Good news for Elkhart, Indiana today, as The Detroit News reports that the Norwegian EV firm Th!nk has chosen the city for its $43.5m US production facility. The plant will have a production capacity of 20k units, once production ramps up from its 2011 start. By 2013, Th!nk says it will employ 415 workers who will build the firm’s City model, a two-seater which will initially cost nearly $40k before government tax breaks. The factory will receive some $17m in state and local tax breaks and incentives. Th!nk hopes to eventually reduce the cost of the City, which has a stated range of 112 miles and a top speed of 70 mph, to about $20k. (Read More…)
While we at TTAC continue to cover the serious, the silly and the sublime from the world of cars in this holiday season, there’s a lot going on behind the scenes. We have a grip of new blog and editorial series in development right now, the first of which we’re debuting today: The Project Better Place Birthwatch. This series will be a collaboration between a new contributor here, Tal Bronfer, who will be monitoring and reporting on Better Place’s Israeli rollout, and Martin Schwoerer who will be covering Denmark’s collaboration with the EV dream company. True to TTAC’s mission, we’ve asked Messrs Bronfer and Schwoerer to dig deep into Better Place’s heady swirl of public funding, private companies, and new technology to critically explore the reality of Better Place’s reimagination of the automotive relationship. Because coverage of all things EV tends to be enthusiast- or hobbyist-oriented (read: strictly for the fanboys), the idea for this series is to look beyond Better Place’s green-tinted pitch and learn more about the true viability, costs, benefits and complications of the nascent EV infrastructure business. To ensure that we don’t miss any of the important questions, please take a moment to read Tal’s introduction to the fundamentals of Project Better Place, and let us know what questions you would like answered and what elements you would like to see explored as we take on this sprawling story.
I love EVs and am pretty fond of They Might be Giants, but that was the one of the most annoying songs accompanied by the one of the stupidest music videos ever. It belongs as the theme song/video for the Volt.
And guess what? If Bob “Chrome” Lutz had his way, it could have been.
Now that Nissan have their Leaf EV in the works, Mitsubishi have the iMiEV in development and GM are rushing out the Chevrolet Volt, Toyota seem to be feeling a little unarmed in the next stage of green motoring. The NY Times updates us on Toyota’s plans to sell plug in hybrids in about 2 years quoting Takeshi Uchiyamada, Toyota Executive Vice President, as saying “Toyota believes that plug-in hybrids are a realistic solution among vehicles using electricity.” Funny, because not long ago Toyota had a different stance on electrification. In any case, Toyota remains highly conservative in its approach to electric vehicles. In preparation for a mass market launch, Toyota are leasing and renting 600 plug-in hybrids: 230 for Japan, 200 for Europe, 20 for other countries and 150 for the United States. This will provide Toyota with much needed feedback on how to improve the vehicles, a process GM plans on doing with its Volt contemporaneously with its California consumer rollout.
Zacks Investment Research reports that Ford will invest $500 million in Michigan for developing and building batteries for their hybrid and electric vehicles. In return, they have asked the Michigan government for a tax break between $85 to $120 million. Michigan haven’t confirmed whether they’ll give this tax break, which is handy because Ford have indicated that they will look elsewhere if the tax break isn’t given. This investment will create 1000 jobs. Each job will cost at least $85000? Shocking!
The Toyota Aygo, which is the (in-all-but-styling) identical twin of the Citroen C1, is a fine little car, and when I tested it in 2007, I found most everything about it likeable. Packaging, finish, styling, handling, pleasure of driving: the Aygo/C1 turned out to be a thoroughly modern and enjoyable car for a bare-bones price. Only the ride struck me as a bit harsh. I certainly didn’t complain about the revvy, pleasant-sounding and parsimonious engine either, so you might be surprised to hear that I like the electrified version of the C1 just as well. Or, with qualifications, even more. What the heck do I mean? Please bear with me, and I’ll tell you. (Read More…)
We all hoped/thought that Tron was a relic left to the distant 80’s acid trips, but Audi has decided to bring it back again. Shown at the Frankfurt motor show their e-tron concept looks strangely close to production to me. Supposedly debuting two years from now as a 2012 production model buyers willing to fork out huge sums of cash will be treated to more than 3,300 ft-lbs of torque and 313hp, for no doubt very limited distances between charges.
Former Tesla PR honcho Daryl Siry lays into the Department of Energy’s Advanced Technology Vehicle Manufacturing Loan program (ATVML) at Wired’s Autopia blog, taking the $25b program to task for “stifling innovation.” At its core, his argument is a simple one:
Startup companies that enjoy DOE support, most notably Tesla Motors and Fisker Automotive, have an extraordinary advantage over potential competitors since they have secured access to capital on very cheap terms. The magnitude of this advantage puts the DOE in the role of kingmaker with the power to vault a small startup with no product on the market -– as is the case with Fisker — into a potential global player on the back of government financial support.
As a result, the vibrant and competitive market for ideas chasing venture capital that has been the engine of innovation for decades in the United States is being subordinated to the judgments and political inclinations of a government bureaucracy that has never before wielded such market power.
All of which sounds very TTAC… in fact, our lengthy Bailout Watch series began with a similar analysis of the ATVML program (albeit with a Detroit-focused twist). Unfortunately, Siry’s intentions in this case are questionable… as are his conclusions.
Hidden deep down in a story written by the Houston Chronicle about Rice Business School students visiting Warren Buffett, there is a startling prediction by the Oracle of Omaha.
