Ford gets first DoE loan, Nissan and Tesla expected winners
by Sam Abuelsamid on Jun 22nd 2009 at 7:23PM 
Ford Focus EV Mule - Click above for high-res gallery
The U.S. Department of Energy will finally announce the first recipient of low interest loans under the Advanced Technology Vehicle Manufacturing Incentive Program. The first winner is Ford, and analysts expect the DoE to announce Nissan and Tesla Motors, as well. Ford applied for up to $11 billion in loans, but the amount it will get has not been disclosed and will likely only be a small fraction of that in this first round. The Dearborn-based automaker will use the money to fund its electric vehicle program that will launch a battery-powered version of the Transit Connect in 2010 followed by a C-segment car in 2011.
Nissan wants to add production of its upcoming electric car and lithium ion batteries at its assembly complex in Smyrna, Tennessee. Tesla, however, would be the big winner this round, as the money it may receive will allow the fledgeling EV maker to proceed with completing development and production of the Model S. Recent investment in the company by Daimler was probably a big help in getting the loan approved, since companies had to demonstrate viability. And since the ATVM program favors re-tooling of older existing plants, Tesla will probably look at acquiring a closed factory from another company. Recent rumors had the company possibly getting a former McDonnell-Douglas factory in Long Beach, although there are plenty of other properties available.
The current Chapter 11 bankruptcy proceedings at General Motors and Chrysler made those companies ineligible in the current round. It's not known if any announcements will be made about loans for battery makers like A123 or EnerDel.
Gallery: ABG Quick Drive: Ford Focus EV mule
Photos Copyright ©2009 Sam Abuelsamid / Weblogs, Inc.
[Source: Detroit Free Press]
Reader Comments (Page 1 of 2)
Serge 7:41PM (6/22/2009)
Yeah! Great news!!!
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bob 3:16PM (6/23/2009)
For the price of a $100,000 Tesla, you could:
1) Buy a Prius - for about $20,000, with current rebates
2) Convert it to burn hydrogen, which might cost is about $60,000 by Quantum Tech, maybe even cheaper now.
3) Use the remaining money to build a small solar powered electrolyzer at home that would allow you to refuel once or twice a week, or buy into a hydrogen co-op. For some of the actual supplies, you can buy right now, Check out: http://www.fuelcellstore.com/
Greg Blencoe 9:05PM (6/22/2009)
Hydrogen fuel cell vehicles are the only technology that can be scaled up globally and meet customer needs for driving range, fueling time, cost when mass produced, and trunk and passenger space. While the hydrogen to power the initial hydrogen fuel cell vehicles will come from natural gas, this is only a bridge to hydrogen from wind power and then hydrogen from solar power.
People should read about what Toyota and Honda are saying about plug-in battery cars.
For lots of good Toyota and Honda quotes, I highly recommend reading the following article which is titled the "Top 25 things I wish President Barack Obama knew about hydrogen fuel cell cars and plug-in battery cars":
http://hydrogendiscoveries.wordpress.com/2009/03/25/top-25-things-i-wish-president-barack-obama-knew-about-hydrogen-fuel-cell-cars-and-plug-in-battery-cars/
Within two years from now (i.e. once all the facts get around), the general public will have a very negative view of plug-in battery vehicles.
The hydrogen car revolution will soon begin!!!
Greg Blencoe
Chief Executive Officer
Hydrogen Discoveries, Inc.
"Hydrogen Car Revolution" blog
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Sheesh 9:17PM (6/22/2009)
blah, blah, yawn yawn.. same thing in the comments of every article.
Ignatius 9:22PM (6/22/2009)
I'd have to say "sheesh" is right. I'd love to drive around with a tank full of explosive, flammable gas UNDER PRESSURE underneath my car. That seems safe.
And before someone says anything about lithium-ion batteries... the new lithium-ion polymer batteries have been tested from puncture/heat and they merely release smoke. I don't doubt that the battery packs on most cars will be stronger than anything else on the vehicle.
