No news is good news

Amidst all of the bad news we seem inundated with daily about the car biz, there are still stories that keep hope alive that this whole mess might just go away. This is not exactly one of those kinds of stories, but it does show a ray of hope.

Chrysler has been working diligently on their ENVI line of electric cars, in fact the Lotus inspired Circuit EV is slated to be their first with a promised debut in 2010.

In the spirit of keeping it all in America Chrysler made it official that their battery of choice will be provided by the domestic company A123. What qualifies this as “no news” is that A123’s batteries have powered the Chrysler prototypes all along. What is new however is that A123 has come up with some vast improvements in their nanophosphate lithium ion prismatic battery cells, modules, and battery packs. The hope is that this new technology could deliver a lot more miles per charge and charging times could be reduced to minutes instead of hours.

The testing for the new battery packs continues at Harvard and other R&D facilities, but because of Chrysler’s backing, A123 has committed to building a plant in Michigan to deliver the batteries. You may recall that Michigan governor, Jennifer Granholm, and legislators have offered large sums of backing money to bring just this kind of industry to the state. No doubt this partnership will benefit everyone concerned and help keep much needed jobs in Michigan.

Kia’s got Soul

When you look at all the cars on the market today and how trends are quickly shifting, it becomes apparent that we are headed for a new automotive style. Kia is one of those car makers that seems to be flying under the radar, but as an owner of one of their vehicles I can tell you that they are a company to watch.

Kia’s latest entry is the Soul and it is sure to be a hit with the younger crowd. Being a Korean company the name Soul is obviously a play on words for the countries capital of Seoul, but the company was not playing around when they brought the first concept of the Soul to car shows in ,06.

The Kia Soul has over 50 features that make it truly customizable straight from the factory. With a starting price of about $13,995.00 it is cheaper then its competition that being the second generation Scion Xb & Nissan’s boxy Cube.

The base model Soul comes very well equipped with a 1.6L engine, 5-speed manual transmission, air conditioning, power windows, power door locks, auxiliary audio input jacks, solar glass, 15-inch steel wheels with hubcaps. Standard safety features include 6-airbags, ABS system, tire pressure monitoring system, and electronic stability Control.

Kia is definitely putting a youthful spin on their advertising for the car and from what we hear it is working. When you look at the car it’s not all that radical a departure from the styling cues it has taken from the Scion Xb, but it it’s standard equipment and pricing that should help re-define Kia and bring a new flair to the road.

Honda to make drastic production cuts

If you think for a moment that only domestic automakers are in financial trouble then think again. Toyota’s business worlwide is dropping, and now it is apparent that Honda’s position is slipping as well.

Honda’s sales in 2009 are down more than 30% compared to the first two months of 2008. Considering these dismal sales statistics, Honda is looking to cut production in North America along with pay for workers.

Automotive News is reporting that Honda will cut production by 62,000 units during the company’s first quarter. The reductions will be achieved by closing plants for 13 days in May. Honda has traditionally paid its hourly workers even when plants were down, but this time workers won’t be compensated for six of the days.

Honda will also cut salary and hourly pay in 2009, and reduce or eliminate bonuses. The Japanese company also took the unusual step of offering buyouts to many of its 32,400 workers in the US and Canada.

Auto Task Force wants to kill the Volt

Now that the president and the Auto Task Force are running GM it is clear that they intend to kill the Chevy Volt. With less than 3 months on the job these bureaucratically driven pencil pushers think they know more about the car business then the professionals.

According to the Task Force, GM has spent far too much time and money developing the technology that will one day become the Chevy Volt. The Task Force is keen to point out that it is a losing venture at least to begin with, saying the following in the viability report that was submitted to the President:

“GM is at least one generation behind Toyota on advanced, “green” powertrain development. In an attempt to leapfrog Toyota, GM has devoted significant resources to the Chevy Volt. While the Volt holds promise, it is currently projected to be much more expensive than its gasoline-fueled peers and will likely need substantial reductions in manufacturing cost in order to become commercially viable.”

Of course when the government wants to kill you they will do in in broad daylight as they are doing to the Volt. Outgoing GM vice chairman, Bob Lutz has a different take on the presidents decree:

“Volt will survive and prosper. We know the numbers better than the Government…we furnished them! First-generation technology is expensive, but you can’t have a second generation without a first generation. Common sense and intelligence will prevail, here!”

Read Bob’s comments here >>

Solar carports in U.K.

Here is an idea that has actually been done in the U.S., but is making waves in Britain, the home of rainy days and cloudy skys…it is a carport topped with solar panels that can be used to charge the EV of the future.

Specialty glass and plastic manufacturer Romag says the PowerPark is just the thing for parking lots where electric vehicles may need to plug in and recharge.  The first PowerPark was installed at the company’s headquarters, and Romag says additional installations are planned around the UK.

