Tesla recall: Good for the electric car industry?
San Carlos, Calif.-based Tesla Motors issued a recall notice late yesterday for 345 of its 500 Roadsters in the field because of a flaw that could cause the vehicles to crash.
No injuries have been reported from the defect in the vehicle’s hub, and Tesla has said it will immediately deploy technicians to customers’ homes and offices to make the simple fix.
But advanced automotive technology analyst Philip Gott, director of automotive consulting for IHS Global Insight , said Tesla is taking what could have otherwise been a disaster for the budding industry and turned it into something positive.
“Tesla is almost the poster child for the battery and electric vehicle movement,” Gott told the Cleantech Group. “These things happen, and the fact that Tesla is responding to it in an exceedingly professional manner can only speak good for the industry as a whole. In fact, if Ford and Chrysler had been this responsive to defects in the ‘70s, they wouldn’t be in the position they are in now.”
Tesla is taking some flak for the recall, which follows last year’s transmission problems that delayed the production of the $109,000 Roadster (see Tesla’s new convertible ). Tesla has emphasized the current recall has nothing to do with the electric drivetrain.
Tesla’s problem lies in the vehicle’s chassis, which is produced by contract manufacturer Lotus of the UK. Lotus has also issued a recall on some of its Elise and Exige vehicles because of the same problem in the British factory: The bolts were not tightened on the vehicle’s inner hub. A loose hub could deteriorate the ability to handle the vehicle, which could cause the driver to crash, according to the recall notice.
“The recall’s really got nothing to with it being an advanced vehicle," Gott said.
In addition to its technicians tightening the loose bolt, Tesla plans to throw in a free car inspection and a software upgrade. Spokeswoman Rachel Konrad said those upgrades typically happen once a year to improve the software that controls charging and performance of the electric vehicle.
Tesla has sold almost 500 Roadsters in the U.S., with plans to deliver vehicles to the EU starting in late June, she told the Cleantech Group today. The vehicles affected by the recall were manufactured between March 2008 and April 22, 2009.
Lotus assembles the car before shipping it to California, where Tesla installs the batteries and drivetrain. Tesla has licensed the motor technology of AC Propulsion to integrate the charging electronics into the inverter (see Zero emission car makers get tax break in California ).
Konrad pointed out that vehicle recalls are quite common; in fact 10 million vehicles were recalled in 2006 alone, providing many case studies for Tesla to examine in order to decide how to proceed, she said.
“One we’ve studied is Lexus’ landmark 1989 recall shortly after the brand debuted in the United States. Lexus asked people to bring their cars into dealerships but then gave them loaners and tried to make the process as convenient as possible–and in the long run it actually enhanced the brand’s reputation,” she said. “Taking a page from the Lexus playbook, we are striving to exceed owners’ expectations, not only with the excellence of our Roadster but with our respect for the ownership experience and our customers’ time.”
There are also examples of what not to do, she said. Gott agreed, saying Tesla’s reaction was critical because of the prominence the company has gained thanks to German automaker Daimler , which has taken an equity stake in the company and signed a deal to use Tesla’s battery pack in its electric Smart cars (see Daimler takes 10-percent stake in Tesla Motors and Berlin to charge up Smart cars ).
“With a company like Tesla, because they’ve gained visibility, if they don’t handle things properly, it could be a disaster,” Gott said. “The industry is at an embryonic stage, and it could go either way.”
Certainly, it’s not the first time Tesla has had to overcome bad news. CEO Elon Musk was caught in March sending out fake e-mails to employees in order to find those leaking information to the press (see C-levels falling ). The hunt began when an employee leaked that the company had just $9 million in the bank last fall. The company has since secured $40 million in convertible debt financing and expects to become profitable this year.
Tesla is awaiting word on a $350 million loan application to the Department of Energy that would allow the electric carmaker to build the Model S sedan, which is expected to cost $57,400. Tesla scrapped plans to build the factory on undeveloped land in San Jose because it would not qualify for the DOE funds (see Tesla CEO says carmaker is bouncing back and Tesla to build factory, new HQ in San Jose ).
Article from cleantech 。
Ford converts SUV plant to produce its first electric car
Chief exec claims $550m plant refit "embodies" Ford’s transformation to a manufacturer of smaller, greener cars.
In a highly symbolic move, auto giant Ford announced yesterday that it is to invest $550m (£365m) in converting a Michigan plant currently used to manufacture SUVs into a factory specialising in small, fuel-efficient cars that will also produce its first electric vehicle.
The company said that the plant would be refitted to manufacture a new version of its small Ford Focus from next year, and would then begin producing a battery-electric version of the Focus – Ford’s first all-electric passenger car – in 2011.
The Michigan plant was one of the world’s most profitable car factories during the late 90s when sales of large SUVs such as Ford’s Lincoln Navigator boomed. However, it has suffered in recent years as the market for larger vehicles has collapsed.
Ford president and chief executive Alan Mulally said that the move "embodies the larger transformation" under way at the company that will see it significantly increase its focus on fuel-efficient and low-carbon vehicles.
"This is about investing in modern, efficient and flexible American manufacturing," he said. "It is about fuel economy and the electrification of vehicles. It is about enhancing our expertise and vehicle platforms around the world… to deliver best-in-class global small cars."
The move is part of a series of three Ford plant conversions designed to ensure the company meets its goal of delivering six small cars and four electric cars from 2012. Under the plans, a truck and SUV plant in Mexico is to begin building the new Fiesta subcompact from early next year, while a plant in Kentucky will also be converted to produce small vehicles from 2011.
"We are changing from a company focused mainly on trucks and SUVs to a company with a balanced product line-up that includes even more high-quality, fuel-efficient small cars, hybrids and all-electric vehicles," said Mark Fields, Ford’s president of the Americas. "As customers move to more fuel-efficient vehicles, we’ll be there with more of the products they really want."
The company said the conversion of the Michigan plant would support 3,200 jobs and result in a "lean, green and flexible manufacturing complex". It added that the $550m investment would be supported by more than $160m in tax credits from the State of Michigan and local governments.
California Needs Low Carbon Fuels to Replace Polluting Petroleum Fuels
SACRAMENTO, Calif., April 22 (AScribe Newswire) — The American Lung Association in California strongly supports the California Air Resources Board’s (CARB) proposal to adopt the Low Carbon Fuel Standard (LCFS) to reduce carbon dioxide emissions from transportation fuels by 10 percent by 2020 and urges the board to adopt the standard without delay at its April 23 hearing.
Transportation is the largest source of global warming emissions in California, responsible for approximately 38 percent of the state’s greenhouse gas emissions. This precedent-setting standard will help the state kick its petroleum addiction and move to a cleaner, more sustainable transportation system.
This is a first-ever regulation addressing the global warming impact of transportation fuels. The regulation will be the model for similar efforts at the state and federal levels.
California’s LCFS is part of the three-tiered strategy to reduce greenhouse gases from transportation that includes: pursuing cleaner fuels (such as hydrogen), cleaner vehicle technologies (such as hybrid electric vehicles, battery electric vehicles and fuel cells), and reducing driving. This innovative measure will advance development and use of low carbon fuels that may include advanced biofuels, electricity and fuel cells.
"The American Lung Association in California is counting on the LCFS to take the state a giant step forward toward reaching the state’s global warming reduction targets in AB 32, legislation that set the nation’s first statewide cap on global warming pollution," said Trisha Murakawa, board chair, American Lung Association in California. "We support the California Air Resources Board’s leadership in developing the LCFS rule and believe this groundbreaking rule is a key step in the fight against global warming pollution and over-dependence on polluting petroleum fuels."
CARB estimates that the LCFS will provide 10 percent of the total greenhouse gas reductions needed to reach AB 32 goals and almost one quarter of the reductions needed from the transportation sector under AB 32.
The American Lung Association strongly urges CARB to adopt the staff recommendation to include "indirect land use effects" in the standard, ensuring the final standard accounts for global warming gases released from land conversion to produce fuels (such as clearing forests to grow crops for fuel). The American Lung Association also urges the board to ensure the standard promotes the cleanest, ultra-low carbon fuels, and provides for careful review of air quality and local community impact as new fuels and infrastructure are introduced.
"If CARB does not account for the greenhouse gases released through land conversion, the standard could end up increasing global warming gases from transportation fuels and having the opposite effect from what is intended," said Murakawa.
The American Lung Association in California has a long history of fighting for cleaner fuels and cleaner vehicles to advance progress toward meeting state and federal air quality goals and to achieve important public health improvements. A study released by the American Lung Association in California last year (Road to a Cleaner Future, March, 2008) found that the total cost to public health and society of the existing petroleum fueled motor vehicle fleet is more than $10 billion in 2010.
Carbon dioxide emissions, a key pollutant resulting from burning fuels, significantly contribute to global warming.
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Electric Car Conversion Manual
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