Archive for June, 2010

 

Jun 10

GM is Moving Pure Electric Car Development to US While Nissan Begins to Manage Expectations

 

GM had been in a developmental and production partnership with Indian electric carmaker REVA to develop a low cost pure electric car for the Indian market.  The e-Spark was moving towards a debut at the end of the year, though finding a lithium ion battery maker in India was noted to be a stumbling block.

Suddenly, however, the venture has ended, as REVA was purchased by the large Indian carmaker Mahindra and Mahindra.  As a consequence of this acquisition, GM was forced out, and had to scrap its plans to build the India-based electric car for the Indian market.

“Now with Reva changing its ownership we saw no particular value in doing this experiment,” said Karl Slym, head of GM’s India operation.

GM had already planned to invest $246 million to build a facility to build electric motors, controls, and possibly electric cars.

With the REVA partnership ended, GM will move its pure EV development operation in-house to Detroit.  Though the e-Spark was to launch by the end of this year, GM can no longer provide a timeframe as to when the car will be ready, if at all.  It is instead more likely GM will simply introduce the Volt in India.

Sources have indicated that GM will be testing an electric car in a pilot program  in the US.  Though GM has no official plans to launch such a vehicle here, if the market shows demand is sufficient, GM will be prepared.  More likely, as GM and many analysts predict, the extended-range electric Volt will prove to be more popular in this country.

“We are studying many alternatives after VOLT,” vehicle line director for the Volt, Tony Posawatz says.

“We certainly are studying BEV’s but EREV will carry the day for many years,” he adds.

Meanwhile, Nissan is now claiming  it has 19,000 pre-orders for the LEAF EV between the US and Japan, with 13,000 in the US and 6,000 in Japan.  This is already double Nissan’s first year global production capacity of 10,000 cars.  Nissan expects their Japanese plant to eventually output 50,000 cars once enough batteries are available.  Once plants go online in the US and Europe, Nissan will be able to produce 200,000 electric cars annually by 2012.

Since Nissan is already potentially overselling its LEAF capacity, the company is planning to begin pruning interested parties to manage expectations.

“We’ll even be advising some people not to buy,” said Andy Palmer, head of Nissan’s EV division. “We don’t want them to be driving 300 miles a day. It’s all about managing expectations. Electric cars aren’t for everyone.”

Maybe the LEAF isn’t for everyone, but the Volt certainly could be.

Source (Economic Times) and (Automotive News)

 

Jun 09

As Smart Sales Plummet, Smart EV Success Doubtful

 

When Daimler AG first announced it would be producing an electric Smart ForTwo mini car, it was met with a degree enthusiasm.  That was back at a time of record gas prices and before Nissan entered the marketplance with the 5-seat LEAF.

The Smart ForTwo EV is slated for mass production in 2012, and Smart has just announced that a pilot program of 250 vehilces will be introduced into North America in October.  The cars will be leased to individuals, corporations, and fleets reportedly at a cost of $600 per month for a four-year lease.

The 2-seat mini cars are powered by 16.5 kwh Tesla-produced lithium ion packs and a 30 kw electric motor.  The car can be recharged in 8 hours at 220V and offers up to an 80 mile range and top speed of 65 t0 70 miles per hour.

Smart USA is a subsidiary of Penske Automotive which is the exclusive distributor of Smart cars for the US market.  There are currenly 100 SmartForTwo EVs in operation in Europe, and this North America trial program begins a second phase which will include distribution of 1500 cars globally.  The third phase starts with mass production in 2012.

The rollout of these electric Smart cars will target “key electrification leadership cities and Department of Energy grant areas”.  These area will include, accoring to the Wall Stretet Journal, “Portland, Ore.; San Jose, Calif.; Indianapolis; Orlando, Fla.; and the Washington, D.C.-Boston corridor.”

“The smart fortwo electric drive is the ultimate statement on innovative automotive conservation and further defines the brand’s independent spirit,” said Jill Lajdziak, president of smart USA, and former chief of Saturn. “As the United States sets goals on CO2 reduction and oil independence, the smart fortwo electric drive enters the market at the right time and in the right place as the purist’s play in transportation electrification with a no compromise design.”

Now this may seem well and good, but with the rollout of the Volt and LEAF, not to mention the BMW ActiveE, Think City, Tesla Model S and others, does the country really want this particular diminutive electric car at all?

If gas-powered SmartFor Twos are any indication, probably not.

When the conventional Smart cars first went on sale, in their first 18 months of production from March 2008 through August 2009, an average of 1916 vehicles per month were sold nationally.  Since August 2009 though sales have plummetted an astonishing 66% to a paltry average of 633 per month, with only 278 bought this January.

These cars have an average transaction price of $15,000 making them just as costly as some 5 seat subcompacts.  Smart buyer apparently want to been seen as different, but it is possible all those potential buyers have dried up.

So will the SmartFor Two EV pilot program save this brand that isn’t growing or be its death knell?  You be the judge.

