Bad PR: Tesla Forces Pre-Ordered Roadster Owners to Pay More
Angering many of their early adopters, Tesla Motors is apparently increasing the price of the Roadster models that are set to go into production. Many of the around 600 pre-ordered owners are incensed that Tesla is raising the price of the Roadster after these owners have already paid up to $50,000 per deposit and thought the deal was done.
While the owners seemed alright with the fourteen month delay in delivery, this public relations nightmare may test that patience. While Tesla claims the increase in price is necessary to become profitable, it is unclear how the pre-ordered owners, who have basically become investors in the company, will view this move. READ MORE
Chinese Company BYD Makes Bold Prediction to Enter U.S. Market by 2011
Chinese battery, turned electric car manufacturer, BYD made a presentation at the Detroit auto show last week. (“BYD” stands for “Build Your Dreams.”) Company chairman, Wang Chuan-Fu, made the bold prediction that its plug-in hybrid model, the F6DM, and pure electric model, the E6, should launch in the U.S. and Europe in 2011.
Although the BYD is already selling a smaller plug-in hybrid, the F3Dm, in China, it appears that the company still has a few strides to make before entering the U.S. market– Wheels blog at NYT notes that BYD handed out a paper brochure during their presentation oddly titled, “Paper Cut of BYD Car Culture.” It is unclear what the proper translation should have been. (Maybe “A Paper Brochure of BYD Car Culture”?)
While at the car show, Chuan-Fu was also reported to have met with Warren Buffett, whose company MidAmerican Energy bought 10% of BYD last year.
GM: Will Build Major Lithium-Ion Battery Factory in Michigan
GM announced plans to build the first lithium-ion battery-pack manufacturing facility operated by a major auto maker in the U.S. The plant, which will be located in Michigan, is expected to begin output in 2010. Until then, the Chevy Volt’s battery pack will be supplied by a LG Chem Ltd. unit, based in Troy, Michigan.
CEO Rick Wagoner said at the North American International Auto Show in Detroit, ”The design, development and production of advanced batteries must be a core competency for GM, and we’ve been rapidly building our capability and resources to support this direction.”
Additionally, GM announced that it would be opening a new automotive battery lab to further strengthen design, development and testing capabilities, as well as creating a partnership with the University of Michigan to develop a specialized curriculum for battery engineers.
While questions still surround the future of the Volt (and GM in general), these recent announcements, at least, are a good sign.
Ford to Sell Small Electric Car by 2011
Ford Motor Co said on Sunday it planned to introduce a small electric car in North America in 2011 as part of a plan to introduce electric, hybrid and plug-in hybrid vehicles over the next four years.
Ford, the No. 2 U.S.-based automaker, said it was working with auto parts supplier Magna International to bring a small battery-powered car to market in North America in 2011, using a lithium-ion battery, with a range of up to 100 miles per charge.
Ford’s product development chief, Derrick Kuzak, said pure electric car sales would be focused on urban markets with initial sales targeted at the 5,000 to 10,000 range.
In a presentation at the North American International Auto Show, Ford said its next generation of hybrid vehicles would include a plug-in version by 2012. The automaker also plans a battery electric commercial van in 2010.
This Electric Car is Amazing!
This is a video of the Tango electric car plowing snow from its own driveway. Apparently it was shot in December after a record snow storm hit Spokane, WA (where Tango is based).
This is not the first time this little EV that could has made YouTube stardom. We previously looked at this video of the Tango beating the socks off of a Tesla Roadster in a drag race.
Hat-tip: AutoBlogGreen
All New Cars in CA Have Environmental Impact Labels
As of January 1, every 2009 model year and newer car sold in California now carries a label that ranks that vehicle’s environmental impact. The label can be found under the hood on the emissions control information label. There are two rankings (global warming score and smog score) on a scale from 1 to 10, with five being the average score in the state. The more environmentally friendly a car is, the higher the ranking.
Check out this link to see the top 10 cleanest cars.
Test drive video of the Zenn neighborhood electric vehicle (NEV)
Following up on our post about Zenn Motors opening a dealership in the Bay Area, here is a test drive video of the Zenn.
Zenn Motor Company to open dealership in the Bay Area
A local NBC affiliate in San Francisco is reporting that Zenn Motor Company will be opening a dealership in the Bay Area.
Zenn, which produces neighborhood electric vehicles (NEV), is an acronym for “zero emissions, no noise.” The company is based and manufactures its cars in Canada. Zenn’s flagship NEV, the “Zenn” can travel at speeds of 25 miles per hour, has a range of 40 miles, and a price tag of around $15,000. The Zenn can be recharged in a standard outlet in as little as 4 hours.
Zenn also is working on an electric vehicle called the cityZenn that should be able to travel at highway speeds.
GM makes a huge bet on the Volt
With Detroit facing criticism from every corner, industry “leader” GM seems to be betting their future on the Chevy Volt. Although the electric powered Volt is being widely marketed by GM and touted by them as proof of a new philosophy, the car is not slated to arrive in showrooms until late 2010.
