Electric Vehicle Sales In The US Hit All-Time High In May!

The Introduction Of The BMW i3 Helped May Set A New Plug-In Selling Standard (Above: First i3 REx Delivered To US -mine!- shown)

Note: This post was written by Jay Cole and first appeared on InsideEvs.com. The news was just too good not to share here! The times, they are a-changin!

Since the start of the ‘current generation’ of plug-in vehicles in the United States, no one month has ever failed to delivered an improved result over the year prior.  Ever. Including this month, that number is at 42 and counting.

More Than 3,100 Americans Hopped In The Front Seats Of A New Nissan LEAF

However May still caught anyone who follows the EV selling trends off guard, as what had been expected to be a solid month turned out to be the best selling month of all-time.  Any month.  Any country.
In total just over 12,000 plug-ins where sold, compared to the previous all-time high set in August of 2013 when and estimated 11,273 moved onto American’s driveways.  Compared to May of 2013, sales improved by a massive 62% when 7,454 plug-ins were sold.

Unlike August of 2013 when the Chevrolet Volt single-handed propelled the number higher (3,351), May’s record month was a combined effort from 3 automakers – Nissan, Toyota and Ford.
All three OEMs saw new record highs for their best selling plug-ins.

• Nissan LEAF – 3,117 (previous best – 2,529 – Dec 2013)
• Toyota PHV – 2,692 (previous best – 2,095 – Oct 2013)
• Ford Fusion Energi – 1,342 (previous best – 1,087 – Oct 2013)

Also adding to the totals was the BMW i3, which sold 336 copies during the month (story on that here) – the best debut month for any plug-in to date in the US.  In total 11 of the 17 mass produced plug-ins sold in America set a new yearly high.

The top five selling plug-in  manufacturers for May were:

1. Nissan – 3,117
2. Toyota – 2,841
3. Ford – 2,301
4. General Motors – 1,918
5. Tesla – 1,000*

Other plug-ins that set new all-time highs in May:

• smart ED – 206 (previous – 203, Apr 2014)
• Chevrolet Spark EV – 182 (108 – Mar 2014)
• BMW i3 – 335 (1st month)

2014 YTD Sales Chart

2014 Monthly Sales Chart For The Major Plug-In Automakers *Estimated Tesla NA Sales Numbers (Q1 Sales reported @ 6,457-3,000 Intl Delivers) *Fiat 500e data estimated for Jan/Feb

Breaking: BMW i3 Wins 2014 World Green Car And World Car Design Of The Year!

Breaking news from InsideEvs.com. The BMW i3 swept both awards it was a finalist for which were 2014 World Green Car And 2014 World Car Design Of The Year. Here's what InsideEVs had to say:

From the shortlist of finalists, a winner in both categories emerged. Here first are the shortlisted automobiles:

World Green Car
- Audi A3 Sportback g-tron (+ Audi e-gas)
- BMW i3
- Volkswagen XL1

World Car Design of the Year
- BMW i3
- Mazda3
- Mercedes-Benz C-Class

The winner, in both categories, is the BMW i3.

So, BMW can now add 2014 World Green Car and 2014 World Car Design of the Year to the list of awards the i3 has racked up.

In regards to the 2014 World Green Car award, BMW’s Dr. Ian Robertson, Member of the Board of Management of BMW AG, Sales and Marketing, stated:

“To have the BMW i3 named World Green Car of the Year is a great honor.  From the production process onwards, the BMW i3 is a truly sustainable vehicle, created with the needs of the 21st century city in mind.”

Meanwhile, the World Green Car judges offered this comment:

“Radical in looks, construction, and powertrain, the BMW i3 is one of very few clean-sheet-of-paper cars designed from the ground up for efficiency, with the different needs of the new century’s megacities in mind. From its last-kilometer navigation system to take drivers from car to destination, to the shipped-around-the-world carbon-fiber-reinforced plastic body shell without a B-pillar, the BMW i3 pushes boundaries on many fronts.”

Eligibility for World Green Car is as follows:

To be eligible for the 2014 World Green Car award, a vehicle had to be all-new, or substantially revised, in production and introduced for sale or lease to the public in quantities of at least 10 in at least one major market during the period beginning January 1, 2013 and ending May 31, 2014. Tailpipe emissions, fuel consumption, and use of a major advanced power plant technology (beyond engine componentry), aimed specifically at increasing the vehicle’s environmental responsibility, were all taken into consideration.

Moving on to the World Car Design of the Year award, BMW’s Dr. Ian Robertson commented:

“On behalf of the BMW design team, we are delighted that the BMW i3 has received the World Car Design of the Year award.  Our designers created a car that, through its design and use of sustainable materials, is an expression of the future.”

The design judges posted this statement on the i3′s selection:

“Unlike other BMW cars, the i3 has a boxy shape, which suggests roominess and efficiency. But it still retains BMW’s typical dynamism thanks to the larger diameter wheels and the very short overhangs both on front and rear. Besides that, the i3 expresses the sub-brand’s own character with using unique design features, including the black bonnet and the side window graphics that goes through the rear pillar. The interior is more surprising and attractive. It marks radical leap of car interior design, and it spreads as calm yet rich feeling as a modern living room.”

 About the World Car Awards

Now in their tenth year, the annual World Car Awards are now the number one awards program in the world based on Prime Research’s 2013 report. The awards were inaugurated in 2003, and officially launched in January 2004, to reflect the reality of the global marketplace, as well as to recognize and reward automotive excellence on an international scale. The awards are intended to complement, not compete, with existing national and regional Car of the Year programs.

State of Washington Approves BMW i3 REx For Sales Tax Exemption

A little over a month ago we learned that BMW i3 REx buyers in New Jersey wouldn't have to pay sales tax on the vehicle as the State was including it in the zero emission vehicle tax exemption. That will obviously help i3 REx sales immensely since it will likely save the average i3 REx buyer in New Jersey about $3,500. There was never a question of whether the BEV i3 would be tax exempt, since it is truly a zero emission vehicle, but the i3 REx isn't. The range extended Chevy Volt, for example is not tax exempt in NJ. The reasoning behind the i3 REx exemption is two fold. First, the i3 REx has about an 80 mile all electric range which is more than double the Volt's. This means for most buyers the i3 REx will likely be driven on electric much more than the average Volt owner drives their car on electricity. Secondly, the i3's range extender isn't as robust as the Volts. You could easily drive the Volt all the time without ever plugging it in. I don't know why you would buy a Volt and do that, but you could without any problem. The i3 REx on the other hand could not be driven like that, and it really needs to be charged and driven in electric mode most of the time.

So today we got news that Washington State followed New Jersey's lead and certified both the i3 BEV and i3 REx to get the State's zero emission tax exemption, saving i3 REx buyers in The Evergreen State a good chunk of change. In fact, most i3 REx buyers there will likely save as much as the REx option costs-$3,850!

I noticed that InsideEVs just put up a post about this and since I'm currently in Geneva covering the Geneva Motor show for them I figured I'd "borrow" Eric Loveday's post on this. Below is the full post he made for InsideEVs.com:

“We ARE smarter than California,” says Washington state representative Chad Magendanz.

BMW i3 With REx Qualifies For Sales Tax Exemption in Washington

Magendanz made that statement before and now he’s saying it again.

When Magendanz stated that previously, it was to make it know that he was urging the state of Washington to grant the BMW i3 REx sales tax exemption.  This idea was that Washington would jump in front of California, a state that seems reluctant to award EREVs due to the ICE on board.

Now, Magendanz is saying “We ARE smarter than California” again, but this time it’s to celebrate the fact that the i3 REx will be sales tax exempt in Washington.

Per the press release sent to InsideEVs:

• Dept. of Revenue reverses itself, says new electric BMW with made-in-WA parts will get tax exemption after all
• State Rep. Chad Magendanz was happy to find out that one of his prime-sponsored bills is unnecessary, now that a state agency has reversed its position on a tax exemption for electric cars.

The Issaquah Republican had been pushing legislation to clarify that electric vehicles such as the new BMW i3 qualify for a state sales tax exemption. The state Department of Revenue (DOR) told Magendanz last month that the i3 – which has carbon fiber parts made in Washington – wouldn’t qualify because of an optional gas-powered “range extender” BMW offers to consumers worried about their car running out of power. Magendanz introduced the bill to counter the department’s interpretation of the exemption law, but last week DOR informed lawmakers it had changed its mind.

“It’s a great thing when common sense prevails in government,” said Magendanz. “Unlike California, Washington is sending the message that we encourage innovative, environmentally-friendly automotive technology.”

The issue of the sales tax exemption came to Magendanz’s attention when he read that California had backed out of a deal with BMW to grant the i3 the state’s coveted “Clean Air Vehicle” white decal, which gives drivers full access to HOV lanes. California said the range extender – even though it’s optional and not permanently connected to the car – compromised the i-3’s status as a solely electric vehicle.

The i3 is expected to hit the U.S. market this spring. SGL Group in Moses Lake produced carbon fiber components for the car’s passenger compartment.

The bolded statement of “not permanently connected to the car” is clearly inaccurate when one opts for the i3 with REx.  And some of the anit-California comments are untrue too, such as the i3 not qualifying for the white sticker, which is actually does, provided its the BEV version.

Washington joins New Jersey, site of BMW’s US headquarters, in exempting the i3 REx from sales tax.

BMW i3 Places 2nd in European Car Of The Year Voting

Some say there are no moral victories and if you don't win, well, you just lose. I think that may apply to sports more than in other types of competitions, like say, the European Car Of The Year Award.

The BMW i3 finished 2nd to the Peugeot 308, and it was in fact by a substantial margin. However it is worthy of noting that the i3 did finish ahead of the Tesla Model S, which is largely considered the best electric car available. In fact, some automotive journalists say the Tesla Model S is flat out the best car available, electric or otherwise. So in this case, while I'm sure BMW had hoped to win the award, I think the consolation prize of finishing ahead of the Model S was definitely something they privately celebrated.

Autocar was the first to reveal the winner, getting the scoop on everybody. I'm actually here in Geneva now at the Geneva Motor Show covering it for InsideEVs and I didn't even know until I read what they posted! It seems Autocar may have in fact been surprised the i3 didn't win, and blamed the loss on the i3 and the Model S splitting the "electric vote". I'm not too sure I agree with there being an "electric vote" though, and the margin of victory was large enough to consider it a clear victory . However I really know very little about the voting process for this honor and perhaps Autocar knows something about this that I don't.  Here is what they had to say about the results:

“Peugeot wins ECOTY ahead of BMW i3 and Tesla Model S, which clearly split the electric vote. No quarrel with the 308, which is a very well sorted example of its kind, but still feel it’s an opportunity missed to pass over a revolution like the i3 in favour of something so very conventional.”

Here's how the voting went:

Peugeot 308: 307 votes
BMW i3: 223 votes
Tesla Model S: 216 votes
Citroen C4 Picasso: 182 votes
Mazda 3: 180 votes
Skoda Octavia: 172 votes
Mercedes Benz S-Class: 170 votes

So while the i3 didn't take home the trophy, it's clear the voters were impressed with what the i3 brings. To finish ahead of the Model S is pretty incredible, because the Model S is really an incredible car in its own right. So even without a win, this bodes very well for the i3. This is definitely an example of a worthwhile moral victory if I've ever seen one. Now we'll see if the people agree with the results. So far the demand has been very strong for the i3, but will that continue once the original pent up demand subsides and production ramps up to full volume? That's the three billion dollar question that BMW is praying for.

The action around the i3 on the show floor was very good, as it was basically surrounded with journalists all day. I was a little surprised by this because the i3 isn't "new" to the auto show circuit. It may be just launching for the public but journalists have had access to it at many of the past auto shows and by now I would have expected the buzz to have subsided a bit. Perhaps there was renewed interest because of the 2014 European Car Of  The Year competition.

Here are some more picture from Geneva:

BMW i3 Production Delays Reported

Virtually every facet of the i3's manufacturing process is different and BMW is evidently struggling to manage setbacks

According to Jay Cole over at insideevs.com i3 production is currently 50% lower than expected at this point in time. