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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.

U.S. tariff threat hits European automakers' stocks

FRANKFURT, Germany — A U.S. warning that it may introduce tariffs on foreign auto imports hit shares in German carmakers BMW, Daimler and Volkswagen on Thursday, which together have a more than 90 percent share of North America's premium car market. Washington said on Wednesday it had launched an investigation into whether car and truck imports are a national security issue due to signs they had damaged the U.S. auto industry. That could lead to new U.S. tariffs — up to 25 percent — similar to those imposed on imported steel and aluminum in March. BMW and Daimler shares fell as much as 3.1 percent in early Thursday trading, while Volkswagen's dropped as much as 2.5 percent. "(U.S. President) Donald Trump is obviously not thinking about how to prevent a trade war. Import duties on cars would be a nightmare for the German auto industry and would lead to a massive sales impact," said Thomas Altmann at Frankfurt-based asset manager QC Partners. BMW on Thursday condemned the move to consider tariffs. "The BMW Group is committed to free trade worldwide. Barrier-free access to markets is therefore a key factor not only for our business model, but also for growth welfare and employment throughout the global economy," it said. Daimler, which makes Mercedes-Benz cars, and Volkswagen, which makes upmarket Audis and Porsches, were not immediately available for comment. German carmakers produced 804,000 cars at local factories in the United States and exported 657,000 German-made cars into North America last year, according to German auto industry association VDA. China took pains on Thursday to welcome German firms and investments, with Premier Li Keqiang talking up relations after a meeting with German Chancellor Angela Merkel. BMW and Mercedes have expanded production capacity in the United States, but BMW, Audi, Volkswagen and Daimler have also invested billions to build new factories in Mexico in the hope of selling locally produced cars into the United States. German carmakers hiked vehicle production in Mexico by 46 percent to 620,000 cars last year, while production levels inside the United States fell by 6 percent to 804,000 cars because of a shift to Mexico, according to the VDA. BMW has its biggest factory worldwide in Spartanburg, South Carolina, and is the largest vehicle exporter among all the carmakers in the United States measured by value of goods exported. More than 70 percent of BMW's U.S.-made cars are exported.

Audi builds its six-millionth Quattro-equipped car

All-wheel drive has become the norm particularly among German automakers. Mercedes offers its 4Matic system on a broad range of models, BMW counters with its xDrive system, Volkswagen has 4Motion, and the only Porsche you actually can't get with all-wheel traction is the Boxster/Cayman. But before all its competitors got on board with channeling power to all four wheels, Audi was making a name for itself with its Quattro all-wheel-drive system.
Now 34 years since the advent of the original Audi Quattro, the House of the Four Rings has built its six millionth vehicle equipped with all-wheel drive - only a year and a half since it hit the five-million mark. In fact these days nearly half of all new Audis are ordered in Quattro spec - more than any other automaker - resulting in a total of 710,095 Quattro-equipped Audis produced last year alone.
The landmark 6,000,000th vehicle was an SQ5 in monsoon gray metallic that rolled off the assembly line on Friday and is bound for a customer right here in the United States.