October 2008

POLICY NEWS

New Apollo Program lands in Michigan

On October 15, Senator Debbie Stabenow and Jerome Ringo, President of the Apollo Alliance, led a roll out event in Detroit for The New Apollo Program, a national economic development plan to accelerate clean energy production and the creation of millions of new green-collar jobs.

Senator Stabenow, who has been working hard to ameliorate Michigan’s situation, concluded her remarks with, ““The New Apollo Program sets out a really good action plan for the next economy, the next moon shot on earth. We need to unleash the greatness of Michigan and the nation to pursue this vision.”  Earlier this year, she championed the $25 billion in retooling loans to the nation’s automakers to support the development of next generation vehicles. She has also helped lead efforts to get $100 million for the green-collar job training program in the 2007 Energy Bill. Most recently, she pushed for investment and production tax credits for wind, solar, and other renewables that were approved as part of the $700 billion Emergency Economic Stabilization Act that passed earlier this month.

The U.S. Department of Labor estimates that the Michigan unemployment rate in August 2008 was 8.9 percent—1.7 percent lower than in August 2008. If the New Apollo Program was adopted by Congress, $19.7 billion would go to Michigan, creating a total of 306,970 direct, indirect, and induced jobs in Michigan over 10 years, according to Apollo Alliance estimates. The135,314 direct, permanent jobs over 10 years, include:

• 38,919 on-site construction jobs,
• 17,006 on-site manufacturing jobs, and
• 3,128 transportation jobs.

Mike Garfield, Executive Director of the Ecology Center, participated in a roundtable discussion about national energy issues with Senator Stabenow, Mr. Ringo, and others.  Mr. Garfield emphasized the need to build a low carbon vehicle and fuel infrastructure that will grow jobs here at home, while also reducing oil dependency and addressing climate emission. "The chant of 'drill, baby, drill' is the way energy policy has been debated in the presidential campaign," he said, "but what the United States really needs is a policy of 'Innovate, Invent, Invest!' "

As the U.S. grapples with a new set of economic and energy realities for the 21st century, Southeast Michigan faces especially tough challenges as it works to rebuild its declining manufacturing-based economy. Thus, organizers of the event also put together a regional panel discussion, “Transitioning Together for a New Economy in Southeast Michigan,” which addressed the regional aspects of planning and implementing a new green economic program.

Read More about the Apollo Alliance.

Big Auto News in Fine Print of $700 Billion Bill

$1B tax credit for plug-ins and fully electric vehicles

The Emergency Economic Stabilization Act passed in early October included a component called the Energy Improvement and Extension Act of 2008 (EIEA), which provides a large number of tax incentives related to renewable energy production and conservation.

Consumers could get a tax credit worth up to $7,500 for purchasing a "new qualified plug-in hybrid electric drive motor vehicle" (PHEV). Qualifying vehicles must have a battery pack with at least 4 kWh of capacity - a provision that precludes the inclusion of the currently available Toyota PHEVs, as well as, potentially, other all-electric range plug-ins. However, 2009 Tesla Roadster - and the Chevy Volt or Chrysler vehicles planned for production in 2010 - would qualify. Total funding for the credits, which expire in 2014, is $1 billion. The base amount for the credit is $2,500, with $417 for each kilowatt-hour of battery pack capacity in excess of 4 kilowatt-hours for light-duty vehicles. Thus, the Volt - with its 16 kilo-watt hour battery pack - qualify for the full $7,500 once it is released.

Read More :

• Big 3 scores in lobbying for bailout
• Energy Improvement and Extension Act of 2008
  
  

GM Announces Volt/Cruze Engine Production in Flint

Automaker invests $370 Million for new small engine manufacturing

On September 25, General Motors announced that the company will build engines for the new Chevrolet Volt plug-in hybrid vehicle at a new plant in Flint, Michigan with an investment of $370 million. GM said the investment includes a 552,000-square-foot plant, machinery, equipment and tooling to support production of the new engines with construction expected to finish in 2010.

"GM is here to stay and today we celebrate the latest evidence," Wagoner said to a crowd in Flint that included Gov. Jennifer Granholm, local officials, GM executives and workers from UAW Local 599.

