3M and Chesapeake Energy partner for new CNG tank

According to a statement released today, 3M and Chesapeake Energy Corporation have entered into an agreement to cooperate in the design, manufacturing and marketing of a new range of compressed natural gas (CNG) tanks for vehicle applications.

Currently, the most expensive component on a CNG vehicle is the tanks. The new tanks to come from the new partnership will reduce costs while increasing performance thus enabling CNG to become a serious player in the alternative fuels market.

3M says its new CNG tank will be 10 to 20 percent lighter with 10 to 20 percent greater capacity, all at a lower cost than standard pressure vessels. In addition to these benefits, the 3M tanks should be safer and more durable than those currently on the market.

“3M believes in the potential of natural gas, and this agreement illustrates our commitment to the industry,” said George Buckley, Chairman, President and Chief Executive Officer of 3M. “We are excited about this collaboration to speed the development and adoption of natural gas-powered vehicles.”

Increased political support and private investment are making natural gas a viable automotive fuel alternative with large growth potential. With more than a 100-year known supply of natural gas in the United States and an average price per gasoline gallon equivalent of $1.00 to $2.00, the fuel is plentiful, affordable and domestic. The fuel also burns more cleanly than gasoline, cutting greenhouse gas emissions by 30 percent and particulate matter by 95 percent.

“This partnership brings together two leading companies from different sectors, both committed to advancing the natural gas transportation fuel market,” said Aubrey K. McClendon, Chesapeake’s Chief Executive Officer. “We applaud 3M for recognizing the future of natural gas as a low-cost, cleaner alternative to gasoline, and for creating innovative tank technology that will make natural gas vehicles more affordable and accessible to fleets and individual consumers nationwide. Our country needs a solution to break the foreign stranglehold on our fuels market, and today’s announcement is another step to transition our nation away from costly imports.”

Chesapeake has pledged an initial $10 million toward design and certification services, market development support and a commitment to use the new tanks for its own corporate fleet conversion to CNG. 3M will manufacture the tanks and focus its capital on all future operations and production.

3M has engaged Hypercomp Engineering, Inc. of Utah for the design and certification of tanks. The company expects the tanks to be available for sale during the fourth quarter of 2012.

Although CNG has been in use by fleets for a number of years, it hasn’t had the opportunity to make a mark on the consumer market. Conversions are widely available but the Honda Civic Natural Gas is the only factory-built CNG vehicle currently offered to the general public.

BMW to show its own MINI-van in Geneva

There are minivans and there are minivans, but at the Geneva Auto Show, BMW will introduce its own MINI-van, the MINI Clubvan concept.

With the variety of changes the German automaker has been playing on its smallest car, it was only a matter of time before a version with commercial applications was added. The original Mini was also offered in a commercial configuration in 1960 as the Morris Mini Van.

BMW sees the Clubvan as the perfect vehicle for a fashion designer, art gallery owner or catering service. It would also be a good fit for pizza or Chinese food deliveries and shot-shot messenger services. The company is also enthusiastic about the Clubvan’s potential as a lifestyle vehicle.

A would be expected of a mini panel delivery the Clubvan comes with just two seats. A fixed partition grille separates the flat load area from the passenger compartment. The lower section of the partition is made from solid aluminum, while the upper section consists of a silver-colored stainless steel honeycomb grating. The load compartment has six attachment loops recessed into the floor that use elasticized straps to hold cargo in place.

The Clubvan Concept has the same five-door configuration as the the MINI Clubman. Two front doors for the occuants, side-hinged rear doors the rear-hinged “Clubdoor” on the right-hand side create comfortable access to the interior.

The side walls and floor of the load compartment are trimmed in high-quality anthracite-colored cloth. There’s also a full-length anthracite roof liner. One interesting twist is the use of body-color-painted polycarbonate panels to replace the side glass in the cargo area. In similar vehicles, the glass is typically replaced by steel panels welded in place; it’s lower cost and stronger. The rear windows are opaqued, helping to conceal contents from prying eyes.

The British Racing Green MINI Clubvan Concept comes decorated for a sign company located in Southport, Merseyside, north of Liverpool on the east coast of the Irish Sea. The company creates similar vehicle graphics for its customers.

It’s worth noting that, even though the Clubvan concept is touting its British heritage with the color and and the signage, the steering wheel is on the left side. Could it be the Clubvan is aimed a bit farther west than Liverpool?

