Public Square: Is the gas car a dinosaur?

The Times-Dispatch held its 32nd Public Square at the newspaper's Hanover Production Plant.

The conversation -- Is the Gas Car a Dinosaur? -- began with a panel discussion with four energy and automotive experts.

The wide-ranging exchange was followed by questions and comments from the audience of about 100.

Publisher Tom Silvestri served as moderator.

VW to invest 51.6bn euros in Electric and Hybrid Vehicles

Volkswagen says it plans to invest 51.6 billion euros ($A71.2 billion) in the next four years to develop new models and attain its objective of becoming the world's top car maker by 2018.

With another 10.6 billion euros ($A14.63 billion) to be invested by its joint ventures in China, the German car maker said it aims to "expand and modernise its entire product line across all of its brands".

The investments, to come from the company's own funds, will focus on hybrids and electric vehicles, where it lags behind Japan's Toyota, which it hopes to unseat as the top global car maker within seven years.

Last year Volkswagen said it planned to invest 25.8 billion euros ($A35.6 billion) between 2010 and 2012.

Volkswagen steered around being significantly damaged by the global crisis, thanks in large part to continued boom the Chinese car market, and was sitting on a cash pile of 19.6 billion euros ($A27.05 billion) at the end of September.

The company, which owns nine brands, is in the process of absorbing a tenth, luxury sports car maker Porsche.

GM raises $20 billion in IPO

General Motors Co. raised more than $20 billion selling common and preferred stock in an initial public offering that reduced the U.S. government to a minority shareholder.

GM’s owners, including the U.S. Treasury, sold at least $15.8 billion of common shares at $33 each, making it the second-largest U.S. IPO on record after Visa Inc.’s $19.7 billion sale in March 2008, a statement showed. An overallotment option and a sale of preferred shares may boost the total raised to $23.1 billion, more than the $22.1 billion sold by Beijing- based Agricultural Bank of China Ltd. in the largest IPO of common stock in history.

The offering from GM came 16 months after it emerged from bankruptcy and brings Chief Executive Officer Dan Akerson closer to his goal of returning the $49.5 billion the automaker received in a taxpayer bailout last year. The Treasury, which is taking a loss on its portion of the sale, will break even only if the shares climb more than 60 percent, Bloomberg data shows.

“It’s pretty hard to be anything but positive,” said Uri Landesman, who helps oversee about $500 million as president of New York-based hedge fund Platinum Partners LLP. The IPO “shows you that there are people who are very enthusiastic. People think that this is a viable company,” he said.

‘Very Patient’

GM’s common shares will be listed on the New York Stock Exchange under the ticker GM tomorrow, the company statement said. It will trade on the Toronto Stock Exchange under the ticker GMM.

The Treasury needs to sell all of its GM shares at an average price of $43.67 to break even on its investment, data compiled by Bloomberg show.

“We will only get our money back if we are very patient and if GM performs very well,” said Joe Phillippi, principal of consulting firm AutoTrends Inc. in Short Hills, New Jersey. “GM will really have to hit the ball out of the park in the next couple of years.”

The Treasury offered about 358.5 million shares in the IPO, about 95 million more shares than initially planned, and the United Auto Workers’ retiree health-care trust sold 18 million more, according to GM’s regulatory filings. The overallotment option increased by an additional 14.3 million shares offered by Treasury and 2.7 million by the UAW trust.

Treasury’s Stake

The IPO would lower Treasury’s stake to 37 percent, or 33 percent with the overallotment option, from 61 percent, the filings showed. The UAW trust’s holdings would drop to 14 percent, or 13 percent with the option, from 20 percent.

GM’s IPO “is an important step in the turnaround of the company and for our work to recover taxpayer dollars and exit this investment as soon as practicable,” Treasury Secretary Timothy F. Geithner said in a statement. “It is now widely recognized that the taxpayers’ investment not only helped save jobs during the worst economic crisis in a generation but also gave the auto industry a solid foundation on which to build.”

While the Treasury increased the number of shares it had originally planned to sell, Canada and Ontario left their portion of the offering unchanged. Canada will recover more of its investment in the bailout than if it sold more shares in the IPO if GM shares rise. GM boosted its offering price to as much as $33 on Nov. 16, from $26 to $29.

