Italian company Pirelli is best known for making high performance tires, but now it is making efforts in emissions technology. The Italian government announced an agreement between the Ministry of Environmental Affairs and the City Council of Beijing, China. Pirelli will supply diesel particulate filter systems (DPF) to be installed on heavy duty vehicles (mainly buses, but also trucks and later snowploughs and tractors). The vehicles are used by the local public transportation company and the filters are able to eliminate 95 percent of particulate emissions. The first filter systems will be installed before the start of the Olympics, and the rest after the summer. Pirelli's technology can be retrofitted to most existing models. Pirelli has been offering the retrofit filter systems for sale in Europe since the beginning of 2008 in Italy, Germany, the Netherlands and Britain. The filters are currently made in Gorj, Romania, and will also be produced in a new plant in Russia.

[Source: The Auto Channel]

There had been some speculation about Beijing's plans to force traffic restrictions in order to reduce the city's pollution for the Summer Olympic Games. At first, traffic restrictions were proposed but they were axed, then proposed again. We also saw some other creative measures to control pollution with limited resources and available time.

Nevertheless, this time it seems that restrictions are for real:

First, from July 20 to September 20, vehicles registered in Beijing with license plates ending in an odd number will only be allowed on the roads every other day. So, on days when odd numbered license plates will be allowed, vehicles with license plates ending in an even number will be banned. Taxis, ambulances, postal delivery, and other public vehicles will be exempt.

Second, Beijing's public workers have been instructed to leave their cars at home and use nothing but mass transit until the Olympic games have ended. According to the European Space Agency, the Chinese capital and neighboring provinces have the world's highest levels of NOx.

[Source: Chinacartimes]

The Chinese government has managed to keep the country's economic growth engine humming along - despite slowdowns in most other countries - by keeping fuel prices low. The government has been subsidizing gasoline to keep the price at $2.60/gallon, an increase of only nine percent since the start of 2007. By the end of the summer that situation may change as the central government is expected to lift those subsidies. The price of refined petroleum in China is about half that of the rest of the world. In 2007 the central Government spent about $30 billion keeping the price of gasoline down an amount that is surely much higher this year as oil has hit $140/barrel. Of course, none of these changes will happen until after everyone has gone home from the Olympics. After all, the Chinese wouldn't want the world to see protesters being arrested and carted off as gas prices double. The increase in fuel prices needs to come even though it will probably slow down the auto industry. The traffic and pollution problems of cities like Beijing and Shanghai can only be helped by such a slow down.

[Source: Seattle Times]

click above image to view more shots of the hybrid Buick Riviera Concept

Here in the United States, hybrids are usually marketed under one of two schemes: green or sporty. Most vehicles, including the flag-bearing Prius, fall under the green banner, with fuel efficiency being the top marketing point. A smaller number of vehicles, mostly all from Lexus, use their hybrid drivetrain as a performance enhancer, and they are often marketed as sporty vehicles. It seems that in China, vehicle marketing from GM will soon hit a mark close to that of Lexus' with their hybrids, as the company will market its Chinese hybrids and fuel efficient models as prestigious vehicles. To go along with the fuel savings of the (sometimes hybrid) vehicle, image in China is extremely important, according to Joseph Liu, General Motors China Group's executive director of vehicle sales, service and merchandising. Therefore, three points will be highlighted from GM in China, the use of water-based paints, the fact that their entire line meets Euro-IV emissions standards and that two of their drivetrains are rated as the most fuel efficient in their class.

[Source: Just-Auto]

To date, hybrids haven't been making much headway in the Chinese market. Big price premiums and relatively cheap gas have dampened demand among consumers there. That may soon change as the Chinese government is apparently considering dropping the sales tax on hybrid vehicles to stimulate sales. Given the choking pollution in cities like Beijing and Shanghai, the government needs to do something, especially considering that Chinese consumers seem to be increasingly migrating toward SUVs and other more powerful vehicles. What they really need to do is lift the cap on fuel prices. That would seriously push Chinese drivers to consider cleaner, more efficient vehicles.

[Source: China Car Times]

Apparently, China hasn't learned from the policies of the United States when it comes to petroleum prices. For decades, the price of gasoline has not reflected its true cost because prices have not factored in the cost of military expenditures required to maintain "friendly" governments in countries that supply large amounts of our oil. As a result Americans have long favored larger, more powerful vehicles - and they could afford them because gasoline was cheap and plentiful. China has gone from being a net exporter of oil to the world's largest consumer since 1994. China now imports half its oil needs and subsidizes the retail price to less than $3/gallon.

