New battery development in Michigan

We’ve just pulled in some news in response to two of our previous stories about the state of Michigan offering tax credits and development money to companies making batteries. It seems that now there are four organizations looking to build plants in the state, which is to add to GM, Ford and Chrysler who have their own projects in development.

These plants should account for around 6,600 jobs and the companies behind them will spend an estimated $1.7 billion to build. Here are the four most likely companies moving to Michigan.

• Johnson Controls-Saft Advanced Power Solutions has partnered with Ford and plans to build its plant in Holland Michigan.
• LG Chem-Compact Power, which has the deal to build battery packs for the Chevrolet Volt.
• KD Advanced Battery Group LLC, a joint venture between Dow Chemical, Kokam America and Townsend Ventures.
• A123 Systems Inc plans to build a plant in Livonia Michigan to provide lithium ion battery packs for Chrysler’s ENVI projects.

There were other applications from hopeful battery makers that were not accepted, but not listed on any report.  A number of other Michigan-based projects were also announced, which bodes well for the state.

Below is part of a press release about these new plants and projects.

PRESS RELEASE:

Governor Granholm Announces Companies Investing Over $2 Billion, Creating More Than 7,700 New Jobs in Michigan

LANSING – Governor Jennifer M. Granholm today announced that Michigan’s aggressive strategy to diversify the economy and grow entire new industries has resulted in 14 job-creating projects, generating more than 7,700 new jobs and over $2 billion in new investment in communities across the state.

The projects include: four advanced-battery manufacturing projects; six company expansions in diverse industries like agriculture, automotive research and development and IT business software; a new film production studio; and three brownfield redevelopments that will transform blighted and abandoned sites into new centers of economic growth and activity.

“The depth and scope of these projects demonstrate that Michigan has exactly what companies are looking for as they choose where to locate and grow their business – an aggressive economic growth strategy, a competitive business climate, innovative economic development tools and an outstanding workforce,” Granholm said. “If companies are looking to invest and create jobs, we want them to know that Michigan is a great state to do business.”

Project details include:

Johnson Controls-Saft Advanced Power Solutions LLC (JCS) – Milwaukee, Wisconsin-based JCS, one of the leading independent suppliers of lithium-ion batteries for hybrid and plug-in hybrid electric vehicles, plans to invest $220 million in a new advanced-battery manufacturing facility in Michigan to produce lithium-ion cells for automotive applications. The project is expected to create 498 new jobs. Based on the Michigan Economic Development Corporation’s (MEDC) recommendation, the Michigan Economic Growth Authority (MEGA) board today approved a state tax credit valued at $48.5 million over 15 years and a battery cell state tax credit valued at $100 million over four years to help win the project over competing U.S. sites. JCS has partnered with Ford Motor Company on battery-cell manufacturing, pack and system development, and integration capability. http://www.saftbatteries.com

LG Chem-Compact Power (LGC-CPI) – Korean-based LG Chem, in partnership with its U.S. subsidiary Compact Power and General Motors, has proposed a plan to manufacture lithium-ion battery cells in Michigan. LCG-CPI plans to invest $200 million in the project, which is expected to create more than 300 new jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $25.2 million over 15 years and a battery cell state tax credit valued at $100 million over four years to help win the project over competing U.S. sites. http://www.compactpower.com

KD Advanced Battery Group LLC (KD) – The joint venture of The Dow Chemical Company, Kokam America Inc., and Townsend Ventures LLC, formed to construct and operate a large scale battery and cell manufacturing facility in Michigan, plans to invest $665 million in a new 800,000 square-foot battery manufacturing facility to produce its patented Superior Lithium Polymer Battery technology for the electric and hybrid electric vehicle markets. The project is expected to create 885 new jobs. Based on the MEDC’s recommendation, the MEGA board today approved a state tax credit valued at $44.6 million over 15 years and a battery cell tax credit valued at $100 million over four years to help win the project over competing U.S. sites. http://www.dow.com http://www.kokamamerica.com

