The Light Is Green

Renault-Nissan: big plans for electric cars

Carlos Ghosn, CEO of Renault-Nissan, has made a firm commitment: Renault-Nissan will be the world leader in the electric vehicle industry, and their efforts will be far-reaching and profitable.

And hopefully world-changing.

Renault-Nissan has teamed up with Silicon Valley-based electric vehicle startup Project Better Place. These are their plans:

• 2010: Nissan will launch a battery-powered car in the U.S.
• 2011: Renault-Nissan will introduce all-electric vehicles and a network of charging points in Israel and Denmark.
• 2012: Renault-Nissan will offer a complete range of electric vehicles in every large car-market.

Ghosn highlights these major points:

Electric cars will be less expensive

Renault-Nissan's electric cars will be less expensive than equivalent gasoline-fueled models.

Only better batteries are missing

Technically, everything is in place for electric vehicles to become mainstream, except for the batteries. He says that Nissan and NEC are investing massively in this industry, in order to improve range and recharge times.

A new way business model

Renault-Nissan's business model will be very different: car owners will subscribe to a battery-replacement and charging plan based on anticipated mileage. Recharging will be done at Project Better Place-built stations.

To summarize his commitment, Ghosn has said,

"We must have zero-emission vehicles. Nothing else will prevent the world from exploding."

Read more at the Economist.

Tags: Renault, Nissan, Renault-Nissan, Carlos Ghosn, Project Better Place, automotive, auto industry, automotive industry, alternative energy, sustainable energy, electric cars

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Toyota enters Nano Wars

India's premier carmaker, Tata Motors, rocked the automotive world when they finally released their anticipated Nano, alternatively known as the "People's Car", "One-Lakh Car" and "$2,500 Car".

Kudos to Tata for building up expectations over the past five years (they announced this project back in 2003) and then coming through on their promise.

The initial reply from other major manufacturers such as GM and Toyota was that the Nano could not be profitable (Tata says it is), and that the car could not meet safety and emissions standards (it currently does in lax India which is Tata's first intended market).

Now both GM and Toyota are scrambling to reply with product.

Basically what What Tata did was signal their intention of dominating the entry-level segment in India, where a potentially huge emerging middle class looks to buy their first automobile.

Toyota has announced plans to begin building small cars in India, for the local and export markets. They will build a second plant to be ready by 2010, at a cost of $350 million dollars and with an output of 100,000 units per year,  through their joint-venture in Bangalore.

Toyota President Katsuaki Watanabe has been quoted by the Times of India as saying, "There is a huge market for low-cost/price vehicles," but at the same time has expressed concern about Toyota's ability to maintain a high level of quality.

At the same time, GM is manufacturing a $3,500 mini-car in China.

Tags: Toyota, Toyota India, GM, GM India, Katsuaki Watanabe, Nano, People's Car, One Lakh Car, automotive, auto industry, automotive industry, India, India auto industry

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China plans: GM

General Motors is looking at increasing its stake in their current joint venture with local automakers Shanghai Automotive and Wuling Automobile, called SAIC-GM-Wuling Automobile Co. Ltd., as part of its strategy to start focusing on small cars that can compete with Tata's Nano, a.k.a. the People's Car. GM owns 34% of this venture.

The SGMW joint venture currently produces minivans and other small commercial vehicles under the Wuling brand, and as such they are China's largest minivan manufacturer (they sold 550,000 units in 2007). They also make one GM branded model, the low-cost Chevrolet Spark minivan. GM is trying to lower production costs on the Spark.

A noteworthy offering from the SGMW joint venture is the tiny Xingwang (a Wuling brand model), the smallest, cheapest offering from SGMW. The Xingwang may in fact soon carry the GM brand name.

Shanghai General Motors is also pushing a green philosophy in its marketing message. They unveiled two hybrid vehicles at the Beijing International Auto Show, the LaCrosse Eco-Hybrid (to be sold in June 2008) and the Cadillac Escalade 2-Mode Hybrid (2009).

Tags: GM, General Motors, GM Spark, Shanghai Automotive Industrial Corp, SAIC, SAIC Motor, Shanghai Automotive, Shanghai General Motors, Shanghai GM, Wuling Automobile, SAIC-GM-Wuling Automobile Co, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry, alternative energy, hybrids

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China plans: Chrysler

Despite the Chrysler Daimler separation, Chrysler will continue with the existing joint venture that both companies set up in China in 2004, the Beijing Benz Daimler Chrysler Automotive Co Ltd.

Chrysler is playing catch-up in China, as they were late to enter that market. Their main focus now is to expand production capacity in order to support expansion in China.

Said Philip Murtaugh, CEO of Chrysler's Asian operations:

"The BBDC remains exactly as it was before the separation of Chrysler and Daimler. This company is critical for Chrysler's success and these cars are very large and important segments in China's market. Chrysler and BBDC are working closely and hard together to make sure we will succeed."

The BBDC joint venture currently produces Mercedes-Benz E-class and C-class luxury sedans as well as Chrysler 300C and Chrysler Borui (Sebring) sedans under technical licensing contracts that will continue until 2013. As reported by the Shanghai Daily.

In 2007, Chrysler also began to produce Dodge Caravans and Chrysler Grand Voyagers in a joint venture with Fujian Automotive Industry Corp.

Chrysler is also said to be forming a joint venture with Chery Automobile to attack the small car segment.

Tags: Chrysler, Chrysler China, Dodge China,  Philip Murtaugh,  Beijing Benz Daimler Chrysler Automotive Co Ltd., BBDC, Fujian Automotive Industry Corp., Chery, Chery Automobile, Chery Automobile Co., automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry

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Formula 1 goes hybrid

Formula 1 chief Max Mosely recently announced that all Formula One cars will go hybrid by 2013.

According to Gas 2.0, the hybrid system that will be phased in is known as KERS (Kinetic Energy Recovery System), which doesn’t store as much energy as a traditional hybrid system, but weighs just 55 pounds, has sufficient energy storage capacity, and is twice as efficient as a standard hybrid system.

Tags: Formula One, hybrids, Max Mosely, KERS

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China plans: Audi

Audi is doing very well in China, having sold over 100,000 units in 2007 (after Germany, China is now Audi's second largest market). Audi's success in China is based on their higher-end cars, most notably the A6.

Audi's big announcement at the China Auto Show in Beijing was the new Audi Q5 SUV, which is being introduced to compete against the BMW X3.

Autoweek reports that the Q5 will be Audi's first hybrid model, and will be based on the latest lithium-ion-battery technology. The Q5 hybrid version will be available in early 2010. Gas and diesel versions will go on sale, in the U.S., in early 2009.

Tags: Audi, Audi China, Audi Q5, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry, hybrids

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China plans: Honda

At the Auto China Show being held in Beijing, all of the major automakers, both foreign and local, have been letting industry observers in on their plans for the future in the Chinese market.

Honda in China

Honda announced a stand-alone brand to be used exclusively in China: Li Nian. The brand will be an entry-level, youth-oriented initiative, a la Toyota's Scion brand in the U.S. Honda is showing their first concept in Beijing.

The Li Nian venture is actually a joint project between Honda and their current joint venture partner in China, Guangzhou Automobile Group.

The first Li Nian vehicle will be released in 2010. It will be a five-door crossover vehicle, and was designed in China.

Tags: Li Nian, Honda Li Nian, Guangzhou, Guangzhou Automobile Group, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry

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Luxury cars in China: BMW and Hyundai-Kia

A recent post talked about the paradox in China's automotive policy: the government wants manufacturers to make electric and hybrid cars, but at the same time price controls on gas are motivating the sale of SUVs and luxury cars.

Here's what some of the major carmakers are doing in China:

BMW in China: Will triple capacity by 2012, from 35,000 to 100,000 annual units, via their joint venture with Brilliance China. Car sales grew 43 percent (14,574 units) from January to March this year, after growing 42 percent in 2007.

Hyundai-Kia in China: Working to expand presence, Hyundai just opened second plant to achieve annual output of 600,000 units, Kia will open second plant in 2010. Have released two high-end vehicles, the Rohens (Genesis) luxury sedan, and the Barui (Mohave) luxury SUV.

Tags: Brilliance China, Brilliance China Automotive Holdings, Hyundai, Kia, Hyundai-Kia, Hyundai China, Kia China, Hyundai-Kia China, Rohens, Barui, BMW China, BMW, China, Chinese auto industry, Chinese automotive industry

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China's emissions paradox

Heads: The Chinese government is pressuring automakers to improve energy efficiency, by demanding that automakers produce electric and hybrid (gasoline-electric) cars.

Tails: Chinese government price controls on gas are spurring interest in large SUVs and luxury cars. This trend is also being driven by rising incomes for China's elite.

China is already the world's second largest car market, with 8.8 million units sold in 2007, 10 million expected for 2008, and double-digit growth projected for the next five years. China is also the world's second largest oil consumer.

And of course, automakers go with what the market wants. Though some manufacturers, like Daimler, GM and local BYD are showing electric and hybrid prototypes at the Beijing Auto Show, the models truly being focused on are of the gas-guzzling variety.

"... many auto executives are skeptical that Chinese consumers will be willing to pay considerably more for cars with hybrid engines... while hybrids still account for less than one percent of the far more affluent American market. So unless the government heavily subsidizes vehicles with new technologies, their sales may be limited along with their effect on oil imports and emissions of global warming gases."

And the NYT finally points out the paradox:

"... price controls on fuel have had the effect of stimulating sales of big vehicles, despite other government policies intended to discourage such sales. Liu Shijin, a vice minister for the powerful State Council Development and Research Center, acknowledged Thursday that the government had missed a chance to raise fuel taxes earlier in this decade and now faced a difficult decision on what to do in the face of inflation. "If the fuel is priced right, consumers will use energy more carefully,” Mr. Liu said at the conference."

Tags: emissions, electric cars, hybrids, BYD, BYD Auto, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry

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Nano Wars begin

Hot on the tail of Tata Motors' announcement of their much-anticipated $2,500 "People's Car", officially known as the Nano, several manufacturers are rushing to get their own ultra-low cost cars to market.

Chery Automobile, one of China's top automakers, announced the imminent launch of their Faira ("five dolls") car. The presentation will be made at the 2008 Beijing International Auto Show.

The Faira has five variants: the BB, HH, JJ, NN and YY models, with the BB being the lowest cost model. All are powered by a 1.3-liter gasoline engine.

GM, meanwhile, is looking to leverage their existing ties with Chinese carmaker Wuling Automobile with whom they currently manufacture the Chevrolet Spark, a $5,680 small car.

On the one hand, GM wants to try to lower the cost of the Spark. But at the same time, knowing that halving the Spark's price is virtually impossible, they are said to be "undertaking research into the development of an extremely low cost ultra-compact vehicle for expanding world markets", according to Motor Trend.

Tags: Chery, Chery Automobile, Chery Faira, GM, Chevrolet Spark, Wuling, Wuling Automobile, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry

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