EU to become free of petrol-fuelled cars by 2050

From Deutsche Welle: Europe's cities could be free of petrol- and diesel-fuelled cars by 2050, under "very radical, very ambitious" targets set out by the European Commission.

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Green industries will enjoy 'explosive' decade

From the LA Times: What a difference a decade makes. Once shunned as an industry only a tree-hugger could love, clean-tech has blossomed into an economic heavyweight, according to a report from research firm Clean Edge Inc. (click to download the report)

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Renault apologises to 'spy' managers

From the AFP: Renault publicly apologised on Monday to three top managers it fired for allegedly selling key electric car secrets to China after it emerged the French automaker may have been the victim of fraud.

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Pininfarina and Bollore sign EV deal

Italian car designer and niche producer Pininfarina has signed a deal with France's Bollore group for electric car production for Paris's Autolib project, Reuters reported on Thursday.

The deal strengthens the existing electric car ties between Pininfarina and French businessman Vincent Bollore, whom Pininfarina Chief Executive Silvio Angori would also like as an investor in Pininfarina itself

Under the contract signed on Wednesday, Pininfarina rents a plant and supplies staff for Italian car prototype company Cecomp to make 4,000 electric cars for Bollore for Autolib, which starts in October, Pininfarina said.

Pininfarina gets 14 million euros ($19.33 million) under the three-year rental contract, it said.

In December, Vincent Bollore said he was investing 100 million euros in Autolib after winning the contract to supply cars to the car-sharing program.

Thursday's deal is a key step "towards realizing future production programs for electric vehicles on a wider scale, programs which are the basis of agreements between Pininfarina and Bollore," Pininfarina said.

Pininfarina and Bollore already have a joint venture for electric cars under which Pininfarina has rights to be chosen as the producer of vehicles.

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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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Deloitte: Mass adoption of EVs still far away

Despite rising fuel prices, the mass adoption of electric vehicles (EVs) is still some distance away, is the finding of a new study by Deloitte, the business advisory firm.

According to the survey of 4,760 European consumers, only 16% see themselves as potential first movers to buy or lease an electric vehicle, while 53% say they might be willing to consider it, and 31 percent say they are not likely to consider purchasing or leasing an EV.

David Raistrick, automotive partner and head of manufacturing at Deloitte UK, commented: "There is no doubt that electric vehicles are the future of the automotive industry. However, while interest in electric vehicles is growing, with 69% of respondents willing to consider an EV today, current market offerings generally fall far short of consumers' expectations for driving range, charging time, and purchase price.

More than 80% of European consumers surveyed said that convenience to charge, range, and the cost to charge were all key considerations when buying or leasing an EV.

David Raistrick added: "Range, price and charging concerns need to be addressed. Our research shows that there are specific design targets that manufacturers must reach in order to entice car buyers.

"Three-quarters of European consumers surveyed (74%) said that before they would consider purchasing an EV, they would expect it to be able to travel 300 miles between charges - much higher than what is currently available - and 67% said the battery must take no longer than two hours to charge.

"In the UK, however, consumers consider the ability to travel at least 200 miles between charges to be the tipping point, especially in London and the South East."

"The automotive industry continues to invest in high end R&D to devise the cutting edge technology required for electric vehicles. It is clear that this innovation is a priority for car manufacturers. I believe there is potential for green vehicles to represent 10% of the new car market within 10 years, although the road to get there will be bumpy. Manufacturers face many challenges, both in terms of actual design elements, as well as changing the mindset of consumers toward electric vehicles."

The majority (57%) of respondents who say they may be willing to consider an Electric vehicle expect to pay the same or less for an EV than they do for a regular car. Only 24% of the same group say they would be willing to pay a premium. Currently, hybrids and battery electric vehicles represent a tiny fraction of total cars on the road. The adoption of all forms of green vehicles will be significantly influenced by government policies.

David Raistrick added: "For mass adoption, manufacturers will need to meet the challenge of pricing electric vehicles in line with consumer expectations, while still maximising their margins. Consumers are not likely to want to pay a high price premium for EVs. This means that incentives such as tax reductions and exemptions will be very important to the purchase decision. Just like the Government supported the highly successful car scrappage scheme, they should now be turning their attention to electric vehicles.

"However, a bright note for the UK is that it appears from our research that UK consumers are more willing to pay a premium for electric vehicles than their counterparts in other European countries."

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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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Germany not doing enough to promote EVs

From Deutsche Welle: Germany is targeting a fleet of one million electric cars by 2020. But the path forward isn’t clear, and some say the country needs to pick up the pace to protect the future of its auto industry.

Electric cars need perks if the market is ever to take off, says the German Electrical and Electronic Manufacturers' Association (ZVEI).

The association believes the best way to kick-start the electric car market in Germany is to offer incentives like the use of bus lanes to skirt past traffic, free parking in reserved spots and tax breaks.

Although the German government hopes to see 1 million electric vehicles on the country's roads by 2020, it's not doing enough to set an example, according to ZVEI. The association points to China, which aims to put 500,000 electric vehicles on the road in 2012 and the French government's decision to buy 50,000 for its own use.

The race to put electric cars on the road isn't just about innovation and production power, says ZVEI spokesman Andreas Abs; it's also about developing a market for used electric vehicles, which consumers can more readily afford.

France's decision to equip its government fleet with electric vehicles "creates a strong market impulse," Abs told Deutsche Welle. "In five or six years, there will be a veritable market for used electric vehicles."

And China, Abs believes, could eventually pull ahead of Germany when it comes to automotive expertise.

"Anyone with 500,000 electric cars on the market is going to acquire early experience with that technology," he said. "That's why we simply need to do more. The government needs to do more. The automobile industry is a significant part of our industry, and we can't afford to stand by and watch."

But if electric cars are to gain widespread appeal, there have to be obvious advantages to owning one. Among other things, that means an attractive infrastructure to service them and incentives to buy them.

Tax breaks and more

For a start, ZVEI recommends temporarily lifting Germany's 40 percent tax on electricity for consumers charging electric vehicles. The industry group also suggests introducing an interchangeable license plate similar to Switzerland's, which can simply be swapped between a conventional and electric car. Such a plate would reduce insurance and licensing costs as an incentive.

"We believe progress can be made with practical suggestions that don't necessarily cost money right away in the sense of a premium for electric vehicles," Abs said.

While ZVEI doesn't advocate direct subsidies, it does believe the German government should invest more in research, particularly in batteries. The association recommends doubling government funding to 1 billion euros or more.

"Instead of seeing money invested at the back-end with a premium for purchasing, we want to see it invested at the front-end in research and development because that's more difficult for a company that needs to make money on its products," Abs said. "We also need a smart grid, which fills the batteries of an electric car whenever wind turbines are turning. That's particularly appealing because consumers will then know that the electricity they're using to drive with wasn't generated by burning fossil fuels."

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Range Rover and Porsche Panamera go hybrid

Land Rover is debuting its Range_e, a diesel hybrid plug-in prototype, at the 2011 Geneva Motor Show in March. According to the British car manufacturer, the technology-packed Range_e is one of several working prototypes currently being developed at Land Rover's design and engineering centre in the UK.

The Range_e is based on a Range Rover Sport and features a 3.0-litre TDV6 diesel with an eight-speed ZF automatic transmission. Matched with a plug-in parallel diesel hybrid system it offers a premium SUV that can run as a pure electric vehicle. The 'Range_e' is the first capable 4WD model from Land Rover to achieve 89g of CO2. It has an EV range of 20 miles, a top speed of around 120mph and a range of 690 miles.

Porsche is also unveiling in Switzerland a new hybrid model, its second, the Panamera S Hybrid. According to the German sports car manufacturer, the new Panamera model produces 380 horsepower with fuel consumption of only 6.8 L/100 km on the New European Driving Cycle (NEDC).

Porsche calls its Panamera S Hybrid the most fuel efficient Porsche of all time. Optional low-rolling-resistance tires developed especially for the Panamera help this hybrid performance sedan deliver its NEDC fuel economy figure. But even with standard performance tires, the Panamera S Hybrid's fuel consumption is a low 7.1 L/100 km. Official EPA fuel economy estimates will be available closer to the car's on-sale date, Porsche states.

The Panamera S Hybrid sets new standards in terms of Porsche performance as well as hybrid efficiencies, the manufacturer claims. The S Hybrid accelerates from 0 to 60 mph in just 5.7 seconds and has a top track speed of 167 mph (270 km/h). Its range in purely electric mode is approximately one mile, with electric-only acceleration possible up to just over 50 mph (85 km/h).

