+++ BMW ‘s head of development, Klaus Fröhlich, whose name ironically means ‘cheerful’, is not at all happy with Volkswagen. Fröhlich and BMW chairman Harald Krüger gave speeches as part of a preview event for the Frankfurt motor show, and research chief Fröhlich had strong words for those car makers he thinks have made life difficult for everyone else. “The actions of some have severely compromised the credibility and trustworthiness of our industry”, he said. “As a result, we now face tighter, and sometimes irrational, approaches to legislation. Around the world, regulations on fuel consumption, emissions and safety are changing faster than ever before”. BMW has largely emerged unscathed from the Dieselgate scandal, aside from recent allegations that German car manufacturers colluded to set supplier prices and make special arrangements around emissions treatment systems. Fröhlich is keen to BMW’s enthusiasm in cutting emissions, and doing it the right way: “We were the only ones to deliver on the voluntary agreement on CO2 emissions; since 1995, we have cut our average fleet emissions by over 40 percent. And when it comes to cutting emissions, we don’t just follow the letter of the law. We deliver on its principles. Independent tests show that our emissions are the lowest. And we use superior technologies to our competitors”. So there, looking at no one in particular (Volkswagen), BMW is feeling grumpy that the emissions legislation rug has been pulled out from under its feet and now it has to spend lots of money on things that wouldn’t be a problem if everyone had just sorted themselves out in the first place. Your move Volkswagen: some flowers and a box of Thorntons at the Frankfurt motor show might help. +++
+++ BMW will preview the third model in its ELECTRIC i brand line-up with the unveiling of a new concept car at next week’s 2017 Frankfurt motor show. The eagerly anticipated i model, which is expected to take the i5 name into production, is planned to be introduced in 2021 as part of a range of up to 25 plug-in hybrid and pure electric vehicles announced by BMW chairman Harald Krüger in an update to the German car makers ‘Number One Next’ model strategy. “By 2025, we will offer 25 electrified vehicles, 12 will be fully electric”, Krüger said in a statement to the media in Munich. Krüger confirmed the existence of the new i model, referring to it as a “significant milestone in BMW’s roadmap for e-mobility”. He added: “It is a vision of how we imagine a four-door, fully electric vehicle between the i3 and i8. It is a vision we want to realise in the foreseeable future”. The i5 is among 4 new pure electric models set to be confirmed by BMW at the Frankfurt motor show. Others include the first series production electric-powered Mini, an electric-powered version of the X3 and a separate i brand model known under the working title iNext. While shrouded in secrecy 5 days before its planned unveiling, the i5 is expected to take the form of a sedan offering accommodation for up to 5 adults and a pure electric range of between 500 and 700 km. Commenting on the technical aspects of the new i model, BMW R&D boss Klaus Fröhlich said: “The i model we have planned for launch in 2021 will incorporate our 5th generation battery electric system; a step that will take us to the next level”. BMW’s 5th-generation battery electric system has been conceived around a new generation of battery cells and electric motors, providing what Fröhlich describes as “a big leap in energy density and overall range” over the existing i3. BMW has plans to provide the new i brand model with advanced new autonomous driving technology. Fröhlich said future i models will be differentiated from BMW’s more mainstream electric-powered models planned for introduction by 2025, including the upcoming Mini Electric and X3 Electric, by innovative technology such as Level 3 and Level 4 autonomous driving technology. “It’s time to forge ahead, not just step by step, incrementally working our way up from Level 2, but by mastering Level 5 from the very beginning. Autonomous driving requires the full range of factors: system leaps, additional redundancy requirements, computing power and connectivity. We are preparing to offer highly autonomous driving by 2021, when the iNext is launched, wherever legislation allows it. And based on this, we will implement Levels 3 to 5 in our range”, he said. +++
