California has backed up its strict emissions standards for years now with a $5,000 tax credit for electric, hybrid and fuel cell vehicles, which when combined with a $7,000 federal tax credit can often make those vehicles nearly as affordable as “regular” cars. But, reports Automotive News [sub], that state credit has fallen victim to California’s budget woes and oversubscription, and has been cut in half from $5,000 to $2,500. According to the report:

high demand exhausted the program’s funding last month. The Los Angeles Times reported Thursday that about 500 consumers who bought electric cars such as the Nissan Leaf or Tesla Roadster are on a waiting list and will collect the $2,500 rebate.

To deal with growing demand, the pool of money to fund the rebates was increased to between $15 million and $21 million for CARB’s current fiscal year ending June 30, 2012, according to CARB’s announcement. A total of $11.1 million was allocated in the program’s first two years, according to CARB spokeswoman Mary Fricke.

The increased cash pool and lowered rebate amount are aimed at making the incentive available to more consumers, according to CARB’s Web site. The changes are projected to fund about 6,000 rebates for consumers who apply for the program on a first-come basis, Fricke said.

Now California “green car” intenders not only get a reduced tax credit, but they also don’t get free access to the HOV lane anymore. It’s almost as if California wants “green” vehicles to succeed or fail on their own terms…

The Michigan Congressional delegation’s letter, stating that the Detroit-based automakers are not technologically capable of serving the market while complying with a proposed 2025 CAFE standard seemed strange to me in light of the recent progress made by Ford and GM on fuel economy. Why, I wondered, would these firms boast of their fuel econmy efforts on the one hand while allowing their congressional representatives to portray them as unable to build a CAFE-compliant fleet on the other. Why, I wondered, don’t Ford and GM come out and angrily insist that they can build the most fuel efficient cars in the world? My guess: because they know that they can probably wheedle a loophole out of the feds if they keep pleading inability. Yes, everyone knows they can comply with CAFE… but even the UAW knows that when the government asks you to do something, you ask for something back. Which in turn made me wonder: what might the OEMs want? And, turning to the 2012-2016 CAFE Final Rule [go on, give it a read in PDF format here], I found a glaring loophole that all the manufacturers seemed to want, but which the feds turned down. I have no evidence that this is back on the table for 2017-2025, but I thought I’d put it out there to give a sense of what the OEMs may be pushing for by  pleading inability to comply with the proposed 2025 standard.

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When I was a very young and very green copywriter, Dr. Carl Hahn, at the time CEO of Continental Tires and later CEO of Volkswagen, said in an agency brief: “We lose 10 Deutschmarks on every tire we sell.”

“Then we better stop advertising them,” said I.

Hahn gave me a pained look. The look was followed by real and massive pain in my left foot, because my Creative Director had kicked me viciously.

“Ouch!” I said.

“You’ve got that right,” said Hahn.

That little story crossed my mind when I read in The Nikkei [sub] that “Mitsubishi Motors Corp.’s electric vehicles and other eco-friendly offerings are expected to begin contributing to the firm’s bottom line in two years.” Read More >

Would you be a little bit surprised if the man behind this tiny, funky little electric van was the man who styled the VW Passat CC and first-generation Mercedes SLK? Well, Murat Günak has been heavily into the electric car game since leaving Volkswagen, having designed one of my favorite EVs, the fresh-and-freaky Mindset. But even though the Mia and the Mindset seem a little more in the same vein, Günak has actually moved well past the Mindset’s super-high-end positioning, as this Mia is set to sell for the lowest price of any EV in the EU, starting at €19,500 ($28k). For comparison, Mitsubishi’s iMiEV (the cheapest EV in the US market) sells for €34,390, or nearly $50k… although its European price is set to drop to closer to €15k when production ramps up.

But the Mia isn’t just (relatively) inexpensive… it’s downright cool. Built by the French firm Heuliez in either 9.4 or 10.5 foot lengths (the latter with 53 cubic feet of cargo space), it comes with a McLaren F1-style central driver’s seat and doors designed to operate in tight urban conditions. With a range of only 60 miles and a top speed of only slightly more than 60 MPH, it’s strictly an urban runabout, but as a small business delivery vehicle it seems to hit a lot of the right buttons… especially the three-hour charging time (an 80-mile-range battery is optional but takes five hours to charge). Production hits 10,000 units next year, when sales to private customers begin. [via Autobild]

In my review of the VW Golf blue-e-motion on Tuesday, I noted that “the holy grail of EV development is a multi-speed transmission,” but that nobody has been able to build one that can reliably handle the 100% torque at zero RPM characteristics of an electric drivetrain. Tesla tried two different multi-speed transmissions (from X-Trac and Magna), before giving up and going with the single-speed setup that every production EV now uses. Nobody has even talked about a multi-gear EV since… until now. With Fisker’s Karma about to go to market, CEO Henrik Fisker tells Autocar that his firm is developing a multi-speed EV gearbox, and that it would improve performance in EVs like the Karma, saying

With the torque at the wheels increased by the use of a gearbox, Veyron levels of performance should be possible.