Source (Edmunds) (Wall Street Journal) and (SmartUSA)

 

Jun 08

Ford Taking the Cautious Path to Electric Cars

 

Ford has been experiencing significant success in the marketplace, especially since they were the only US automaker to evade bankruptcy last year. Their Ford Fusion strong hybrid is seeing some modest increases in sales, with 2,486 units moving in the month of May. For comparison, in the same month Toyota sold 14,248 Priuses and Ford sold 22,381 standard gas Fusions.

Looking forward, Ford has plans in place to produce several electrified vehicles.

Ford’s global electrification strategy includes plans to launch five new full electric or hybrid vehicles in the compact, midsize and light commercial segments for the North American market by 2012 and European markets by 2013. This lineup includes:

  • The Transit Connect Electric light commercial vehicle in North America later this year and in Europe in 2011
  • The Focus Electric in North America in 2011 and in Europe in 2012
  • A Lincoln MKZ hybrid, available this fall in North America
  • A next-generation hybrid electric and plug-in hybrid electric vehicle based on Ford’s global C-car platform in North America in 2012
  • A C-MAX hybrid electric and plug-in hybrid electric model for Europe in 2013

As Ford spokesperson Jennifer Moore told us, Ford plans to produce about 10,000 Ford Focus Electrics in its first year of production starting in 2011. No further ramp up plans are acknowledged. Mainly this is because Ford is taking a cautious approach. They have positioned themselves to enter the market after the Volt and LEAF, and could theoretically use the observation of these competitors before making a large an investment in production capacity. In fact, this diverse mix of vehicle types suggests Ford’s plan is to have many different forms of electrified cars covering all the bases so that they can focus on the type that begins to win in the marketplace.  That is all except one type.

Ford has specfiially ruled-out the extended range electric car design GM is using in the Volt. As Fords’ director of hybrid and EVs, Nancy Goia once explained to GM-Volt.com, “because of the battery costs and the size of the battery, and the weight of the battery, and the fact that battery technology is going to continue to evolve, we believe that the blended hybrid is a better solution.”

Ford CEO Alan Mulally was just interviewed at the D8, Al Things Digital conference in California. His comments confirmed this cautious approach, and why.

“We can make electric cars,” said Mullaly. “But as you know, we can improve them, like battery life.” Mullaly is concerned modern day lithium ion batteries are still insufficient to allow for widespread electric car adoption.

“Most of them are too big, too heavy,” he says of lithium ion cells. “There’s a lot of room to improve the batteries.”

Not only is battery technology the limiting factor as Mullaly sees it, but so too is the lack of public charging infrastructure.

“(An)other point is that the infrastructure has to get there,” he said. “You need charging stations for people in apartments, in rural areas, etc.”

Mullaly expects Ford to be ready once the infrastructure arrives.

“When we get there, Ford will be there,” he adds.

Source (CNET)

 

Jun 07

Chevy Volt Production Volume Will be Expanded if Demand Materializes

 

Much is often made in the discussion about the Chevrolet Volt and Nissan LEAF of production capacity and production volume.  As enthusiasts of reducing petroleum use we are excited to see automakers claiming they will build electric cars in very high volumes.

As such, Nissan’s CEO Carlos Ghosn is often lauded for his very bullish proclamations that Nissan will have capacity for 500,000 LEAFs by 2013, and that he believes they will sell as many.  Ghosn’s high volume predictions always seem to fly in the face of independent analysts and the expectations of other automakers.  Though we hope Nissan’s claims will come true,  people wont buy these cars just because we want them to.

GM has more conservative plans to build and sell 50,000 to 60,000 Chevy Volts in 2012.  Since it too is a global car, that means GM is only predicting one tenth the demand Nissan is.

Some interpret this as meaning GM only expects  to keep the car as a niche or halo product, and that they are intentionally keeping production low.  Contradicting this premise, former vice chairman Bob Lutz said it would be his “dream” if there turned out to be global demand for 500,000 Volts per year, and said GM would build additional capacity if that turned out to be the case.

“Volume projections and forecasting is a tricky business, especially when you consider technology that is quite new,” explains Volt vehicle line director Tony Posawatz. “As we have throughout the VOLT development, we will continue to try to lead in this technology and assess our business options as we get new information.”

“We will evaluate production expansion when we have solid data that suggests it is appropriate,” he adds. “Its too early to make lavish claims at this time.”

Ford also is planning to release its Ford Focus Electric pure EV in 2011.  Though essentially the same vehicle as the LEAF, Ford too has far more conservative demand estimates.

“We would expect production the first full year of up to 10,000 units,” sais Ford spokesperson Jennifer Moore.

“Lots of predictions related to the potential market for battery electric vehicles and they range all over the place from analysts and consultants,” she adds. “It will be interesting to see how the market develops.”

So although Nissan is claiming a large capacity for the LEAF, demand has yet to be demonstrated.  GM on the other hand is proposing moderate initial capacity for the Volt, but will move to higher capacity if demand materializes.

“We have already made some positive moves on volume and production capacity on the VOLT vs. initial plans,” says GM’s Posawatz.  ”We are certainly optimistic about our prospects but prudent and cautious when making claims.”