Derk McRockgroin 10:25PM (6/22/2009)
We get it, Greg, we know you're desperate and need support, but we're too smart to be swayed by the Hydrogen hype, and your groundless advertisements are getting annoying.
Please go away.
Chris M 1:06AM (6/23/2009)
No, H2 fuel cell vehicles are NOT the only technology " that can be scaled up globally and meet customer needs for driving range, fueling time, cost when mass produced, and trunk and passenger space".
Obviously, Blencoe is still trying to pretend that the Tesla Model S hasn't been revealed. After all, the all-electric Model S has up to 300 mile per charge driving range, 45 minute charge (from 48 volt quick charge outlets) or battery swap in under 2 minutes, room for 7, luggage space front and back, and a price comparable to Mercedes and Lexus. In all those aspects, the electric Model S matches or exceeds any H2FC prototype vehicle.
Makes me wonder if Blencoe even recognizes that Tesla Motors exists!
The real irony is that H2 fuel cell vehicles DON't meet customer needs as far as cost is concerned - few could afford the half-million dollar price tag. While the DOE pretends that a $400,000 fuel cell will somehow drop well below the cost of materials to a mere $7,500 through the magic of "mass production", reality says otherwise. Fact is, "mass production" won't begin until the cost becomes reasonable, and that won't happen until several breakthroughs occur in both H2 fuel cells and H2 storage. They can't bring cost down with mass production, because they can't afford to begin mass production - a 2nd "chicken and egg" problem for H2.
Meanwhile, high performance EVs, while expensive, are affordable and are being purchased by real customers. Tesla Motors recently announced that with improvements in production, they've reduced production costs, thus increasing their profit margin, and, eventually, lower prices. With this loan guarantee, they can speed production of the Model S, and work at further price reductions.
H2 FC cars are being rendered obsolete before they have arrived.
The future is electric.
Tim W. 2:03AM (6/23/2009)
Chris: To be fair, the "45 minute quick charge" (I'm pretty sure you meant 480 volts) at who knows how many amps - which is to 80%, not full (due to the laws of physics that require slowing the charge rate near the end of the cycle to avoid damage) - is only for the lowest range model of 160 miles, not the 230 or 300 mile options.
I'm pretty sure I remember hearing that the 230 mile range pack would eat into available cargo space as well (was it the rest of the front or where the jump seats would go? [citation needed]) while the 300 mile pack would use the same space as the 230 mile pack but have a more advanced cell chemistry. In any case, all of those features might be available available, but not all at once, and it's a bit disingenuous at best to place them all in the same breath without qualifiers.
Not that I don't agree that H2 is a dead end; I am in favor of a fully-electric future of transportation powered by battery and/or capacitor technologies. I just think that capabilities should be fairly and accurately portrayed, without marketing spin. Let pure electric technology stand on the considerable merits it has over H2 without hype or exaggeration.
It's nice to see these contracts going to BEV projects that can push already available technology forward faster, rather than favoring R&D on projects that have been "just 5-10 years away from being technically feasible, if not affordable" for the last 30+ years.
BlackbirdHighway 5:52AM (6/23/2009)
"read about what Toyota and Honda are saying about plug-in battery cars."
Yeah, Toyota just announced they are setting up a network of charging stations for - gasp! - plug-in battery cars!
You should read about what Ford, Daimler, GM, Nissan, Mitsubishi, Chrysler-Fiat, Peugeot-Citroën, and BMW all say about plug-in electric cars (hint, they are all developing ones).
But hey, when they start actually selling these hydrogen fuel cell vehicles then the marketplace can choose which is better. What are they waiting for? Are the hydrogen guys giving BEVs a head start just to be sporting about it?
Tim 9:48AM (6/23/2009)
Boy am I glad that there is not some "special interest" hydrogen lobby helping the oil companies steal our tax money while they pay off some moron politicians (not statesmen) to tip the "unFree" market to favor one technology over another. (like some politician giving taxpayer money to a special interest like Mr. Blenco would be better for the consumer than free market competition, humph).
Oh, wait...