Relative Value

At $33 a share, GM is valued at 7.8 times this year’s earnings, based on its net income in the first nine months of 2010. Dearborn, Michigan-based Ford Motor Co. trades at 8.1 times analysts’ estimates for 2010 profit, the data show. Ford has been the world’s most profitable automaker this year through September.

GM, which lost $82 billion from 2005 to 2008, was valued at an average of 10.3 times profit from 2000 through 2004, monthly data compiled by Bloomberg show. Ford traded at an average of 13 times earnings in the same period.

GM reported third-quarter net income of $2.16 billion last week, bringing its earnings this year to $4.77 billion. While GM will have positive earnings before interest and taxes in the fourth quarter, they will be “significantly lower” than the first three quarters of the year, Akerson said on a Nov. 10 conference call.

“The way they performed in the third quarter, GM is on a trajectory to reaching a breakeven point for taxpayers,” Anant Sundaram, a professor at Dartmouth College’s Tuck School of Business who studies corporate valuations, said in a telephone interview. “My sense is $36 at the end of the first day is not at all unreasonable” for GM’s shares, he said.

S&P 500 Index

The automaker sold shares after the Standard & Poor’s 500 Index rose to a two-year high this month on speculation that the U.S. economy won’t slip back into a recession. The benchmark gauge for U.S. equities fell for the fourth straight day yesterday, the longest losing streak since August, before closing little changed today.

The Kuwait Investment Authority may buy a stake in GM of 1 percent or less, one person familiar with the deal said yesterday. Shanghai-based SAIC Motor Corp., GM’s partner in China, probably will be among the buyers, three people familiar with the plans said last week.

Morgan Stanley, JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. led the IPO that includes 35 underwriters, according to a GM filing with the Securities and Exchange Commission. Barclays Plc, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc. and Royal Bank of Canada were also listed in the prospectus.

‘So Much Money’

General Motors Corp. filed for Chapter 11 bankruptcy protection on June 1, 2009, after the failure of New York-based Lehman Brothers Holdings Inc. in September 2008 froze credit markets and helped cause the longest recession since the Great Depression.

“Institutional investors are so positive about GM because the industry is primed to make so much money as it recovers,” said Alan Baum, an analyst for Baum & Associates, an industry consultant in West Bloomfield, Michigan. “GM in the past wasn’t well positioned for that. Costs are now down and their products are being well-received.”

--With assistance from Jeffrey McCracken, Cecile Vannucci and Michael Tsang in New York, Jeff Green in Southfield, Michigan, Rebecca Christie in Washington and Greg Quinn in Ottawa. Editors: Daniel Hauck, Kevin Orland.

Williams F1 Team opts for battery KERS in 2011

The Williams Formula One team has made the switch from the flywheel unit it has been developing for the past two years because of the packaging opportunities battery power offers in the wake of the refuelling ban at the end of last season.

The team had previously committed to running KERS in 2011 back in September, but technical director Sam Michael said at the time that both battery and flywheel derivatives remained an option.

Williams co-owner Patrick Head has confirmed that the team has opted for the battery version in 2011, because it is easier to package now F1 cars must carry larger fuel cells than they did two years ago.

"I think it's fairly well known that we're going to be running a battery system," said Head. "Had we run KERS in 2009, it would have been a flywheel-based system.

"The flywheel, by the very nature of what it is, has a cylinder of a certain diameter.

"The weight is actually lighter than a battery for equivalent power and energy storage. But the batteries, because they're made up of lots of little cells, we can make it large and flat, we can make it small and tall. We can put it into any shape.

"Once refuelling was banned in Formula 1, it made it quite difficult to fit a flywheel into a Formula 1 car. Albeit we've got a number of programmes going, including the successful Porsche GT3R hybrid one, where the flywheel is happily fitted into sportscars, and other types of car."

Head has not ruled out Williams introducing its flywheel-based system in the future however and suggested that it might be more suited to the next raft of technical regulation changes expected for F1 in 2013.

"From what we understand, there's likely to be a much higher-power KERS system; 120 kilowatts we hear, a much higher energy storage, a much higher stored energy level - we've heard figures from 2.3 megajoules to 4 megajoules allowance," explained Head. "Whereas at the moment it's 400 kilojoules, so possibly up to a factor of 10 the amount of energy you can store.

"It would be a very different thing. You've still got to harvest that energy, so..."