The Porsche parallel full hybrid system also reduces consumption at high speeds thanks to its 'sailing' or coasting mode. When the driver lifts off the accelerator at normal highway cruising speeds, the gasoline engine is completely switched off and disengaged from the drivetrain by a decoupling clutch. This eliminates the combustion engine's drag forces and braking effect in the interest of lower resistance, fuel consumption and emissions. As soon as the driver presses the accelerator, to pass another vehicle for example, the gasoline engine smoothly starts within fractions of a second and engine rpms are increased to match the current vehicle speed. It does this seamlessly thanks to the Hybrid Manager, which also helps the Panamera S Hybrid accelerate dynamically in gears at higher speeds much like a conventional Panamera.

The same gasoline engine/electric motor combination that has already proven itself in the Cayenne S Hybrid drives the Panamera S Hybrid. A 3.0-liter supercharged V6 engine delivering 333 horsepower is supported by a 47-horsepower (34 kW) electric motor. Depending on driving conditions, either drive unit can operate independently or together to drive the rear wheels. The electric motor, which also serves as the car's generator and starter, combines with the decoupling clutch to form the compact hybrid module located between the combustion engine and the transmission. The electric motor is connected to a nickel metal hydride (NiMh) battery that stores electric energy recovered from braking and other driving situations. The transmission is the same eight-speed Tiptronic S fitted in the Cayenne models, with a wide range of gear ratios.

The Panamera S Hybrid has an even higher level of standard equipment than the V8 Panamera S, Porsche says. Adaptive Air Suspension with the Porsche Active Suspension Management (PASM) adaptive shock absorber system, Servotronic variable-assist power steering and a rear wiper have been added to the list of standard equipment. Other standard features include Porsche Communication Management (PCM) with navigation, the universal audio interface to connect an external audio source such as an iPod or a USB stick to the PCM system, and Bi-Xenon headlights. Inside, this new model also features an innovative display that provides the driver with relevant information about the status of the vehicle's hybrid drive systems.

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VIDEO: Nissan EV battery plant in Portugal

From Reuters: Nissan Motor expects to start producing electric vehicle batteries at its new plant in Portugal by the end of next year, and aims for annual output of 50,000 by 2015.

"It's a big step in Nissan's global zero emission strategy," Chief Operating Officer Toshiyuki Shiga said on Friday after the company broke ground on a plant in northern Portugal.

Nissan and its French partner Renault are the most aggressive proponents of battery-powered cars, aiming to become the first in the world to sell them in large numbers with a global rollout of eight models in 2012.

"We are investing 156 million euros to start production in December 2012 and produce 50,000 batteries per year by 2015," Shiga said of the Portugal plant.

The plant, set to employ 200 people, will be one of the main battery supply bases for both Nissan and Renault's EVs, starting with the Leaf model Nissan launched in December.

Nissan started building a plant in Sunderland in the United Kingdom last April with a projected production of 60,000 batteries per year, while Renault's factory in France's Flins targets a total capacity of 100,000 a year.

The company does not rule out selling batteries to other EV manufacturers.

"This plant will produce, for now, for the Renault-Nissan alliance, but given our business stance and environmental values, if other clients are interested, then we are open to selling the batteries," Nissan executive vice-president Carlos Tavares told reporters.

The plant is another step in Nissan's alliance with Portugal, following a deal that will see the Iberian country roll out the world's first nationwide EV charging network, with 1,300 charging points due to be installed by June.

"This is what the country needs -- new factories, new investments, more production and more jobs," Prime Minister Jose Socrates said at the ground-breaking ceremony.

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Lítio 'pode tornar Portugal rico'

No Expresso: Um estudo divulgado esta semana pela empresa de consultoria MarketResearch.com indica que a procura de litío para a construção de baterias de iões de lítio para a indústria automóvel vai quadriplicar ao longo dos próximos 10 anos.

O mesmo estudo revela que em 2010 o mercado mundial de lítio ascendeu a 11 mil milhões de dólares (€8 mil milhões), mas que em 2020 deverá rondar os 43 mil milhões de dólares (€31,5 mil milhões).

