Affordable electric vehicles will not be available on the UK market until 2015 and their adoption will need to be supported by government subsidies, according to a new survey.

Latest figures from consultancy and advisory business KPMG show that over 90 per cent of auto executives see investment in hybrid systems, battery electric power or hydrogen fuel-cell technologies as a key priority over the next five years.

But these next generation vehicles will not be viewed as affordable by the mass market until 2015, the report warned, and their introduction must be supported by favourable policies that support consumers.

Towards the end of 2010, the UK government gave the go-ahead for nine electric and low emission vehicles to be eligible for consumer rebates, giving a boost to the domestic market.

It has pledged to spend up to £43m assisting the growth of the sector by providing consumers of particular vehicles a £5,000 cash back grant if they purchase these new models.

According to KPMG’s 2011 Global Automotive Executive Survey, which questioned more than 200 global automakers, the future adoption of these cars will be supported by urban planning and environmental restrictions.

In addition, the majority of respondents believe China will lead the as the world’s largest manufacturer and consumer of low carbon vehicles.

Mike Steventon, automotive partner at KPMG in the UK said one factor found to be common worldwide was the need to continue to develop the technology that will produce efficient and affordable electric vehicles.

‘Even though the industry is still in recovery mode, the pace of technical leadership intensifies.

‘With the rise of oil costs and fears over future supplies, it’s no real surprise that fuel-efficiency is considered the single biggest factor for consumers when buying a vehicle. The challenge is whether in this period of fiscal belt tightening, governments can afford to subsidise the introduction of electric vehicles.’

About 80 per cent of respondents thought that hybrid and electric cars will in the near future see the lion’s share of growth of any vehicle category over the next five years.

The report found, however, that more than four in ten auto executives expect government subsidies to tail-off with only a quarter predicting funding opportunities will increase.

About 40 per cent of those questioned by KPMG regard the most effective way of making electric vehicles affordable for mainstream buyers to be through government subsidies.

Copyright © 2011 NewNet

SAIC Motor, one of China’s biggest vehicle makers, has bought General Motors (GM) shares totalling $500m, just weeks after the pair announced they were to collaborate on new energy vehicles.

SAIC said its wholly-owned subsidiary SAIC Motor acquired more than 15 million shares at $33 each, and will retain a 0.97 per cent stake in the company.

Earlier this week, GM increased the proposed size of the offering of its common stock to be sold to 478 million from 365 million and increased its estimated price range for the offering of common stock to $32 to $33 per share.

As GM stock began trading on NYSE yesterday prices held firm and were still trading above the $34 mark.

In August 2010, the companies signed an agreement on joint development of a new generation highly efficient powertrain.

In November, SAIC Motor and GM said they would further strengthen their co-operation in core field such as new energy vehicles, development of new generation vehicle models and signed a memorandum of understanding on strategic cooperation.

A statement by SAIC said, ‘Since the completion of business restructuring in July 2009, GM has regained its cost competitiveness, and has made profits for three consecutive quarters this year.

‘Apart from this, the US automotive market is gradually stabilising and rebounding, and the strong vehicle demand from the emerging markets has also provided GM with opportunities for further growth.’

Copyright © 2010 NewNet

With investment from engineering giant Arup, wireless electric vehicle charge technology developer HaloIPT launched in the UK this week with the aim of providing next generation infrastructure.

Its launch showed conferences do herald real partnerships and deals, but you have to find the ‘can do’ companies. Engineering business Arup has proved outright that it is one of those enterprises.

When Dr. Anthony Thompson, CEO of HaloIPT, started explaining that he needed help with one of the most ambitious and futuristic infrastructure projects ever envisaged, others would have perhaps commended him for his vision, tenacity and given advice, but how many would have financially backed him? Arup did, crossing the Rubicon from thought leadership to real action.

HaloIPT wants to provide the next generation of vehicle charging infrastructure. The future of electric driving currently heralds residential streets with nests of trip wires running up and down as the carbon conscious public engage with the latest wave of electric vehicles charged from their homesteads.

