The meaning of Southern California “car culture” may be poised for a makeover, as the regions around Los Angeles, long notorious for smog, traffic congestion and endless freeways race to take on a greener profile. LA Mayor Antonio Villaraigosa announced this week at the LA Auto Show that he’s shooting to have infrastructure ready for electric vehicles in the city by next fall, upgrading or installing 500 charging stations and setting aside up to $10 million to help pay for home charger installations for the first 5,000 residential customers, as the Los Angeles Times reports.

Villaraigosa’s plan comes as part of a larger effort to attract cleantech investment and manufacturers of batteries and charging stations to the area. Countless regions around the country are engaging in similar efforts, assembling juicy incentive packages for companies like A123Systems (s AONE), V-Vehicle and Tesla Motors. But Southern California is building momentum toward a significant role in the growing EV ecosystem: the launchpad, where some of the earliest plug-in vehicle models will roll out to customers, and where many of EV-related challenges for the power grid will be figured out.

California as a whole offers an early test market for plug-in vehicles, thanks in no small part to state incentives and regulations tied to goals for reducing greenhouse gas emissions. For Southern California in particular, key figures in the push to become a green car hub include utilities Southern California Edison (a partner in Villaraigosa’s plan) and San Diego Gas & Electric (which is partnering with the Renault-Nissan Alliance and planning to install 2,300 charging units in next 1-2 years), both major players in the smart grid buildout. Back in March, President Obama stopped by SCE’s 15-year-old Edison Electric Vehicle Technical Center, which has teamed up with Ford Motor (s F) to deploy a test fleet of plug-in Ford Escape Hybrid SUVs.

On the tech innovation side, plug-in car startups Fisker Automotive, Coda Automotive and Aptera are all headquartered in SoCal. And AC Propulsion, which first developed the prototypical technology that evolved into the Tesla Roadster, calls San Dimas, 30 miles east of Los Angeles, home. When it comes to manufacturing, Tesla Motors, while based in Silicon Valley, will likely assemble its planned Model S in the Long Beach area, making use of facilities once used for the region’s aerospace industry.

But while Southern California is home to key players across the spectrum of work to produce electric vehicles for the mass market, it may be the region’s charging infrastructure efforts in coming months and years that ultimately transforms its old car culture. As Enid Joffe, president and founder of infrastructure installer Clean Fuel Connection said at this summer’s Plug-In 2009 conference in Long Beach, putting in a plug — a basic necessity for drivers to switch off gasoline — may not be rocket science, but it’s complicated by the amount of coordination that’s required.

SDG&E’s Bill Zobel told us earlier this year that when electric cars hit California in the 1990s, utilities, car dealers, the local government and drivers lacked understanding of the “requirements for an owner walking off the lot with a plug-in car.” With the next generation of EVs, he said, “We’ll be much more prepared than we were last time.”

Image courtesy of Eyeshotpictures Creative Commons Flickr.

The company that made electric vehicles cool again and dispelled the ugly golf cart stereotypes is rumored to file for an IPO very soon according to a recent Reuters report. What makes this CleanTech startup unique from say the recent A123 Systems IPO? Tesla is currently profitable! Profitability is one way to counter the IPO risks noted in this well blogged article about Goldman Sachs and their IPO business.

Tesla is on a mission to prove that Silicon Valley can do what Detroit, Tokyo and Frankfurt cannot. While some may think their Tesla Roadster (costs approx. $109k), which has a range of approximately 220 miles and Ferrari like performance, is a toy for the rich- a new Tesla Model S is in the works to dispel this theory and open the company to those with a smaller budget. The Model S will cost around $50,000, have 4 doors and appear similar to a nice Lexus, but more beautiful in my opinion. It also will not have any tailpipe emissions and will cost about $2 to power for 300 miles.

While Tesla’s automobiles are an evolutionary step as far as design, production and backing- they will nonetheless need to compete with companies like Nissan, GM, Fisker  and Ford who all have both government backing, and either an EV or Plug-in EV in the works. Along with several battery makers including A123 Systems, Ener1 and Johnson Controls, Tesla received $465MM in low cost loans from the US government to help spur development. It is interesting to ponder whether or not the market for efficient automobiles will prefer plug in electrics, pure electrics or if it is large and wealthy enough for both. Signs point to the latter as several of these planned or existing cars, including Tesla’s, have a lengthy customer waiting list.

Tesla’s investors include Google, founders Sergey Brin and Larry Page, Daimler AG, Aabar Investments, Valor Equity Partners, Technology Partners, The Westly Group, Compass Venture Partners. Tesla has also received an ‘opportunistic’ US$82.5m equity investment from a group led by Fjord Capital Management, a private equity firm which focuses exclusively on clean energy. “Daimler, which invested US$50m in Tesla earlier in 2009, along with Aabar Investments, which is also Daimler’s largest shareholder, contributed to the offering to keep its stake at just under 10%. The new money was earmarked for Tesla’s expansion of its retail store network globally.”

The IPO would be the first from a US Automaker since Ford in 1956.