"None of these figures is fixed yet. If the engine is a four-cylinder turbo engine it may well be that there's a possibility of installing the flywheel. If the design of the cars allows us to install the flywheel, we'll look at it again as a possibility for Formula 1."

Nissan Debuts Ellure Concept Hybrid @ LA Auto Show

If you’ve been wondering what the replacement for the Nissan Altima is going to look like, we think we might have something that will interest you. At the 2010 Los Angeles Auto Show today, Nissan unveiled its Ellure Concept, a front-wheel drive sedan that hints at future models. It’s probably safe to assume that Nissan wouldn’t have built the Ellure unless they were going to get some kind of production vehicle out of it and the Ellure fits the Altima mold.

The press release for Nissan‘s Ellure concept invokes the name of the sacred Datsun 510, but while the 510 was a diminutive, boxy sports sedan, the Ellure is swoopy and musculer, like a futuristic Maxima.

With a front end supposedly inspired by the formal coat worn by Samurai, Nissan asserts that the Ellure makes no attempt to hide its “sedan-ness”, mentioning that they expect this body style to be the core of their future product lineup.

“When all is said and done, the sedan will always be core to the Nissan product portfolio. Our goal is to rejuvenate the sedan’s attractiveness to buyers who might have migrated to other segments, or who are coming reluctantly into the category,” said Nissan Senior VP Shiro Nakamura. “By respecting its strengths, while recognizing that emotion is as critical as function, Ellure could well be the wave, or more correctly the ‘shock wave,’ of future sedans.”

Naturally, the Ellure is a hybrid that uses a supercharged 2.5L four-cylinder, a CVT transmission and a 25kw electric motor.

Kia unveils Optima Hybrid @ LA Auto Show

Kia Motors Corporation premiered the hybrid version of its new Optima sedan at the Los Angeles Auto Show. Created primarily with the US market in mind, the Kia-developed powertrain delivers an estimated combined cycle fuel economy is 38 mpg US (6.2 L/100km) (city 36.0 mpg, highway 40.0 mpg).

Arriving in Kia dealer showrooms early next year, the 2011 Optima Hybrid is the brand’s first hybrid for North America and uses a full parallel hybrid system to deliver a 40.7% mpg improvement compared with a regular Optima. Acceleration to 62 mph (100 km/h) takes 9.2 seconds, and the top speed is 121 mph (195 km/h).

The 2.4-liter Theta II gasoline engine is mated to a small electric motor and drives the front wheels via a six-speed automatic transmission without the traditional torque converter. A special clutch is fitted between the engine and motor, enabling the gasoline engine to be de-coupled from the powertrain so that Optima can be operated in zero-emissions, full-electric drive mode from standstill up to 62 mph.

The system’s configuration does not require a high-capacity electric motor and generator, saving weight and cost.

When setting off, the Optima Hybrid operates in Electric Mode. As vehicle speed rises, the Hybrid Starter motor/Generator (HSG) starts the gasoline engine and the clutch is closed, allowing the engine to take over the task of propelling the car. The electric motor switches into hybrid operation and serves as both a secondary engine (during full acceleration and hill-climbing) and a generator to recharge the battery pack as necessary. Whenever the car comes a stop for more than a few seconds, the gasoline engine automatically shuts off to completely eliminate emissions.

When braking, the electric motor converts kinetic energy into electricity for storage in the battery pack. The 8.5 kW HSG also functions as a generator to re-charge the battery pack if the state of charge is low and when the car is stationary. Throughout the entire driving experience, in everyday motoring, under all conditions, the entire hybrid operation is automatic and seamless.

The Optima Hybrid’s 30 kW Interior Permanent Magnet (IPM) synchronous electric motor produces 40.7 ps (30 kW) and 205 N·m (151 lb-ft) of torque from 0-to-1,400 rpm in electric mode. The combined (electric motor plus gasoline engine) hybrid powertrain has an output of 209 ps (154 kW) and 265 N·m (195 lb-ft).

Described by Kia engineers as a Transmission-Mounted-Electric-Drive (TMED), the 30 kW IPM electric motor sits within the car’s extended transmission casing (between the gasoline engine and the automatic gearbox) and is an oil-cooled system.

