Ford Announces Accelerated Plans For New HEV's, PHEV's and BEV's

Bill Ford, Ford's Executive Chairman, used the Detroit Auto Show to unveil their aggressive plans for bringing green autos to market. They will have two new battery electric vehicles (BEV's) as well as plug-in hybrid electric (PHEV) and next generation hybrid vehicles. Their plan is almost as robust Chrysler's. I really look forward to seeing these vehicles in the showrooms.

From Green Car Congress:

Ford Executive Chairman Bill Ford unveiled an accelerated plan to bring next-generation hybrid-electric (HEV); a plug-in hybrid electric (PHEV); and battery-electric (BEV) vehicles to market quickly and more affordably during the next four years.

The plan, unveiled at the 2009 North American International Auto Show, leverages Ford’s work with a range of partners—utilities, suppliers, policymakers and universities—in areas including batteries, manufacturing and infrastructure. For starters, Ford will introduce in North America:

• A new battery electric commercial van in 2010. In the UK, Ford is collaborating with Tanfield to offer battery-electric versions of the Ford Transit and Transit Connect commercial vehicles for fleet customers in the UK and European markets. (Earlier post.)

• A new battery electric small car in 2011 to be developed jointly with Magna International. The electric powertrain will be applied in a new-generation C-sized global vehicle platform. The BEV will first be introduced in North America, with the potential to migrate to the European and Asia Pacific markets down the road.

  Ford plans to introduce electrified powertrains (battery electric or plug-in hybrid) into two major new global product platforms: a new Focus-size C-car platform and another Fusion-size, CD segment platform. By 2012, Bill Ford said, the company will have four high-mileage BEVs. (The likely development direction for BEVs is to move onto smaller platforms—e.g., down to a B-size platform—from the C-size, according to Barb Samardzich, Ford Vice President of Powertrain Engineering.)

• Next-generation hybrid vehicles, including a plug-in version by 2012.

New BEV by 2011. Ford is collaborating with Magna International on the new battery electric vehicle targeted for 2011. Magna will provide the BEV electric traction motor, transmission, motor controller, Lithium-ion energy storage system, battery charger and related systems. Magna will also share in the engineering responsibility to integrate the electric propulsion system and other new systems into the vehicle platform architecture.

The BEV technology is already applied in a Ford Focus mule that has been in road testing for the past six months.

The 23 kWh battery pack comprises seven modules of 14 lithium-ion cells. The battery arrays are packaged in the vehicle trunk and underseat space. The new electric vehicle has a targeted pack range of up to 100 miles on a single charge. The system currently under test in the mule is delivering 80 miles on a single charge. The BEV test vehicle can be charged from either a standard 220-volt or 110-volt power outlet, with respective charge times of 6 or 12 hours.

A motor controller and inverter convert the battery’s direct current to AC. A 100 kW permanent-magnet, chassis-mounted electric traction motor operates on three-phase alternating current (AC). The BEV uses a single-speed transmission.

The powertrain, including the motor and gearbox, are packaged under the hood just like a gasoline powertrain, using existing powertrain mounts. This makes the electrified vehicle uncompromised in terms of robustness and low noise and vibration.

The test unit incorporates key components from Ford’s hybrid technology, including the electric climate control system. The high-voltage air-conditioning compressor is the same found in the new 2010 Ford Fusion Hybrid.

In October 2008, Magna Electronics, an operating unit of Magna International Inc., acquired BluWav Systems LLC (formerly Wavecrest Laboratories), a developer and supplier of controls, motors and energy-management systems for hybrid electric vehicles, plug-in hybrid vehicles and battery electric vehicles. (Earlier post.)

BluWav had concentrated on five main product areas: Motor design; Motor control hardware, software, and drive electronics; Vehicle requirements analysis, system optimization, and performance validation; Vehicle control systems; and Energy storage systems.

Grants and Partnerships. The US Department of Energy (DOE) also has awarded Ford Motor Company a $10 million grant for research, development and demonstration of plug-in hybrid electric vehicles (PHEV). Ford received the grant for the continued development of a demonstration fleet of 20 PHEVs. The total project cost is $20 million; the government will fund $10 million of the program.