+++ JAGUAR LAND ROVER (JLR) has committed to an electrified future, promising every single new passenger car and SUV model released from 2020 onwards will feature either a pure-electric, full-hybrid or mild-hybrid powertrain. Jaguar’s first all-electric model is already confirmed to be the I-Pace cross-over which will be rolled-out next year and tipped to be revealed in production guise at next week’s Frankfurt motor show. Beyond that, Jaguar’s oldest model (the XJ upper-large premium sedan) will likely be the next to receive the hybridisation or electrification treatment and serve as a technological flagship for the rest of the Leaping Cat line-up including the XE, XF, E-Pace, F-Pace and F-Type. Land Rover on the other hand, already offers hybrid versions of its Range Rover Sport and Range Rover Vogue in overseas markets, but will need to expand its electrification to the Range Rover Evoque and new Range Rover Velar, as well as the Discovery and Discovery Sport models. JLR chief executive officer Ralf Speth said expanding its electrification technologies across the product portfolio will give its buyers more options. “Every new Jaguar Land Rover model line will be electrified from 2020, giving our customers even more choice”, he said. “We will introduce a portfolio of electrified products across our model range, embracing fully electric, plug-in hybrid and mild hybrid vehicles”, Alongside the announcement, Jaguar also unveiled an electrified version of its iconic E-Type (dubbed Zero) which swaps out the petrol engine for a 220 kW electric motor capable of accelerating the 1968 roadster from 0 to 100 km/h in 5.5 seconds. Instrumentation has also been updated to accommodate the emissions-free powertrain, while Jaguar claims its lithium-ion battery pack measures the same size and almost the same weight as the outgoing 6-cylinder engine. The E-Type Zero boasts a real-world driving range of 270 km, while a full charge takes about seven hours from a standard charging outlet. The Future-Type concept is also on display in London, while the remainder of the Tech Fest also covers autonomous testing in the rear world, recycling vehicle materials into surfboards and recruiting engineering employees via live challenges and a code-breaking app. +++
+++ MAZDA has revealed that its next-generation SkyActiv-X diesel engine due in 2019 will more than meet increasingly stringent emissions regulations while improving efficiency and driveability by a substantial margin. According to Mazda managing executive officer in charge of powertrain and vehicle development and product planning, Ichiro Hirose, the level of advancement that the forthcoming SkyActiv-X diesel engine shows over the existing version is at least in the region of 30 percent. “In terms of improvement, there is still a lot more that, in terms of diesel and petrol, that can be had”, Hirose told. “We still have a lot of potential and we are progressing in development as we speak with the diesel. If we look at our history, we introduced the SkyActiv-G which had the equivalent fuel economy as the diesel engine that was available in the market at the time, then we introduced the SkyActiv-D and that pulled ahead. So now we have introduced this (SkyActiv-X) and the gasoline is the same fuel economy as the diesel, so next time the diesel will have an equally big move forward”. With the future of diesel engines under a cloud as opposition forces have gained momentum in recent months (particularly in Europe and the UK, where millions of vehicles are being updated in a bid to cut emissions) Mazda had not, up until now, confirmed it would continue to develop its SkyActiv-D range of diesels. However, Mazda believes the anti-diesel sentiment should centre on commercial vehicle and public transport applications, rather than passenger cars, since the latter contribute only a fraction of the emissions. “We need to think about what works in the real world”, Hirose said. “This is Mazda’s way of doing things”, Mazda’s success with diesel has been unprecedented since the latest-generation SkyActiv-D powertrains were released with the original CX-5 in 2012. Demand in Japan has been especially surprising, with 70 percent of orders for the latest KF series currently going to the oil-burner. In the Mazda3/Axela, that figure is hovering around a third of all volume, while the CX-3 has only recently been available with the 1.5-litre SkyActiv-D in its domestic home market. Despite the ongoing ‘dieselgate’ scandal, Mazda is about to introduce the CX-5 diesel in North America. “We have the technology to meet or exceed emissions requirements with our clean diesel so why not?”, Hirose said. +++
