HYPE! Yes, according to a pimptastic Morgan Stanley report [via BusinessInsider], Tesla is about to become “the 4th American Automaker,” despite the fact that it hasn’t actually built a car in any kind of volume. The report enthuses

The confluence of structural industry change, disruptive technology, changing consumer tastes and heightened national security creates an opportunity for significant new entrants in the global auto industry. California dreaming? We don’t think so. In our view, the conditions are ripe for a shake-up of a complacent, century-old industry heavily invested in the status quo of internal combustion. The risks are high. So is the opportunity. Enter Tesla.

Did you just throw up in your mouth a little? Don’t worry, there are highly convincing charts to help you learn to stop worrying and love the auto industry’s answer to Apple. After all, when it comes to Tesla, charts always tell the whole story.

Somebody must have slipped Fiat-Chrysler CEO Sergio Marchionne some Sodium Pentothal as an April Fools joke, as he’s just topped his previous high-water mark for ill-advised candor (set earlier this week). Automotive News [sub] quotes the feisty CEO admitting

The economics of EVs simply don’t work. On the 500 that (Chrysler) will begin selling in the U.S. next year, we will lose over $10,000 (per unit) despite the retail price being three times higher [than the gas version].

Bloomberg reports:

Designers and engineers are working on a version of the plug-in hybrid Opel Ampera, which was modeled after the Volt and scheduled for sale in Europe this year, with a Buick grille and front-end styling, said the people, who didn’t want to be named because the plans are private. The Buick version would begin sales in 2013 if it gets final approval, the people said.

In theory this is a brilliant plan. Since capacity constraints are limiting production right now, GM might as well get its profit while the early adopters are still in the market. On the “not so brilliant” side of the equation is the fact that the most basic Volt already costs upward of $40,000. At that price point, how will they possibly tempt buyers up into a rebadged Opel version of the same car? On the other hand, there’s no automaker in the world that manages to associate itself so consistently with flailing brand management as does GM. Case in point, the Saturn “Flextreme” concept of 2008 pictured above. Meanwhile, this comes as no news at all to our friends in China.

“After Fukushima, I am not sure how any politician in any modestly democratic republic is going to sell a new nuclear power plant to any general population.”

“Would you like the job of trying to sell a new nuclear plant to your electorate?”

“There is one terrible casualty in all of this: The electric car. When they make part 2 of Who Killed the Electric Car? the answer is going to be plain and clear: Fukushima killed the electric car.”

From the LogicalOptimizer blog, just one of many that currently say the same. Read More >

Good news! Google Maps will now point you to the nearest “electric car charging station” if you search for same, reports CR.

[Google] is working with the National Renewable Energy Laboratory, which is developing a database of available charging stations (known as EVSEs, or electric vehicle supply equipment) around the United States. Installers of EVSEs have the option of having their stations displayed as public. When we were charging the Nissan Leaf at our facility, not a public venue, our chargers showed up on the Leaf’s navigation system; The navi in the Leaf is designed to remember sites at which it had been charged.

The bad news? Well, just look at that map. Unless you live in California, you don’t need Google to tell you where the nearest charging station is, you need a clairvoyant to tell you where one might someday be built. If you’re still struggling to understand why EVs need to be tested on a local level before the federal government spends more money subsidizing them on a national level, look no further.
[UPDATE: The screen grab above is not comprehensive. Surf over Google Maps for a closer look at EV charging stations in your area]

President Obama’s goal of having a million plug-in vehicles sold in the US by 2015, like almost every other political goal these days, has become a divisive issue. For ever American who sees it as a courageous step away from oil addiction or ecological disaster, another sees it as market manipulation or a fool’s errand. But like most political debates, the row over government encouragement for plug-in vehicles serves more as a venue for other political cold wars (typically global warming and fiscal policy) than as a way to move towards a sane, equitable strategy. And, argue to the authors of a report that points out the poor chances of success for Obama’s goal, the political discussion over EV subsidies will stay stuck there until we figure out a lot more about who buys EVs and why. The problem: there is no national demonstration program to collect the data on which a real conversation about EV subsidies could be based.

Read More >

The whole BMW-goes-front-drive thing has come as somewhat traumatic news for a number of Roundel fans, and at first blush, you’d think this camo’d BMW i3 would only stoke these fans’ fears. At least with its camo on, it’s a funky, decidedly un-BMW-like shape, all stubby nose and high, rounded roof. Think MINI meets Audi A2, and you’re getting there.

But unlike the other i-branded BMW that’s been winter testing, the i3 immediately identifies itself as an heir to its brand’s sporting legacy, kicking out its rear end in the Swedish snow. That’s right: despite the MINI-esque looks, the i3 is no front-driver, as its BMW-designed and built electric motor sits under the trunk and drives the rear wheels. Add a carbon fiber reinforced plastic body and possibly a range extender to the mix, and you’ve got one compelling (if expensive) little subcompact, rear-drive EV proposition…. and it looks like it’s a hoot in the snow. The i3 may not help BMW fans get over their front-drive phobia, but it should help bust the perception that EVs have to be mundane.

It appears that the Renault EV espionage case crazy train has rolled to a halt, as the FT reports that CEO Carlos Ghosn and his right-hand-man Patrick Pélata have apologized to the three executives they accused of spying. According to a Renault press release,

Mr Ghosn and Mr Pélata now plan to meet the executives, promising compensation for “serious prejudice” to their reputations and careers

And according to BusinessWeek, Mr Pélata will likely be offering his resignation today, as

Renault called an emergency board meeting for 4 p.m. local time that may lead to sanctions against managers involved in the case, two people familiar with the matter said. Prosecutors yesterday issued “organized fraud” charges against Dominique Gevrey, the security chief whose internal investigation led to the firing of upstream development chief Michel Balthazard and two other executives.

But, as AN [sub]’s James Treece puts it, Pélata likely won’t stay unemployed for long, as being fired for loyalty is almost a positive in the super-competitive world of high-level auto executives. The mystery now: did Mr Gevrey simply attempt to defraud Renault, or was he part of a coordinated effort to destabilize the French automaker? Gevrey won’t reveal the source of his information about espionage inside Renault, but we may yet learn more about this strange farce if he cracks under investigation.

[UPDATE via AN [sub]: Ghosn and Pélata plan to give up their 2010 bonuses and profits from 2011 stock options after they had to apologize publicly to the three men earlier on Monday, Renault said in a statement.]

Having struggled to launch and expand its Smart brand, Daimler might be forgiven for being a bit gunshy about investing in brands other than its globally-recognized Mercedes-Benz marque. And it seems the German outfit is currently agonizing over not just one but two big brand choices on the opposite ends of the automotive spectrum. First, Auto Motor und Sport reports that Daimler’s bosses are still undecided about the fate of the über-luxury Maybach brand, noting

“We have to do this year, because the model cycle is not endless,”  Daimler CEO Dieter Zetsche tells Auto Motor und Sport. Here, the decision is open, even though the Maybach models are profitable. “I hope for a positive decision as long as we can create the proper conditions. We have invested heavily in the brand, but that is past. On the other hand, we now enjoy a very attractive profit margin on a per-car basis.”

If there’s one major challenge facing Maybach, Zetsche admits, it’s European emissions standards. Which is where Daimler’s other branding problem comes in…

Read More >

Within days of breaking, the Renault Spy Scandal has been in “full reverse,” and now it seems the story is becoming even more embarrassing than we had even imagined. The last time we looked at the case, Bertel forwarded two possible theories for the “farce”: either Nissan-Renault CEO Carlos Ghosn wanted a distraction from a soft Nissan Leaf EV launch, or someone inside the company wanted to sabotage Ghosn. Now a new theory takes the farce to nearly unimaginable levels…

Read More >

The Freep reports

General Motors plans to add a second shift worth as many as 1,000 jobs to its Detroit-Hamtramck plant late this year, as the automaker prepares to ramp up production of its Chevrolet Volt extended-range electric car.

Current plans have second-shift workers arriving for training late this year and starting production in earnest in early 2012,

Now, it makes sense that any “more assembly jobs are coming” story would play big in Detroit, but does this mean GM has its suppliers lined up for a second shift of Volt production? Can the market support the increased volumes GM has been talking about (25k instead of 10k this year, 60k+ instead of the planned 45k next year)? As it turns out, those questions haven’t actually been answered yet…

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Tesla has made much of the fact that its next model, the Model S sports sedan, will be half the price of its $110k Roadster and be built in far greater volume… but it turns out that both of these goals are going to take just a little bit longer than Tesla thought. Though the Model S will be offered at a base price of $57,400 with a 160 mile range, that version won’t be built until after the firm produces its first 1,000 units. Those first thousand models of the 5,000 unit 2012 production run will be loaded “Signature Series” models that will cost at least $77,400 (the base price for all Model S versions with 300 miles of range). According to Tesla, versions with a 230 mile range will start at around $67,400.

And with 20k units of production planned for 2013, Tesla had better not run into any delays as it won’t build its firs “production intent” (known internally as “Beta”) models until late this year. That gives the firm only about 6 months to validate the production-intent version, tool up and build the thing for its mid-2012 launch. And with a first run of expensive, loaded models planned, customers will definitely expect the kinks to have been worked out. This is going to be interesting…

Ever since the Renault spy story broke, we had our doubts. It simply did not pass the smell test. Now, the smelly stuff is hitting the fan. “France faced severe political embarrassment on Friday after carmaker Renault said the three top executives it sacked for industrial espionage in January might not be spies after all,” reports Reuters.

In an interview with Le Figaro, Renault COO Patrick Pelata, the man who was the driving force behind the scandal admitted: “A number of elements lead us to doubt.” He is not alone in his doubts. Read More >

When, in a former life, I wrote speeches for top execs at Volkswagen, I never made my guy admit failure. Bad for his career and my business. The secret phrase for full retreat was: “This is one of the many options we are looking at. We are in a changing world and must change with it.”

I must have a less circumspect colleague at Ford. Read More >

Thinking about getting an EV? Better move to a balmier state.

“It turns out batteries are like people. They love room temperature,” Bill Wallace, director of Global Battery Systems at GM said at an energy forum at the University of Chicago. He had come under fire, ammunition courtesy of Consumer Reports which said its tests showed the battery’s range of the Chevy Volt would last only 23 to 28 miles in cold weather. Read More >