In June, Ford delivered the first flexible fuel capable plug-in hybrid electric SUV to the Department of Energy. (Earlier post.) The Ford Escape Plug-in Hybrid, capable of running on gasoline or E85, is part of the demonstration fleet Ford is developing in partnership with Southern California Edison, the Electric Power Research Institute and Johnson Controls-Saft.

The Electric Power Research Institute (EPRI) is collaborating with Ford Motor Company on a three-year analysis to evaluate technical approaches for integrating PHEVs into the nation’s electric grid system, a key requirement to facilitate widespread adoption of the vehicles.

Ford also has entered into a four-way “Eco-Partnership” in China to expand its global expertise with electric-powered vehicles. Ford, Changan Auto Group and the cities of Chongqing, China and Denver, Colo., are exploring ways to develop projects to help further energy security and promote economic and environmental sustainability. Areas of focus could include developing electrified vehicle technologies, green city planning, efficient urban transportation and grid integration.

2009 Detroit Auto Show - NAIAS

It's that time of year once more. The Detroit Auto Show begins this weekend with the press having the floor all to themselves. The show runs for two weeks and there is great speculation as to what, if any, surprises we will see.

During these crushingly depressed times, how can the automakers show their optimism and enthusiasm? All auto sales are down between 30 and 40 percent and GM and Chrysler are still on the brink of bankruptcy. Will they show us anything that could possible increase their sales and cause the public to get excited? Even with massive rebates and incentives, sales were way down in December, so what will it take to get customers buying again? It still looks like business as usual to me.

Toyota will have their new Prius which is basically the same as the old Prius, only slightly larger and slightly more powerful. Toyota refuses to add a plug.

Honda will have their Insight, which might be the best car announced yet. It gets comprable fuel economy as the Prius but is supposed to sell for $18,000 MSRP. I would be tempted to buy one, but still, there is no plug.

GM has the Volt, but it will still not be ready for two more years. A ridiculously long wait.

Ford and Mercury have a new hybrid that also gets mileages similar to the Prius. This could be another vehicle worthy of purchase, however, still no plug.

Chrysler has three or four EV's, but they are not due for two years as well.

In case you couldn't tell, my mantra as of late is, "No plug, no deal!"

White House Authorizes 13.4 Billion to US Automakers

Finally.

President Bush has just announced that the embattled US automakers will receive 13.4 billion in loans from the Government. That sure is a peculiar number.

President Bush made the announcement this morning at 9 am. Bush also stated that 4 billion more may be used in February 2009.

"The terms and conditions of the financing provided by the Treasury Department will facilitate restructuring of our domestic auto industry, prevent disorderly bankruptcies during a time of economic difficulty, and protect the taxpayer by ensuring that only financially viable firms receive financing," according to a statement released by the White House.

The White House calculated this amount should stabilize the automakers through the end of March 2009.

"If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury," the statement says.

The funds will come from the TARP bailout, as expected and there are other conditions to these funds. These include limits on executive compensation and perks such as corporate jets, the automakers adhering to fuel efficiency and emission standards and opening books to government scrutiny.

Finally.

Now can we resume our wonderful Holiday Season, already in progress?

Auto Bailout Senate Hearings Today

Well, today is the day for the Detroit Three to meet once again with the US Senate. Are they more prepared this time? Barack Obama says their proposals are much more serious this time. Nancy Pelosi has already said that they will get help and not go bankrupt. So I guess the hearings are just a formality? Should be interesting as we watch today.

Rick Wagoner is driving around in a Chevy Volt prototype, which is basically a Chevy Cruze "mule". A mule is a test car with all the innards of the production intent vehicle, but retaining the chassis and body of an already existing vehicle, which is the Chevy Cruze in this instance. It should be fun to watch 'ole tricky Ricky Wagoner. I am sure there will be plenty of pictures available later and I will post some!

Finally, from Automotive News:
"General Motors and Chrysler are considering accepting a pre-arranged bankruptcy as the last-resort price of getting a multi billion dollar government bailout, Bloomberg reported, citing a person familiar with internal discussions. In response to automakers' bailout plea, staff for three members of Congress have asked restructuring experts if a pre-arranged bankruptcy could be used to reorganize the sector without liquidation."

