The Opportunity for GE in Electric Cars

Electric car made from batteries
Electric car made from batteries

General Electric, particularly Jeffrey Immelt, the company’s Chief Executive Officer, has created a massive ripple in the electric car market when he announced that the power company has placed an order to General Motors, the makers of the Chevy Volt, totaling 12,000 units. This he said was in accordance with the company’s aim to have a full electric vehicle fleet of 25,000.

The company is vigorously pushing for the electric vehicle program for its fleet and now new electric vehicles, not just from GM are starting to fill the company’s parking lots. A new internal memo sent out said that employees who opt out of the electric vehicle fleet program and instead use a personal vehicle, GE would not be reimbursing the cost for the vehicle being used for business purposes.

The company would reward those participating in the program, allowing them to charge into the company account for charging station costs and the Volt recharging portion of their monthly electricity bills.

This begs the question on why the company is so vigorous in pushing electric cars to its employees. One reason and probably the most important one is that GE would be able to save money in the long run. It has been proven time and again that electric car fleets would be more economically efficient compared to internal combustion engine vehicles. Current figures put running costs of plug in cars at one fifth to one third the running costs of gasoline powered vehicles.

Another major factor though, why it is still money, it serves the benefit of the company’s investors. This is because GE has a major stake in the market of electric vehicles and not just the electric cars per se. The first play that the company makes is in the construction of electric vehicle charging stations, with its flagship GE WattStation that can fully recharge vehicles in as low as four hours. The company is also one of the largest shareholders of battery maker A123 Systems and the company is finding many other ways to promote the electric car and its attendant infrastructure.

It is entering into many partnerships, such as Nissan on how to promote adoption of electric cars and with EV company Better Place to allow GE charging stations to become compatible with Better Place’s infrastructure. Clearly, the market is on the upswing and GE wants to have a bigger slice of the pie not as a direct participant in producing electric cars but in the support systems that makes this vehicle a success in the long run.

Electricity Giant Partners with EV Carmaker

electricCARBATT
electricCARBATT

General Electric Energy had announced last Wednesday that the company’s 240-volt wall-mounted WattStation electric vehicle charging unit would be the standard charger for the upcoming electric vehicle from Coda.

In its statement, the electricity giant called Coda, a start-up company, as a leading electric vehicle manufacturer despite the fact that the company still has to roll out an actual electric vehicle. This partnership though is a positive sign for the car maker’s future, where its unveiling has been marred with delays and further delays.

In the same announcement, Coda announced that the production of the Coda electric sedan was underway. It also included a price dip by as much as $5,000 from the previous estimates for the purchase of the Coda sedan.

According to CEO of Coda, Philip Murtaugh, the price of the upcoming sedan was down to $40,795 through examination of each line item in building the vehicle. There was also a marked improvement in quality and presentation of the vehicle and was proven with the vehicles displayed, with more comfortable seats and better fitting door panels. The Coda sedan was originally a four seater but the latest reincarnation seats five people comfortably.

GE’s participation would be through the energy charging facilities for the Coda electric sedan’s 36 kilowatt-hour battery. The byline in the Coda electric sedan is its bigger battery compared to its competition. This battery pack is 50 percent larger than the Nissan Leaf, thus, allows the Coda to run for 120 miles compared to the Leaf’s 80 miles on a single charge. Coda’s onboard charger claims to be twice faster than the 2011 Leaf’s charger.

These though are claims made by Coda and are still unproven. The fact though that GE is willing to package its home charger with Coda, together with the lower price of the sedan, makes it impossible not to ruffle many feathers in the small but highly competitive electric vehicle market.

This is just one step in the corporate goals of maintaining all core design and engineering work internal to the company and establishing partnerships with manufacturers and suppliers around the world. These partners include BorgWarner, UQM Technologies, EnergyCS, Continental Automotive Systems, Porsche Design Studios, Delphi, Celgard, Novolyte Technologies, OMITEC, Lear, Hella, Hafei and Lishen. Overall, Coda maintains over thirty separate relationships with companies and partners in four continents across the world.