Sonangol China oil scheme: Billions 'diverted' in Angola

A syndicate founded by well-connected Cantonese entrepreneurs and their African partners, including Sonangol's chairman and tipped-to-be next President of Angola Manuel Vicente, may have taken control of one of China's most important trade channels and diverted billions of dollars to a few dozens of pockets, an article on The Economist suggests.

'Operating out of offices in Hong Kong’s Queensway, the syndicate calls itself China International Fund or China Sonangol. Over the past seven years it has signed contracts worth billions of dollars for oil, minerals and diamonds from Africa. These deals are shrouded in secrecy. However, they appear to grant the Queensway syndicate remarkably profitable terms. If that is right, then they would be depriving some of the world’s poorest people of desperately needed wealth. Because the syndicate has done deals with the regimes in strife-torn places, such as Zimbabwe and Guinea, it may also have indirectly helped sustain violent conflicts', the British magazine accuses.

'In short, it looks as if the fortunes of entire African countries depend to a significant degree on the actions of a little-known, opaque and unaccountable business syndicate', the article suggests.

Cold war friendships

The syndicate was reportedly built on links forged during the cold war between a Chinese national named Sam Pa (born Xu Jinghua) and the African counterparts he met at a Soviet academy in Baku (also attended by Angola's President Dos Santos). Sam Pa is believed to exert control over the syndicate through Veronica Fung, rumoured to be a member of his family. 'She controls 70% of a core company, Newbright International. The two frequently travel in Africa, using the syndicate’s fleet of Airbus jets. They are said sometimes to bypass customs', The Economist tells.

The remaining 30% of Newbright is controlled by the daughter of a Chinese general, Lo Fong Hung, married to Wang Xiangfei, a well-connected banker. 'Although the Queensway syndicate has sometimes been suspected of being an arm of the Chinese government, there is little evidence of that', the magazine states.

'Indeed, it has often been the butt of criticism from Chinese officials. More likely it was set up to take advantage of a new strategy by the Chinese government, known as the “going out” policy', is read on the article.

Much promised...

Sam Pa teamed up Hélder Bataglia, a Portuguese trader who had grown up in Angola and had links to Latin America, to invest both in Africa and South America. While contacts with Argentina and Venezuela turned out to be fruitless, the syndicate signed several deals with African countries like Angola, Zimbabwe and Equatorial Guinea, to trade minerals for infrastructure — 'in return for commodities, Chinese contractors would build housing and highways', The Economist explains.

In late 2004, Pa travelled to Angola and reportedly persuaded the Angolan elite to channel the country's growing oil exports to China through a new joint venture, called China Sonangol. Mr Vicente, boss of Angola’s Sonangol, reportedly became CS's chairman. President Dos Santos son is rumoured to be a director at CS as well. Contracts, signed in 2005, gave the company the right to act as 'a middleman between Sonangol and Sinopec, one of China’s oil majors'.

'China Sonangol threw itself into the business, according to Angolan oil ministry records and applications for bank loans backed by oil shipments. The official statistics are incomplete, but good sources have concluded that almost all of China’s imports of oil from Angola—worth more than $20 billion last year—come from China Sonangol. By contrast, China’s state-owned oil companies have no direct interest in Angolan oilfields, one of their two biggest sources of crude. Their names do not show up on the map of concessions'.

'By 2009 the Queensway syndicate spanned the globe from Tanzania and Côte d’Ivoire to Russia and North Korea and on to Indonesia, Malaysia and America. It had bought the JPMorgan Chase building at 23 Wall Street in New York'.

...little done

At the same time, Angola and Sonangol are rumoured to have lost millions while dealing with China through the Hong Kong-based company: 'The terms under which China Sonangol buys oil from Angola have never been made public. However, several informed observers say that the syndicate gets the oil from the Angolan state at a low price that was fixed in 2005 and sells it on to China at today’s market prices. The price at which the contract was fixed is confidential, but Brent crude stood at just under $55 a barrel in 2005; today it is trading above $100. In other words, the syndicate’s mark up could be substantial. Over the years, considering the volume of oil that is being sold to China, its profit could amount to tens of billions of dollars'.

According to data from the IMF and the World Bank quoted by The Economist, 'billions of dollars have disappeared from Sonangol’s accounts'.

While Dos Santos, Manuel Vicente and other Angolan, Chinese and Portuguese individuals are accused by The Economist of making billions out of the Queensway scheme, Angola signed a 'bad deal'. Six years after the syndicate arrived in Luanda, more than 90% of the residents of the capital remain without running water and most of the much promised infrastructure hasn't been built.

Dos Santos, Vicente and other mentioned individuals have reportedly refused to talk to The Economist. In Angola, Portugal and China there was little - if any - coverage or reaction to the article.

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Wikileaks cables cast doubts on BYD

From Reuters: An ordinary American investor would probably not put money into a foreign electric car start-up suspected of openly copying competitors, let alone one whose franchised dealers occasionally put other companies' logos on its own vehicles.

But Warren Buffett is no ordinary investor, and China's BYD is no ordinary company.

At the depths of the financial crisis, Buffett put $232 million into BYD Co. Ltd. (1211.HK), taking a 9.9 percent stake in the nascent Chinese auto business. Lest there be any doubt of the relationship, BYD showrooms are adorned with giant pictures of Buffett shaking hands with Chairman Wang Chuanfu.

