The automotive world is witnessing a seismic shift, a departure from over a century of gasoline dominance. For years, electric cars were relegated to the sidelines, often seen as novelties rather than viable transportation solutions. While the public indulged in the roar of SUVs and the ruggedness of trucks, a silent revolution was brewing, and it’s finally taking center stage.
The North American International Auto Show in Detroit, a traditional bellwether for the domestic auto industry, has long been synonymous with spectacle. Past shows were a dazzling display of roaring engines and chrome, where “green” vehicles, if present at all, were largely token gestures, concept cars with little prospect of reaching dealerships.
But the winds of change are undeniable. This year, Detroit was different. The auto show became a launchpad for electric vehicles (EVs), a clear indication that the race to electrify transportation is not just underway – it’s accelerating. From established giants to ambitious startups, the industry is converging on a future powered by batteries, signaling a profound Car Revolution. While the high-performance Tesla Roadster, with its hefty price tag, was once the sole readily available plug-in EV, the landscape is rapidly changing. By the end of 2010, it was poised to be joined by a wave of contenders like the Nissan Leaf, Coda sedan, and Think City, marking the true beginning of the electric car revolution for the mass market.
This industry-wide pivot is not merely a superficial nod to environmentalism. The embrace of electric vehicles in Detroit is a concrete response to a powerful convergence of factors. Governmental policy is playing a crucial role, particularly the Obama administration’s green initiatives. Department of Energy (DOE) loans and grants, coupled with economic stimulus funds allocating billions to green energy programs, are providing substantial financial impetus. Tax credits for battery technology investments and strategic grants aimed at accelerating battery adoption are further fueling this car revolution. Michigan, despite facing economic hardship, is becoming a hub for green jobs, largely due to this influx of federal support.
Beyond government incentives, other forces are propelling the electric vehicle revolution. Stricter federal mandates for improved fuel efficiency, targeting an average of 35.5 miles per gallon by 2016, are compelling automakers to innovate. Growing concerns about global warming and the looming specter of peak oil are also undeniable drivers. Underlying these pressures is the remarkable progress in battery technology, a critical enabler of this electric shift.
The advancement of lithium-ion batteries stands as a cornerstone of the electric car revolution.
Even without extensive government support, the momentum behind electric vehicles is palpable. Coda Automotive, a California-based startup, exemplifies this entrepreneurial drive, having secured significant private funding. The involvement of former Goldman Sachs executives like CEO Kevin Czinger and co-chairman Steven Heller, along with investors such as former Treasury Secretary Henry M. Paulson, underscores the financial community’s growing confidence in the electric car revolution as a sound investment.
The rapid evolution of energy-dense lithium-ion batteries is indeed a pivotal element in making modern electric vehicles a reality. William Clay Ford Jr., executive chairman of Ford, acknowledged this technological leap at the Detroit Auto Show. He remarked that just five years prior, battery development seemed stagnant, leading Ford to heavily pursue hydrogen fuel cell technology. However, the substantial investment and intellectual capital poured into electrification have yielded unexpected and significant improvements in battery technology, instilling confidence that electric vehicles can now deliver a positive customer experience.
Elon Musk, CEO of Tesla Motors, celebrated a significant milestone at the auto show, showcasing the 1,000th electric Roadster produced by his company. For a relatively young company, this achievement was substantial. Musk highlighted the rapid growth, noting the increase from 150 cars built and two stores a year prior to a dozen retail locations.
While 1,000 vehicles might be a modest figure for a major automaker’s annual output, it represents a considerable achievement in the nascent electric vehicle market. Considering the electric car’s historical false start in the 1920s, when affordable gasoline vehicles eclipsed early electric models, few startups have successfully reached this production milestone, particularly in the battery-powered sector.
Here’s a closer look at some of the key players driving this car revolution and their contributions to bringing battery-powered and plug-in hybrid vehicles to the market:
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Renault-Nissan Alliance: This global automotive powerhouse stands out with its comprehensive plug-in strategy and the resources to execute it on a global scale. Nissan is spearheading the charge with the Leaf, a fully electric sedan boasting a 100-mile range. Beyond just launching the vehicle, Nissan is building a robust ecosystem, partnering with AeroVironment for home charging solutions and collaborating with governments at various levels to establish public charging infrastructure, both in the U.S. and internationally. In collaboration with Better Place, Renault is developing a second electric vehicle model as part of a broader initiative to create charging networks in countries like Israel. Carlos Ghosn, head of Renault-Nissan, projects that electric vehicles could capture 10% of global car sales by 2020, demonstrating the scale of their ambition for this car revolution.
