Automakers lay out mpg concerns for Trump: Talk to California, please

Ten months after the U.S. EPA and DOT proposed easing federal fleet fuel economy standards for 2021-2026, there has been no formal submission of the plan. And more than a year after the EPA suggested that it might challenge California’s waiver to set stricter standards, it hasn’t confirmed one way or another whether it will do that.

As if a rapidly evolving tariff situation and trade war weren’t enough, the uncertainty over mileage standards has also led to a great deal of unease in the auto industry. Thursday, 17 automakers sent a letter to President Trump asking for some reassurance on the mileage standards—and spelling out exactly what they presently want: one national standard for vehicle fuel economy, in the form of a final rule that California can support.

Audi e-tron, on the Golden Gate Bridge

The letter thanks the President for supporting “a vibrant and competitive auto industry in the United States,” and notes the different market landscape versus in 2011, when the standards were last revamped. Examples include lower-than-expected fuel prices, a higher rate of SUV and pickup sales, and a lower-than-anticipated adoption rate of vehicles with alternative powertrains.

The automakers stressed that the final rule, which would cover model years 2021 to 2026, would need to include “flexibilities that promote advanced technology for the sake of long-term environmental gains and U.S. global competitiveness.”

“For these reasons, we support a unified standard that both achieves year-over-year improvements in fuel economy and facilitates the adoption of vehicles with alternative powertrains,” said the automakers. “We encourage both the federal government and California to resume discussions and to remain open to regulatory adjustments that provide the flexibility needed to meet future environmental goals and respond to consumer needs.”

Tesla didn't signed to the letter. Direct mentions of electric vehicles, electrification, hybrids, carbon reduction, or climate change were also notably missing from the letter, which was sent in CC to Secretary of Transportation Elaine Chao, U.S. EPA Administrator Andrew Wheeler, and National Economic Council Director Lawrence Kudlow.

Tesla factory, Fremont, California

Talks between the federal and California agencies, according to a joint statement from the EPA and Transportation Department, broke off in February as the California Air Resource Board “failed to put forward a productive alternative. CARB claims that talks never actually got to the depth of either discussing or negotiating policy.

The regulation proposal itself is overdue. What the EPA previously issued was just a notice of proposed rulemaking. The plan hasn’t yet been rolled out in any formal way, and Reuters noted that before it can even be published it needs to be submitted to the White House Office of Management and Budget for review.

The administration hasn’t yet rolled out the formal version of its plan, which was last reported to make a very small increase in fleet-wide fuel efficiency. Wheeler told Reuters in April that “our final regulation is not going to be the same as our proposal.”

Most automakers, who may have been eager to lobby for relaxed standards, have come to realize that a long fight with California isn’t in the interest of global competitiveness. And if the EPA decides to deny California of its waiver, the case could lead to an extended (read: years-long) state of unease as the case makes its way through the courts.

As the letter explained, a divided U.S. market “could prove as untenable as the current program.”

California Air Resources Board chair Mary Nichols (via Twitter)

CARB chairwoman Mary Nichols last month said that if it is denied its GHG waiver the state might get creative with fees, taxes, and perhaps even bans on certain types of vehicles and products.
Green Car Reports has reached out to CARB, which wasn’t officially looped in on the letter, and will update this piece when they provide a statement or reaction.

“Striking the proper balance will not be easy, but we know with your leadership it can happen,” the automakers swoon to Trump, in a conclusion to the letter. “We are eager to work with you to advance this outcome and strengthen our economy and technological leadership.”

Subaru and Toyota plan joint electric SUVs on flexible platform

What comes next after a partnership for sports cars? Potentially one for an electric SUV.

That's the latest plan from Toyota and Subaru, according to a joint statement from the automakers on Thursday.

The new joint project will develop a new electric mid-size SUV using electric-car technology from Toyota and all-wheel drive technology from Subaru, the companies said.

Toyota owns 16 percent of Subaru, and the two companies built a partnership to develop the joint Subaru BRZ and Toyota 86 (formerly Scion FR-S) sports cars, though that project was reportedly fraught with disagreements over the powertrain. Since then, Toyota also shared the plug-in hybrid technology from its Prius Prime (and portions from the RAV4 Hybrid) with Subaru as a starting point for the 2019 Subaru Crosstrek Hybrid.