We’re as excited as anyone else by the idea of an EV with shiftable gears, but this sounds more like Fisker trying to drum up some hype for the Karma launch. After all, the Karma launches to 60 MPH in a leisurely 7.9 seconds in “stealth” (EV) mode and 5.9 seconds in “sport” mode with gas power to up the wattage… a far cry from Veyron performance. As C&D puts it:

The Karma’s initial surge is sufficiently potent to avoid damnation as a slug. But the physics conspire against it keeping pace with other $100K sports sedans.

Lugging over 4,000 lbs is certainly easier with a multi-gear transmission, but given the reliability challenge, we’d be more likely to trust an EV transmission from a reliable supplier rather than a boutique luxury PHEV maker. And until Fisker can back up the Veyron reference with some hard evidence, we’re filing this one under “intriguing but unlikely.” Still, it’s exciting to know that this technical challenge is still out there, unconquered by major manufacturer or feisty startup… in a world where cars are becoming increasingly mundane, the multi-gear EV transmission challenge is a throwback to the golden years of automotive development.

Tesla will begin supplying Toyota with components for its electric RAV4 a year earlier than previously planned, reports Bloomberg, a move that will have Toyota paying $100m for the drivetrains rather than the previously-agreed-upon $60m. According to a Tesla SEC filing, the EV specialist firm will supply Toyota with

a validated electric powertrain system, including a battery, charging system, inverter, motor, gearbox and associated software which will be integrated into an electric vehicle version of the Toyota RAV4. Additionally, Tesla will provide TMC with certain services related to the supply of the Tesla Battery and Powertrain.

There’s still no word about how many of these RAV4s is Toyota planning on selling over those two years, or where will they be assembled, but it sounds like Toyota isn’t trying to launch quite the EV offensive that some green car blogs seem to be hoping for. As one analyst puts it to Bloomberg, $100 million “isn’t a huge amount for Toyota, so this allows them, with only modest downside risk, to participate in what Tesla is doing.” That sounds about right…

My, what a busy morning it’s been for EV news! Now Nissan is jumping into the fray by bumping the price of its 2012 Leaf EV by $2,420, reports Automotive News [sub]. But don’t worry, you’re getting something for that extra money…

Compared to 2011 model year’s $33,630 base price, including delivery, the 2012 model will begin at $36,050. The car’s upper-grade SL model will sell for $38,100, an increase of $3,530 over 2011.

Brian Carolin, Nissan North America Inc. senior vice president of sales, was to tell an electric-vehicle industry audience in Raleigh N.C., this morning that the 2012 model will contain two new standard features, according to his prepared remarks.

One is a cold-weather package that includes heated seats and steering wheel and a battery warmer. The other, available on the car’s more expensive SL model, is a standard quick-charge port that allows the vehicle to be recharged up to 80 percent of capacity in under 30 minutes.

So, just as Toyota goes public with its fears about the ChaDeMo DC rapid charge protocol, Nissan doubles down on the standard by offering compatibility on the higher trim level (incidentally, Nissan says that 93% of sales are of the upmarket SL trim, and “most” customers opt for the optional ChaDeMo DC charging compatibility). As if raising prices by over two grand after less than a year of sales weren’t risky enough, Nissan is also gambling that ChaDeMo will win out when the SAE rules on a DC fast-charging protocol for the US market. At this point, it almost seems as if the charger compatibility issue might be more of a risk than tthe price…

Last week I wondered aloud about where the UAW stands on fuel economy, inspired by the union’s apparent flip-flopping between supporting the companies that employ its workers and backing its environmental allies on the left with talk of its commitment to green jobs. And after expressing concern about proposed CAFE increases, it seems the UAW is flopping back towards the environmentalist side of the equation, joining the so-called “Blue-Green Coalition” of labor leaders and environmental groups in expressing its vague support for “strong” emissions standards in a letter to President Obama [PDF]. But with CAFE negotiations coming down to within 5 MPG or so of a final “number” for the 2052 standard, the letter’s lack of commitment means it’s still not clear where the UAW comes down in the policy debate. So instead of highlighting the union’s commitment to the environment, the letter ends up serving as a window into the UAW’s cynical, yet self-deluding side.

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Toyota may not be making pure EVs widely available next year as some outlets are reporting, but it will start offering a different kind of plug-in car in 2012. We’ve already heard about Toyota’s experiments with a bi-directional charger that could serve as a backup power source for your home in an emergency, but Toyota is taking the car-as-powerplant theme a bit farther next year, as Automotive News [sub] reports

Next year, Toyota Motor Corp. will start offering AC electric outlets as an option on its popular Prius hybrid so drivers can plug in household appliances — from computers to refrigerators.

The idea was born from watching victims of Japan’s March 11 earthquake using the Toyota Estima hybrid van as a source of emergency electricity when the power was knocked out.

It is the only Toyota model currently offering a standard AC outlet.

But Toyota wants to add them to the Prius next year and eventually across the hybrid lineup. One hitch: It will be offered only in Japan initially. Concerns about different voltages and safety regulations are keeping the technology off export models at least at the start.