+++ NISSAN ’s new Leaf electric car will go farther on a charge and has a new type of drive technology and the possibility of single-pedal driving. It will also be cheaper, though the world’s top-selling electric car still won’t match the driving range of its prime competitors. The zero-emissions vehicle promises a travel range of about 400 kilometers in Japanese driving conditions or 150 miles in the U.S., before needing another charge. The company is characterizing it as an approximate 40 percent improvement from up to 280 kilometers or 107 miles for Leaf models on sale now. The distances vary by country because driving conditions and measuring standards are different. The range also depends on what other features are being used such as the car’s heater. Both Tesla’s Model 3 and the Chevrolet Bolt can travel over 200 miles (322 kilometers) between charging stations. The 200-mile mark is considered by many industry experts as the range needed to ease driver fears that they’ll run out of juice short of their destination. Brian Maragno, director of electric vehicle marketing for Nissan in the U.S., said the 2018 Leaf will start at $29,990 before a $7,500 federal tax credit, an important price point to current Leaf owners, many of whom will be repeat buyers. The Bolt, by comparison, starts at $36,620 while the Model 3 starts at $35,000. In Japan, it starts at 3.15 million yen ($29,000) with the most expensive version costing 3.99 million yen ($37,000). The model goes on sale in Japan on Oct. 2, and in January in the U.S., Canada and Europe. A Leaf with over 200 miles of range likely is coming for the 2019 model year, but it will cost more, Maragno said. The restyled 2018 Leaf is lower and more sculpted than its bulbous predecessor, and Maragno said it also comes with new features that should attract new buyers. The base model S comes standard with automatic emergency braking, and more expensive model lines have an optional semi-autonomous driving feature that keeps the car centered in its lane and stops it from hitting objects in front of it. Also standard is a 38 percent increase in power to 150 horsepower. The car can be operated in one-pedal mode that automatically slows or stops the car when the driver eases up on the accelerator, but it still includes a brake pedal, especially for emergencies. Research has shown that Leaf buyers wanted a car below the $30,000 starting price, but they also wanted more features, Maragno said. Even with the added features, Nissan lowered the price by $690 from the 2017 model, making it attractive to current owners, he said. “For me, it’s important for us to focus on the loyalty piece. You don’t want to alienate those people”, he said. Nissan is waiting to introduce the 200-mile model because it takes longer to develop, Maragno said. And while that range is important in the U.S., he noted it is not as significant in other markets. Nissan Executive Vice President Daniele Schillaci stressed that the Leaf was superior to Tesla offerings because Nissan had decades of experience making cars, and had more expertise on safety and other convenience features for cars. “The new Leaf is not just an EV”, said Schillaci, who heads the zero-emissions vehicle program at Nissan. The Leaf is the world’s best-selling electric vehicle, selling a cumulative nearly 300,000 so far. Some analysts are more skeptical about electric cars’ appeal to the broader market, noting the biggest obstacle is their limited driving range per charge. Several breakthroughs in battery technology are likely needed before they become affordable and practical for regular consumers. Koichi Sugimoto, analyst at Mitsubishi UFJ Morgan Stanley Securities Co in Tokyo, says many automakers are selling green models because of tightening emissions regulations, especially in Europe and California, rather than because of what he called “natural sales growth. There really is no outstanding attractive quality about an electric vehicle,” he said, noting drawbacks such as finding charging stations. Nissan said Japan has 28,000 charging stations and more are being added. The remodeled Leaf also gets a 6.6-kilowatt onboard charging system that draws more electricity from a 240-volt charging outlet, allowing the Leaf to go from empty to fully charged in about 7.5 hours”, Maragno said. On the day of the Leaf rollout, General Motors announced that the Bolt is now available in all 50 U.S. states. The company had been phasing in the car starting on the West Coast. Other Japanese automakers have not been as bullish on electric vehicles. Toyota has been more aggressive about gas-electric hybrids, exemplified in its hit Prius model, and is expanding to plug-in hybrids, as well as hydrogen-powered vehicles. But the Leaf is a core product for Yokohama-based Nissan, said Chief Executive Hiroto Saikawa. He said more Nissan models will get “electrified”, in the next decade and beyond, as gas engine models increasingly switch to electric versions. Automakers will also have to change to meet new kinds of competition, forming partnerships and acquiring software and connectivity capabilities, not just sticking with traditional engineering. Although it remains unclear which company may emerge the winner in electric vehicles, many see that switch as inevitable. Tony Seba, an expert on technological evolutions, who teaches at Stanford University, says the gas engine vehicles may go the way of film cameras before the advent of digital photography and old-style phones before the arrival of smartphones. “Automakers still have the ability to compete, but it’s going to be a totally different world”, he said. +++