Both companies' product lineups, however, conspicuously lack any all-electric models.

Toyota-Subaru electric vehicle platform

In 2017, Toyota also formed a joint venture with Mazda, along with Japanese parts supplier Denso, to jointly develop components and a platform for electric cars. That partnership is expected to result in a new electric model from Mazda for 2020, likely with a short range and an optional available gasoline range extender, which could be a tiny rotary engine.

The new project will result in a joint platform (similar to the BRZ/86 project), that will underpin new mid-size electric SUV models from both automakers. In the joint statement, Subaru and Toyota said the platform will also be flexible enough to build future models including mid-size and large SUVs and sedans and “derivative models.”

In a related statement, Subaru said it will now shift its independent EV development resources to this joint project.

“The automotive industry is in the midst of a once-in-a-century period of profound transformation,” the companies said. “The commercialization of BEVs requires the use of large-capacity batteries, and, along with the popularization of BEVs, demands of a new dimension will be placed on battery supply.”

The agreement could represent a minor breakthrough in Toyota's approach to electric vehicles. Until now, the company has focused on its hybrid technology to the exclusion of developing EVs, and has publicly questioned consumer demand for electric cars and their viability.

With regulations around the world beginning to require emissions reductions that gas engines alone can't meet, however, the company needs a strategy to sell EVs and procure large battery supplies.

Perhaps Subaru's earthy customers can provide a bigger initial market for that technology.

Karma to expand dealerships to 13 US cities, 19 countries by year-end

Karma, the company, is starting its effort in earnest to revive sales of its Revero—the car that started life as the ill-fated Fisker Karma.

According to the federal government, Karma sold 231 of the cars in 2018, well down from the 2,667 that Fisker sold in the car's first year on the market.

That's partly the result of a paucity of dealers. The company says it has 18 stores—in addition to its new Moreno Valley, California, design center—worldwide selling the cars. Those dealerships are in the U.S., Canada, and Chile.

Now as the company gets ready to sell the updated 2020 Revero GT, with a longer 65-mile electric range and a new, more powerful gas engine from BMW, Karma announced that it will open new luxury dealerships in 13 U.S. cities and 19 new countries.

Last month the company unveiled its new retail environment with the new design center at its Moreno Valley, California headquarters. There, it says, customers will be treated to a new “VVIP treatment” where they can tour the factory, customize the features they want on their cars, and meet the workers who hand-built them.

It's an effort to become something over a latter-day Rolls Royce (without the room), or a would-be cutting-edge Aston Martin, with Southern California style and craftsmanship, rather than that of the Old World.

Artist's impression of Karma Customer Experience Center

Among the new world markets, Karma says, will be Europe, North Africa, the Middle East, and China. It did not specify the 13 new U.S. cities where it plans to operate.

At the same time, Karma gave a first look at the interior of its new all-electric Pininfarina-designed SC1 roadster, which was revealed at the Shanghai auto show in April, along with a video showing the designers' artistic inspiration and the process of building the prototype.

The SC1 is expected to give rise to Karma's first electric car, but no date has been set. Karma is also seeking production partners in China for more mass-market models. In between, the company also has plans to build a plug-in hybrid SUV based on the Revero.

Chinese automaker GAC teams up with Nio for EV, postpones US launch

2019 Nio ES6
Nio last week announced a joint venture with state automaker GAC to sell electric cars in China.

It's especially of interest in the U.S. because both companies have their sights set on selling electric vehicles here.

The equal-split venture, to be called GAC Nio New Energy Vehicle company, will build and sell EVs under a new Hycan brand in China. The first, teased by a concept SUV at an investor event in Hangzhou, may offer a range of 600 km (373 miles), the companies said, although they didn't specify the driving cycle or reveal any more details about the vehicle.

CHECK OUT: Nio unveils ET Preview electric sedan in Shanghai

In its quarterly earnings call last week, Nio also announced that the Chinese government would provide what amounts to a bailout, investing $1.45 billion into a joint venture called Nio China, funded through the government's E-Town Capital company.

Nio has become known as the Tesla of China, selling two electric SUVs there, as well as home energy products and operating charging stations and a battery-swap station for its cars. It has announced plans to bring a car to the U.S. in 2020, and began trading on the New York Stock Exchange last year. It's also working on a self-driving system similar to Tesla.

READ MORE: GAC Motor shows electric three-row minivan concept, delays US brand launch to 2020

Last month, Nio showed a concept version of its first electric sedan, the ET Preview, at the Shanghai auto show.

GAC has been working to move into the U.S. market for years, and announced that it plans to be the first Chinese automaker to sell cars in the U.S. At this year's Detroit auto show in January, the company brought an electric minivan and announced plans to develop an all-electric crossover for the U.S. in 2020 (already delayed a year from earlier plans.)

In a statement Wednesday, GAC said it would postpone those plans again, citing “the escalation of China-U.S. trade frictions” and distribution “uncertainties.”

We've reached out to Nio to see how if at all this new venture might impact its U.S. plans.

$50 billion VW battery plan could need revamp after Samsung cuts back

VW ID family
Volkswagen, with its plan to build 22 million new electric cars across 70 models by 2030, is ground-zero for concerns over battery supplies.

As more automakers get serious about building lots of electric cars, there are indications that supplies of batteries to power all those cars aren't ramping up as quickly, leading to shortages of batteries, increased competition, restricted sales of some EV models, and potentially rising prices (or at least flattening their trend toward affordability).

READ THIS: VW boosts electric car plans with more models, 22 million EVs in 10 years

Now Bloomberg reports that VW's deals for $56 billion worth of batteries for all those upcoming electric models are in jeopardy as Samsung cut its supply agreement with the automaker after disputes over timing.

Samsung was slated to supply batteries for up to 200,000 or more electric VWs based on assumptions by Bloomberg of 100-kilowatt-hour battery packs, a little bigger than those in the Audi e-tron that just went on sale, and the size of the largest batteries in Teslas. Since many of VW's will use smaller battery packs of 48 kwh, the change could affect many more cars.

2019 Audi e-tron battery pack

VW had named Samsung a supplier for electric models it plans to build in Europe, along with LG Chem (which supplies batteries for the Audi E-tron quattro), and SK Innovation—and for other markets, CATL. Reports have persisted since last fall of battery shortages and price disputes between VW and LG Chem that have affected production of the E-tron at Audi's factory in Belgium.

DON'T MISS: Could battery lawsuits, material shortages delay some EVs?

Tesla CEO Elon Musk has also named limitations of battery supplies from its partner Panasonic as a constraint on production of the Tesla Model 3.

A report from Benchmark Minerals in April showed that lithium-battery supplies could increase by 50 percent a year between now and 2023—that is, if the supply of battery materials can keep up.

CHECK OUT: Report: Battery shortages lead to Audi E-tron production delays

Last year the Trump administration named lithium, cobalt, and other materials for electric-car batteries among “critical minerals” that the U.S. needs to develop domestically and for which it hopes to speed up mining permits.

Following the E-tron from VW's upscale Audi brand, the first electric car in VWs' new lineup of EVs is expected to be the ID 3, which is expected to go on sale late this year.

Byton readies for China production of $45K US-bound electric SUV

Follow Bengt

Not too long ago, Byton was another longshot electric vehicle maker with some good ideas. But it’s already outlasted its early hype bubble and is looking increasingly likely to deliver what could be a very enticing combination to three continents—a large, spacious, long-range all-electric SUV with a new kind of interface, at a starting price of $45,000.

What made Byton generate buzz from the start was its announcement at CES 2018 that it was developing its own vehicle operating system, app ecosystem, and interface, banking a lot on the user experience—with “deep integration” details like health monitoring.

While its vivid 48-inch wide-screen system across the entire upper dash drew crowds, a lot of other details then were missing—but those details have gradually been released with enough detail to convince us that Byton has some compelling products in the pipeline.

In an edition of a company supported video blog called the “Byton Inside Reporter” earlier this month, CEO Daniel Kirchert walked through a prototype workshop, where he says last year the company already built 100 early-stage prototypes, built to make sure it can fulfill all the safety and durability requirements.

