As TTAC has arguedbefore, electric cars are great… as long as you don’t have to own one. Now, even the automakers are starting to wonder if they should even bother selling the things. BMW, which has already experienced issues with consumer EV letdown, is already starting to back away from the idea of selling (rather than, say, leasing) its much-anticipated Megacity electric city car. Sales Boss Ian Robertson tells Automotive News Europe [sub]
We’re looking for an alternative to traditional purchase or leasing of a vehicle. We don’t want to sell the car, but rather the use of the car. The ‘Car to Go’ concept “is an interesting approach. More and more people in large cities are looking for an alternative to the ownership of a vehicle
Or, more accurately, BMW is looking for an alternative to trying to sell an extremely high-cost, premium EV with killer depreciation. Either way, it seems that OEMs and consumers are starting to meet in the middle on this whole EV thing…
Surprised? Don’t be. President Obama’s goal of getting a million EVs on the road by 2015 is headed nowhere without some serious changes, as the OEM EVs are stuck with high prices in the short term and capacity ramp-ups in the middle term. Making progress on either the price point or the production numbers (both of which are necessary to punch EVs into the mainstream) isn’t going to happen unless gas prices skyrocket or, as Nissan CEO Carlos Ghosn puts it, government “jump starts” the market. Now, Automotive News [sub] reports that an Indiana University study argues that Obama’s million-EV goal might not be accomplished by 202 without further government assistance. On the other hand,
With increased government intervention and perhaps a global surge in oil prices, electric vehicles could capture as much as 15 percent of the U.S. market by 2025-30
By which point, the CAFE standard could well be 62 MPG combined (unadjusted)… making the argument for EVs even tougher. But now we’re getting ahead of ourselves… (Read More…)
My home state of Oregon has the unfortunate distinction of pioneering the practice of pay-per–miletaxation, having studied the GPS tracking approach to road taxes in a pilot program back in 2005-2007. Originally, the track-and-tax scheme was envisioned as a replacement for the gas tax, but now it’s being raised as a way of taxing motorists who go without gasoline altogether. The Eugene Register Guard reports
A bill before the Oregon Legislature aims to deal with the government’s potential beefs with a growing fleet of cars and trucks that never stop for fuel at a gas station: that they don’t ever pay the gas tax that helps cover the cost of state and local road construction and maintenance.
Under House Bill 2328, those drivers would pay a “vehicle road usage charge,” starting with model year 2014 electric vehicles and plug-in gas-electric hybrids.
Proponents say the bill will build on lessons learned from the pilot testing, and avoids the legitimate concerns about pay-per-mile which were first raised by the pilot project’s report. But does taxing EVs actually make sense, or is this just the politically-palatable first step towards an Orwellian nightmare of GPS vehicle tracking? Meanwhile, doesn’t the State of Oregon give up to $750 in tax credits for EV purchases? Mixed messages much?
In 1961, President John F. Kennedy said in a speech to a joint session of Congress: “I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the Moon and returning him safely to Earth.” On 21 July 1969, Neil Armstrong became the first man to set foot on the Moon. The Apollo 11 crew returned safely to Earth on 24 July. Three years later, the Moon had its last visitors. The Sea of Tranquility lives up to its name.
In last week’s State of the Union speech, President Barack Obama’s set an even more audacious goal. (Read More…)
Rep Sander Levin (D-MI) has introduced legislation which would increase the cap on consumer tax credits for plug-in electric vehicles.The current subsidy allows consumers to take a $7,500 taz credit, but caps the number of qualifying credits at 200k per manufacturer, but Levin’s bill would raise that to 500k units. Said Levin in a statement
Green vehicles represent the vanguard of automotive innovation, but they have to be economical for consumers and profitable for manufacturers. Raising the cap on this credit will help carmakers reach the demand and production scale necessary for long-term viability.
To which, his brother Senator Carl Levin, adds
The U.S. auto industry is poised for a technological explosion that promises to fundamentally change transportation here and around the world. But if we fail to support this revolution, workers in China, India, South Korea and our other competitors will build these vehicles instead of American workers.
The call to raise the cap for EV consumer tax credits was first publicly raised by GM’s Tom Stephens, who argued that 200k units was inufficient government support to keep the Volt viable until the second generation comes out. At the time, Rep Debbie Stabenow argued that credits should be “front-loaded” and deducted from the price of the vehicle at the dealership, but that proposal seems to have fallen b the wayside.
As the world’s first commercially-available (ish) plug-in hybrid, the BYD F3DM is one of the few modern cars that can legitimately claim a piece of automotive history. In full knowledge of this fact, a younger, more innocent version of myself once sent a number of emails to every possible BYD PR contact I could find, in hopes of securing an early review of the car that ushered in the plug-in automotive age. Needless to say, I never heard back from BYD… but I expected that. What I didn’t expect is that, years later, I still wouldn’t be able to find a real in-depth review of this mysterious yet potentially groundbreaking vehicle. Apparently BYD is either extremely cautious about letting writers experience its vehicles outside of convention hall laps and round-the-block drives… or the automotive media has a very poor sense of history. Or, as is most likely the case, both.
Either way, this strange state of affairs just got stranger: thanks to plugincars.com, we now have the first report of the F3DM’s performance on American roads… from an LA Public Housing Authority inspector. Yes, really.
With worrying news breaking recently about Nissan’s slow rollout of its Leaf EV, Toshiharu Sakai, a senior VP at the Japanese automaker reassures the Nikkei that
We initially planned to produce 10,000 this fiscal year, and we can meet (this target) by the end of March.