Alguns analistas do setor extrativo garantem ao Expresso que Portugal tem aqui uma oportunidade única para "marcar pontos" neste importante mercado, pois atualmente já é o 5º maior exportador mundial de lítio, e tem potencial de exploração para mais 70 anos. Estes dados são confirmados, aliás, num dos relatórios mais recentes do Departamento de Energia norte-americano.
Indústria automóvel interessada no lítio português

O problema é que Portugal apenas vai até à produção de concentrado de lítio, ou seja, não acrescenta mais valor ao seu produto, tendo que o vender em bruto para os smelters (proprietários de fundições) de outros países. Esses, sim, é que entregam à indústria automóvel o lítio pronto para ser utilizado em baterias de carros elétrios. São também estes intermediários que faturam uma parte considerável do processo de transformação do lítio.

O Expresso sabe, no entanto, que o principal produtor de lítio em Portugal está já a ser sondado por várias empresas multinacionais da indústria das baterias para carros elétricos, no sentido de formar parcerias que possam passar pela criação de uma fundição em Portugal. Ou seja, poderia ser um passo à frente no processo, em que o país acrescentaria valor ao seu recurso natural.

Para além da indústria automóvel, o lítio também, é utilizado na indústria eletrónica (telemóveis), farmacêutica e prevê-se que venha a ter cada vez mais aplicações na indústria aeroespacial e também na área militar.

A preocupação das construtoras de automóveis é tão grande em relação ao lítio que algumas já estão a entrar no capital social de algumas empresas mineiras em várias zonas do globo. A nipónica Mitsubishi ainda recentemente tomou posição em algumas empresas do sector extrativo, na área do lítio, em dois países da América do Sul.

Com estes avanços para a área mineira, a indústria automóvel quer garantir, de alguma forma, que não vai ter problemas no abastecimento dessa importante matéria-prima, para que a nova área de negócio dos carros elétricos, que agora desponta, não fique comprometida.

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Carlos Tavares entrevistado pelo Público

No Público: Carlos Tavares é vice-presidente executivo do grupo japonês Nissan. O gestor português diz que a nova fábrica de Cacia poderá receber outros componentes para além dos módulos para baterias, se demonstrar que é eficiente. "Se os resultados atingirem as expectativas, há outras oportunidades possíveis", sublinha.

Portugal está bem colocado para ter uma fábrica de baterias produtiva?
Estamos confiantes. Uma das razões é que temos aqui ao lado a fábrica da Renault de Cacia, que fabrica com grande sucesso caixas de velocidade com um nível de qualidade muito elevado e um custo competitivo. Não há razão para que não se duplique esse sucesso na Nissan, a nível das baterias.

As baterias vão ser montadas aqui na fábrica, mas os componentes virão de vários mercados. Já é possível calcular a incorporação portuguesa?
Ainda é um pouco cedo, mas pensamos que o nível de incorporação europeia vai ser da ordem dos 50 por cento, quando a fábrica começar a produzir. À medida que a produção for aumentando, vai haver oportunidades para que pouco a pouco se possam utilizar mais os fornecedores locais.

Já há contactos a serem feitos?
Ainda é muito cedo. Queremos ser bastante prudentes, porque só se lança uma tecnologia nova, como a dos veículos eléctricos, fazendo as coisas com muita calma e todas as verificações com um nível de rigor muito elevado.

Mas já iniciaram algum processo de identificação de parceiros a nível local?
Acho que não vai tardar.

E o que vai ser feito na fábrica?
Vai ser a fabricação das células e dos módulos das baterias. Cada módulo tem quatro células e é necessário construir um pack com um determinado número de módulos. Para o pack da bateria do Nissan Leaf, por exemplo, são necessários 48 módulos. O que vai ser fabricado aqui são os módulos, que serão depois exportados para as fábricas de montagem dos automóveis. Como os packs de baterias são bastante grandes e pesados - pesam quase 300 quilos - faz mais sentido montá-los muito perto da montagem do automóvel.

Poderá haver produção de outros componentes dentro da fábrica?
Nunca se sabe. Nos veículos eléctricos há também motores eléctricos, inversores, cabos eléctricos, conectores... O que é importante, do ponto de vista nacional, é que se demonstre a capacidade desta equipa para produzir os componentes de baterias de maneira muito eficiente. Se esses resultados atingirem as expectativas, há outras oportunidades possíveis. Mas isso só se saberá mais tarde.