Byton concept, 2018 Consumer Electronics Show

There he pointed out some of the core attributes of the company’s “skateboard” platform, which will be shared by its first three vehicles and was developed from scratch, including the capability for over-the-air updates that can roll out expanded features, including safety systems and driver aids.

DON’T MISS: Byton brings its big-screen electric SUV back to CES, a step closer to reality

The platform is built around two battery packs, which are mostly carried under the passenger floor, with cells and modules supplied by CATL and capacities of 95 kwh or 72 kwh. In the M-Byte, they’ll equate to a claimed range of 317 miles or 249 miles, respectively, based on very optimistic and outdated European NEDC tests.

One of the noteworthy design points for the platform: The floor will be perfectly flat, and Kirchert points out that the entire air conditioning system has been moved ahead of the cabin—so it won’t take up passenger space.

Kirchert also pointed to the cost-conscious combination of high strength steel and aluminum parts, balanced with the importance of keeping weight down.

Byton M-Byte production interior

Also of note is Byton’s own internal design that allows the steering-wheel touch screen to stay isolated and upright while the driver steers. In seeing the platform laid out like this, we can see how low the cowl and beltlines are relative to the floor—a hint that the production vehicle is going to offer some good outward visibility and sight-lines, even though side pillars from early versions have been thick.

CHECK OUT: Byton reveals self-driving living-room on wheels, the K-Byte, in LA

Kirchert says that the prototypes have already completed the rigors of durability testing, including winter testing in Inner Mongolia, and they’re now doing heat testing. Further, he emphasized quality and safety targets. “I think we use the best of the premium car industry know-how and mindset to make a good-quality car and a safe car—and this has to be done,” he said.

In what sounded like a jab at Tesla, which reportedly went from prototypes to final production in shockingly short order for Model 3, Kirchert added: “These prototypes, the real prototypes, the pre-production trial lot, and the final production; every step is very important.”

Byton M-Byte electric SUV prototype

The next step will be to finish its Nanjing, China, assembly plant, and in two months (July) it will have the first prototypes (and then validation prototypes) coming off the real series-production tools and line.

Byton’s stamping shop can complete a body panel every three seconds and will be one of the fastest such facilities in China, according to the trade publication Robotics & Automation News. And the welding shop, with 335 welding robots from partner Kuka, is 99-percent automated.

The M-Byte will be revealed in production form in July, and will then release the first pricing information and open its pre-order systems. It aims to ramp up series production in the third quarter of this year, and deliveries in China by the end of the year. The K-Byte sedan will follow, and a third model, yet to be teased, is in the development pipeline.

READ MORE: How Byton is developing three electric vehicles at once

When we sat down with chief engineer David Twohig in January—since promoted to chief technical officer—he walked us through some other key details: that the M-Byte will “be a ride car” prioritizing comfort, and that it will be offered in single-motor (rear-wheel drive) or dual-motor (all-wheel drive) versions. Twohig also confirmed that it will use CCS (Combo) DC fast charging, which we anticipate will work at 150 kw or even a little more.

Byton M-Byte and K-Byte concepts

Byton has held many of its financial details close, but in an indication of being smart with limited funds, besides developing one platform for three vehicles from the start it’s turning to Bosch for the vehicles’ power systems and motors. Kirchert reiterated that it plans on an entry price for the M-Byte of roughly $45,000—although options could add a significant amount to that.

As a multi-national effort, including R&D (software and self-driving) offices in California and a design center in Munich, Byton hasn’t adjusted its U.S. plans, or its timeline in light of U.S. tariff tensions. “From the beginning we had this vision to make it a global brand and be firmly committed to this,” summed Kirchert, in a previous video, underscoring that the brand’s on-sale timeline remains in place as late this year for China, mid-2020 for North America, and late 2020 for Europe.

Byton certainly isn’t the first startup EV maker with Chinese connections. But if it can pull off those delivery dates, this brand might actually be the first one to reach the finish line—in U.S. driveways.

GM plans its own nationwide charging network with Bechtel

2019 Chevrolet Bolt EV at public charging station
General Motors, the nation's biggest automaker, is teaming up with construction giant Bechtel to build thousands of chargers around the U.S. with the aim of promoting adoption of electric cars.