Sakai insists that the Leaf’s production has not been interrupted, and that the Oppama plant would produce 3,000 units in February before ramping up to its capacity production of about 4,000 units by March. Leaf production at Nissan’s Smyrna, TN plant will begin late next year, and will produce as many as 150k units per year (and 200k battery packs per year), while Nissan’s Sunderland, UK plant will be producing another 50k Leafs and 60k battery packs annually starting in 2013. All told, Nissan will have about 250k units of Leaf production when the Sunderland plant reaches full volume, which puts it on track to a commanding lead in global EV production… now it just needs the market to start demanding that many cars. Meanwhile, a minor issue with the Leaf’s ownership experience has raised its head and deserves a little attention.
Typically when an automaker launches its first EV, the standard procedure is to spend a lot of time talking about how this car will change the world. Not so with Audi. Having created an “e-tron” EV concept version of its Auto Union Type C pedal car, Audi is backing up its modest EV ambitions with some tough talk from CEO Rupert Stadler aimed at putting EVs in their proper place. Stadler tells Automotive News [sub] that
We are still in the early phase with the electric vehicle, in terms of commercialization and whether the cars will be sold or leased, or will just be a collector’s car. First of all we have to industrialize the lithium-ion-battery. This is happening with the hybrid cars which now have the role of a bridge technology. We should not overplay euphoria for electric vehicles. Our industry is in the middle of a system change and we still have a lot of challenges to solve.
And, just as its CEO admits, Audi still has real issues with the commercialization of EVs: for one thing, even its e-tron kiddy car is still a one-off modification of its €9,700 pedal-powered Type C racer. Audi currently has no plans to commercially produce the 1.5 HP, 25 km range EV sportster. Perhaps its too early to say for certain that Audi will be able to knock Tesla off its solitary spot atop the EV sportscar world.
Production of Chevrolet’s Volt was supposed to be limited to 10k units this year, a target GM has already set its sights on surpassing. With 2012 volume projections now reaching 25k units, the next step in The General’s quest to prove that the Volt is a viable vehicle is a staggering goal: doubling its 2013 production target from 60k to 120k units of production. According to Bloomberg, GM has not officially announced the 120k volume goal and may not build that many Volts in 2013 at all, if energy prices and supplier challenges don’t allow it. And though supplier issues could well leave the goal out of reach, even if GM is able to ramp up production to fulfill its 120k unit goal by next year, there are no signs yet that the market will support those production levels. After all, GM is essentially banking on the kind of volume-to-price niche that BMW has taken years to cultivate with its 3 Series… which starts at prices slightly below the Volt’s $41k, and still moved fewer than 110k units last year.
BYD had a bit of a rough time lately. This might cheer them up: According to a report by the Wall Street Journal, a joint design team of BYD and Daimler has finished the styling of an all-electric battery car that will be launched by a BYD/Daimler ( or “Benz” as they call them in China) joint venture. (Read More…)
Wheh, that’s a big question… and I was dismayed to see myself giving such a short answer to it in my Newshour appearance. There are a host of reasons for my swift “no” answer to that question… here are a few of them:
1: GM Doesn’t need saving. The Government “saved” GM.
2: The market projections for EVs are all works in progress.
3: GM isn’t actually committed to the electrification of the car. It’s committed to gas engines and transmissions and the idea of “range anxiety”… for its “electric car.”
4: If GM were committed to electrification, and that was a prudent business gamble, it would still be chasing Renault-Nissan just as Honda chased Toyota in the race for hybrid leadership not so many years ago. And like Honda, GM seems less committed (in the literal, mechanical sense) to the electric car than the emerging global leader, Nissan. Yes, the Volt is mechanical marvel, unrivaled in its complexity… but only because it clings to its gas technology. Honda’s hybrid half-step, never introducing an electric drive mode to its “mild” hybrids, seems pragmatic by comparison. Toyota’s sole ownership of the “hybrid halo” is instructive (and worrying for Toyota, considering it’s been taking a GM-esque tack towards EVs lately).
5: Even after GM starts selling tons of electric cars (in a scenario where that is indeed possible), it will be working uphill to re-establish consumer trust (in all its products) that was squandered over decades.
I could go on, but I’d rather hear your answers to the question.
The case of three Renault executives who are accused of passing off trade secrets to a foreign firm has taken yet another turn for the confusing, as two of the dismissed managers are suing Renault for defamation. Reuters reports that Michel Balthazard, the highest-ranking executive to be accused in the case, has joined colleague Bertrand Rochette in threatening to file a defamation suit against his former employer. Balthazard is also appealing his dismissal to a French labor tribunal, in hopes of being reinstated at the company. Rochette, Balthazard and a third exec, Matthieu Tenenbaum, are accused of passing strategic information to a foreign network in exchange for bribe payments, charges all three executives deny. According to the WSJ, Rochette denies even having a Swiss bank account into which Renault alleges his bribes were deposited. Meanwhile, French finance minister Christine Lagarde tells the NYT that
I really don’t think that the Renault case has a Chinese angle. I have zero indication
But, as has been typical thus far in this strange case, other French officials including the head of Parliament’s economic intelligence working group insist that a Chinese connection is involved. We will continue to keep an eye on this case… but don’t expect much clarity on the details for some time.
Elon Musk’s desire to see “every car on the road” driven by electricity is briefly realized in this video of the Tesla Model S “Alpha” prototype testing somewhere in the coastal hills of California. Tesla’s “Alpha” phase of testing began last year, and will be followed by a “Beta” test phase before the Model S goes into production. More videos on the Model S and its technical components can be found at Tesla’s Vimeo page.
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