1. Proof of the world’s energy insanity: scraping tar sands

2. Creative destruction: Fisker is going to build electric cars at  a former Pontiac plant. Schumpeter would love this.

Yes Men Take It to the Hill: The climate-minded Yes Men stunt group offered up another prank today, just a day after punking the Chamber of Commerce with a fake press announcement — this time showing up on Capitol Hill in Survivaball suits to hector Sen. Arlen Specter and the Senate in general for their “wishy washy” stance on climate issues. — Grist

Plug-in Car Factory News, Oh My: India-based electric car maker Reva plans to work with Bannon Automotive, a Long Island electric-car firm, to build a three-door hatchback near Syracuse and DOE-backed plug-in hybrid startup Fisker Automotive says it will announce a site for its plant “soon.” Meanwhile, startup Tesla Motors is still looking for an assembly plant for its Model S electric sedan. — NYT’s Green Inc.

Buffett’s BYD Bet Probably About the Batteries, Not the Car: Who’s going to build the world’s most popular electric car? It won’t necessarily be the automaker with the best battery, or the first model on the road. So it’s all too likely that Warren Buffett, who has made a big investment in China-based BYD, may actually be betting on the company’s future as a leading battery supplier than as a leading car company. — Business Insider’s Green Sheet

How Does Your State Measure Up?: The American Council for an Energy Efficient Economy has released its 2009 scorecard on state energy efficiency policies, programs and practices (we wrote up a preview of the report here), ranking states from best (California) to “most room for improvement” (Wyoming). — ACEEE

Climate Cooperation Bonus: Chinese President Hu Jintao has told President Obama that closer cooperation on fighting climate change could help improve overall ties between the world’s top two greenhouse gas polluters. — Reuters

Source: Newsmax

Al Gore would like for you, the American tax payer,  to pony up $529 million dollars in loans for Fisker Automotive.  This is a “green” car company that Al is involved with.  Well, maybe if it’s going to give us jobs that would be o.k., you say.  Nope, the jobs are going to FINLAND.  That’s right.  Our government is going to give over half a billion dollars to hire people in Finland to make green cars.

Well, maybe if these green cars are going to be the answer for the average joe to be able to buy a great hybrid at a low price, you say.  Nope.  The cost PER CAR will be $89,000.  $89,000!  O.k., so we are creating jobs in a foreign country so that a few rich people can buy a Karma (the name of the vehicle).  If you ask me, that’s bad karma for our country!

Why, you may ask, if this is such a terrific car, are there not investors lining up to put their venture capital into it?  That’s a good question and the answer is, they were probably not able to convince anyone to put money into the Karma.  That is why they have come calling on Uncle Sam to fund their dream. 

This is, once again, why government should not be in business.  Waste and poor decisions for what?  So that people in Finland can have jobs?  This is why ex-politicians should not be able to use their connections to tap into pork barrel spending.  Which brings me back to Al Gore. 

Al Gore has had a good decade.  I mean a really good decade.  It started out kind of rocky, I mean with him losing the election and all; but after that things just kept getting better and better.  He started out in 2001 with an estimated net worth of $1 million dollars.  Now that’s pretty good by anyone’s standards.  In 2008, however, his net worth was estimated at $100 million dollars.  Green has been very kind to Al Gore.  So, I ask the question, does the green in Al’s pocket have anything to do with the green he’s preaching?

Al Gore is fleecing the American people with the consent of the American government.  I’m tired of paying for this stuff-how about you.

I was contacted by a reader requesting more information on the government loan for one Al Gore’s venture firm companies.  I decided to post that response here.

As included in my posting a few days ago, http://enduringsense1.wordpress.com/2009/09/25/al-gore-its-all-about-money , there is an unholy alliance between taxpayer money and politicians.  The information below will connect the dots more fully in the Al Gore and government loan connection.

Al Gore became a partner in Kleiner Perkins Caufield & Byers (KPCB), joining them in 2007.  See link of article below.  I also follow with a link to more information about the government’s loan to Fisker Automotive.  Here are the connections and problems, as I see them:

1. First, KPCB brings in Al Gore in ’07 as a partner.  Why?  Not because he’s a business wiz, he has no experience.  No, they made him a partner because they properly read the tea political leaves.  The Democrats were coming back to full power and that’s where the money would be.  They were right.
2. Al Gore is supposedly a climate expert.  That and his political ties give him influence in a Democrat government.
3. KPCB puts in a relatively small investment into Fisker Automotive, as compared with the government’s investment, to grease the wheel.  Then they go for the big one, the $½ bil loan from the US government.
4. As typical in the VC world, KPCB’s early investment probably got leveraged and multiplied in relation to later investments, in this case the government’s loan.  This means if the Fisker Automotive is successful, KPCB’s investment is multiplied by the taxpayers’ investment.
5. However, in this case, and many VC investments, the venture will probably fail.  But that will not really matter to the VC’s.  They usually take huge fees form their target companies and are therefore guaranteed a win in any event.

I have no problem with most of the above since the process is part of what makes capitalism.  However, the government is not part of capitalism.  They should not be investing in businesses.  If the private sector won’t finance a venture, then the investment is not worthy of the risk.   Also, Al Gore’s government contacts make this particular investment even fishier.

The bottom line is that the taxpayers will loose in this deal.  But, not Al Gore or KPCB.  That isn’t the way capitalism is supposed to work.

Al Gore has been the darling of the Green movement ever since his movie, An Inconvenient Truth, hit the screen.  The sound bites and data that he presented put the theory of man-made global warming on the forefront of discussion in the United States.  An Inconvenient Truth also made Al Gore a wealthy man with some estimating his net worth growing from $1 million in 2000 to in excess of $100 million today.  Yes, climate change has been good to Al Gore!