The companies will form a joint venture to build the chargers in which Bechtel will provide its expertise in construction and permitting and GM will provide data from its cars and drivers about the best sites to install those chargers.

READ THIS: Barra blogs again: GM plans to double EV, self-driving investments

Executives from the two companies said the chargers won't just be located along interstates to enable long-distance travel but will be sited in underserved and urban areas. The chargers will comply with SAE and IEEE standards, so will be available for EVs from any automaker to use.

Mike Ableson, GM's vice president to EV infrastructure and charging, told CNN, “The way we think about it, we want to put chargers where they're going to have the greatest influence on EV adoption wherever that may be.”

DON'T MISS: Long-range Cadillac SUV to lead GM's next electric-car push, in 3 years

GM has vast data about where drivers of its Chevrolet Volt and Bolt have charged over the years though the company's OnStar system, and in the case of the Volt where the cars have run out of battery power.

Urban areas, where lots of residents live in apartments and condominiums, generally have seen fewer electric car sales, because it is more difficult for those drivers to charge up at home and there are fewer public fast chargers.

CHECK OUT: Chevrolet Bolt EV to get electric sibling, with Michigan plant investment

GM spokeswoman Megan Soule confirmed the plans to Green Car Reports, but said the company had no more specific announcement about timing, types or number of chargers, or branding “at this early stage.” It's however looking to team up with an operating network and aiming to create a “a national-scale network with thousands of fast-chargers.”

CEO Mary Barra has announced plans to convert the automaker's fleet into all electric cars at some undefined future date, and the company plans to release a new electric SUV based on the Chevy Bolt EV the next two years, followed by a new electric-car platform for Cadillac.

Bay Area residents can get $4,000 credit on used plug-ins

Used 2016 Chevy Volt sold through Peninsula Family Service program (CREDIT: Peninsula Clean Energy)
In an effort to get and keep more used cars in its service area, a community utility provider in California's San Mateo County, between San Francisco and the Silicon Valley, is offering its own incentive of $4,000 for qualifying buyers of used plug-in cars, the company announced at the “Future of Clean Transportation” event last week.

Like a few such programs around the country, it helps remedy an issue: Not everyone can afford a Tesla. Not everyone can even afford a new car.

That can make it difficult to spread clean transportation to lower-income populations. And while vehicles bought with new-car inventives eventually trickle down to households with lower budgets, used-car buyers aren't often eligible for any tax credits or rebates.

CHECK OUT: San Diego utility offers $10,000 off Nissan Leaf, BMW i3 electric cars

The program is run as part of Peninsula Family Service's Drive Forward program, which helps low-income buyers afford cars with low interest loans. The program is open to individuals who either live or work in San Mateo County and earn less than $48,560 a year, or families of up to eight who make up to $169,520.

It focuses on plug-in hybrids, rather than pure-electric vehicles, because many of those families can afford only one vehicle, which has to meet all their needs, including out-of-town trips, and because many of those buyers rent their homes and may not be able to move an EV charger with them if they have to relocate.

READ MORE: California utilities commission passes record incentives for chargers

Buyers who want a pure EV and are convinced it can meet their ongoing needs can choose one, however.

“Used plug-in hybrid electric vehicles can provide affordable and reliable transportation for all members of our community who need a car to access better jobs or opportunities,” said Jan Pepper, Peninsula Clean Energy CEO. “Electric cars deliver additional savings to drivers by reducing maintenance and fuel costs compared to a gas-powered car.”

The used car has to be bought from a licensed dealership, many of whom in the area have systems set up to work with Peninsula Family Services' low-interest loan program. The $4,000 incentive goes to the dealership as a down payment on the car.

CHECK OUT: Canadian non-profit offers purchase incentive for used EVs

The company is offering just 100 of the incentives, but says funding may be renewed beyond that.

Several utilities offer incentives for new EV or plug-in car purchases because it helps them sell more electricity, especially at off peak times when it doesn't cost them as much to provide it. On a state basis, one such example is Oregon's Charge Ahead program, which gives qualified low-income households a $2,500 cash rebate towards the purchase or lease of a new or used EV (but not a plug-in hybrid). The program also mirrors one in Ontario, Canada, which offers provincial residents a $1,099 (Canadian) incentive on used EV purchases.