A123Systems Inc . – The Watertown, Massachusetts-based designer, developer and manufacturer of rechargeable lithium-ion batteries and battery systems plans to invest over $600 million in initial coating, cell manufacturing, and pack assembly in Michigan. The planned project is expected to create over 5,000 new jobs. Based on the MEDC’s recommendation, the MEGA board today approved a high-tech state tax credit valued at $25.2 million over 15 years and a battery cell state tax credit valued at $100 million over four years to help win the project over competing U.S. sites. A123Systems is one of the state’s six Centers of Energy Excellence and has entered into a development and manufacturing agreement with Chrysler LLC to provide battery systems for the company’s ENVI product line. http://www.a123systems.com

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“All of these projects are the result of a proactive economic development strategy,” MEDC President and CEO Greg Main said. “We have identified key growth sectors, and we are aggressively targeting those projects that will help us diversify Michigan’s economy.”

In her 2009 State of the State address, Granholm emphasized the importance of creating jobs, diversifying Michigan’s economy, and providing education and training to workers. Since January 2005, the governor and the MEDC have announced the creation or retention of more than 320,000 jobs as a result of targeted assistance provided by the MEDC.

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the MEDC’s initiatives and programs, visit the Web site at www.TheMEDC.org.

Big3 get a hybrid boost

Now this is what I love seeing…the government putting their money into the Big 3 in a big way. I know I’ve been harsh on the president in my last few posts, but I for one don’t like the idea of bankrupting GM, which seems to be the plan of the current administration.

As part of the administration’s $787 billion stimulus package, the feds plan to spend $300 million to replace its current fleet of vehicles. Some $285 million of that amount will be used to purchase some 17,600 new vehicles from the Detroit 3 automakers by June 1st. Each new vehicle will be required to manage at least a 10 percent improvement in overall fuel efficiency to be considered for purchase.

In the first wave of orders will be 2,500 hybrid sedans and the sales will be finalized on April 15th. We’re not sure how the sales will be divided amongst Ford, GM and Chrysler, but Chrysler doesn’t have a hybrid to offer so it seems that they might be out of the running.

The remaining $15 million of the program money will be used for pilot programs focusing on “commercially available compressed natural gas and hybrid buses, and all-electric vehicles.” Obama said that this action will end up “saving the government significant money over time.”

Upgrading the government’s current fleet for more fuel efficient models will save 1.3 million gallons of fuel per year and lower carbon emissions by 26 million pounds.

A123 to power the future

As a company A123 is leading the way in American battery manufacturing as well as research and development. They are also looking to make their batteries right here in the good ‘ole US of A.

Earlier this week, Chrysler confirmed it would be using battery packs supplied by A123 to power it’s ENVI program of cars. To make this deal work , A123 will build an assembly plant somewhere near Detroit Michigan. The proposed plant would eventually employ 14,000 people and have the capacity to supply 5 million hybrid vehicles or half a million battery electric vehicles.

A plant of that size won’t be cheap, and A123 is reportedly planning to launch large scale manufacturing in more than one location. To help defray a sizable portion of the $2.4 billion it will cost to get these plants built, the battery maker has applied for $1.84 billion from the Department of Energy. A123 confirmed that at least one plant will be built in Michigan regardless of whether or not its loan application is approved. Currently, A123 has plants in Massachusetts, South Korea and China.

Of course A123 will also take advantage of monies and tax credits offered by the state of Michigan, but one wonders why building a new facility is preferred over taking an existing location that might be lying fallow in the state.

Update

A123 Systems now has added an additional $69 million in new investment money to their bank accounts. General Electric put up $15 million, bringing its ownership in the advanced battery start up company to over 10 percent. The news is significant since Chrysler announced that A123 Systems would be its  primary supplier of lithium ion batteries for electric vehicles.  SAIC of China also awarded the company a large contract to supply batteries for their EV’s.

A123 Systems is still waiting for an answer from feds on how much, if any, money it will get through the ATVM loan program and stimulus funds for green technology projects. In the meantime, A123 is moving ahead with plans to build a new factory in Michigan that will produce automotive lithium ion cells and modules.

