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Recharge Wrap-up: Atieva making EV with former Tesla talent, Holland lowers PHEV incentives

A reduction of tax incentives on company cars in Holland is expected to put the brakes on plug-in hybrid sales. Cars are taxed at an average of 25 percent, with plug-in hybrids taxed at just seven or 14 percent, depending on emissions. Taxes on PHEV company cars will increase to 14 and 21 percent. With company car leases making up a third of vehicle sales in 2014, the uptake on PHEVs "will likely go back to regular volumes," according to Volvo's Christiaan Krouwel. It could be a boon for battery electric cars, as their tax rate will remain at four percent for company cars. Read more at Automotive News Europe. Ford is testing cylinder deactivation in its 1.0-liter EcoBoost engine. On-road prototype testing has shown improvements in fuel economy of as much as six percent. Ford engineers developed a system using a new dual mass flywheel, pendulum absorber, and tuned clutch disc to allow cylinder deactivation under a wider range of speed and engine loads with less NVH. "The highest priority in the development of new combustion engines for automotive applications is the ongoing reduction of fuel consumption," says Ford's Andreas Schamel, presenting Ford's findings to the Vienna Motor Symposium. Read more at Green Car Congress or in the press release from Ford. Atieva is building an EV with the help of numerous former Tesla employees. The Silicon Valley-based startup was founded in 2007 by a former Tesla vice president, and its roster includes 12 other former Tesla employees. Already well funded, Atieva is now looking to fill its ranks with more talent, with 32 engineering positions, two recruiter positions and other job openings posted at its website. As for the EV it is working on, Atieva says it is "redefining what a car can be, by building an iconic new vehicle from the ground up." Read more at Charged EVs. Testing shows that Joule ethanol, made from recycled CO2, meets standards for use in the US and Europe. In partnership with Audi, Joule has been working toward making its recycled CO2 fuels ready for commercialization. "We are pleased to achieve another critical step towards our planned near-term delivery of fuel-grade ethanol from recycled CO2," says Joule President and CEO Serge Tchuruk. "Using waste CO2 as a feedstock, our technology has the two-fold advantage of reducing greenhouse gas emissions and producing cost-competitive, drop-in fuels." Joule will use these test results to get government approval for the use of its ethanol in highway fuel.

Elon Musk raises the stakes for Tesla Motors

Falling gas prices, production delays and weakened demand in a key market would send shudders through the CEOs of most automakers. None of those problems could dent the enthusiasm Tesla Motors CEO and co-founder Elon Musk has for a vision of an electric-car future. In a rare appearance Tuesday on the home turf of the Big Three automakers in Detroit, Musk said those factors wouldn't hinder Tesla Motors' growth over the next five to ten years. In fact, he revised the company's sales projections upwards, even as he said Tesla may not turn a profit for five more years. Previously, Musk had said he wanted the company to sell 500,000 vehicles by 2020. In more than an hour's worth of wide-ranging remarks at the Automotive News World Congress, he said, "I think we'll try to aim to do more cars than that. I think we'll continue past that. We probably should get to a few million cars by 2025. We could probably get to a few million cars per year." Spate Of Recent Complications Not that Tesla Motors' rise to prominence through a global economic recession hasn't already defied conventional wisdom, but the upward figures came despite recent complications that will only make that sort of sales climb more difficult. Gas prices fell to a national average of $2.11 per gallon Tuesday, and many automakers fret this plunge will make the sale of electric vehicles far more difficult. "I don't think it will affect the S or X," Musk said Tuesday. Production of the Model X – an all-electric crossover that features gullwing doors that would give Tesla Motors an immediate entrant in the fastest-growing vehicle segment – has been delayed for two years while the Fremont, CA-based company focused its limited production capabilities on its Model S and worked on complications with the X. "It's been two steps forward, one step back," Musk said. "Really, it was important to me that the doors were not just a gimmick, but a fundamental improvement to the functionality of the cars." Another hurdle for Tesla: Musk said Tuesday that sales had weakened in China during the fourth quarter of 2014. Exact sales figures were not known because Tesla does not release them, but Musk said growth slowed because customers there had overestimated the difficulty in installing and maintaining charging equipment; he said the "miscommunication" had been corrected and that the company has already seen an uptick in sales.

If Tesla Model 3 is successful, Sergio Marchionne will copy it

Fiat Chrysler CEO Sergio Marchionne hasn't hidden his disdain for electric vehicles, but he would copy the Tesla Model 3 if it is successful, according to Automotive News Europe. If Elon Musk "can show me that the car will be profitable at that price, I will copy the formula, add the Italian design flair and get it to the market within 12 months," Marchionne told Automotive News Europe during FCA's annual meeting in Amsterdam. In terms of pre-orders, the Model 3 is a success. Musk tweeted on April 7 that the company had over 325,000 reservations for the sedan, which he estimated were worth around $14 billion. The car will start at $35,000 before incentives. Marchionne, however, isn't optimistic Tesla can actually make the electric sedan work financially. "I'm am not surprised by the high number of reservations but you have then to build and deliver them and also be profitable," he told ANE. The FCA boss is a noted skeptic of EVs. In 2012, he said that the company only built the 500e because of California's zero-emissions vehicle mandate and to give engineers experience with the technology. He doubled-down in 2014 when he claimed FCA lost $14,000 on each 500e and said he would rather people didn't buy them. More recently, he infamously said "you'd have to shoot me first," before he'd allow a fully electric Ferrari. Related Video: