Detroit Electric Gets Nearly $2 Billion In New Investment Money

Once upon a time, there was company that wanted to rip the engine out if a Lotus sports car, stuff it full of batteries and an electric motor, and jump into the deep end of the electric car pool. You can be forgiven if your first thought is, “Tesla Motors.” In this case, though, we are talking about Detroit Electric, a company whose electric car dreams began back in 2008. Frankly, other than announcing the SP-1 Lotus based sports car two years ago, nothing much has happened with the company. Until now.

Detroit Electric just announced a joint venture worth $1.8 billion with Far East Smarter Energy Group, a Chinese electrical and battery company. It says it has plans for two new electric car models in the next two years. The new joint venture company will spend $370 million to ramp up Detroit Electric’s European operations over the next four years. Part of that expansion includes updating and adding to the current facility located in Leamington Spa, England.

The first priority is to get the long delayed SP:01 into production, something they hope to accomplish before the end of this year. Simultaneously, a new R&D and testing facility will get underway. An electric SUV is planned for 2018 with a third vehicle due to come to market in 2020. Detroit Electric hopes to be selling 100,000 cars a year by then.

The plan sounds overly aggressive for a company that has languished by the side of the electric car highway for nearly a decade with nothing to show for its efforts. Elon Musk found out the hard way that thinking about building an automobile is easy; actually producing one is hard. The competition is ramping up. The mainstream manufactures may view electric cars as ugly step-children — something to be tolerated rather than embraced — but Detroit Electric will soon have lots of company.

Faraday Future, Lucid, and NIO all have electric SUVs coming. Tesla is already working on an SUV version of the Model 3. The German car companies all have electric SUVs on their drawing boards. Nonetheless, never underestimate the power of nearly $2 billion. Someone clearly thinks Detroit Electric has a bright future. “We’ll see,” said the Zen Master.

Source: Autoblog

GM Readies Electric Rival to Tesla - Auto Maker to Show Concept of Family-Size Car That Gets 200 Miles on a Charge

General Motors Co. plans to launch a $30,000 electric vehicle called the Chevrolet Bolt that would be capable of driving 200 miles on a charge by 2017, according to people familiar with the strategy, a move to gain ground on Tesla Motors Inc.
GM will show off a concept version of the Bolt on Monday at the Detroit auto show, eight years after the auto giant disclosed it would re-enter the electric car market with the Chevrolet Volt. The Volt, on sale since late 2010 and redesigned for 2015, is being upgraded to get better capability and sharper design, and has a backup gasoline motor on board in case juice runs out.

The Chevy Bolt, carrying a more capable battery manufactured by South Korea’s LG Chem Ltd. , will be aimed squarely at Tesla’s forthcoming Model 3, a $35,000 electric car also slated to debut in 2017. The concept version of the electric car will be a hatchback designed to look more like a so-called crossover vehicle, according to people familiar with the design. The Bolt will be capable of driving four times farther than a Chevrolet Volt plug-in hybrid on a single charge.
GM has thus far struck out in its attempt to match its Silicon Valley rival. Recently, GM launched a $75,000 Cadillac ELR plug-in car that failed to dent Tesla’s dominance among luxury electric-vehicle buyers who have clamored for the Model S sedan.
By placing the Bolt in the high-volume Chevrolet line and giving it a name similar to the Volt, executives hope to polish Chevy’s image as a full-line vehicle manufacturer prepared to meet demand, regardless of prices at the pump, according to people familiar with the strategy. GM expects the Bolt to compete globally, including in markets such as China. It is unclear if a car similar to the Bolt would be inserted in the Opel, Cadillac or Buick brands down the road.
The Bolt represents the biggest risk taken by Chief Executive Mary Barra since taking GM’s helm a year ago. Its development was approved when she was product chief under former CEO Dan Akerson . But U.S. gasoline prices have fallen below $2 a gallon this year, hurting demand for electric cars.
While Tesla has sold relatively few Model S sedans since putting the car on sale in 2012, the Palo Alto, Calif., auto maker’s shares have soared on investor hopes for the company’s future.
Over Ms. Barra’s first year at GM’s helm, company shares fell 14% while Telsa shares soared 48%. Ms. Barra aims to have up to 500,000 electrified vehicles—including vehicles with partial-electric capabilities—on the road by 2017. In contrast, Tesla CEO Elon Musk has said he envisions up to 500,000 annual Tesla sales of pure electrics by 2020.
One factor motivating Ms. Barra is meeting regulations in the U.S., Europe and Asia that penalize full-line manufacturers when they sell too high a concentration of trucks and sport-utility vehicles, which are GM’s sweet spots. Ms. Barra, however, has insisted the company won’t build electric vehicles just “to check a regulatory box.”
AutoNation Inc. CEO Mike Jackson , who runs the largest U.S. auto retailer, said a vehicle like the Bolt shows a new attitude atop GM. The auto maker is now making big profits in the U.S. on its new trucks and SUVs in an era of low gas prices making the investment into more capable electric vehicles look more like a moonshot than a sound business decision.
“The old GM would have milked the cash cow until it was dry,” Mr. Jackson said in an interview. The new GM, he said, is showing signs that it is willing to take the long view. He estimates electric cars will compose 2% of the U.S. market, at most, in five years. “The industry will lose money on it,” he said.
GM’s track record with electrics remains spotty. The company shut down EV1 production in 1999, pulling the plug on a $1 billion electric-vehicle program that had impressed regulators but failed to reach commercial viability.
The Volt project started several years later. Heavily hyped by former GM CEOs and legendary product development chief Bob Lutz, the $35,000 car has been a disappointment despite hefty government subsidies.