“Interest has been received from supermarket chains, schools, airports, train stations, hospitals and commercial office buildings in the U.K., Middle East and Far East,” states Kevin Webster, the company’s technical director. “The U.S. would be an excellent market for the canopy.”

About 70 percent of the electricity generated in the United States comes from fossil fuels, according to the Energy Information Agency.  Still, the Electric Power Research Institute says shows plug-ins and EV’s could cut greenhouse emissions by more than 450 million metric tons annually by 2050. That’s the equivalent of eliminating 82.5 million gasoline vehicles — about a third of the number currently on the road in America. That figure will only climb as renewable sources become more common, EPRI says.

The canopies are linked to the electric grid so energy “can be generated for use in the associated buildings when cars are not being charged,” Webster said. “No electricity is wasted.”

PowerPark is a great way to promote broader acceptance of plug-in hybrids and electric vehicles. It provides emissions-free charging without taxing the existing electrical grid.

GM and Ford follow Hyundai

Back in January, Hyundai launched their “Buyer Protection Plan” to the American consumer. The gist of the program was that if you bought a car from Hyundai and lost your job like so many are doing these days, Hyundai would not ask for a payment on your loan for up to 3 months.

General Motors and Ford must feel that this marketing strategy has some merit because they have started their own versions of a similar program.

General Motors is calling their plan ” Total Confidence” and it offers up to nine payments of up to $500 each if a car buyer loses his or her job in the first 24 months after the purchase of a GM vehicle. The plan covers loans and leases.

GM also is offering a plan to help consumers whose cars lose value after the purchase! This provides assistance if the outstanding loan balance is more than the car’s value. Both plans covers cars purchased from April 1 through April 30.

Meanwhile the ad geeks in Dearborn announced Ford’s version dubbed “The Advantage Plan”, which would cover payments of up to $700 each for up to 12 months. Ford also upping it’s offer with zero-percent financing. Their program starts today and run through June 1.

Considering that GM will only be GM for another month I’m not sure if anyone in America is willing to put down the cash for a car. Maybe some will see buying the last car off the General Motors line as an investment. Imagine how valuable the last Corvette ever built will be in 30 years.

Henderson’s assurance isn’t very assuring

In his first press conference as the new CEO of GM, Fritz Henderson delivered a blow to General Motor’s future for most reading between the lines.

Henderson spoke with confidence that the automaker will succeed, but he did say that GM would be willing to go into Chapter 11 bankruptcy protection earlier than June 1 should the restructuring not proceed as rapidly as necessary. Henderson is in the hot seat because Obama and his team of hatchet men felt that the car company’s proposal had little chance of success.

Speaking of the need to “reinvent GM,” Henderson said that GM would prefer to restructure outside of a court situation, but will do whatever is necessary to survive. He did point out that a government-sponsored bankruptcy seemed likely and he should know since he has been at the forefront of the current restructuring plans rejected by the Automotive Task Force.

Speaking at a televised press conference, Henderson said “If we’re not able to accomplish what we need to do in order to have a viable business, we’ll move faster. More time isn’t going to help the process.”

“We will get the job done. We will either do it out of court or we will do it in court,” he said. “But we will get the job done in terms of recreating and reinventing General Motors as a competitive enterprise – one that wins in the market place.”

Henderson implied that further personnel cuts would be coming as GM trims its operations to better compete.

So there you have it…no news on Hummer nor Saturn, but Bob Lutz pretty much sealed their fates over the past couple of months. What doesn’t make sense is that the government was not satisfied that GM could bring the company back to profitability, yet the president went on record in guaranteeing warranty’s by both GM and Chrysler. A move like that is meant to help stabilize public confidence, yet the government’s confidence is not apparent.

Reading between the lines it seems that the new administration fully expects both car giants to fail and is setting up the machine to sell off what is left. Kinda reminds one of Gordon Gecko in the film “Wall Street.”

Here is Henderson speaking in Detroit about GM’s restructuring plans.

That video was not the press conference, but one made by GM earlier in the day. If one continues to “read between the lines” it does seem that on one hand Henderson is putting on a bold corporate face, but dealing with bond holders, the board of directors and now the government is another story and that story is about money. Here is a new report from Bloomberg on GM, their bond holders and bankruptcy options.

Fisker moving forward fast

Fisker is in a race to bring it’s Karma to market by the end of the year and to do that they will need dealerships. To that end they have been seeking said dealers in a pretty agressive fashion.

The company announced today that it’s signed up its first group of 32 dealerships. These retailers can be found in 17 states – Alabama, California, Colorado, Florida, Illinois, Maryland, Michigan, Minnesota, New Jersey, New York, Ohio, Oregon, Pennsylvania, Texas, Washington, Virginia, and Wisconsin – and one Canadian Province, British Columbia. Fisker hopes to have at least 40 dealers in the U.S. signed up by June. Deliveries of their $87,000 + Karma should begin at the end of this year, with a target goal to sell 15,000 units a year once they get running at full production.