Kia’s Optima Hybrid employs a lithium polymer battery array developed in partnership with LG Chem. The power and energy density of this battery enabled Kia engineers to create a lighter, more compact power pack with a 34 kW output and weighing just 43.6 kg (95.9 lbs) designed to minimize intrusion of the Optima’s trunk space.

The complete hybrid system is controlled by the Optima's Hybrid Control Unit (HCU) which acts as the car’s mastermind and integrates the smooth operation of the engine’s ECU, transmission’s TCU, battery management system (BMS), low voltage converter (LDC). This brain also gives the Optima a Fail-Safe back-up capability and a Limp-home mode.

Optimizing the Theta II gasoline engine. Taking advantage of the instant and continuously available torque from the electric motor, Kia modified its popular 2.4-liter Theta II engine to operate on an Atkinson cycle, raising the compression ratio by 20% to maximize its efficiency and achieving a 10% fuel saving over a regular Theta engine. This cycle generates a little less torque, but the electric motor compensates for any loss and consequently, the Optima Hybrid’s overall power and torque outputs are greater than the regular model.

For the Optima Hybrid, Kia has modified the six-speed automatic transmission found on the conventional Optima for hybrid application. The traditional torque converter is replaced with an electric motor and a high-efficiency oil pump. This new gearbox allows EV mode operation, maximizes regeneration of kinetic energy during braking and also provides a more responsive drive than a CVT system.

To maximize the Optima Hybrid’s performance and minimize its fuel consumption, special attention has been paid to its aerodynamics. The car is lowered by 5 mm and new features include an active air flap in the front grille, smooth underfloor panels, low-drag wheels and low rolling resistance tires. The drag coefficient is lowered to Cd 0.26.

Energy and fuel-saving technologies features in the Optima Hybrid include a regenerative braking system, electric—rather than hydraulic—assisted power steering, and an electric air compressor capable of delivering high air-conditioning performance.

Two independent liquid cooling systems are fitted to the Optima Hybrid powertrain. The standard high-temperature circuit manages engine cooling and passenger compartment heating. The second low-temperature circuit cools the hybrid starter-generator and the power electronics. The trunk-mounted battery pack does not require liquid cooling and its temperature is controlled by a simple ventilation fan beneath the rear parcel shelf.

Mitsubishi Unveils US Version of "i" EV @ LA Auto Show

Building on the company's more than 35 years of involvement in advanced electric vehicle development, Mitsubishi Motors has unveiled its first all-electric production vehicle bound for the North American market.

Based on the very popular gasoline-powered "i" minicar in the Japanese market, this roomy and practical four-door 2012 model serves as the basis for the new 100% battery-powered Mitsubishi "i" for the North American market. The zero tailpipe emission "i" will be the first North American production vehicle to be powered by Mitsubishi innovative Electric Vehicle (MiEV) technology – cutting edge drivetrain engineering that will serve as the basis for future ultra-environmentally-friendly vehicles from the company. Gone are conventional automotive systems including a gasoline engine, transmission and a fuel tank, having been replaced by advanced components including a lithium-ion battery system, electric motor and an efficient battery charging system in the all-new "i". This electric vehicle has already proved itself a viable and reliable form of transportation as Mitsubishi has been selling the car in its home market since the summer of 2009; production has already commenced for the European-spec i-MiEV, with deliveries beginning later this year.

Mitsubishi anticipates an initial roll out of the "i" to its dealership network in the western United States (specifically California, Oregon, Washington and Hawaii) in November 2011, with entry into the northeastern market to follow by March 2012 and nationwide availability by the end of 2012. The vehicle's MSRP is expected to be around $30,000, not including Federal and available state financial incentives.

The new production Mitsubishi "i" bound for the North American market further differentiates itself from its Japanese- and European-spec versions with a retooled, larger body to provide even more interior comfort for four adults, along with new North American-spec bumpers front and rear for enhanced protection in the event of a collision. Other noteworthy safety measures on the North American-spec vehicle include airbags that protect passengers and control deployment force, Active Stability Control (ASC) and a Tire Pressure Monitoring System (TPMS) - all included as standard equipment.