Presumably after a wave of complaints and broken ankles, enter HaloIPT technology and wireless electric vehicle revolution. No wires, no hassle. The technology has been developed by in New Zealand by Auckland University, and is a spin-off from the university’s own commercial arm Auckland UniServices, which holds a residual stake making it joint owner with Arup.

In addition, HaloIPT has also received investment from the Trans Tasman Commercial Fund.

Admittedly, Arup’s decision was helped as they were able to invest in a company that already owned some registered patents, and some private backing from the university.

Auckland UniServices has annual revenues of more than £50m. With the technology put to work in commercial vehicle producing and producing some revenue (for instance, it has been sold and applied to an Italian bus company) it was now leveraging 45 patents.

The device works by transmitting electricity through a localised magnetic field, controlled by two ‘pads’ one fitted on the underside of the car and the other fitted in the ground, ‘flush’ with the surface. As the two pads come into line, the field is opened and electricity passes between to two giving charge. It’s designed with the ‘lazy driver’ in mind, so that if the pad is not perfectly covered the unit will still give charge.

The IPT in the company’s name stands for induction power transfer and in short is the same technology that currently charges electric tooth brushes, but the scale up will clearly need some time and effort to manifest itself. Ultimately, the technology could be applied to roads so that the cars would constantly charge as they were driving.

This partnership has won independent acclaim too. There are those in the industry such as veteran Tony Martell, who founded Traffic Master and is now CEO of the Electric Car Corporation, which has independently endorsed the idea. Speaking at this week’s UK Launch of HaloIPT, Martell sees the product as the next step for the industry.

‘Wireless charging using HaloIPT technology will not only offer an EV driver a robust alternative to cable charging at home, but also has the potential to bring a range of new opportunities to both the driver and the EV industry in the future,’ said Martell.

Copyright © 2010 NewNet

Toyota is aiming to reach sales of five million hybrid vehicles in the next few years and has launched a speaker device to enhance the engine sound of its flagship Prius model to combat criticism that the engine is too quiet.

Toyota has already sold 2.68 million hybrid vehicles around the world and it now aims to sell at least one million a year in the early part of the coming decade, reports said.

Toyota’s popular Prius hybrid is combating complaints from pedestrians that they can not hear the vehicle approaching by selling an ‘electric humming’ device to mirror the sound of petrol car engines.

Toyota said the onboard device automatically emits a synthesised sound of an electric motor when the Prius is operating as an electric vehicle at speeds up to approximately 25 km/h. The sound rises and falls in pitch relative to the vehicle’s speed, helping indicate the vehicle’s proximity and movement.

The petrol-electric hybrid has been found to be of greater risk to pedestrians because its noise level is extremely low when it is in electric mode.

Toyota recently marked the tenth anniversary of the launch of the Prius but has also pushed the roll-out of its remodelled version in the US by up to six years.

The company has also recently undertaken a $50m private placement in electric sports car manufacturer Tesla, cementing its position at the forefront of low-carbon vehicle developments.

Copyright © 2010 NewNet

The venture capital arm of US car giant General Motors (GM) has committed its first funding and will take a minority stake in electric vehicle specialist Bright Automotive.

The financing by GM Ventures will help accelerate Bright Automotive’s production of the IDEA, a plug-in hybrid vehicle.

The companies first signed a memorandum of understanding last month and the pair intend to complete formal agreements later in the year.

Reuben Munger, chairman and CEO of Bright Automotive, said the relationship is an important step forward for the company as well as a strong endorsement of its automotive team.

‘With this deal, Bright Automotive gets financial support that puts us on the fast-track toward mass production of the IDEA. And perhaps just as importantly, we gain a strategic partner that is a world leader in electrification,’ Munger said.

On completion of the agreements, Bright Automotive will have access to GM technologies in addition to its advanced engine and transmission systems.

‘Funding early-stage start-up companies is a new way of doing business at GM to accelerate the introduction of innovative technology to support our core automotive business and give us a competitive advantage,’ Jon Lauckner, president of GM Ventures, said. ‘In this case, our funding of Bright Automotive will accelerate the introduction of advanced propulsion and light-weight technologies in the commercial vehicle market.’

