What Will Happen To All Those VW Diesel Cars?

What is going to happen to all those Volkswagen diesels after the company buys them back starting later this month? Most people assume they will be fed into a giant crusher that will melt the engines down so the metal can be used again. Ideally, the same machine would reconfigure the chassis at the same time and spit out a brand new electric car with 400 miles of range. That would be lovely, of course, but it’s not gonna happen.

According to the terms of the legal settlement to a federal lawsuit entered into by Volkswagen, it has three options:

• modify and resell them as used cars (if approved), with proper disclosure to the buyer.
• export them for resale abroad.
• render them inoperable and recycle them, or salvage them for parts that may be sold in the U.S. or exported.

Which way Volkswagen decides to go will depend largely on which cars we are talking about. They are organized into three groups, depending on year of manufacture and which engine was installed at the factory.

Group One consists of:

• 2015 Golf TDI, Golf SportWagen TDI
• 2015 Audi A3 TDI
• 2015 Jetta TDI, Passat TDI, Beetle TDI

These 67,000 vehicles are most likely to receive approval for modification because they come closest to meeting emissions regulations as built.  They use a newer 2.0 liter TDI diesel engine known as the EA288 and are fitted with tanks for the Diesel Emission Fluid necessary for the selective catalytic reduction (SCR) treatment system that removes pollutants from their exhaust gases.

Group Two is made up of 2012 through 2014 Passat TDI vehicles. These 90,000 cars were built in Tennessee during that car’s first three model years. They use an older 2.0 liter diesel engine known as the EA189 but are equipped with the SCR system and tanks for the urea fluid it requires. Some of those could be exported to other countries and resold without modifications.

Group Three is the largest. It includes 325,000 cars that were not fitted with the SCR system. They have only a Lean NOx Trap. Included in this group are:

• 2009-2014 Jetta TDI, Jetta SportWagen TDI
• 2010-2013 Golf TDI
• 2012-2014 Beetle TDI
• 2009-2013 Audi A3 TDI

These cars are by far the dirtiest, and would likely be very expensive to modify. To comply with emission standards, they might require installation of catalytic converters, urea tanks, and many engine modifications they were never designed to accommodate. Most of these engines will probably be “disabled” or rendered inoperable.

That process would probably be similar to the how cars covered under the infamous Cash For Clunkers program from 2009 were disposed of. Volkswagen has already conducted a pilot program to see how the process would work. In the meantime, it is making arrangements to store the nearly half million vehicles involved at locations around the country.

Someday, cars in Group One could be offered for sale to US customers again. They would probably be offered at very attractive prices to overcome the pollution belching stigma attached to them. Would you buy one if the pollution problems are resolved and the price is right? Let us know in the comments section below.

Source: Green Car Reports

Canada Offering EV Rebate Via Cash-For-Clunkers Program

In the summer of 2009, America’s official Cash for Clunkers program got underway, with the hopes of propping up a floundering auto industry and getting old, polluting cars off the road. The Canadian province of British Columbia (BC) has launched it’s own Cash-For-Clunkers program, but with the $3,250 rebates only good towards the purchase of a plug-in car, reports Autos.ca.

British Columbia actually ended up a test case for what happens when local governments remove incentives for buying plug-in cars. The results made it clear that incentives for plug-in car drivers really do make a difference, which encouraged BC to develop a new Scrap-It program targeting cars age 15 years or older. Drivers who turn in their old cars to be recycled will receive a $3,250 rebate towards the purchase of an electric car or Chevy Volt/Cadillac ELR, but interestingly enough, no other plug–in hybrid or hydrogen fuel cell vehicles. Considering Vancouver recently scrapped about $90 million worth of hydrogen buses, it seems like maybe Canada has gotten its fill of fuel cells.

The $3,000 rebate (plus $250 from car dealers) is more than the book value of many pre-200 vehicles. That’s not the only incentive BC has to offer plug-in car buyers though, as the provincial government is expected to re-introduce an up-to $5,000 rebate for the purchase of a plug-in car, though it’s unclear whether the $2,500 rebate for plug-in hybrids will also make a comeback. For those willing to go pure electric though, the rebates could add up to more than $8,000 off the MSRP of an electric car, though other parts of the land of hockey and maple syrup can get up to $11,000 in incentives.

That’s Canadian dollars, I should note, and the $8,000 BC incentive works out to about $6,400 in America. U.S. citizens benefit from a $7,500 tax rebate, plus state incentives like Georgia’s $5,000 rebate that can reduce the price of some EVs like the Mitsubishi i-MiEV by more than half. Considering what a difference rebates make to plug-in car sales though, and that this program can take some real inefficient cars off the road, this program is a win-win for environmentalists.

