The key EV question: Batteries alone, or a gasoline engine, too?
Skip to main content
Sister Publication Links
  • Automotive News Canada
  • Automotive News Europe
  • Automotive News Mexico
  • Automotive News China
AN-LOGO-BLUE
Subscribe
  • Subscribe
  • Account
  • login
  • HOME
  • NEWS
    • Dealers
    • Automakers & Suppliers
    • News by Brand
    • Cars & Concepts
    • Shift
    • Mobility Report
    • Special Reports
    • Digital Edition Archive
    • Q&A with Chris Bangle
      A penny for your thoughts
      Helping two cultures connect
      SEAT FEAT
    • Lyft plans to file for IPO next week, reports say
      Apple sheds light on safety of its AV program
      GM launches 'Vehicle Locate' app
      Audi expanding regions where drivers can 'ride the green wave'
    • Dealerships owned by ex-NFL stars face collapse, litigation
      Want a luxury car? Try a Kia
      Costly lesson of tortuous legal battle: Get it in writing
      Denny Hecker: A changed man?
    • Access F&I
    • Fixed Ops Journal
    • Marketing
    • Used Cars
    • Sales
    • Best Practices
    • Dealership Buy/Sell
    • NADA
    • NADA Show
    • Automakers
    • Manufacturing
    • Suppliers
    • Regulations & Safety
    • Executives
    • Leading Woman Network
    • PACE Awards
    • CES
    • Management Briefing Seminars
    • World Congress
    • Aston Martin
    • BMW
      • Mini
      • Rolls Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Fiat Chrysler
      • Alfa Romeo
      • Chrysler
      • Dodge
      • Ferrari
      • Fiat
      • Jeep
      • Maserati
      • Ram
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
      • Holden
    • Honda
      • Acura
    • Hyundai
      • Genesis
      • Kia
    • Mazda
    • Mitsubishi
    • Nissan
      • Infiniti
    • PSA
      • Citroen
      • Opel
      • Peugeot
      • Vauxhall
    • Renault
    • Subaru
    • Suzuki
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
      • Seat
      • Skoda
    • Volvo
    • (Discontinued Brands)
    • Auto Shows
      • Detroit Auto Show
      • New York Auto Show
      • Los Angeles Auto Show
      • Chicago Auto Show
      • Geneva Auto Show
      • Paris Auto Show
      • Frankfurt Auto Show
      • Toronto Auto Show
      • Tokyo Auto Show
      • Shanghai Auto Show
      • Beijing Auto Show
    • Future Product Pipeline
    • Photo Galleries
    • Car Cutaways
    • Design
  • OPINION
    • Blogs
    • Cartoons
    • Keith Crain
    • Automotive Views with Jason Stein
    • Columnists
    • Editorials
    • Letters to the Editor
    • Send us a Letter
    • Is Honda's U.K. plant closure the beginning of a Japanese Brexit?
      Tesla introduces 'Dog Mode' to keep pets cool inside the car
      A GM investment in Rivian would send the wrong messages
      Bad policy, worse political strategy on auto tariffs
    • Dealers need to be ready for anything
      EVs will come with economic cost
      Spend money on sales, not stores
      Put it on your bucket list
    • Feb. 15, 2019: EV startup gets Amazon, GM interest
      Jan. 4, 2019 | Bumpy road ahead for Detroit’s automakers and suppliers?
    • Bad policy, worse political strategy on auto tariffs
      Elaine Chao: A speedier path for innovation
      Drivers for ride-hailing services can be a prime source of fixed ops profits
      Dealers' ads for service techs need major repairs to be effective
    • NADA can help fight stair step incentives
      Let dealers invest in innovation, not renovations
      Hackett's vision for Ford is still a blur
      The last temptation of Elon Musk
    • Cadillac falls short on marketing, luxury
      Thank you, Sting, for Oshawa efforts
      Customer-centric approach set Tesla apart
      Deeper issues in tech shortage
  • DATA CENTER
  • VIDEO
    • AutoNews Now
    • First Shift
    • Special Video Reports
    • Weekend Drive
  • EVENTS & AWARDS
    • Events
    • Awards
    • World Congress
    • Retail Forum: NADA
    • Canada Congress
    • Marketing 360: L.A.
    • Europe Congress
    • Fixed Ops Journal Forum
    • Retail Forum: Chicago
    • Leading Women Conference Detroit
    • 100 Leading Woman
    • 40 Under 40 Retail
    • All-Stars
    • Best Dealership To Work For
    • PACE Awards
    • Rising Stars
    • Europe Rising Stars
  • JOBS
  • +MORE
    • Webinars
    • Leading Women Network
    • Custom Features
    • Classifieds
    • People on the Move
    • Newsletters
    • Contact Us
    • Media Kit
    • Ally: Do It Right
    • Guide To Economic Development
MENU
Breadcrumb
  1. Home
  2. Technology
June 21, 2010 01:00 AM

The key EV question: Batteries alone, or a gasoline engine, too?

