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The ugly economics of green vehicles

It's fair to say that most consumers would prefer a green vehicle, one that has a lower impact on the environment and goes easy on costly fuel (in all senses of the term). The problem is that most people can't – or won't – pay the price premium or put up with the compromises today's green cars demand. We're not all "cashed-up greenies." In 2013, the average selling price of a new vehicle was $32,086. The truth is that most Americans can't afford a new car, green or not. In 2013, the average selling price of a new vehicle was $32,086. According to a recent Federal Reserve study, the median income for American families was $46,700 in 2013, a five-percent decline from $49,000 in 2010. While $32,000 for a car may not sound like a lot to some, it's about $630 a month financing for 48 months, assuming the buyer can come up with a $6,400 down payment. And that doesn't include gas, insurance, taxes, maintenance and all the rest. It's no wonder that a recent study showed that the average family could afford a new car in only one of 25 major US cities. AutoTrader conducted a recent survey of 1,900 millennials (those born between 1980 and 2000) about their new and used car buying habits. Isabelle Helms, AutoTrader's vice president of research, said millennials are "big on small" vehicles, which tend to be more affordable. Millennials also yearn for alternative-powered vehicles, but "they generally can't afford them." When it comes to the actual behavior of consumers, the operative word is "affordable," not "green." In 2012, US new car sales rose to 14.5 million. But according to Manheim Research, at 40.5 million units, used car sales were almost three times as great. While the days of the smoke-belching beater are mostly gone, it's a safe bet that the used cars are far less green in terms of gas mileage, emissions, new technology, etc., than new ones. Who Pays the Freight? Green cars, particularly alternative-fuel green cars, cost more than their conventional gas-powered siblings. A previous article discussed how escalating costs and limited utility drove me away from leasing a hydrogen fuel cell-powered Hyundai Tucson, which at $50,000, was nearly twice the cost of the equivalent gas-powered version. In Hyundai's defense, it's fair to ask who should pay the costs of developing and implementing new technology vehicles and the infrastructure to support them.

Recharge Wrap-up: "E-Mobility Thought to the End" project, Tesla owner tracks stolen car

A Tesla owner helped police track her stolen Model S and catch the thief. Katya Pinkowski of Vancouver, BC found her car missing after a concert, and she was able to track the car's movements with the Tesla app. She relayed the information to the police, who surrounded the car and arrested the driver. "High tech definitely played a helping role," in arresting the suspect, says Richmond RCMP spokesman Cpl. Dennis Hwang. In what appears to be the first Tesla theft in Canada, Pinkowski accidentally left an electronic fob in the car, giving the thief easy access. Read more from The Province. Hyundai has delivered a shipment of 50 ix35 (Tucson) Fuel Cells for distribution in Europe. Europe's largest ever shipment of the hydrogen-powered vehicles puts the count at over 250 of the ix35 Fuel Cells shipped to Europe so far. "This latest landmark delivery enhances our leading position in the roll-out of fuel cell vehicles in Europe," says Hyundai Europe COO Thomas Schmid. "With our fuel cell distribution network growing to 13 European countries, we are enhancing our sales and customer service capabilities, making fuel cell electric vehicles more accessible for customers throughout Europe." Read more in the press release from Hyundai. Daimler, The Mobility House, Getec and Remondis are partnering to connect the world's largest second use battery storage unit to the grid. As part of their "E-Mobility Thought To The End" project, retired EV batteries are being used in the 13-MWh storage unit to help stabilize the grid and help manage energy fluctuations from renewable sources. It serves as another step in the life of the battery before recycling, where the materials from the lithium-ion batteries re-enter the production process. This helps reduce the environmental impact and the costs of electromobility. Read more in the press release below. E-mobility thought to the end: World's largest 2nd-use battery storage unit set to connect to the grid • Cooperation between Daimler, The Mobility House, GETEC and REMONDIS completes the battery value creation cycle • Re-use of electric vehicle batteries improves environmental performance and the lifecycle costs of e-mobility • 13-megawatt battery storage unit to connect to the grid in early 2016 • Levelling out fluctuations in the power grid as an active contribution towards the energy revolution The world's largest 2nd-use battery storage unit will soon go into operation in the Westphalian town of Lunen.

Recharge Wrap-up: BMW integrates EV charging into streetlights, EV Fleet debuts electric pickup

BMW has unveiled prototypes of LED streetlights that also serve as EV charging stations. "Light and Charge is a simple and innovative solution to naturally integrate a reliable network of charging stations in the city," says BMW's Peter Schwarzenbauer. Connected to the ChargeNow network, they're simple to use, and would be readily available when tied to the lighting infrastructure. The two prototypes are currently in use at BMW World, with a pilot project planned for Munich in 2015. Read more at Green Car Congress, or in the (translated) press release below. The Renewable Fuels Association (RFA) is accusing retailers of price gouging E85 to discourage its use. An RFA study found that retailers in St. Louis were marking up E85 as much as a dollar, roughly twice as much as the markup on regular gasoline. "Sneaky E85 pricing strategies ultimately give oil refiners the opportunity to wrongly claim that consumers are 'rejecting' E85," Says RFA president and CEO Bob Dinneen, "and it gives them an opportunity to claim they can't comply with Renewable Fuel Standard (RFS) requirements above the so-called 'blend wall.'" Read more at Biofuels Digest. Charlotte-based EV Fleet has announced the Condor electric pickup (pictured). The vehicle-to-grid-ready Condor has a 1,000-pound payload capacity, and can travel over 100 miles on a single charge. The company plans to build 300 trucks a month when it revs up production next year, with sales targeted toward fleet managers. See the EV Fleet Condor in the video below, read more at Treehugger, or visit EV Fleet's website to learn more. Here's a bold claim. Mutual fund manager Ron Baron says that every home will have a Tesla vehicle in 25 years. The financial guru, well regarded for his predictive stock strategies, is confident about the long-term outlook for the electric carmaker. He feels that Tesla is far ahead of the electric car game compared to other automakers like BMW, whom he believes will end up switching focus from internal combustion to electric powertrains. Read more at ValueWalk. BMW Group presents innovative street lighting with integrated charging station for electric vehicles. Munich. As part of the Eurocities conference in Munich, discuss in from 5 to 8 November 2014 more than 500 representatives of major European cities on pioneering infrastructure projects, the BMW Group presents the prototype of a highly energy efficient street lighting that is both charging station for electric vehicles.