More than any winning presentation at the Detroit Auto Show, more than any statistics or innovations, Buffett's imprimatur put BYD on the map, instantly making it the most serious Chinese contender among those seeking to sell an all-electric car in the U.S. market.

But diplomatic cables revealed by WikiLeaks and provided to Reuters by a third party, as well as interviews with industry consultants and executives who have examined the company's operations, raise a number of questions about the fledgling carmaker. Among other things, they describe a record of stealing designs from rivals, using those savings to undercut competitors on price and scrimping on safety.

"While BYD has certainly achieved a measure of success based on a business approach of copying and then modifying car designs just enough to convince Chinese courts that the company has not infringed on patents, it is far less certain that foreign courts will be as sympathetic," Guangzhou Consul-General Brian Goldbeck wrote in an October 30, 2009 cable that was unclassified but marked for U.S. government eyes only. It was submitted just days after BYD shares hit a new peak, driven by Buffett's backing.

BYD's questionable behavior went beyond copying designs, though. According to the consulate, the company also sold some vehicles almost at cost to boost its market share and may have advertised safety ratings for one model it did not have.

The scorching assessment of BYD by U.S. officials carried the title, "BYD seeks to 'Build Your Dreams' -- based on Someone Else's Designs." Nothing in the consulate's cable describes the motivation for the secret review of the Chinese upstart, although it notes that Buffett's bet had put BYD in the spotlight and allowed it to be seen as "one of the most promising carmakers of the future." The State Department did not respond to request for comment on the cables.

It is true that analysts view some of BYD's behavior as broadly typical of the Chinese auto industry, particularly the meticulous copying of better-known international cars. Yet analysts and industry experts in the United States say even in that context, BYD stands out, and there are questions about whether the company's much-ballyhooed -- and oft-delayed -- e6 all-electric car will ever make it to the U.S. market.

Micheal Austin, the vice president of BYD America, defended the company, its track record and the promise of its battery technology that made Buffett a believer.

He said in an email: "So where is the true technology and intellectual property? -- is it in wrapping of piece of sheet-metal around a car? or is the genius in creating a vehicle with ZERO emissions? Zero, Nada, Zip -- no noise, no smell, no smog. A vehicle that does no harm to the environment and can sell in Shenzhen China for $10,800 (after Chinese National and local incentives) -- that is genius!"

"No one can match the technology in that. Should 'they' be worried, yes. Will 'they' complain that 'Chinese' cars follow World design trends and follow design best practices? Yes," Austin said in the email.

"BYD's business and intellectual property practices in China, as well all places of the World, are compliant with local and international requirements and regulations. If there are factual complaints from (other automakers), we work hard to resolve them," he said.

Buffett did not respond to a request for comment made via his assistant, who handles his press inquiries. A spokeswoman for Buffett's MidAmerican Energy unit, which controls the investment, said "we do not speak or comment on behalf of BYD."

BAD BET?

Buffett owns 225 million shares of BYD, which were worth $1.18 billion on December 31, 2010, according to his late-February annual letter to shareholders.

On paper that looks good, as it would mean his initial investment appreciated five-fold in just over two years. The reality, however, is far different. BYD's value on Berkshire's books was just under $2 billion at the end of 2009, meaning he'd lost 40 percent on his stake in what was a very strong year for markets otherwise.

Buffett made no serious mention of BYD in this year's letter, other than to note the company would have a chance to show off at the April annual meeting of his holding company Berkshire Hathaway (BRKa.N). The 2009 letter gives only passing mention of the "amazing Chinese company" and its products.

For Buffett it was an unusual investment. In an April 2009 interview with Fortune magazine, Buffett said his partner Charlie Munger talked him into the deal on the strength of his impression of BYD Chairman Wang, whom Munger described as a combination of Thomas Edison and Jack Welch.

If the investment does ultimately sour, though, it would be a black mark for the executive who spearheaded it: David Sokol, chairman of Berkshire units MidAmerican and NetJets.

Sokol is generally held to be one of the four candidates to succeed Buffett as Berkshire's chief executive, and most consider him the frontrunner. And Sokol has also put his face prominently on the BYD deal, meeting with the industry and the press at the 2009 Detroit Auto Show to tout BYD's electric cars as the wave of the future.

The company's appearance on the main floor of the Detroit auto show was the first by a Chinese automaker and came at a time when Detroit automakers GM and Chrysler were sputtering on government life support.

"Right now, we're just limited by resources," Wang said in January 2009 as he stood outside BYD's red-and-white themed booth illuminated with the company's ambitious motto: "Build Your Dreams."

Wang has certainly built his. A former government researcher, he founded BYD in 1995 with $300,000 of money borrowed from a family friend, and within five years was the world's largest maker of cell phone batteries. Once China's richest man, Wang's goal is no less than becoming the world's largest automaker.

With that angle in mind, Wang courted Sokol, knowing that he had Buffett's trust.

"I don't know a thing about cellphones or batteries," Buffett admitted to Fortune in the 2009 interview. "And I don't know how cars work. Charlie Munger and Dave Sokol are smart guys, and they do understand it."

VIBRATING MOLARS

Sokol's attachment to the deal makes sense, given MidAmerican's commitments to renewable energy and the touted promise of BYD's battery technology, as first seen in its F3DM plug-in hybrid with range-extending gas engine.

BYD's pitch for its battery technology was so strong that the consulate, despite its concerns about the company's behavior, was willing to consider the possibility the battery itself was the real deal.

"The answer to climate change may be as simple as the chemical formula of a lithium iron phosphate battery, according to one ambitious south China company," consular section chief Michael Jacobsen said in a January 2010 note to the State Department.

The only catch is that the batteries have to work.

"During a recent visit to BYD headquarters in Shenzhen, a top manager told (an embassy official) that sales of the F3DM had been slow, with only around 100 vehicles sold to date, mostly to the municipal government," the cable said, with an added note: "Media reports speculate that slow sales may also be an indication that the F3DM's battery performance falls considerably short of expectations."

If the batteries are not all they are cracked up to be, it raises a question about the fundamental point of Buffett's investment.

"Whether or not they can manufacture their own cars isn't relevant to us, because we see their real expertise is in the development of the batteries, the motors, the control systems for that," Sokol told Reuters in January 2009.

"That's not to say that they can't make a nice car, but a lot of people can make a nice car. The breakthrough from our perspective is the battery technology."

Americans curious to see for themselves have only one option at the moment: a fleet of 10 F3DMs the Housing Authority of the City of Los Angeles signed a deal for last year. The arrangement is not a formal lease, but a cost-sharing program that BYD's Austin estimated cost the authority somewhere between $300 and $400 per car per month.

The housing authority did not return multiple calls for comment over a period of days. But early reviews were less than positive.

"It would be easy to chuckle at the F3DM's minor flaws -- the wobbly storage compartment between the front seats, subpar floor mats, squishy handling. But the build quality and materials seem perfectly adequate for utility-oriented Americans," the New York Times wrote on February 20 after a test drive.

The paper's assessment of the F3DM's dual-mode engine, and particularly the process of switching from electric power to gas, was even tougher.

"The steering wheel vibrates. The dashboard hums. You feel the vibration in your molars."

BYD's Austin told Reuters in a follow-up interview the Times story was actually useful, in that it helped him make the case to engineers in China that BYD needed to do a better job of dampening noise for the U.S. market.


'COPYING EVERYTHING'

The Times reporter's experience with the F3DM's workmanship goes to the heart of one of the most frequent criticisms of BYD, and of Chinese automakers in general: that their cars are simply cheap copies of other manufacturers' work.

Even in cases of active cooperation between Chinese automakers and their European, American and Asian partners, there is room for confusion on where one brand ends and the other begins.

For instance, Chinese automaker Brilliance, which has a joint venture with BMW AG (BMWG.DE), offers its own line of vehicles that rely heavily on design cues from its more famous partner. Brilliance even markets its M2 sedan as having been through the "BMVV quality control process" -- one letter away from the BMW brand -- and says its car is "known as the Chinese BMW 3."

Paul Newton, London-based analyst for IHS Automotive, said that all foreign companies doing business in China know the lay of the land. Even if they sense unsavory behavior, he said, they consider it a part of the price for doing business in the world's largest car market.

"Until the law in China recognizes some kind of international intellectual property issues, companies will always be up against it. But for the most part, (Western company officials) shrug their shoulders and say it will cost us more not being involved than being involved, so let's get involved," said Newton.

In the case of BYD, the automakers most frequently cited as "inspiration" for its cars include Toyota Motor Corp (7203.T) and Honda Motor Co (7267.T). Both are aware of the issue, though both declined to comment on it for the record.

One Honda source, who spoke on condition of anonymity, cited BYD's F3 model in particular as a known copy with Toyota Corolla and Honda Fit attributes.

"The design is such that anyone looking at the car would know it's an imitation but it's not as if carmakers are securing design rights for each individual part, so in reality it's very difficult to bring the issue to court," the source said.

Austin said he was not aware of even a single complaint for intellectual property violations.

"In China it's the standard way of doing business," he said.

The company has also used price as a lever to beat some of those same companies. The Guangzhou consulate reported that, according to one of its sources, BYD sold one model for a profit of less than $146 per car. Ironically, for almost that same amount BYD dealers would replaces all of the BYD "marks, symbols and model plates" with those from Toyota or other manufacturers, the consulate said.

Austin acknowledged the practice has happened at dealerships, which are franchised and not company owned.

"There have been isolated incidences where dealers have done that," he said. "For branding issues we felt uncomfortable about that, probably as uncomfortable as Toyota would."

Nonetheless, BYD continues to attract new partners. Just last week it said the Chinese government had approved its tie-up with Daimler AG (DAIGn.DE) and that engineers from the German luxury carmaker were already at work on a joint project in Shenzhen.

For Daimler, a late convert to electric car technology, the venture amounts to a low-risk way to hedge against regulations that could require all automakers to offer EVs in China because of government policy intended to reduce oil consumption.

One person familiar with Daimler's side of the talks said that the German automaker went into the deal well aware of the cloud around BYD.

"Nobody gets so big so quickly in the Chinese market without some casualties," said the person. "It's systemic. The Chinese are famous for copying everything."

DOES IT WORK?

While BYD is known for older copy-based models like the F3, its e6 is the next generation. It's an all-electric vehicle that, according to BYD, goes farther and charges faster than competing models from the likes of Nissan (the Leaf) and GM's Chevrolet unit (the Volt).