Reserve your Tesla today

I don’t know about you, but to me Tesla is a company with both nerve and foresight mixed in with a lot of faith. They have a great product in their all electric Roadster and have added to the companies mystique with the new Model S and extended range S Signature EV. It seems like more people are gaining that faith in Tesla because in the past two weeks since the official release of the Model S orders for Tesla cars have shot up the charts.

711 people have paid up to $40,000 in deposit money for the sedan due out late in 2011. Currently we don’t have a breakdown on how many of the standard S have been ordered or the S Signature, but no matter how you slice it the car is a hit. Standard model S’s require a refundable $5,000 deposit while the extended range Signature model commands a $40,000 deposit.

With all the initial success of the Model S Tesla is also getting lots of people standing in line for their Roadster. The company claims that over 1,000 enthusiasts have signed up for one of the 2000 cars to be made in the companies first run.

Detroit Electric seeks dealerships in U.S.

As the automotive market gets tighter and less cars are being sold it seems that more young companies are coming up with alternative power vehicles to replace them. If you look at the way things are headed in the U.S. it is clear that GM is on its way out after 100 years, and the future of Chrysler is gloomy at best, but companies like Tesla, Fisker and now Detroit Electric are offering electric cars to anyone willing to invest in the future.

Detroit Electric is a new name on the horizon, but have been making news in the past month. The company is based out of the Netherlands and selling cars made in Malaysia. Currently they are looking for dealers in the U. S. to market and sell the companies upcoming electric vehicles and are doing it in a different way. Dealers must fill out a formal application to sell the vehicles starting in early July.

DE plans to have between 140 and 150 dealers all exclusively selling vehicles as the company will not allow dual dealerships. Every dealer selected will have to build or purchase a building that only sells Detroit Electric Products.

The vehicles are expected in the U.S. about 18 months from now with the company predicting around 40,000 first year sales. Considering the economy and origin of the cars plus the fact that no one has heard of Detroit Electric I’d have to say those numbers are very optimistic.

I for one would love to see these cars, but to date it doesn’t seem that they have been taking part in any of the numerous auto shows worldwide.

A great time to buy a car

Right now is about one of the best times in a long time to purchase the car you need. If you’ve been reading this blog you are aware that several car manufacturers have come up with great new programs to get buyers into a new vehicle. Some hot new cars are hitting the market and you may be wondering if it is a good time to make your move.

Maybe, like a lot of Americans, your credit is not as good as you’d like it to be. Possibly you have doubts about your job and money is tight. Considering the present economic climate a lot of people are in this boat, but you still need good, solid transportation for work and your family.

What we do at CarloanASAP

We deal with people and credit issues everyday. Our job is to find a local dealership that is willing to work with the credit challenged. You may have been to a local lot and talked to sales people that wanted you to buy, but looked at your credit history and couldn’t help. This scene happens all too often in the U.S, but at this time you see that car dealerships are begging people to come into their showrooms.

All you need to do is click here and fill out an easy form…CarloanASAP will do the rest. We will find a couple of local dealerships that will work with your credit issues and willingly help you find the right car for you.

In most cases people with poor credit are relegated to buying a used car, but with the prices dropping and deals all over the map, we might be able to get you into a new vehicle at a price you can afford…but first you have to visit our site.

Easy as 1-2-3

1. Visit our site…click here.

2. Fill out our form.

3. Wait a couple of days and we will contact you.

At CarloanASAP we match you with the best local dealers that want your business. This isn’t rocket science, it’s just what we do. Act Now and Drive away with the car you need. Click here to start step 1.

Now I’m excited

One of the great things about doing this blog is seeing the cars of the future. When I was a kid growing up around Detroit my friends and I used to keep mental notes on which of the new cars we’d see on the streets each season. We actually played baseball next to the railroad tracks that hauled in frames to Ford plants, and new cars would exit the city on those same rails. We’d see them by the hundreds leaving the plants as we played the greatest game ever…ah, baseball and cars, a little boys dream.

Now that I’m kinda grown up it is a thrill to witness all the changes coming in the world of cars. One that I like from it’s styling cues is the iMiEV from Mitsubishi. I love the bubbled futuristic lines of this electric concept, and have watched the news it has generated. Most of that news has been about the car being tested in Europe and Asia—alas, it seemed that my dream car may never make it to our shores.

Today, at the New York Auto Show, Mitsubishi officially announced that their iMiEV will indeed be introduced to America, but likely under a different name. Details have been sketchy, but AutoBlog Green is reporting that the car should be on sale here before 2012. Europeans can expect to see the iMiEV in 2011, but Mitsubishi is only slating production at 20,000 units.

The main problem isn’t making the car, it’s the batteries. GS Yuasa can not manufacture that much to keep up with those minor production levels even in Japan. My guess is that, if the car get as much sales momentum as it is getting in positive press, then Mitsubishi will turn to other sources and fill the demand. Until then I for one will grab my old baseball glove, have a catch with the kids, and dream of the old days again.

March car sales falling

I guess this one falls under the category of “I’ve heard that before…” March’s car sales figures have just been released and it’s not good news for anyone.

Overall car sales for GM were down 44.7% in March 2009 compared to last years numbers. Looking at the year to date GM has slipped by 48.8% and are facing bankruptcy.

Chrysler is not doing any better with a decline of 39.9% for March. There was a bright spot in the month however, the men from Mopar sold 100,000 units for the first time since September of ‘08.

Ford posted a 42.1% decline in sales for March, but that is an improvement over their Feburary loses which tallied 49.5%. Out of the Big 3 U.S. automakers, Ford is the most solvent and their retail share is increasing as news from Chrysler and GM seems gloomy.

Japan’s Big 3 have all seen loses as well. Toyota dropped 39% overall, Honda’s sales numbers slid 36.3% and Nissan dipped by 37.7%.

Hybrid sales figures for March

Toyota has hit in the U.S. with the Prius, it is the flagship of their hybrid line, but March sales numbers are weak with loses of 55%. 8,924 cars were sold in March with 24,277 copies of the Prius crossing showroom floors for the year. Although that is a nice number it is down from 42,970 at this point in 2008.

Honda sold 2,869 copies of their Civic Hybrid in March with a total decline in sales of 20.8% from the 3,769 versions they sold in ‘08. Their new entry into the hybrid race is the Insight and in just 7 days of sales Honda moved 569 units.

Keep in mind that these numbers represent sales in the U.S. and not a worldwide total. Somehow we don’t seem to get the same coverage for sales in Europe or Japan.

Just so you know, Italian cars are selling well…Ferrari and Maserati are moving their stylish iron to the rich and famous. 2008 sales for Maserati were up 22%, but that was only selling 7,700 cars total for the season. I guess when it comes down to it the monied elite will always need a new red car in the garage this year.

GM “planning” on Chapter 11

As we’ve been saying all along it looks for all the world that GM is heading for Chapter 11 bankruptcy that may be coming sooner rather than later.

According to very anonymous sources within GM, principles have begun “intense and earnest” preparations for a possible bankruptcy filing. The unnamed source actually spoke to CNNMoney.com and said that GM is still hoping to win concessions from creditors and unions to avoid a possible bankruptcy, but the June 1st deadline given to GM by the U.S. Treasury department has led to intense bankruptcy preparations within the company.

GM is hoping that those creditors agree to take an equity stake in the company in return for reducing debt by at least two-thirds. GM owes about $28 billion to holders of unsecured debt.

What makes little sense to this writer is that GM is spending millions on advertising for their “Total Protection” program that covers all brands in the General Motors stable except for Saab. The program is meant, in part, to instill confidence in buyers that GM is solvent. Experts all agree that if news of a possible bankruptcy were to become public knowledge sales would plummet and the problem would worsen. Read more >>

New solar charging stations in Chicago

We are all waiting for the time when electric vehicles become commonplace, but until that happens we must build an infrastructure to recharge those EV’s.
To date there have been some innovative solutions and using the sun is one that seems to be taking hold.

Chicago based Carbon Day Automotive has recently unveiled the first solar powered EV charging station in the city of Chicago. The Solar Plug-in Station is designed by renowned architects Adrian Smith and Gordon Gill and built by Carbon Day Construction.

Carbon Day integrated the charging station into the P.V. panels, integrated the battery storage component for shady days, and created enough structural flexibility to replace the panels as new technologies develop in the solar industry.

