Category Archives: GEM

Aurora, IL: STOV Market Segment Example

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NEV Replacing Full-size Vehicle

NEV Replacing Full-size Vehicle

The parks and recreation department in Aurora, IL has just purchased two NEVs from GEM to replace full-sized vehicles.  The vehicles are being used for maintenance in a park and a zoo. Learn more

Comment: This is an excellent example of where a full-sized vehicle is overkill but a utility vehicle can be highly efficient performing the necessary tasks.  In this case it also an example of market segments where end-users (often parks departments) are switching from gas-powered to and electric powered vehicles. mcesare

Chrysler Creates Separate Subsidiary for Peapod

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Peapod From Newly Formed Peapod Mobility, Llc

Peapod From Newly Formed Peapod Mobility, LLC

Chrysler recently created a separate subsidiary, Peapod Mobility, LLC, to market the Peapod, which had been under the GEM brand. The new company is headed up by Chrysler “brand guru” Peter Arnell who helped design the Peapod. The company is targeting the 20 something segment with the vehicle. Arnell recently told Brandweek,

You know how the Beetle was the vehicle of choice for the whole ’60s, the hippie revolution and everything? We’re hoping that this becomes the new-wave car for the younger set as well as addressing mom and her needs with her kids.

The company expects to deliver the first Peapod. a four-seater, in September 2009 followed by a two-seater later in the year and a utility vehicle in the Spring of 2010. Learn more

Comment: If they do produce a utility vehicle what will that mean for GEM which sells a large number of vehicles configured as utility vehicles. It seems like it would put the companies in direct competition. The other question is whether or not NEVs with their limited mobility will appeal to a younger and presumably more mobile market segment.

Army Leases The First Of 4,000 LSVs

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First Army NEVs Delivered (Molly Riley/Reuters)

The Army took delivery of six GEM LSVs, the first step towards eventually acquiring 4,000 LSVs. A total of 800 vehicles will be delivered in 2009, followed by 1,600 in 2010 and 1,600 in 2011.

Not all of the vehicles will necessarily be GEMs which were procured through the GSA. The GSA currently lists GEM, Columbia ParCar, E-SUV and ZENN as LSV vendors. In an interview with bloggers, Paul Bollinger, Deputy Assistant Secretary of the Army for Energy and Partnerships, remarked that he expected to see more manufacturers to join the GSA list. The GSA posted a request for vendors on Fedbizopps.com today.

He also noted in the interview that the Army had identified 28,000 sedans and light trucks that could potentially be replaced by electric vehicles, either LSVs or higher speed vehicles. Part of the reason they have moved to LSVs is that fueling station infrastructure for alternative fuel vehicles has not been able to keep pace with vehicle acquisition. The necessary infrastructure costs would be in the millions of dollars while the installation of three-prong outlets for charging the LSVs will only cost an estimated $200 per vehicle.

The Army estimates an LSV saves them $3,300 compared to a full-size sedan. The LSVs will be leased for six years and maintenance and battery replacement are included in the lease. Bollinger remarked that not only will the Army save on fuel costs but also produce lower emissions and help drive the market for LSVs and battery technology. The Navy has directly expressed interest in “piggybacking” on the Army program and while the Air Force has used back channels to show their interest in joining forces.

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GEM Loses Luster With Army In Europe

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After a six month trial the US Army has decided not to use GEMs at garrisons across Europe.

GEM on test with US Army

GEM on test with US Army

During the trial three vehicles were tested at US Army garrison Grafenwohr in Germany. The vehicles were used for trash site inspection, mail delivery and housing area checks. According to Stars and Stripes,

Last week, Grafenwohr’s director of public works, Tom Hays, said the cars failed to impress.

“They broke down too often and didn’t have enough range,” he said of the cars made in the States by a Chrysler subsidiary.

Other comments by Hays suggest that the primary problem is with the vehicle’s limited range, about 30 miles. The article notes that these test trial results does not preclude the Army from revisiting the use of electric vehicles in the future.

More in Stars and Stripes

Transport Canada Crash Test Video Continues Battle Against LSVs

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Transport Canada posted video footage from recent crash tests of the ZENN and what appears to be a GEM model to bolster their contention that LSVs represent a safety problem when mixing with regular vehicles on public roads. Transport Canada states that:

A low-speed vehicle may look like a car, but it is not a car. It is not required to meet the large number of safety standards (up to 40) that a regular passenger car must meet. The low speed vehicle class was originally intended for controlled low speed environments, like gated communities, where the risk of a LSV entering into a collision with a faster motor vehicle would be lower than on public roads. Transport Canada’s crash test results to date confirm that low speed vehicles provide a substantially lower level of occupant protection than conventional passenger cars.

According to The Gazette in Montreal, ZENN’s CEO Ian Clifford responded

Releasing these images without the statistical frame of reference is somewhat irresponsible on Transport Canada’s part. …Our assessment is that low-speed vehicles are among the safest vehicles on the road. I drive our vehicles all the time. I drive the vehicles with my children in them.

I contacted GEM to confirm if it is indeed a GEM model in the video and get their response to the testing but have not heard back from them, perhaps after the holiday.

Plug-In Tax Credit To Boost NEV Sales?

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As part of the recently passed H.R. 1424, the Emergency Economic Stabilization Act, consumers of plug-in electric vehicles can qualify for a tax credit of $2,500 to $7,500. I have recently spoken with a number of NEV manufacturers to get their thoughts on the legislation and as a group they are cautiously optimistic about the tax credit applying to NEVs. According to Kara Saltness of Miles Electric Vehicles the tax credit originally targeted highway speed vehicles but it appears that NEVs will qualify and that sentiment is supported by a press release from U.S. Representative Earl Pomeroy of North Dakota, home of GEM vehicles.