Posawatz says GM must be careful not to overcapacitzing the Volt.  ”I think we will always want to keep VOLT in a position where demand for the product is slightly greater than supply,” he says.  ”We would not want to see VOLTs needing to be discounted for whatever reason.”

“It would be damaging to the brand if this unique and remarkable game-changing product would have to be pushed on the customer,” he adds.

 

Jun 06

GM Launches New Advanced Transportation Technology Venture Capital Subsidiary

 

Jon Lauckner and Volt Chassis

General Motors announced earlier this week it was forming a new venture capital unit called General Motors Ventures, LLC. This new unit is being funded with an initial investment of $100 million. It will serve to help the company “identify and develop innovative technologies in the automotive/transportation sector.”

“We are constantly looking for ways to deliver the best technology for our customers,” said Stephen J. Girsky, GM vice chairman Corporate Strategy and New Business Development. “Our goal is to nurture these innovative technologies to help bring them to market, and to ensure our customers have access to the best technology available.”

The subsidiary will attempt to discover small companies developing breakthrough advanced transportation technologies and offer them venture captial funding and investment.

This is a model other large successful corporations often engage in. It is also an activity GM has experience in. Prior to bankruptcy GM had invested in cellulosic ethanol production firms including Mascoma Inc, and Coskata Inc . Google, IBM and Intel all have similar VC divisions which allow them access to some of the best new technologies in their fields, affording them significant benefit and competitive advantage

That GM is doing this speaks to their forward-looking strategy and commitment to advanced technology vehicles which the Volt itself represents.  By getting in on the ground floor in fledging companies GM will potentially be able to adapt and patent these new technologies into their vehicles ahead of the competition.

Interestingly, the new VC unit is being headed by Jon Lauckner who has been named its President. Lauckner has been GM’s vice president of global program management, a position he has held since before he first conceived and sketched out the Volt concept with Bob Lutz in 2006. In moving from this position GM has named Steve Carlisle, current VP for U.S. Sales,to Lauckner’s post. He will reports directly to CEO Ed Whitacre.

Several additional executive shuffles were also reported yesterday in an effort to “enable leaders to apply their extensive experience in fresh ways to benefit the customers and GM,” wrote vice chariman Tom Stephens in a memo to employees.

Lauckner now joins Bob Lutz, Frank Weber, Denise Gray, and Bob Kruse as executives who previously held key positions in the Volt program and have since moved on.

Source (GM) and (Detroit Free Press)

 

Jun 05

Automakers Reach Agreement on Sound for Electric Cars

 


Electric cars operate very quietly, which is one of the strong selling points to drivers who appreciate silence.  Visually impaired pedestrians and other road occupants such as bicyclists however, rely on the sound of combustion engines to negotiate safely.

As such, blind advocacy groups have been working with automakers for two years to reach a consensus on whether and how electric cars should be equipped with sounds.  Recetnly an agreement was reached.

Automakers will equip their electric cars with audible pedestrian alert signals that will not be driver activated.  These chirping sounds would automatically be emitted when the car operates at low speeds to let pedestrians know that it is nearby.

When the first generation Volt goes on sale later this year it will be equipped with a manually activated pedestrian alert, however when the new agreement goes into effect, the sound will have to be automatic.  Nissan has equipped the electric LEAF with an automated chirp.

“Bruup, bruup” is how Micky Bly, GM’s  executive director for hybrid electric vehicles and batteries imitates the sound that will be made by the Chevy Volt.  The manually toggled stalk will sound “like the low tone of a horn, but nonstartling.”

Mark Perry, marketing director for Nissan said the LEAFs’ sound will be revealed to the public next week in Japan.  Earlier reports indicated it would sound like the flying cars in the movie Blade Runner.  “It’s a little too early to disclose it, but when we do you’ll understand the work that went into it from our audio guys,” said Perry.

The often proposed idea of downloadable ring tones for electric cars cars seems unlikely.  ”We do hate the idea of ring tones,” said Chris Danielsen, a spokesman for the National Federation of the Blind, . “We think manufacturers should decide the sound or set of sounds, and drivers should not able to alter them willy-nilly.”

The electric car sound measure is incorporated in the Motor Safety Act of 2010 which was already proposed in congress and is expected to  be ratified into law by the end of summer.

A group of auto trade groups in cooperation with the National Federation for the Blind sent a letter to Congress stating the new law would “will help to ensure the safety of pedestrians, especially those who are blind, as an increasing number of hybrid and electric vehicles are sold.”

The new legislation would require the National Highway Transportation Safety Administration to begin drafting the requirements within 18 months and the rule would have to be finalized within three years.

David Strickland who is the director of the NHTSA said his agency is reviewing the agreement which will also be extended to hybrids.

“Our analysis of limited data from 12 states shows that hybrid electric vehicles do have a significantly higher incidence rate of pedestrian crashes than internal combustion engines,” he said.

Source (Detroit News) and (New York Times)

 
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