Natural Capitalism - Sarasota

Antonov plc has secured its first confirmed customer in China—Lifan Motors—for its new TX6 six-speed automatic transmission system. The TX6 will be applied in Lifan’s mid-sized sedans from late 2010.

A 1.6-liter demonstration vehicle is currently at Shanghai Jiao Tong University, which will support more demonstrations to another five potential customers. These include Geely, which has expressed strong renewed interest in the Antonov technology now that the performance and efficiency of its transmission system has been proven.

In January 2007, Antonov had signed a Production License Agreement with Zhejiang Geely Automobile Gearbox Co, the transmission manufacturing subsidiary of Geely Automotive. This followed an announcement on 27 November 2006 that Geely and Antonov had signed Heads of Agreement for the license, which is for the production of the Company’s TX6 six-speed automatic transmission. (Earlier post.) However, in November 2007, Antonov’s board announced that the company would not go ahead with its cooperation with Geely. The initial production licence lapsed in September 2007.

Antonov signed an agreement with Loncin in September 2007 to work together to set up a manufacturing joint venture in Chong Qing, where the two companies will set up their automatic transmission manufacturing plant.

Antonov’s major innovation for an electronically controlled six-speed automatic transmission is based on new kinematics and structural design, which has achieved for the first time a combination of planetary gears and parallel transfers of power.

The traditional torque converter has been eliminated, reducing cost, weight and size, while improving mechanical efficiency. In addition, the transmission uses components similar to those of current production automatics, offering Chinese carmakers low development costs and the ease of introducing a new product into production. The transmission is protected by worldwide patents.

The US Department of Energy (DOE) selected six cost-shared research projects for the development and demonstration of alternative vehicle technology projects totaling a DOE investment of up to $14.55 million over three years, subject to annual appropriations. The projects were selected under three diverse topic areas: lithium-ion battery materials and manufacturing; thermoelectric heating, ventilation, and air conditioning; and aerodynamic heavy-duty truck trailers. (Earlier post.)

Private sector contributions will further increase the financial investment for a total of up to $29.3 million. The selections are part of DOE’s continuing work to develop high efficiency vehicle technologies and are not part of the previously announced $25 billion Advanced Technology Vehicles Manufacturing Loan Program for retooling. (Earlier post.)

Battery Materials and Manufacturing. DOE selected three projects for funding totaling up to $13.9 million in cost-shared cooperative agreements, with a DOE share of up to $6.85 million, subject to annual appropriations. The projects will focus on improving battery material performance and developing manufacturing processes to increase performance and decrease cost of plug-in hybrid electric vehicles (PHEV) batteries.

• FMC Corporation (Charlotte, NC) has been selected for negotiation of a three-year, up to $6.2 million, DOE share of up to $3.0 million, award for scaling up production of stabilized lithium metal powder for high energy Li-ion battery cathodes. These powders can be used to produce battery cells with reduced losses during the initial cell charging.

• BASF Catalyst LLC (Iselin, NJ and Elyria, Ohio) has been selected for negotiation of an award for a 30-month, up to $5.0 million, DOE share of up to $2.5 million, project to develop an industrial process for domestic production of low cost Li-ion battery cathode materials. BASF will use low cost precursors and known industrial methods to reduce the cost of Li-ion battery materials. They will partner with Farasis Energy, Inc. of Hayward, Calif., a company experienced in Li-ion battery development.

• 3M Company (St Paul, Minn.) has been selected for negotiation of an award for a three-year, up to $2.7 million, DOE share of up to $1.35 million, project aimed at developing advanced negative electrode materials for PHEV Li-ion batteries. The novel anode alloy material will result in higher battery capacity while maintaining good charge/discharge performance.

Thermoelectric Systems. DOE selected two projects totaling up to $13 million in cost-shared cooperative agreements, with a DOE share of up to $6.5 million, subject to annual appropriations. These projects were selected to accelerate the development of thermoelectric (TE) systems that provides the heating, ventilation, and air conditioning (HVAC) in vehicles.

The use of solid state TE devices to heat and cool a vehicle’s passenger compartment can increase vehicle efficiency by reducing engine load; by reducing or eliminating the need for conventional air conditioning refrigerants, these vehicles further reduce greenhouse gas emissions. TE HVAC enables the use of distributed cooling/heating units that cool/heat the occupants rather than the whole cabin and its components. While applicable to all commercial and passenger vehicles, TE HVAC is particularly attractive for hybrids and plug-in hybrids where an electrically driven air conditioning system can maintain occupant comfort even when the engine turns off.

• Ford Motor Company (Dearborn, Mich.) has been selected for negotiation of an award for a 36-month, up to $8.4 million, DOE share of up to $4.2 million, project to accelerate the deployment of light-duty automotive thermoelectric HVAC technology. This work will focus on the development of a zonal TE HVAC system, while reducing energy consumption of existing HVAC systems by one third. Partners include Visteon, BSST, DOE’s National Energy Renewable Laboratory, and Ohio State University.

• General Motors Corporation (Warren, Mich.) has been selected for negotiation of an award for a 36-month, up to $4.6 million, DOE share of up to $2.3 million, project to develop a system that provides thermal comfort equivalent to current HVAC systems while using significantly less energy. The team will design, test, and evaluate the thermoelectric system components and then integrate the components into a demonstration vehicle for testing and evaluation. Partners include Delphi Thermal Systems, University of California at Berkeley, and University of Nevada at Las Vegas.

Aerodynamic Trailers. DOE selected one project, with a total value of up to $2 million, with a DOE share of up to $1 million, to accelerate the development, evaluation, and deployment of advanced aerodynamic trailers that can significantly reduce fuel consumption of heavy-duty tractor trailers.

• Navistar International Corporation, (Fort Wayne, Ind.) has been selected for a 30-month project that will design, demonstrate, and bring to market a tractor trailer combination and tire package that can reduce the fuel consumption of a heavy vehicle by at least 15%. Following development, a commercial fleet will evaluate the benefits of the new technology package through real-world use. After the term of the project, the team members will make this fuel-efficient technology package available for sale. Team members include Frito Lay, Kentucky Trailer, Freight Wing, Michelin, and DOE’s Lawrence Livermore National Laboratory.

Washington University in St. Louis (WUSTL) has established the Consortium for Clean Coal Utilization. The consortium will foster work to explore co-combustion of coal with biomass or combustion of coal in pure oxygen, both of which can lead to reductions in carbon emissions. Other studies of approaches to carbon capture and storage also will be a part of the consortium’s work.

The new consortium will receive support in the form of research partnership commitments of $5 million each from Arch Coal and Peabody Energy and $2 million from Ameren, to be paid over five years.

The biomass aspects of the research of the consortium will help to address Missouri’s mandate that renewables constitute a fraction of the source of electricity generated in the state.

The consortium will operate under the umbrella of the International Center for Advanced Renewable Energy and Sustainability (I-CARES), which the University established in June 2007.