But skeptics remain wary of the carmaker's claims.

In May 2009, Volkswagen AG (VOWG_p.DE) considered a tie-up with BYD but pulled back after some due diligence. A VW spokesman could not be reached to comment on those talks.

Among the concerns raised by potential BYD partners: auto suppliers complained that BYD's strategy of making everything on its cars amounted to a bid to steal their technology, according to a consultant who was brought in to study BYD as established automakers kicked its tires.

BYD, U.S. suppliers complained, would ask for an initial order of parts like door panels, then drop the business, reverse engineer the part and use it on upcoming models.

In addition, BYD was "nowhere near meeting safety standards" to export to the United States or Europe, the consultant found, and its quality was spotty in the Chinese market. "If you shut the doors too hard, they fall off," the consultant said, asking that he not be named.

The consulate noted those safety concerns as well. The October 2009 Guangzhou cable mentioned a dispute over the safety rating on BYD's F0 model -- the company said it had a five-star rating from a consumer association, while that same association said it had not even tested the car. The consulate also noted a tendency toward cost-cutting through the use of plastics and lighter steel grades, all of which cut weight and expense but make the car more vulnerable.

"They passed all the U.S. safety crash test standards," Austin said of the F3DMs now being used in California.


SLOWING SALES

The U.S. launch for the e6 has slipped repeatedly, and is now aimed for the first quarter of 2012. But Austin conceded there was no rush, particularly as the company continued to learn what American consumers want and demand from a car versus Chinese expectations.

"I'm not going to let them launch the wrong cars. It'll be a huge nightmare from a PR and marketing standpoint, and the truth is, the market is China," he said. "If we have a branding issue, it impacts the global sales. BYD is not in a rush to come to the U.S. market."

While consultants and executives debate whether BYD will ever make it to the United States and how it might do if it gets here, there are signs it may be having some sales troubles on the homefront.

For all of 2010, BYD reported having sold 480 of its F3DM plug-in hybrids and E6 electric taxis. By contrast, GM had over 600 Chevy Volts as of February, counting just two months of sales in 2010 in the U.S. market.

The disappointing BYD electric car sales come despite generous government incentives in China. The F3DM, for instance, carries a government subsidy of about 47 percent of its purchase price.

"BYD makes a lot of claims and not a lot of them come true," said Newton of IHS.

More recently, BYD's February sales fell by half from January and nearly a quarter from a year earlier. Analysts said its low-end models were less competitive than they used to be and higher-end models were not gaining sales momentum, even with price cuts in mid-February of up to 20 percent.

Sales also fell 15 percent in January, even as the Chinese auto market was growing in the double digits at that time.

"They are in recovery mode, working on the quality of the vehicles, working on the dealership network and most importantly trying to prove to the world that they are in fact a genuine producer of electric vehicle(s). That's why Warren Buffett had invested and that's why everyone is watching," said Michael Dunne, president of consultancy Dunne & Co.

The sales declines are nonetheless showing up in BYD's stock. Even with a sharp bounce since the last part of February the shares are still down nearly 10 percent this year, suggesting that Buffett's investment has slipped below the psychologically important $1 billion mark.

Falling sales at home would be bad enough, but BYD's aspirations are global. If the company does make it to the world stage it could face a whole different set of problems, as the Guangzhou consulate noted almost two years ago.

"Especially as the company eyes overseas markets and gears up to export its models, including electric cars, to the United States, the likelihood of legal challenges related to intellectual property and safety or liability issues would appear to loom larger and larger on the horizon," the consulate said.

The consulate's warning about lawsuits could serve as a caution to the 80-year-old "Oracle of Omaha." Though Buffett is a long-term investor, he may not want the hassle -- or the headlines -- of holding a stake in a company that risks years of protracted litigation. Otherwise, he may be reminded of his words in his 2008 letter about another bad deal, this time the acquisition of shoe maker Dexter.

"To date, Dexter is the worst deal that I've made," Buffett said. "But I'll make more mistakes in the future -- you can bet on that."

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China quer autocarro eléctrico made in Portugal

O grupo industrial chinês BYD (Build Your Dreams) está interessado em Portugal. "Queremos vender automóveis eléctricos no mercado português, mas também estamos abertos a montar um projecto industrial destinado a produzir os nossos autocarros eléctricos", declarou o director-geral sénior da BYD Henry Li, à margem do Salão Automóvel de Genebra, ao semanário Expresso.

"Creio que há possibilidade de estudarmos formas de cooperação com unidades industriais portuguesas para fabricarmos autocarros no mercado português", adiantou.

"A actual política promovida pelo Governo português incentiva a utilização dos veículos eléctricos, o que torna Portugal num dos países mais atractivos da Europa ao nível da rede de infraestruturas para a mobilidade eléctrica", justificou o responsável da BYD, referindo-se à rede Mobi.e. Portugal é um dos únicos países que já dispõe de um sistema uniformizado e de acesso universal de carregamentos eléctricos, contando ainda com um pacote de incentivos fiscais à compra de carros eléctricos.

A chinesa BYD comercializou 520.000 veículos convencionais em 2010 e mais de mil unidades eléctricas no gigante asiático, e é um dos grupos industriais que mais aposta a nível mundial no crescimento do sector eléctrico.