China To Junk 6 Million Old Cars By The End Of The Year

China had very lax emission standards for vehicles until about 5 years ago. But as the smog problem grew, the standards were tightened and then tightened again. The problem is, there are still lots of cars built more than 5 years ago on the roads and those are a major source of pollution. In response, China has decided that it must junk up to 6 million of the oldest and dirtiest cars on the road to help reduce pollution in major cities. Sort of reminds me of the ill fated and much debated “Cash For Clunkers” program in the US a few years back, except in China the cars selected will probably be confiscated, rather than purchased.

China has become synonymous with intense smog hanging over its cities, due in large part to tens of millions of cars, trucks and buses spewing pollutants into the air from their exhaust pipes. In Beijing, for example, the state news agency Xinhua estimates that 31% of the pollution comes from vehicle emissions. Basically, what happened to California in the 50′s and 60′s is happening to cities like Beijing and Shanghai today only more so.

You may remember that China ordered a halt to virtually all industrial activity around Beijing in an effort to reduce the smog problem before the Olympics. Chinese people have taken to wearing masks over the nose and mouth when venturing outside in an attempt to reduce breathing in the harmful elements in the air around them. For those who are able to choose where they live, the number one consideration for Chinese people is moving to a place with less air pollution. The government has made moves to reduce the choking levels of pollution, and estimates that about 7.8% of the cars on the road don’t meet current emissions standards, and that next year another 5 million dirty vehicles could head to the scrap heap as well.

How successful the program is will depend on the other areas of the economy doing their part. China relies heavily on coal, much of which it gets from Australia. So far ,the emphasis has been on providing enough power to drive the economy forward with little thought for the consequences. Now the chickens have come home to roost, so to speak, and China must deal with the fact that it is poisoning its own well.

Taking 6 million old cars off the roads will help. But China has a lot more work to do than simply crushing older cars.

Source: The Guardian | Image: Josh Vaughn, C.C. 2.0

Average U.S. New Car Fuel Economy Is Up Again, Now 25.4 MPG

The University of Michigan has crunched the numbers and found that the average new car fuel economy has reached an all-time high of 25.4 mpg. Updated on April 2^nd, 2014, the EPA’s Fuel Economy Guide for 2013 includes statistics of 99.8% of new cars sold in the U.S. in the year 2013.

The EPA began its report on average fuel economy when the average teetered between 20.1 and 20.4 mpg during the last quarter of 2007. Over the past 78 months, the largest increases can be seen annually from September to October. This period during 2009 experienced a full gallon increase in economy, the largest single month increase and more than three times the 0.3 mpg jump that occurred during March 2014.This big jump in fuel economy can be at least partily attributed to the Cash for Clunkers program that was enacted in June of 2009. This year has shown a 0.4 mpg rise while 2012 saw a 1.0 mpg increase over 2012, the biggest single year increase in the last six years.

A previous report by the University of Michigan revealed stats on the 83 years prior to the beginning of the EPA’s study (1923-2006). This study states that in 1923 the fuel efficiency average was only 14 mpg and actually decreased by 2.1 miles over the course of the next 50 years.

During the 1970’s, a fuel crisis forced manufacturers to improve fuel economy and lead to a gain of 5 mpg (16.9) by 1991. Following these years of prosperity the numbers continued to rise, albeit slowly, as 2006 saw an average of 17.2 mpg, only a 0.3 increase over the 23 years before.

While averages may have been low in the dawning of the industry, some models managed to still receive respectable numbers. In 1923, the Ford Model T still pull out an impressive 25 miles gallon. One look at a Model T showcases the simplicity of their design and the lack of modern day amenities that allow this 1,200 lb car to get 25 mpg out of a 2.9L 20hp engine.  As we make the switch to lightweight materials, we can continue to add features while decreasing weight, bringing us past the limits of current technology and a few miles further down the road.

Sources| Photos: UMTRI |Gizmag

EV Tax Rebate Could Become an Instant $7,500 Rebate in 2012

There’s plenty of debate over the government’s $7,500 tax rebate for plug-in vehicles, and the debate will surely kick into overdrive as the government considers turning the tax rebate into an immediate rebate right at the dealership’s door.

As of right now, if you want to buy say, a Nissan Leaf, you have to pay the dealership $32,780. The $7,500 tax refund only kicks in when you file your taxes, which makes it a lot harder for people right on the cusp of being able to afford a Leaf, or a Volt, or whatever, to get financing. But Secretary of Transportation Ray LaHood wants to turn that tax rebate into a cash rebate that is applied right at the dealership, so instead of signing on to pay $32,780 for a Leaf, you would pay $25,280, no waiting for taxes necessary. During a recent tour of Nissan’s new battery plant being built in Tennessee, LaHood said such a rebate could come as soon as 2012.