"We are proud that General Motors has chosen Michigan as the best place to develop and produce the revolutionary Chevy Volt and other next-generation vehicles and components," Governor Jennifer M. Granholm said. "Our competitive business climate, outstanding workforce and aggressive strategy to diversify our economy put us in a strong position to win this project and be the state that helps GM produce the cars and trucks that will help end our nation's dependence on foreign oil."

The investment is expected to retain about 300 hourly jobs. GM currently employs about 6,000 at five facilities in Flint, down from about 60,000 during a time when the city was the hub of GM manufacturing.If the Volt is successful, it could mean even more jobs as suppliers may also move to the region.

In addition to the $349 million plant, GM said it will spend $21 million for vendor tooling to support the operations. In return, GM is receiving millions in state and local tax incentives to build the Volt, which will help ensure Flint will play a key role in the GM's future. Flint is providing a number of tax breaks, including a 100 percent abatement of personal property taxes through 2033. The Volt will be assembled in GM's Detroit/Hamtramck plant and ancillary work will stretch from Bay City to Pontiac and Warren.

The automaker plans to make two engines at the plant: a 1.4-liter turbo for the Chevrolet Cruze and a 1.4-liter naturally aspirated engine for the Chevrolet Volt extended-range electric vehicle (E-REV). According to Tom Stephens, GM Executive Vice President of Global Powertrain and Global Quality, "The new 1.4L turbo for the Chevrolet Cruze highlights GM's global commitment to offering engines that provide outstanding fuel efficiency without compromising vehicle performance. The new 1.4L turbocharged engine has the power of a larger engine, but retains the efficiency of a small-displacement four-cylinder. And with this engine, we expect the Cruze to be a fuel economy leader in its segment when it's introduced in early 2010."

Read More:

• Detroit News: GM's new Flint engine plant called area catalyst
• GM Media Online
• Learn more about 1.4L Turbocharged engine
  

Electric Vehicle Update: Chrysler Promises EV by 2010

Chrysler LLC announced last month that the company will bring an electric vehicle to market by 2010 and would consider building electric versions of all of its models in the future. Chrysler unveiled three electric examples from its lineup: an electric Chrysler Town and Country minivan with a range-extending gas engine, a four-door Jeep Wrangler with a range extender and a purely electric Dodge two-seat sports car.

"We have a social responsibility to our consumers to deliver environmentally friendly, fuel-efficient, advanced electric vehicles, and our intention is to meet that responsibility quickly and more broadly than any other automobile manufacturer," said Bob Nardelli, Chrysler LLC Chairman and CEO.

The goal is for Chrysler's EVs to convert existing models, rather than creating a new platform, utilizing three primary components: an electric motor to drive the wheels, an advanced lithium-ion battery system to power the electric-drive motor and a controller that manages energy flow. The electric-drive system is being developed for front-wheel-drive, rear-wheel-drive, and body-on-frame four-wheel-drive vehicle applications.

"This technology provides customers with a vehicle that has zero tailpipe emissions and a 150- to 200-mile driving range - far exceeding most American' daily commutes, as nearly 80 percent of Americans drive less than 40 miles per day, or 14,000 miles per year," said Frank Klegon, Executive Vice President of Product Development, Chrysler LLC. "Electric Vehicles provide the opportunity to fulfill social responsibility, reduce dependency on foreign oil, and eliminate monthly gasoline bills, while delivering performance and utility that our customers desire."

By combining the electric-drive components of the EV with a small gasoline engine and integrated electric generator to produce additional energy to power the electric-drive system when needed, Chrysler engineers expect to combine the positive attributes of an EV with the driving range equivalent to today’s gasoline-powered vehicles without compromising performance.

Batteries are the number one issue that all automakers are facing with EVs, so Chrysler and General Electric are jointly pursuing a project with the United States Department of Energy to explore advanced energy-storage technology.  Chrysler and GE will develop and evaluate dual-battery solutions based on GE’s unique technology.

Read More :

• Chrysler promises electric car by 2010
• Chrysler Media