of derivative concept vehicles, The system purports to offer a Prius-like parallel hybrid mode, a Volt-like serial hybrid mode AND an EV-only mode. Without independent verification, the firm has invited accusations of vapor-mongering. Automotive News [sub] reports that the thinking man’s billionaire Warren Buffet has cast aside such concerns and dropped $230m on a ten percent stake in BYD. “(BYD founder) Mr. Wang Chuanfu has an extraordinary managerial record, and we welcome the opportunity to work with him,” said Buffett in a statement announcing the purchase by MidAmerican Energy Holdings, a unit of his Berkshire Hathaway financial juggernaut. This development gives BYD exactly what it needs: legitimacy. Buffett is well known for investing purely on a firms business fundamentals; his vote of confidence lifts BYD from unknown quantity to potential, yes that word again, game-changer. Meanwhile my home town of Portland, Oregon has been reaching out to BYD in hopes of landing a local production deal. Hope rain doesn’t short-out these things…

After tearing the Volt a new one last week for being expensive, overhyped and incapable of charging its own batteries, Automotive News Editor David Sedgwick is suffering from what we at TTAC like to call a “bile hangover.” After lunching with the suits at RenCen, Sedgwick is back-peddling furiously. And how exactly does the Volt make sense now? Change the badge to Cadillac, baby! Now, I may not get invited to the RenCen for poached salmon with Cadillac GM Jim Taylor, but I’ve already asked why the $40k-ish Volt isn’t being sold as a Caddy. Sedgwick says that the Caddy Volt concept is fueling internal debate between Cadillac’s futurists (who vote aye) and traditionalists (who want a new STS/DTS flagship). Yes, but– if Caddy it is, GM will have wasted hundreds of PR billable hours trying to convince everyone that a $40k mainstream Chevy isn’t an outlandish proposition. And the Volt’s bailout-fodder status requires some kind of volks wagen appeal; while a $40k Chevy is a tough pill to swallow, a taxpayer-funded Cadillac could create a nasty backlash. Besides, Sedgwick’s claim that the Volt would be “the world’s first green luxury car” conveniently forgets the LS600h in the room. Or am I just jealous that I don’t get invited to lunch with Cadillac honchos?

Our fearless leader has noted at least once that a RUF-fettled Porsche Boxster would always have a home in his heart. And though he’s never gone (quite) as far as calling global warming a crock of shit, we think that RUF’s latest eco-friendly offering might just be enough to make him stop worrying and love the environmental movement. Oh, did we mention that the latest Ruf Cayman offering is all-electric? That’s right, the infamous German tuning house is developing a lithium-ion powered mid-engined sportscar that has nothing to do with the Lotus Elise! With 204 hp and 480 lb-ft of zero-rpm torque, the RUF Cayman should hop from 0 – 60 in about four seconds, top out at 120 and have a range of 155-188 miles. Though carbon-neutral drag races with a Tesla might leave the RUF a little chastened (giving up 35kW of power to the Roadster as it does), RUF has an established clientele base and price-poit expectations that Tesla would kill for. Plus, with Detroit Electric, Dodge and Tesla all showing off EV variations on the Elise theme, the Cayman EV stands alone. As an everyday car, it’s also eminently more practical, useable and better looking too. Being a RUF, it will also cost several appendages and depreciate faster than the Zimbabwean dollar. Look for a concept unveiling sometime in October, with production and pricing to be announced.

Chrysler dropped the other shoe, pre-bailout PR-wise. It’s officially official: ChryCo’s ironically named ENVI group is creating three new electric vehicles: a Dodge sports car (based on the Lotus Europa), a Chrysler minivan and a Jeep. Chrysler claims the plug-in models will go into production as a “fleet” of 100 vehicles next year. They’ll go on sale to the general public in that most magic of model years 2010. The quick and dirty: the Dodge sports car is electric-only, with Chrysler claiming a range of up to 150 miles. The Jeep and Chrysler minivan have theoretical ranges of a Volt-like 40 miles, with “small” gasoline engines on board to “power the electric-drive system.” This sounds more like a generator to recharge the batteries, rather than an engine to simply power the car once the go-juice runs out. Recharge time for the sports car is claimed to be 4/8 hours, depending on your household voltage. As for the Jeep and minivan, they would also plug-in to recharge the batteries; the ICE is for long drives only. As for the type of batteries, site of production, or most importantly – price – we have no idea. Chrysler, LLC may not have any idea about those either.