Que fábricas é que irão receber baterias de Portugal?
Vamos começar pela fábrica da Renault em Bursa, na Turquia, para o Renault Fluence, e depois se verá as seguintes. Ainda não está decidido, mas obviamente que vai haver outras.

O Nissan Leaf também vai ser fornecido por Portugal?
Vai ser fornecido para já pela fábrica de baterias de Sunderland (Reino Unido), mas depois tudo vai depender das capacidades e da procura de mercado.

Uma das principais questões levantadas quanto ao carro eléctrico é a autonomia limitada na condução. Estão à procura de novas soluções?
Pelo mundo fora, temos entre 60 e 70 modelos diferentes da marca Nissan, e obviamente que não temos intenção de os substituir a todos por um veículo eléctrico. Neste caso, esse será o carro ideal para um tipo de utilização que em inglês designamos por commuting (percurso casa-trabalho). Outro factor muito importante é que carregar uma bateria custa dois ou três euros. Isso vai criar o interesse de entidades comerciais, como restaurantes ou hotéis, em fornecerem um ponto de carregamento gratuito para atraírem clientes, uma vez que o custo dessa energia é muito baixo.

Outra preocupação é a vida útil das baterias. Calcula-se que ao fim de cinco anos as baterias estarão a 80 por cento da capacidade...
Os cinco anos são a garantia da bateria que é oferecida com o automóvel, mas a vida da bateria é muito maior. Agora, isso coloca-nos também numa situação de oportunidade relativamente ao segundo ciclo de vida. Abre perspectivas de negócio, como o reaproveitamento das baterias para serem utilizadas como backup de sistemas informáticos, ou para o armazenamento de energia em casas particulares. Pode carregar uma bateria de noite e utilizar essa energia em casa, ou carregá-la utilizando painéis solares... Temos aqui uma visão de autonomia energética muito interessante do ponto de vista familiar.

Neste momento, o Nissan Leaf custa cerca de 30 mil euros aos consumidores. Quando prevêem que seja possível reduzir esse custo?
Irá acontecer à medida que se atingirem níveis de produção entre 500 mil e um milhão de baterias por ano, mas não conseguimos saber exactamente quando. Mas temos de estar preparados para quando terminarem os incentivos públicos à aquisição de veículos eléctricos, uma vez que esses apoios não são eternos.

Qual será a duração para esses incentivos em Portugal?
Estão limitados aos primeiros cinco mil veículos adquiridos, mas essa situação vai provavelmente ser revista. Nos EUA, está prevista uma redução do preço de 7500 dólares para os primeiros 200 mil veículos Nissan Leaf.

Outro dos incentivos portugueses é que 20 por cento da frota do Estado terá de ser composta por veículos eléctricos. Isso pode ser uma ajuda para a Nissan?
Esta é uma decisão que demonstra a compreensão do Governo da necessidade de apoiar os carros eléctricos. Mas naturalmente que neste domínio iremos concorrer com outros construtores, no âmbito do concurso que for lançado. Gostamos muito de competição.

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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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Mitsubishi to launch eight new green cars by 2016

From the AFP: Japan's Mitsubishi Motors said Thursday that it will launch a new line-up of environmentally friendly cars by March 2016 and double operating profit in the next three years by focusing on emerging markets.

Mitsubishi will launch a total of eight electric vehicles and plug-in hybrids, starting with a mini commercial vehicle, the MINICAB-MiEV, the company said as it unveiled a new mid-term business plan.

Japan's fourth-largest automaker launched the i-MiEV, the world's first commercially produced electric vehicle, in 2009 and the race to manufacture greener cars has heated up among rivals such as Nissan, Toyota and Ford.

The new models will also include Mitsubishi's first plug-in gasoline-electric hybrid vehicles, to be rolled out in the fiscal year starting April 2012 as it looks to boost emerging market production to target growth.

It aims to double operating profit to 90 billion yen ($1.10 billion) in the year to March 2014 and triple net profit to 45 billion yen.

Mitsubishi hopes the new business strategy, which also includes cost cuts, will boost its earnings as it looks to expand its China business through a new joint venture with a local partner.

"There is huge domestic demand in China and people's living standards are rapidly improving. I believe there is no major doubt that China will continue to grow," company president Osamu Masuko told reporters.

The automaker said it would build a third factory in Thailand in fiscal 2011, making the nation the company's second-largest export hub after Japan, and produce a low-price, energy-efficient compact for the growing middle class.