GM Ventures was funded with an initial investment of $110m and is considering equity investments in a number of auto-related technologies and business models, it said.

The IDEA is a plug-in hybrid, aimed at commercial and government fleets. In addition, the company has also launched Bright eSolutions to deliver automotive expertise to accelerate the adoption of vehicle electrification.

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Electric vehicle designer and manufacturer Tesla Motors has announced details of its long-awaited initial public offering and said it hopes to raise $185m from the share sale.

In regulatory filings, the US-based company said it will offer 1.1 million shares and estimates the initial price at between $14 and $16 each.

Immediately subsequent to the close of the offer, Toyota will purchase from Tesla – by way of a private placement – the number of shares equal to $50m.

Based on $15 per share, the midpoint of the range set by Tesla, this will be equivalent to 3.33 million shares being purchased by the Japanese automaker.

The IPO has been eagerly awaited by the cleantech industry and is likely to prove a turning point in the electric vehicle industry.

Tesla said it will apply under the symbol TSLA for a listing on Nasdaq Global Markets, with underwriters of the offering being Goldman Sachs, Morgan Stanley, JPMorgan and Deutsche Bank Securities.

The agreement with Toyota that was originally announced in May will see the pair form a specialist team dedicated to the development of electric vehicles and gives Toyota a strong foothold in the emerging market.

In addition, it gives Tesla access to one of the world’s largest production plants in which it can produce its upcoming Model S vehicle.

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Small-vehicle company Smart is to launch a US test fleet of electric vehicles as it aims to cash in on growing sales in the country.

Smart USA will roll out the 250 test vehicles in cities in the US states of Oregon, California, Indianapolis and metropolises across the Interstate-95 corridor, Reuters reports.

The microcar company, which distributes cars made by Daimler, has already entered the UK electric car market and hopes to start selling them to the US public from 2012.

In May, Daimler reported US sales of its Mercedes-Benz and Smart Vehicles totalling 18,908 driven by strong demand in both the Mercedes passenger car and light-truck categories.

The electric car market has recently witnessed an uptake in demand in the US with both Toyota and General Motors realigning their footprints in the market as they aim to cash-in on a growing sector.

Copyright © 2010 NewNet

US-headquartered electric car company Tesla, which is soon to IPO, has clarified its previously announced deal with Japanese automaker Toyota stating the companies ‘intend to cooperate’ on the development of electric vehicles.

On 20 May, the companies announced that Toyota would invest $50m in Tesla, by purchasing the Tesla’s listed shares when it is launched on the public markets.

The collaboration has been thrown into some doubt by reports that the company has, however, made no such binding agreement. A pre-IPO filing by Tesla at the Securities Exchange Commission (SEC) said the company’s agreement was not binding. In the event of a ‘pulled’ IPO, the statement suggests that Toyota would have no obligation to invest privately under the agreement.

In a filing to the SEC Tesla said, ‘In May 2010, we entered into a stock purchase agreement with Toyota pursuant to which Toyota will purchase $50m of our common stock in a private placement to close immediately subsequent to the closing of this offering.’

In addition, Tesla said it had made no binding agreement with regards to the sourcing of the parts for the electric vehicles. ‘ In May 2010, Tesla and Toyota Motor Corporation, or Toyota, announced their intention to cooperate on the development of electric vehicles, and for Tesla to receive Toyota’s support with sourcing parts and production and engineering expertise for the Model S. However, we have not entered into any agreements with Toyota for any such arrangements, including any purchase orders, and we may never do so’, it said.

Copyright © 2010 NewNet

An electric vehicle pilot project will take place in the Spanish capital Madrid with automaker Mercedes and renewable energy company Acciona signing an agreement to promote emission-free mobility in the region.

Multinational auto group Daimler, represented in Spain by its subsidiary Mercedes-Benz España, and Acciona will launch the pilot project in which Mercedes will provide 42 electric cars while Acciona will install the infrastructure for 121 charging stations.