While Mr. Gore and others on the Left present evidence of man-made global warming as absolute and conclusive, there are also bright people who disagree with their conclusions.  Irrespective of this, one must question Mr. Gore’s commitment to stopping man-made climate change based on his lifestyle.  Gore has been photographed traveling in limousines and a private jet, not exactly green friendly methods of transportation.  He also owns a 20-room Tennessee mansion that in 2006 consumed 221,000 kilowatt-hours of electricity, about 20 times that of the average American home.  When questioned on his lifestyle excesses that are inconsistent with his stated environmental concerns, Gore indicates that he is carbon neutral because of carbon credits or offsets he purchases.  This is a joke!

However, here is where the joke looses its humor.  Since 2000 Al Gore has become a partner of Silicon Valley venture capital firm Kleiner Perkins Caufield & Byers.  This firm is the lead investor in a company called Fisker Automotive, Inc. of Finland, an automobile startup involved with hybrid autos.  This startup plans to build an electric sports car in Finland that will sell for about $90,000 and also announced that they will build a $40,000 family sedan.  Conveniently, they have received a $529 million US government loan.

Now the story gets sinister.  Employees of Kleiner Perkins Caufield have donated more than $2.2 million to the political campaigns of Democrats including Barack Obama and Hillary Clinton.  Add to this Al Gore’s connection to the Democrat Party and you begin to understand why the US government has taken one half billion dollar of taxpayer funds and loaned it to a startup company that is yet to make one car.  Smells fishy, doesn’t it?

This outrageous story indicates why bad things happen when the government spends taxpayers’ money.  First, we have political payback for Mr. Gore and his friends at taxpayers’ expense.  Then the government invests in a risky venture in which no private investment firm would do.  To add insult to injury, after the government bails out Chrysler and buys a large chunk to General Motors, they then invest in startups to compete with their own investments.

Who thinks that the government will do better controlling the health-care system?  You got to believe in magic and the Tooth Fairy.

There are two strategies that new electric-vehicle makers commonly use to enter the market with ambitions to go mainstream: start at the high end and move lower, or aim at a niche market that requires less performance and shift to the center. While startups like Tesla Motors and Fisker Automotive have launched their businesses with high-end sports cars (with plans for cheaper vehicles in the works), companies like Myers Motors started with a three-wheeled vehicle that only carries one passenger and has a 30-mile range.

This week, Myers took a step forward in its plan to expand its market by adding another seat and a longer range. On Wednesday, Myers unveiled its second vehicle, a three-wheeled, three-headlight model that seats two, reaches 75 mph and can travel 60 miles on a single charge. The company plans to produce the as-yet-unnamed vehicle, which is technically considered a motorcycle but actually falls somewhere between a motorcycle and a car, in the fourth quarter of 2010. While it hasn’t disclosed its initial volume, Myers spokesperson Kammy Willis told us the company hopes to reach a production volume of 10,000 cars in a couple of years.

Tallmadge, Ohio-based Myers plans to offer the car (as I’ll call it for the sake of convenience) for less than $30,000, and also plans to offer an option to upgrade the range – for an as-yet-undisclosed price – to 100 miles. Myers is calling the car NMG2 for now, as a reference to its first car, NMG, which stands for “no more gas,” and the company is holding a contest to come up with the official new name. The company isn’t taking orders yet, but expects to release more details about the car and about preorders in the next few weeks.

The NMG2 highlights the baby steps startups are taking to bring electric vehicles to the mainstream. Like a number of other electric-vehicle startups, including Vista, Calif.-based Aptera Motors and Snarøya, Norway-based Think, Myers started with a city car meant for short distances and is working its way to a more general-purpose car.

Compared to the opposite approach of starting with high-end sports cars with plans to move down the market to mid-range cars — used by Tesla, Fisker and Venturi Automobiles — the niche market strategy has some advantages. For one thing, it can cost less to produce a lower performance niche vehicle, which is an important factor for startups worried about running out of money. “When you look at what major automakers put into introducing a new model, it’s hundreds of millions of dollars,” Willis said.

Tesla certainly felt that risk when the recession hit as it was trying to raise money. The company suffered layoffs before managing to raise private equity and secure a government loan.

The technology requirements for city cars are also usually lower than for sports cars, which can mean there’s less of a risk of running into some of the issues that delayed the Tesla Roadster. (The car was delayed because its motor produced too much torque for its transmission to handle, and the company had to replace the transmission with a different one.)

Myers thinks its strategy has given it time to establish itself and develop longer-range technology, and to bring prices down. “With the smaller vehicle, we developed confidence in our electric drive system and developed the battery system technology to have lithium-ion batteries for extended range,” Willis said. “Now we’ve proven [our technology] on that level, we’re ready to take the next step of meeting consumer requests for a two-passenger, longer-range vehicle.”

But the strategy also has its downsides. While Tesla has created a reputation as a car for the rich and famous, which it’s hoping will make its more affordable model more desirable – and also will likely persuade businesses to set up chargers to attract those high-end customers – companies like Myers may have a tougher time of persuading mainstream customers that it’s trustworthy. A car is one of most expensive purchases a consumer will make, and mid-range customers are looking for reliability and a full warranty. (Myers provides a one year or 12,000 mile warranty for its NMG.) Thilo Koslowski, lead automotive analyst at Gartner Research, said that green-car startups might not have enough time to build up that trust before major automakers come out with their greener offerings.