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The silly season gets sillier

As if the paranoia of Limbaugh and Rove over the Chrysler Super Bowl ad wasn’t enough, Republican Presidential hopeful Newt Gingrich has apparently decided he needed to cap it.

While campaigning in his home state of Georgia, Gingrich drew applause by telling his audience “You can’t put a gun rack in a Volt.”

Of course, Gingrich was just trying to make points, but perhaps he didn’t know that General Motors has set up a new blog, called BTW, that in the words of Selim Bingol, GM’s vice president of corporate communications, “…we’ve created to share our views on news and topics of interest affecting General Motors and the auto industry and, most important of all, the people who care so much about both.”

In the blog’s first entry, entitled “We did not engineer the Volt to be a political punching bag,” Bingol writes: “Newt Gingrich has taken up saying that “You can’t put a gun rack on a Volt.” That’s like saying “You can’t put training wheels on a Harley.” Actually, you can. But the real question is “Why would you?” In both examples:

    1. It looks weird
    2. It doesn’t work very well, and
    There are better places for gun racks and training wheels — pickup trucks and little Schwinns, respectively.

Seriously, when is the last time you saw a gun rack in ANY sedan?

“The Chevy Volt is a wonderful car. It is among the safest vehicles on the road – earning an overall NHTSA 5 Stars for occupant safety and a Top Safety Pick from the Insurance Institute for Highway Safety.

“It is a technological wonder. Motor Trend called it a moon shot, and it is.

“Volt is the only current electric vehicle on the road that you can drive across town or across the country without fear of being stranded when the battery power is depleted. No other EV can do this. The Volt gives drivers a choice beyond relying exclusively on oil for driving – and to use energy produced in the U.S. rather than from places that might not always put America’s best interests first.

“It can do a lot of things, but if you are looking for a vehicle for your next hunting trip, it may not be your first choice.

“This is a good example of what GM CEO Dan Akerson talked about before a Congressional hearing in January, when he said: ‘Although we loaded the Volt with state-of-the-art safety features, we did not engineer the Volt to be a political punching bag.’”

That was Chrysler’s story, too.

Note to Newt: Smart people don’t put visible gun racks in their vehicles. Too likely to have the gun stolen.

Ford to show new concept van at Geneva

Ford will present its new Ford Tourneo Custom Concept at the 2012 Geneva Motor Show in March. The Tourneo shows the direction for a completely new range of people movers, with commercial vehicles to follow, beginning this year.

“One look at the Tourneo Custom Concept is enough to tell you that it will inject an exciting new spirit into the personal use segment,” said Stephen Odell, chairman and CEO, Ford of Europe. “Our forthcoming new range gives us the opportunity to appeal to new customers with a fresh new direction, and we have seized that opportunity with both hands.

“We are excited to present this significant new concept in Geneva. The Tourneo Custom’s car-like qualities will be appreciated by a broad range of business and leisure customers, and this is a fitting venue to present the vehicle for the first time.”

The Tourneo Custom Concept previews new features that include a new interior design with driver-focused cockpit and a fully trimmed cabin intended to recreate the ambience of a sedan. Additional features include multi-adjustable and removable rear seating, advanced SYNC voice-activated, in-car connectivity system with Emergency Assistance feature, and the Ford low-CO2 technologies.

The Tourneo Custom Concept is based on the same design language as Ford’s Kinetic Design passenger cars which has generated positive buzz on both sides of the Atlantic. Signature features include the bold trapezoidal grille, strong shoulder line, prominent wheel lips and window lines with a distinctive kick at the rear.

“We set out to create a design with clean, futuristic lines and with a real sense of occasion,” explained Paul Campbell, chief designer, Ford of Europe.

“With its sportier stance, bold rising shoulder line and flush glazing, the Tourneo Custom Concept brings something fresh and exciting to this class of people mover.

“By applying the latest Kinetic Design principles, the design has a completely new style and drama,” he added.

The Tourneo Concept features advanced technologies like Ford’s ECOnetic low-CO2 system with auto-start-stop and regenerative charging. Ford’s SYNC infotainment system is on board as is a new emergency services feature designed to assist occupants to contact help in the event of an accident and provide vehicle location information. There’s also a rear-view camera and driver assistance systems that detect and send an alert if the vehicle is inadvertently drifting out of the lane, or if the driver is becoming tired.