Mitsubishi will also increase capacity in China and Brazil, and begin full-scale production of sport-utility vehicles in Russia.

Masuko said his company wants to maintain its production level in Japan but acknowledged it is "very difficult to keep the current export-oriented structure and expand output and capacity in Japan."

"We have to produce cars where consumers are and where there are less foreign exchange risks," he said.

For many Japanese automakers, the yen's surge against the dollar and the euro has eaten into profits and made exporting from Japan less profitable.

More companies are considering moving production abroad to stay competitive against rivals benefiting from weaker currencies in their home countries.

Mitsubishi's ratio of overseas production to total output is expected to rise to 54 percent in the fiscal year 2013 from 44 percent in fiscal 2010.

Global output is to soar to 1.58 million units from 1.1 million in the same period, the company said.

It targets sales of 2.5 trillion yen in fiscal 2013, up from 1.9 trillion yen expected for fiscal 2010 ending in March 2011.

Mitsubishi shares closed higher Thursday, up 1.69 percent at 120 yen, outperforming a 1.13 percent rise in the benchmark Nikkei index.

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Smart to decide on electric scooter by the summer

From Automotive News Europe: DaimlerAG's Smart subsidiary, which is seeing its car sales decline, will decide by the summer whether to expand its lineup by launching an electric motorcycle and an electric scooter, the unit's boss, Annette Winkler, said.

"We want to reach a decision within the next six months. The question is whether the business case is positive," Winkler told Automotive News Europe on the sidelines of the Detroit auto show. Winkler said the business case currently is looking positive.

Smart is talking with potential production partners, but Winkler declined to disclose names of motorcycle makers with which Smart is negotiating. Smart unveiled concepts for the two-wheelers at the Paris auto show in October 2010.

This year, Smart forecasts sales of more than 90,000 units, compared with 97,500 in 2010 and about 134,000 in 2008. Its biggest markets were Germany, Italy, the UK, France and the United States. Last year, U.S. sales decreased to 5,930, compared with 24,000 in 2008, the year that the one-car brand launched sales in the country.

The successor to the current Smart ForTwo two-seat minicar will go on sale at the end of 2013 at the earliest. A four-seat Smart will follow in 2014 and will help boost sales.

Until then, Smart's only innovation will be a full-electric ForTwo, which will launch in 2012 with forecast sales of 10,000. Winkler said electric Smart sales could be combined with offers, such as the possibility to rent a larger car on a short-term basis.

Winkler also hopes to win new customers by selling individualized ForTwo models.

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VIDEO: Tesla's Model S hits the road

Tesla has just released a video of its Model S silently rolling on a countryside road. And it sure looks and sounds awesome.

From Tesla Motors' own blog: Model S, engineered from the ground as an EV, is meticulously designed for superior aerodynamics, stability and handling, crash safety, performance and range. Before Model S enters production it will have been thoroughly tested using both computer simulations and test vehicles. Tesla will complete two vehicle testing phases, Alpha and Beta. The Alpha phase began in 2010.

While test driving the first Alpha, Tesla Vehicle Dynamicist Graham Sutherland commented: "The first Alpha is amazingly agile for a car of its size. It has great handling balance and poised ride with communicative steering. Just goes to show what combining a low center of gravity with a very stiff body structure can achieve."

The Alphas will be tested extensively in the coming months in all climates. As each Alpha is built, the driving dynamics will evolve and improve.

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One-fifth of drivers likely to consider buying an electric vehicle

IBM's Institute for Business Value research on electric cars and a recent study of auto industry executives suggest eager drivers: Many automobile industry executives believe that sales of traditional vehicles will peak before 2020 and are looking to electric-only vehicles (EVs) as one of the next hot products, but they will first have to address stringent consumer requirements about EV performance, recharging, and convenience.

Taken together, the two studies uncover significant differences between the automobile industry executives IBM spoke to and consumers on the factors motivating consumers to purchase electric vehicles, with auto execs placing greater emphasis than consumers on government incentives and oil prices. The executives were also skeptical of consumers’ willingness to pay a premium for green vehicles.