I have never heard of a pre-arranged bankruptcy, have you? I have also never heard of auto manufacturers getting "bridge loans", which are used exclusively for real estate transactions.

GM concessions, Detroit 3 needs 34 billion

Well, we are getting info today at breakneck pace, as expected. First, let's have a look at some of the concessions and/or plans that GM is proferring to Congress:

From Automotive News:

"...GM will focus on its "core brands" of Chevrolet, Buick, GMC and Cadillac, the plan says. GM will sell Saab, shrink Pontiac to a niche brand and consider selling or closing Saturn, GM President Fritz Henderson told reporters at a briefing today.

GM also plans to trim its U.S. dealerships from today's 6,450 to about 4,700, Henderson said. It will cut about one-third of the nameplates from its vehicle lineup.

In the starkest acknowledgement GM has made of its financial condition, the company says it needs $4 billion in federal aid by the end of the month.

GM's plan asks Congress for $12 billion in loans by the end of March. It seeks another $6 billion in revolving credit if market conditions don't turn around.

Henderson said GM will seek a buyer for Saab. Pontiac will be shrunk to a "specialty, niche" brand, Henderson said. GM already has put Hummer up for sale.

Under its franchise agreement with Saturn dealers, GM will seek a new course for that brand, Henderson said. Asked whether GM would sell or fold Saturn, he said he would not eliminate any options.

Trimming GM's 6,450 U.S. dealerships to about 4,700.

Reopening talks with the UAW to cut manufacturing costs further."

Poor Saturn. Looks like they are history. The other thing that jumps out at me is GM's pressing need for 4 billion by the end of the month! WOW, where did that come from? Let's keep going and see what the new loan tally is.

From Automotive News:

"The Detroit 3 today increased their appeals for federal loans beyond the $25 billion requested in November.

General Motors, Ford Motor Co. and Chrysler LLC together are asking Congress to approve loans and credit lines that total $34 billion. The Detroit 3 submitted their business plans to lawmakers today.

House Speaker Nancy Pelosi said automakers will get help. "An intervention will happen," she said at a Washington news conference. Echoing industry leaders, the California Democrat said bankruptcy is not an option for any of the companies."

That is a pretty serious inflation rate, dontcha think? From 25 to 34 billion in a matter of weeks. Wow,

AND FINALLY, who does Nancy Pelosi think she is? The Prime Minister? The Shah? The Royal Grand Poobah? She obviously thinks that she controls the entire Congress. What a head job.

I think Ford and GM have submitted good plans. I just wish we had some assurances that they will stick to them!

Updates from the Big 3 in Washington

Lots of stories coming out of Washington today, so I will try and summarize:

- Ford's Alan Mulally will drive to Washington in a Ford Escape Hybrid.
- GM's Rick Wagoner will drive in a Chevy Malibu Hybrid.
- Chrysler says it needs an emergency bridge loan just to survive, let alone try and execute their bailout plan.
- GM is asking for 12 billion, Ford wants 9 billion and Chrysler 7 billion.
- Ford's November sales are down 30% compared to last year.
- GM today said it is closing General Motors Air Transportation Services effective Jan. 1. The company said 49 employees will be laid off, and GM will halt corporate flights worldwide.
- Much of Ford's plan has been revealed and some of the highlights are returning to profitability in 2011, producing a BEV (Battery Electric Vehicle) van for fleet use in 2010, a BEV sedan in 2011, a 9 billion dollar line of credit, developing its next generation full hybrid technology and selling its five corporate aircraft.

Read more about Ford's plans on Green Car Congress.

Well, what do you think? Are the auto makers going to be convincing enough? Will our Congress soften some from the last visit? From what I have read of Ford's plans, I do think it is enough.

Big Three submit plans today

Well, today is the day that the Big Three Auto makers are to have their proposals submitted to Congress detailing their plans for the future and justifying their use of government loans. Unfortunately, we have to wait until the end of the week for the Congressional hearings. I suppose both Houses in Congress wanted a day or two to peruse the contents of each proposal.

This is what we are hearing:

Alan Mulally, Ford's CEO, will agree to cut his annual salary to $1 as part of Ford's bid to win congressional support of federal aid to automakers, the Wall Street Journal reported.

