Green Car Advisor

China

November 20, 2009

China On the March With Multitude of Electric Vehicle, Hybrid Projects

Several Plans Involve Greater Cooperation With Taiwan in EV Developmentpanda1.jpg

Here's a roundup of news out of  China as that country tries to outplay the competition in the electric vehicles game:

Next at Bat
Mainland automaker Chery Automobile is expected to announce soon its plan to establish a global electric vehicle R&D center across the straight in Taiwan.

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Electric version of Panda sedan from China's Geely Automobile reportedly is being built in Taiwan.

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The China Economic News service says sources in Taiwan told it the Chery R&D facility would be built at the Green Energy Intelligent Vehicle Innovation Park in Taiwan's Changhua Coastal Industrial Area.

You're forgiven if you didn't know Taiwan had an EV development complex. We didn't either.

Turns out that the Taiwanese Ministry of Economic Affairs is extending incentives for manufacturers of EVs and related components to establish their operations in and around the innovation center.
 
Not only that, analysts at IHS Global Insight say Taiwanese automaker Yulon Motor has already unveiled an EV of its own - the Luxgen EV Plus - and is set to work with China's Geely Auto on an electric version of the Geely Panda subcompact.

Chery has its own alliance with a Taiwanese contract car builder - Prince Motors - that assembles Chery autos in Taiwan and is likely to be involved in the new electric vehicle research center.

Heading for First

Automakers in Taiwan and China are expected to announced at a joint conference next week plans to team up to build 45,000 electric cars a year on the island by 2015, with about 30 percent slated for export.

The announcement, according to the Chinese auto parts industry news service gasgoo.com,  is expected to come during a Nov. 24-25 "Bridge-Building" conference designed ot help bolster business ties between China and Taiwan.

On Second

A group of ten Chinese automakers have formed an alliance to jointly develop electric vehicles and related components, according to a report in Automotive News China.

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November 10, 2009

China Approves Methanol as Clean-Burning Alternative to Gasoline

China's ministry for standards has approved nationwide use of methanol as a motor vehicle fuel  as the petroleum-guzzling country attempts to curtail its appetite for crude oil.

Methanol, or methyl alcohol - a popular fuel for high-powered drag racing cars in the U.S. - is most commonly produced from natural gas but can be made from coal or wood waste. One of its common names, in fact, is wood alcohol.

MethanolBottles.jpgThe Chinese standard permits it to be mixed with gasoline in blends of up to M85, or 85 percent methanol, 15 percent gasoline.

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Methanol from China in stoppered sample bottles.
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The fuel once was popular as a gasoline alternative in the U.S., but rising prices even as gasoline prices were falling killed interest in methanol in the mid 1990s and it since has been replaced in the U.S. by ethanol.

Methanol also can be produced from coal, which China burns in huge quantities to fuel its power plants.

China is actively encouraging use of alternatives to oil including solar power, hydrogen fuel cells and alternative fuels such as methanol.

It also sees the clean-burning fuel as a way of reducing the killer air pollution in many of its cities.

Geely Holdings, one of the country' largest automakers, already has developed flex-fuel methanol-gasoline systems and Chery Automobile is working on similar systems, according to analysts at IHS Global insight.  

 
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November 5, 2009

Leadng Chinese Automaker to Invest $879 Million Into Alternative Power Push

roewe750-thumb-300x188.jpgShanghai Automotive Industry Corp., one of China's largest automakers, said it plans to invest 6 billion yuan ($879 million) in developing alternative-fuel vehicles and related technologies in the next two years.

SAIC's chairman, Hu Maoyuan, said the money would be equally divided among research, product development and component and vehicle manufacturing programs from now though 2011.

The company plans to launch a line of hybrid and all-electric cars in China under the Roewe brand by 2012 and reportedly has begin testing a plug-in hybrid system of its own design.

The effort is part of a drive to fulfill the government's request that 5 percent of all passenger vehicles built in China by 2011 use alternative powertrains and that each Chinese automaker have at least one electric, hybrid or other alternative model in its lineup.

 
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November 3, 2009

Chinese Oil Company Considering National Battery Swap System for EVs

One of China's major oil companies - already a partner in the  joint venture that will supply lithium-ion batteries for California-based Coda Automotive's upcoming electric sedan - is now considering a network of battery swap stations in China, according to a report in the Wall Street Journal.

China National Offshore Oil envisions a national network of stations where motorists can swap discharged EV batteries for full charged packs.  "We can't build" electric cars, "but we can supply the energy," the oil company parent's strategy director told the newspaper.betterplaceyokohamab375.jpg

Such a program, if it were to be launched, its success would be predicated on a number of Chinese automakers building their electric cars with swappable batteries.

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A Renault EV prototype sits on battery exchange platform in Better Place demonstration, while machinery pulls new battery pack from storage.

