Why Auto Manufacturers Care About Getting Electric Vehicles to Market

by Bob Shively, Enerdynamics President and Lead Instructor

At the end 2013 there were approximately 70,000 electric vehicles in the U.S. and 104,000Parking Space only for electric vehicles plug-in hybrids. This is minuscule compared to more than 226 million registered vehicles in the U.S. Why, you may wonder, do car manufacturers even bother? A short answer: They have to.

In 1990 the State of California created a Zero Emissions Vehicle (ZEV) mandate. With ongoing modifications to the rules, nine other states have joined California including Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Vermont. The current rules will require approximate 15% of light-duty vehicles sold by 2025 to be either electric or fuel-cell powered. Together these states make up about a quarter of the U.S. car market. So to keep selling cars, manufacturers must find ways to get electric cars into the market.

Meanwhile, some interesting competitors are coming into the EV space. Tesla has been there for a while and continues to produce spectacularly engineered (but not profitable) EVs. And Smart, now a subsidiary of Mercedes-Benz, was founded by the inventor of the Swatch watch. More recently, technology heavyweights have weighed in:

  • Google has been working on the driverless car (which may or may not be electric).
  • The Wall Street Journal reported last week that Apple has secretly created a project dubbed Titan with several hundred employees working toward an Apple-branded EV.
  • The well-known iPhone manufacturer Foxconn recently announced its own intention to partner with Chinese internet investment company Tencent to develop a low-cost electric vehicle in China.

Clearly change is happening. And EVs are of interest to the electric industry not just as new load but also because the battery technology required for vehicles has great potential to provide short-term electricity storage on the grid whether or not the batteries are in a car. When Tesla announced its recent huge battery manufacturing facility in Nevada some speculated that batteries won’t just be used by Tesla for its cars but also by Solar City, a company part owned by Tesla founder Elon Musk. And indeed, Solar City just announced a GridLogic service where the company will build electric microgrids for cities, campuses, and military bases.

Utilities are also trying to get into the game. Pacific Gas and Electric recently filed with the California Public Utilities Commission a proposal to provide rebates to owners of EVs. These rebates would be funded by carbon emission credits created under the California program restricting greenhouse gas emissions.

It is hard to predict where this is all headed. Maybe the future lies in a model like MyEnergiLifestyleTM, which is a collaboration among Ford, Georgia Tech, and various consumer product companies including Whirlpool, Sunpower, Eaton, Infineon, and KB home. The MyEnergiLifestyleTM service integrates solar power, an EV, flexible loads, and an intelligent control system to minimize energy costs while maintaining full customer comfort. If and when such integrated systems become widespread, we may indeed have an energy revolution. And then no matter where oil prices lie, there will be strong incentive to buy an electric vehicle.

About Enerdynamics

Enerdynamics was formed in 1995 to meet the growing demand for timely, dynamic and effective business training in the gas and electric industries. Our comprehensive education programs are focused on teaching you and your employees the business of energy. And because we have a firm grasp of what's happening in our industry on both a national and international scale, we can help you make sense of a world that often makes no sense at all.
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