Pure Energy, LLC, Northbrook installed the sculpted piece and interfaced it with the concealed underground battery pack enhanced to store solar energy, specially designed and developed by All Cell Technologies, a thermal management and power pack solutions manufacturer.

The Solar Plug-in Station will pave the way to fuel PHEV’s, EV’s  and will be used daily by the City of Chicago Dept. of Fleet Management.

Carbon Day Automotive is the sole Midwest distributor for the Charge Point system made by Coulomb Technologies.

Top 5 conventional cars

Earth Day was on April 3rd and on that day NADAguides.com announced the top 5 cleanest and most fuel efficient conventional cars available. Hybrids and electrics were not on the list because they don’t fit the category. Hybrids aren’t the only choice for those who want to minimize the environmental impact of their driving.

Top 5

1. Chevy Cobalt
2. Ford Focus
3. BMW Mini Cooper
4. Pontiac G5
5. Hyundai Elantra

“It is no surprise that on Earth Day the automotive world will be focused on the latest and greatest hybrid vehicles, but the fact remains that consumers are still overwhelmingly buying and driving conventional gasoline cars,” said Michael Caudill, spokesperson for NADAguides.com. “The Top Five Cleanest Conventional Cars show that consumers have options for vehicles that are easy on the environment without the higher price point of emerging hybrid technology.”

While the world still waits for more hybrids, PHEV’s and EV’s to hit the market it’s nice to know that gas powered cars are getting better environmental ratings. The list was based on the mileage, smog producing emissions and greenhouse gas emissions.

Tata Nano’s selling fast

Tata’s Nano isn’t officially being sold in dealerships yet and already it is a hit in India. Last week we reported that the first 100,000 cars would be sold in a lottery system, well the car company decided to   sign up buyers with a unique booking form.  After all these forms have been collected, a computer will randomly choose the first 100,000 people to take possession of a Nano in July.

In just five days Tata has already sold over 51,000 booking forms to its dealer network and individual customers, with another 30,000 orders being taken from a number of Tata partners. Each order form is being sold for 300 Rupees, which is about $6 in U.S. money. Prices for Nanos are reportedly ranging from between 95,000 and 145,000 Rupees or about $1,880 to $2,780, which  makes this the World’s Cheapest Car.

Government officials are not sure what kind of impact there will be on India’s roads. Currently those roads are jammed with bicycles and motor scooters, but if Tata can produce the tiny Nano fast enough the countries roads will have a totally different look to them. Let’s hope someone thought of adding gas stations to the infrastructure.

Phill files for bankruptcy

When it comes to alternative fuels to run tomorrow’s cars, Compressed Natural Gas seems like a real winner. First it is abundant in the U.S, secondly it is relatively cheap to produce, and third any car can be converted to use CNG cheaply. So what’s not to like here?

We’ve seen Honda take up the mantel for nat gas vehicles, but their effort has slowed, seemingly in favor of  hydrogen power. Most experts in the field will tell you that mass use of hydrogen to move machines is at least 10 years away, but Honda is making their FCX Clairity today.

As further evidence of their shift in focus they bought Fuelmaker last year, didn’t really want the company, but turned down offers to sell the system to the likes of Boone Pickens and his company Clean Energy Fuels.

Fuelmaker makes the Phill system, which allows one to attach their home gas lines to the Phill compression unit and fill their CNG vehicle in their garage. Pickens wanted the system because he believes like many that CNG is the best alternative fuel as an interim technology before we go all electric to power vehicles. The U.S. has vast reserves of natural gas and tapping them would greatly reduce our dependence on foreign oil and help reduce greenhouse gasses, which has been the idea all along.

It remains to be seen how all of this will play out, but my bet is that Pickens will pick up the pieces of Fuelmaker and fund some new R&D on the product then renew his push for CNG in cars all over the country.

Fisker finds funding

Getting a new car on the road in these tough automotive times has to be an ordeal, but Fisker seems to be doing just fine. Finding venture capital for an all electric car with an $87,900 starting price tag means bringing in people with deep pockets, but Fisker has done that again.

