GM Hires Adviser to Help Sell Saturn

(Source: Jalopnik,  Freep & World Car Fans)

Looks like American automakers have found at least one more buyer for their vehicles. The U.S. government is planning on the purchase of $285 million worth of fleet vehicles that get better gas mileage than the current fleet. Under the plan, the General Services Administration will purchase more than 17,500 vehicles as a part of their existing deals with Chrysler, Ford, and General Motors.

U.S. President Barack Obama, and his administration, have said the purchases will take place by 1 June. Although it is unclear what will happen to the older fleet vehicles being replaced, many will likely be sold at government auctions.

The purchase is hardly a surprise. In the much talked about stimulus package approved by Congress, $300 million was included for the automotive purchase. This is not a gigantic purchase in the grand scheme of things, as the Big Three sold a combined total of 380,000 vehicles for March 2009. Still, the move may help to bolster confidence in the sector, while even a marginal increase in revenue would be welcomed by the automakers.

More than 14% of the vehicles will be hybrid sedans. 2,500 orders for the vehicles, which will likely include the Chevy Malibu, Ford Hybrid Fusion, and Saturn Aura, will be placed by the end of next week.

Image: Jalopnik

If nothing else, the move underscores the administration’s willingness to put its money where its mouth is: Last week, Obama sent GM and Chrysler back to the drawing board, saying they needed more aggressive restructuring plans if they were to get more government loans to survive. 

But he also promised this big government buy of fuel-efficient vehicles and created a special office to help communities in Michigan and elsewhere struggling with the downturn in the industry. In a prepared statement released today along with details of the planned purchases, Obama said, “The problems that caused this economic crisis weren’t created in a day and it will take time and hard work to get our economy back on track. But I am 100% committed to a strong American auto industry, and we will stand with America’s auto workers and their families during these difficult times.”

(Source: McKinsey Quarterly ;Video:  The Auto Channel @ YouTube)

The fastest way to reduce America’s dependence on oil imports is to convert petroleum-driven miles to electric ones by retrofitting the SUVs and pick-ups now on the road with rechargeable batteries. Here’s how.

(Source: New York Times- Greenwire; Image: Steve Edwards @Flickr)

Roughly one-third of the nation’s total greenhouse gas emissions are from the transportation sector, according to government estimates, and several key lawmakers have said that no climate and energy measure can be complete without addressing transportation.

Sweeping climate and energy legislation that Democratic leaders of the House Energy and Commerce Committee unveiled yesterday takes direct aim at greenhouse gas emissions from vehicles across the transportation spectrum, from passenger cars to oceangoing ships.

 The bill from Reps. Henry Waxman (D-Calif.) and Ed Markey (D-Mass.) would create a suite of federal emissions standards for cars and light trucks, as well as trains, heavy-duty trucks, and ships. It also seeks to curb emissions by pushing the development of plug-in electric vehicles and infrastructure and by setting a “low-carbon fuel standard” for the transportation sector.

Roughly one-third of the nation’s total greenhouse gas emissions are from the transportation sector, according to government estimates, and several key lawmakers have said that no climate and energy measure can be complete without addressing transportation.

One of the bill’s provisions would require the president to “harmonize” federal auto fuel economy standards with any future emissions levels set by U.S. EPA and the strict emissions standards that California is hoping to enforce later this year, if it receives the waiver it needs to do so.

Earlier this year, the White House signaled that it was considering a similar move that would blend new corporate average fuel economy, or CAFE, standards with the auto emissions standards California is fighting to enforce. Under the federal Clean Air Act, California is the only state that can enforce its own standards — but only with an EPA waiver. If California receives the waiver, other states would be permitted to enforce the same tailpipe standard. Thirteen other states and the District of Columbia have already moved to adopt the stricter standards, and a handful of others have indicated they will follow if the waiver is granted.

The Waxman-Markey bill also pushes for greater use of plug-in electric cars and trucks, which are seen as a promising way to curb emissions and displace oil consumption by using electricity in the transportation sector.

The bill calls for states and utilities to develop plans to support the use of plug-in hybrid electric vehicles and all-electric plug-ins and for the Energy Department to launch a large-scale electric demonstration program. The state plans would determine how utilities would accommodate large fleets of plug-ins and would consider a host of charging options — including public charging stations, on-street charging, and battery swapping stations — and establish any necessary standards for integrating plug-ins into an electrical distribution system, including Smart Grid technology.

Click here to read the entire article.

(Source: Financial Times)

Despite the US government’s determination to increase efficiency standards and become energy independent, hybrid cars sales in the US are falling at a ‘breakneck pace’ – even faster than overall car sales, reports the LA Times:

Last month, only 15,144 hybrids sold nationwide, down almost two-thirds from April, when the segment’s sales peaked and gas averaged $3.57 a gallon. That’s far larger than the drop in industry sales for the period and scarcely a better showing than January, when hybrid sales were at their lowest since early 2005.