José Luis López-Schümmer, president and CEO of Mercedes Benz España, said, ‘The signature of the agreement will allow Acciona and Daimler to combine common interests to build a solid base for successful cooperation that is strategically strong, with the aim of responding to the demand from big cities: urban mobility free of direct emissions.’

The programme will last for four years and up to ten companies will be given the chance to participate.
The charging stations will be located on the premises of these companies, the private addresses of people using the vehicles and certain strategic points that the public will have access to.

Carmen Becerril, president of Acciona, said, ‘As a leading company in sustainable development, Acciona is firmly committed to collaborating in the deployment of electric vehicles, providing an intelligent recharging infrastructure and supplying clean energy for new emission-free cars.’

Acciona will also supply emission-free, 100 per cent renewable power with its guarantee of origin accredited by the Spanish National Energy Commission.

Copyright © 2010 NewNet

Toyota, Nissan, Mitsubishi Motors, Fuji Heavy Industries and The Tokyo Electric Power Company have each become executive members of the CHAdeMO Association to aid the further diffusion of electric vehicles, the companies said in a joint statement.

More than 150 companies and government bodies, including 20 foreign companies, are expected to join CHAdeMO, an abbreviation for ‘charge for moving’.

The companies expected to join include automakers, electric utilities, charger manufacturers, charging service providers and other supporting groups, the group said.

Electric cars are viewed by many governments as a way to reduce emissions but they have to date faced obstacles such as the high cost of batteries and a lack of recharging infrastructure.

Mitsubishi Motors and Fuji Heavy are the only two manufacturers of mass-volume battery-run vehicles.

Mitsubishi Motors plans to launch its i-MiEV model in Europe this year and Nissan plans to introduce its Leaf model in Japan, the US and Europe.

The group said electric vehicles, including plug-in hybrid electric vehicles, can contribute enormously to the reduction of carbon dioxide in the transportation sector.

‘The association is going to promote the electric vehicles through the efforts of technical improvements of quick chargers, standardisation activities of charging methods, and international extension of our knowledge related to quick-charger installations,’ it said.

Copyright © 2010 NewNet

The original list of investors includes private individuals Sergey Brin and Larry Page, founders of Google, who invested alongside institutions like Daimler AG, Valour Equity Partners, Technology Partners, The Westly Group and Compass Venture Partners.

The company filed a registration statement with the Securities and Exchange Commission. US Banks, Goldman Sachs & Co., Morgan Stanley, and JP Morgan are acting as the joint bookrunners for the offering along with German Deutsche Bank.

This fundraising comes on the back of a recently awarded $465m loan by the US Department of Energy(DOE). The company’s expansion is set to create over 1,600 jobs in California and will focus on the development of the Model S, production of which is planned to begin in 2012 with a target production capacity of 20,000 vehicles per year by the end of 2013. Prior to this Teslar, based in Silicon Valley, has only produced custom made cars to order at a rate of about 25 per week.

The DOE has been increasing its focus on the electric vehicle sector in the last two quarters. In September it signed its first loan agreement with the Ford Motor Company for $5.9bn, and has recently finalized a loan with Nissan North America to update a specialist battery making plant in Tennessee.

The DOE was provided $7.5bn for credit subsidy costs by Congress to cover up to $25bn in direct loans to companies making cars and components in US factories that increase fuel economy at least 25 per cent above 2005 fuel economy levels.

Copyright © 2010 NewNet

The programme includes converting ten city-owned Toyota Prius cars to plug-in hybrid electric vehicles and installing ten vehicle-charging stations to power them.

The programme is designed to raise consumer awareness, educate the public about plug-in electric cars and promote Houston and Texas as an electric vehicle center. Seven of the ten stations will be available to the public, representing the largest public charging infrastructure in Texas, according to a statement from the company.

‘We’re committed to making Houston the nation’s green energy capital,’ said Houston Mayor Bill White. ‘That commitment begins at City Hall and these clean-running electric cars, and the charging stations that will be available to all Houstonians will get us farther down that road.’

The ten charging stations provided by Reliant will be located around Houston, at City Hall, the Health Department Office and the Mayor’s Citizens Assistance Office. Reliant chose California-based Coulomb Technologies to provide its ChargePoint networked charging stations. Coulomb’s network will enable the city to administer consumer access to the public stations.