On the heels of the news that the start up has signed 30 dealers to sell the car Fisker Automotive has recently announced that they’ve procured another $85 million in a fourth round of venture capital funding. Some of the money will come from Kleiner Perkins Caufield and Byers,  and the New York-based Eco-Drive Partners LLC, a European-American investment consortium.

CEO Henrik Fisker said he was proud to have Eco-Drive on board and that, “This investment is a strong endorsement of our business model and future product offerings in a challenging business environment.” Those future product offerings include the Karma and the Karma S convertable.

It seems that as established automakers like GM and Chrysler are on their last legs, but a new breed of start ups like Fisker, Tesla and Venturi are in position to take their place. What remains to be seen is if the auto buying public reaches into their bank accounts to purchase these new EV’s or if initial interest is just amoung the rich.

Barbie turns the big 5-0

Turning fifty is a big deal to most, of course one never asks a woman her age, but in this case Mattel is telling the world with the help of Fiat.

Barbie has been on the market for 50 years and looking rather good for her age. Fiat has been making the 500 for 50 years so it seemed like a good fit for both companies.

The new Fiat 500 will come in nail varnish pink with a blinged out interior to match. The dash will have jewel inlays and a hot pink color scheme rounds out the interior.

All of this is done as a promotion for both Mattel and Fiat and will probably be a one-off at best. The car is in London through Monday and will then continue its big European tour. I’m not thinking that Chrysler is going to be interested if Fiat wants to make this a regular model for the new 500.

PRESS RELEASE:
A Fiat 500 Show Car Birthday Gift For Barbie®
Fiat 500 makes headlines once more, as befits an authentic Made in Italy icon. This time it’s an original Fiat 500 show car dedicated to the most famous fashion doll ever: Barbie®. This exceptional vehicle, created by a partnership between the Fiat Centro Stile and Mattel, will be given officially to Barbie® on 9 March next, at her fiftieth birthday celebrations in Milan.

It’s a fashionista car but quite tongue-in-cheek and with lots of charm: just like Barbie® herself. The gleaming paintwork resembles varnish and definitely makes for a shock effect, achieved with deep lacquered colour using ultra fine aluminium plunged in deep, up-to-the-minute pink. The seating is upholstered in strikingly soft fabrics: silver laminated Alcantara® is not only trendy but plush to the touch and its glimmer bounces as far as the roof panel. Then there are mats enhanced with natural silk yarn and sleek viscose, not to mention lip glosses in brilliant colours stored in the glove compartment, plus a LED-decked vanity mirror to ensure perfect application. And there’s more. The car has more features than a crown has jewels! Crystals sparkle on interior bezels, hubcaps, outer window mouldings and antenna and even outline the doll’s famed silhouette on the pillars. Lastly, this Fiat 500 show car also has its own glossy cover, featuring the distinctive Sixties version of the Fiat 500 and a Barbie® autograph.

The latest Fiat 500 show car will appear in public for the first time on Monday 9 March, from 6.30pm onwards, when it will race through the quintessential streets of Milan’s fashion district. Barbie® will be aboard and she’ll have her own special driver: Ken, of course. On arriving at the entrance to La Rinascente department store, in Piazza Duomo, Barbie® will leave the car and walk the unique pink carpet created just for her. The band Nena will be playing live in the background, reviving some of the most famous pop songs from the fifty years of the legendary fashion doll’s existence.

Roberto Giolito, creator of the Fiat 500, had this to say about the Mattel-Fiat partnership scheme: “All-American Ms Barbie® already has a number of ‘transport solutions’ available, like thundering GTs and motor homes with endless accessories. So if she’s spotted a 500 and wants one as a gift for this landmark birthday, it’s a signal typical of modern times that there’s a renewed need for dreaming the simple things in life, which give so much, allow us to lighten up, thrill who’s born beautiful or just feels beautiful, but doesn’t have to prove anything. After all, Barbie® already has everything. Sleek Barbie® is a looker, smart enough to listen to everyone, a universal ambassador opting for a car that never divides but frees everyone from having to declare their social status. The new 2009 version celebrates her birthday with a model that offers a better view of the sun and the stars, all the better for continuing to dream, especially daydreams.”