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The company is thinking along the same lines as California's Better Place, which plans national networks of battery exchange stations in Israel and Denmark for EVs to be built and sold in those countries by the Renault-Nissan Alliance starting in 2011.

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October 30, 2009

Textron Reportedly Plans Chinese Factory for Low-Speed EV Production


EZGo.jpgTextron Corp., the global industrial giant that already makes low-speed electric utility vehicles and electric vehicle components, reportedly is eying a full-fledged EV manufacturing operation in China.

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Four-wheel drive low-speed EV from Textron's E-Z-Go subsidiary.
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IHS Global Insight, citing a Chinese business news service, reported this morning that an unidentified Textron executive told the news service that the factory would specialize in low-speed limited-range neighborhood electric vehicles that use conventional lead-acid batteries.

It would be operated in collaboration with an existing Chinese automaker, the report said, and would be capable of producing 10,000 NEVs a year.

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September 24, 2009

GM to Build Laboratory in China to 'Tap Country's Outstanding Research Talent'

GMChinaScienceCenter.jpgGeneral Motors announced today that it will create a laboratory in Shanghai to contribute to technological innovation in a number of automotive-related fields for GM both domestically and on a worldwide basis.

The announcement came less than a month after GM disclosed that its sales in China in the first eight months of this year increased 49.6 percent on an annual basis to 1,111,401 vehicles.

The China Science Lab (pictured) will be the first major laboratory established by a global automaker in China. In a statement, GM said the lab's initial focus will be on research related to advanced propulsion technology and joining technology.

But the lab will also focus on battery cells, megacity safety research, advanced vehicle development, and light materials. It will engage in additional activities in accordance with market conditions and its own research capability as it ramps up.

The lab will also carry out collaborative work with universities and government-run scientific institutions across China. It is expected to employ up to 100 staff during its early stage of operation. No specifics were provided regarding the lab's scheduled construction and opening dates or its cost.

Kevin Wale, president and managing director of the GM China Group, said that through the lab, "we will leverage the country's outstanding research talent together with GM's extensive resources to come up with new innovations for the benefit of vehicle users around the globe."

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September 10, 2009

Alcoa in Talks With Automakers to Supply Metal for Fuel-Efficient Cars in China

ChinaFlagGreenCars-400x267.jpg

If it already seems to you that China is positioning itself to exercise substantial control over the green-car market through its natural resources -- and you don't like it -- you're not likely going to like this story one bit.

That's because Bloomberg news service is reporting, and we are relaying, that Alcoa Inc., the largest U.S. producer of aluminum, is speaking with unidentified automakers to develop and supply metal for lightweight, energy-efficient vehicles in China as passenger-car sales in that country surge.

"The automobile sector is a strong consumer of aluminum and I believe it will become more so if you combine lightweight and energy efficiency" needs in the future, Chief Executive Officer Klaus Kleinfeld said today. "There are some companies we're talking to, and that's an area we're seeking to build activities," he said, without giving details.

Passenger-car sales in China soared a record 90 percent last month as tax cuts and subsidies spurred demand, bringing the nation closer to overtaking the U.S. as the world's largest automobile market. Rising vehicle sales in China, as well as building demand, will drive aluminum consumption, Kleinfeld said.

"China is ahead of the curve, and I'm positive of things that are going on," Kleinfeld said while attending the World Economic Forum in Dalian, China.

The Asian nation consumes about seven kilograms of aluminum per capita, compared with 35 kilograms in the U.S., he said, according to Bloomberg. Kleinfeld on Sept. 3 raised Alcoa's forecast for global aluminum consumption because of demand from China.

China's demand will rise 4 percent this year, compared with a previous prediction of no growth, Kleinfeld had said. That changes the company's outlook for global demand to a decline of 5.5 percent from a previous forecast of minus 7 percent.

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September 8, 2009

Chinese Automakers Team Up For Home-Market EV After Helping With U.S. Model

Saibao.jpg(Note: Article updated 9/8/09 at 8:41 am to correct misidentification of Coda Automotive in all references after the initial paragraph.)

The Chinese automaker that will build Southern California-based Coda Automotive's upcoming electric sedan, reportedly has signed a deal to with a Chinese advanced autmotive R&D consortium to jointly produce alternative-fuel vehicles, including EVs,  for their home market.

Harbin Hafei Automobile Industry Group
, whose Saibao sedan (left) will be the basis of the new Coda EV,  will combine forces with Qingyuan Electric Vehicle to jointly develop alternative-fuel vehicles, IHS Global Insight reports, citing the Xinhua news agency as its source.

Qingyuan, based in Tianjin City, is majority owned by the China Automotive Technology & Research Center. It first associated with Harbin Hafei in 2007 to develop an EV- version of the Saibao.