‘We envision thousands, if not hundreds of thousands, of electric cars on our roads in the coming years, making Houston’s air cleaner and the city greener,’ said Reliant Energy’s president Jason Few. ‘This pilot project gives both Reliant and the city of Houston the opportunity to learn more about the performance of electric vehicles and the needs of drivers, while promoting consumer awareness and education about plug-in electric cars.’

Few continued, ‘Ultimately, this is about providing consumers the tools, in this case the charging infrastructure, and information like what we will get from this trial, so they can make informed choices about how they use energy.’

The vehicles selected for conversion are 2009 Toyota Prius hybrids. The plug-in conversion module is the Hymotion L5 provided by A123 Systems, a developer and manufacturer of advanced lithium-ion batteries and battery systems for use in hybrid, plug-in hybrid, and electric vehicles, as well as for the electric grid and consumer markets.

Reliant Energy provides electricity and energy services to more than 1.6 million retail customers across Texas.

Copyright © 2009 NewNet

The two companies have already been working closely to integrate Tesla’s lithium-ion battery packs and charging electronics into the first 1,000 units of Daimler’s electric smart car. In order to benefit from each other’s know-how, the investment enables the partners to collaborate even more closely on the development of battery systems, electric drive systems and in individual vehicle projects, according to a statement.

‘Our strategic partnership is an important step to accelerate the commercialization of electric drives globally,’ said Dr Thomas Weber, member of the board of Daimler, responsible for Group Research and Mercedes-Benz Cars Development. ‘As a young and dynamic company, Tesla stands for visionary power and pioneering spirit. Together with Daimler’s 120 years of experience in the automotive sector this collaboration is a unique combination of two companies’ strengths. This marks another important milestone in Daimler’s strategy for sustainable mobility.’

‘Daimler has set the benchmark for engineering excellence and vehicle quality for more than a century. It is an honor and a powerful endorsement of our technology that Daimler would choose to invest in and partner with Tesla,’ said Tesla chairman, CEO and Product Architect Elon Musk. ‘Daimler is also on the leading edge in the field of sustainable mobility. Among others the lithium-ion pouch-cell battery developed by Daimler and especially designed for automotive applications is of interest to us. We are looking forward to a strategic cooperation in a number of areas including leveraging Daimler’s engineering, production and supply chain expertise. This will accelerate bringing our Tesla Model S to production and ensure that it is a superlative vehicle on all levels.’

As part of the collaboration, Professor Herbert Kohler, vice president E-Drive and Future Mobility at Daimler, will take a seat on Tesla’s board of directors.

The partnership with Tesla complements Daimler’s strategy to advance the electrification of the automobile, the company said.

Daimler is also moving forward the industrialisation of lithium-ion technology. In March, the company founded the Deutsche Accumotive, a joint venture with Evonik Industries.

One hundred smart electric cars have already been undergoing large-scale trials in London since 2007.

Later this year the smart assembly plant in Hambach, France, will start production of up to 1,000 units of the second-generation smart fortwo with electric drive, which will initially be used for mobility projects such as e-mobility Berlin or e-mobility Italy. This year Daimler is also starting small-series production of the Mercedes-Benz B-Class with a fuel cell drive system. In 2010 the company will introduce its first battery-powered Mercedes-Benz. As of 2012, Daimler plans to equip all smart and Mercedes-Benz electric vehicles with own produced lithium-ion batteries.

Copyright © 2009 newnet

In the government’s energy and climate bill, proposals call for vehicle tax on heavy goods vehicles and large buses to be lowered and the energy tax on diesel to be increased by SEK0.40 (€0.04) per litre by 2013.

The government believes that the climate challenges can serves as an economic lever and provide opportunities for new jobs and increased exports. Minister for Enterprise and Energy Maud Olofsson said the time is ripe for investment in sustainable energy and smart technical solutions.

Previous budgets have seen calls for a reduction in harmful emissions. This latest policy examines cutting emissions by a further 2 million tonnes by 2020. In order to achieve this, an environmentally-friendly car fleet would be supported. The current green car premium will be replaced by long-term tax exemption, coming into force January 1, 2010.