Update: Between the Lines Editorial Posted Here

Though Automotive News [sub] is better known for their comprehensive industry news coverage than their take-no-prisoners opinion pieces, Editor David Sedgwick doesn’t pull any punches while slamming the Volt in a recent editorial. Sedgwick admits to “a queasy feeling that GM has painted itself into a corner by generating so much hype for a car that is too limited for most consumers,” noting that weaknesses in both price point and capabilities will limit the Volt’s effectiveness in the market. The price point issue is well documented, but the Volt’s performance is what worries Sedgwick the most. In particular, GM’s apparent decision to use the E-Flex’s range-extending motor to simply generate electricity and not to recharge batteries looks to be an extremely limiting factor. “If you can’t plug in your vehicle at night,” argues Sedgwick, “that high-tech battery pack will be as useful as an anchor for your bass boat.” Sedgwick reckons that the forthcoming Cruze should be getting at least as much attention as the Volt. “We’ve been down this road before. GM doesn’t need a halo car. It needs a car — a small car — that can make money. If GM can’t learn to make money on small cars, it won’t survive.” Given a choice, Sedgwick would pick the Cruze, and if GM wants to stay in business it would do well to listen. After all, if a man who lives and breathes cars and is well-compensated enough to consider “your bass boat” a folksy analogy thinks the Volt isn’t worth the money, well… you get the picture.

Why would Chrysler unveil its new Electric Vehicles (EVs) on CNBC? Hell if I know. What I can tell you is that is that I can’t tell you the battery type or supplier involved. ChryCo CEO Bob Nardelli claims the suspiciously Elise-a-licious (i.e. Tesla-esque) Dodge EV has a range of 150 to 200 miles and recharges in eight (110 volts) or four hours (220 volts). Prez Tom LaSorda says the “extended range vehicles” (converted Jeep and minivan) will have a Volt-like 40-mile all-electric range (400 mile range in total). Frank Klegon says his mob are developing a system that uses an electric motor in each wheel. And there’s the automaker’s latest Pokemon egg-shaped Neighborhood Electric Vehicle (NHEV). When asked if Chrysler can make these things price-competitive, Nardelli placed his hopes on federal bailout bucks. Which could well be the whole point of the exercise. [thanks to .soL for the link]

Audi’s dabbled in small cars for some time. Not all of their attempts have been successful. Despite all-aluminum construction and clever packaging, the A2 was a flop. Audi is back at it, though, unveiling their A1 city car at the Paris show. Considering Audi’s proclivity for up-to-the-second trendiness, it can’t be long before they announce– and maybe even build– an EV. The model would probably share a basic platform with compact VWs, most notably the VW Up! Concept. Ingolstadt’s boffins would need to elevate the floor to provide battery space. The “service hatch” first used on the A2 could also make a comeback on the EV, especially if we consider that it makes a good place for a plug-in socket. Add some chrome and lacquer finishes, LEDs and optic fiber in the lights, some fancy wheels and there you go: small, electric, trendy and premium.

The mainstream automotive press is all abuzz with the prospect that Chrysler will have a Volt-trumping electric vehicle (EV), or plug-in hybrid, or some damn thing in the showrooms before GM’s highly-hyped Volt. And it’s not just idle speculation; it’s company-fed idle speculation. ChryCo Prez Jim Press did the GM Car Czar Bob Lutz techno trash talking thing with the LA Times. “We’re not advertising a car we don’t intend to sell for five years today,” Press told the Up To Speed (and God knows what else) reporter. “What we’re doing is investing the money to build that car now.” Now as in now? Or now as in later? And will it be the ENVI of GM execs everywhere? The Detroit News can’t answer those questions. But Dan Strumpf reveals the Chrysler reveal will appeal to desperate dealers. His sleuthing indicates there will be a lot of popcorn on polyester come Tuesday. “Chrysler, Dodge and Jeep dealers across the country will get ‘insight into our business strategies’ Tuesday via videoconference at about 100 movie theaters across the nation, Chrysler spokesman Stuart Schorr said.” In high-def no less. How ironic is that?

GM has a long history of offering second rate products that are “nearly as good” as the industry standard, and then telling people to buy them because they’re made in America. The CTS may not be the best RWD sedan on the market, but it’s made in America. The Aveo falls flat compared to say, the Fit, but dammit, you love your country, right? Needless to say, the Volt’s “made in  America” badge is going to be a big selling point as GM searches for those willing to justify dropping $40k on the EREV. Well, the WaPo (a nest of America haters if ever there was one) reports that GM’s Rick Wagoner “refuses to promise” that Volt batteries would be built stateside. “As we sit here today I can’t give you a guarantee that it will be made in the U.S.,” Wagoner said. “If we want to get the Volt in the market, as we do by the end of 2010, we’ve got to make some relatively near-term decisions about how we are going to do all that.” But wait, isn’t the proposed bailout (which will certainly benefit Volt production) supposed to address America’s emerging dependence on foreign batteries? Didn’t Chrysler’s Jim Press frame the bailout in those very terms just a short week ago, saying “right now, the major sources of batteries are other countries. So are we trading our dependence on foreign oil, which is a natural resource, for a dependence on other countries to produce something in a factory? We need to stimulate that development here — here in Michigan.”? By putting the hype before the cars, Detroit is either damnably stupid or wickedly cunning. There’s no doubt that there’ll be some egg on GM’s face for increasing our dependence on foreign batteries, but once they actually build the cars (with help from Uncle Sam) they can bring back the battery independence talking point. Then it will be time for bailout round 2.