Easier on the Environment

Thanks to its extremely efficient all-electric powertrain, the Mitsubishi "i" produces zero on-road CO2, making it a zero emissions vehicle. What's more, when factoring in the CO2 emissions produced by the power plants that generated the electricity that provides the energy for the "i", this revolutionary Mitsubishi production car only produces about 30% of the CO2 emitted by the 660cc gasoline engine that powers the non-electric-version of the car in its home market. And the reduction in CO2 becomes even more statistically significant considering that the 660cc gasoline engine found in the Japanese market is only about one-third of the displacement of the typical four-cylinder gasoline engine powering cars in the North American market.

Additional energy efficiency can be wrung from the "i" model's electric powertrain thanks to Eco (Economy) and Brake driving modes that supplement the vehicle's standard Drive mode. The Eco mode limits excessive power usage from reaching the motor while the Brake mode increases the resistance of the regenerative braking system (especially when driving downhill) to feed even more energy back into the car's bank of lithium-ion batteries.

Low Cost "Fuel" Source

The operating cost per mile of the electrical-powered Mitsubishi "i" is significantly cheaper than that of a comparable gasoline-powered vehicle. In Japan, the operating cost is only 1/3 that of the 660cc gasoline engine-powered version of the car, and the operating cost can drop even more significantly than that of its internal-combustion sibling by taking advantage of reduced electricity rates by recharging during nighttime or off-peak hours*.

Clever Design = Spacious Accommodations, Outstanding Safety

Thanks to the vehicle's excellent packaging and engineering in relation to its size, this uniquely styled automobile provides an excellent level of safety, ample room for four adults plus handy cargo space.

How can a small car possess such ample interior volume? Mitsubishi engineers have cleverly placed the high-capacity lithium-ion batteries beneath the floor, and the electric motor, inverter and battery charger have been located behind and below the rear passenger area. This setup also has the added benefit of lowering the vehicle's center of gravity. Along with the wheels being placed at the farthest corners of the vehicle, this gives the "i" exceptional stability along with surprisingly agile handling.

Advanced Electric Powertrain

The power system consists of a permanent magnet synchronous electric motor and a high energy density lithium-ion battery pack that consists of 88 cells (22 modules, 4 battery cells per module) for a maximum battery capacity of 16 kWh. The battery modules can be installed either transversely or vertically; this packaging flexibility allows them to be stored underneath the cabin floor. All 88 cells reside within an extremely sturdy stainless steel capsule to provide maximum protection.

The "i" also features a groundbreaking three-way battery charging system that allows the vehicle to be charged using the onboard household charger through either 110V (15A) or 220V (15A) power sources or by a quick-charger system that utilizes a three-phase 220V power supply. The charging times from a very low battery to completely full are approximately 8 hours at 220V and 16 hours at 110V. The three-phase 220V quick-charger can take a low battery all the way up to an 80% battery charge in under a remarkably fast 30 minutes. The three-phase quick-charger makes use of a special outlet that is accessible on the driver's side of the vehicle, while the onboard household charger's outlet is located on the passenger side of the "i".

Strategic Research and Logistical Partners

The Mitsubishi "i" has undergone several years of exhaust testing and evaluation not only internally by the Japanese auto manufacturer but with several other institutions, including seven utility companies in Japan, as well as prototype evaluation programs with major United States utilities Southern California Edison, Pacific Gas and Electric Company (PG&E), Portland General Electric and the Tennessee Valley Authority.

And in an effort to help expand and improve the logistical side of the electric vehicle ownership experience, Mitsubishi has teamed with corporate titans including consumer electronics retailer Best Buy and leading power management company Eaton Corporation. Best Buy, through its 20,000-plus strong employees in its Geek Squad division, has partnered to provide site analysis and work to manage installation of a Level 2 Charging Station it will sell through its stores for Mitsubishi "i" owners to use in their own homes. Designed and manufactured by Eaton - a company that has more than 20 years of experience in developing electrical and hybrid power systems for commercial vehicles - this 220V charging station will cut the time it takes to charge the car's batteries in half when compared to a standard 110V electrical outlet.

*Note: Electricity rates can vary by region, supplier and timing.

Mitsubishi "i" specifications
	(North American Version)
Overall length	144.8-in.
Overall width	62.4-in.
Overall height	63.6-in.
Track: F/R	55.9 / 54.3-in.
Wheelbase	100.4-in.
Number of passengers	4
Vehicle weight	2584 lbs.
Motor output	63 hp
Motor torque	133 lb.-ft
Battery system	330V lithium-ion
Drive mode	Mid-engine, rear-wheel drive