Electric vehicles jockey for market share

Automotive Industries, Feb, 1998 by Allen Frank

The 14th Electric Vehicle Symposium (EVS-14) defines a maturing technology and growing role for EVs.

The automotive and electric-utility industries are demonstrating that electric vehicles (EV) will ultimately stake a claim for a sizable chunk of the personal transportation market. In moves quickly followed by "green themes" at the recent L.A. and Detroit auto shows, the 14th Electric Vehicle Symposium in Orlando, Fla., rolled out a slew of advanced electric cars, trucks, buses, bicycles and scooters as well as infrastructure- and marketing-expansion plans (see "U.S. Big Three Unveil Latest 'Green' Machines").

Perhaps the largest and most significant alliance announced at EVS-14 was a global alliance between Ballard Power Systems of Canada, Daimler-Benz AG and Ford to develop fuel cell technology The three companies signed a memorandum of understanding Dec. 15 in Stuttgart, Germany. A final agreement should be reached within a few months.

"We have been working on the technology to support proton-exchange membrane fuel cell vehicles for many years, and view fuel cells as one of the most important technologies for the early 21st century," said Ford Chairman Alex Trotman. "With our collaborative efforts, we think we can accelerate the commercial viability and implementation of fuel cells."

The agreement creates two new companies. One is DBB Fuel Cell Engines GmbH, which will be responsible for fuel cell systems development. Daimler-Benz is the majority shareholder, with Ballard and Ford holding 26% and 23% shares, respectively. The other new company, ECo, of which Ford will hold the majority interest and invest about $420 million, will develop electric-drivetrain systems. Ballard and Daimler-Benz will each own 19% of ECo. Daimler-Benz and Ford currently own 20% and 15%, respectively, of Ballard Power Systems, Inc.

The new alliance aims to have fuel cell powertrains available to support commercialization of fuel cell-powered vehicles by 2004. GM made similar commercialization predictions for fuel cell technology at the Detroit auto show in January Similarly, List year's Tokyo Motor Show pushed fuel cell and hybrid technology to the forefront of nearly every Japanese automaker's display

For the emerging, infrastructure-dependent EV industry, there was welcome news. Edison International's Edison EV, the largest U.S. provider of EV-recharging support services, announced it will distribute Electric Vehicle Infrastructure Inc.'s (EVI) conductive charging technology throughout North America. EVI will establish publicly available units at shopping malls, transit stations, movie theaters and other sites, Edison EV says.

In addition, Honda and Ford announced a program, also to be administered by Edison EV, that would provide matching funds to set up nearly 40 publicly accessible charging sites.

Edison EV will offer a retooled version of EVI's ICS-200 wall-mounted connecting device with AVCON connector and cable, at a manufacturer's suggested retail price of $1,800 per unit beginning in March. The current version retails for slightly more than $2,200. Edison EV also distributes GM Advanced Technology Vehicles' Magne Charge inductive chargers in California and Arizona.

New Charges

In a related announcement at the show, GM unveiled the high-speed version of Magne Charge. It claims the unit recharges a lead-acid battery to 800/6 in 7.5 minutes, or a nickel-metal hydride (NiMH) battery to 80% in 10 minutes. The fast charge can provide a respective 60- or 100-mile range boost for the automaker's two EVs. GM also confirmed it would change from lead-acid to NiMH batteries in its EVs Us year.

Despite terrible EV leases/sales so far, GM's EV brand manager Frank Pereira foresees improved sales and markets for electrics. He announced GM will expand its EV1 leasing to five more Saturn dealerships in San Francisco, Calif. He hinted another key market could be New York where seven retailers were lined UP in early December. Pereira says EVI sales could reach 500 to 700 units in 1998, compared to just 300 last year.

Within a decade, GM believes EVs might constitute as much as 25% of the firm's business. Toyota has made similar statements. Pereira also hinted that, in addition to a NiMH-powered EV1, the company is investigating a hybrid gasoline/electric EV1 and will introduce a longer, four-seater model. The hybrid version was subsequently unveiled at the North American International Auto Show (see p. 99).

As GM moves toward NiMH it will not be alone. Chrysler says SAFT America Inc. will supply NiMH batteries for all of its second-generation electric minivans that previously used Electrosource lead-acid batteries. SAFT, based in Valdosta, Ga., is a licensee of Ovonic Battery Co. Inc., Troy, Mich. The agreement marks the first use of advanced NiMH batteries in a minivan.

Chrysler's five-passenger Electric Powered Interurban Commuter (EPIC) minivan, announced last year and offered for public test drives at EVS-14, will be available next fall for the 1999 model year. Chrysler is offering the EPIC to commercial and government fleets in New York and California through a monthly lease rate of $450, with no downpayment and for a three-year term. As an option, Chrysler is offering a one-time, single-lease payment of $15,000 for a three-year term. "The (NiMH) battery will improve the driving range of the EPIC to 80-90 miles under optimal conditions," said Jim Cerano, Team EPIC program manager.