In July, U.S. Toyota dealers didn’t have enough Prius models in stock to last two days, and many were charging thousands of dollars above sticker price for the few they had.

Today there are about 80 days’ worth on hand, and dealers are working much harder — even with the help of $500 factory rebates — to move the egg-shaped gas-savers off lots from Santa Monica to Miami.

The gist of the story is even though hybrids are more expensive and therefore less attractive to consumers in these recession-bound times, car makers are compelled by government regulations to continue developing them. Hybrid cars are not particularly profitable for the industry either; Toyota only recently began to turn a profit on its Prius.

Click here to read the entire article.

(Source: Autobloggreen)

Spain’s fourth largest city is getting 75 public electric vehicle recharging stations throughout the city this year. Spain’s ambitious program of introducing EVs, hybrid and plug-in cars (a million units for 2012) is promoting the new network under the Movele program. Seville is getting recharging stations in the most used parking lots in the city, as well as at the airport, city hall offices and other official buildings. The plan includes 500 electric cars, which will be allocated not only to public institutions but for private users as well. It’s expected that each simple recharging post will cost €1,000.  The picture shows a recharging post in Lisbon, Portugal.

Click here to read the entire post. 

(Source: Autobloggreen) 

 

As we’re sure you’ve noticed every time you’ve gone to refill your gas tank in the last few months, gas is once again relatively cheap. Just under a year ago, the price for a gallon of fuel was about double what it is today in most parts of the country, and those high costs were driving the sales of hybrids – both new and used – to record levels. Now? Well, not so much.

According to Kelley Blue Book, used hybrid prices have fallen by an amazing 23.5 percent since last summer, and 4.5 percent of that has come in the first two months of 2009. It’s not just fuel prices that are causing hybrid values to plummet. Due to the lack of discretionary spending money and despite the savings on each tank of gas, the extra cost associated with a hybrid at the time of initial purchase is something that many buyers are unwilling to consider.

Click here to read the entire article.

(Source: TreeHugger)

(Source:  GM’s Fast Lane Blogs, via TreeHugger )

GM Defends the Volt’s Design
A recent Carnegie Mellon University study (pdf) challenged the real-world gasoline savings and cost effectiveness of plug-in hybrids like the Chevy Volt. GM’s Vice President Global Program Management, Jon Lauckner, who has been involved in the Volt project responded on the company’s blog. Find out what he had to say below.

All-Electric Range

The first thing is the electric range of the car. Somewhat strangely, the CMU study found that “for urban driving conditions and frequent charges every 10 miles or less, a low-capacity PHEV sized with an AER (range) of about 7 miles would be a robust choice for minimizing gasoline consumption, cost and greenhouse gas emissions.”

7 miles? Really?

Well, Jon Lauckner responds:

I’ll cut to the chase; for starters, the study’s endorsement of plug-in vehicles with only a “token” electric-only range (seven miles) overlooks the inconvenience of recharging for the vast majority of drivers (approx. 90 percent) with a daily commute that exceeds seven miles. I mean, honestly, how many customers are going to stop every seven miles and wait at least 30 minutes (if a car has a high-capacity charger like the Volt with the same level of electrical energy to match it) for their battery to be recharged? […] And, if customers don’t recharge during the day, these “token” plug-ins will run primarily on gasoline. How is that consistent with reducing green house gas emissions and our dependence on petroleum?

Click here to read the entire article.

(Source: Carnegie Mellon University Design Decisions Laboratory)

PITTSBURGH— Carnegie Mellon University professor Jeremy J. Michalek and researchers Dr. Constantine Samaras and C.-S. Norman Shiau report in a new study that plug-in hybrid electric vehicles with small battery packs may be the best bet for saving drivers money while addressing U.S. dependency on foreign oil and global warming.

            In an article to appear in the journal Energy Policy, the authors find that urban drivers who can charge their vehicles frequently (every 20 miles or less) can simultaneously reduce petroleum consumption, greenhouse gas emissions, and expenses with a plug-in hybrid vehicle whose battery pack is sized for about 7 miles of electric travel per charge. In contrast, plug-in hybrid vehicles with large battery packs – sized for 40 or more miles of electric travel – are too expensive for fuel savings to compensate, even in optimistic scenarios.

            Plug-in hybrid vehicles use charged batteries to propel the vehicle partly using electricity instead of gasoline, which gives them potential to reduce petroleum consumption and greenhouse gas emissions. “Larger battery packs allow drivers to go longer distances on electric power. But batteries are heavy and expensive,” says Michalek. “We accounted for the effects of additional batteries on vehicle cost, weight and efficiency in order to understand the net implications on petroleum consumption, cost, and greenhouse gas emissions. Over a range of scenarios — including fluctuating gas prices, new battery technologies or high taxes on carbon dioxide emissions — plug-ins with small battery packs are economically competitive with ordinary hybrid and conventional vehicles for drivers who charge frequently.”

Click here to entire press release.