The University also will announce the establishment of the Consortium for Clean Coal Utilization at a news conference 8 December in Hong Kong at the Second International Symposium on Energy & Environment, organized by WUSTL’s McDonnell International Scholars Academy.

The 7-speed DSG. Click to enlarge.

Volkswagen is staging the world premieres of the New Golf Plus and low-emissions Golf BiFuel with autogas (LPG) and gasoline drive at the Bologna (Italy) Motor Show (3-14 December). In an Italian premier, VW is showing the Passat TSI EcoFuel (earlier post). VW also introduced the Scirocco Studie R and Passat CC Individual.

Golf Plus. The new Golf Plus will be offered with five gasoline engines (59 kW / 79 hp to 118 kW / 158 hp) and four new turbo-diesel engines (66 kW / 89 hp to 103 kW / 138 hp). All engines are four-cylinder, all engines are charged starting at 89 hp, all engines fulfill the Euro-5 emissions standard. And with the exception of the base variants, any of the gasoline and diesel engines may be paired with a 6-speed or 7-speed dual clutch transmission (DSG). (Earlier post.) This signifies the retirement of the classic automatic with torque-converter lockup clutch in the Golf Plus and its replacement by DSG technology.

After the Golf, in early 2009 Volkswagen will also fully convert the Golf Plus over to common rail diesel engines with four valves per cylinder. The TDIs output 66 kW / 89 hp; 77 kW / 103 hp; 81 kW / 108 hp; and 103 kW / 138 hp. At launch, TDIs will be available with 81 kW and 103 kW. All diesels feature a diesel particulate filter (DPF).

The 189 kph Golf Plus TDI with 108 hp consumes 5.1 liters fuel per 100 kilometers (46 mpg US) on average with CO2 emissions of 134 g/km. In the 2.0L Golf Plus TDI with 138 hp, fuel consumption is also 5.1 L/100km; 0.8 liter less than on the TDI with pump-nozzle technology. CO2 emissions have dropped from 153 to 135 g/km.

Golf BiFuel. The Golf BiFuel is factory-built for operation with autogas, which results in about 10% lower CO2 emissions compared to operation with gasoline.

VW says that the Golf BiFuel system offers two main advantages over aftermarket conversions. First, the car together with its fuel tanks is crash-tested as a total system. Second, the engine was specifically configured for LPG operation and is therefore more durable than engines originally configured as just gasoline engines.

In LPG mode, 1.6-liter 72 kW / 97 hp four-cylinder engine in the Golf BiFuel consumes 9.2 liters of LPG per 100 kilometers on average (149 g/km CO2). The autogas tank (41 liter effective volume at storage pressure of 8 to 10 bar)—with its space-saving installation in the spare wheel recess—and the 55-liter gasoline tank support a theoretical range of more than 1,100 kilometers (684 miles). In pure LPG mode, the car’s range is about 420 kilometers (261 miles).

Passat TSI EcoFuel. The Passat TSI EcoFuel, first introduced at the Geneva show earlier this year, is powered by a turbocharged direct-injection 1.4-liter TSI 110 kW (148 hp) engine running on either natural gas or gasoline. The Passat TSI EcoFuel is designed to be monovalent. Although the Volkswagen has a gasoline tank, it just serves as a fuel reserve. There are no plans for having a manual switchover from natural gas to gasoline mode.

The engine features both a supercharger and a turbocharger operating sequentially to provide relatively high power outputs from a small capacity engine. The natural gas Passat accelerates to 100 kph in 9.7 seconds.

With its monovalent focus, the turbo direct-injection engine was designed for natural gas operation. Since natural gas does not provide any supplemental lubrication and the pressures are greater, the valves, piston rings and pistons must be hardened or reinforced. At the same time, the turbocharger was made smaller, and special gas blow-in nozzles were integrated in the induction pipe. A newly developed control module manages the tuning and switchover between the two operating modes.

Fuel consumption for the Euro-5 compliant vehicle is 4.38 kilograms natural gas per 100 kilometers, with CO2 emissions of 119 g/km.

With the 22 kg of gas that is stored under the vehicle floor in three tanks plus 31 liters of gasoline, the Passat 1.4 TSI EcoFuel can cover a distance of nearly 900 kilometers (559 miles). By itself, the natural gas supply is enough for a range of 500 kilometers (311 miles).

Market launch of the Passat and Passat Variant TSI EcoFuel (with optional 7-speed DSG or standard 6-speed manual transmission) will take place in early 2009.

The 7-speed DSG offers improved fuel consumption and lower GHG emissions compared to other transmission options—even besting the manual. Click to enlarge. Source: VW

7-speed DSG. The new 7-speed automatic transmission is the first DSG for front-traverse installation. It is also the first with a dry sump. This not only saves considerable weight and improves the efficiency of the system but also makes the new gearbox more compact.

In the new 7-speed, the lower gears are more closely spaced, improving in-gear acceleration to aid in overtaking maneuvers, while the higher gears are lengthened to reduce loading on the engine and maximize economy. The maximum torque that can be transmitted is up to 250 Nm.

Electric car sales in the UK have more than halved this year. Figures obtained by CleanGreenCars show just 156 were sold from January to October 2008, compared to 374 for the same period in 2007.

News of the 58% drop comes as one of London’s two electric car distributors, Nice Car Company, was plunged into administration. Set up in 2006, the company had been selling an all-electric version of the French-made Aixam Mega. It had also planned to bring a range of new models, including a two-seater and MPV, to market by the end of the year. However, sales dropped to fewer than one car a week.

Perhaps the market for quirky electric vehicles like the Mega City and G-Wiz have had their day. Buyers could be holding off for cars from mainstream manufacturers, although they may still have years to wait before mass production is a reality.—Richard Bremner, editor www.cleangreencars.co.uk

There are around 1,100 all-electric cars currently on UK roads. The vast majority are owned by Londoners and are quadricycles rather than fully type-approved cars. Congestion-charge concessions for all-electric vehicles helped create the market, however customers have since turned away. Possible contributing factors include:

• Former Mayor of London Ken Livingstone’s proposals to exempt sub-120 g/km CO2 gasoline and diesel cars from the congestion charge. The proposals were subsequently scrapped by new mayor Boris Johnson, but many had turned away from all-electric motoring in the interim.

• In June, the City of London reversed its decision to exempt electric cars from parking charges.

• Cars such as the G-Wiz and Mega City have also faced criticism on safety.

The Lawrence Livermore National Laboratory (LLNL) and American Shale Oil, LLC (AMSO), a subsidiary of IDT Corporation have entered into a technical cooperation agreement to develop carbon sequestration technologies for in-ground shale-oil production processes.

AMSO CCR process. Click to enlarge.

Specifically, LLNL will partner with AMSO to study how to use depleted underground oil shale retorts to permanently store carbon dioxide generated during the oil shale extraction process. AMSO will provide technical expertise and oil shale core samples from its federal lease site.