And even though Myers has had cars on the road since 2006, raising money has proven challenging. While the company scored $250,000 in seed funding from JumpStart in June, that’s hardly enough to mass produce a line of cars. The company has been funded mainly through its founder, Dana Myers, so far and is looking for more investors now. Myers, previously the president of transformer-maintenance company SD Myers, bought technology from the bankrupt Corbin Sparrow electric-motorcycle company to start Myers Motors in 2004.

In any case, the two strategies illustrate the inherent difficulties involved in making mainstream electric vehicles: Batteries are expensive, so the electric cars tend to be either more costly or lower-range than their gasoline counterparts. That’s why companies start either high (in cost) or low (in range) and move to the middle, giving themselves – and component partners – time to improve the technology and bring down the price. But it’s still unclear if or when they’ll ever get there.

The NMG2, for example, is still far from a mainstream car, Koslowski said, although it’s closer than the NMG. It has two seats, not four, for one thing. And because drivers have “range anxiety,” most of them will probably need a 100-mile range to feel comfortable using an electric car for their daily commutes, he said. Including that 100-mile extender, Koslowski estimates the NG2 would need a price tag “well below $20,000″ to attract a mainstream market – especially considering that three-wheeled cars aren’t eligible for the same tax credits as four-wheeled cars. So while Myers and other electric-car companies are cruising in the right direction, they still have a long way to go.

Just to revive your memory, Fisker Karma is the plug-in hybrid sedan from Fisker Automotive which was fist showcased at the Laguna Seca during the Pebble Beach Concours. At that point the fuel efficiency figures of the luxury plug-in hybrid were not available but now the Society of Automotive Engineers (SAE) do have the results for us. As per the SAE rating the Fisker Karma manages 67 miles per gallon which is pretty impressive.

The numbers look even better when you consider that the sedan churns 403 horsepower and sprints 0 to 60 mph in just 6 seconds. As far as the emissions are concerned the Karma is pretty neat, emitting 83 grams of CO2 per kilometer. The high efficiency numbers will not be a possibility when you intend to run the car on a performance mode, therefore a lot depends on your preferences as far as the efficiency is concerned

Photo Source: Think website

Norwegian electric carmaker Think announced on 27 Aug 2009 (see its press release) that the Norwegian courts have approved its debt settlement plan, enabling the company to exit court protection. This effectively puts Think back in business and to resume production of new electric vehicles (EVs), called TH!NK City model. (Update: On December 10th, Greentech Media reports that Th!nk is on track to deliver cars by Christmas.)

In addition, Think secured $47 million in new capital financing from new investors, namely Ener1 from the US, Valmet Automotive from Finland and Investinor, the Norwegian Government-backed investment fund.

Ener1 is the largest investors in Think and once the transaction is complete, will hold 31% equity stake of the company. Ener1 will invest about $18 million in 3 rounds and convert about $3 million in debt to shares of Think. Ener1 is the parent company of EnerDel, which supplies lithium-ion batteries to Think. EnerDel and Think have agreed to enter into a long-term battery supply agreement as part of the transaction.

Valmet Automotive will invest 3 million euros ($4.3 million) and as part of the deal, Valmet will start making TH!NK City cars in Finland this year. Think will close its Norwegian factory and lay off about 85 workers there. (Comment: Norwegian carmaker is now Finnish?) Valmet makes the Porsche Boxster, and is also to be the manufacturer of startup Fisker Automotive’s high-end Karma hybrid – another company EnerDel plans to supply batteries to.

Investinor is a Norwegian venture fund backed by the Government’s Ministry of Trade and Industry. The fund invests in Norwegian companies on strict commercial terms in return for share capital, and is investing NOK30million ($5million) in Think’s capital increase. (Comment: So why didn’t the Norwegian fund push to keep the jobs in Norway since it has higher equity share than Valmet? Hmm…)

All in all, it’s a very good news for the company which was under the threat of bankruptcy earlier this year and was forced to halt its production of EVs just 2 months after it started. Think, which had raised about $85 million in venture capital as of last year (Kleiner Perkins, RockPort Capital, General Electric are some of its investors) reported early this year that it could be facing bankruptcy. Ener1 was one of the creditors that loaned about 40 million crowns ($5.7 million) to Think in January. And new and existing investors put about 250 million crowns ($39 million) into the company in June 2009.

In March 2008, Think also signed up lithium-ion battery manufacturer A123Systems to power its vehicles. (Comment: However, there may be doubts that the deal with A123Systems will go on as there was no further developments announced since then and because of the Ener1’s deal. Furthermore, Think and Ener1 successfully tested a lithium ion battery pack in June 2008. See TH!NK Tests Battery, But Where’s A123?)

Sources:
Think: We’re Back and Ready to Make Electric Cars
Think Gets $47M, Moves Production to Finland
Is Think Still a Norwegian Car Company?
Ener1 invests in Think, EV production to resume
Metso’s Valmet to start making Think electric car

About: Since its founding in 1972, Kleiner Perkins Caufield & Byers has backed entrepreneurs in over 600 ventures, including AOL, Amazon.com, Citrix, Compaq Computer, Electronic Arts, Genentech, Genomic Health, Google, Intuit, Juniper Networks, Netscape, Lotus, Sun Microsystems, Symantec, Verisign and Xilinx. KPCB portfolio companies employ more than 250,000 people. More than 150 of the firm’s portfolio companies have gone public. Many other ventures have achieved success through mergers and acquisitions. The firm has offices in Menlo Park, California; Beijing, China; and Shanghai, China.