James B. Treece
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    JOE WILSSENS
    General Motors' Volt boss Micky Bly: “The mass market EV has to be CAPABLE of being your primary vehicle.” Nissan, with its Leaf, and BMW aren't so sure that pure EVs can't make it.

    DETROIT -- As the era of the electrified car shifts into second gear, a central question looms:

    Can electric vehicles gain mass acceptance despite their limited range? Or must electric cars have gasoline range-extenders so the car can meet all its owner's needs?

    And Nissan, BMW and General Motors have different approaches to that crucial issue.

    BMW's Rich Steinberg says drivers find they love the electric Mini E, whose 100-mile range handles nearly all daily driving needs.

    But at GM, Micky Bly, approaching the launch of the Chevrolet Volt plug-in hybrid, says automakers must go beyond early adopters and sell a car that can handle the weekend trip as well as the daily commute.

    "I feel strongly the early-adopter movement is done in North America," Bly, GM's executive director for global electrical systems, hybrids, electric vehicles and batteries, told the Automotive News Green Car Conference/Exhibition here last week. The early-adopters market soon will be sated in Asia and Europe, too, he said.

    Bly is in charge of the Volt, which is scheduled to arrive in October or November. He touts the Volt's gasoline generator as the way to attract mainstream buyers. If there were any doubt about GM's position, Bly's presentation included a slide saying: "The mass market EV has to be CAPABLE of being your primary vehicle."

    "I think pure battery electric vehicles -- they're not going to be niche vehicles, but they're not going to be a primary vehicle," Bly said in an interview.

    By contrast, Nissan says its first-generation electric Leaf, to be launched late this year, will hit the mass market fast.

    Rich Steinberg, manager of electric vehicle operations and strategy at BMW North America, says most drivers in BMW's Mini E electric vehicle test fleet say they can handle daily driving without worry -- and they love not going to a gas station. Most recharging occurs at home.

    The additional cost and complexity of range-extended vehicles eventually will turn off buyers, he says. EV owners will realize that they can do their typical daily driving without running low of juice.

    "I think with time, when people live with the car on a day-to-day basis and they realize 'I'm not visiting the gas station more than three times a year,' they're going to decide: 'Why did I invest in that gasoline engine when I'm not really going to use it?'" Steinberg said.

    Photo
    JOE WILSSENS

    Nancy Gioia says that by 2020, 10 to 25 percent of Ford's global sales will be a hybrid, plug-in hybrid or pure-electric vehicle.

    'Zero emissions'

    Brian Carolin, senior vice president for sales and marketing at Nissan North America, says Nissan someday might offer range-extended electric vehicles. But he says Nissan's strategy with the Leaf EV is to maximize environmental benefits.

    "For us, the important thing about the Leaf was to have a unique proposition: zero emissions," Carolin said. "You can't get better than that."

    With the industry on the verge of two high-profile product introductions -- the Leaf and the Volt -- conference participants were eager to see how consumers react.

    Nancy Gioia, director of global electrification for Ford Motor Co., says that by 2020, 10 to 25 percent of the automaker's global sales volume will be a hybrid, plug-in hybrid or pure-electric vehicle.

    Demand is uncertain because the technology is changing rapidly. For example, the range of electric vehicles could grow in five years, she says, and consumer acceptance of hybrids and electrics is a work in progress.

    Few people are willing to accept "trade-offs in performance and price, she said. Ninety percent are willing to pay a bit more for an electric."

    Asked if electrified vehicles need distinctive styling to sell, Gioia said early adopters like different styling. But once the market for electrics reaches 1 to 2 percent of the market, that distinctive look will be less important.

    The Smart trap

    In conversations on the sidelines of the conference, attendees repeatedly brought up the experience of the Smart minicar and early adopters.

    At its launch in early 2008, the Smart drew a large number of hand-raisers, consumers who indicated they wanted to buy one. Smart used the same $99 advance-order system that Nissan is using for the Leaf. But once the backlog of orders began to wind down and some of those intenders passed on the chance to buy the car, sales tumbled.

    Through May, Smart's U.S. sales this year are down 63 percent to 2,772 units. The conventional wisdom is that Smart attracted early adopters but has been unable to widen its appeal.