Coda is using a heavily reengineered version of the car for its own EV, slated to go one sale in California in mid 2010.

Harbin Hafei also supplies Miles Automotive Group, from which Coda sprouted earlier this year, with low-speed electric carts and trucks for the U.S. commercial market.

The two Chinese companies are hoping to take advantage of the Chinese government's intent to transform the nation's private transportation system by providing incentives for alternative-fuel and electric vehicles.

Analysts for IHS Global Insight note that with the government's promise of financial support, larger and better-established Chinese auto companies are also are preparing to launch EVs and hybrids and that competition might dampen Harbin Hafei's chances.

 
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September 3, 2009

China Denies Hoarding Metals, Says It Just Wants to Create Jobs in Inner Mongolia

lanthanum.jpgChina's moves to tighten control on the mining and export of a class of metal ores called rare earth are aimed at attracting high-tech manufacturing to Inner Mongolia, and not at dominating the market, The Wall Street Journal reported today, citing a senior Chinese official.

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The rare-earth element lanthanum, right, is used in the manufacture of hybrid-car batteries.
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As we reported earlier this week, a number of those rare metals are used to make the high-power, lightweight magnets for electric motors of hybrid cars, such as the Toyota Prius, Honda Insight and Ford Fusion. Others are major ingredients for batteries used in hybrid cars.

Wednesday's comments by Zhao Shuanglin, vice chairman of Inner Mongolia Autonomous Region, appear aimed at quelling concerns that China is trying to dominate the global market for rare-earth resources.

China produces more than 90 percent of the world's output of the metals. Recent steps by Beijing toward tightening export restrictions have sparked concern in other countries.

There also appear to be concerns about China's investment in rare-earth producers in other countries.

In Australia, the government has delayed yet again consideration of a $210 million investment by China Nonferrous Metal Mining Group Co. in Lynas Corp., an investment that would give the Chinese company a majority stake in the biggest new rare-earth mine currently under development.

Lynas, which unveiled the planned investment in early May, said Wednesday a 30-day review period by the Australian government's foreign investment review board had again been reset so that the board has until early October to consider the deal.

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August 26, 2009

China to Begin Hoarding Precious Metals Used in Hybrids and All-Electric Vehicles

Temple-dragon-carving-China.jpg

Beijing is drawing up plans to prohibit or restrict exports of rare earth metals that are produced only in China and play a vital role in cutting edge technology, from hybrid cars and catalytic converters, to superconductors, and precision-guided weapons, according to a reputable British newspaper.

A draft report by China's Ministry of Industry and Information Technology has called for a total ban on foreign shipments of terbium, dysprosium, yttrium, thulium, and lutetium. Other metals such as neodymium, europium, cerium and lanthanum will be restricted to a combined export quota of 35,000 tons a year, far below global needs, The Telegraph reported.

China mines over 95 percent of the world's rare earth minerals, mostly in Inner Mongolia. The move to hoard reserves is the clearest sign to date that the global struggle for diminishing resources is shifting into a new phase. Countries may find it hard to obtain key materials at any price.

Alistair Stephens, from Australia's rare metals group Arafura, told The Telegraph his contacts in China had been shown a copy of the draft -- "Rare Earths Industry Devlopment Plan 2009-2015." Any decision will be made by China's State Council.

"This isn't about the China holding the world to ransom. They are saying we need these resources to develop our own economy and achieve energy efficiency, so go find your own supplies," he said.

Stephens said China had put global competitors out of business in the early 1990s by flooding the market, leading to the closure of the biggest U.S. rare earth mine at Mountain Pass in California -- now being revived by Molycorp Minerals.

New technologies have since increased the value and strategic importance of these metals, but it will take years for fresh supply to come on stream from deposits in Australia, North America, and South Africa. The rare earth family are hard to find, and harder to extract.

Stephens told The Telegraph that Arafura's project in Western Australia produces terbium, which sells for $800,000 a ton. It is a key ingredient in low-energy lightbulbs. China needs all the terbium it produces as the country switches wholesale from tungsten bulbs to the latest low-wattage bulbs that cut power costs by 40 percent.

No replacement has been found for neodymium that enhances the power of magnets at high heat and is crucial for hard-disk drives, wind turbines, and the electric motors of hybrid cars. Each Toyota Prius uses 25 pounds of rare earth elements. Cerium and lanthanum are used in catalytic converters for diesel engines. Europium is used in lasers.

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August 10, 2009

Enova Supplies First Hybrid Systems to Chinese Bus Maker, Says More to Follow

FAWhybridbus.jpg China's First Auto Works, which builds trucks and buses as well as cars, has taken delivery of the first 70 of an order of 220 "pre-transmission" hybrid drive systems ordered from Enova Systems, the California-based  electric and hybrid drive-systems developer said this morning.

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FAW hybrid buses in China will be using U.S. hybrid drive systems.
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Enova , making the announcement on the eve of the Plug-In 2009 electric and plug-in hybrids conference that begins tomorrow in Long Beach, Ca., said it also has signed an agreement to supply 800 more of its parallel hybrid drive systems to FAW in 2010.

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July 6, 2009

Major Chinese Automaker To Invest Almost $2 Billion in Hybrid Development

Thumbnail image for roewe750.jpg Shanghai Automotive Industry Corp. said it plans to invest more than 12 billion yuan ($1.8 billion at today's exchange rates) on development of hybrid vehicles and hybrid components by 2014.

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Roewe 750, due in 2010, will be SAIC's frst gas-electic car.
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In an agreement with the Shanghai provincial government last week, SAIC said the investment would cover 41 projects.

The automaker is one of the largest in China and has vehicle manufacturing partnerships with General Motors, Volkswagen and several other major Western automakers.

It is bringing out its first SAIC hybrid, the Roewe 750 hybrid sedan next year, followed by the plug-in hybrid Roewe 550 in 2012.

The Chinese government, aiming to make the county the global leader in fuel-efficient, new-technology vehicles, is encouraging companies to pursue hybrid and electric vehicle development.

In China, we expect, "encouraging" means ordering them to work on the programs and supplying them financial incentives to underwrite at least some of the costs.   

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June 19, 2009

Detroit Electric, Dongfeng Motor Do Deal for Chinese Electric Vehicles

DetroitElectric2.jpg Detroit Electric, the Dutch EV startup, said it has signed an agreement with China's Dongfeng Motor Corp. to help develop and sell electric vehicles in China.

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Detroit Electric's first prototype EV uses a body built by Malaysia's Proton.
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The cars would be based on Detroit Electric's EV drive technology.

The initial agreement calls for Dongfeng to test and validate Detroit Electric's technology with the intention to use it in production of Dongfeng-branded EVs.

The companies said they also are in discussions to form a joint venture company to manufacture, assemble, produce and supply the electric drive technology to the Dongfeng Group and other vehicle manufacturers.
 
Previously, Detroit Electric and Malaysian carmaker Proton signed a licensing and assembly deal that would provide Detroit Electric with vehicle platforms and its first manufacturing base.

Detroit Electric, formed last year by a group of Dutch, Malaysian and American investors, has said it intends to begin selling EVs in Europe, Asia and the U.S. next year,with a first-year goal of 45,000 sales, increasing to 270,000 by 2012.

That's an awfully optimistic goal and we're not holding our breath -- but we do wish them luck.  

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May 28, 2009

China Sets 42.2 MPG Fuel Efficiency Standard as it Seeks to Curb Oil Consumption

But Be Wary of Unfavorable Comparisons to New 35.5 MPG Standard in U.S.

We'll probably be hearing a lot about this in days and weeks to come: China, concerned about its growing dependence on imported oil, is boosting its version of our federal CAFE fuel economy standard to require passenger vehicles to achieve a fleetwide average of 42.2 miles per gallon by 2015.

That's almost 19 percent more than the 35.5 mpg corporate average fuel economy by 2016 that President Obama announced for the U.S. last week. We can just hear the pundits asking why we're not up there with the Chinese.

ChinaUSmpg.jpg So, to toss a little cold water on things, let us point out that China is starting with a much higher fleet average fuel economy than ours. While the actual miles-per-gallon number is bigger, the amount of improvement being demanded by the Chinese government is much less than that being demanded by the U.S. government.

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This chart from the New York Times is the kind of easy, but misleading, comparison to avoid.
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Fuel economy for China's new-car fleet (including SUVs and minivans) already averages 36.8 miles per gallon, so a move to a 42.2-mpg average is a 17.8 percent increase. While significant, that's a lot less of a challenge than automakers doing business in the U.S. will face as the average here rises by almost 40 percent over the next seven years.

(For passenger cars in the U.S., the increase is 42 percent, from the present CAFE standard of 27.5 mpg to 30 mpg; for trucks a 29.8 percent hike to 30 mpg from the present 23.1 mpg will be required.)

The reason China's fuel economy average is so high is that the country's auto fleet is made up mainly of small cars with small engines, and it requires less fuel to move a small vehicle than a big one. Even SUVs in China are tiny by U.S. standards.

One reason Chinese vehicles are small is that they are used mainly for inter-city driving and need to be small to navigate the crowded, often narrow city streets. Additionally, China taxes vehicles based on fuel economy, which has prompted people to demand the most efficient cars and trucks.

China is tackling its oil dependency problem by requiring automakers to meet a minimum fuel economy standard (actually, 16 standards for the 16 classes of vehicles the country recognizes, all averaging out to the 42.2 mpg minimum) and is pushing its populace, via its fuel-economy based vehicle taxes, to favor the most efficient models. Of course, its easier to impose such taxes when you have a one-party, totalitarian government.

In the U.S., we have half the solution: the federal CAFE standard, but we don't follow through with a tax policy that penalizes purchasers of the least efficient models while rewarding those who buy the fuel sippers.

John O'Dell, Senior Editor

 

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May 26, 2009

VW, BYD to Explore Ways to Team Up on Plug-In Hybrid and All-Electric Vehicles

VW-&-BYD.jpg Volkswagen AG will consider forming a partnership with China's BYD Auto in the area of hybrids and zero-emissions all-electric vehicles powered by lithium-ion batteries, Europe's largest carmaker said on Monday.

The announcement comes exactly one month after we reported that BYD and VW confirmed that they will cooperate on the development of lithium iron phosphate batteries.

Volkswagen is the first major industrial partner for BYD, a battery specialist and the fledgling maker of the F6DM plug-in hybrid. Last September, BYD sold a 10 percent stake to Warren Buffett's Berkshire Hathaway for $230 million.

"Particularly for the Chinese market, potential partners such as BYD could support us in quickly expanding our activities," Ulrich Hackenberg, head of research and development at the VW brand, said in a statement.

In addition to Volkswagen, BYD is also talking to Ford Motor Co. and another European automaker about similar arrangements, The Wall Street Journal reported today (subscription required), citing people familiar with the VW-BYD negotiations.

The status of those negotiations, however, was not immediately clear. "We are always in discussions with many suppliers as a standard course of our business, but we have nothing to share at this time," Whitney Small, a Ford spokeswoman in Bangkok, told the Journal.

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April 27, 2009

China's BYD Auto And Volkswagen Reportedly Have A Battery Deal In Place

BYD-F3DM.jpg

China's BYD Auto and Volkswagen have confirmed that they will cooperate on the development of lithium iron phosphate batteries. That's according to Gasgoo.com, which based its account on a recent story in the Beijing News.

"BYD is willing to cooperate with foreign automakers on iron battery development," BYD sales manager Wang Jianjun reportedly told the newspaper, which added that BYD is "in talks with a number of foreign companies on supplying them with battery products."

Iron-phosphate is one of several battery technologies that the automobile industry is developing. The technology offers a relatively low-cost alternative to other types of lithium-ion batteries.

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April 23, 2009

GM and SAIC Expand Partnership in China to Include Fuel Cell Vehicles

Chevrolet-Equinox-FCEV-thumb-400x240.jpg

AutomotiveWorld.com reports that General Motors Corp. and Shanghai Automotive Industry Corp. Group (SAIC) have extended their partnership to include the launch of SAIC's Shanghai Brand Fuel Cell Vehicle, which is powered by GM's latest fourth-generation fuel cell propulsion technology.

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SAIC will use the same fuel cell system that powers GM's fuel-cell electric Equinox.

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The report says that the SAIC vehicle will use the same GM-developed 700 bar (10,000 psi) high-pressure hydrogen fuel cell system used in the Chevrolet Equinox Fuel Cell. The ten fuel cell vehicles to be built will be used by GM and SAIC to shuttle guests to and from the World Expo 2010 in Shanghai.

AutomotiveWorld quotes GM Group Vice President and Asia Pacific President Nick Reilly as saying that the vehicles "will be featured in the most extensive fuel cell demonstration program ever conducted in China.This follows the government's call for the creation of a sustainable transportation system."

Reilly also is quoted as saying that the partnership is "in line with our overall strategy of in China, with China, for China."

Fuel-cell cars and SUVs convert hydrogen and oxygen to electricity through an onboard electro-chemical reaction. The electricity is then used to power the vehicles' drive motors.

Early in 2008, Chevrolet launched a test fleet of about 100 hydrogen-powered Equinox Fuel Cell vehicles that are on the road in New York City, Washington, D.C., and Southern California.The fleet is part of "Project Driveway," which GM bills as "the first large-scale market test of fuel cell vehicles with real drivers in the real world."

Greg Johnson, Contributor  

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April 22, 2009

Brilliance Automotive Uses Shanghai Auto Show to Spotlight Concept EV

brilliance.jpg The Imotor website suggests that the Brilliance EV (right) "might just be the most interesting concept car" at the Shanghai Auto Show.

Paul Lienert, a correspondent for Edmunds' Inside Line described Shenyang-based Brilliance China Automotive Holdings Ltd.'s EV as a welcome surprise - "a four-passenger, battery-powered people mover called the Brilliance EV."

Here's what Inside Line has to say about the concept vehicle:

"Based on the compact Junjie FRV platform and said to be under consideration for future production, the Brilliance EV is a plug-in electric with two motors, rated at 30 horsepower and 63 hp, respectively, with combined torque of 133 pound-feet. Brilliance says the van-like EV has a top speed of around 80 mph and a range of nearly 95 miles with its lithium-ion battery pack.