Less than 90,000 Volts have sold globally since it went on sale in late 2010, and only 1,500 were delivered in December. The introduction of pure electric vehicles, such as Nissan Motor Co. ’s Leaf (which achieves 75 miles on a charge), and the relative success of Tesla’s pricey but more capable Model S sedan has overshadowed GM’s efforts.
The Volt is set for an overhaul in 2015. But it will be a smaller part of GM’s strategy than initially expected.
For Ms. Barra and other GM engineers, the Bolt’s proposed 200-mile range is critical because it is seen as addressing concerns about range long associated with electric cars, one person involved in the car’s development said. “Two hundred miles is seen as some sort of barrier where the notion of range anxiety goes away,” this person said.
Tesla has said its Model 3, due in 2017, will achieve about 200 miles on a charge. While less capable than the 85 kwh Model S, Mr. Musk plans to offer the Model 3 at a fraction of the price.
By the time the Bolt and the Model 3 hit the market, an onslaught of competitors, mostly from Europe, are expected to have long-range EVs available. Those cars, which could get more range, will likely be far more expensive than the Chevy.
While the electric car GM plans to build is far bigger than the economy car that has long been rumored, the Bolt will be smaller than Tesla’s Model S. The pouch battery cells that LG uses gives the auto maker flexibility to tuck the battery pack into a unique design in the vehicle.
The pack for GM’s new vehicle could be built in LG Chem’s Holland, Mich., plant, where the Volt batteries currently are made by the same supplier. That plant would have a capacity to build about 60,000 Volt battery packs, or 20,000 of the larger packs for a new EV, or a mixture of the two.
LG Chems’s battery improvements to make it possible to for GM to create the low-cost EV include better durability and electrical controls. Also, LG will use more of the available storage capacity in the cell than it does on the Volt. Plug-in hybrids can use less available storage capacity because of the constant charging from the gasoline engine. If more charge is used, it would limit the life of the battery.

“We have progressed far enough that it gives us a high level of confidence that in the 2017 kind of a time frame, there are no show stoppers or gotchas that we don’t know how to get over,” Prabhakar Patil, the chief executive of LG Chem Power Inc., the U.S.-based battery arm of the Korean electronics giant, said in an interview.

How Tesla is getting around Michigan's 'no sales' law

A fully-charged Tesla Model S can get from Detroit to Toronto if the driver doesn't have a lead foot. A more important US-Canada city tour would be from Detroit to Windsor, Ontario, which is only a two-mile journey through the Detroit Windsor Tunnel. This is key, because Tesla is thinking some Michigan folks will make that trip to check out the all-electric Model S, perhaps rattling some political cages as well.