+++ The unveiling of a TESLA commercial truck, expected later this month, could be the “biggest catalyst” in the trucking industry in decades, Morgan Stanley analysts said in a note. The Tesla truck will be electric and “we have high confidence that it could have significant autonomous/autopilot capabilities as well”, the analysts said. The Silicon Valley company could also announce new partners, such as trucking or shipping and logistics companies, and services such as battery leasing, they said. Tesla Chief Executive Elon Musk announced the truck in a tweet back in April, amid a record run for the stock. He called the truck “seriously next level” but stopped short of details. A commercial electric truck and a “high passenger density urban transport” vehicle, presumably a bus, were also part of Musk’s long-term goals for Tesla. In a blog post last year spelling out such plans, Musk said the truck and the bus were in the “early stages of development” and would likely be ready to be revealed this year. “We believe the Tesla Semi will deliver a substantial reduction in the cost of cargo transport, while increasing safety and making it really fun to operate”, Musk wrote then. Tesla is fresh from unveiling the Model 3, its all-electric sedan aimed at the masses, and it is hoping to ramp up the Model 3 production by the end of the year. Last month, it sold $1.8 billion in debt, more than it had planned, in part to shore up its finances ahead of that production ramp. The Morgan Stanley analysts said they expect the company to unveil a prototype likely later this month, and that sales would begin in 2020. Prices would hover around $100,000 if batteries are to be leased separately, they said. In terms of range, a perennial preoccupation with electric vehicles, the analysts said Tesla is unlikely to put in a large, 1,000 kWh battery in the truck to give it a 600-mile to 700-mile range as it would be “costly and practically prohibitive”. Tesla instead would choose to put in a smaller battery, around 250 kWh and 300 kWh, and “choose to solve the range problem either through optional battery swapping or very rapid supercharging/flash charging. We will look for Tesla’s plans to roll out battery swapping/charging infrastructure if separate from the trucks. Since the truck would also be capable of autonomous platooning, there may need to be some discussion of liability/practical applications as well”, the analysts said. A Tesla truck would put pressure on other truck makers and suppliers to offer their own EV truck plans, they said. Markets would view that rush as “a key catalyst to the intelligent trucking thesis becoming ‘real’ ”, the analysts said. Daimler Truck has unveiled its heavy-duty electric truck, with a range of up to 200 kilometers and already offers an electric light-duty truck. +++
+++ VOLKSWAGEN is actively working on deals for its noncore assets as well as acquisitions, but discussions of a possible merger with Fiat Chrysler was “speculation”, Chief Executive Matthias Müller said in an interview. Müller said the company is open to talks and a new team is working to sell a businesses no longer considered critical. These noncore assets account for as much as 20% of the company’s current annual revenue, he added. Müller declined to comment directly on talks the company is believed to be holding with Fiat Chrysler about developing light utility vehicles. He did say the company is now routinely engaged in such exploratory talks with many manufacturers, but it isn’t likely that Volkswagen is going to get involved soon in a merger of mass volume car makers, as Fiat Chrysler’s Chief Executive Sergio Marchionne has been preaching for the past 2 years. “We’re a big company and don’t have any interest in getting any more bloated. There has been a lot of speculation about FCA, which we’ve noted, but it is just speculation and nothing more”, Müller said. “If we say we’re speaking to Fiat, then we’re also speaking to 5 or 6 other companies in order to see how we can optimize our business”, he said. “The difference with the past is that Volkswagen is now willing to get involved in such exploratory talks”, he added. +++