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Preface

Preface. 1990: California Air Resources Board (CARB) created Zero Emissions Vehicle mandate. Automakers sued CARB 1996: GM rolled out first electric car, the EV1 2003: CARB repealed the mandate and EV1’s were collected and crushed. General Motors. Batteries. Suspects. Consumers. CARB.

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Preface

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  1. Preface • 1990: California Air Resources Board (CARB) created Zero Emissions Vehicle mandate. • Automakers sued CARB • 1996: GM rolled out first electric car, the EV1 • 2003: CARB repealed the mandate and EV1’s were collected and crushed

  2. General Motors Batteries Suspects Consumers CARB Oil Companies Hydrogen Fuel Cells Federal Government

  3. Consumers • EV1’s • Range: 70-90 miles per charge • 2 hours to recharge • Fast and sporty • Miles per day traveled by the average American: 23 • GM sales staff: thousands on waiting lists • GM: demand wasn’t high enough

  4. General Motors • GM led the suit against CARB • Why? • Didn’t like being told what to do • Feared elimination of the internal combustion engine • Cryptic advertising campaign • EV1’s only released in AZ and CA • Could only lease the car

  5. Batteries • Battery in EV1 • 70-90 mi. range, charged in 2 hrs • Did that scare off customers? • Better battery already existed • Up to 300 mi. range • GM owned control of battery company • Then sold shares to Chevron/Texaco

  6. CARB • Zero Emissions Vehicle Mandate • By 1998, 2% of cars sold in CA = electric • By 2001: 5%, by 2003: 10% • At meeting to decide fate of mandate • Automaker reps given almost unlimited time • EV battery rep time cut from 10 to 3 minutes • Out of 78 who testified, 4 from EV side

  7. CARB Cont… • Many testified about hydrogen fuel cell advanced technology • Bait and switch? • Chair of CARB, Dr. Allan Lloyd • 4 months earlier, accepted chairman position for the CA Fuel Cell Partnership

  8. Hydrogen Fuel Cells • Alternative to electric battery, only emission is water • Joseph Romm: The Hype About Hydrogen • Technology won’t be ready until 2050 • Very expensive (currently $1 million) • Storage problem • Needs extensive infrastructure • Competing technology can’t improve (hybrids)

  9. Federal Government • Federal Gov’t (under Bush administration) joined suit against CARB • 2002 • Max fed tax credit for EV: $4,000 • Max fed tax deduction for 6,000+ lbs vehicles: $100,000 • Hummer qualified, which GM owned • In 2003 State of the Union: Bush announced $1.2 billion for hydrogen fuel cells

  10. Federal Government Cont… • Bush admin: ties to oil and auto industries • Andrew Card (Chief of Staff 2000-2006): former Pres/CEO of AAMA & chief lobbyist for GM • Dick Cheney: former CEO of Halliburton Co. • Condolezza Rice: former Board Member of Chevron Corp (10 years) • Spencer Abraham (former Energy Sec): opposed bills to raise fuel economy standards and co-authored bills to drill in Arctic National Wildlife Refuge

  11. Oil Companies • Had investment in internal combustion engines • 67% of oil used in U.S., used for transportation • U.S. – world’s leading consumer of gas (9 million barrels daily) • Oil company profits soaring from 2004-2005 • Exxon-Mobil: increased 75% • BP: increased 34% • Conoco-Phillips: increased 89%

  12. Oil Companies Cont… • Californians Against Hidden Taxes (CAHT) and Californians Against Utility Company Abuse (CAUCA) • “grassroots public organizations” • Fought against EV movement • Heavily funded by Western States Petroleum Association • Members: included Mobil, Shell, Chevron, and Arco

  13. Ethics Issues • What do you think are some of the top ethical issues here? • What is the real motivation behind lawsuit against CARB? • For Automakers • For Oil industry • For Federal Government • What conflicts of interest are present? • For Automakers • For Oil industry • For Federal Government

  14. Ethics Issues cont. • Why did GM take back the EV1’s and crush them? • Did GM do everything they could to make the EV1 successful? If not, why not? • Did CARB crumble under pressure? • Why are Hydrogen Fuel Cells “the next big thing?”

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