As a result Chinese drivers with increasing disposable incomes are opting for bigger, more powerful and thirstier vehicles, just like Americans. SUV sales jumped 38 percent and luxury car sales jumped 30 percent in the first two months of this year, bucking the trend in the U.S. Those segments are outpacing the overall sales increase of 16 percent in the fast growing market. Just as in the U.S., the Chinese government is pushing automakers to build more efficient vehicles but so far consumers aren't buying. It seems that just as in the U.S. and elsewhere only higher fuel prices will prompt drivers to go for more efficient vehicles. The Chinese government is certainly in a better position to determine what fuel prices will be than in other countries and with a market that is still evolving they could make a push for alternatives like battery and fuel cell electric vehicles. Given the pollution that plagues cities like Beijing and the increasing dependence on imported oil, they need to do something.

[Source: New York Times]

The nation with perhaps the worst air pollution problem in the world may soon get some help from Detroit. Just as China was the second country after the U.S. on the world tour of the Chevy Volt concept last year, it will likely be the second place to the see the production Volt. Speaking at the Beijing Motor Show, GM Chairman Rick Wagoner told reporters that after the production Volt launches in the U.S., China will be the next country to get the new extended range EV. Right now the company is totally focused on getting the Volt to market here by the end of 2010. According to Wagoner it's going "right down to the wire" to meet the target. Battery packs are being tested and prototypes will shortly (if not already) be running with the 400lb packs from Continental/A123 Systems and LG Chem/CPI. Although GM will need to make a decision on a production source for the battery pack within the next few months, it may turn out that GM will continue to work with both companies. The supplier that doesn't get a production contract may remain on a development contract to ensure that progress continues to move forward on developing the batteries. A production supplier will need a contract soon in order to make the investment in production facilities in time for launch.

[Source: Reuters]

In the face of rising fuel costs and environmental concerns, GM has realized that China, the world's fastest growing auto market, is in dire need of hybrid vehicles of different shapes and sizes. Hence, amidst the re-announcement of the launch of the Buick Lacrosse (which GM is touting as China's first hybrid since it is built there as opposed to the Prius which is merely assembled in China) in July, GM China's vice president for sales, Joseph Liu, let slip that the company would also introduce the hybrid version of the Cadillac Escalade (pictured above) sometime next year. No price tag was mentioned.

According to the AP story, Liu also said that GM will follow that up with an "all-electric" car as early as 2010. Although it's not exactly "all-electric" since it has a gas engine, we assumes he means the Volt (or maybe Flextreme), which GM is currently developing.



[Source: Associated Press via Mlive.com]

The Chinese auto industry is booming, as you are surely aware by now. While many are concerned with the emissions of those vehicles, as they should be, there are myriads of other related problems to worry about. One problem which is cropping up relates to tire production, which, of course, requires rubber.

Apparently, China's been importing lots of rubber for its growing number of tire factories from other countries which have already cleared land for the production of rubber. In order to reduce the amount of rubber that they need to import, China is looking to produce more rubber locally, but only has a limited area suitable for growing the rubber trees. For that reason, a good deal of rainforest land is being cleared to make way for more rubber plantations. The China Rubber Industry Association forecasts that natural rubber output will grow by 30 percent to 780,000 tons by 2010.

[Source: Just-Auto]

Despite the fact that European buyers have a penchant for choosing diesels over hybrids (and everything else for that matter), Chinese manufacturer BYD (Build Your Dreams) is planning on testing out the Euro-hybrid waters. Their hybrid sedan, which was shown off in Detroit at the Auto Show, uses ferrous batteries and features plug-in capabilities. The vehicle is capable of traveling on electricity alone for treks of up to 60 miles before the gasoline engine is required. Still, hybrid sales in China have yet to set the world on fire.

"Savings on running costs [in Europe] are higher than in China because of high European fuel prices," according to company president Wang Chuanfu. "The emphasis in Europe is on the environment. So we will first bring our hybrid models to Europe. Start of sales in 2010 would be ideal." Chuanfu also hints that European production is also a possibility for their line of vehicles. A video of the BYD FD DM PHEV is pasted after the break.

[Source: Automotive News China - sub. req'd.]

At last year's New York Auto Show, the Chevrolet mini car triplets were the stars of the show, particularly the lime green Chevy Beat. Later in the year at the LA Auto Show, GM announced that the Beat would indeed go into production around 2010. The first spy shots of what appears to be a Chevy Beat wearing the usual camo suit of vinyl and tape have now surfaced. Interestingly although the Beat was designed and engineering by GM's Korean team at Daewoo, this particular car was snapped in China. This of course raises the obvious question of whether in fact this is a genuine GM prototype or a premature knock-off from Chery or some other Chinese builder. Given that the Beat has been around for a year now and has made the rounds of all the auto shows, it would be pretty easy for someone to gather enough information to create a pretty realistic-looking replica. Only time will tell if this one is the real thing. We'll be watching for an introduction at the upcoming Beijing Motor Show.