The California automaker recently drummed up some Detroit/Windsor-area exposure by holding Model S test rides in Windsor, according to CBC News. While the act itself isn't that brazen, it's a not-so-subtle dig at the state that the Big Three US automakers call home and which recently joined the ranks of states that take a hardline approach against Tesla legally selling its vehicles directly to customers. Michigan joined states like Texas, New Jersey, Maryland, Virginia and Arizona requiring the automaker to work through third-party dealerships. Michigan Governor Rick Snyder said that House Bill 5606, "doesn't change current law at all," but if Canada all of a sudden gets a lot of positive attention for being more open and Tesla's online sales rise, perhaps some minds will change.

News Source: CBC News

Detroit Auto Show 2011 Summary

Here is a nice re-cap of this year's 2011 NAIAS show from Christopher DeMorrow who writes for Gas2.0:

Well I’m back from Detroit, refreshed, and ready to return to writing. Rather than go over every single thing I saw, I’m gonna give you a quick overview followed by a few in-depth articles later on. Let’s get to it.

First though, I want to thank Ford for flying me and my girlfriend/photographer Nicole out to the North American International Auto Show in Detroit. It was my first time, and hopefully not my last, and in addition to seeing the show, Ford showed us a whole lot more including a factory tour and test drive. I’ll get to that in a later post. Let’s talk auto show.

As you might have guessed from the title, the theme here was less-is-more. Just about everybody introduced a small car, concept, or crossover. Green was big too, and all the automakers had something green going on (except Jeep of course, who isn’t bringing their Euro-diesel to America again). Hybrids, fuel-cells, and electric cars were all on display, and there was even a green test track downstairs with a Smart EV, an AMP Equinox, the Chevy Volt, Lincoln MKZ hybrid, and even a biogas truck (that I somehow failed to get a ride in, stupid man).

It’s amazing how much the Detroit Auto Show has embraced the green theme, and the attitude of the locals I encountered was remarkably upbeat. I got a sense that even here, people are daring to hope again. The auto industry is a big part of that, but so are the people of Detroit. I saw big, empty boulevards and board-up houses, but I also saw a lot of new ideas and positive attitudes. Believe me, Detroit has a long way to go, and the rest of America isn’t there yet either. Bu as cynical as I usually am, I feel a lot better than I did a few days ago about Detroit, the American auto industry (and that includes any company that has a factory here), and America as a whole.

All in all, show and Ford Green experience was a bit overwhelming for me. I’m still learning the ropes, and while I did a lot, and saw a lot, I probably could have seen and wrote more. Even with the aid of Nicole (who took all of these pictures, by the way) the pace was hectic and it felt like I was leaving Detroit almost as soon as I got there. I’m still tired, so please, pardon the tardiness. I’ve got a lot of catching up to do.

Rawr.

Porsche: After getting a lot of positive feedback about last years 918 Spyder Concept, Porsche unveiled the much-anticipated the 918 RSR Hybrid. This single-seat hybrid racer features a Kinetic Energy Recovery System, which stores energy from braking in a flywheel system situated where the passenger’s seat would go. At the push of a button the racer can unleash this stored up energy for a quick burst of speed. The 563 horsepower V8 can be coupled with two electric motors to provide up to a total of 767 horsepower. My kinda hybrid.

Mean-lookin' little fella, ain't he? Amazing what accessories can do.

Chrysler/Fiat: At past auto shows the Chrysler displays have been underwhelming to say the least, but the Pentastar was back in a big way this year in Detroit. While they didn’t have any groundbreaking concepts to display, they did officially unveil the new Chrysler 300 (which I couldn’t get close enough to take pictures of, and by the time I came back it had been driven off the stage. Sigh.) Supposedly over $1 billion went into redesigning this vehicle, and it will soon get an eight-speed automatic transmission that Chrysler says will deliver 30 mpg when coupled with its 292 horsepower V6 engine. I was under whelmed with the looks, but the proof is in the driving, so I’ll reserve judgement…for now. Also, the Mopar-ized Fiat 500 looked hot. Yes please.

Vertrek Concept

Ford: While I already covered both the C-Max hybrid and C-Max Energi, Ford arguably had the most bombastic presentation at the show, filling up half of the Cobo Arena (where my beloved Red Wings play) with eager journalists. On stage they rolled out the new Focus Electric, Transit Connect Electric, and my favoriate concept car of the whole show, the Vertrek. With a 1.6 liter EcoBoost engine under the hood, eager, sporty looks and a lot of utility, I’m thinking this is a soon-to-come replacement for the aging Escape SUV. If they can bring this concept to production and keep it looking this good in addition to having a turbocharged engine, they really might have a winner on their hands. Also, I got some news about that new, not-for-America Ranger that gives me hope.