Jan Goetgeluk, president of the business school’s Finance Club, asked what Buffett thought of the peak oil theory.
Reports the Houston Chronicle, to the dismay of the many oilmen amongst its readers: “Buffett told him that in 20 years, he believes all the cars on the road will be electric. He’s already invested in a Chinese company working on the technology to make it happen.” (Read More…)
As we saw in the last VBW, the Volt’s range-extender still needs some software work. But efforts to to keep the gas engine from acting like a thrashing, disembodied dervish will have to balance the desire for smooth operation and maximum efficiency. And it’s looking like efficiency in charge sustaining (CS) mode won’t match the hybrid standard-setters. Volt chief powertrain engineer Alex Cattelan breaks the news gently to the true believers at GM-volt.com
You’ve got to understand that all of the decisions that we’ve made around this product are made because its an EV. That is the first and foremost thing that it needs to be. So because it is an EV some of the decisions that we’ve made around engine operation will be different than what Toyota makes in its parallel hybrid. For them they are always operating in hybrid mode so they need to optimize everything for engine operation.
In our case we’re optimizing everything for EV operation and the secondary is certainly going to be better than conventional vehicles, but were not necessarily totally optimizing the system for charge sustaining mode because we don’t want to compromise electric vehicle mode.
Reuters reports that Tesla is planning an Initial Public Offering, after postponing planned IPOs in 2008 and 2009. Tesla reportedly hopes to capitalize on the recent success of battery developer A123 Systems, on the assumption that the A123 IPO has raised interest in electric auto firms. According to one of Reuters’ sources, Tesla’s IPO filing could be made “within days.” And the Silicon Valley startup, which currently has only one product, the $100k+ Tesla Roadster, will most likely have to hurry. Both Nissan and General Motors plan to enter the electric car market this year, marking the initial entries by established auto OEMs into the American EV market. Both of their initial products, the estimated $30k Nissan Leaf and the estimated $40k Chevrolet Volt, will cost considerably less than Tesla’s estimated $50k Model S sedan and will beat it to market by at least a year. Acquiring funding after cheaper competing models go on sale could be extremely challenging for a boutique automaker like Tesla.
We didn’t want a big fleet of electric vehicles. We’re only just over two years or so away from the games and time is running out to create a viable network. Many of the vehicles will be used for around 18 hours a day. It’s hard graft, and we knew BMW could supply the vehicles to meet these demands.”
Paul Deighton, CEO of the London Organizing Committee for the Olympic Games (LOCOG) explains to Autocar why the games won’t be relying on electric vehicles in 2012. Nissan had presented a bid to be the games’ official vehicle supplier which proposed using Leaf EVs for over half the planned fleet. A “small proportion” of BMW’s winning fleet proposal will be electric MINI Es, and all proposals were required to achieve a fleet average of 120g/km of CO2. But that hasn’t stopped Nissan from getting petulant.
China is the perfect place to think about the future shape of mobility. It’s my job here to push my staff to push the envelope and think about the global automotive future from Beijing
Mercedes designer Olivier Boulay, explains his inspiration migration from Japan’s chauffeur-car culture to the streets of Beijing. The Wall Street Journal puts the cliches about China’s role in the world of automotive design, pointing out that (among other things) for every Geely GE, there’s a Buick Invicta. Not only are Chinese designers affecting Western brands, other Western brands like Mercedes are transferring design staff to China to seek out inspiration in the world’s new largest car market. And developing styling to Chinese tastes is about more than gaining market share there. China’s seemingly contradictory love affairs with conspicuous consumption and electric vehicles (mostly bicycles) represent a heady fusion of luxury and futuretech, a combination that already defines the marketing of many Western luxury car brands. As these trends develop, and as the Chinese market grows, auto design will increasingly be shaped by and in the Middle Kingdom.
After we posted our take on the reported ouster of EV startup Aptera’s founders, Popular Mechanics jumped in to deny the charge. The magazine dutifully reported that Aptera’s founders had conveniently decided to take a vacation, unquestioningly citing the assertions of Aptera CFO Marques McCammon. But it seems the underlying conflict– whether to go to market with the existing product or cut costs while waiting for federal funding to produce a redesigned vehicle– has been resolved in favor of Aptera’s new auto industry insiders. A company press release confirms that the 2e has been delayed until 2010, indicating that the lack of federal funding (or some unanticipated private investment) is the stumbling point. The situation with Aptera’s founders, however, is still something of a mystery. And it’s not the only curiosity to be dredged out of Aptera during this challenging interlude.
Wired has some fantastic coverage of Aptera’s coming-of-age struggles, which have been come to a head since the firm received permission to tap the federal ATVM loan program, the most important rite of passage for boutique EV startups. In short, the auto industry insiders led by Paul Wilbur, formerly of Ford and Chrysler, were delaying production for reasons that made little sense to the firm’s founders. One passage by Wilbur poignantly indicates the nature of the rift:
For months we have been receiving important feedback from you, our depositor community, and we have come to realize there were flaws in our initial product assumptions — specifically as it pertains to satisfying the needs of real-world consumers. Our greatest degree of learning came just a few months ago when we asked all of you to participate in a brief survey. This critical piece of research requested insights about your expectations for our company and our products, and we discovered a notable disconnect between our product plan and realistic expectations. Some modifications had to be made. For example, you helped us realize that some trade-offs for convenience (like being able to grab a burger in a drive-thru) might be necessary to make the ownership experience more palatable, even if it cost us a couple tenths of a point on our drag coefficient.
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