Toyota may be only offering the system in Japan at first, but this step offers a fascinating insight: clearly Toyota believes consumers would rather take electricity out of their cars than put it back in. It’s a new interpretation of the plug-in concept and one that, as a blogger who’s always looking for on-the-go laptop power, I can certainly appreciate.

UPDATE: Toyota confirms:

Recent reports have incorrectly stated that the 2012 RAV4 EV will only be marketed to fleet and car sharing programs.  We’d like to set the record straight.  The 2012 RAV4 EV will definitely be sold to the general public.  We anticipate robust public interest in the RAV4 EV and are keen to inform consumers that their future vehicle options include a battery electric Toyota.

Toyota is the only manufacturer bringing two battery electric vehicles to the market in 2012 – the RAV4 EV and the Scion iQ EV.  While the RAV4 EV will be available to the public, the Scion iQ EV will be marketed to fleet and car sharing programs only.

A number of major auto outlets got clowned yesterday when a Pike Research blog item seemed to quote Toyota Business Planning Manager of Advanced Vehicle Marketing Geri Yoza as saying the Tesla-developed RAV4 EV would not be sold to private customers, but would distributed to fleets and car sharing services. Not so, it turns out, as Toyota has corrected the Yoza quote by confirming that only the electric version of the iQ city car will definitely not be offered for public sale. But by the time Pike Research got its facts straight, the misinformation had ben regurgitated by the biggest names in car blogging, and had even made its way over to the other side of the Atlantic. The worst part: the real issue brought up in the Pike Research piece was largely lost in the autoblogosphere’s rush to prove Mark Twain’s adage that “a lie can travel halfway around the world while the truth is putting on its shoes.” And, as usual, the slow-dressing truth is a lot more interesting than the globe-trotting lie…

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It’s been 27 months since I wrote a check for $5,000 to Tesla Motors, my deposit on a Model S sedan. As owner number P717, I’ve gotten some modest bennies to keep me interested till the expected delivery date of mid-2012: a test drive in the Roadster, an invitation to the opening of the New York Tesla store, and some nice promotional swag (T-shirt, coffee mug, and, most recently, a cool little remote-control toy Roadster) .

Last week I was invited to an owners-only preview before a Model S promotional event in Greenwich, Ct. Set in the posh clothing store Richards, just across the street from an Apple store, the event featured a sinuous dark red early proof-of-concept prototype of the Model S. Unfortunately, we weren’t allowed to drive, sit in, or even touch the car (“It cost more than $2 million to build,” we were told). But the black-clad Tesla reps on hand offered some intriguing technical info about the car that, to my knowledge, had not been previously revealed. Among the more interesting tidbits:

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The European Commission’s competition authority has a problem:

The Commission had to launch a formal investigation into aid for a large investment project by BMW for the manufacturing of electric cars. The formal investigation will allow the Commission to gain an insight into the emerging market of electric cars, a market for which it has not examined regional investment aid before.

A subsidy is a subsidy is a subsidy, right? Apparently not…

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The transition from exclusively gasoline-powered vehicles to the new panoply of permutations of gas and electric power has not been easy on the old emm-pee-gee. The imperfect-yet-universal (in the US market) measure of efficiency finds itself at a loss to compare an electric car’s efficiency with that of a gas-powered car, and completely falls apart as a relative measure of efficiency between plug-in-hybrids which use gas and electricity in different ways (see the ongoing battles over the Chevy Volt’s efficiency). Into the breach have stepped several challengers to the emm-pee-gee’s supremacy, including the weak MPGe (which was responsible for the Volt’s disastrous “230 MPG” introduction), and the “Kilowatt-hours per 100 miles” measure championed by Motor Trend in a rare display of admirable pointy-headedness. But the Gordian contradiction of efficiency measures is that they must be both accurate and easy-to-understand… and if the MPG’s history tells us anything, it should probably err on the side of the latter prerogative.

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End of the year, Europeans can delight in the Made in America Opel Ampera, which is a rebadged and slightly reskinned (see picture) Volt. But don’t rush to your friendly Opel dealer to put in your pre-order: The Ampera is already sold out. Read More >

Fortune [via CNN]’s Alex Taylor III is clearly as disappointed as I was with Joe Nocera’s toothless, vaguely pro-Volt piece in last Sunday’s NY Times, and he’s riled up enough about it to lay down a savage call-out the Volt hype machine. In fact, it’s a less scientific, less comprehensive (and, by virtue of the passage of time, less speculative) version of a piece my father wrote in 2008, comparing the then-undelivered Volt with the also unlaunched 3rd gen Prius and Plug-In Prius. Taylor’s foil for the Volt is the plug-in Prius, which now arrives in less than a year, and in the eyes of the longtime industry writer, the contrast is stark:

Volt enthusiasts like to recite the fact that the Volt can go 35 miles on battery-power and then shift seamlessly into gasoline-engine mode, saving on gas and reducing emissions of greenhouse gases. It is an impressive technological improvement but one that is already obsolete.

Here’s why:

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