Mississippi Governor Phil Bryant and Continental Executive Board Member Christian Koetz join ceremony Investment will create 2,500 jobs Project is part of Continental’s Tire Division ‘Vision 2025’ growth strategy Hanover/Clinton, October 17, 2019. Continental, technology company and manufacturer of premium tires, celebrated a major milestone for its new tire plant near Clinton, Mississippi, with a… Continue reading Continental Celebrates Grand Opening of New Mississippi Tire Plant
Tag: Manufacturing
Volvo is paying plug-in hybrid drivers for all the electricity they use
As Volvo sees it, plug-in hybrids are the path toward achieving one of its high-aiming carbon-reduction goals—making fully electric cars half of its sales by 2025. To do so, the automaker plans to nudge its portion of PHEVs in the U.S. over the next 16 months, to 20 percent, up from about 4 percent today.
But it also knows that plug-in hybrids only serve their purpose (including as segue ways to all-electric) when drivers of PHEVs actually plug in. That’s the onus behind an unusual new program announced by Volvo Wednesday.
The gist of it: Volvo will cut owners a check at the end of one year based on how much they’ve been plugging in.
Using the vehicles’ On Call capabilities—no additional subscription required—Volvo will see how many kilowatt-hours of electricity the vehicle has used. The company will simply take that number and multiply it by the national-average price per kilowatt-hour, to arrive at the amount paid back to the owner.
2018 Volvo XC60 T8
Volvo is aware that buyers with cheap electricity are going to make money from the program, while those with particularly expensive residential electricity aren’t going to recoup all of their charging costs. According to the U.S. Energy Information Administration, the national-average price of residential electricity is 13.27 cents per kilowatt-hour. If 8.0 kwh is now usable (the usable capacity in Volvo’s latest XC90 T8 plug-in hybrid), and owners are able to plug in twice a day, that’s potentially about $773 for the year.
The company currently isn’t actually able yet to read cumulative vehicle power used via On Call, but it will be sometime next spring. Starting at that time, and including all the vehicles going back to October 1, new plug-in hybrid models will be included in the program on a rolling basis.
So far the figure Volvo does have is one based on drive time. It’s found that globally customers are using plug-in electricity 41.4 percent of the time.
2018 Volvo XC60 T8 R-Design with Polestar optimization
In studying some of the first buyers of Ford’s Energi plug-in hybrid products, in 2013, Ford found that drivers were covering more than 60 percent of their overall mileage on plug-in electricity. Those were early adopters and particularly eager to plug-in whenever possible, but other studies have suggested that buyers of luxury-brand PHEVs aren’t plugging in as often.
With Volvo incentivizing plugging in, instead of the vehicle itself, it might be able to boost the demand for the vehicles in a way that can help dealerships sell the idea, without going down a slippery slope with high incentives, bruised residuals, and an artificial market.
As Volvo looks toward electric—starting with the 2021 XC40 Recharge—it’s one way it can potentially sell drivers on it, too, and reward them for making a habit of plugging in.
AAM Opens New Manufacturing Facility in Barcelona
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GM strike hits French car parts supplier Faurecia
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Phase 2 Of Tesla Gigafactory 3 Will House Battery Manufacturing Facility
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Published on October 16th, 2019 |
by Steve Hanley
Phase 2 Of Tesla Gigafactory 3 Will House Battery Manufacturing Facility
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October 16th, 2019 by Steve Hanley
According to a report by China’s Global Times, Tesla has completed construction of the parts of its Gigafactory 3 in Shanghai that will be dedicated to producing automobiles. Now it has begun work on “phase 2” of the factory, which will house a battery manufacturing facility. The report does not make clear whether this space will be used to make battery packs from cells sourced from outside suppliers or whether it is intended for cell production as well.
Last summer, Tesla announced it would use battery cells sourced from LG Chem for the battery packs used in the Model 3 sedans built in Shanghai. It also indicated it was open to using battery cells made by CATL or Panasonic in the future as well. The implication is the company does not intend to manufacture its own battery cells but will be responsible for making its own battery packs, presumably in the part of the new factory that is now under construction. Global Times visited the Gigafactory 3 (GF3) site this week and reports the area where phase two will be located has already been paved and the installation of pillars and roof trusses has already begun.
Feng Shiming, a veteran analyst for the Chinese auto industry analyst, tells the Global Times he has heard from Tesla employees at GF3 that the first batch of vehicle batteries for the Model 3 will be fully assembled as of October 30. He predicts that mass production at the Shanghai factory will not start until after the Spring Festival holidays in January next year. The factory built in the first phase will merely assemble parts shipped from the US, Feng says. On Monday, a Tesla sales person told the Global Times on Monday that a Chinese customer who places an order for a Model 3 today will take delivery of the car in 6 to 10 months.
We’ve also seen a report that Model 3 production will now start in GF3 on October 20.
A Need For Urgency
Feng suggests the push to get the Model 3 into production at the new Shanghai factory is tied in with a desire to reassure investors that the company can achieve profitability and deliver its cars in a timely fashion. “The price of the Model 3 is relatively low, so Tesla needs to start sales in China as quickly as it can and sell the car in large volumes to recoup its capital investment,” Feng says.
Some industry observers believe mainstream customers for the lower cost Model 3 may be less inclined to overlook quality concerns than the more affluent buyers of the Model S and Model X who are focused primarily on the advanced technology Tesla brings to the table. Model 3 buyers, on the other hand, are replacing conventional cars with internal combustion engines and are more interested in utility than technology, presumably.
Feng suggests Tesla may have to offer incentives to get Chinese customers to make the switch, which could depress earnings, at least to start with. Confirmed Tesla supporters, like those who read CleanTechnica, see things differently. We tend to think that once Chinese customers get to experience the goodness of the Model 3, it will be traditional manufacturers who will be juicing their sales incentives in an effort to convince shoppers not to buy every Model 3 Tesla can weld, screw, and glue together at its Shanghai factory.
Hat tip to Teslarati.
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About the Author
Steve Hanley Steve writes about the interface between technology and sustainability from his home in Rhode Island and anywhere else the Singularity may lead him. His motto is, “Life is not measured by how many breaths we take but by the number of moments that take our breath away!” You can follow him on Google + and on Twitter.
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Oct. 17, 2019
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