AMSO’s patent-pending Conduction, Convection and Reflux (CCR) process distributes heat rapidly throughout the underground retort. The faster heat transfer in the process enables fewer wells to extract the shale oil, according to the company.

After the oil is extracted from shale, the depleted retort of heated, rubbelized underground shale may be suitable for capturing carbon dioxide, according to Dr. Alan K. Burnham, AMSO’s Chief Technology Officer.

AMSO holds a Research Development and Demonstration (RD&D) lease from the US Bureau of Land Management for a 160-acre parcel of federal land in northwest Colorado’s oil-shale rich Piceance Basin. Upon demonstration of an economically viable, environmentally acceptable extraction process, AMSO has a preference right to acquire a 5,120-acre commercial lease.

The flow of US greenhouse gas emissions in 2007, from their sources to their distribution across the US end-use sectors. Click to enlarge. Source: EIA

Total US greenhouse gas (GHG) emissions were 7,282 million metric tons carbon dioxide equivalent (MMTCO2e) in 2007, an increase of 1.4% from the 2006 level, according to Emissions of Greenhouse Gases in the United States 2007, a report released by the Energy Information Administration (EIA). Since 1990, US GHG emissions have grown at an average annual rate of 0.9%.

The transportation sector has led all US end-use sectors in emissions of carbon dioxide since 1999. However, with higher fuel prices and slower economic growth in 2007, emissions from the transportation sector in 2007 (2,104 MMTCO2) were essentially unchanged from their 2006 level (2,103 MMTCO2).

Transportation sector carbon dioxide emissions in 2007 were 431.8 million metric tons higher than in 1990, an increase that represents 44% of the growth in unadjusted energy-related carbon dioxide emissions from all end-use sectors over the period.

Petroleum combustion is the largest source of carbon dioxide emissions in the transportation sector, as opposed to electricity-related emissions in the other end-use sectors. Transportation sector emissions from gasoline and diesel fuel combustion generally parallel total vehicle miles traveled.

Increases in ethanol fuel consumption in recent years have also mitigated the growth in transportation sector emissions somewhat (emissions from energy inputs to ethanol production plants are counted in the industrial sector), according to the EIA.

US GHG emissions per unit of gross domestic product (GDP), or US GHG intensity, fell from 636 metric tons per million 2000 constant dollars of GDP (MMTCO 2e/million dollars GDP) in 2006 to 632 MMTCO 2e /million dollars GDP in 2007, a decline of 0.6%. Since 1990, the annual average decline in GHG intensity has been 1.9 percent.

The EIA report notes that the steady decrease in carbon intensity (carbon/GDP) has resulted mainly from reductions in energy use per unit of GDP (energy/GDP) rather than increased use of low-carbon fuels.

Total estimated US GHG emissions in 2007 consisted of 6,022 million metric tons of carbon dioxide (82.6% of total emissions); 700 MMTCO 2e of methane (9.6% of total emissions); 384 MMTCO 2e of nitrous oxide (5.3% of total emissions); and 177 MMTCO 2e of hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF 6) (2.4% of total emissions).

Emissions of carbon dioxide from energy consumption and industrial processes, which had risen at an average annual rate of 1.1% per year from 1990 to 2006, increased by 1.3% in 2007. Unfavorable weather patterns, where both heating and cooling degree-days were higher in 2007 than 2006, and an increase in the carbon intensity of electricity generation, driven by decreased availability of hydropower, both contributed to higher energy-related carbon dioxide emissions in 2007.

Methane emissions increased by 1.9%, while nitrous oxide emissions rose by 2.2%. Emissions of HFCs, PFCs, and SF6, a group labeled collectively as “high-GWP gases” because of their high heat-trapping capabilities, increased by 3.3%.

Resources

• Emissions of Greenhouse Gases in the United States 2007

At the Electric Drive Transportation Association (EDTA) conference in Washington, DC, GridPoint and GM are teaming to demonstrate the ability to actively manage plug-in vehicle load. In real-time, GridPoint technology is simultaneously managing the power flow to a fleet of plug-in vehicle resources, including a Chevy Volt battery pack located at GM’s Battery Lab in Warren, Mich., and a pool of simulated electric vehicle resources.

GridPoint software enables electric vehicles to be grid-aware, allowing the timing and pace of charging to be adaptively controlled to meet the needs of both drivers and the grid. Within parameters set by vehicle owners, utilities can charge vehicles in a manner that optimizes the grid—charging when renewable energy is available or when grid energy usage is low; thereby reducing grid stress and carbon emissions. During peak periods, utilities can also control the rate of charging to reduce demand spikes on the grid. (Earlier post.)

By embedding GridPoint’s software in electric vehicles, we enable utilities to offer reduced charging costs to customers and allow clean energy, such as wind and solar power, to be used as a source for recharging vehicles. Additionally, we help utilities eliminate the need to build new power plants that would otherwise be required to support the mass adoption of electric vehicles.—Tony Posawatz, Volt Vehicle Line Director, General Motors

Consumers who enroll in a utility’s charging program could receive significantly reduced charging rates, thereby reducing the overall cost of electric vehicle ownership. Additionally, the promotion of lower electric fuel costs offered by utility charging programs is expected to accelerate electric vehicle sales.

Posawatz and Karl Lewis, Chief Strategy Officer of GridPoint, delivered a plenary talk at the conference.

Leading utilities have initiated smart charging field trials to better understand the impact plug-in electric vehicles will have in their service areas. GridPoint’s software is currently controlling the charging behavior of converted plug-in Toyota Priuses and Ford Escapes in projects led by Xcel Energy, Duke Energy, Progress Energy, Austin Energy and Seattle City Light. These engagements originated with Seattle-based V2Green, acquired by GridPoint in September.

Celgard, LLC, a wholly-owned subsidiary of Polypore International, Inc., has received a $2.3 million contract from the United States Advanced Battery Consortium (USABC) to develop separator technology for lithium-ion batteries for hybrid-electric (HEV) and plug-in hybrid-electric (PHEV) vehicles.

The 18-month cost-share contract involves demonstrating performance characteristics of high-temperature melt integrity (HTMI) lithium-ion battery separators, focusing on abuse tolerances, production process definition and scale-up parameters. A standard definition and protocol for measuring HTMI will also be developed as a part of this contract.

Creating standardized tests for measuring HTMI will enable automakers to use common specifications when evaluating and sourcing lithium batteries. The tests will also provide benchmarks for battery performance and technological improvements.

This contract is the third in a series of research engagements for Celgard since 2002 from USABC, a division of the United States Council for Automotive Research (USCAR), the umbrella organization for collaborative research among Chrysler LLC, Ford Motor Company and General Motors Corporation.

Celgard is a global leader in the development and production of specialty microporous membranes, including separators used in rechargeable lithium-ion batteries for personal electronic devices such as notebook computers, mobile telephones, digital cameras, and other high performance applications such as power tools, hybrid-electric vehicles (HEVs), Electric Vehicles (EVs), and fuel cells.

In September, Celgard opened a 112,000-square-foot, $18 million expansion of production and warehouse facilities adjacent to its headquarters in North Carolina. The Charlotte expansion followed a $25 million acquisition of Yurie-Wide Corporation in South Korea in May, and continuing investment in a slitting operation in Shanghai, China.

The company supplies lithium-ion battery makers throughout the world from facilities in Charlotte and China, with production expected to begin in South Korea in the near future. Celgard has the lithium-ion battery separator industry’s broadest product portfolio including dry-process tri-layer (PP/PE/PP) and polypropylene (PP) monolayer lithium-ion battery separators, and polyethylene (PE) separators from its acquisition of Yurie-Wide.

US fuel ethanol production reached 806.3 million gallons in September 2008, a 43% increase year-on year, according to figures from the US Energy Information Administration. That figure was down 4% from the all-time monthly high of 842.5 million gallons in August 2008.

Total demand for ethanol in September was 867.1 million gallons, up 64% from the 531.6 million gallon demand in September 2007, according to the Renewable Fuels Association.

Imports in September 2008 reached 107.5 million gallons—more than four times the 26 million gallons imported in September 2007, and up 20% from the imports in August 2008.

Chrysler is asking Congress for a $7 billion secured working capital bridge loan by 31 December 31, 2008 to support ongoing operations as it continues to restructure its business, according to a summary of the presentation to be made by Chairman and CEO Bob Nardelli on 4 December. Like Ford (earlier post) and GM (earlier post), Chrysler cited the “unprecedented” drop in vehicle sales caused by the financial crisis as the fundamental cause of its financial distress.

Chrysler’s viability plan includes 24 major product launches through 2012, including a wide portfolio of hybrid electric-drive vehicles within several categories: Neighborhood Electric Vehicles (NEV), City Electric Vehicles (CEV), Range-extended Electric Vehicles (ReEV), and full-function battery electric vehicles (BEV).

Chrysler’s product plan includes the introduction of the first full function electric-drive model in 2010, along with the two-mode Dodge Ram hybrid, and expansion to additional electric-drive models by 2013. Chrysler will have close to 100 vehicles dedicated to testing and development within the Company, or assigned to Government and business evaluation fleets by the end of 2009. Chrysler plans to produce more than 500,000 electric-drive vehicles by 2013.

The company is currently selling its two-mode hybrid full size SUVs (Aspen and Durango) as limited volume specialty products.

In its submission to Congress, Chrysler also noted that it will continue to improve the performance of existing technology and support for flex fuel vehicles. For the 2009 model year, nineteen Dodge, Jeep and Chrysler models (73% of the product line), will offer improved fuel economy compared to previous models. The company has more than 1.7 million Flex Fuel Vehicles (FFV) on the road, and is on target to meet its earlier commitment of 50% of the fleet being flex fuel capable by 2012.

Chrysler based its projections on three sales scenarios: baseline, higher case and lower case. The baseline scenario uses an industry sales figure of 11.1 million units in 2009, increasing to 13.7 million units by 2102, with the higher and lower sensitivity cases varying by one million units up or down. (In contrast, the GM baseline scenario used a 12 million unit figure for 2009, increasing to 15 million in 2012. The downside scenario for GM is roughly comparable, however, at 12.8 million in 2012, compared to Chrysler’s projected downside of 12.7 million units in 2012.)

Although all the automakers have been suffering declining sales, Chrysler was especially hard hit—especially during the spike in gasoline prices earlier this year—due to the heavy emphasis on light trucks within its product mix. In November, Chrysler saw its sales down 47% from the year before. (Earlier post.)

Chrysler began its restructuring process in 2007, following its acquisition from Daimler by Cerebus. Since 2007, Chrysler has eliminated 1.2 million units of capacity, which represented more than 30% of its previously installed capacity, and will have separated more than 32,000 employees. Over the past 10 months alone, Chrysler reduced its fixed costs by $2.4 billion.

Chrysler ended the first half of 2008 with approximately $9.4 billion of cash. Ongoing declines in sales began depleting the cash reservers. Chrysler now estimates that at year end it will have approximately $2.5 billion available cash on hand.

Resources

• Chrysler’s Plan for Short-Term and Long-Term Viability

The state of Hawaii has become the latest addition to a growing list of countries and regions to partner with Better Place to establish a market and supporting infrastructure for electric cars. (Earlier post.)

Better Place Hawaii deployment map. Click to enlarge.

Better Place plans to begin permitting for the network in Hawaii within the next year and begin introducing vehicles within 18 months, with mass-market availability of electric cars in 2012. Hawaiian Electric Companies and Better Place Hawaii also signed a Memorandum of Understanding (MOU) to collaborate on the infrastructure and energy needs to power Better Place’s network of public charging spots and battery swapping stations with renewable energy.

Hawaii spends up to $7 billion a year on oil imports and drivers pay some of the highest gasoline prices in the US. The carbon produced from consumer vehicles accounts for nearly 20% of the state’s Greenhouse Gas (GHG) emissions.

The arrival of Better Place Hawaii furthers the progress of the Hawaii Clean Energy Initiative (HCEI) signed in January, with the goal to meet the state’s energy needs from 70% clean energy by 2030, as well as fostering economic growth and building the workforce of the future.

UK-based ACAL Energy Ltd. completed a £3.3-million (US$4.9 million) fundraising round. The funds will be used to take the company to the next stage of development of their fuel cell systems, based on a novel liquid cathode technology (FlowCath).

Led by CT Investment Partners LLP, all existing venture capital investors, Rising Stars Growth Fund (RSGF), NorthStar Equity Investors Ltd, Porton Capital Ltd and Synergis Technologies Ltd invested in the round and are joined by new investments from Solvay SA and a leading Japanese corporation.

FlowCath replaces more than 60% of total Pt catalysts found in conventional fuel cells with a proprietary low-cost liquid catalyst. This not only reduces the cost of the fuel cell but also provides significant durability and reliability benefits through system simplification and the elimination of the most common failure mechanisms found in standard fuel cells. The company plans to introduce a 1kW demonstration system in 2009.

As a cathode system the technology can be adapted to work with any fuel source including hydrogen, methanol, ethanol and sodium borohydride.

Replacing corn with perennial grasses has a beneficial effect on soil carbon and improves the carbon footprint of biofuels, according to a study by researchers at the University of Illinois. Their findings will appear in the journal Global Change Biology Bioenergy, the first issue of which will be published in January 2009.

Plants use the sun’s energy to convert carbon dioxide from the atmosphere into the organic carbon that makes up leaves, stems and other plant parts. As plants decay, this carbon goes into the soil. Organic carbon is an important component of soil health and also influences atmospheric carbon dioxide levels. Whenever the soil is disturbed, as occurs when land is plowed or cleared of vegetation, some of this carbon returns to the atmosphere in the form of carbon dioxide.

From the time that John Deere invented the steel plow, which made it possible to break the prairie sod and begin farming this part of the world, the application of row crop agriculture to the Midwest has caused a reduction of soil carbon of about 50 percent.

—Evan DeLucia, University of Illinois professor of plant biology at Illinois

Any debate on the environmental consequences of using plants to produce liquid fuels should also consider how each option affects soil carbon, DeLucia said.

The biggest terrestrial pool of carbon is in the soil. The top meter of soil holds more than three times the amount of carbon stored in either vegetation or the atmosphere, so if you do little things to change the amount of carbon in the soil it has a huge impact on the atmosphere and thus global warming.

—Evan DeLucia

The researchers analyzed published estimates of changes in soil organic carbon in landscapes converted from natural or agricultural land to biofuel crops. They focused on corn, sugar cane, Miscanthus, switchgrass and native prairie grasses. They also evaluated the impact of harvesting and using corn stover (the plant debris left over after corn is harvested) as a cellulosic biofuel source.

Their analysis showed that converting native land (grassland or forest) to sugarcane dramatically reduced soil carbon, creating a carbon deficit that would take decades to repay. While perennial grasses add carbon to the soil each year, DeLucia said, it could take up to a century for the sugar cane to rebuild soil carbon to former levels on native land. Harvesting the corn residue for cellulosic ethanol production also reduced the carbon in the soil. The more plant residue was removed, the more the soil carbon declined.

Planting perennial grasses on existing agricultural lands had the most beneficial effect on soil carbon, the researchers found. Although there was an initial drop in carbon as fields were converted from corn to Miscanthus, switchgrass or native perennial grasses, the loss was fairly quickly offset by yearly gains in soil carbon as the grasses became established.

Consistent with our hypothesis, the perennial feedstocks like Miscanthus and switchgrass start building soil carbon very, very early on. From a purely carbon perspective, our research indicates that putting perennial biofuel crops on landscapes that are dominated by annual row crops will have a positive effect on soil carbon.

—Evan DeLucia

The finding “seems to walk you right into the food-for-fuel debate,” DeLucia said, referring to the controversy over using agricultural land for fuel production. But because the US is already devoting about 20% of its corn crop to ethanol production, he said, it would make sense to eventually use that land to produce a much higher yielding biofuel feedstock that has the added benefit of increasing organic carbon in the soil.

DeLucia and his colleagues will present their findings this month at the 2008 Fall Meeting of the American Geophysical Union.

DeLucia also is an affiliate of the Institute for Genomic Biology and the Energy Biosciences Institute at Illinois.

During the four-year plan window, GM will invest approximately $2.9 billion in alternative fuel and advanced propulsion technologies; more than $2B of that goes to hybrid and EREV platforms; 26% of the total ($758M) goes to EREVs alone). Click to enlarge.

GM is asking Congress for term loans of up to $12 billion to provide adequate liquidity levels through 31 December 2009. In a four-year Restructuring Plan submitted to Congress, GM said it anticipates an initial draw of $4 billion in December 2008, another $4 billion in January 2009, and a third draw of up to $2 billion in the February-March time frame based on recent market developments, for a total draw of $10 billion by the end of the first quarter.

In addition to the bridge loans, the company is requesting a $6 billion line of credit to provide liquidity should a severe market downturn persist. GM’s intent is to begin to repay the loans as soon as 2011. Warrants issued as part of the loans would allow taxpayers to benefit from growth in the company’s share price that might result from successful completion of the plan.

The total of $18 billion in term loan and revolving credit facilities is larger than the amount discussed during the Congressional hearings of 18-19 November, and includes provisions for a “Downside” industry sales scenario, a topic of considerable inquiry during the hearings. Once GM has completed the restructuring actions laid out in the plan, it says it will be able to operate profitably at industry annual sales volumes between 12.5 and 13 million vehicles by 2012. This is substantially below the 17 million unit industry levels averaged over the last nine years, and GM considers it to be a reasonably conservative assumption for gauging liquidity needs.

US Industry and GM Liquidity outlook in three scenarios. Click to enlarge.

In drawing up the plan, GM used three scenarios for industry sales: Downside, Baseline and Upside. GM’s Baseline industry sales projection is 12 million units in 2009—a sharp decline from 16.5 million units in 2007, and even from the 13.7 million units expected this year. GM projects the industry will recover moderately to 14.5 million units by 2011 and 15 million units by 2012.

Against the Baseline Scenario, GM would make partial use of the temporary Federal loan facilities in 2009 and 2010, with repayments beginning in 2011 and with a full pay down by the end of 2012. The company’s current Baseline projections show that GM will be profitable on an automotive Adjusted Earnings Before Taxes basis in 2011, after the restructuring actions. Assuming the lower, depressed industry volumes under the Downside scenario, GM would make full use of the $18 billion temporary Federal loan facilities through most of 2012.

Any draws would be conditioned on achieving specific restructuring requirements in a plan submitted to Congress. GM is also proposing the creation of a Federal Oversight Board to monitor and authorize draws, including timing, amounts and performance metrics consistent with the plan.

Key elements of the plan include:

• Continued shift of the portfolio to smaller, more fuel-efficient vehicles; full compliance with the new CAFE standards of the 2007 Energy Independence and Security Act; and extensive investment in a range of advanced propulsion technologies;
• Rationalization of brands, models and retail outlets;
• Reduced wage and benefit costs, including further reductions in executive compensation;
• Further manufacturing and structural cost reductions through increased productivity and employment reductions; and
• Balance sheet restructuring and supplementing liquidity via temporary Federal assistance.

“Shortage of liquidity does focus the mind.”—Fritz Henderson, GM president and COO

Product Portfolio and Fuel Efficiency. GM says it will substantially change its product mix over the next four years, and launch predominately high-mileage, energy-efficient cars and crossovers. Key elements of the product strategy include:

• Introduction of the smallest 4-passenger vehicle on the US market, achieving higher fuel economy that the 2-passenger smart fortwo, the most fuel-efficient non-hybrid vehicle in the US market today.

• In 2009, the Plan includes seven new vehicle launches in the United States, all of which will be either car or crossover models. In 2009-2012, 22 of 24 new vehicle introductions will be cars and crossovers; 20 of these models will come from GM engineering centers having a long history of designing vehicles for markets with $6-$8 per gallon gasoline. By 2012, approximately 68% of General Motors’ car sales volume in the United States will be models derived from new, global architectures.

• In 2012, more than 50% of GM’s new vehicle sales will be flex-fuel capable.

• In addition to the six hybrids it offers today, GM will introduce the VUE Two-Mode hybrid, along with the Silverado and Sierra two-mode hybrids in 2009. By 2012, GM will offer 15 hybrid models.

• Downsizing, supported by more extensive use of turbocharging: 6-cylinder engines replace 8-cylinder units; 4-cylinder engines replace 6-cylinder units. 4-cylinder engine usage will increase by 42% by 2012, and fuel-saving 6-speed automatic transmission volume will increase by 400%, to more than 90% of GM’s US automatic transmission sales volume.

• The Volt Extended Range Electric Vehicle will launch in 2010. The company’s product plan includes additional vehicles utilizing Volt’s extended-range electric vehicle system and potentially, the assembly of battery packs in the United States.

Targeted fuel efficiency improvements during the course of the plan. Click to enlarge.

During the 2009-2012 term of the plan, GM will invest approximately $2.9 billion in alternative fuel and advanced propulsion technologies that offer fuel economy improvements ranging from 12% to 120%, compared to conventional gasoline engines. More than $2 billion of that will be applied to the main hybrid platforms offered by the company (BAS, two-mode and EREV); 26% percent of the total ($758 million) is to be applied to extended-range electric vehicles like the Volt. GM says that it will also continue to invest in hydrogen fuel cell technology.

On 17 November, GM filed its first Section 136 loan application for retooling funds (earlier post) with the Department of Energy, related to eight specific, high fuel-efficiency projects, in the total amount of $3.6 billion. Applications were made for the Chevrolet Volt, Chevrolet Cruze and Saturn Two-Mode Hybrid, which launch in the next 24 months. Applications were also made on behalf of several fuel-saving technologies, including hybrid and electric vehicle components, flex-fuel engines and automatic transmissions.

A second application, related to additional high-mileage vehicle and powertrain programs in development, is targeted for submission this week, and is estimated at $4.7 billion. In both cases, GM has made significant fuel efficiency-related investments that, as a result of having been made prior to the enactment of Section 136 funding, do not qualify for such funding.

Brands, Models and Dealerships. In the US, GM will focus its product development and marketing efforts on four core brands—Chevrolet, Cadillac, Buick and GMC—which account for 83% of current sales. Pontiac will be a specialty brand with reduced product offerings within the Buick-Pontiac-GMC channel. Hummer has recently been put under strategic review, which includes the possible sale of the brand, and GM will immediately undertake a global strategic review of the Saab brand. As part of the plan, the company also will accelerate discussions with the Saturn retailers, consistent with their unique relationship, to explore alternatives for the Saturn brand.

The plan focuses GM’s resources in the US around a smaller, more profitable set of nameplates (40 by 2012, compared to 48 today and 63 in 2004) with further consolidations in GM’s dealer network planned. From 6,450 outlets today, GM will shrink to 4,700 by 2012. In 2000, the dealer count was 8,138 outlets.

Reduced Wages and Benefits. The plan calls for further reduction in the number of executives and total compensation paid to senior leadership. For example, Wagoner will reduce his salary to $1 per year and receive no bonus for 2008 or 2009. The next four most senior officers (Executive Vice Presidents and above) will reduce their total cash compensation by approximately 50% in 2009, which includes no bonus paid for 2008 and 2009 and a 30% salary reduction for the President and COO, and 20% salary reductions for the remaining three.

The plan also requires further changes in existing labor agreements, including job security provisions, paid time-off, and post-retirement health-care obligations. The common stock dividend will remain suspended during the life of the loans.

Manufacturing and Structural Costs. GM will accelerate its current efforts to reduce manufacturing and structural costs, building on significant reductions already made over the past several years. By 2012, GM’s US employment (hourly and salaried) will be between 65,000-75,000—down from 96,537 this year, and down from 191,465 in 2000. The number of US Powertrain, Stamping and Assembly Plants will decline to 38 by 2012, from 47 this year (and from 64 in 2004). The proportion of flexible assembly plants will increase to 77% by 2012, up from 60% today, versus 22% in 2000.

GM currently has the most productive assembly plants in 11 of the 20 product segments measured by the Harbour Report, and it is a global leader in workplace safety. With the recently negotiated wage rates, turnover expected in the workforce, planned assembly plant consolidations, further productivity improvements in the plan, and additional changes to be negotiated, GM’s wages and benefits for both current workers and new hires will be fully competitive with Toyota by 2012.

With respect to the corporate aircraft that drew so much flak during the earlier Congressional hearings, GM is immediately ceasing all corporate aircraft operations, impacting approximately 50 hourly and salaried employees. GM is currently exploring options for transferring the aircraft to another charter service operator and/or pursuing disposal of the aircraft. These actions are in addition to recently announced decisions to reduce the total number of corporate aircraft.

Balance Sheet Restructuring. Under the plan, GM would significantly reduce the debt currently carried on its balance sheet. GM plans to engage current lenders, bond holders and its unions to negotiate the needed changes. GM’s plan would preserve the status of existing trade creditors and honor all outstanding warranty obligations to both dealers and consumers, in the US and globally.

Resources

• Restructuring Plan for Long-Term Viability (2 Dec 2008)

Chemrec has completed a US$20 million funding round to be used to support the commercialization of its black liquor gasification technology. (Earlier post.)

The investment was led by Environmental Technologies Fund (ETF), with support from existing investors, Vantage Point Venture Partners and Volvo Technology Transfer. Swedish company Nykomb AB, which helped develop the Chemrec technology, remains an investor in the Company.

Chemrec’s black liquor gasification (BLG) technology converts the black liquor waste stream from the paper pulping process into synthesis gas. The synthesis gas can then be processed into a variety of fuels—likely dimethyl ether (DME) and methanol (MeOH), although fuels such as Fischer-Tropsch diesel (FTD), Synthetic Natural Gas (SNG), or hydrogen are also possible.

The global potential of this is equivalent to more than 45 billion liters a year of gasoline, according to Chemrec—2% of global fuel demand.

Market share of light trucks climbed back up to 51.9% in November. Click to enlarge.

Total US sales of light-duty vehicles (LDV) plunged 36.7% in November from November 2007 to 746,789 units, according to figures from Autodata. There were 25 selling days in November 2008 and November 2007. Year-to-date, total LDV sales are down 16.3% from 2007.

Sales of passenger cars dropped 36.5% year-on-year, while sales of light trucks dropped 36.9% year-on-year. The market share of new light trucks in November pushed back up to 51.9%—the highest level since February. Year-to-date passenger car sales are down 8.3%, while year-to-date truck sales are down 23.4%.

There were about 34 percent, or 400,000, fewer vehicles sold this November in the industry than a year ago—this is the annual volume of two full production plants that have simply evaporated in a single month. The global economic crisis and credit freeze have had a very negative impact on the vehicle market which runs on consumer confidence and available financing.

—Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing

General Motors. GM reported sales of 154,877 vehicles in November, down 41% compared with a year ago. Car sales were off 44% and truck sales were down 39%. The Malibu, however, in one of the rare instances of success for any of the manufacturers, posted a 31% increase in sales in November to 9,469 units. Year-to-date Malibu sales are up 39%.

GM delivered a total of 1,335 hybrid vehicles in the month. Hybrid sales included: 404 hybrid Chevrolet Tahoe, 190 GMC Yukon and 173 Cadillac Escalade 2-mode SUVs delivered. There were 195 Chevrolet Malibu, 45 Saturn Aura and 328 Vue hybrids sold in November. Hybrids represented 10% of combined Yukon/Tahoe retail sales and 12% of Escalade retail sales in the month. So far in 2008, GM has sold a total of 11,884 hybrids.