The carbon dioxide component of vehicle tax will be raised from SEK15 (€1.3) to SEK20 (€1.8). New light goods vehicles, light buses and camper vans will be included in the carbon dioxide-based vehicle tax system.

The tax on incineration of household waste should be removed from September 1 2010. following its introduction in July 2006. In addition, the government wants more far-reaching coordination of economic policy instruments aimed at plants covered by the EU emission allowance trading system.

The reduction in carbon dioxide tax for heating in agriculture, forestry and aquaculture and industries not covered by the EU emission allowance trading system will be limited. The tax level will be raised from 21 per cent to 30 per cent in 2011 and then again to 60 per cent in 2015.

‘We are making the economic policy instruments in the energy and climate area tougher because this is the most effective way of achieving emission targets. However, the pace and timing of the tougher approach must reflect the sharp economic downturn. The changes must be implemented carefully and gradually so that households and companies have time to adapt. Attention must be given to the operating environment for jobs and enterprises’ concluded Minister for Finance, Anders Borg.

Copyright © 2009 newnet

The EDISON effort (Electric Vehicles in a Distributed and Integrated Market using Sustainable Energy and Open Networks) consists of IBM, Denmark’s largest energy company DONG Energy, the regional energy company of Oestkraft, Technical University of Denmark, Siemens, Eurisco and the Danish Energy Association. Due to the environmental benefits of the electric vehicle technologies, the research will be partly funded by the Danish government.

Market introduction and investment plans in Denmark will result in upwards of 10 per cent of the country’s vehicles being all electric or hybrid electric during the coming years. In order to minimise CO2-emissions linked to electrified transport, global attention on vehicles and infrastructure that will maximize the use of renewable energy for mobility has increased. To achieve this on a large scale, electric vehicles require smart technologies to control charging and billing and to ensure the stability of the overall energy system.

‘Denmark, the host of the 2009 United Nations Climate Change conference and the most energy efficient country in the EU, further underscores its ambitions here with the Edison project announcement’, said Guido Bartels, general manager of IBM’s Global Energy & Utilities industry. ‘There is already broad consensus that both wind energy and electric vehicles have enormous potential for a sustainable energy future — bringing the two together promises to be a winning combination.’

The first step of the consortium is to develop smart technologies to be implemented on the Danish island of Bornholm, designed to function as a testbed. The island has 40,000 inhabitants and an energy infrastructure characterized by a large proportion of wind energy. Creating a testbed on the island will allow researchers to study how the energy system functions as the number of electric vehicles increases. The studies will be simulation-based and will not impact security of supply on the island.

Within the project, researchers from IBM Denmark and from IBM’s Zurich Research Laboratory will develop smart technologies that synchronize the charging of the electric vehicles with the availability of wind in the grid. IBM has also contributed a hardware platform to the Technical University of Denmark that will be used for large-scale real-time simulations of the energy system and the impact of electric vehicles. When completed, the project will contribute to reaching the political objective of increasing the share of renewable energy in overall energy consumption.

‘Electric vehicles are one of the technologies we can use to incorporate renewable energy into transportation,’ said Danish Minister of Climate and Energy Connie Hedegaard. ‘That is why we are making it possible for electric cars to enter the market in order to replace conventional fuel. Projects like Edison show how it’s possible to create sustainable solutions in real life.’

While various companies have announced initiatives in Denmark that will contribute to the overall adoption of an electric vehicle system, EDISON will address the entire end-to-end process to make the system possible — this includes ensuring overall grid stability and supporting the increased use of renewable energy. The smart technologies developed within EDISON may also be applied to the management of other types of decentralized batteries throughout the grid.

‘Electric vehicles have enormous potential for creating a cleaner energy system as well as a cleaner transport system,’ said Tim Mondorf, Nordic business development executive, Energy & Environment at IBM. ‘We look forward to creating a working, intelligent management system first on the real-life test laboratory of the island of Bornholm, and in the longer term for Denmark as a whole”

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