Automotive News Europe - February 16, 2009 - 6

PAGE 6 · www.autonewseurope.com February 16 , 2009 Renault: Subsidies needed for e-cars Even with tax breaks, fears remain that high costs may slow electric vehicle uptake Lawrence J. Speer Automotive News Europe ROUEN, France Renault’s planned 2012 launch of electric cars in Europe is based around the continuation of generous government purchase price subsidies and no new taxes on electricity used as vehicle fuel, a top executive said earlier this month. The French carmaker expects France to maintain a ¤5,000 purchase price subsidy for buyers of very low or no-emission vehicles, said Jerome Perrin, head of Renault’s research, advanced studies and materials division. Perrin told participants in a conference sponsored by the Mov’eo auto industry cluster that Renault expects other European governments to maintain policies aimed at stimulating electric car purchases. “In 2012, we will need these conditions, even if it is clear that the situation will have to change by 2020,” Perrin said. 2 million by 2015-2020 Renault sees the European electric car market growing to a minimum 2 million units annually over the 2015-2020 period, Perrin said. The French carmaker is betting that its early launch will push sales of lithium-ion-battery-powered cars to “several hundred thousand units” annually by the latter part of the Renault sees the European electric car market growing to a minimum 2 million units annually over the 2015-2020 period. Above is Renault’s Z.E. Concept. decade, Perrin said. The economic slowdown has not diminished Renault’s enthusiasm – or continuing investment with Japanese alliance partner Nissan Motor – in electric car projects. Perrin recognized, however, that a number of as-yet unresolved issues could still slow the pending electric car launch. These include questions over the cost of operating an electric car for drivers and uncertainty over whether carmakers, car buyers, or third-party leasing companies will pay the high expected battery purchase prices. Serious questions also remain over how drivers will charge electric car batteries. Renault and other carmakers are working with public authorities and private sector firms to develop both a network of public battery charging stations as well as battery changing points at existing service stations. “Running battery changing stations is a service activity, and there’s no doubt we’re going to see an industrial investor step in and handle that,” Perrin said. Carmakers and utilities are working together at the European level to ensure standardization of charging infrastructure, Perrin added. The discussions will be ongoing throughout 2009, but should lead to the development of harmonized approaches from 2010, Perrin said. ANE Commentary The long wait for the electric car Today, the global auto community is glowing as though electrified: Wherever you look, prototypes of electric cars are being shoved under your nose in presentations, in promotional material, and at industry shows, most recently in Detroit. General Motors and Chrysler apparently see the electric car as a way out of their crises. Volkswagen CEO Martin Winterkorn considers it to be the future of driving, and the German government wants a million electrically powered vehicles on the road by 2020. Everyone seems enthusiastic. But has any one bothered to ask the consumer? There are surveys that produce the expected results: 46 percent of all motorists supposedly want electric drive. Are these the same people who previously said they would buy Volkswagen’s three-cylinder Lupo, or one of Toyota’s hybrids? Unfortunately, none of these vehicles has reached a market share of 46 percent. And it will probably be difficult for electric cars to do so in the foreseeable future. Ferdinand Dudenoperation. The manhoeffer, director of ufacture of lithium the Center for Autoion batteries and motive Research at electric motors rethe University of Apquires a lot of energy. plied Sciences in It’s hard to fathom Duisburg-Essen, bewhy American manlieves there will only ufacturers see their be electric cars by salvation in a tech2025. nology that won’t The facts argue generate profits until against a rapid boom 2020 at the earliest. Guido Reinking in electric vehicles. General Motors, Ford Greenpeace has Motor and Chrysler calculated that each are standing at the of the 50 electric Minis tested in precipice right now. Berlin emits 133.5 grams of carbon Additionally, the electric-car hype dioxide per kilometer driven, be- is distracting the automakers from cause the electricity used to their day-to-day business and more recharge the vehicles’ batteries is than a few potential buyers believe generated by coal-burning power they soon will be able to buy an elecplants. trical-powered car. That’s 29.5 grams more than the As a result, they are putting off Mini Cooper D. In the US, where their purchases. 450 Minis Es will soon take to the Someone should tell these people road, the estimated carbon dioxide that their current car will be a colemission is expected to be even lectible before they can afford an higher. electric car with comparable perforAnd I can’t wait to see the first en- mance. E-mail Automobilwoche Editor vironmental balance sheet that includes the energy consumed by the Guido Reinking at greinking@crainvehicles’ assembly as well as their com.de. Mini electric test delayed by surge of applicants Diana T. Kurylko Automotive News Europe Mini USA is taking longer than expected to select 450 lessees for its electric car because it has received 1,800 applications for a chance to test the car. Drivers who are chosen are expected to get cars in April. The program originally had been expected to begin at the start of the year. An additional 30 vehicles will be given to fleets and municipalities for the yearlong trial to determine whether the Mini E is commercially viable. New York will get 10 Mini E’s for a unit that patrols city streets looking for potholes and graffiti. Five cars also will go to Los Angeles. The trial is being run in metropolitan New York and Los Angeles. Mini USA has whittled the applicant list to about 1,000 people. Applications are being vetted by 16 dealers — five in New York, three in New Jersey and eight in Los Angeles. The dealers will lease and service the cars during the trial, said Jim McDowell, vice president of Mini USA. “We have to make sure their driving style fits with what we want,” he said. “If you drive 200 miles a day, that’s a In New York, the electric Mini will be used to patrol for potholes and graffiti. longer daily drive than our range.” Mini also required applicants to have a lockable garage so the company can install an electrical charge box. The monthly lease for a Mini E is $850 (about ¤656). The US trial originally involved 500 Mini E’s. But Mini reallocated 50 to Berlin. Parent company BMW wants to determine whether a market exists for an electric city car. The Mini E is the first vehicle made by BMW’s Munich-based Project i, which has been charged with developing alternative ANE powertrains for urban use. Germany’s ATU plans to lay off 900 workers Matthias Karpstein Automobilwoche After two waves of job cuts last year, the German service chain Auto-TeileUnger (ATU) has again announced layoffs. More than 900 employees will lose their jobs, according to IG Metall, the German metalworkers union. “ATU’s management has informed the business committee of the general works council that 1.5 positions per branch are being eliminated,” Stephen Maier, an IG Metall secretary, told Automobilwoche. ATU now has a network of about 630 branches. An ATU spokesman said the number of layoffs will “roughly reach 650 workers,” not counting part-time employees. The spokesman did not rule out store closings this year. But he said there are no plans for any at this time. Employees were caught by surprise. As late as last November, ATU CEO Michael Kern told Automobilwoche that “at present no job reductions are planned for 2009.” IG Metall’s Maier fears there will be more layoffs. “When you weaken the stores by reducing staff, you cannot meet the sales targets anymore,” he said. He added that a new wave of redunANE dancies is likely this summer. ATU boss Michael Kern faces more tough decisions.

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Automotive News Europe - February 16, 2009

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