The firm was named after its four founding partners: Eugene Kleiner (emeritus), Tom Perkins (emeritus), Frank J. Caufield (emeritus), and Brook Byers. When the firm was formed in 1972, the founders of most venture capital firms came from financial backgrounds, however Kleiner Perkins’s founders distinguished themselves through their industry experience – Kleiner as a founder of Fairchild Semiconductor and Perkins as one of the leaders of Hewlett-Packard’s early computer hardware division. See Kleiner’s Laws here and his obituary here and here.

www.kpcb.com

Key Personnel:
The Partners are:
Brook Byers, Chi-Hua Chien, John Denniston, Amol Deshpande, John Doerr, Juliet Flint, John Gage, Bing Gordon, Al Gore, Wen Hsieh, Bill Joy, Randy Komisar, Ben Kortlang, Joseph Lacob, Ray Lane, Aileen Lee, James Li, M.D., Michael Linse, Dana Mead, Thomas Monath, M.D., David Mount, Matt Murphy, Ajit Nazre, Jordan Ormont, Daniel Oros, Jessica Owens, Ellen Pao, Ted Schlein, Beth Seidenberg, M.D., Risa Stack, Trae Vassallo.

Note: Democrat Al Gore joined as Partner in Nov 2007 while Republican Colin Powell joined as Strategic Limited Partner in July 2005.

Portfolio:
We look at specific companies related to cleantech only:
Greentech – Altarock Energy, Altra Biofuels, Amyris Biotechnologies, Ausra, Bloom Energy, Fisker Automotive, GreatPoint Energy, Hara Software, Lehigh Technologies, Lilliputian Systems, Mascoma Corporation, Miasole, RecycleBank, RPX Corporation, Silver Spring Networks, Verdiem.

News: In March 2008, KPCB announced the iFund, a $100 million venture capital investment initiative that will fund innovators developing applications, services, and components for Apple’s iPhone and iPod touch platform.

In May 2008, KPCB was raising funds for a $500 million growth-stage clean-technology fund called the Green Growth Fund. Another $700 million fund called KPCB XIII Fund will invest in greentech, IT and life sciences ventures. By October 2008, KPCB’s Green Growth Fund led a $75 million investment round into Silver Spring Networks, a leading provider of Smart Grid technology solutions. The new funding, a portion of which has been reserved for strategic partners, included returning investors Foundation Capital, JVB Properties and Northgate Capital.

Here is an interview with Ajit Nazre, a partner who also leads the firm’s India investment initiative.

See a video posted on Vodpod or here for John Doerr’s speech on greentech.

Just about a month after bidding for Opel began, with Italian automaker Fiat SpA, private equity investors and auto parts giant Magna International (s MGA) all vying to take a piece of General Motors’ (s GM) European subsidiary, the German government has tapped a Magna-led coalition as the winner. As we noted last month, the European version of GM’s Chevy Volt, the Opel Ampera, was not up for grabs in the deal — but Magna could still shift the green car landscape, and acquire some new muscle for its quest to become a major player in the plug-in car market.

Of course, Magna boasts quite a lot of heft to begin with, having 74,000 employees in 25 countries. But long term, Magna Chairman Frank Stronach aims to take Magna from its current role as a parts supplier to an expanded role as a global automaker that ranks “amongst the leaders in selling and building electric cars.” As Stronach told reporters in Ottowa today:

About two and a half years ago we made a commitment to be in the electric car business in a very serious way.

The Toronto Star reports that Stronach wants $300 million in government loans in Canada in order to start making batteries and electric cars there for global distribution within three years. Two years from now, he said, the company might bring some Opel manufacturing to Canada as well.

After Magna buys control of Opel next week from GM, Opel’s technology, distribution and manufacturing capacity could eventually become one more tool for Magna to use in that effort — but the acquisition is not without risk. If Opel doesn’t become profitable as quickly as Stronach plans, it could drag down Magna’s efforts to reinvent itself with less revenue from Detroit’s shrinking “Big Three.”

As we wrote last month, when Ford (s F) announced plans to to invest $550 million to retool an SUV and truck factory for an electric version of the Focus (built with batteries, powertrains and other components from Magna), hurdles lie ahead for Magna’s transformation, but it can look to startups for a roadmap. With Opel, Magna could follow plug-in startups Tesla Motors and Fisker Automotive in trying to take advantage of EV-friendly policies in the EU, as well as the geography and shorter average distances that Europeans drive (compared with U.S. drivers). But at least initially, Stronach has his eye on the Russian market for rapid expansion.

At least one thing is certain for the new Opel: Its cars won’t be coming to the U.S. or China anytime soon, which are important markets on the road to an affordable EV. The company has an agreement with GM and the U.S. Treasury Department preventing it initially from selling Opel cars stateside or in China, where GM (not to mention BYD Auto and a host of Chinese startups) has relative strength.

