Toyota Electric RAV4 Will be Built by Tesla

Tesla and Toyota announced today they will partner to build an electric RAV4. The prototypes will be made combing the RAV4 with a Tesla electric powertrain. One prototype has already been built. Tesla will produce and deliver the fleet of prototypes this year.

The electric RAV4 will used Tesla's liquid cooled lithium-ion battery configuration. The configuration ties together thousands of commodity cells that you would normally find in a laptop.

In May, Tesla and Toyota announced the partnership to cooperate on the development of electric vehicle parts and production systems. Tesla wants to benefit from Toyota's experience in engineering, manufacturing, and production. Toyota wants to benefit from Tesla's technology, 'daring spirit, quick decision making and flexibility.'

The electric RAV4 will be marketed in the US starting in 2012.

Tesla IPO, the First Car IPO in 50 Years

Tesla announced their IPO at $17 a share, beginning today on NASDAQ. That's a dollar more than what was reported yesterday. It puts their market capitalization at nearly $1.6 billion.

In comparison, Ford who was the last car company to go public in 1956, was selling just under $10 this morning.

The company is still losing money and will continue to do so until they start selling the Model S in significant numbers. That doesn't bother the CEO, though.

"We are a Silicon Valley company. Closer to an Apple or Google than to a GM or Ford in the way we operate the company," Tesla Chief Executive Officer Elon Musk said.

Some analysts are skeptical, pointing out they are a manufacturing company in a competitive field. But that didn't seem to bother many as Tesla opened up today.

Press Release from Tesla follows:

Tesla Motors, Inc. (Nasdaq:TSLA), a manufacturer of highway-capable fully electric vehicles and electric vehicle powertrain components, today announced its initial public offering of 13,300,000 shares of its common stock at a price to the public of $17.00 per share. The shares will begin trading on Tuesday, June 29, 2010 on the NASDAQ Global Select Market under the ticker symbol “TSLA.” Of the shares in the offering, 11,880,600 shares are being offered by the company and 1,419,400 shares are being offered by selling stockholders. In addition, the selling stockholders have granted the underwriters a 30-day option to purchase up to an additional aggregate of 1,995,000 shares of common stock to cover over-allotments, if any. Tesla will not receive any proceeds from the sale of shares by the selling stockholders.

Goldman, Sachs & Co., Morgan Stanley, J.P. Morgan and Deutsche Bank Securities are acting as the joint book-running managers for the offering.

The offering of these securities will be made only by means of a prospectus, copies of which may be obtained from Goldman, Sachs & Co., via telephone: (866) 471-2526; facsimile: (212) 902-9316; email: prospectus-ny@ny.email.gs.com; or standard mail at Goldman, Sachs & Co., Attn: Prospectus Department, 200 West Street, New York, NY 10282-2198; from Morgan Stanley & Co. Incorporated, via telephone: (866) 718-1649; email: prospectus@morganstanley.com; or standard mail at Morgan Stanley & Co. Incorporated, Attn: Prospectus Department, 180 Varick Street, New York, NY 10014; from J.P. Morgan Securities Inc., via telephone: (718) 242-8002; or standard mail at c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717; or from Deutsche Bank Securities Inc., via telephone: (800) 503-4611; or standard mail at 100 Plaza One, Jersey City, NJ 07311 Attn: Prospectus Department.

A registration statement relating to these securities has been declared effective by the Securities and Exchange Commission. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Tesla CEO Selling Million Shares During IPO Tomorrow

Tesla founder and CEO is adding an additional 909,212 of his personal shares to the IPO in one day of Tesla. Musk will still be the largest shareholder, with 28.4 percent, after the shares are sold. (Source: Techcrunch)

He and others (including Musk's family) are looking to cash out on some of their shares during the IPO. Shares are expected to sell between $14 and $16.

Other major shareholders include Daimler (through an investment arm called Blackstar Investco) with 8 percent of the shares, and the third largest will be the government of Abu Dhabi (through Al Wahada Capital Investment) with 7.8 percent of the shares. The two biggest VC shareholders will be Vantage Capital Partners with 6.6 percent and Valor Equity Partners with 5.25 percent.

Interesting information, if you ask me.  On the one hand, I can't help wondering why the CEO is cashing out a million shares, but on the other hand, it's not like he's abandoning his shares either.  He's probably invested so much time and money into it and maybe he just has another investment to make with that money.  And I have no idea if this sort of initial 'cash out' is just the normal process during an IPO.

Hybrid Car Brands

Just who is making hybrid cars these days and what brands are considering making hybrid cars in the future?

Major Hybrid Car Brands
Hybrid cars are currently being built and sold by General Motors, Ford, Honda, Toyota and Nissan. General Motors builds hybrid cars under several divisions including Saturn, Chevrolet, and GMC.  Ford has the Mercury and Ford divisions.  Toyota sells hybrids under the brand name of Lexus .  While Honda and Nissan just sell hybrids under their own name plates.

Toyota
Under the Toyota brand name, there are three models currently on sale. The iconic Prius is almost synonymous with hybrid and is the first car most people think of when they think of hybrids. Toyota also sells the Camry Hybrid and Highlander Hybrid under the moniker of Toyota.

Toyota also has their luxury division, the Lexus hybrids. Under the Lexus brand name, Toyota sells the HS, LS, RX, and GS Hybrids. They keep adding models under the Lexus nameplate, so expect and IS hybrid to arrive soon. The HS hybrid is a dedicated model like the Prius. The others are subtypes under the model. In other words, you can buy gas-only models, or you can opt for the hybrid engine.

Honda
Honda sells the Civic Hybrid under their brand name. They also currently sell the only other dedicated hybrid on the road, the Insight. They used to sell a Hybrid Accord, and the two-seater hybrid Insight, but have retired both models.

Expect to see Acura Hybrids in the future.

Nissan
Nissan has only one hybrid model for sale, the Nissan Altima Hybrid. It is built using hybrid technology from Toyota and is sold in only eight US states. Nissan has plans to bring an Infiniti M35 Hybrid to market in the coming year.

General Motors (Cadillac, Chevy, Saturn, GMC)
They build several models (currently) using the Chevrolet brand. There is the Chevy Malibu and Chevy Silverado. The Chevy Volt, the Extended Range Electric Vehicle (E-REV), will be out soon and while GM considers the Volt to be a subtype of electric vehicle, it still falls under the hybrid type.

GM also builds the GMC Yukon and Sierra. And the Cadillac Escalade Hybrid also falls under the GM brand.

The Saturn brand was at one point, the cornerstone for hybrids under the GM umbrella. But Saturn is no more. You can still see the hybrid Vue and Aura on the road today.

Ford
Ford sells four different models under two different brand names. The Mercury Division sells the Milan and Mariner Hybrid. While Ford retains the Fusion and Escape Hybrid. The Lincoln division will have its own hybrid soon, but it's not here yet. The Mercury hybrids are the upgraded version of the Ford Hybrids, so expect them to be very similar if you take a look at both of them.

Chrysler
Chrysler sold the Aspen and Durango Hybrids for a total of two months before pulling the plug on both models. The Dodge Durango is very similar to the Chrysler Aspen, and both were built using the dual hybrid technology developed in partnership with BMW and GM.

Chrysler at one point had plans to bring a Dodge Ram Hybrid to market, but that seems to be on hold.

Hyundai
Hyundai is jumping in with both feet in the next year, with the Sonata Hybrid. Distinguishing itself from the other hybrids listed above, it's going to be one of the first hybrids to use lithium polymer battery packs, giving it an advantage over some of the more established hybrid models and brands listed above.

Mazda
Mazda has sold the Tribute hybrid in very limited numbers.  The Tribute was built using Ford Hybrid technology, when Mazda and Ford were a lot tighter than they are today.  Now Mazda is looking to partner with Toyota for the technology used in the Prius for their future hybrid model in 2013.

Fisker and Tesla
Fisker and Tesla are both bringing hybrid cars to market (they probably don't appreciate being lumped together given the lawsuits over the past few years). These startups are working hard to go straight to electric or hybrid and are emphasizing performance, rather than fuel efficiency right from the get go.

Audi, Subaru, BMW, Mercedes-Benz, Daimler, Ferrari, Lotus, Kia, Maserati, Porsche, Suzuki, Volkswagen and Volvo
Each of the brands mentioned above are attempting their own hybrid models, and several have brought some noteworthy test models to auto shows. Several are on their way to bringing those cars to market right now, but are still a few years away from seeing them on the road in more than just 'test fleets'. Some are closer than others, while some probably have no intention of ever going hybrid unless they are forced to do so by the tighter restrictions being enforced in Europe, Asia and the US in the coming years.

Looking for more information on one of the brands above?
Either search for the brand name here on this site or use the categories below or on the sidebars.  Each of the major brands listed will have more information that I've accumulated over the years.

Tesla Receives $465 Million Loan From DOE

The Department of Energy has gone ahead with the loan of $465 million to Tesla Motors, as part of the DOE loan program to advance vehicle technology. The loan agreement was conditional based on Tesla raising some funds on their own. They came through last week, raising $115.3 million in private equity. 

The funds are expected to be used in the Fisker Karma production and on the Nina, a new plug-in hybrid sedan to be built in Delaware.

This is the second loan agreement executed by the DOE. The first was for $5.9 billion to Ford Motor Company back in September, 2009. Other companies, including Nissan, Fisker, and Tenneco are also in line for their loans, but haven't closed.

For more details, read the press release below:

Washington, DC – Today, Secretary of Energy Steven Chu announced the Department of Energy has closed its $465 million loan with Tesla Motors, Inc. for construction of a manufacturing facility in southern California on the Model S electric sedan and a power-train manufacturing facility in Palo Alto, California. The Palo Alto facility will assemble electric vehicle battery packs, electric motors, and related electric vehicle control equipment, both for Tesla’s own electric vehicles and for sale to other automobile manufacturers.

The agreement was negotiated and signed by the Department’s Loan Programs Office, which supports the development of innovative, advanced vehicle technologies to create thousands of clean energy jobs while helping reduce the nation’s dependence on foreign oil.

“This is an investment in our clean energy future that will create jobs and reduce our dependence on foreign oil,” said Secretary Chu. “It will help build a customer base and begin laying the foundation for American leadership in the growing electric vehicles industry. This is part of a sustained effort to develop and commercialize technologies that will be broadly deployed throughout the American auto industry.”

Tesla’s planned Model S will consume no gasoline and will not produce any tailpipe emissions. It is being designed to offer a variety of range options depending on the battery pack used, from 160 to 300 miles on a single charge. Volume production of the Model S is planned to begin in 2012 with a target production capacity of 20,000 vehicles per year by the end of 2013. According to Tesla, the Model S project and power-train manufacturing facility are expected to create over 1,600 jobs.

Today’s announcement marks the second loan arrangement agreement signed by DOE with an advanced technology vehicle manufacturer. In September 2009, DOE signed its first loan agreement for $5.9 billion to Ford Motor Company. The Department has also signed conditional commitments with Nissan North America, Inc. and Fisker Automotive. Tenneco Inc. became the first advanced technology component manufacturer to obtain a conditional commitment from DOE in October of last year. Nissan plans to build electric cars and battery packs at the company’s Smyrna, Tennessee manufacturing complex, while Fisker recently announced plans to build plug-in hybrid electric vehicles by reopening a shuttered GM plant in Wilmington, Delaware.

The Department of Energy was appropriated $7.5 billion by Congress to support up to $25 billion in loans to companies making cars and components in US factories that increase fuel economy at least 25 percent above 2005 fuel economy levels. The Department plans to make additional loans over the next several months to large and small auto manufacturers and parts suppliers up and down the production chain. The intense technical and financial review process is focused not on choosing a single technology over others, but is aimed at promoting multiple approaches for achieving a fuel efficient economy.

Fisker Recieves $528 Million in DOE Loans

Fisker Automotive has been approved to receive $528 million in low-interest loans from the Dept of Energy (DOE) as part of the $25 billion dolloar loan program set up by the federal government.

$169.3 million will be used to finish development and production of the plug-in hybrid sedan Karma which is due out next summer. The Karma is being sold at $87,900 a piece.

The rest of the loan will be used in Project NINA. NINA is part of Fisker's plant to bring a family oriented, user friendly plug-in that will cost $47,400, or $39,900 after tax credits (if you qualify). Fisker is targeting Global sales are predicted to exceed 100,000 units annually starting in 2012.

Fisker estimates the loan will help create or save 5,000 US jobs among auto suppliers and thousands more to manufacture a plug-in hybrid in the US.

NINA comes from the trip by Christopher Columbus, and "is symbolic of the automobile industry’s transition from old world to new"

The $528.7-million low-interest loan "is another critical step in making sure we are positioned to compete for the clean energy jobs of the future," said Energy Secretary Steven Chu.

Tesla received $465 million from the same loan program.

Tesla Raises Another $85 Million in Funding

Tesla received another $82.5 million in funding from Daimler, Fjord Capital Partners, Aabar and other undisclosed investors. That brings the total investment to $783.5 million.

The most recent round of funding will go to accelerating the new retail locations in Monaco, Washington DC, South Florida and Toronto.

Source: Tesla Puts Another $82.5 Million In The Tank
Techcrunch notes that "Tesla has been on a roll recently" what with the recent fund raising, the government loans and another $50 million in equity that set their value at half a billion.

Tesla Receives $465 Million in Loans from US DOE

Tesla was approved for low-interest loans from the Dept of Energy to accelerate the production of their affordable, fuel efficient electric vehicles. The loan is part of $24 billion program called the Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP).

Ford and Nissan are also receiving loans in the first round of approvals.  GM and Chrysler were excluded early on because of questions about their viability.