If only there was a supreme law that FORBID Congress from over riding the free market by giving taxpayer money to one private company or technology over another. Something like the 9th & 10 Amendments to the Constitution...
Oh, wait...
If only we had statesmen who volunteer to serve unpaid with the integrity to honor their oath of office instead of a rich, well paid, well connected political oligarchy who will do and say ANYTHING to keep a grip on their power over “We, the People…”
Oh, wait… CRAP!
If only this political oligarchy was NOT in charge of what the children learn in “gov’t” school, then maybe instead of indoctrination we’d have REAL education…
If only the “American Dream” didn’t degrade into a “progressive” nightmare…
GoodCheer 9:48AM (6/23/2009)
Perhaps the most telling thing about Greg's post here on AutoBlogGreen is that... he posted here on AutoBlogGreen. Why is it that the CEO of any company finds the best use of his time is blogging on a news site. You don't see the CEOs of any of the numerous companies that are selling or developing EVs posting here.
Chris H. 10:01PM (6/22/2009)
Good news for Tesla, and for anyone who wants a Model S.
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jake 10:39PM (6/22/2009)
This is certainly good news as both a Tesla fan and a general BEV fan. Now we can finally get the ball rolling.
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murc 11:49PM (6/22/2009)
I dont think so greg.
The electric car market is only getting bigger.
and the hydrogen market.....isn't.
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Nick P. 1:06AM (6/23/2009)
Wow! Great news for Tesla. The Model S is my only realistic chance of owning a practical high quality electric sedan (sorry Coda....). A lot of people are wishing them well for this next step.
I actually believe that Toyota and Honda won't really want to offer plug-in EVs until they are forced by the competition (Mitsubishi, Nissan, Renault, Smart and Cooper). Some foolish executives, like Greg above, have bet on hydrogen and would rather die than "loose face". The hell with common sense.
Greg, you're like the chief replicant at the end of Blade Runners: "It's time to die..."
- Nick -
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BlackbirdHighway 6:05AM (6/23/2009)
Nick, that wasn't very nice! Blencoe is just trying to get rich on hydrogen. Can't blame a guy for trying!
Unfortunately, electrics were ready ten years ago, and even though the establishment was able to delay them until now, hydrogen still isn't ready.
That's not my opinion, the fact is that the cars are not being offered for sale.
If early adopters have a choice between a high-priced BEV and a non-existent HFCV, you can easily guess which one will win.
I think Blencoe knows which one too, and he doesn't like the answer. Since he can't speed up HFCVs, he will attempt to slow down BEVs. (Note to Blencoe, you can't do that either.)
David Martin 8:26AM (6/23/2009)
Hydrogen fuel cells need new technology at the breakthrough level rather than the incremental improvements needed for EV's.
What might well happen in the US though is the introduction of natural gas powered cars, as the large distances driven there means that an EV is less practical than in Europe and Japan at reasonable cost, and unlike those countries the US seems to have a lot of natural gas to smooth the transition to electric.
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polo 8:27AM (6/23/2009)
Greg: "The hydrogen car revolution will soon begin!!!"
Ever thought about following Riversimple's model and offering your $600,000 hydrogen car on a 120 year lease? just make it will-able.
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Boxman 10:26AM (6/23/2009)
David Martin - that's a good point about natural gas, and something the hydrogen lobby doesn't acknowledge. Given that you must burn huge quantities of natural gas (thus releasing CO2) to create hydrogen, wouldn't it make more sense to simply run cars directly off that same natural gas instead?
Consider how much natural gas is burned to create the hydrogen which drives your car for 100 miles. With a natural-gas powered vehicle, you could drive the same distance while burning only about 20% as much of that same natural gas.
Also, you can buy 50 natural gas powered cars for the price of one HFC vehicle.
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Bill 10:48AM (6/23/2009)
There are also fuel cells that can run directly on natural gas.
The fuel cell industry would be better served by focusing on adopting one of the above to vehicle use rather than throwing money away on vehicle fuel cells that require hydrogen.