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Tesla pulling plug on Toyota RAV4 EV battery deal

The future of the Toyota RAV4 EV appears to be in doubt. Tesla supplies the EVs battery packs, and it says that production ends later this year.
"Toyota is expected to end the current RAV4 EV model this year," Tesla said in its quarterly financial filing obtained by Bloomberg. "Our production activities under this program are expected to end in 2014," the company said.
This timeline fits closely with the original production plans for the RAV4 EV. When the $100-million project was first announced, Tesla said that it expected to supply battery packs for the vehicle from 2012 to 2014. Building components for the Japanese automaker continues to bring in money, though. In the company's Q1 2014 letter to shareholders, it said: "Automotive revenue included $15 million of Toyota powertrain sales." According to Bloomberg, Toyota has sold just 1,594 RAV4 EV models from 2012 through April 2014. Initially, the business had estimated that it would sell 2,600 units of the electrified crossover.

The real reason automakers are giving away free hydrogen

Just like Hyundai did with its Tucson fuel cell, Toyota is offering free hydrogen fuel with the $57,500 Mirai H2 sedan. Toyota is being a bit vague about the details, saying simply that Mirai drivers will get, "complimentary hydrogen fuel for up to three years." Turns out, the reason that the hydrogen avant-garde will not be paying anything at the pump isn't because the automakers want to give them a boost or because the OEMs are kind. Instead, it's simply impossible to accurately charge people for hydrogen right now. It's simply impossible to accurately charge people for hydrogen right now. At an in-depth hydrogen seminar this week as part of the Mirai preview, three representatives from various hydrogen organizations revealed that the current hydrogen stations (most of which are in California) are not set up to accurately measure the hydrogen that is dispensed. Without this little bit of information, you can't charge customers for the fuel they use. Toyota is well aware of this, and Toyota Motor Sales' national manager of environmental, safety and quality communications, John Hanson, said that, "There are no set standards, so there is no way to charge people for anything." Alberto Ayala, the deputy executive officer for the California Air Resources Board, said CARB is in the middle of developing a way to sell a given amount of hydrogen, "which up to this point doesn't exist. If you think about it, it's a real simple yet real practical challenge. If you're going to pay for X amount of hydrogen, you're actually getting that amount of hydrogen." Ayala said it's not a difficult technical problem to measure the hydrogen as it goes into the car, but "we just have not done it. We are at a point where we are solving multiple remaining questions [with hydrogen infrastructure], and that just happens to be one of them." The National Institute of Standards and Technology says that there has been a discussion to change the current tolerance of two percent up to 10 or 20 percent, but that new technology should be able to measure accurately to within one percent. Air Liquide is working with Toyota to launch the Mirai in the US and Air Liquide CEO Ole Hofelmann told AutoblogGreen that being able to charge customers will be key to the technology's success. "We need to make sure we accurately measure the gas," he said.

Toyota unintended acceleration lawsuit settled for $16M

Slowly, the many loose threads still dangling after the unintended acceleration issue Toyota faced a few years ago are being resolved. The Orange County District Attorney's office was believed to be the first DA's office to take Toyota to court, its suit alleging that Toyota knew its cars had defects and continued to sell them. The suit sought to "permanently enjoin Toyota from continued unlawful, unfair, deceptive, and fraudulent business practices as it pertains to both consumers and competitors" and asked for $2,500 "for every violation of the Unfair Business Practices Act," plus costs.
That suit has now been settled, Toyota - without admitting fault or wrongdoing - agreeing to pay $16 million to the county. Half of the money will go to the Orange County Gang Reduction Intervention Partnership, another four million dollars to the OC DA's office to investigate economic crime, the remaining four million being used to pay for the case.