The vehicle is powered by an improved version of Ford’s 2.2-litre Duratorq TDCi diesel engine.

“Customers in the personal use market are demanding much higher levels of technology, performance and handling,” said Barry Gale, chief engineer, Ford of Europe. “This concept shows that we are taking those demands very seriously, and that customers can expect a rewarding and car-like driving experience.”

While the Tourneo isn’t intended for the North American market, it may provide some hints of future designs we might see as Ford unifies its van and people-mover product lines around the world.

Infiniti JX makes its debut

2013 Infiniti JX Job One, which Nissan calls “the first luxury vehicle produced in the state of Tennessee” rolled off the production line during a special ceremony at Nissan’s Smyrna Vehicle Assembly Plant. The seven-passenger luxury crossover is the latest addition to the Infiniti line and will go on sale nationwide in March.

The Emerald Green JX was the guest of honor at a celebration at the plant where the technicians who will build the new JX were joined by Bill Krueger, Nissan Americas Vice Chairman. Infiniti Americas Vice President Ben Poore, Susan Brennan, Vice President of Manufacturing for the Smyrna and Decherd plants and U.S. Representative Scott DesJarlais of the 4th Congressional District of Tennessee.

“We are extremely proud and honored to be building this world-class vehicle right here in Middle Tennessee,” said Brennan. “We expect the inspired design and quality craftsmanship built into every new Infiniti model that rolls off the Smyrna production lines will deliver inspired performance that is second to none.”

Along with the assembly of the new Infiniti JX in Smyrna, the 265-horspower 3.5-liter DOHC V6 engines are assembled in nearby Decherd, Tennessee.

“The luxury crossover market is the fastest growing luxury segment in America, representing a huge opportunity for Infiniti,” said Poore. “In fact, we expect JX to quickly become our second highest volume model, right behind the popular Infiniti G-line.”

Chrysler takes top automotive spot in YouTube ad poll

Chrysler’s “It’s Halftime in America” Super Bowl ad took the top honors among automotive brands according to the YouTube’s 2012 Ad Blitz poll, coming in second overall to M&M’s “Just My Shell” spot and beating Chevrolet’s post-apocalypse “2012″ commercial.

Both of the top automotive ads generated controversy. Conservatives Rush Limbaugh and Karl Rove accused Chrysler and actor Clint Eastwood, who starred in the spot, of partisan politics, saying the ad was a “thank you” to President Obama and his Administration for the 2009 bailout. There were also accusations, proven to be false, that taxpayer money was used to pay for the ad.

Chevrolet’s ad was challenged by Ford. GM rejected Dearborn’s charges of false and misleading advertising and Ford’s demand the ad be pulled. It’s likely the letter from a Ford attorney did more to help GM than it did to help Ford.

U.S. DOT proposes federal guidelines to reduce distracted driving

The United States Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) has issued its first-ever set of proposed voluntary guidelines to help automakers design in-car infotainment systems that reduce driver distractions.

The guidelines cover communications, entertainment and navigation systems but do not include warning systems for lane drift or collision-avoidance as the DOT considers those to be integral to proper vehicle operation.

“Distracted driving is a dangerous and deadly habit on America’s roadways – that’s why I’ve made it a priority to encourage people to stay focused behind the wheel,” said Transportation Secretary Ray LaHood. “These guidelines are a major step forward in identifying real solutions to tackle the issue of distracted driving for drivers of all ages.”

The NHTSA guidelines are intended to establish criteria for manufacturer-installed devices that require visual or manual interaction by drivers. These are the first in a series of guidance documents the agency plans to issue addressing sources of distraction from the primary task of driving.

“We recognize that vehicle manufacturers want to build vehicles that include the tools and conveniences expected by today’s American drivers,” said NHTSA Administrator David Strickland. “The guidelines we’re proposing would offer real-world guidance to automakers to help them develop electronic devices that provide features consumers want—without disrupting a driver’s attention or sacrificing safety.”

The first round of proposed guidelines include recommendations to:

    • Reduce complexity and task length required by the device.
    • Limit device operation to one hand only so the other remains on the steering wheel.
    • Limit individual off-road glances required for device operation to no more than two seconds in duration.
    • Limit unnecessary visual information in the driver’s field of view.
    • Limit the amount of manual inputs required for device operation.