The EV can be quick-charged in 30 minutes, although a full charge from a standard 220-volt outlet takes up to eight hours.

Features include dual power sliding side doors and a GPS navigation system."

Greg Johnson, Contributor  

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April 10, 2009

China Sees Big Buyer Subsidies as Part of Plan To Dominate EV Industry

China, which wants to lead the world in the manufacture and use of electric vehicles, says that part of its plan will involve massive government subsidies for EV buyers.

The New York Times is reporting today that the Chinese government wants buyers to determine which vehicles will be successful so will offer major subsidies to individuals as well as providing government assistance to China's carmakers. Chery-S18.jpg

China already has approved subsidies equal to $8,800 per vehicle for taxi companies and local governments that purchase electric cars. The implication in the government's announcement is that subsidies or credits to individual EV buyers will be at least that large.

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S18 electric car from China's Chery Automobile, part of a national bid to electrify personal transportation, was unveiled in February.

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The Times' report says that senior Chinese government officials say the effort to move the country's car-buying public into electric vehicles faces challenges in terms of the cost and safety of electric cars and are promising a national effort by manufacturers, universities, research institutes and government agencies to overcome the problems and make EVs as acceptable as conventionally powered vehicles.

That could be a lot easier in China than elsewhere as the country's drivers mostly face short, slow daily commutes on heavily congested roads. There's little need for cars that can drive at 80 miles an hour for hours on end.

Wan Gang, minister of science and technology, told the newspaper that the electric car plan is essential to help China compete in the global auto market, but that the country also has environmental goal for the program.

The government, officials said, is particularly concerned about curbing both China's air pollution and the country's increasing appetite for oil.  

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April 9, 2009

Nissan Reportedly Will Create Electric-Vehicle Program in Large Chinese City

nissanEV.jpg Add Nissan to the list of automakers (including Chongqing Changan Auto, BYD, Brilliance, Chery, Dongfeng and SAIC) that are intent upon plugging into the rough-and-tumble Chinese market for hybrid-electric and battery-electric cars.

The Wall Street Journal reported on Wednesday that Nissan is negotiating with China's Ministry of Industry and Information Technology to create a pilot electric-vehicle program in Wuhan, a city in central China with nine million residents.

The deal is unusual, the Journal reports, because Beijing typically doesn't forge such  partnerships with foreign companies. The newspaper reported that the deal, which calls for Nissan to contribute cars and help create a recharging network, could be completed as soon as Friday.

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April 8, 2009

Argonne National Laboratory Joins Kentucky Universities in Battery R&D Center

It would take a heck of a lot of advanced-technology batteries for President Obama to fulfill his campaign promise to put a million plug-in hybrid electric vehicles on U.S. roads by 2015.

Unfortunately, unless the competitive picture changes dramatically, most of those cars would be powered by batteries produced in Asian countries that now dominate the advanced battery manufacturing sector.

With that hard economic reality in mind, Argonne National Laboratory is teaming up with two Kentucky universities to establish a national research and development center that will be charged with transforming the U.S. into a viable contender when it comes to manufacturing tomorrow's high-tech batteries.

argonne.jpg

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Prius test vehicles at Argonne National Laboratory

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The center that will be located in central Kentucky will be supported by the University of Kentucky and Louisville University. Its not-so-modest goal, as summed up on Wednesday morning by Kentucky Gov. Steve Beshear: ramp up domestic production capacity and turn the U.S. into "the hands-down global leader of these technologies."

The center is supposed to make it easier for federal laboratories, university researchers, manufacturers, suppliers and end-users to collaborate on technologies that can be commercialized.

Many experts believe that advanced battery design and manufacturing could become as strategically important to the global economy as oil is today. But the U.S. has reduced itself to a bit player when it comes to manufacturing increasingly high-tech batteries that will be needed to reduce global dependence on oil and cut tailpipe emissions.

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April 3, 2009

China Wants To Be World Leader in Hybrid and EV Production


changan.jpg

We've posted a number of reports in recent months about Chinese automakers' plans to launch plug-in hybrid and battery-electric cars, including this one. Chongqing Changan Auto says it will launch the nation's first internally-developed hybrid-electric car (right) in May.

That follows hybrid and EV announcements by Chinese automakers BYD, Brilliance, Chery, Dongfeng and SAIC.

China's government has been encouraging development of cleaner, more fuel-efficient vehicles to help clean up the country's miserable air pollution problems and reduce its ravenous appetite for oil.

Now comes word of another reason for all this activity.

The New York Times reports that China has set itself the goal of becoming a world leader in hybrid and EV production -- by 2012.

Seems the Chinese figure that American automakers, once the global leaders in everything automotive (except sexy exotic cars -- the Italians have that one down pat), have ignored electric technologies for too long.