Ford also said it will accelerate the introduction of hybrid and electric vehicles.

Previously, Robert Nardelli of Chrysler also agreed to a one year salary of $1. Interestingly, Rick Wagoner is the only holdout for this type of concession! What is irritating to me though, is that our 535 Congressmen do not agree to work for a dollar when our Government is infinitely more broke than the three automakers.

GM has also stated that it may eliminate some of its brands to become more cost effective and then Ford announced this week that it may sell Volvo.

Other than this, that is all we really know. Hopefully, more information will leak out today and tomorrow concerning each proposal. I will keep you posted!

Volvo on the chopping block?

In today's news, it looks as if Ford is considering selling its Volvo brand. Desperate times call for desperate measures, I suppose, so we will see if this actually happens.

Here is an excerpt from Automotive News:

"Ford Motor Co. said today it will consider the sale of Volvo Car Corp. as it explores "strategic options" for the Swedish brand.

Ford said it would review its options for Volvo because of the significant decline in the global auto market and severe worldwide economic instability. The company expects the review to take several months to complete.

A possible sale of Volvo would help Ford strengthen its balance sheet, officials said. It is part of Ford's efforts to make sure it has enough resources to introduce an array of new products intended to turn around the automaker's financial fortunes.

"Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo," said Ford CEO Alan Mulally in a prepared statement."

What are your thoughts? I have often wondered if Ford should eliminate the Mercury brand. It seems as if its lineup is basically the same as Ford's and often wondered if this could save them money?

What should the Big Three do for their "loans"?

First of all, Happy Thanksgiving to y'all! Hope you enjoy the day and enjoy the family, friends and food.

Have you thought about what the Big Three Automakers should agree to as they pitch their proposals to Congress next week? What are they going to propose as their solutions for the current crisis? It has already been leaked that GM is considering getting rid of some of their brands, like Saab, Saturn and Pontiac and Robert Nardelli of Chrysler has agreed to a salary of one dollar per annum. So what else should they agree to? Let's list some suggestions:

- CEO salary of $1.00.
- Trim or eliminate unprofitable brands.
- Commit to higher MPG standards.
- Commit to produce EV or PHEV autos, IN SIGNIFICANT NUMBERS.
- Discontinue bonuses or other perks.
- Discontinue the use of company jets.
- Force the UAW to make concessions, like the jobs bank.

These are just a few, I am sure you can think of more.

NOTE / RANT: I would like to point out that our Congress has the unmitigated audacity to harass the CEO's of the Big Three for flying to Washington in their corporate jets when every one of the 535 congressmen all do WORSE. They take bribes, are afforded favors on top of favors, work about 6 months out of the year, get golden pension plans and golden health care. All for LIFE. Please, there has never been a bigger bunch of hypocrits than those who "serve" in Congress. Believe me, I write my congressmen all the time to let then know their sins.

Wednesday's House festivities with the Big Three

Today's hearings in front of the House of Representatives committee for the Big 3 CEO's was an instant replay of yesterday. GM and Chrysler both reiterated that without Government assistance they would likely wind up in bankruptcy. GM, however, has made absolutely no provision for a bankruptcy so they seem to be completely relying on a loan.

There is a new development as Senators Christopher "Kit" Bond (R., Mo.) and George Voinovich (R., Ohio), began work on a plan to speed release of $25 billion in already approved loans. These are the ones intended to help the industry meet higher fuel-economy standards. I have no idea if they can get this on the floor for a vote this week, which seems to be the bigger issue. There simply is not enough sentiment in Congress to undertake the heroic effort needed to to get a bill over to President Bush by Friday.

If nothing happens this week, which I suspect will be the case, then I suppose the lame duck session could reconvene after Thanksgiving, which really cramps the lifestyles of our rich and famous representatives in Washington!

News from Washington

Well, the Big Three automakers got their chance to pitch their cause before the Senate today in hearings concerning the bailout. Rick Wagoner, GM, Alan Mulally, Ford and Robert Nardelli, Chrysler all took their turn at the plate to stake their claims. Basically, it was the same ole' song and dance about 3 million citizens losing their jobs, national crisis, military crisis, ad nauseum. Here are a few nuggets for you:

"Our industry ... needs a bridge to span the financial chasm that has opened up before us," General Motors Corp. CEO Rick Wagoner told the Senate Banking Committee.

Robert Nardelli, CEO of Chrysler, told the panel the bailout would be "the least costly alternative" when compared with damage from bankruptcy. "We just cannot be confident that we will be able to successfully emerge from bankruptcy," Nardelli said.

Alan Mulally, Ford CEO, told senators the auto industry was "a pillar of our economy. We look forward to working with you to be part of the solution" to the financial crisis. "We at Ford are well on our way to transforming our country and building a new Ford," he said.

At least Mulally was upbeat and not as rhetorical as the other two. Also speaking today was Ron Getelfinger, representing the UAW, but he did not mention anything worth quoting. Several Senators expressed their concerns about giving money to the automakers, which did not seem like a sensible decision for their long term success.

Most Senate Republicans are opposed to the bill, almost ensuring its death while in infancy.

Continuing Saga of US Automaker Bailout

The pace of news reports from Washington concerning the bailout of the Big Three is dizzying. I have been watching these events unfold throughout the week in amazement. To say that the lobbying efforts of GM, Ford and Chrysler for immediate funds is relentless would be an understatement. Indeed, GM's "bankrupt-free" life is at stake here. What will happen over the course of the next few days? This is what keeps me tuned in. How will this crisis be averted and what heroic efforts will be required?

From Reuters:

"The U.S. Senate plans to take up a $25 billion bailout bill for distressed domestic automakers on Monday, but it remains unclear if proponents can muster the support necessary to pass the legislation.

Democratic Majority Leader Harry Reid of Nevada said on Friday that he "plans to press forward" with emergency aid to automakers and a plan to extend unemployment insurance, even though Republican backing is not assured.

Reid plans to begin debate on Monday and hopes the Senate will conduct procedural votes early in the week.

It will be difficult for Democrats to push through an auto bailout if minority Republicans object and throw up procedural roadblocks."

Will this be a partisan debacle resulting in GM's collapse? On the surface of it, one would think that this lame duck session is not going to agree on any emergency aid legislation. Also, is 25 billion really enough money? I thought GM was currently burning through 2.5 billion per month?

I think that the White House is going to put some serious pressure on Congress to try and reach some agreement before next week ends. Stay tuned, we never know what to expect next in these days of uncertainty.

Barney Frank writes legislation for US bailout

Don't you love this picture of US Rep. Barney Frank? He seems to be a college professor mulling over one of his student's attempts at placating him.

These are truly historic times we are living in and the incessant barrage of news stories about the economy (US and global), stock markets, bankruptcies and bailouts testify accordingly. Something I have been watching closely is the US automaker death spiral. The Big Three are anything but and if they do not receive a gratuitous cash injection, they may all be belly up before Barack Obama can get sworn in and work his magic. At least for GM, bankruptcy is as real as death and taxes at this point. Even though Rick Wagoner swears that this is not an option, we all know without government assistance, it will become reality.

The latest manuverings are being perpetrated by the current US "lame duck" session of Congress as it tries to force the Treasurer's hand in doling out some of the 700 billion dollars that was recently authorized. Congress is expected to convene this coming Monday, November 17th.

From Automotive News:

"The government's stake in U.S. car companies would be determined by the Treasury Department, under a House proposal to rescue the Detroit 3.

Taxpayers also would be paid back first when the automakers recover, Steve Adamske, a spokesman for Rep. Barney Frank, D-Mass., said in an interview today. Frank chairs the House Financial Services Committee.

The terms outlined by Adamske are among the details beginning to emerge as Congress prepares legislation to provide emergency low-interest loans to General Motors, Ford Motor Co. and Chrysler LLC. Frank is scheduled to introduce his bill Monday."

Hmmm. So we are supposed to believe that taxpayers are going to be paid back first AND that this would be a loan? I am highly skeptical, at best.

Do you think this will really be a "loan" or will it be monies thrown at the Big Three in a desperate attempt at staving off bankruptcy, only to be lost later when these companies are beyond salvation?