Toyota. Toyota Motor Sales (TMS), USA reported November sales of 130,307 vehicles, a decrease of 33.9% from last November. Passenger car sales were down 32.3% to 76,954 units, while light truck sales were down 37.4% to 46,071 units. Toyota’s relative best performer was the Corolla, which saw a sales decline of only 12.8%.

Sales of the Camry were down 28.8% to 25,224 units, while the Camry Hybrid was down 57.5% to 2,174 units. Sales of the Prius dropped 8.3% to 8,660 units.

Ford. Ford turned in the best relative performance of the major automakers, with only a 30% total decline in vehicle sales—118,818 units from Ford, Lincoln and Mercury dealers.

Passenger car sales were down 31.5% to 37,272 units; crossover sales were down 33.8% to 22,016 units; SUVs were down 39.8% to 10,586 units; and trucks and vans were down 23.5% to 48,944 units.

November marked the official introduction of the all-new F-150. F-Series sales totaled 37,911 (an 18.6% drop) including nearly 5,000 all-new 2009 model F-150s.

Chrysler. Chrysler LLC reported total November 2008 US sales of 85,260 units, down 47% from the same month last year.

2008 will go down as unlike any other year in the industry, and thus, comparisons to 2007 sales have become irrelevant. In this environment, we need to evaluate sales based on month-to-month trends, with the last two months of the year being especially important to determine if we have established a base for sales in 2009. Our goal is to fight to maintain our share of the retail market month-to-month by keeping a strong advertising and incentive presence in the marketplace and finding financing solutions for our customers, roughly 75% of whom finance their vehicles with dealer assistance.

—Jim Press, Chrysler LLC Vice Chairman and President

Chrysler passenger car sales were down 59% to 20,475 units; truck sales were down 42% to 64,785 units. In another rare bright spot, sales of the full-size SUV Aspen were up 33% to 2,013 units. The company reported 35 sales of its Aspen and Durango two-mode hybrids.

Honda. American Honda Motor Co. posted November sales of 76,233, a decline of 31.6% compared to record November 2007 results. Passenger car sales were down 30.7% to 45,225 units; truck sales were down 32.9% to 31,008 units.

Sales of the Accord were down 38.1% to 17,430 units, while sales of the Civic dropped 29.6% to 17,690 units. Sales of the Civic Hybrid dropped 67.8% to 1,043 units.

Nissan. Nissan North America reported sales of 46,605 units—a decrease of 42.2% year-on-year. Sales of passenger cars were down 37.3% to 29,377 units; sales of trucks were down 49% to 17,228 units.

Sales of the Altima were down 45.3% to 10,828 units. Nissan did see a slight increase in Murano sales, posting a 4.7% gain to 4,162 units.

The prototype J1772 unit. Click to enlarge.

Coulomb Technologies (earlier post) is showcasing prototypes of Level 2 high power networked charging stations that will comply with the new SAE J1772 Electric Vehicle Conductive Charge Coupler Specification at the EDTA conference 2-4 December in Washington, DC.

SAE has been making modifications to the older J1772 REV NOV 2001 standard, moving toward a smaller (and less expensive) coupler made by Yazaki to replace the former Avcon connector. The new SAE J1772 standard is being finalized now, and may be balloted by the first quarter of 2009.

The J1772 standard specifies a specific 5-pin plug (two power, two signal, one ground) for single-phase supply up to 80A.

Preliminary vehicle inlet design. Click to enlarge. Preliminary vehicle coupler design. Click to enlarge.

The industry in the US will standardize on the J1772 coupler; because the plug on the car can be a costly item in moderate volumes, standardization is the preferred route for the industry. The California Air Resources Board (ARB), for example, which incorporates the older J1772 standard in its recharging requirements, will update the requirements to the new standard.

The connector may also become the standard in Japan, where the SAE and the Japanese standard body are making good cooperation. Although a proposal has been made to incorporate the SAE connector interface in IEC standards although Italy and Germany are proposing alternative connectors. (Design for single-phase power is problematic for countries where 3-phase is also used, notes Cyriacus Bleijs, Chairman IEC TC69.)

In an October update on the J1772 process to an EPRI infrastructure working group for plug-in hybrids (PHEVs), GM’s Gery Kissel said that due to potential arcing damage, the J1772 Task Force is recommending the coupler design for AC Level 1 and 2 charging only. The AC level 1 definition was changed to 120 VAC, single-phase, 20A to be consistent with the NEC. A Level 3 (fast charge) working group has been created, chaired by Dave Francis of AeroVironment.

In a July draft of the new EV charging requirements, ARB staff noted that:

This new Yazaki coupler will, however, be able to deliver much more than the former Level II power limit (6.6 kW), perhaps as much as 16-19 kW. This medium power capability is necessary in order to obtain reasonable charge times with upcoming long-range BEVs. Tesla Motors will be shipping their Roadster in 2008 with a 52 kWhr battery. With the former Level II charge limits of 6.6 kW, charge times for a 52 kWhr battery would become unreasonably long, perhaps as much as 7-8 hours. This charge time duration would extend beyond preferred late-evening low-cost Utility rate schedules, while a medium-power 3-4 hour charge could be scheduled to “fit” better into these upcoming schedules.

It is assumed that high power capable EVs (50+ kW) would now make use of a separate on-vehicle higher-power inlet standard that is yet to be developed. Overall, the attractiveness of all PHEVs and BEVs making use of an consistent, almost worldwide J1772-Yazaki-based low-to-medium power connection standard more than outweighs the loss of potential high power capability with the former Avcon connector. The need for and attractiveness of higher “fast charge” power capability for EVs is not yet proven to be necessary to market BEVs.

Resources

• SAE J1772 Task Force Update for IWC (Infrastructure Working Council) PHEV (June 2008)

• Proposed Test Procedure Modifications to Address Plug In Hybrid Electric Vehicles (ARB)

• Minutes of the October PHEVWG Meeting

• Charging infrastructure for electric vehicles and PHEVs (Cyriacus Bleijs, Chairman IEC TC69)

• ARB July 2008 draft of EV Charging Requirements

Transport for London (TfL) unveiled a range of new, single- and double-deck hybrid buses for London, the first stage in a major expansion of the its hybrid bus fleet.

By the end of January next year, the number of hybrid buses in the Capital fleet will more than quadruple to 56 buses—the largest fleet of hybrid buses in the UK. Twenty-five new hybrids will go into service this month; a further 18 hybrid buses will join the fleet early in 2009, with a further 300 hybrid buses to be in operation by 2011.

Both TfL and Mayor of London Boris Johnson are committed to the introduction of hybrid technology and by 2012, TfL expects all new buses joining the fleet will be hybrid. At a rate of 500 buses a year, it is expected to be the largest roll out of hybrid buses in Europe.

The bus industry has responded to that commitment and several major manufacturers have developed hybrid buses specifically for the London fleet.