Like the luxury PHEVs cars, the Fisker showrooms are going to be eco-aware, with natural and sustainable materials used throughout the store and a solar-powered car port will be available to visitors.

In a lot of ways Fisker is moving ahead of their natural startup competitor Tesla. Currently it is said that foreign investors and a possible major car company are looking at Tesla. At this point Elon Musk has been the main investor in his company, but they will need more money to complete the race. What Tesla needs is a factory to build their S and Roadster’s in and a larger dealer network to sell both models.

Smith to build Newton in Kansas

Some months back we dropped a story about Smith Electric building an electric delivery truck for the UK and that Ford may bring said truck to our shores in the near term. Plans are being finalized to do just that and Smith will be building the Newton delivery van in Kansas.

Smith Electric Vehicles US Corporation announced today that the site of its new factory will be in Kansas City, MO. The plant, which will produce a variety of battery-powered commercial vehicles, will be located at part of the Kansas City International (KCI) Airport overhaul base that is being redeveloped.

In 2010, the plant will also start producing the Ford Transit Connect BEV for Ford. The electric Transit Connect will be the first of several plug-in vehicles that Ford will launch starting next year.

Among the first companies that will buying the U.S. built Smith EVs is Canteen Vending Services.

CARB applies pressure

In an election speech our new president was chided for bringing up the idea that proper tire pressure could save millions in gas and help supress greenhouse gases as well. Now it seems that CARB (California Air Resources Board) is taking that suggestion seriously.

Last week CARB adopted a regulation to force the 40,000 businesses in California’s automotive maintenance industry to check the tire pressure of every vehicle they service.  Starting in July of 2010, when you bring your car in for service in California, the shop will have to make sure that your tires filled to the manufacturer’s recommended air pressure level. CARB estimates that this will save the average driver about $12 a year.

The service providers subject to the regulation include smog check stations, engine repair facilities and oil service providers. Those not included are car wash, body and paint, and glass repair businesses.

Estimated annual impact of the regulation is:

• Elimination of 700,000 metric tons of greenhouse gas emissions
• Reduction of the state’s fuel consumption by 75 million gallons
• Extension of the average tire’s useful life by 4,700 miles

The Tire Industry Association (TIA) calls CARB’s decision “overreaching and burdensome.” CARB did not speak to anyone at the TIA before announcing the decision. TIA’s director of government and business relations, Paul Fiore, was not pleased and offered a veiled threat in response saying “Trial lawyers are always looking for pieces of paper to use… it’s a gift to the trial lawyers.”

A lot of people in California are displeased with the past and current leadership at CARB. On one hand they forced the big auto makers into considering air quality standards and developing the electric car, but then folded when political pressures were placed on them. Now they are acting a bit heavy handed about tire pressure issues like this was something vital in saving the planet.

Buffet brings BYD to America

Last year billionaire investor Warren Buffet bought a 10% share of Chinese Big 3 automaker BYD for 1.8 billion Hong Kong dollars. One of the reasons he did this was certainly for their F3DM vehicle, which is the first plug in hybrid developed in China. BYD was at the Detroit Auto Show this year and Buffet wants them to show two cars at his shareholders meeting in Omaha, Nebraska on May 3rd.

BYD president Wang Chuanfu will attend the meeting, demonstrating their F3DM or E6 model to the shareholders.

The E6 can travel up to over 402 km purely on battery, more than double the range its Western rivals. BYD’s innovative battery, used in its dual mode cars, can fully charge in nine hours from a regular electrical outlet, or much faster at charging stations.

The F3DM, China’s first mass-produced plug-in hybrid, went on sale in China last December. It was at least a year ahead of General Motors’ anticipated Volt.

Currently the F3DM is sold only to government agencies and corporations, but the company will start sales promotions the the rest of the country in June.

BYD’s trip to the United States in May could pave way for the green cars into the North American market. To date Buffet has not publically mentioned what his plan was for buying into the Chinese automaker. Setting up a distribution network for the cars would certainly be a lengthy process, but we’ll keep a weather eye on BYD, they could out Toyota Toyota some day.

The Honda Insight has arrived

The last month has been a blur for Honda no doubt, they released the new Insight, which is designed to compete with the popular Toyota Prius in Japan and the car has become an instant hit selling over 20,000 copies.

As of today there are exactly 478 2010 Honda Insights for sale from all U.S. dealerships, which is a very small amount indeed. Prices range from the base model with a price tag at around $19,800, all the way up to $25,678 for a well-equipped model. Honda is expecting high demand for the new vehicle and production in Japan is running at full steam so we’ll expect inventory levels to rise here in the States quickly.