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April 1, 2009

Turnabout: Report Says Chinese Automaker To Use U.S. Parts in New Hybrid

SAIClogoUSA.jpg Score one, for the home team. Buyers of a new hybrid to be built and marketed in China by one of that country's largest automakers apparently will see "Made in the USA" stamped on several key components.

The Wall Street Journal is reporting that SAIC (Shanghai Automotive Industry Corp.) plans to use batteries from Massachusetts-based A213 Systems and electric motors and power controllers from Michigan-based Delphi Corp.

The companies involved haven't announced a deal -- the WSJ piece is based on comments from unidentified sources -- but it makes sense as SAIC already partners with both General Motors and Volkswagen to build various of their cars that are sold in China and other Asian markets, and is responsible for integrating Delphi and A123 Systems components into GM hybrids, the newspaper reported.

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March 16, 2009

Car Shoppers in China, Just Like Here, Finding It Expensive to Be Green

BYD-F3DM.jpg It's not easy being green, particularly when vehicle manufacturers worldwide are singing the blues and clamoring for sales-tax breaks to help move less-expensive conventionally-powered cars and trucks off of dealer lots.

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Green cars like BYD Autos' plug-in hybrid aren't moving well in China's slow economy.
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That's true even in China, one of the world's largest car markets.

Their country remains an attractive long-term market for new-energy vehicles but at present, Chinese consumers are hard-pressed to pay a premium for a green car.

Chinese automakers, though, are scrambling to produce advanced technology cars and trucks in the wake of a central government edict that calls for 60,000 green vehicles to be on the roads by 2012. To help move them off dealers' lots, Beijing is offering subsidies of up to $36,500 to consumers in big cities who buy hybrid, electric cars and fuel-cell vehicles.

The subsidies were created because although the Toyota Prius, Honda Civic Hybrid and the domestically produced BYD F3DM are on sale, Chinese consumers bought fewer than 1,000 hybrids in 2008. To put that figure into context, consider that Toyota's combined U.S. sales of its Prius and Lexus models recently passed the one million mark.

Henry Li, general manager for BYD Auto, bemoaned the situation to the Reuters news agency during a recent interview at the firm's Shenzhen headquarters: "I hope government subsidies can help boost demand, because this is good technology, though expensive compared to conventional cars."

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March 5, 2009

China First to Get Sedan Version of Ford's New Fiesta; U.S. to Get Sedan and Hatch

09FiestaSedanChinaOffline.jpg We have to wait another year, but here's a look at the 2009 Ford Fiesta sedan, which has just gone on sale in China - the first country to get the sedan version of the new global platform subcompact.

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Chinese-market Fiesta sedan rolls off assembly line.
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Ford launched the Fiesta as a hatchback in Europe, South Africa, Australia and New Zealand late last year and the car already has become one of Europe's the top-selling passenger vehicles , trailing only the VW Golf.

Since its August '08 launch, consumers on the three continents have purchased more than 110,000 Fiestas, Ford said.

It was recently named British car of the year by What Car?, the U.K.'s automotive version of Consumer Reports.

The sedan, initially designed specifically for the Chinese market, will be one of three Fiesta models - the others are the three- and five-door hatchbacks - sold worldwide when it launches outside of China next year.

The U.S. market will get the sedan - revised for North American tastes and safety standards - and the 5-door hatchback, both to be built at Ford's plant in Cuautitlan, Mexico.

No info yet on fuel economy or engine size, but What Car? tested the British version with a 1.25-liter engine at 50 miles per Imperial gallon, which works out to around 45 mpg in the U.S.

We'll likely get  larger engine, though, so our mileage could - probably will - vary.

John O'Dell, Senior Editor  

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January 23, 2009

Plug-In Hybrid Maker BYD Reportedly Considering Leasing Its Technology

Plugin.jpg China's BYD Co., whose auto-making unit just launched the world's first mass-produced plug-in hybrid, is believed to be considering a plan to license the technology to other car companies.

Citing a  report in China Knowledge Press, analysts at Global Insight said that unnamed sources say that companies in the U.S., Europe and Japan have shown interest.

Such deals, whether with BYD Automotive or another hybrid maker, would be a double-edged sword.

Licensing plug-in hybrid technology would enable smaller carmakers to ready competitive hybrids more rapidly and at less expense than if forced to develop their own technology, but would leave a foreign entity in control of a key resource.

BYD is one of the largest battery producers in the world and has based its plug-in technology on its proprietary (and low-cost) batteries.

Thumbnail image for BYD-F3DM.jpg Plug-in hybrids such as the F3DM model (left) that BYD has begun selling in China and plans to export next year to North America and Europe require larger and more powerful battery packs than conventional hybrids because they are designed to operate in all-electric mode for considerably longer periods of time.