The proposed guidelines would also recommend the disabling of the following operations by in-vehicle electronic devices while driving, unless the devices are intended for use by passengers and cannot reasonably be accessed or seen by the driver, or unless the vehicle is stopped and the transmission shift lever is in park.

    • Text messaging
    • Internet browsing
    • Social media browsing
    • Navigation system destination entry by address
    • 10-digit phone dialing
    • Displaying more than 30 characters of text to the driver unless they are related to the driving task

NHTSA is also considering Phase II guidelines to address devices or systems that are added to or brought into the vehicle, such as aftermarket navigation systems, smart phones, electronic tablets and pads, and other mobile communications devices. A Phase III guidelines could address voice-activated controls.

The new guidelines were published in Thursday’s Federal Register. Members of the public can comment on the proposed guidelines for 60 days. Final guidelines will be issued after the agency reviews and analyzes and responds to public input.

In addition to publishing the guidelines, the NHTSA will hold public hearings next month to get additional public comment. The hearings will take place in Los Angeles, Chicago, and Washington D.C.

GM reports net income of $7.6 billion for 2011

General Motors today announced that its 2011 calendar-year net income was $7.6 billion, or $4.58 per fully diluted share, up from $4.7 billion, or $2.89 per fully diluted share, in 2010. Before charges for other dividends, purchases of preferred stock and undistributed earnings, GM’s bottom line came in at $9.19 billion, setting a record for the 103-year-old company.

Net income for the fourth quarter of 2011 period was $472 million, down 7 percent from Q4/2010. GM Europe lost $562 million, its worst deficit of the year, result that GM CEO Dan Akerson called “unacceptable.” North American earnings nearly doubled in the quarter, overcoming the European losses and a smaller loss in South America.

January sales of GM’s Opel brand were down 21 percent as the European market continues to slump in the face of consumer concerns about the economy. The results added pressure for GM to stem the bleeding at Opel. The losses there came despite a restructuring begun more than two years ago and 5,800 job cuts.

Looking at the larger picture, Akerson said, “In our first full year as a public company, we grew the top and bottom lines, advanced our global market share and made strategic investments in our brands around the world. We will build on these results as we bring more new cars, crossovers and trucks to market, and make GM a far more efficient global team. This includes reducing our break-even level in Europe and South America and driving higher revenues around the world.”

GM North America reported adjusted earnings of $1.5 billion in the fourth quarter, up from $0.8 billion in 2010. For the full year, EBIT rose to $7.2 billion from $5.7 billion in 2010. Based on the results, GM will pay profit sharing of up to $7,000 to approximately 47,500 eligible GM U.S. hourly employees.

GM European operations lost $600 million in Q4, including $200 million of restructuring costs. That matches last year’s results. Full-year loss came to $700 million, which was an improvement over 2010′s $1.3 billion loss.

GM’s International Operations posted Q4 earnings of $400 million compared with $300 million in 2010. For the year, EBIT was $1.9 billion in 2011, down from $2.3 billion in 2010.

GM South America was in the red by $200 million in Q4, including $100 million in restructuring costs, compared with EBIT-adjusted of $0.2 billion in 2010. For the full year, GMSA earnings swung to a $100 million loss from $800 million in 2010.

For the fourth quarter of 2011, automotive cash flow from operating activities was $1.2 billion and automotive free cash flow was $(0.9) billion, which includes the previously announced $0.8 billion contribution to the HCT.

GM ended the year with strong total automotive liquidity of $37.5 billion compared with $33.5 billion in 2010. Automotive cash and marketable securities was $31.6 billion compared with $27.6 billion at the end of 2010.

U.S. Pension Update

GM’s U.S. defined benefit pension plans earned asset returns of 11.1 percent in 2011. They ended the year 88 percent funded, largely unchanged from 89 percent funded a year ago.

General Motors is taking steps toward its goals of “de-risking” and fully funding its U.S. pension plans by freezing its defined benefit pension plan for U.S. salaried employees hired before January 1, 2001. They will be switched to a 401(k) program like employees hired after that date.

Looking to the future, GM CFO Dan Ammann said, “We are executing an aggressive product plan that will give customers around the world even more reasons to purchase a General Motors vehicle. Behind the scenes, we are working hard to eliminate complexity and cost throughout the organization to increase margins in all of our regions, and return Europe and South America to profitability. Overall, we have made good progress and we have more work to do.”