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Recharge Wrap-up: No Tesla Gigafactory deal with California, BMW i3 recalled

Before the Nevada announcement was hinted at, a deal to incentivize a Tesla Gigafactory in California fell through. Tesla was looking for around $500 million in incentives, which the California Governor's Office of Business and Economic Development was willing to offer in tax breaks along with making the permit and environmental processes easier. According to Senator Ted Gaines, there still remained "a gap between what Tesla wanted and what California was willing to offer," the contents of which were undisclosed. California could still be chosen for another of Tesla's battery plants, should those ever materialize. Read more at The Desert Sun. The California Air Resources Board (CARB) will consider allowing a bit of compliance flexibility to its Zero Emission Vehicle (ZEV) regulations for some automakers. CARB will hold a hearing to discuss giving intermediate volume manufacturers (IVMs) - carmakers that do between 4,501 and 60,000 new vehicle sales in the state - some leniency catching up to the larger manufacturers when it comes to clean vehicle production. The ZEV regulation changes take into account the amount of revenue IVMs have available for developing the cars, particularly plug-in hybrids. Read more at Green Car Congress or see the notice from CARB here. Certain units of the BMW i3 are subject to an airbag recall. For cars built March 31, 2014, the passenger airbag inflator may have been assembled incorrectly, which could keep it from deploying when needed. Owners will be notified by BMW, and the problem will be fixed for free. The recall also affects certain 2014 Mini Cooper models. Learn more at the NHTSA website. The Renault-Nissan Alliance is providing 200 electric vehicles to telecommunications company Orange in France. The cars, which will include the Nissan Leaf, Nissan e-NV200, Renault ZOE and Renault Kangoo ZE, will be used mostly for carsharing. Through the program, Orange employees can book a car for work or personal travel using a smartphone. The Alliance will also help Orange install charging stations for the new cars. The addition of the EVs to the fleet will help Orange achieve its goal of reducing its carbon footprint by 20 percent by 2020. Read more in the press release, below. Jianghuai Automobile Company (JAC) is delivering its first 100 EVs to the US. The shipment is part of a larger order of 2,000 cars to be sold by GreenTech Automotive in the US market. Read more at ECNS.

A look back on BMW, South Carolina and Southern manufacturing

It has been 20 years since BMW broke ground on its Spartanburg, SC manufacturing facility, and while the automaker doesn't have any plans to mark the moment, economists and industry analysts have taken a closer look at the facility's impact on South Carolina, the South and global manufacturing. As of November, the Spartanburg plant's 7,000 employees cranked out 25,000 vehicles per month, and BMW has poured some $6 billion into the state since the plant opened in 1993. While that figure nearly matches the state's proposed budget for next year, some say there have been drawbacks.
To begin with, South Carolina provided BMW with hundreds of millions of dollars worth of public money and tax breaks with little public oversight, setting a precedent that would repeat itself with other corporations. The Detroit News reports that a Pew Center evaluation found 26 states didn't have a sufficient system for evaluating tax incentive performance. But BMW opened the door for a Southern manufacturing renaissance, with automakers from Mercedes-Benz to Hyundai and Volkswagen opening plants in the Deep South.
While states have raced to offer ever sweeter tax and cash incentives for big manufacturers, officials say BMW is proof the system can pay dividends. You can read the full piece here.

MotorWeek fondly remembers the 2000 BMW M5

The Retro Review series from MotorWeek tends to reminisce about vehicles at are at least 20 years old and often from even further back. However, the show's latest recollection shines the spotlight on a fondly remembered sports sedan that's also a modern classic: the 2000 BMW M5. Years before BMW committed to downsized engines with turbocharging and shortly prior to the introduction of iDrive, the E39 M5 showed the Bavarian brand's engineering talents at their very best. By modern standards, the sedan's powertrain is almost antiquated. Up front, there's a big, naturally aspirated V8 that sends power to the rear wheels, and the only choice of transmission is a six-speed manual. But as MotorWeek explains, the tuning of the whole vehicle comes out to near perfection. This is a model that's definitely worth remembering.