AGENDA NO. 5

Proposal:

Execute a Contract to Cost-Share the Development of a Prototype Economical Advanced Electric Vehicle and a Plan for California Production

Synopsis:

ARB has identified several impediments to development and production of EVs by major vehicle manufacturers, including low-volume production, uncertain market and undeveloped electric drivetrain and battery technologies. The proposed contract with ARB will produce an EV design and analysis of the processes\costs of developing and manufacturing low production volumes of advanced EVs in California. AQMD contribution to this $2.4 million program will not exceed $500,000.

Committee:

Technology Committee, April 10, 1996, referred to the Administrative Committee.

Administrative Committee, April 19 and May 24, 1996, Recommended for Approval.

Recommended Action:

Authorize the Chairman to execute a contract with the ARB for the design and production analysis of an advanced electric vehicle, not to exceed $500,000.

James M. Lents, Ph.D.
Executive Officer

Since the adoption of the LEV/CF program, the ARB has identified several barriers to development and production of ZEVs by the major vehicle manufacturers. First, these manufacturers are accustomed to high-volume production of internal combustion engine vehicles (100,000+ per model vehicle, per year) which would not initially be met by ZEV demand. Production of ZEVs would require tremendous engineering and tooling investments for a low-volume vehicle. Another concern is the development of new vehicle designs incorporating electric drivelines utilizing batteries that are currently either inadequate in performance or excessive in cost. Finally, there is a perceived lack of charging infrastructure and service support for ZEVs, necessary to ensure customer satisfaction and demand.

Identified as the World Electric Vehicle (WEV), ARB believes that this advanced EV has the potential to capture a sizable market and lead the way for the commercialization and market penetration of EVs. As a purpose-built EV, the WEV will optimize performance with light-weight materials and advanced aerodynamic styling. TDM’s expertise in low-cost manufacturing is expected to result in an electric vehicle with the capability of being priced competitively with conventional sports sedans at low-production levels (20,000 or less per year). The prototype vehicle produced through the proposed project will be available to the AQMD for demonstration purposes.

This project is identified in the Technology Advancement Plan for the Clean Fuels Program as Project MS-03, “Development and Demonstration of an Advanced Purpose-Built EV for Mass Production.” This project targets the design and production of a prototype electric passenger vehicle, and production analysis of the resources, facilities and costs of producing a purpose-built, four-passenger electric vehicle, intended to help meet the requirements for zero-emission vehicle introduction in 2003. The AQMP relies on substantial penetration of zero-emission vehicles in the Basin to attain federal clean air standards by 2010. Although the emission benefits from a single EV would be small, if the project is successful, the reduced costs of these EVs could increase their penetration into the Basin. Competitively priced EVs with advanced performance characteristics would be more readily accepted by consumers and, therefore, result in increased EV sales.

The potential market for EVs that will contribute to reducing emissions in the Basin and achieving clean air standards is substantial. The development of the technology and subsequent manufacture of the vehicles represents an economic development and job creation potential for California and the Basin.

It is in the AQMD’s best interests to enter into a cost-share agreement with ARB for design and production analysis of an electric vehicle. AQMD funding of $500,000 will be leveraged with the ARB’s $500,000, $600,000 from TDM, and $800,000 provided by the Advanced Research Projects Agency (ARPA).

As the state agency assigned responsibility for setting vehicle emission standards, the ARB is well acquainted with domestic and foreign automobile manufacturers and designers. ARB considers the design of a viable passenger electric vehicle as essential to meeting California’s ZEV sales requirements for 2003.

TDM is the only qualified vehicle manufacturer that has demonstrated a positive desire to design and produce advanced electric vehicles that can offer Californians a vehicle with styling, four-passenger comfort, high performance, acceptable driving range, and an acceptable purchase price. TDM has developed a reputation for producing high quality limited-production volume vehicles. In fact, TDM has supported most major US automotive manufacturers over the past 15 years by providing low-volume production models. TDM has the expertise and capabilities of a major manufacturer but, unlike the major manufacturers, TDM specializes in small volume, low-cost design and production. Currently, TDM is the only Qualified Vehicle Modifier (QVM) for Ford’s entry electric vehicle, the Ford Ranger pickup truck.

As a state agency, the ARB is required to seek out women and minority-owned business for participation in contract activity. Although TDM is not a woman or minority-owned business, the company has made a commitment to seek qualified businesses in the Basin for participation in this project. Specifically, TDM will seek to utilize qualified Southern California electric vehicle component manufacturers and materials fabricators for the WEV.

Sufficient funds are available in the FY 1995-96 Budget to fund this project.