    In contrast to the debate over the size of the market for EVs, conference speakers broadly agreed that the price of batteries for electrified vehicles -- whether electrics, hybrids, or plug-in hybrids -- will continue to fall, and that battery power and range will increase.

    Cutting battery cost is the foremost route to lowering the cost of electrified vehicles, Bly says. He says GM is using first-generation vehicle-specific lithium ion batteries in the Volt but already is developing third-generation batteries.

    GM is using more battery than it needs in the Volt because performance will deteriorate over the vehicle's life, he said. In addition, EV batteries are engineered to use some, but not all, of capacity because fully discharging a battery shortens its usable life. Broadening the usable portion of a battery's capacity is one way to lower cost.

    Prabakhar Patil, CEO of battery maker Compact Power, said, "If you can widen that range, you get more out of each battery." Bly recalls that three years ago, when GM asked battery makers to widen the batteries' usable range, "every supplier was cringing."

    "Now they're bringing in more of that bandwidth," he said.

    Meanwhile automakers are placing their bets on the right electric architecture to appeal to the consumer. The Volt-Leaf showdown will start to answer the question. And perhaps they both can win.

    Asked about the Leaf, GM's Bly said: "It's exciting. We need that sort of competition.

    "I'll be glad to see it launch one day after mine."

    Charles Child and Dave Guilford contributed to this report

    Related Articles
    Chrysler says it has an EV plan
    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Digital Edition
    THIS WEEK'S EDITION
    See our archive
    Fixed Ops Journal
    Thumbnail
    Read the issue
    See our archive
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Now

    Get access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that's vital to your business.

    Subscribe
    Connect With Us
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Our Mission

    The Automotive News mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in North America.

    AN-LOGO-BLUE
    Contact Us

    1155 Gratiot Avenue
    Detroit, Michigan
    48207-2997

    (877) 812-1584

    Email us

    Resources
    • About us
    • Contact Us
    • Media Kit
    • Subscribe
    • Manage your account
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    Copyright © 1996-2019. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • NEWS
      • Dealers
        • Access F&I
        • Fixed Ops Journal
        • Marketing
        • Used Cars
        • Sales
        • Best Practices
        • Dealership Buy/Sell
        • NADA
        • NADA Show
      • Automakers & Suppliers
        • Automakers
        • Manufacturing
        • Suppliers
        • Regulations & Safety
        • Executives
        • Leading Woman Network
        • PACE Awards
        • CES
        • Management Briefing Seminars
        • World Congress
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Fiat Chrysler
          • Alfa Romeo
          • Chrysler
          • Dodge
          • Ferrari
          • Fiat
          • Jeep
          • Maserati
          • Ram
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
          • Holden
        • Honda
          • Acura
        • Hyundai
          • Genesis
          • Kia
        • Mazda
        • Mitsubishi
        • Nissan
          • Infiniti
        • PSA
          • Citroen
          • Opel
          • Peugeot
          • Vauxhall
        • Renault
        • Subaru
        • Suzuki
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
          • Seat
          • Skoda
        • Volvo
        • (Discontinued Brands)
      • Cars & Concepts
        • Auto Shows
          • Detroit Auto Show
          • New York Auto Show
          • Los Angeles Auto Show
          • Chicago Auto Show
          • Geneva Auto Show
          • Paris Auto Show
          • Frankfurt Auto Show
          • Toronto Auto Show
          • Tokyo Auto Show
          • Shanghai Auto Show
          • Beijing Auto Show
        • Future Product Pipeline
        • Photo Galleries
        • Car Cutaways
        • Design
      • Shift
      • Mobility Report
      • Special Reports
      • Digital Edition Archive
    • OPINION
      • Blogs
      • Cartoons
      • Keith Crain
      • Automotive Views with Jason Stein
      • Columnists
      • Editorials
      • Letters to the Editor
      • Send us a Letter
    • DATA CENTER
    • VIDEO
      • AutoNews Now
      • First Shift
      • Special Video Reports
      • Weekend Drive
    • EVENTS & AWARDS
      • Events
        • World Congress
        • Retail Forum: NADA
        • Canada Congress
        • Marketing 360: L.A.
        • Europe Congress
        • Fixed Ops Journal Forum
        • Retail Forum: Chicago
        • Leading Women Conference Detroit
      • Awards
        • 100 Leading Woman
        • 40 Under 40 Retail
        • All-Stars
        • Best Dealership To Work For
        • PACE Awards
        • Rising Stars
        • Europe Rising Stars
    • JOBS
    • +MORE
      • Webinars
      • Leading Women Network
      • Custom Features
        • Ally: Do It Right
        • Guide To Economic Development
      • Classifieds
      • People on the Move
      • Newsletters
      • Contact Us
      • Media Kit