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Ford Motor Company: Ford’s electrification strategy includes a plug-in hybrid version of the Focus in 2011 and a next-generation hybrid, built on its global compact C-platform, in 2012. The company announced a significant $450 million investment in Michigan to support its electrification efforts, underscoring its commitment to this car revolution. Michigan Governor Jennifer Granholm emphasized the transformative impact of this investment, noting the state’s resurgence in the automotive sector, fueled by a combination of federal funding and state tax incentives.
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General Motors: The Chevrolet Volt has become a flagship vehicle in GM’s narrative of reinvention and its participation in the car revolution. The Volt, a plug-in hybrid utilizing a small gasoline engine to generate electricity for its electric motor, has garnered positive reviews for its driving experience. For GM, which had previously faced challenges in the hybrid market, the Volt is a crucial vehicle, albeit with an initial price point of around $40,000. While initial sales volumes are projected to be modest, the Volt is strategically important for reshaping GM’s image and demonstrating its commitment to the electric car revolution. A Cadillac version of the Volt is also under consideration, indicating the potential for broader application of this technology within GM’s portfolio.
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Tesla Motors: Tesla has carved a unique niche in the electric vehicle landscape, starting with the high-end Roadster. Combining striking design with supercar performance, the Roadster established Tesla as a leader in the electric car revolution, albeit in the luxury segment. The company’s momentum is evident in Daimler’s $50 million investment for a 10% stake and a substantial $465 million DOE funding allocation for the Model S sedan. The Model S, envisioned as a more practical and accessible version of the Roadster with Maserati-like styling, represents Tesla’s ambition to move beyond niche markets. Elon Musk has consistently stated that Tesla’s strategy involves leveraging the sales of its high-performance vehicles to finance the development of a mass-market electric car, a key step in furthering the car revolution.
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Fisker Automotive: Positioned as a direct competitor to Tesla in the realm of premium electric vehicles, Fisker Automotive, led by automotive designer Henrik Fisker, is poised to launch the Karma, a high-performance plug-in hybrid. The Karma boasts impressive specifications, including rapid acceleration and high fuel efficiency, attracting attention from high-profile figures like Al Gore, who is reportedly on the waiting list. Fisker also has plans for a more affordable model, known as Project Nina, supported by $528 million in DOE funding to be manufactured in a former GM plant in Delaware, further expanding the reach of the car revolution.
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Coda Automotive: Coda Automotive is focused on accelerating the adoption of all-electric vehicles with its battery-powered sedan, slated for launch in late 2010. Utilizing batteries from a joint venture in China and leveraging expertise from Western automotive companies, Coda aims to deliver an electric vehicle at a competitive price point. CEO Kevin Czinger emphasizes the company’s mission to drive the car revolution by making EVs more accessible. Coda’s initial marketing strategy will focus on California, utilizing an internet-based sales model, with a production capacity of 20,000 vehicles per year, demonstrating a scalable approach to the electric car market.
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Think Global: Think Global represents a resilient player in the electric vehicle sector with a long and eventful history. Originating as a Norwegian company, Think attracted investment from Ford in the late 1990s for its compact City commuter car. After navigating ownership changes and bankruptcy, Think re-emerged with partial ownership by U.S. battery company Ener1, securing significant DOE funding to expand battery production in Indiana. Think electric vehicles are planned for production in Elkhart, Indiana, starting in 2011, bringing new opportunities to a region heavily impacted by economic downturn. The two-seat Think City, with a 100-mile range on lithium-ion batteries, is positioned as an affordable electric option, particularly with government tax credits, contributing to the democratization of the car revolution.
The list of participants in this electric vehicle race continues to expand. Toyota is actively developing plug-in hybrids and fuel-cell vehicles, showcasing a smaller Prius variant in Detroit. Chrysler’s ambitious electric vehicle rollout, while temporarily slowed by bankruptcy and merger with Fiat, remains a significant part of the long-term car revolution. Honda continues to innovate in hybrid technology, with models like the CR-Z. BMW is exploring electrification with the Mini and the Concept ActiveE, a plug-in version of the Series 1 coupe. Even Audi has demonstrated a growing interest in the electric segment, unveiling its e-tron electric vehicle concepts.
By next year, the electric car revolution will move beyond auto show displays and into showrooms. The shift is undeniable: electric vehicles are no longer a distant dream but are rapidly becoming a mainstream reality, poised to reshape the automotive landscape and drive us towards a more sustainable future.