“Congress has taken an important step in encouraging the use of energy efficient vehicles by creating a $2,500 tax credit for plug-in electric drive vehicles like those manufactured by Global Electric Motorcars,”

According to the NEV manufacturers I spoke with the details are still currently being worked out by the government such as, who will qualify, consumers or businesses, likely both is the sentiment, and whether golf carts will be specifically excluded.

Qualifying electric vehicles must be a plug-in and be powered by a battery pack with a minimum of 4 KW of capacity. The credit would increase by $417 from $2,500 for each KW above 4KW. Most of GEMs models have a 4KW battery pack and others have 6 KW. Similarly Dynasty and Miles Automotive believe their vehicles will qualify for the tax credit as well. This could create a significant boost to the NEV market since the $2,500 tax credit translates into a sizable cost deduction for these vehicles. For example, based on prices listed on GEM’s website the tax credit would mean a discount of anywhere from 20% to 37% off the price of a GEM, depending on the model. Dynasty is currently planning on introducing a lithium ion battery pack for their vehicle in the middle of next year and this tax credit would essentially cover the extra cost of that battery, according to general manager Danny Epp.

According to the US Senate’s summary of the bill, the tax credit is slated to start in 2009 and

“…taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the total number of qualified plug-in electric drive vehicles sold in the U.S. exceeds 250,000.”

This means that NEV manufacturers will be competing against manufacturers of full-size and highway speed vehicle manufacturers for a sizable but limited number of credits. However, for 2009 and even 2010 there may not be much competition for the NEVs since not many full-size plug-in electric vehicles are expected to be available.

Regulatory & Government Related News Update

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The following is an update on some of the regulatory and government related news affecting the NEV market that has occurred from the beginning of the year.

California aims to increase NEV credits – The California Air Resources Board announced and took comments on changes to their ZEV program. One of the proposed changes is to increase the credits for NEVs from 0.15 to 0.3 per vehicles “…to reflect the vehicle’s positive environmental benefits but limited functionality compared with full function battery or fuel cell EVs.” Regulators are calling for as few as 27,500 no-emission vehicles to be introduced between 2012 and 2017, compared with 75,000 in the existing mandate.

The following synopsis is from my interview with a program manager: The proposal will be reviewed within a year or less and other changes may move partial ZEV vehicles into the low emission program and hybrids into the green house gas program which will push vehicles in these programs down to the emission levels of these type of vehicles respectively. The idea is to leave the ZEV program as an incubator for new technologies with the goal of bringing these technologies to market quickly. The inclination is to make these requirements more stringent to speed up bringing technology to the market. This begs the question of where NEVs will fit since their technology is not new and a viable market has been established.

Arizona drafts zero emission vehicle mandates – In January of this year state environmental officials in Arizona released draft rules that would mandate that 11 percent of each company’s vehicles sold in Arizona beginning in the 2011 model year have zero emissions. The percentage would increase to 16 percent by 2018. Other options for meeting the standards include selling more partial zero emission vehicles or purchasing zero emission vehicle credits from other manufacturers. Currently NEVs are the primary zero emission vehicles operating on the roads.

Alternative fuel vehicle rebates – California is offering rebates of up to $5,000 to residents who purchase alternative fuel vehicles. $1.62 million in rebates are scheduled to be granted statewide by California Center for Sustainable Energy, an independent nonprofit organization based in San Diego. Owners of Vectrix electric motorcycles may qualify for up to $1,500 and Global Electric Motorcars owners may receive $950 and $1,300.

According to the California Air Resources Board website the 2008 model year Miles ZX40S AD and ZX40ST neighborhood electric vehicles have been added to the list of vehicles eligible for rebates under the Alternative Fuel Vehicle Incentive Program (also known as Fueling Alternatives). They will be available for a $1,500 rebate, Other models from GEM, Zap and ZENN are also available for rebates ranging from $950 to $1,500. See the following list for more information.

New car buyers in the state of Washington are going to get a break on their sales taxes when they buy some vehicles that run on alternative fuels. The tax break (9.3 percent in the Seattle area) covers vehicles that run on natural gas, propane and hydrogen, as well as “neighborhood electric vehicles” or “medium speed vehicles” (street legal, but can’t go faster than 35 mph).

Chrysler, maker of the GEM, and Vectrix, an electric scooter manufacturer, are both trying to get their vehicles covered by a new tax credit for plug-in electric cars. The legislation now covers “regular” sized passenger vehicles which are eligible for a $3,000 tax credit when purchased. Chrysler and Vectrix are pushing for a $1,500 credit for “urban commuter vehicles”. The legislation is part of a larger bill covering renewable energy and other tax credits that may be passed in the coming months.

Current NEV manufacturers listed as GSA suppliers – NEV manufacturers listed on the General Services Administration supplier list include GEM, ZENN, Columbia Parcar and Classic Golf Car

GEM Has A New Model & A New Name

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New model for 2009
GEM Peapod – New model for 2009

GEM recently announced a re-designed model called the Peapod, which will go into production in 2009. The Peapod includes a newly-designed center console that will offer iPod integration and hands free operation of an iPhone. Additional new features includes the use of eco-friendly recycled and recyclable materials and ergonomic, mesh seating which enables air circulation for comfort.

GEM Peapod features a re-designed console

GEM Peapod features a re-designed console

According to management GEM also has plans to market a new light-duty, battery electric commercial truck and a larger city electric vehicle, with more range and performance. These vehicles are scheduled for production within the next year.

In a related note, GEM has changed its name from Global Electric Motorcars to GreenEcoMobility to reflect the company’s goal to redefine environmentally-friendly vehicles.