Magna’s Mila EV platform concept image credit Magna International

Just as grid parity is the holy grail for the solar industry, price parity with conventional mass-market vehicles is the holy grail for today’s plug-in car makers. Startups like Fisker Automotive, whose CEO Henrik Fisker spoke on a panel today at the Fortune Brainstorm Green conference in Southern California, as well as General Motors (s GM), are starting out with higher-end vehicles (Fisker with the $87,900 Karma and GM with the $40,000 Chevy Volt) while working to drive down costs, largely through battery technology. The way Fisker sees it, the future of cleaner cars doesn’t have to be expensive — and not just because of the batteries.

Battery packs tend to hog the spotlight when it comes to opportunities for making plug-in cars more affordable. After all, they’re the most expensive part of today’s plug-ins. Fisker, which has pledged to deliver more affordable plug-ins in as little as two years if a Department of Energy loan comes through, said the engine also represents an opportunity to cut costs. “We are putting an engine in this car that is probably more expensive than it needs to be,” he said on the panel. “In the future, they can be simpler because all they need to do is turn the generator.”

How much more expensive? About $3,000. Fisker told me after the panel that at production volumes above 100,000 units, small engines designed specifically for generators in plug-in hybrids could come down to $500 to $700, as compared with up to $4,000 today. Savings on that level wouldn’t make the difference between an $87,900 Karma and a mass-market vehicle, but it represents one more piece of the puzzle (other pieces include inverters and cabling, Fisker said).

Whether or not Fisker will have government help in assembling that puzzle will be decided within “weeks,” Fisker said, although he emphasized that the DOE funding is not in the bank and the company is not counting on it. Still, he said the startup’s concept for a lower-price model is further along than many concept cars at other companies. “We have the business plan all laid out.” They’re just waiting for the green light.

It’s no secret that the UK government wants its roads to one day serve a fleet of clean plug-in vehicles. Earlier this month we wrote about Prime Minister Gordon Brown’s pledge to launch up to three electric car pilot projects within a year, eventually building out a national network of roadside charge points and making the country a “world leader” in production of electric and hybrid cars.

Today, UK officials detailed part of a broad £250 million (about $373 million) plan to promote “ultra low-carbon transportation” over the next five years, pledging to offer up to £7,000 (about $7,450) for car buyers to put towards plug-in vehicles starting in 2011. Another £20 million ($30 million) is slated for investment in developing a charging infrastructure in cities throughout Britain.

Business Secretary Peter Mandelson and Transport Secretary Geoff Hoon announced the planned subsidies and investment today at the Knockhill Racing Circuit, where they were scheduled to drive an electric Mini E — a model BMW plans to lease in prototype to 500 U.S. drivers early next year (pictured). By 2011, the UK Department for Transport said it expects “mass introduction” of plug-in hybrid and all-electric cars.

Will mass availability of cars like the Opel Ampera (the European version of GM’s Chevy Volt), Tesla Roadster, Fisker Karma and other models slated to hit EU showrooms in the next few years translate to mass market adoption? It’s too early too tell. Factors like the price of fuel, the economy and successful deployment of all that planned infrastructure could help or hurt PM Brown’s goal. But an extra £7,000 to nudge buyers toward electric can’t hurt.

Photo courtesy Mini

Fisker Automotive is planning to release their own rival to the Chevrolet Volt and the Tesla Model S. There is currently no word on any juicy information except for it being a hybrid car and that it will be more expensive than the Chevrolet Volt ($40,000 USD) and the Tesla Model S ($50,000 USD), but less than the Karma ($87,900 USD). I’m pretty sure the Tesla Model S will beat it out though. Looks like a too little, too late situation here.

The other rival for the Volt and the Model S is Mitsubishi’s iMiEV. Clearly, it doesn’t look as good as the Model S – I’m pretty sure ashlee will agree with me there – but it should cost around $40,000 USD rivaling the cost of the Volt . The iMiEV may also be available before both the Volt and the Model S which should give it a significant head-start. The Tesla Model S still reigns supreme in my book.

[Engadget (Fisker), Crunch Gear (Mitsubishi)]

Fisker Automotive is rounding the bend on production of its first vehicle, the luxury plug-in hybrid Fisker Karma. A Department of Energy loan still hangs in the balance for a lower-cost model, but the Irvine, Calif.-based startup has just announced $85 million in new venture capital to help develop and manufacture the $87,900 Karma sports car.

Fisker said in its announcement that it remains on track to begin production by the end of this year. Given that the company doesn’t plan to build or refurbish its own factory (one of the hurdles for rival startup Tesla Motors in producing its Model S sedan) for the first generation of Karmas, Fisker may be able to move fairly quickly into production. Although Fisker has said it eventually wants to set up manufacturing in the U.S., the company has signed on Valmet Automotive to assemble the Karma in Finland, at least initially.

To be sure, challenges could still arise before the Karma makes it into showrooms, and Fisker is hardly immune to the ills of the larger auto industry. Fisker’s technology partner, Quantum Technologies (s QTWW) (developing the Karma drivetrain) is feeling the strain of plummeting demand in the auto industry, and especially General Motors (s GM), a key customer.

Kleiner Perkins and the European-American investment group Eco Drive Capital Partners joined this round, the fourth-largest in Fisker’s two years of existence. Just last month, Fisker added $3 million (to secure an exclusive supply of battery technology from Advanced Lithium Power) to the $65 million the company raised back in September. This latest round brings the company’s fundraising to some $185 million.