Why Buy an Electric Vehicle

The insights, from IBM’s Institute for Business Value (IBV), are derived from a new survey of 1,716 U.S. drivers (1) and interviews with 123 auto industry executives (2). The study indicates that, even in these early days, there is a potentially large market for EVs. Nineteen percent of drivers surveyed said that they were either “very likely” or “likely” to consider purchasing an electric-only vehicle when shopping for a new car. This is notable, given that 42 percent of drivers know only “a little” about EVs or have “only heard of them,” suggesting that automakers could increase the pool of potential buyers with sustained educational campaigns.

Thirty percent of drivers surveyed said that they would consider switching to an EV that got 100 miles or less per charge. Current EVs get about 50 to 100 miles per charge.

And 40 percent of drivers said they would pay up to 20 percent more for an electric-only vehicle compared with a similarly-featured gas-, diesel, or hybrid-powered vehicle, with 27 percent saying they would pay 10 percent more and 13 percent saying they would pay 20 percent more.

To drive the price of electric vehicles into this more affordable zone, the IBV research indicates that automakers should initially focus on sales to both consumers and commercial fleets, building scale and creating economic efficiencies in production. Automakers may also need to develop new business models for electric vehicles to overcome the higher initial price.


Home charging: a sticking point

Nevertheless, price of the home charging installation often required to support an EV could pose an obstacle to EV adoption. Only 13 percent of drivers said they would consider spending more than $1,000 to retrofit their residence to support recharging of an electric vehicle. According to industry estimates, retrofitting to a 240 volt outlet accessible to vehicles averages between $1,000 and $2,000.

In addition, two-thirds of consumers expect a price discount on their electricity for charging at home overnight. This expectation could place increasing focus on utilities for time-based pricing to encourage home charging, or more public charging will be required if an electricity discount is not available.

Home charging is considered important to the success of EVs. Of the drivers surveyed, 83 percent said they park their primary vehicle in the driveway or garage of their private residence, as opposed to in a parking lot, on the street, in a shared garage or some other location.

“Even under optimal circumstances, fully recharging an electric-only vehicle takes hours,” said Kal Gyimesi, IBV automotive lead and co-author of the IBV study. “So, it is crucially important that we build an infrastructure that can charge vehicles where their owners park them for extended periods of time – whether that is at home or at work, school, or the store.”


Where to put those charging stations?

Perhaps a reflection of America’s consumer culture, 62 percent of drivers surveyed said they most often parked in a mall or store parking lot when not at home or work. That’s substantially higher than any other location – “on the street” was number two at 17 percent.

“When deciding where to put charging stations, retail hubs like malls and shopping centers are good locations,” Gyimesi said. “It’s easy to envision charging stations in these commercial locations coupled with an advertising and promotion-based business model for local stores – which will help make the economics more feasible.”

Partnering with large employers in target regions to create charging infrastructure in the workplace also makes sense, Gyimesi added.

Consumers were asked what would motivate them to switch from using a vehicle that currently runs on gasoline, diesel or hybrid to an electric-only vehicle. The same question was posed to automobile industry executives, who were asked to rate the importance consumers place on each choice.

Both consumers (71%) and auto execs (81%) rank 'innovative pricing models or lower price overall' first. Auto execs (73%) quote 'significantly higher oil prices' as a major reason behind considering electric cars. Only 51% of consumers quoted the same reason. 'Green image or sustainability concerns' are important for only 48% of consumers and 33% of auto execs. Availability of charging infrastructure is crucial for 62% of consumers and 65% of execs.

The answers illustrate that the automobile industry executives IBM interviewed for this study place far greater weight than consumers on government incentives/regulations (73 percent to 41 percent).

According to the IBV study, when asked executives how automakers could develop mobility solutions, 83 percent said that the best direction would be to shift their product portfolio from conventional vehicles to electrified vehicles (EVs). About half said they expect the annual sales of conventional vehicles to have begun to decline by 2020.


Urban/Suburban/Rural Divide?

Responses for the driver survey were similar across urban, suburban and rural areas -- with some notable exceptions. For example, rural respondents were the most likely (59 percent) to say they would pay nothing more for an electric-only vehicle compared with a similarly-featured gas-, diesel, or hybrid-powered vehicle.

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Ford to hire 7,000 thanks to hybrids and electric vehicles

From the Detroit Free Press: Ford Motor will today announce that it is on course to add 7,000 new jobs through the end of next year, according to a person familiar with the planning.

Of those jobs, 1,800 have already been announced for Ford's Louisville plant, where the Ford Escape SUV is built, and another 2,200 blue-collar jobs and 750 salaried jobs will come by year's end.
Another 2,000 jobs will come next year.

The move comes as Ford puts the finishing touches on its 2006 Way Forward turnaround and begins a period of expansion. Ford is expected to post a profit of $8.2 billion for 2010 and sales are stronger than they have been in years. Sales were up 19.5% last year.

The automaker is also planning to embark on an aggressive strategy to expand its fuel-efficient car models, with a new emphasis on plug-in hybrids and all-electric cars.

"We are going to have, clearly, the most comprehensive electrification strategy available," Ford President and CEO Alan Mulally told the Free Press in a recent interview.

Today at the 2011 North American International Auto Show, Ford is to show off plug-in hybrid and gasoline hybrid versions of its C-Max, a minivan coming to the U.S. from Europe in 2012, as well as a battery-powered Focus Electric compact car.

James Tetreault, Ford's vice president of North American manufacturing, said he expects to add a third shift to Ford's Wayne assembly plant where those models are built by 2012, bringing the workforce to 4,400 from 3,200 today.

Customers, Pick Your Fuel

While Ford might be behind some rivals in offering mainstream electric cars -- a market it will enter later this year with the Focus Electric compact -- the Dearborn automaker has taken a deliberately different tack.

Already the No. 1 domestic seller of hybrids, Ford plans to promote the wide variety of fuel-efficient models across its lineup, stressing the words "choice" and "family of electric vehicles."

Ford is planning to launch five hybrid, plug-in or battery-powered cars in North America by 2012, and it already sells several others.

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VIDEO: Ford Focus Electric is unveiled in Las Vegas

From the Autoblog: The Focus Electric is powered by 100-kilowatt electric motor with a 23-kWh battery, capable of producing 123 horsepower and 181 pound-feet of torque at its peak.

Ford says its EV can reach a top speed of 84 miles per hour, and while the official range hasn't been disclosed just yet, we're told it should be able to travel up to 100 miles on a single charge (just like the Leaf).

Speaking of charging, Ford says the Focus Electric can be fully charged in just three hours from its 240-volt home-installed charging station, though the car will take up to 20 hours to charge via a standard 120-volt outlet.

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UPDATE: Renault electric car espionage suspect was in 30-member panel headed by Carlos Ghosn

French carmaker Renault has said that suspected industrial espionage against its business poses a serious threat to its "strategic assets".

The statement comes a day after Renault suspended three senior managers after an investigation into the possible leaking of electric vehicle secrets.

Commenting on the matter, French Industry Minister Eric Besson warned the country was facing "economic war". Mr Besson said the situation at Renault "appears serious".

"The expression 'economic war', while sometimes outrageous, for once is appropriate," he told France's RTL radio station. "It appears to concern the electric car, but I do not want to go further."

Mr Besson said he was calling for French companies which received public funds to improve their security.

Sources said that those suspended had all headed electric vehicles projects and one was a member of the company's management committee, a 30-strong panel of top managers headed by chief executive Carlos Ghosn. The suspension without pay of the staff is a first step towards possible disciplinary action. The three were required to leave their offices on Monday, the sources said.

Renault plans to launch electric versions of its Fluence model priced at about 25,000 euros (34,000 dollars) and its Kangoo Express for about 20,000 euros in mid-2011, and its smaller Twizy and Zoe models in late 2011 and 2012. It forecasts that electric cars will make up 10 percent of the market by 2020. Along with its Japanese partner Nissan, it is investing 200 million euros a year in the programme.

Nissan has already launched an all-electric car for the mass market, the Leaf, in Japan and the United States, where it sold out on pre-orders. The Leaf is set to be launched in select European markets in early 2011.

Other major car makers are in on the act, preparing to launch electric cars. Among Renault's French competitors, Citroen is making the C-Zero and Peugeot the iON. Tata of India is preparing to launch the Vista EV. Mercedes-Benz of Germany has an electric smart car, the Fortwo ED, while in Japan Mitsubishi has the iMiEV and Toyota the Prius Plug-in.

This is in contrast to rivals such as General Motors and Toyota, the world's two largest carmakers, which are instead investing heavily in hybrid vehicles, which use both an electric and a petrol engine.

Sources: BBC and AFP

Related post: Renault's electric vehicle programme target of espionage

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