Obviously the Prius is the heavy hitter of the two. It has been through three body style changes now and sold well over a million copies worldwide. Honda was first into the hybrid market with the original Insight, but that car came at a time when no one was serious about the technology and quickly passed into what seem then to be automotive history. Now that Honda has released the new Insight to great acclaim, we thought we would run a couple of videos from Motor Trend that compares the two cars side by side.

Here is part one of a video from Motor Trend that compares the two cars.

This is the second to two parts from Motor Trend.

Screamin’ Cool

This is the car show season and even though there isn’t a solvent company making cars today there are some hot concept cars out there. We really love the idea of a future car, but personally I feel like this is now and let’s see what is real today.

Tesla has made more waves in the future car field for good reason, they just flat out deliver. We’ve known about their plans for a Tesla S, and the company has played the tease card well over the past few months. Now the car is here and it’s WAY COOL looking to say the very least.

The interior features two touch-screen control interfaces. The Model S will be fitted with wireless Internet capability, and Tesla claims it will be able to remotely diagnose and even fix any problems that might arise with the car.

The four-door will seat seven and start at a base price of $57,400. As of now the release date for the Model S should be late in 2011.

Elon Musk, who is the CEO of Tesla, and co-founder of PayPal, unveiled the final version of the S and we have a video of the car for you. This is the first public test drive with Musk and Steve Jurvetson. Steve, who also has a Tesla Roadster, ponied up for this S, and gets the first spin…he also did the video. Enjoy it because you know Steve did.

Here is a link to Tesla’s new site for the Model S. Click here >>

Shocked, but not surprised

It appears that in Michigan there is more going on than the Spartan’s making the Final Four.

In effect our president has taken over General Motors as of today. He has called for Rick Wagoner’s job and overridden GM’s board or directors. Wagoner is out, Obama is running a car company from the White House and I’m not surprised, nor are most that report on automotive news including Dave Cole.

“From the government’s perspective, they had to show a visible form of sacrifice,” said David Cole, chairman of the Center for Automotive Research in Ann Arbor and the son of a former GM president. “At one level I’m surprised, and at another level, not at all.”

Actually this is a long and protracted story with tons of opinion to be spread out over the next few weeks. I’m going to pass this along to the folks at the Detroit News to explain in one story and one editorial.

Here is what the president had to say in a news conference.

GM Message from Rick Wagoner

On Friday I was in Washington for a meeting with Administration officials.  In the course of that meeting, they requested that I “step aside” as CEO of GM, and so I have.

Fritz Henderson is an excellent choice to be the next CEO of GM.  Having worked closely with Fritz for many years, I know that he is the ideal person to lead the company through the completion of our restructuring efforts.  His knowledge of the global industry and the company are exceptional, and he has the intellect, energy, and support among GM’ers worldwide to succeed.  I wish him well, and I stand ready to support him, and interim Non-Executive Chairman Kent Kresa, in every way possible.

I also want to extend my sincerest thanks to everyone who supported GM and me during my time as CEO.  I deeply appreciate the excellent counsel and commitment of the GM Board and the strong support of our many partners including our terrific dealers, suppliers, and community leaders. I am grateful as well to the union leaders with whom I have had the chance to work closely to implement numerous tough but necessary restructuring agreements.

Most important of all I want to express my deepest appreciation to the extraordinary team of GM employees around the world.  You have been a tremendous source of inspiration and pride to me, and I will be forever grateful for the courage and commitment you have shown as we have confronted the unprecedented challenges of the past few years.  GM is a great company with a storied history.  Ignore the doubters because I know it is also a company with a great future.

Toyota talks tough on hybrids

Toyota has had the lead in hybrid cars from the beginning with the very popular Prius. The car has styling and great gas mileage not to mention over a million vehicles on the road. That dominance is being challenged by Honda’s new Insight, not from the performance side, nor the styling elements, but from price. In less than a month the Insight has sold over 20,000 cars in Japan and as we reported last week, Toyota is ready to fight back.

Small Toyota hybrids are coming in the form of vehicles like their popular Yaris. Akihiko Otsuka, chief engineer of the redesigned, third-generation Toyota Prius said recently, “”We are developing a low-priced hybrid vehicles like Honda’s Insight. We are going to compete by expanding our hybrid-vehicle lineup to smaller hybrids, in the class of the Vitz and Yaris.”

Otsuka also noted that the current Prius will share a large number of parts with the Toyota Corolla platform in the US. The Corolla has been designed to carry a hybrid system.

In the auto industry competition leads to innovation and in this case expansion, expansion to current platforms by adding systems like hybrid drives. So far all that is coming from Toyota is talk—their intention is to release the hybrid Yaris in 2011.