[Source: China Car Times]

The recent Tibetan independence demonstrations and the Chinese response have, in this Olympic year, turned the eyes of the world towards the "roof of the world." There have been some who have called for the boycott of the Olympic games and Chinese products as a result of the harshness of the "crackdown". Our own president has even gotten involved and has asked the Chinese Premier, Hu-Jintao, to hold talks between the the Dali Lama's representatives and the Chinese government, though I suspect even the suggestion of such a rapproachment wasn't warmly received.

What does any of this have to do with more-environmentally-sensitive transportation? Well, I came across this article recently that informed me that the source of much of the lithium in the batteries that power our laptops, cell phones and soon, our hybrid and electric cars, is mined at the Chabyer Salt Lake in the Tibetan Autonomous Region. This is the largest source of known lithium reserves in the world, according to the China-Tibet Information Center, and it has helped China become the largest producer and user of lithium ion batteries. Yes, we mine a lot of lithium here in the U.S. but that is used mostly for a host of other products.

In the process of mulling all this over during the past week I have read about the history of Tibet and its entanglements with other countries and contemplated the stances of the various "sides" involved. I haven't reached anything approaching a firm conclusion but the process has been a beneficial learning experience.

In the end, I can only offer this information as an example of how our actions in this modern, tightly-connected world might affect people living in distant lands and how "treading lightly" might prevent that boomerang of karma from sneaking up behind us.

[Source: Green Energy News]

Zap's CEO Steve Schneider did a very interesting audio interview with CEONEWS.Tv recently where he talked about the Zap-X, the Zap-Coke deal and the future of the company. On Zap-X, Schneider says Chinese automaker Youngman owns 51 percent stake in the Detroit Electric joint venture, while Zap owns 49 percent in the company. Schneider explains Detroit Electric will sell higher speed electric vehicles while Zap continues to sell the lower speed vehicles. Schneider says the Youngman relationship is unique because, according to his understanding, there are only a handful of licenses given to Chinese companies to make cars inexpensively (Zap can sell buses for half the price, for example). On the release of the Zap-X, Schneider says it's a 36-month project but did not say when it started (it's been at least 14 months). Schneider did say the Alias is a 18-month project and they are six months into it. Remember that Zap has been talking about the Alias since June 2007, which was eight months ago.

On the recent deal with Coke (Coca-Cola is using thirty of Zap's compact trucks in Montevideo, Uruguay) Schneider says it was spawned from the UPS deal. Schneider explains the UPS deal came from one brave UPS rep that "risked his career" to use Zap trucks and a tractor trailers hub model. The hub model showed bottom line savings for the company and what do you think happened to that UPS rep? He was promoted to a much "larger capacity" position at the San Fran UPS branch! "Quite a few" companies (Schneider won't give out names) have contacted Zap, looking to repeat the model, since that brave UPS rep started the ball rolling.

Schneider also talked about a trip to Dubai and said the Middle East is more interested in electric cars than you might expect. Schneider was asked about the Daimler lawsuit and while he could did not say much, he did say Zap's lawyers tell him it should be settled in three months. Things are changing like the climate Schneider jokes and "the market is finally catching up (after 14 years) to what ZAP has been preaching." Schneider expects Zap to have 100 dealers by the end of this year, up from 56 at a recent meeting. AutoblogGreen is not a stock investing website but we have to admit we are really impressed by this interview and Zap's CEO Steve Schneider responses. He talks a good game, at least.


[Source: CEONEWS.Tv]

As is known to everybody, China is hungry for energy. Biofuels look like one of the solutions the biggest country on Earth is seriously considering. Take this example: China Agro-Technology, Ltd. has announced that it's investing $200 million to build a two million ton per year biodiesel refinery in Beihai, Guangxi Province. The company announced that they have new "advanced leaf growing technology" to grow Jathropa as source to make biodiesel.

According to Dr. Harry He, China Agro-Technology founder and chairman, "Biodiesel has the highest demand of any commodity in China. To meet the 2020 B10 Kyoto Protocol requirement, China needs 12,400,000 tons of biodiesel in 2008. However in 2007, the supply in China was less than 1 million tons. Therefore, the product from this biodiesel plant will be a very important part of China's effort to meet the requirement." Let's hope that "advanced leaf growing technology" is up to snuff.

[Source: China Agro-Technology, Ltd.]

China will ban about half of its 3.3 million cars from the streets during the Beijing Olympics (August 8-24) in an attempt to cut air pollution. Necessary cars like emergency vehicles, buses and taxis will be allowed but only if they have an even or odd number license plate number that matches the even or oddness of the date. China may also change the emissions standards of cars and gasoline sold in Beijing to comply with international standards. Will all of this lower the air pollution at the Beijing Olympics? Not likely. Recently, China tested the car ban and discovered it actually increased air pollution.

[Source: Guardian, Xinhua News Agency]