It makes sense that a company called General Electric would be bullish on cars with cords. But even by that standard the company is diving into the deep end, with what it says will be the biggest order ever placed for electric vehicles.
Of course, almost any order would be the biggest order, but CEO Jeffrey Immelt isn’t screwing around. Speaking in London yesterday, he said GE will order “tens of thousands” of electric vehicles in about a week, a move that is sure to jump-start the nascent EV market as automakers like Nissan and General Motors bring the cars to showrooms later this year.
The plan makes sense for several reasons.
First and foremost, General Electric builds the equipment that provides one-third of the world’s electricity, so of course it will do everything possible to promote the technology. GE is moving quickly into the EV space, building charging stations and working with A123 Systems to develop batteries. According to Bloomberg, Immelt says about half of the company’s sales force of 45,000 employees will drive electric vehicles. That will go a long way toward raising public awareness of the technology. And don’t forget that GE Capital has a vehicle-leasing division.
“GE has been one of the biggest players in this game and certainly has a lot to gain from the electric vehicle,” Brett Smith, a vehicle technology analyst at the Center for Automotive Research, told Bloomberg. “They’ve really truly tried to push this hard to get things going, and it seems to be a core corporate value.”
Immelt didn’t specify a timeline for when the purchases would be made, nor did he identify which manufacturer(s) would receive the order. Smith told Bloomberg an order of that size would be filled by several companies. But our money is on Renault-Nissan getting the bulk of it.
Here’s why:
GE and Better Place recently announced a “technology and financing partnership” to develop public charging infrastructure and accelerate the adoption of electric vehicles, especially by corporate fleets. Better Place, a Silicon Valley startup founded by Shai Agassi, plans to roll out charging infrastructure and battery-swap stations in Israel and elsewhere — and Renault is its partner in that endeavor.
Better Place and Renault signed a deal last year to put 100,000 EVs on the road in Israel and Denmark by 2016. Better Place also has been using converted Nissan Rogues to show off its battery-swap technology in Tokyo.
It’s worth noting that GE’s partnership with Better Place includes a plan to develop a mechanism for financing batteries — beginning with a pilot program to finance 10,000 batteries in Israel and Denmark. Who’s currently building the only car with a swappable battery? You guessed it — Renault. That car, the Fluence Z.E., is being tested in Israel.
General Electric and Nissan also are working together to develop so-called “smart charging.”
What’s more, Renault-Nissan is, at this point, the only company that looks like it could have the capacity to fill GE’s order. Renault-Nissan CEO Carlos Ghosn has made it clear he believes electrics are the future, and he is positioning the two automakers to lead the market.
Renault has at least three EVs in the works, and Ghosn has said it will have the capacity to build 200,000 EVs annually by 2015. Nissan’s Leaf arrives at the end of this year and will be followed by an electric Infiniti in 2013. Nissan says it has the capacity to build 50,000 Leafs worldwide next year and will increase that to 500,000 worldwide by the end of 2013.
This is all speculation, and there’s nothing to suggest GE won’t be buying some Chevrolet Volts or Ford Transit Connect Electric delivery vans or perhaps even some Codas or Teslas. But it looks like there are going to be a lot of electric Nissans and Renaults in GE parking lots before long.
And no matter how it works out, it’ll be an interesting play to watch.
Photo: Renault. The Renault Fluence Z.E. rolls in Paris.
The Alternative Fuel Vehicle Institute’s Kimberly Taylor gives NGVsNow an overview of this year’s Las Vegas conference and shares some thoughts on the future of natural gas in America.
Nissan today broke ground on the project that brings Nissan LEAF production to the United States. The groundbreaking ceremony marks the start of construction on a manufacturing facility in Smyrna, Tenn., that will produce the lithium-ion batteries that power the Nissan LEAF zero-emission vehicle. The all-electric Nissan LEAF will be produced at Nissan’s vehicle assembly facility in Smyrna beginning in 2012.
Nissan LEAF and battery production will create up to 1,300 jobs when the plants are operating at full capacity. The battery plant, one of the largest vehicle battery manufacturing plants in North America at 1.3 million square feet at full capacity, will be capable of producing 200,000 advanced-technology batteries annually. It will be located adjacent to the vehicle assembly plant, which will be retooled to accommodate production of Nissan LEAF and will be capable of producing 150,000 electric cars annually.
“Nissan is committed to affordable, sustainable mobility. What we’re doing here will radically transform the automotive experience for consumers. Today is a major step in helping create a green economy in the United States,” said Carlos Ghosn, president and CEO of Nissan Motor Co., Ltd. “Production of Nissan LEAF and lithium-ion batteries in Smyrna brings the United States closer to its goal of energy independence, creates green jobs and helps sustain American manufacturing. Nissan is a leader in global manufacturing innovation, and this state-of-the-art battery plant will strengthen that leadership.”
“Tennessee has become a national leader in driving clean energy innovation, and Nissan’s commitment to build this advanced-technology battery facility here in Tennessee is a key part of that success,” said Tennessee Governor Phil Bredesen. “Nissan’s investment in Tennessee began more than two decades ago, and this new manufacturing plant leads the way to the next generation of automotive and clean energy jobs in the Volunteer state.”
Combined, the construction of the battery plant and modification of the Smyrna manufacturing facility to accommodate Nissan LEAF production represents an investment of up to $1.7 billion, which initially is being supported by a U.S. Department of Energy loan for 80 percent of that investment, up to $1.4 billion.
The loan was issued as part of the Advanced Technology Vehicles Manufacturing Loan Program, a $25 billion program authorized by Congress as part of the Energy Independence and Security Act of 2007. The program is designed to accelerate the development of vehicles and technologies that increase U.S. energy independence, create cleaner means of transportation and stimulate the American economy.
Approximately 13,000 U.S. consumers have placed a reservation for Nissan LEAF since reservations opened on April 20. The reservation process, which is open to the general public via NissanUSA.com, is the first step in securing a place on the list to purchase or lease Nissan LEAF. Nissan LEAF begins rolling out to select markets in the United States, Japan and Europe in December, with increased availability beginning in spring 2011, and full market rollout in 2012. It initially will be produced in Oppama, Japan, and will be equipped with lithium-ion batteries being produced in Zama, Japan. The Renault-Nissan Alliance will also produce lithium-ion batteries in Cacia, Portugal, and Sunderland, UK, as well as in Renault’s Flins plant in France.
In North America, Nissan’s operations include automotive design, engineering, consumer and corporate financing, sales and marketing, distribution and manufacturing. Nissan is dedicated to improving the environment under the Nissan Green Program 2010, whose key priorities are reducing CO2 emissions, cutting other emissions and increasing recycling. More information on the Nissan LEAF and zero emissions can be found at www.nissanusa.com.
Take a look inside GM’s new EN-V concept car as Chris Borroni-Bird explains how this zero-emission, electric vehicle could serve as the automobile solution of the future. One major societal trend that GM is addressing with the EN-V is urbanization.
