A previous post made a case for the potentially transformative role of the Nissan Leaf in the electrification of transportation, but most of the major automakers have plans that involve electric vehicles.
The October Clean Cities Massachusetts Electric Vehicle workshop was far from a definitive or complete statement on where the auto industry is on electrification of transportation. It was a modest-sized regional event, and only one part of the day focused on the vehicles. But events like this sometimes provide insights that large industry gatherings would not, just as one sometimes learns much more about political candidates by who shows up and what they say to a smaller audience than what they say in the big televised debates.
In addition to Nissan, both Ford and Chrysler participated in the event. It was somewhat surprising that GM was not visibly represented since they are one of the few large automakers, expected to have an electric vehicle (the Volt) in the US market in the near term.
Chrysler’s presence was low-key. It seemed reasonably aimed at reminding people that the company was not only still around, but also has some history and anticipates a continuing role in electric vehicles. The history is in Global Electric Motors, a subsidiary it has owned for 10 years that produces low-speed “neighborhood electric vehicles”. Chrysler has also announced plans to build an electric car on a Fiat 500 platform to be available around 2012.
Ford‘s presence and presentation was interesting for different reasons. Bill Ford was an early advocate for the “greening” of the auto industry and the need to address climate change. He was far enough ahead that some used his interest as evidence that he was not a serious long-term leader for the company. And the company’s announced plans have not generated the buzz of either the Nissan or the Volt.
As a result, several important arguments Ford advances may come across as those of someone who wasn’t invited to the party, and that’s unfortunate. Those are:
- Auto manufacturing is one of the largest contributors to greenhouse gas emissions and pollution. Ford has made huge investments in retooling its manufacturing operations to be more sustainable across the board, reducing greenhouse gas emissions from their whole supply chain and becoming more cost-effective.
- The internal combustion engine will be with us for a long time, so we should be just as focused in making it more sustainable as in its eventual replacement by electric vehicles.
- There’s a lot of work to be done to enable the wide adoption of electric vehicles, and that will take time.
The trouble with the first two, of course, is that this makes Ford sound like the coal industry – not exactly the best way to generate support, loyalty and business. But they have a point – and getting all the automakers to take this approach could make a significant impact on the larger problems of climate change, oil dependence and pollution that the electric vehicle is also meant to address. The third is also true, and Ford is building partnerships to work on those infrastructure issues. But those very real challenges can sound like foot-dragging to consumers eager for innovation and change.
Ford does of course have both history with and plans for electric vehicles.
- Transit Connect is Ford’s existing platform of fuel-efficient small vans for business. A battery-powered version is going into production late this year.
- An electric (battery-powered) version of the Ford Focus, around 2012.
- Continuing evolution of current hybrids (Fusion and Escape) – greater efficiency, plug-in hybrids leading to next-generation fully-electric vehicles (around 2018).
Ultimately, consumers will decide how the market for electric vehicles will develop by how they choose to spend their money. Ford offers two data points from its market research in support of its more incremental approach to electric vehicles:
- Over 70% of consumers cite fuel savings as the main reason for buying a hybrid or electric vehicles – far ahead of any other reason.
- 65% of consumers would be willing to pay up to $3,000 to reduce fuels costs in half, which Ford says is about the current premium for a hybrid electric vehicle.