Alexander Dennis, Volvo and Optare have now produced their first hybrid buses for London, while Wrightbus has produced a new double-deck hybrid, using different technology to that used in the 13 hybrids it already has operating in the London fleet.

The 8,000-strong London Buses fleet is the cleanest in the UK. Twenty-seven percent of the fleet meet Euro II standards and are fitted with particulate filters, 66% meet Euro III and are fitted with particulate filters. Seven percent meet the latest Euro standard of Euro IV.

Overview of Ford’s technology sustainability plan. Click to enlarge.

Ford Motor Company this morning submitted to Congress a business plan detailing a pathway to profitability and requested a “stand-by” line of credit in the amount of up to $9 billion at Government borrowing rates, for a 10-year term, with TARP conditions, in case the current economic crisis worsens or there is a bankruptcy of a major competitor. (TARP is the $700-billion Troubled Assets Relief Program for the financial sector.)

Ford said it will accelerate the transformation of its North American automotive business through aggressive restructuring actions and the introduction of more fuel-efficient vehicles—including a broader range of hybrid-electric vehicles and the introduction of advanced plug-in hybrids and full electric vehicles.

Despite the serious global economic downturn, Ford said it does not anticipate a liquidity crisis in 2009—barring a bankruptcy by one of its domestic competitors or a more severe economic downturn that would further cripple automotive sales and create additional cash challenges.

We are acutely aware that our domestic competitors are, by their own reporting, at risk of running out of cash in a matter of weeks or months. Our industry is an interdependent one. We have 80 percent overlap in supplier networks. Nearly 25 percent of Ford’s top dealers also own GM and Chrysler franchises. That is why the collapse of one or both of our domestic competitors would also threaten Ford.

For Ford, the availability of a government line of credit would serve as a critical backstop or safeguard against these conditions as we drive transformational change in our Company. Accordingly, given the significant economic and market risks that exist, Ford respectfully requests that government funding be made available to us, in the form of a “stand-by” line of credit, in the amount of up to $9 billion. This line of credit would be a back-stop to be used only if conditions worsen further and only to the extent needed.—Ford Motor Company Business Plan

Ford’s submission to Congress included new details about Ford’s future plans and forecasts, including:

• Based on current business planning assumptions—including US industry sales for 2009, 2010 and 2011 of 12.5 million units, 14.5 million units and 15.5 million units, respectively—Ford expects both its overall and its North American automotive business pre-tax results to be breakeven or profitable in 2011, excluding any special items.

• As part of a continuing focus on building the Ford brand, the company said it is exploring strategic options for Volvo Car Corporation, including the possible sale of the Sweden-based premium automaker. The strategic review is in line with a broad range of actions Ford is taking to strengthen its balance sheet and ensure it has the resources to fund its plan. Since 2007, Ford has sold Aston Martin, Jaguar, Land Rover and the majority of its stake in Mazda.

• Ford’s plan calls for an investment of approximately $14 billion in the US on advanced technologies and products to improve fuel efficiency to improve fuel efficiency by more than 25% during the next seven years. Half of the Ford, Lincoln and Mercury light-duty nameplates by 2010 will qualify as “Advanced Technology Vehicles” under the US Energy Independence and Security Act, increasing to 75% in 2011 and more than 90% in 2014. Ford said it has included these projects in its application to the Department of Energy for loans under that Act and hopes to receive $5 billion in direct loans by 2011 to support Ford’s investment in advanced technologies and products.

• Ford will improve the fuel economy of its fleet an average of 14% for 2009 models, 26% for 2012 models and 36% for 2015 models, compared with the fuel economy of its 2005 fleet. Overall, Ford expects to achieve cumulative gasoline fuel savings from advanced technology vehicles of 16 billion gallons from 2005 to 2015.

• Next month at the North American International Auto Show in Detroit, Ford will discuss in detail the company’s accelerated vehicle electrification plan, which includes bringing to market by 2012 a family of hybrids, plug-in hybrids and battery electric vehicles. The work will include partnering with battery and powertrain systems suppliers to deliver a full battery electric vehicle (BEV) in a van-type vehicle for commercial fleet use in 2010 and a BEV sedan in 2011. Ford said it will develop these vehicles in a manner that enables it to reduce costs and ultimately make BEVs more affordable for consumers.

• Ford said that it is now developing its next generation full hybrid technology, which includes plug-in capability, for vehicles in 2012 and beyond. It is targeting a substantial increase in hybrid volume through a greater than 30% reduction in cost, installation of hybrid capability in global platforms and hybrid vehicles that are uniquely styled.

• To make significant progress in electrification, Ford supports establishing a US public/private partnership to accelerate the development of lithium-ion battery capability, including supporting infrastructure, within the United States.

• The 2007 UAW-Ford negotiations resulted in significant progress being made in reducing the company’s total labor cost. Given the present economic crisis and its impact upon the automotive industry, however, Ford is presently engaged in discussions with the UAW with the objective to further reduce its cost structure and eliminate the remaining labor cost gap that exists between Ford and the transplants.

• As previously was announced, Ford plans two additional plant closures this quarter and four additional plant closures between 2009 and 2011. The company also has announced its intent to close or sell what will be four remaining ACH plants. The company said it will continue to aggressively match manufacturing capacity to real demand.

• Ford will continue to work to reduce its dealer and supplier base to increase efficiency and promote mutual profitability. By year end, Ford estimates it will have 3,790 US dealers, a reduction of 606 dealers overall—or 14% from year-end 2005—including a reduction of 16% in large markets. In addition, Ford has been able to reduce the number of production suppliers eligible for major sourcing from 3,400 in 2004 to approximately 1,600 today, a reduction of 53%. Ford eventually plans to further reduce the number of suppliers eligible for major sourcing to 750.

• Ford also confirmed today that it has decided to sell its five corporate aircraft. In addition, Ford CEO Mulally announced that, should Ford need to access funds from a potential government bridge loan, he would work for a salary of $1 a year as a sign of his confidence in the company’s transformation plan and future.

• Ford also reiterated that it is canceling all bonuses to be paid in 2009 for all management employees worldwide and foregoing bonuses for all employees in North America. The company also will not pay merit increases for North America salaried employees in 2009.

Changes in product mix and investment. Click to enlarge.

Ford said it is moving fully ahead with plans it announced this summer to leverage the company’s global product strengths and bring more smaller, fuel-efficient vehicles to the US. The plan includes delivering best-in-class or among the best fuel economy with every new vehicle introduced. Ford also is introducing industry-leading, fuel-saving EcoBoost engines and doubling the number and volume of hybrid vehicles.

This product acceleration will result in a product portfolio with a complete family of small, medium and large cars, utilities and trucks. Ford is increasing its car and crossover product segment mix from 48% to 60%, and will reduce the truck, van, and sport utility vehicle (SUV) product mix from 52% to 40%. It is increasing its investment allocation in cars and crossovers from 59% to 82% of total investment.

Resources

• Ford Motor Company Business Plan

• Congressional submission appendix