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Tesla says Model S fire started in battery pack; share prices falling

Yesterday's fire that engulfed a Tesla Model S, the first blaze involving the critically acclaimed electric sedan, was caused when a piece of road debris impacted the front of the car, damaging the battery pack and starting a fire, according to an email sent to AutoblogGreen by Tesla. Now, The New York Times has learned that the fire was indeed caused by debris that made "a direct impact ... to one of the 16 modules within the Model S battery pack," according to Tesla spokesperson Elizabeth Jarvis-Shean.
Despite the blaze, Tesla maintains that the battery packs did their job by isolating the fire, with Jarvis-Shean saying, "Because each module within the battery pack is, by design, isolated by fire barriers to limit any potential damage, the fire in the battery pack was contained to a small section in the front of the vehicle."
The nature of the fire, though, seemed to catch the Kent Fire Department Regional Fire Authority off guard. The department's report, which was obtained by the International Business Times and partially published on Jalopnik, claims that water used to put out the blaze seemed to intensify the fire, forcing the firefighters to use a dry chemical. Later, they found the battery pack still burning inside the front end. The report claims firefighters, "had to puncture multiple holes in the pack to apply water to the burning material in the battery," and also had to cut into the frame to douse the burning pack.

Recharge Wrap-up: BorgWarner buys Remy, Citroen's Bluesummer

BorgWarner will buy Remy International. The auto parts maker, known especially for its turbocharging technology, will buy Remy, a maker of electric motors for EVs and hybrids, in order to better compete in a growing electrified vehicle market. In a deal expected to close late this year, BorgWarner has offered to buy 32.2 million shares of Remy at $29.50 each for a total of about $950 million. Remy did about $1.2 billion in sales in 2014. Read more from Reuters. Deliveries of the Tesla Model S P85D will begin soon in Hong Kong. Some customers there have received emails from Tesla saying, "Your Model S is ready to enter production," and asking for registration information. Hong Kong is likely to be one of the first locations to receive the right-hand-drive version of the P85D. The first deliveries are expected in late August. Read more at Inside EVs. Tesla Motors has hired Ganesh Srivats as its vice president for sales in North America. Srivats is the former senior vice president at British luxury fashion brand Burberry. The hire will help Tesla build its luxury lifestyle image as the company enters more markets around the globe. "If Tesla is thinking that they are selling a lifestyle and a way of thinking, then someone from Burberry could be the right choice," says Ken Harris of Cadent Consulting Group. "Burberry gets lifestyle." Earlier this year, Tesla reassigned its vice president of worldwide sales and service Jerome Guillen, and created separate sales positions for North America, Europe and Asia. Read more from Bloomberg. Citroen will distribute Bollore's four-seat, electric convertible, the Bluesummer. Bollore Group and PSA Peugeot Citroen recently announced that the funky EV would be built at PSA's plant in Rennes, France beginning in September. While it originally appeared that the Bluesummer would be available through carsharing programs, Citroen now says it will sell the Bluesummer through its dealership network. "This partnership with the Bollore Group is an opportunity for the Citroen network to increase its sales by attracting to its showrooms new customers who like the originality and freshness of the Bluesummer and thus promoting all the vehicles in the range," says Philippe Narbeburu, sales director for Citroen France. Read more in the press release below.

Dealers' suit against Tesla dismissed in MA court

Tesla has been facing resistance from dealer associations with its factory-owned dealerships since the start-up automaker first started selling cars, but it won another big case in Massachusetts when a judge dismissed a lawsuit brought on by the Massachusetts State Automobile Dealers Association (MSADA). According to Automotive News, the case was dismissed after the judge said the association "lacked standing to sue" despite the fact that MSADA executive vice president quotes the state law as saying, "A factory cannot own a store."
The latest lawsuit follows a similar suit from back in October where the MSADA attempted to prevent Tesla from opening a store in a suburban Boston mall; the electric car maker received approval to open another store in Natick, MA, which brought on this second lawsuit. It's unlikely this is the last we've heard about this issue in Massachusetts and in other states, but Tesla seems to be coming out victorious in each case so far. While laws pertaining to dealerships vary state to state, factory-owned dealers are usually noncompliant with state law - a lesson Chrysler learned back in 2011.