BYD chega a Portugal em 2012

De acordo com o Diário Económico, os carros chineses da BYD, fabricante automóvel representada em Portugal pela Hipogest, vão entrar no mercado europeu em 2012. "O veículo e6-Eco conseguiu a homologação na Europa e chegará a Portugal no próximo ano", revelou Duarte Guedes, administrador da Hipogest.

Numa fase inicial, a empresa liderada por Hipólito Pires irá avançar com alguns projectos-piloto com câmaras municipais e empresas como a EDP, que já contactou. "Os veículos eléctricos estão na ordem no dia. Como tal, é o momento certo para apresentarmos a marca ao mercado nacional", reforça o administrador da Hipogest.

Um dos modelos na calha é o E6-Eco 2012, um ‘crossover' de cinco lugares, que está equipado com uma bateria de ferro da BYD e tem uma autonomia prevista de 300 quilómetros em estrada urbana. Para carregar este veículo eléctrico são precisos apenas 40 minutos, com um carregador rápido de 100 KW.

Além deste modelo, aguardam ainda "autorização" para andar nas estradas europeias os S6DM SUV, o primeiro todo-o-terreno eléctrico com tracção integral, e o e-Bus K9, um autocarro movido a electricidade com bateria de ferro.

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Coda aims to sell 50.000 electric cars by 2015

From Reuters/Cnet: Electric car start-up Coda Automotive aims to sell 50,000 vehicles by 2015, mostly in the United States, chief executive Phil Murtaugh told reporters today.

Coda, like Tesla Motors and Fisker Automotive, is one of several new companies that are banking on mass-market adoption of electric vehicles. Major automakers including Nissan Motor and General Motors are also racing to launch electric cars.

Coda is making its first vehicle, the Coda EV, in China in partnership with Hafei, which is controlled by state-owned China Changan Auto, and is scheduled to begin selling it in the United States in the second half of this year.

It will be sold to fleet buyers in California initially and slowly expand into other states, Murtaugh told reporters in Beijing.

"Once we start selling to fleets and get a feel of how we are doing, we will start selling to consumers. Our plan is to go slowly," he said.

Coda has set a target to sell 10,000 to 14,000 units in the first 12 months after its launch.

The Santa Monica, Calif.-based company also has a battery joint venture with Lishen Battery Power.

The company had in January tapped Murtaugh, a former GM and Chrysler executive with extensive experience in China, as its new chief executive.

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Táxis eléctricos entram ao serviço na China

Do Jornal do Brasil: Táxis elétricos já estão cruzando as ruas de um dos países mais poluentes do mundo, a China, informou a agência EcoDesenvolvimento. Dos 5 mil veículos verdes previstos para entrarem em circulação até 2012, 50 já estão transportando passageiros pelo distrito de Yanqing, perto de Pequim, como afirmou a Xinhua, agência oficial da China.

A economia que estes táxis elétricos trarão será da quantia de US$ 4,5 mil em combustível de veículo, gerando uma economia de cada unidade equivalente à plantação de 1,1 mil árvores, segundo informaram as autoridades do trânsito chinês .

O projecto em marcha em Yanqing, subúrbio de Pequim, é apenas um passo no plano chinês de incentivo aos carros elétricos. A China confirmou que pretende lançar 5 milhões destes carros até 2015, e que, já em 2020, esses 5 milhões estarão nas vias dos país.

Para carregar a bateria de todos esses carros, o governo estima implantar ainda cerca de 10 mil postes carregadores de energia. As autoridades prometem estimular também os consumidores a comprarem os veículos híbridos ou elétricos, de tecnologias limpas, para tentar reduzir as emissões de CO2 dos milhões de carros de combustível que circulam por essa nação.

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CODA to produce sedan in China

A startup California developer of electric cars said Wednesday its first model will be manufactured in China and go on sale in the United States this year.

CODA Automotive Inc.'s four-door sedan will be produced by a Chinese partner based on one of its models that has been adapted for electric drive and to meet U.S. safety standards, CODA's CEO Philip F. Murtaugh told the Associated Press. He said CODA will produce batteries in China with another partner and supply technology and engineering skills.

CODA plans to begin sales in California this year and expects to sell 10,000 to 14,000 vehicles in its first 12 months, said Murtaugh, a former chairman of General Motors China who joined Santa Monica-based CODA last month.

"I'm very confident we will launch our vehicle in the second half of this year," he said in an interview with a group of reporters.

If it can meet that deadline, CODA could become one of the first companies to sell a Chinese-made car in the United States following announcements by several brands of plans for such sales. CODA has postponed previously announced sales timelines, but Murtaugh said it should be able to stick to its latest schedule.

CODA's plans and the unusual structure of its manufacturing partnership expand on fast-growing ties between auto companies in the United States and China, the world's two biggest vehicle markets.

Global automakers and ambitious startups are racing to develop all-electric and hybrid cars as governments offer tax breaks and subsidies to promote alternative energy in hopes of reducing surging demand for oil.

Nissan Motor Corp.'s Leaf became the first all-electric model on the U.S. market in December. It competes with General Motors Co.' Chevrolet Volt, which uses an electric battery and a small gasoline motor for an additional charge.

A Chinese automaker, BYD Co., began testing its F3DM plug-in hybrid in Los Angeles in December. BYD says it plans to sell its K9 electric bus this year in the United States and start consumer sales in 2012.