$365 Million on Assembly of Model S
Tesla will use $365 million for production engineering and assembly of the Model S, an all-electric family sedan that carries seven people and travels up to 300 miles per charge.

The Model S, according to Tesla, will have a base price in the mid $50K range, although Tesla expects most consumers will pay only $49,900 after a $7,500 US federal tax credit. They expect production to begin in late 2011. The assembly plant will employ about 1,000 workers.

$100 Million on Powertrain Manufacturing Plant in California
The other $100 million will be used in a powertrain manufacturing plant, which will employ about 650 people. The new plant is expected to be located in California, where Tesla is in the final stages of negotiation.

"Tesla will use the ATVM loan precisely the way that Congress intended -- as the capital needed to build sustainable transport," said Tesla CEO and Product Architect Elon Musk. "We are honored that the US government selected Tesla to be among the first companies to participate in this progressive program."


More on the Model S, Roadster, and new showrooms from Tesla press release:
The Model S sedan features exceptional performance, styling and utility, with unrivaled cargo and passenger space. Its floor-mounted powertrain is the culmination of a half-decade of engineering in the heart of California’s Silicon Valley, where Tesla developed the Roadster.

The highly acclaimed Roadster is the first production battery electric vehicle to travel more than 200 miles per charge and the first US- and EU-certified Lithium-Ion battery electric vehicle. With an estimated range of 244 miles per charge and zero tailpipe emissions, it’s the first production vehicle to offer supercar performance with a clean conscience.

Tesla has never applied for federal funds for the Roadster, an American sports car that consumes no gasoline whatsoever. Tesla expects the Roadster business unit to be profitable in the third quarter. Privately held Tesla will finance sales and marketing for the Model S through private capital.

Tesla has delivered more than 500 Roadsters to customers. Later this month, Tesla will begin delivering its second-generation Roadster and Roadster Sport, an even higher-performance vehicle.

Teslas do not require routine oil changes or exhaust system work. They have far fewer moving (and breakable) parts than internal combustion engine vehicles. They qualify for federal and state tax credits, rebates, sales tax exemptions, free parking, commuter-lane passes and other perks. The Model S costs roughly $5 to drive 230 miles – a bargain even if gasoline were less than $1 per gallon.

The Model S, which carries its charger onboard, can be recharged from any conventional outlet. Three battery pack choices will offer a range of 160, 230 or 300 miles per charge. Tesla is taking reservations online and at its two showrooms in California.

Tesla will expand its network of showrooms this summer with stores in New York, Chicago, Seattle and Miami. Tesla will open its London showroom June 25, followed by Munich and Monaco. Additional stores will be opened in Washington DC and Toronto.

Government Set to Loan Billions to Ford, Tesla, and Nissan

Ford will receive $5.9 Billion in low interest loans from the US Govt Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP).  The funding will go towards transforming factories in Illinois, Kentucky, Michigan, Missouri and Ohio to produce 13 more fuel efficient models.  Tesla ($465 million) and Nissan ($1.6 billion) were also approved to receive some of the low-interest loans.

From the DOE press release:

Ford Motor Company will receive $5.9 billion in loans through 2011 to help finance numerous engineering advances to traditional internal combustion engines and electrified vehicles. In addition, theses loans will help the company convert two truck plants to the production of cars. Ford will be raising the fuel efficiency of more than a dozen popular models, including the Focus, Escape, Taurus and F-150, representing close to two million new vehicles annually and helping to transform nearly 35,000 employees to green engineering and manufacturing jobs in factories across 5 states: Illinois, Kentucky, Michigan, Missouri, and Ohio. Ford is driving a major upgrade, leveraging a portfolio of technologies, including the direct injection, smart turbocharging EcoBoost engine, advanced transmissions, and new hybrid technologies.

The facilities that will be impacted by today’s announcement include: Chicago Assembly, Louisville Assembly, Dearborn Assembly, Dearborn Engine, Livonia Transmission, Michigan Assembly, Van Dyke Transmission, Kansas City Assembly, Cleveland Engine, Lima Engine, and Sharonville Transmission.

GM and Chrysler were told their finances have to improve before they can receive any loans from the government's program to loan billions to retool factories in order to make more fuel efficient vehicles. The program was set up by Bush before the TARP program began.

The car companies at the time wanted the loan program, but said the funds would not be available in time to help them survive. Thus, the loans that GM and Chrysler eventually took which allowed them to survive for a few months more before going into bankruptcy.

Ford President and CEO Alan Mulally released this statement on the government loan program:

"Ford Motor Company is proud to be among the first automakers deemed by the government to be among the best companies with the best technologies in American manufacturing and fuel efficiency. This green partnership between Ford and the U.S. government will help accelerate the development of advanced technologies for even better fuel efficiency and emissions. Ford is absolutely committed to fuel economy leadership with every new model we introduce. In fact, we plan to invest nearly $14 billion in advanced technology vehicles in the next seven years. Our partnership with the Department of Energy also will help retool our U.S. plants more quickly to produce fuel efficient vehicles and help meet the new, rigorous fuel-economy requirements."

Ford anticiaptes they will begin repaying the loans back in 2012

Safety Recall, the Tesla Way

Tesla has issued a safety recall on the rear, inner hub flange bolts for their Roadster, which is certainly disappointing for a vehicle that costs over $100,000 to purchase. And if you were one of the 345 owners affected by the recall and had to bring your roadster back in to have the bolt tightened correctly, that would be a typical situation for any car owner. But after paying all that money, I'm betting you wouldn't be happy about it.

But Tesla has decided to turn this situation around and create some good press and good feelings instead. Instead of having the owners bring the car back to them, they are going to the owners. A house-call, if you will.  So instead of bad feelings all around, I'm betting the owners are thinking, "Hey, bad things happen.  It's what you do when it happens that matters."

Tesla is making sure to let everyone know the issues is not related to 'their' powertrain, but it is a manufacturing issue.  Lotus, which builds the Roadster, is also having their Elise and Exige recalled for a similar issue.

The technician sent by Tesla will come to the owners home or office and if necessary, will take the vehicle back to the the repair facility.  Service will be performed at no charge and will include a complimentary, full-vehicle inspection and software upgrade.

“We plan to do everything we can to address this matter swiftly and keep customers satisfied,” said Greg Zanghi, Tesla’s Director of Service and Parts Operations.

Tesla is Worth Half a Billion

Techcrunch points out that Tesla is valued at half a billion dollars, now that Daimler bought 9% of the company. Daimler paid $50 million, so multiply by 10 and you get a value for the entire company. (Source: Tesla Worth More Than Half A Billion Dollars After Daimler Investment). This is more specific than earlier reports which put the investment between $11 million and $99 million.

Daimler and Tesla have worked together before, with Daimler purchasing battery packs and chargers for their first 1,000 electric Smart cars.

TechCrunch says the $350 million federal loan Tesla applied has been informally approved and is close to being announced. They also point out that a short time ago, Tesla was down to $9 million in cash last year.

The Model S will likely benefit the most from the investment by Daimler.

"The Model S program is likely to be built quicker and significantly better" because of Daimler's support, said Michael van der Sande, senior vice president of global sales, service and marketing for Tesla.

The Model S may have 1,000 pre-orders, but that's a lot of value.

Tesla Unveils Model S

Tesla worked hard to create a memorable unveiling of their electric Model S today via live streaming video coverage, powered by Ustream.Tv on leftlanenews (here). Too bad digg founder Kevin Rose unveiled pictures via flickr of the Model S two hours before they did.

Also, the live stream seemed to have some issues.

Anyways, the pictures themselves are very exciting to look at.  The biggest discussion is all about that big screen on the center panel.

The Model S is supposed to cost upwards of $57,000, although with the federal tax credit (if you qualify for it) will bring that down to a mere $50,000.

Leftlanenews has more pictures up from the live reveal.

Tesla is Worried About $400 Million Loan Application in Federal Money

Tesla is worried they won't have enough money to build their sedan if they don't get the low cost loan they hoped for from the federal government.

Tesla had applied for $400 million of the $25 billion dollar loan program set up by the government to build high fuel efficient vehicles. But now that money may be used in the 'bailout' of the Big 3 (GM and Chrysler, more than Ford if reports are to be believed.

But some are criticizing the use of the federal government money to build the new hybrid sedan from Tesla. The vehicle is expected to be priced at $57,499 and that makes it a luxury vehicle.

But, the Volt is going to cost close to $40,000, so I'm not sure what people are expecting out of these cars.

The money may be initially used to build expensive luxury cars, but the technology, battery production, and so on are just what's needed to advance the fuel economy goals set out by the government.

The loan money for Tesla will be used to open a $250 million manufacturing facility in San Jose, CA. They are also planning on using the money to expand its drivetrain business, which they sell to other automakers and for a battery-cell production factory.

"We can't move forward with that without a major amount of capital," Musk said. "If we don't get any government funding, then what we need to do is we need to wait until the capital markets recover, which could be a year or two years from now."

Source: Electric car maker seeks U.S. aid | The Detroit News | detnews.com

Loans and More Loans... Please Do Not Use the Word Bailout

It seems like some are confused by all the $Billions$ being bandied about by Congress lately. Several months ago, Congress approved a $25 billion loan program to re-tool or build facilities capable of making cars which are 25% more fuel efficient than the cars being built in MY2005. Suppliers can also apply for the loan. GM, Chrysler, and even smaller car companies like Tesla have already applied for the loans through the DOE program.

Tesla applied for a $400 million loan (very frugal of them!), while GM and Chrysler did not disclose how much they want (found via TechCrunch). Ford plans on applying (or has already done so) by yesterday.

But that loan program has its drawbacks.  Specifically, the amount of time needed until the program actually gives out the money (up to a year). Which is why Detroit is pushing for a completely separate loan program from Congress during the current session. What they want now is access to the $700 billion set aside for the banking industry, or the set up of a whole new loan program. A program that would give them access to cash now.

For instance, the current bill sets up a $25 billion loan program with "initial interest rates of 5 percent to the U.S. automakers and suppliers in exchange for a federal stake in the companies or warrants that would let the government profit from future gains."

That would bring the loans available from the government up to $50 billion for the car companies.

And GM, especially, really, really wants the second program. But given the rhetoric from the Senate, they need to push back on some of the 'myths' they believe are prevalent throughout the US about the auto industry (Link- Detroit Free Press). They are pushing to build popular opinion through their blog and through e-mails to their customers. First a description of GM from GM's blog:

* A leaner company that has reduced its annual structural costs in North American by 23 percent, or $9 billion, since 2005, and are on track to reduce them by about 35 percent, or $14-$15 billion, by 2010. We also negotiated a landmark labor agreement with the UAW last year that will enable us to virtually erase the competitive gap we’ve had with foreign automakers.
* Award-winning products in the Chevy Malibu and Cadillac CTS, (Motor Trend magazine’s 2008 Car of the Year). The Chevy Malibu beats the Toyota Camry in highway mileage, and was recently ranked the highest in initial quality in the midsize car segment by J.D. Power & Associates.

In fact, 13 of our last 15 new product launches in the U.S. were cars or crossovers, and 18 of our next 19 new products will be, as well. Mr. Friedman, we also think you’ll be particularly interested in the huge progress we are making to develop a broad range of advanced propulsion technologies.

* For 2009, GM will offer 20 models in the U.S. that get 30 miles per gallon or better on the highway –twice our nearest competitor.
* We now sell six hybrid vehicles, with three more on the way by the middle of next year.
* We have more than three million flex-fuel vehicles on the road in the U.S., which are capable of running on bio-fuels like ethanol and we are committed to making 50 percent of our annual production flex-fuel capable by 2012.
* We’ve established the world’s largest fuel-cell test fleet by placing more than 100 Chevy Equinox Fuel Cell vehicles in the hands of U.S. drivers.
* And perhaps most important, we’re running all-out to get the Chevy Volt extended range electric vehicle to market as soon as possible. When running off its battery, the Volt will be able to drive up to 40 miles–more than the average daily commute for over three-quarters of Americans–without using a drop of gas.

And from the e-mail sent out to GM owners:

You made the right choice when you put your confidence in General Motors, and we appreciate your past support. I want to assure you that we are making our best vehicles ever, and we have exciting plans for the future. But we need your help now. Simply put, we need you to join us to let Congress know that a bridge loan to help U.S. automakers also helps strengthen the U.S. economy and preserve millions of American jobs.

Despite what you may be hearing, we are not asking Congress for a bailout but rather a loan that will be repaid.

The U.S. economy is at a crossroads due to the worldwide credit crisis, and all Americans are feeling the effects of the worst economic downturn in 75 years. Despite our successful efforts to restructure, reduce costs and enhance liquidity, U.S. auto sales rely on access to credit, which is all but frozen through traditional channels.

The consequences of the domestic auto industry collapsing would far exceed the $25 billion loan needed to bridge the current crisis. According to a recent study by the Center for Automotive Research:

• One in 10 American jobs depends on U.S. automakers
• Nearly 3 million jobs are at immediate risk
• U.S. personal income could be reduced by $150 billion
• The tax revenue lost over 3 years would be more than $156 billion

Discussions are now underway in Washington, D.C., concerning loans to support U.S. carmakers. I am asking for your support in this vital effort by contacting your state representatives.

Please take a few minutes to go to www.gmfactsandfiction.com, where we have made it easy for you to contact your U.S. senators and representatives. Just click on the "I'm a Concerned American" link under the "Mobilize Now" section, and enter your name and ZIP code to send a personalized e-mail stating your support for the U.S. automotive industry.

Let me assure you that General Motors has made dramatic improvements over the last 10 years. In fact, we are leading the industry with award-winning vehicles like the Chevrolet Malibu, Cadillac CTS, Buick Enclave, Pontiac G8, GMC Acadia, Chevy Tahoe Hybrid, Saturn AURA and more. We offer 18 models with an EPA estimated 30 MPG highway or better — more than Toyota or Honda. GM has 6 hybrids in market and 3 more by mid-2009. GM has closed the quality gap with the imports, and today we are putting our best quality vehicles on the road.

Please share this information with friends and family using the link on the site.

Thank you for helping keep our economy viable.

Sincerely,



Troy Clarke

What do you think.  Have the Big 3 really changed their colors?  Do they 'deserve' the second loan program?  Will they survive through the next six months?

Fisker Wins in Arbitration Against Tesla

Remember the lawsuit filed by Tesla against Fisker? Well, the arbitrator has decided the "evidence is overwhelming that Fisker did nothing wrong" and the "Tesla's assetion of violations of the Uniform Trade Secrets Act by Fisker were baseless and neither brought nor pursued in good faith."

I'm not a lawyer, but that sounds pretty straightforward to me.

In case you don't remember what the lawsuit was all about: 

Tesla claimed in their lawsuit Fisker "used fraud and deceit to gain access to and exploit Tesla's highly confidential and proprietary information and trade secrets in order to develop a competing electric-hybrid sports sedan."

Fisker Automotive responded via press release to the lawsuit by Tesla saying they stole company secrets, and provided substandard design when putting together the styling of the Tesla White Star. 

Tesla noted they had to reject the $800,000 design provided by Fisker.

Fisker was, of course, very happy with the results.

"We are very pleased with the ruling in favor of Fisker Coachbuild, LLC, Fisker Automotive, Inc., Bernhard Koehler and myself," said Henrik Fisker, CEO of Fisker Automotive Inc. "Despite the burden and expense of Tesla's lawsuit, Fisker Automotive, Inc. has been able to continue with its business plan and production schedule. We are still on schedule to deliver our first production vehicle, the Fisker Karma plug-in hybrid, 4 door luxury sports sedan by 4th Quarter 2009. Today's world needs new alternative energy vehicles and the focus should be to build and deliver these vehicles as soon as possible."

But I also stick with what I said before. A lawsuit between these two companies benefits no one but the lawyers.

Tesla Model S Will be Built in the US

Tesla Motors has decided their next big project, the Model S all electric luxury sedan, will be built in San Jose, CA. The plant will employ approximately 1,000 workers, and will cover 89 acres.

Construction of the plant begins in 2009, and the first unit to be produced will happen in 2010.

If you're interested in the Model S, it's projected to cost $60,000. Tesla says you will be able to travel 240 miles per charge and if it's anything like the Tesla Roadster (see image), this will be a powerful vehicle.

Tesla currently produces the Roadster in the UK and is still only producing a handful at a time.

Press Release follows:

SAN JOSE, Calif.--(BUSINESS WIRE)--Tesla Motors Inc. plans to build a $250 million facility to manufacture a zero-emission luxury sedan in the heart of Silicon Valley. The nation’s leading all-electric car company will also relocate its corporate headquarters and research and development efforts to a consolidated campus in San Jose, Calif.

Tesla President and CEO Ze'ev Drori announced Wednesday that construction on the 89-acre site would begin in the summer of 2009. When fully operational, the facility will employ approximately 1,000 workers.

Tesla selected San Jose in part because the region already enjoys a high concentration of highly skilled engineers and support infrastructure. The factory – expected to achieve gold certification from U.S. Green Building Council Leadership in Energy and Environmental Design (LEED) – will be 20 miles from the current headquarters in San Carlos, minimizing inconvenience for more than 250 employees.

“Big deals like this happen when both parties have something significant to gain,” said Drori, who praised San Jose Mayor Chuck Reed’s 15-year “Green Vision” job-creation initiative. “Locating Tesla’s headquarters, manufacturing and R&D in San Jose will allow us to proceed with minimum disruptions and virtually no dislocations.”

Model S is Tesla’s zero-emission, five-passenger luxury sedan powered by a lithium-ion battery pack. It is expected to have a base price of about $60,000 and get about 240 miles per charge with exceptional performance. The first sedans will likely roll off the assembly line in late 2010.

Tesla’s first production vehicle is the Roadster, a zero-emission, all-electric, two-seat sports car. On sale now in the United States and Europe, the Roadster is assembled at a Group Lotus PLC factory in Hethel, U.K. Tesla has no plans to move Roadster production.

Tesla, which has delivered about 30 Roadsters so far, announced last week it was ramping up production amid scorching demand. About 1,200 people have put down deposits to reserve a Roadster.

Tesla also announced recently a string of high-profile hires with deep industry expertise. Executive Vice President Mike Donoughe, who spent 24 years at Chrysler, is overseeing Tesla’s Model S and Roadster programs. Chief Financial Officer Deepak Ahuja was formerly controller at Ford. Chief Designer Franz von Holzhausen, former director of design for Mazda North America, is designing the Model S.

“Tesla has amazing momentum right now. The excitement within the company is palpable,” said Tesla Product Architect and Chairman Elon Musk. “The company has clearly taken production of all-electric vehicles to the next level, and the Model S assembly plant will dramatically accelerate our growth.”

Tesla vs Fisker, Fisker vs Tesla

At the end of the day, neither company will win when Tesla vs Fisker plays out in the courts. But it's going to happen anyways.

Tesla claimed in their lawsuit Fisker "used fraud and deceit to gain access to and exploit Tesla's highly confidential and proprietary information and trade secrets in order to develop a competing electric-hybrid sports sedan."

Fisker Automotive responded via press release to the lawsuit by Tesla saying they stole company secrets, and provided substandard design when putting together the styling of the Tesla White Star.

Tesla noted they had to reject the $800,000 design provided by Fisker.

"It caused a slight delay in White Star because we could not use the Fisker styling," Tesla Chairman Elon Musk told The New York Times. "The styling was substandard compared to what he unveiled for his product. He gave us an inferior work product, and it's obvious why."

Both cars are plug-in hybrids and will compete for customers when they arrive in the next couple of years.

Fisker fired back saying the Karma's powertrain was developed by Quantum Technologies and didn't use Tesla technology.

Source: Green Car Advisor - Fisker Denies Tesla Allegations of Stealing Secrets

Lotus Starts Their Own Hybrid and Electric Research and Development

Lotus has started their own hybrid and electric vehicle R&D Group. With the importance of hybrid and electric vehicles becoming more apparent and with the increasing amount of consultancy project work in this area, a separate R&D group has become necessary.

Hybrid and electric cars are nothing new to Lotus. Last year, they brought their prototype hybrid Proton Gen. 2 they called EVE (short for Efficient, Viable and Envrionmental) to the Geneva Auto Show. They also provide the platform for the electric Tesla Roadster.

"We have an intensely proactive growth plan over the next five years," said Mike Kimberley, Chief Executive Officer for Group Lotus. “Indeed, Lotus will reinforce its position as a world leader in green transport engineering."

Phil Barker was appointed as Chief Engineer of Hybrid and Electric Vehicle Technologies. He will report to Castleton-White in Powertrain. The former design and engineering consultant will have full responsibility over research and development at the newly formed center.

"We already have an incredibly strong team of engineers working in this area," said Barker. "The formalization of this group further enhances our ability to provide both low CO2 and zero emissions vehicle solutions to our clients."

"We are committed to driving forward with green technology for both Lotus Cars and our Engineering clients," said Castleton-White in a statement. "We have made significant developments over 20 years in hybrid and electric vehicle technologies with recent examples being the Lotus EVE (Efficient, Viable, Environmental) hybrid technology demonstrator and the Low CO2 project undertaken in collaboration with Continental Division Powertrain."

Tesla WhiteStar Hybrid and Electric Sedan Expected in 2009

Tesla, made famous by it's powerful all electric car, the Roadster, is looking to extend it's reach. By 2009, they hope to have a hybrid and an all electric WhiteStar, a four-door sedan, on the road.

The hybrid version will be a range extending vehicle (REV), with a small gas engine included to help recharge the electric motor. Range extending hybrids are different from the gas-electric hybrids on the road today, since they are moved totally by the electric motor alone. The gas engine is just there to help recharge the battery packs.

The current estimate puts the all electric range at 40 to 50 miles, but the gas engine allows you to extend your range to 400 miles. The electric model will probably have a range half of the REV model, giving Tesla a wider audience to market their vehicles.

Tesla is placing the pricetag somewhere between $50,000 and $70,000, depending on the options. The gas-electric model will cost a little less than the electric model, but the difference is minimal.

Tesla is competing with GM and the Chevy Volt, which is expected to be on the road in 2010 and the plug-in Prius from Toyota, also expected in 2010. The pricetag also means they will be competing in the luxury car market. The Volt is expected to cost between $30-$40,000 (closer to $40,000), and that may be without the batteries (GM has floated the idea they would lease the battery packs to their customers).

Source: Tesla's Next Car Is a Gas-Electric Hybrid | Autopia from Wired.com and Tesla to make gas-electric car | Green Tech blog - CNET News.com