The NY Times estimates that, since the Volt requires the development of completely new technologies, that the R&D price tag for this car could exceed the $1 billion it generally costs to develop a new car model. READ MORE
ZAP electric car company looks for federal assistance
More bad news is coming out of the electric vehicle industry– Plans by ZAP Electric Cars to build a manufacturing plant in Kentucky have stalled due to the loss of $125 million in financing from GE Capital. The plant was slated to employ 4,000 workers and has been promised $48 million in tax incentives from Kentucky. This is not enough, however, to induce the somewhat controversial company to move forward with the plant.
ZAP is now looking for $150 million to $200 million in federal assistance or alternative financing. Its fleet of quirky looking three-wheeled EVs are currently built in China.
Update: Alex from ZAP left a comment below, addressing a few points from our post and other commenters. He wanted to make it clear that it is not ZAP that is deciding whether to build the factory in Kentucky, but rather a company called Integrity Manufacturing. He also addressed the point made in the comments section about recycling batteries, noting, that according to a battery industry trade group, “lead-acid batteries are the most recycled consumer product in the world, more than aluminum, glass or steel.”
Tesla Motors seeks $400 million from potential bailout
Reports indicate that the electric vehicle start-up company, Tesla Motors may be looking to get $400 million out of any bailout of the Big 3 automakers. Despite the incredibly important role electric car manufacturers are going to play in the future of our economy and environment, bailing out Tesla would be a mistake.
The only justification, if there is any, for bailing out Detroit is to prevent our economy from falling into a deep recession. Under more stable economic times, allowing the Big 3 to use the bankruptcy courts to reorganize, like any other failing business, would be the appropriate action. (Assuming sufficient government resources were allocated to retraining and assisting unemployed workers.) READ MORE
Better Place to ship electric cars from US to Israel within weeks
The Israeli business journal, Globe, is reporting that Better Place is preparing to ship its first electric car to Israel within a few weeks. Interestingly, these EVs are apparently being assembled in the United States. Ironically, this news comes while we are debating whether to bailout the floundering “Big Three” automakers or to let them fail. It is good to know that there is at least some automotive innovation still coming out of America.
Nissan may lease batteries separate from the cost of its electric cars
The biggest challenge in building an electric vehicle that can replace traditional cars is battery technology. Currently, EV batteries are very expensive and potential owners, aware that they have a limited lifespan, worry that replacing them will be an expensive proposition.
Responding to these concerns, Nissan has announced that buyers of its upcoming EVs may have the option of leasing the battery, separate from the cost of the car. This is intended to lower the sticker price of the car, as well as ease consumer concerns that they will be stuck when their battery stops holding its charge.
Nissan intends to begin selling its electric car in the US in 2010 and to mass market it by 2012.
Thursday’s Environment
· Green Inc. notes that the Indian coal minister visited the US Appalachian region last week in pursuit of striking a deal to import American coal to India. Of course, given the global natural of greenhouse gas emissions, if we are able to cut back on our own coal production, only to then increase our export of coal to other nations, we will be accomplishing less than nothing.
· Energy Outlook wonders if the slowing of global oil production resulting from the credit crunch and the tendency of governments like Iran and Venezuela to invest oil revenues in social subsidies instead of production, could result in “an even bigger oil price spike within a few years.”
· Red Green and Blue reports that Australia is about to develop one of the world’s largest electric recharging systems. “The $676 million project could see the establishment of as many as two million recharging points, as well as more than 500 battery swap stations, where drivers can exchange depleted batteries without the need to wait for a recharge.”
· The Daily Green warns that China, which has already surpassed the US in greenhouse gas emissions, “continues under a business-as-usual trajectory, without seriously cutting back on its carbon emissions, then its greenhouse gas output could double — or more — by 2030.”
· AutoBlogGreen reports that GM took one step closer to producing the Chevy Volt when it announced a subsidiary of the South Korean company LG would be producing that cars batteries. (Of course, it is the battery that will ultimately make or break the electric car.)
Battery technology must progress substantially before fully powering cars
It seems that the state of battery technology is still a ways away from being able to allow for widespread adoption of purely electric vehicles. This is one of the key points in the debate about the Pickens Plan. That is, whether we should convert all of our cars to natural gas, or go straight to electric? The answer depends on whether the technology is or is not there yet.
The next generation of car batteries are going to be litium-ion, which will replace nickel metal-hydride batteries. However, in order to move to the next generation of vehicle batteries, big improvements must be made to extend the life, lower the cost, and increase the safety of these new batteries. This is according to Tien Duong, a high ranking official at the U.S. Department of Energy, who answered questions at a lithium battery conference last week.
According to Duong, we are still some ways away from developing a lithium battery that can power a car for 40 miles on electricity alone by 2016, a goal of the Dept. of Energy. On the one hand, this sounds surprising given the recent excitement over proposed electric cars like the Chevy Volt and Toyota Prius plug-in. But on the other, as I sit here with an overheating notebook computer on my lap and a cell phone whose battery can’t last for more than one day, both of which use lithium-ion batteries, I can’t say that I’m shocked. If that is in fact the case, we better not put all our eggs in the electric car basket quite yet… at least for the near future.
[Note: in the Reuters article, Duong does say that there is a lot of discussion in Washington of funding a Department of Defense $1 billion battery project. This marshalling of resources, to me, would seem to be one of the best shots at making rapid progress with this technology.]