CODA says it has raised more than $200 million from investors, including $76 million in its latest round of funding announced in January.

Murtaugh said CODA believes it can compete with bigger, established rivals such as Nissan because its battery technology delivers a longer driving range and more consistent performance at low outdoor temperatures that can sap a charge. He said that could help to overcome a key obstacle to winning widespread public acceptance of electric vehicles -- "range anxiety," or the fear of running out of power.

CODA's battery can carry a 34 kilowatt charge, versus with 24 kilowatts for Nissan's Leaf, with a comparable increase in range, Murtaugh said.

"We won't be perfect but we will certainly be class-leading," he said.

The sedan is based on a vehicle made by Chang'an Hafei Auto, a subsidiary of Chang'an Auto Co. in northeastern China. Batteries are being manufactured in a joint venture with Tianjin LiShen Miles Power Battery Systems Co.

CODA also hopes to sell its propulsion systems to Chinese and other automakers and for use in non-vehicle industrial power storage, Murtaugh said. He said its Chinese joint venture is working on 28 projects to show to 12 to 15 companies, both Chinese and foreign, how its technology might be applied to products made for them.

In California, CODA's sedan will retail for $44,900, or $32,400 after a $7,500 federal tax credit and a $5,000 state government credit, said Forrest Beanum, CODA's vice president for communications.

Major U.S. rental companies Hertz Corp. and Enterprise Rent-a-Car say they will offer CODA electric sedans for rent.

CODA and Chang'an Hafei are discussing whether the Chinese partner might sell a version of the electric sedan in China, Murtaugh said.

The Chinese government has targeted electric cars in industrial development plans that call for China to create its own profitable technologies.

The Ministry of Industry and Information Technology said last year Beijing will invest 100 billion yuan ($15 billion) over the next decade to make China a leader in alternative energy vehicles.

In the United States, CODA says it might open a battery factory in Ohio if can obtain $400 million in aid from the U.S. Department of Energy.

Among other electric car makers, Irvine, California-based Fisker Automotive says it will start selling its luxury Karma model in China this year through a local partner.

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Ghosn says Renault spies 'leaked electric car strategy', not technological secrets

From the AFP: Alleged spying at French car maker Renault targeted its business strategy for electric cars rather than technological secrets, its chief executive said in an interview published Sunday.

"We have come to the conclusion that what got out was not technological information. It could be information on our economic model," the company's boss Carlos Ghosn was quoted as saying by French weekly Le Journal du Dimanche.

"What was targeted was our strategy for the electric cars," he added in the interview, saying that Renault was the only company making all three key elements for the electric car -- batteries, motors and chargers.

Renault and its Japanese partner Nissan have staked their future on electric vehicles and plan to launch several models by 2014 to meet rapidly rising demand for more environmentally friendly methods of transport.

They have invested four billion euros in the programme.

Ghosn was speaking out for the first time since the affair broke two weeks ago.

Renault has sacked three top managers over alleged industrial espionage and has launched legal action. The three executives have said they are suing over the allegations.

Ghosn said Renault had launched an internal probe in August but waited until this month to alert the authorities because "we had to do preliminary research ourselves to get an idea how serious the affair was."

He said he was "surprised and shocked" by the affair but insisted that in investigating it "we have been irreproachable under the law."

He declined to give a view of who might have benefited from the leaking of strategic information. Media reports and analysts have said Chinese companies are suspected but the Chinese government angrily denied this.

"We are waiting for the results of the investigation (launched by the French secret services) which I am told should last several months," Ghosn told the newspaper.

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Recharging posts for electric cars put into use in Hainan, China

From Xinhua: The first group of four recharging posts for electric vehicles were installed and made operational on Thursday in south China's island Hainan Province as part of the central government's promotion throughout the nation of new energy vehicles.

The recharging posts were erected on Haifu Road in the provincial capital Haikou by Hainan Power Grid Corp., a subsidiary of China Southern Power Grid Co., Ltd. (CSG).

The recharging posts will mainly be used for a government fleet of 30 electric cars, which will take to the street during the first half of this year, said Hu Bin, a recharging station program director with the Hainan Power Grid Corp.

Haikou was singled out in May 2010 as one of the 25 pilot cities in the country for the promotion and operation of electric vehicles.

Construction of recharging facilities began in November last year by the power company.

According to an electric vehicle development plan by the Haikou municipal government, the city will have installed six recharging stations, along with 759 recharging posts by 2012 to serve 1,050 new energy vehicles, including 400 electric vehicles.

The Chinese government introduced policies in 2010 to boost the development of new energy vehicles, including electric vehicles, hybrid electric vehicles and fuel cell vehicles.

According to a development blueprint released in September last year, China aims to have more than 500,000 new energy vehicles on the road by 2015 and 5 million by 2020.

In the meantime, China will build 4,000 electric vehicle charging stations over the next five years and another 6,000 before 2020.

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5 electric vehicle predictions for 2011 by PluginCars.com

PluginCars.com's John Gartner is not alone when he says that 2011 will be the year of the revenge of the electric car, but he reveals some interesting key trends identified by Pike Research in this white paper. Some can be summarized in these 5 electric vehicle predictions for 2011. Having worked in the media industry, I cannot help myself but laugh at #5. So true.

1 - The majority of people who drive a plug-in vehicle won't own it. Thanks to car rental fleets, taxis, and car share programs, getting people into plug-in vehicles will be more influential in the long run than getting them to sign on the dotted line.


2 - Automakers will get push back from EV owners about how long it takes vehicles to fully charge. Most vehicle charging will be done overnight, enabling owners to wake up to a fully charged battery without concern for the rate at which it was charged. But because automakers decided to take the cautious (and less expensive) approach of installing onboard charging equipment that provides a maximum of 3.3 kW to the batteries, a full charge will take longer than necessary leaving some consumers feeling like they overpaid for charging equipment.


3 - The most popular selling EVs won't have four wheels. Electric two-wheeled vehicles, including bicycles, scooters and motorcycles are a huge global market that will continue to overshadow electric passenger vehicles for the foreseeable future. China is by far the largest market, with more than 48 million sales projected. In North America, the sale of two-wheeled EVs will outnumber passenger PEVs by approximately 8:1 in 2011, but the gap will be narrowed to close to 2 to 1 by 2015 as passenger vehicles sales will grow much more quickly.


4 - Many EV charging stations will spend the majority of their time idle. The strategy of installing a network of charging equipment may be good psychologically for EV owners and the automakers, but the business benefit for the owners of charging equipment will be lacking during the early days of EV sales. During 2011 and 2012 there will not be sufficient penetration of EVs for charging spots to see many visits–if any—per day.


5 - Somebody somewhere will have a bad EV experience and the media will overreact. The first time a driver is left "stranded" by running out of charge will be cause célèbre for the doubters to highlight the superiority of gas cars. The potential also exists for EV owner frustration if the promised all-electric driving range advertised is not realized. Heavy-footed drivers and trips taken in extreme weather will substantially cut into driving efficiency, but that should not be a surprise or especially noteworthy.

Read more of it and get the white paper at PluginCars.com

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China's BYD to roll out electric vehicles at Detroit auto show

Tweet this post  From the Detroit News: BYD Co. Ltd., one of the most widely-watched of China's emerging automakers, plans to unveil two advanced technology vehicles at the Detroit auto show next month: an all-electric 2012 e6 crossover, and a S6DM hybrid.

BYD, a battery-maker that branched out into the auto business, said today that it also will display solar panels, home energy storage units and other environmentally friendly products and technologies in an exhibit titled "Green City Solutions."

BYD, which counts U.S. billionaire Warren Buffet among its investors, is one of China's most closely observed automakers because of its battery expertise. The company plans to export vehicles to the United States in the near future.

The BYD e6Premier, equipped with an iron-phosphate "FE" battery, has a 186-mile range on city roads and a top speed of 87 miles per hour. It takes 40 minutes to fully charge the e6 using a 100-kilowatt fast-charger and six hours on a standard outlet.

BYD's S6DM SUV can travel 38 miles on electric power alone and more than 310 miles when engaging a 2-litre gas engine. A 10-kilowatt electric motor is paired with a six-speed dual-clutch transmission propelling the front wheels, while a powerful 75-kilowatt electric motor powers the rear wheels.

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Beijing to cut new cars by two-thirds to battle traffic

From the BBC/Reuters: New rules have taken effect in China that restrict car purchases in an effort to combat serious traffic problems in the capital, Beijing.

City authorities will allow only 240,000 vehicles to be registered for 2011 - one-third of this year's total.

Car buyers have been swamping dealers in anticipation of the new rules, which will still leave about five million cars on the road in the capital.

Traffic and air pollution in Beijing is among the worst in the world.

Beijing officials are trying to balance the desire of a growing middle class to have the convenience and status of car ownership, with a huge congestion problem.

Officials said the new rules would not solve the full extent of the city's problems, only slow the down the rate at which they are worsening.

"It will be difficult to dramatically improve the traffic situation in a short time," said Liu Xiaoming, deputy director of the Beijing Traffic Management Bureau.

"But it can slow down the pace of worsening traffic congestion."

Car registrations will be allocated by a license plate lottery system from Friday.

Under the new rules, government departments will not be allowed to increase the size of their fleets for five years.

About 750,000 new cars appeared on Beijing's streets this year, raising the total of registered vehicles for the city 4.8m.

China overtook the US as the world's biggest car and van market in 2009, with 13.6 million vehicles sold within the country.

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GM China unveils electric concept Sail

Tweet this post From the International Business Times: General Motors China introduced an electric concept vehicle Sail at the 2010 Guangzhou Auto Show on Tuesday. Under the theme of "Drive to Green and Leading Innovation," it is showcasing 23 production and concept vehicles. Among the products on display are the Sail electric concept vehicle, which is making its global debut, and the Chevrolet Volt extended-range electric vehicle, the car maker said.

The Sail electric concept vehicle is powered by a lithium-ion battery with maximum output of 65 kW and maximum torque of 220 Nm. It has a maximum speed of 130 km/h and can go up to 150 kilometers on a single electric charge. It uses regenerative braking to produce additional energy.

"GM is committed to delivering a range of advanced propulsion technologies and offering a portfolio of solutions that will allow our customers to choose the vehicle that best meets their needs," said Kevin Wale, President and Managing Director of the GM China Group. GM's expertise in batteries, electric motors and power controls will enable us to provide the best possible choices when it comes to vehicle electrification technologies, he said.

The Sail electric concept vehicle was developed by Shanghai GM and the Pan Asia Technical Automotive Center (PATAC) in Shanghai, the carmaker said.

Earlier last month, China had said annual production of electric vehicles will hit one million units by 2020 and become world's largest auto market for new energy vehicles, which will hold the key for development of the country's auto industry.

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Honda Eyes China's Electric Car Market

From The Wall Street Journal: The president of Honda Motor Co. said Monday the company is studying the possibility of rolling out electric vehicles in China, making it the latest Japanese car maker to look for potential demand in an untapped slice of the world's largest auto market.

The Japanese car maker is considering initiating a testing program in China for electric vehicles, following similar tests in the U.S. and Japan, the company said in a release.

"The chances are good in China," Takanobu Ito, Honda's president, told reporters after a news conference for an electric-vehicle test program in Saitama Prefecture, north of Tokyo.

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Off-topic: Airlines post record profits in 2010, Air China is the world's biggest airline

IATA'S chief economist Brian Pearce has announced this Tuesday in Geneva, Switzerland, that profit estimates for the airline sector have nearly doubled from the 8,9 billion dollars posted in September to 15,1 billion dollars. Stable oil prices and passenger number growth have brought the sector back from the grave.

2011 could tell a different story, though, especially in Europe, Pearce said. But not in Asia and Latin America, where there's a bright outlook. IATA presented an updated list of the world's biggest airlines in therms of market capitalization, with surprising results. Air China gets the gold (20bn), followed by Singapore Airlines (14bn), Cathay Pacific (12bn), China Southern (11bn) and LATAM (Chile's LAN + Brazil's TAM, 11bn).

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中国新能源汽车整车销售令人失望

新能源汽车在中国的发展已有高度预期，但汽车制造商感到失望与绿色汽车的销售数字后，在该领域花费了数百万美元。

由于其体积滞销，长安汽车表示，其混合动力电动汽车混合动力汽车捷讯已经停产一年。 “该公司没有出售任何“高级行政人员被引述说，关于捷讯戊型肝炎病毒，根据在中国商业新闻在周一的报告。LINK

评论：没有网络在公共收费，财政奖励和政治支持电动车严重引入投资，这是毫无意义的动议这项业务，像中国这样的国家。但我怀疑北京将忽略的EV市场。 2011年将是一个有趣的一年那里。

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新能源汽車銷量在中國汽車製造商感到失望

開發新能源汽車的中國已經高度預期，但汽車製造商失望的綠色汽車銷售數字後，花了數百萬美元在這一領域。

由於其銷量不佳，長安汽車表示，其混合動力汽車混合動力汽車已走出捷訊生產一年。 “該公司沒有出售任何“高級行政人員被引述說，關於捷訊戊型肝炎病毒，據報導，在中國經濟新聞週一。LINK

評論：沒有嚴重引入投資在公共充電網絡，財政獎勵和政治支持電動汽車，它的毫無意義的動議這項業務的國家，比如中國。但我懷疑北京將忽略的EV市場。 2011年將是一個有趣的一年裡。

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航空公司在2010年創紀錄的利潤後，空中中國是世界上最大的航空公司

國際航空運輸協會首席經濟學家布賴恩皮爾斯的宣布本星期二在瑞士日內瓦，即盈利預期為航空業了近一倍，從8,9億美元在九月發布15,1億美元。穩定的石油價格和乘客數量的增長帶來了行業重新從墳墓。

2011年可以說一個不同的故事，雖然，特別是在歐洲，皮爾斯說。但在亞洲和拉丁美洲，那裡有一個光明的前景。國際航空運輸協會提交了一份最新的名單是世界上最大的航空公司撒姆市值，以令人驚訝的結果。中國航空獲取黃金（200億美元），其次是新加坡航空公司（140億美元），國泰航空（120億），中國南方航空（110億美元）和拉美（智利的LAN+巴西的譚耀宗議員，110億美元）。

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航空公司在2010年创纪录的利润后，空中中国是世界上最大的航空公司

国际航空运输协会首席经济学家布赖恩皮尔斯的已宣布在瑞士日内瓦，周二，这对航空业的利润估计有近8,9亿美元的一倍，在九月发布15,1亿美元。稳定的石油价格和乘客数量的增长带来了行业重新从坟墓。

2011年可以说一个不同的故事，虽然特别是在欧洲，皮尔斯说。但在亚洲和拉丁美洲，那里有一个光明的前景。国际航空运输协会提出以市值撒姆一个世界上最大的航空公司最新名单，以令人惊讶的结果。中国航空获取黄金（200亿美元），新加坡航空公司（140亿美元），国泰航空（120亿），中国南方航空（110亿美元）和拉美（智利的LAN+巴西的谭耀宗议员，110亿）之后。

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New energy vehicle sales in China disappoint automakers

From the Global Times: The development of new energy vehicles in China has been highly anticipated, but automakers are disappointed with the sales figures of green cars, after having spent millions of dollars in this field.

Due to its poor sales volume, Changan Auto said that its hybrid vehicle Jiexun HEV has gone out of production for one year. "The company didn't sell any", a senior executive was quoted as saying about the Jiexun HEV, according to a report in the China Business News on Monday.

Comment: Without a serious investiment in public charging networks, fiscal incentives and political support for EVs, it's pointless to move this business to countries like China. But I doubt Beijing is going ignore the EV market. 2011 is going to be an interesting year there.

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