The reduced cost of BYD's batteries makes its technology particularly attractive to carmakers with pinched R&D budgets.

But if Chinese batteries become the staple and widespread use of licensed hybrid technology replaces or even significantly delays internal development of alternative power plants, the industry would be trading the problem of dependence on imported oil for dependence on imported batteries and hybrid systems.

If used as a stopgap while proprietary technologies are being developed, though, deals such as BYD is considering could help small, independent automakers become competitive with giants such as Toyota in a market that demands the kind of fuel-efficiency and clean emissions that electric-drive automobiles can provide.

John O'Dell, Senior Editor  

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China's SAIC Says It Will Launch Mild Hybrid Sedan Next Year

roewe750.jpg China is slated to get a new hybrid passenger car next year with the launch - announced this week - of Shanghai Automotive industry Corp.'s first gas-electric vehicle.

The company, known as SAIC, said it has developed a hybrid powertrain to use in its Roewe 750 sedan (left), a car based on the old Rover 75 (SAIC acquired Rover - but not its name, thus the Roewe nameplate, from BMW a few years ago).  

It is one of a number of Chinese hybrids under development, encouraged by a government that is struggling to reduce oil consumption and improve air quality. One competitor, BYD, has just launched a plug-in hybrid - the first in the world to go to market s a mass-production model.

SAIC's mild hybrid system is expected to reduce fuel consumption and greenhouse gas emissions by 20 percent from the standard gasoline model - a significant improvement for a Chinese automaker on is first go-it-along green car project

SAIC is General Motors Corp.'s joint venture partner in China and the partnership, Shanghai GM, recently launched a hybrid model of the Buick Lacrosse there.

SAIC reportedly has spent more than $300 million on hybrid powertrain development.  

In a turnaround from the normal routine in which China supplies the basic parts for finished goods, from toys to technical equipment, that are sold here by U.S. companies, SAIC is thought to be getting the lithium ion batteries for its first hybrid model from Minneapolis-based Johnson Controls.  

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January 11, 2009

Detroit Auto Show: Ford Promises EV by 2011, Plug-In Hybrid by 2012

FordPlugIn.jpg Ford Motor Co. plans to jump into the electric vehicle word in a big way, chief executive Alan Mulally and other executives told reporters at the North American International Auto Show today.

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Ford is testing a plug-in hybrid version of its Escape SUV.
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The company already has announced plans to launch a battery-electric delivery van for the commercial vehicle market in 2010, and Mulally said a battery-EV small car for the retail market will follow in 2011.

Beyond that, Ford plans to hit the market with a new generation of hybrids - including its first plug-in - by 2012. (The company presently is testing a plug-in version of its Escape hybrid SUV.)

The 2010 Ford EV will be developed in partnership with Canadian auto components supplier Magna International, and Ford executives said the company would work with partners on other green vehicles and on lithium-ion battery development as well.

The company's high-volume global platforms for small and mid-size cars such as the Focus and the Fusion, will support battery-electric powertrains as well as conventional gas and diesel engines said Mark Fields, president of Ford's Americas division.

Ford's chairman, Bill Ford, said the company has formed a four-way partnership in China and the U.S. to help expand its electric vehicle expertise.

In addition to Ford, the partners are Changan Auto Group and the cities of Chongquing, China, and Denver, Colo.

The cities' cooperation is valuable because they can provide real-world test-beds for EVs by introducing them into city fleets and by facilitating tests of things such as public charging infrastructure, smart grid electrical hookups.

John O'Dell, Senior Editor  

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January 5, 2009

China's BYD to Showcase Production Plug-In Electric Hybrid Vehicle at Detroit Show

BYD-F3DM.jpg China's BYD Auto will showcase the world's first mass-produced plug-in hybrid electric vehicle at next week's Detroit auto show, according to a report in China Automotive Review .

The five-year-old automaker began selling the dual-mode hybrid in China last month -- at least a full year before rivals General Motors and Toyota bring electric-powered vehicles to market. BYD Auto has said it plans to sell the F3DM PHEV in North America in two or three years.

The F3DM, which was unveiled to reporters at BYD's headquarters in Shenzhen last month, can travel 62 miles using only batteries, BYD Auto claims. After that, a 1.0-liter all-aluminum gasoline engine comes on to generate electricity for the vehicle's battery pack, which in turn powers the vehicle's 75-kilowatt electric motor.

The midsize sedan sells for about $21,700. BYD Auto attributes its ability to offer the F3DM at about half the estimated price of GM's comparable Chevrolet Volt PHEV, due out in 2010, to a breakthrough development in battery technology.

Parent company BYD, which is the No. 1 supplier of lithium-ion batteries for cell phones, is now able to produce a high-performance ferrous-based lithium-ion battery on an industrial scale, company Vice President Lian Yubo said.

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