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Recharge Wrap-up: BYD sales surge, new Mazda MX-5, plug-in VW Passat

BYD has enjoyed a tremendous leap in sales since last year, according to Want China Times. Sales from January to April were ten times that of the same period last year, with much of the credit going to government subsidies for clean cars. BYD claims, though, that battery production is limiting the number of vehicles it sells, and that by increasing that production capacity, it will see even more success. BYD's Qin plug-in hybrid, introduced in December, has already sold 4,500 units with another 8,000 orders already placed. Read more here. Mazda will reveal the fourth generation of its MX-5 roadster in September. To celebrate the car's 25th anniversary, the all-new two-seat convertible will debut during simultaneous private events in Spain, Japan and the US on September 3 and 4. Furthermore, the new Miata will be the center of a more public event in Barcelona on September 6. For fans in the US, Mazda will hold a Miatas at Mazda Raceway event from September 5 to 7. The 2016 MX-5 promises to continue to offer a lightweight, balanced design for fun and efficiency. The new Volkswagen Passat will feature a plug-in hybrid version. Volkswagen confirmed the Passat PHEV for Europe at the model's unveiling at the Volkswagen Design Centre in Potsdam, Germany. The plug-in Passat uses a 154-horsepower TSI engine and an 80-kilowatt electric motor for a total output of 208 horsepower. With a full charge, it can travel up to 31 miles on electricity alone. All versions of the eighth-generation Passat use stop-start and regenerative braking. Read more at Green Car Congress. BBC warns that the costs of charging an electric vehicle in the UK could surpass those of fueling a gasoline engine. Not so fast, says The Green Car Website. While the BBC cites charging services like Charge Master introducing fees for rapid charging making it cost about as much per mile to drive as traditional internal combustion engines. The Green Car Website points out that most people usually charge at home for much less, that paying for rapid charging is still not that expensive and that the BBC article misses the point about EVs, anyway. See the BBC article here or click here to read the rebuttal. News Source: Want China Times, Mazda, Volkswagen, BBC News, The Green Car Website via Charged, Green Car Congress Green Mazda Volkswagen Green Automakers Electric PHEV recharge wrapup qin

VW to relax ambitious US sales targets?

The Volkswagen brand sold 407,704 cars last year, a 6.95-percent decline compared to 2012, and it's down a further 8.36 percent through the end of April 2014 compared to this time last year. In order to to put the sales football between its Strategy 2018 goal posts, the brand would need to add 100,000 more sales every year to achieve the lofty 800,000-unit target. Coming to grips with how unreasonable that is, VW US CEO Michael Horn has said, "For now, we have to have realistic targets."
The reasons for the brand's slow-down are imprecise, but lots of folks are throwing lots of reasons around. Last November, VW Group Chairman Ferdinand Piech told Bloomberg, "We understand Europe, we understand China and we understand Brazil, [but] we only understand the US to a certain degree so far." Analysts say the brand hasn't had midsize and compact SUV offerings, especially an overdue retail version of the CrossBlue, and the ones it does have are priced too high for their segments. It "didn't introduce enough new engines, or alternative technologies or model variants" for the Passat and Jetta. It devoted so many resources to China that the US market suffered. It was being outspent two-to-one on advertising by competitors. Its J.D. Power dependability ratings aren't high enough to overcome its past. It "has never really taken the US customer seriously." And so on.
There's still no official admission of defeat concerning the target, but reading between the lines there are some VW execs that appear to accept it won't happen short of some deus ex machina. Still,

China sticking to its guns on EVs for the future

Automakers are obviously free to develop whatever next-gen, zero-emissions tech that they want. However, if a company wants to get on the good side of the Chinese government, that strategy better include some plug-in vehicles. The authorities there are lending major support to plug-ins at the moment, and its forcing the auto industry to play along. According to Bloomberg, Toyota, Volkswagen, Hyundai, and BMW are all launching dedicated EV brands with their joint venture partners, and as many as 40 electric models could hit the Chinese market this year alone. However, analysts don't think the vehicles are going to sell well. Instead, the launches are essentially a way for companies to play nice with the government and help get the approval to build factories in the country. Take Toyota as an example. The company is pushing the future of hydrogen hard with promotional films for the Mirai and engineers talking down fast-charging EVs. Still, the Japanese automaker is getting ready to launch two EV brands in China with its joint venture partners, according to Bloomberg. China's push for alternative fuels has been happening for a while, but it really kicked into high gear last year. The government has set a goal to improve fleet-wide economy by 40 percent by the end of the decade in order to spend less importing oil and for the population's health. The plan has shown some success so far with hybrid and EV sales growing early in 2015. Related Video: News Source: BloombergImage Credit: Kin Cheung / AP Photo Government/Legal Green BMW Hyundai Toyota Volkswagen Green Culture Technology Electric tax incentives chinese government