It's not only green, its Blue

Volkswagen: Vdub unveiled their new Passat, which looks like a Jetta that lingered too long in a candy shop. More interesting to me, though, was the Golf Blue e-Motion electric car. I like it (especially the charging location under the VW symbol on the front) but I’ll like the e-Motion even better when I can buy it.

Toyota Prius "C" Concept

Toyota: This was probably the biggest, greenest news from the whole show. Here they unveiled a “family” of new types of Prius, including a plug-in with 13-miles all-electric, the Prius “V” MPV with 50% more cargo room, and the “C” concept, a coupe-like hybrid that looked a lot more aggressive than anything else Toyota put forward with the Prius. Also, Toyota is running a concept to once and for all decide on a plural version of Prius (which in Latin means “to come before”). I selected “Prium,” because it sounded the least awkward. I’ll get into the details later.

The "Curb" Concept

Hyundai: The Korean juggernaut introduced two cars, the “Curb” concept and the soon-to-hit-showrooms Veloster. I thought the Curb looked cool, but the Veloster was underwhelming. The third door is awkward, but it is projected to get 40 mpg though I imagine at the cost of acceleration. Hyundai made it clear that even though it looked fast, it isn’t. Also, as a member of Generation Y, I felt more than a little pandered to when Hyundai marched trio of their young employees out to convince a crowd that was, on-average, twice my age, that this car suited all their needs. Yeah, social networking is neat, but when you’re reading from a teleprompter, it just doesn’t feel as genuine.

Civic Coupe Concept

Honda: Meanwhile over at the Honda booth were two new Civic “concept” cars, a sedan and coupe. They looked sharp, with upgraded interiors, though hardly a radical departure from the current crop of Civics. Honda also announced that for the first time, buyers in all 50 states can buy a natural gas powered Civic (Mr. Jo Borras covered this in detail), and the Civic hybrid will be getting lithium-ion batteries, which should improve the electric-only range.

Mercedes SLS AMG E-Cell: I don't care what you automotive allegiance, this is awesome in any color

Mercedes-Benz: 2012 bringeth the Mercedes SLS AMG E-Cell, an all-electric supercar with 649 ft-lb of torque, a 0-60 time of about 3.7 seconds, and zero emissions. Badass. Mercedes hasn’t said what the range or charging time is, but who cars? Look at this monster. Also, Mercedes is one of the few brands to announce that they are going to bring a diesel car to the United States, the S350 Bluetec. With 455 ft-lbs of torque on tap, the large sedan still manages to get 20 mpg city/31 mpg highway, even with all-wheel drive. Also from the big M-B was the B-class F-cell, a fuel-cell car that can go about 240 miles on a tank of hydrogen. It will be getting a lot of fil-ups though, as it is heading on a world-spanning journey, leaving Germany later this month.

The new not-Aveo Chevrolet Sonic; I see potential, don't yoiu?

Chevrolet: I don’t think anybody will defend the Chevy Aveo. So GM has ditched the name and debuted two new cars called the Sonic; one hatchback, one sedan. The hatchback looks awesome, and the Z-spec Concept (missed it) hints that GM has sporty aspirations for this car. The sedan? Meh. Not so exciting, but GM is heading in the right direction with this small car I think, and it’ll give the Fiesta a run for its money methinks.

Tesla Model S body-in-white

Tesla: No big news from Tesla, but they did have a body-in-white Model S sedan on display. The Model S is slated for sale in 2012 at a price of about $57,000.

That just about covers all the press conferences I was able to make (although there was some stuff I’d really have liked to see). That pretty much covered my entire Monday. On Tuesday, Ford took me, and about 100 other bloggers that they flew in, on a tour of their Rouge factory, as well as a test drive in some of their new cars and I even got a crack at their VITTREX driving simulation machine. I’ll cover all of this soon, soon, soon. I’m snowed in with nowhere to go (got my errands down during the worst of the storm, yay Jeep) so I might as well write. Stay tuned!