Lilliputian Systems, a Wilmington, Mass.-based company developing fuel cells for cell phones, laptops and other consumer electronics, has raised $28 million in venture-capital funding. Mouli Ramani, vice president of business development, told us Friday that the company plans to use the money to help integrate its fuel cells into customers’ products and to upgrade a pilot facility into a “small-volume” manufacturing plant, as well as for business development. He wouldn’t disclose the size of the planned factory, but said Lilliputian plans to hire some 100 new employees, mostly to run the factory, in the next two years.

In this capital-poor environment — the Cleantech Group reported earlier this week that first quarter venture investments fell 41 percent from the fourth quarter of 2008 — Lilliputian’s funding is the latest sign that energy-storage startups seem to be making out pretty well, especially those targeting the consumer market. During the first three months of 2009, lithium-ion battery startup Boston Power raised $55 million, lithium-ion anode technology company Nexeon raised $14 million and ReVolt Technology raised $13 million for its zinc-air battery technology. Meanwhile, Bloom Energy is reportedly near to closing a $150 million round.

Lilliputian claims its ceramic solid-oxide fuel cells deliver five to 10 times more energy, for the same size, as lithium-ion batteries and weigh 20 to 40 times less. Of course, fuel cells have been long on promises and short on products for decades, with a history of delays and missed milestones. And some fuel-cell companies are definitely suffering in the sour economic times: Medis Technologies laid off some 50 workers last month.

According to Lilliputian’s web site, the company had already raised “more than $60 million” before this round. Investors include Stata Venture Partners, Altira Group, Kleiner Perkins Caufield & Byers, Atlas Venture, Fairhaven Capital and Rockport Capital.

Fisker Automotive has a goal of setting up a group of retailers across the U.S. to sell and service their luxury plug-in hybrid cars. How many retailers? Fisker says it wants 40 locations by the end of June 2009. That’s a pretty lofty goal for any car company, let alone a new car company that just opened its doors in 2007.

Well…just yesterday, Fisker Automotive released a statement that revealed it already has 32 “award-winning retailers” in its network (if you download the PDF you can see the full list). Going over the list of charter members, it looks like 31 of the locations are in the U.S. and one is in British Columbia. Not a bad start, right?

The first of the Fiskers to hit the showroom floors will be the Fisker Karma sedan. The MSRP for the Karma, an eco-friendly, luxury, plug-in hybrid car, is expected to be $87,900. But understand that for that somewhat hefty price tag, you’re getting a hybrid car that the manufacturer claims is capable of achieving 100 miles per gallon. And if you commute less than 50 miles per day, you won’t burn any fuel at all — the Fisker Karma is fully electric up to that point.

If you’re not familiar with the Fisker Karma just yet, it’s definitely worth further investigation. There’s a lot more to it than just a unique hybrid-drive system. The company really takes the environmentally conscious-thing to the next level. Anyway, there’s no doubt that plug-in hybrids will be on U.S. roadways soon enough, and I’m sure that the idea of a 100 mpg car is exciting to a lot of drivers. Who knows? If the momentum from yesterday’s announcement continues, Fisker Automotive just might have 40 locations (or more) by the end of this month.

More Karma related stuff:
2010 Fisker Karma Review and Prices
2009 Detroit Auto Show: Fisker
How Karma Works
How Hybrid Cars Work
HowStuffWorks Videos – “K9 Karma: Triangle Pose”

Fisker Automotive, an affiliate of Quantum Fuel Systems Technologies Worldwide, Inc. (NasdaqGM: QTWW), has been named one of the most successful startups in 2008 by BusinessWeek.

Fisker, maker of a high-performance plug-in hybrid sports sedan — the Fisker Karma — was listed as the second most successful startup in terms of venture capital raised over the last four quarters in 2008 with $90.5 million. Fisker is backed by venture capital titans, Kleiner, Perkins Caufield & Byers, who participated with other investors in a Series C financing round in September 2008 that raised $65 million for the company.

According to BusinsessWeek, their researchers compiled the list of hottest new U.S. startups by “looking at deals that took place in the four most recent quarters available, from October 2007 to September 2008, based on data from the MoneyTree Report from the National Venture Capital Association and PricewaterhouseCoopers.” (See, http://finance.yahoo.com/career-work/article/106340/Most-Successful-U.S.-Startups-2008)

Henrik Fisker, CEO of Fisker Automotive, designed the “green” car company’s breakthrough eco-chic Karma to run on Quantum’s “Q-Drive” — a fully electric-powered system that offers zero-emissions, no compromise on power, and achieves 100 miles per gallon. Quantum’s Q-Drive technology will provide a base for all future derivatives from Fisker Automotive.

For more information on the Karma, visit www.qtww.com or www.fiskerautomotive.com.

About Quantum Fuel Systems Technologies Worldwide, Inc.