I like the idea, although I don’t like the idea of putting the rebate into the hands of car dealers. Why? Well Cash for Clunkers, the government program designed to boost car sales and get some old cars off the road, was fraught with fraud and by some calculations, a gigantic waste of government money. If there is a way to screw people out of money, car dealers will figure it out. On the same token, I hope this rebate brings more would-be EV buyers into the fold, as cash on the hood is always a tempting offer. And all this investment into EV vehicles and charging infrastructure could be just what our economy needs to get back on track.

Source: Green Car Congress

President Obama To Propose Changes For Federal Tax Credits When Purchasing EV's

Nissan Leaf Taking On Electrons










U.S. President Barack Obama’s administration will propose that consumers receive a $7,500 tax credit for electric cars at the dealership, reducing the sticker price, an Energy Department official said.

The initiative will be included in the president’s budget next week, David Sandalow, assistant secretary for policy and international affairs, said on a conference call with reporters today.

Consumers who have used hybrid- and electric-vehicle credits have received the benefits when they filed their tax returns. The administration wants to make the cars more affordable at the point of sale, in the same way the 2009 “Cash for Clunkers” program worked, Sandalow said.

“The current credit is going to be reformed so it’s claimable by dealers or others,” Sandalow said. “There will be clear requirements to ensure the benefit is passed onto the consumer.”

The administration will also propose grants for as many as 30 communities to build infrastructure to recharge electric vehicles, Sandalow said. The president’s budget will also include new research and development investments in electric drive, battery and storage technologies, he said.

Tesla Shares

Tesla Motors Inc., an electric-car maker backed by Toyota Motor Corp. and Daimler AG, rose $1.42, or 6.2 percent, to $24.49 at 4 p.m. New York time in Nasdaq Stock Market trading. A123 Systems Inc., a U.S. battery maker, rose 61 cents, or 6.6 percent, to $9.92.

J.D. Power and Associates, a research company in Troy, Michigan, projected last month that under current market conditions, there would be 750,000 plug-in hybrid vehicles like General Motors Co.’s Chevrolet Volt and battery-electric cars like Nissan Motor Co.’s Leaf by 2015.

GM, with about 24 percent of the electric-vehicle market, and Nissan will be the winners, because they’re already selling the cars, said Michael Omotoso, director of powertrain forecasting at J.D. Power. Honda Motor Co., which is at least a few years away from selling an electric model, will be among the losers, he said.

Volt, Leaf

The redesigned electric-vehicle tax credit would be available to both battery electrics like the Leaf and plug-in hybrids such as the Volt, Energy Department spokeswoman Jen Stutsman said in an e-mail. More specifics will be worked out with Congress, she said.

The budget proposal will be the latest effort to bolster tax credits aimed at bringing advanced technology cars to the U.S. sooner.

Representative Sander Levin of Michigan, the top Democrat on the House Ways and Means Committee, said last month he backed legislation to enable automakers to claim the tax credits on 500,000 electric vehicles. The current cap is 200,000.

The Senate Energy and Natural Resources Committee last year approved legislation to create a $2 billion program with the goal of putting 400,000 electric cars on the road in three years. The Senate didn’t vote on the measure.

The Energy Department released a report on the pledge that the president made in the State of the Union address to have 1 million electric vehicles on the road by 2015.

The current market outlook suggests that while the goal is ambitious, it is achievable, according to the report. The auto industry will have enough manufacturing capacity, it said. Additional steps are needed to help companies develop new technology, reduce costs and spur consumer demand, it said.

Source: Businessweek

Cash For Clunkers Program Receives Congressional Resucitation

CARS (the cash for clunkers program) has been wildly successful to the point of exhausting its funds in a matter of days. This past week, Congress has stepped up and sent a bill to extend the program with another $2 billion and a time extension until Labor Day. President Barack Obama signed the bill extending the popular program into Labor Day and preventing the 2-week-old incentives from running out, the White House said on Friday.

The Senate voted to refill the car incentive program on Thursday, tripling the $1 billion fund that has led to big crowds at once deserted auto showrooms.

"Now more American consumers will have the chance to purchase newer, more fuel-efficient cars and the American economy will continue to get a much-needed boost," Obama said in a statement Thursday hailing the vote.

Out of the $700 plus trillion economic stimulus bill, these funds may have been the most wisely spent. Old, inefficient cars are being taken off the roads in huge numbers, being replaced by much more fuel efficient autos. Car dealers have not seen this kind of sales activity in months which keeps their doors open and jobs in tact. The three billion dollars that the US Government will spend on the clunkers program has easily accomplished its goal of creating jobs, stimulating the economy and helping to raise the fuel economy of the US fleet.

The big question is, "How successful has the other $700 billion from the Reinvestment act been?"