Chinese plugs-ins: What about the coal?

Are coal-powered EVs right for China?

There is a big move afoot in China to quickly move it's developing auto industry from today's petroleum-guzzling technologies to battery powered technologies. Yet, not everyone in China agrees that's a good idea.

Because China derives 83 percent of it's electricity from coal, Huang Xiangdong, vice president of Guangzhou Automobile Group Corp., a major Chinese carmaker that has ventures with Honda Motor Co. and other global players, according to the DetroitNews, believes the move to plug-ins is premature.

Because of this reliance upon coal, according to Xiangdong, "battery electric vehicles and plug-in hybrids do not save more energy than conventional cars on a well-to-wheel analysis," said Huang. "We think in China it's not the right time to promote pure electric vehicles."

75 percent of Chinese want to buy a hybrid

Citroen's Chinese hybrid

Yesterday, I flipped on CNBC and caught the end of Jim Cramer commenting on recent Chinese energy moves, during which Cramer roughly remarked that China doesn't care about next quarter's profits. Communists don't think in quarters, he said, instead they think multi-year. Likewise, Cramer claimed that China is making moves based on 2020 supply projections.

Can America compete with this?

Just the other day 13 Chinese lithium battery related companies bought out Australian-based Galaxy Resources Limited's lithium carbonate product for the next five years. Like the Japanese and Koreans, the Chinese are also making huge lithium moves, including mining their own lithium and rare metals.

Likewise, a few days ago Citroen announced the launch of the Citroen Metropolis Concept, a hybrid designed in China for the Chinese market, Citroen's largest market outside of Europe. Similarly, GM recently pushed ahead the launch of the Chevy Volt in China, where that automaker currently maintains a next gen powertrain and battery lab.

More important, already the Chinese realize oil-powered Buicks are not their future. Recently, a couple of new consumer studies found that 3 of 4 Chinese auto consumers are ready to buy a "new energy" vehicle, with most expressing interest in gasoline hybrid cars. Of course, like most American consumers, the purchase is dependent upon cost. In China, consumers are willing to pay 11 - 15 percent more for a hybrid compared to a conventional vehicle.

This potential pushed Warren Buffett to buy a large share of Chinese battery and car producer BYD, a company Buffett believes will quickly become the world's largest automaker, with much of its success built upon battery-powered hybrids and plug-in vehicles. Most important, that success could be largely independent of both US and European auto markets if nationalism were to overtake the Chinese market.

Certainly, none of this guarantees Chinese success, but I wouldn't bet against this waking giant.

Chinese hybrids a big threat to America?

A mini minivan: As big as a Chinese hybrid gets?

A blogger from China sent me his list of top ten Chinese EVs and hybrid vehicles, and the size of these vehicles really caught my attention. Most are very small, unlike most American hybrids - most of which are SUVs.

Thus far, not one US automaker has yet taken on the Toyota Prius, or even the Honda Insight, and doing so might still be several years away. In fact, the Chinese might be just as close as the Big 3 to a quality Prius-contender.

Soon, I have no doubt that Chinese automakers will be rolling out hundreds of thousands of hybrid cars for China, but refining these vehicles for the American market will take more time. Nonetheless, China seems quite primed to quickly enter the US market. And, since CAFE will require small, efficient, but expensive vehicles, China's cheap manufacturing capabilities might be the key to success, as well as another major threat to US automaker viability.

Can green vehicles really save the Big 3?

The Chinese auto has only just emerged

As Congress and the Obama auto task force contemplate many tens of billions - perhaps even much more - in aid to the US auto industry, is the US auto industry already a dead industry walking?

Kudos to President Obama for playing hardball - even if it is just for show - with the UAW, bondholders and corporate boards. Still, today these concessions are being forced in an effort to compete with Japan and Korea.

Tomorrow, even mighty Toyota might not be able to compete with Chinese automakers, and smart people like Warren Buffett are already making that bet.

Today, many claim that hybrid and electric vehicles are the key to the Big 3's future - vehicles with little profit potential for Big 3 automakers in the next few decades. Yet, Chinese automakers are quickly rushing to fill this segment with their own products. Moreover, China has far better access to lithium than does the US, hordes of engineers and an endless supply of cheap labor.

Can hybrid cars really save the Big 3? Can anything?

Chinese automakers going hybrid crazy

Another Chinese-made hybrid

At least four different Chinese automakers have now developed their own proprietary hybrid technology for various hybrid vehicles.

The latest is Chang'an Automotive Group, a partner of Ford and Suzuki, which will produce the Jiexun HEV that is supposed to achieve a 20 percent improvement in fuel economy over a conventional Jiexun according to InsideLine.

More important, it will cost far less than Chinese-made Toyota Prius hybrids - at least in China.

A couple more Chinese hybrids in the works

Hybrid vehicle plans from Dongfeng and FAW

Two Chinese automakers have announced plans for a few new hybrid cars. The Dongfen EQ7200HEV hybrid is planned for 2009 and is expected to cost around $30,000. Additionally, FAW is planning a hybrid version of the Besturn, pictured, also for around $30,000. (more)

Chinese hybrid vehicles coming to America soon?

China is the future of the auto market and Chinese automakers are quickly developing hybrids

At the Shanghai Auto Show this week, China is largely attempting to demonstrate that China is the future of the world's automotive sector. However, China isn't just going to be a consumer - a spectator. Instead, China wants to be a major automobile manufacturer. Even more alarming, Chinese automakers aren't just pursuing cheap automobiles, they are pursuing next generation technologies, such as hybrid vehicles.

For example, the Shanghai Automotive Industry Corporation (SAIC)will display the latest prototype of the Roewe 750 gas-electric hybrid vehicle that the company plans to begin selling in 2008. In addition, Chery will display a hybrid version of the Chery A5 sedan at the Shanghai show as well. Finally, Chang'an will show a hybrid version of its multipurpose Jiexun, which the company plans to begin selling next year for $12,000 - $19,000.

As the Insideline noted, "It won't be long before Chinese hybrids are running on American highways."

Isn't it kind of embarrassing that more American-made hybrids are not on the roads of the U.S.?

Chinese slow to adapt to hybrids

For a country where most people ride bikes and don't own an automobile, its no surprise that the $40,000 Toyota Prius (cost in China) is a slow mover in China. While the government of China has been trying to get some control over pollution and global warming, it is not yet providing many incentives for consumers to help. Let's not forget we're talking about a country that is building a coal powered energy plant every 3 days. Eventually, however, China will have to take the threat posed by vehicle emissions to their country seriously.

For more on China and hybrid cars, check out Toyota Prius sales lag in China.

First Chinese produced hybrid vehicle hits autoshow

China's Chery Automobile has announced its plan to present the first Chinese produced hybrid vehicle at the Auto China 2006 Show in Beijing next week. Another Chinese automaker, Geely Automobile, has also announced plans for its first hybrid model.

(Source: Jalopnik)