Quantum Fuel Systems Technologies Worldwide Inc. (NasdaqGM: QTWW), a fully integrated alternative energy company, is a leader in the development and production of advanced propulsion systems, energy storage technologies, and alternative fuel vehicles. Quantum’s portfolio of technologies includes advanced lithium-ion battery systems, electronic controls, hybrid electric drive systems, hydrogen storage and metering systems, and alternative fuel technologies that enable fuel efficient, low emission hybrid, plug-in hybrid electric, fuel cell, and alternative fuel vehicles. Quantum’s power-train engineering, system integration, vehicle manufacturing, and assembly capabilities provide fast-to-market solutions to support the production of hybrid, plug-in hybrid, hydrogen-powered hybrid, fuel cell, alternative fuel, and specialty vehicles as well as modular, transportable, hydrogen refueling stations. Quantum’s customer base includes automotive OEMs, dealer networks, fleets, aerospace industry, military and other government entities, and other strategic alliance partners. For more information, visit http://www.qtww.com.

About Fisker Automotive, Inc.

Keeping with the company’s mantra of “Simply World Class,” Fisker Automotive and its retailers will offer a customer experience second to none. All retailers will be housed in eco-friendly facilities and will offer consumers a unique personal approach, including the ability to ask questions via video conference with an expert at Fisker Automotive headquarters and flexible scheduling based on consumer availability.

Fisker Automotive is a privately owned car company with Henrik Fisker serving as the CEO. Fisker Coachbuild, LLC will be the exclusive design house for Fisker Automotive through the entire range of product development. Additional executive team members include Vic Doolan, Board Member FA & Director of Retail Development; Alan Niedzwiecki, CEO Quantum Technologies & Board Member FA; Bernhard Koehler, COO; Thomas Fritz, Director of Engineering; and production design by Alexander Klatt, formerly of BMW and Mark Clarke formerly of Porsche. This experienced team will help Fisker Automotive lead the future and redefine automotive design by creating the ultimate eco-chic car—cars that marry unparalleled style with environmental consciousness.

From internal gasoline-combustion engines to hybrid-electric to fully electric vehicles. I’m excited about the idea of never needing to spend money on gasoline; my next car will most likely be a hybrid-electric. I would only go for a plug-in electric if I decided to live in Davis forever – there are 11 charging stations conveniently sprinkled throughout the city and campus – not every city is as EV friendly.

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Without further ado, some of the hybrid electrics from the 2009 Detroit Auto Show:

1. Fisker Automotive Karma = HOT. Premium hybrids get all the looks.
2. Toyota Prius for 2010 is roomier and averages 50mpg (up from 46mpg).
3. Honda Insight (Concept) for 2010, to be priced below $20,000 to compete directly with the Toyota Prius {starting at $22,000}.
4. Mercedes BlueZero (Concept). Gas-electric, battery-electric, or hydrogen fuel-cell drivetrain. Killing two three birds with one stone.

With the exception of the Fisker Karma, they all have that darn friendly jellybean shape.

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The question remains: will GM, Ford & Chrysler will be able to price their EVs and hybrids on par with the Insight and Prius?

Venture capital firm Kleiner Perkins has reopened its $500 million Green Growth and $700 million KPCB XIII funds, reaching out to investors for extra cash to support already-backed companies through the economic downturn, peHub reports.

The firm will reportedly allow both new and previous investors, an unusual step for a firm that generally has oversubscribed funds — and a sign that (a) Kleiner Perkins expects exits to be scarce in the next several years, (b) investors are opting for more conservative plays in a time of financial turmoil, (c) university endowments and automakers, which rank among Kleiner Perkins biggest investors, are increasingly strapped for cash, or most likely (d) some combination of the above.

Boosting the Green Growth and KPCB XIII funds could be especially important for clean energy startups in the firm’s portfolio, including geothermal developer Altarock Energy, ethanol and biodiesel maker Altra Biofuels, utility-scale solar thermal company Ausra and fuel-cell maker Bloom Energy. The companies, along with KPCB-backed plug-in hybrid car startup Fisker Automotive, are working on technologies with long development cycles and massive upfront costs — characteristics that might otherwise spell doom in an extended credit squeeze.

This, my friends, is the future of the American Auto Industry.  Meet Fisker Automotive’s new baby, Karma. What’s so great about Karma? Well, you plug her in. I know it’s not a new concept. We all watched those film strips in grade school about Solar and Electric cars that go an incredible 100 yards after a 12-hour charge. This, my dears, sure as shit is new technology.

In the morning you get to your garage, unplug your car and begin your commute. If you live within 50 (FIFTY!!) miles of work, your engine won’t start. Not a drop of fuel is used during the first 50 miles. Beyond 50 miles per trip she runs like today’s standard hybrid vehicles. If you’re like me and only drive short distances, your gas savings just bought you the best vacation of your life.

The Fisker Automotive Website actually says: 

A new segment is being created within the auto industry where people can really use their power of choice. They can choose to be environmentally friendly with their car purchase without compromising on the style and luxury that they are used to. We believe in less compromise and more efficiency.

GM, Ford and Chrysler should go ahead and shit their collective pants right now. Fisker will command a portion of the market, without a doubt. But more than that Fisker’s stance is incredibly threatening to an industry that has continued fundamentally unchanged for a century. They are the catalyst for change I have been waiting for.

And let’s not forget a VERY important aspect. These cars are sexy as hell. They are fast. They perform–hell, they’ll OUTPERFORM my Stratus without an effing doubt. I knew it would happen…I just didn’t know it would be happening now.

Maybe this is what Jesus meant when he said he would be coming back…

And finally, here is a video of Karma to make y’all hard. Or moist. Or both. I know some of you get ladywood over cars.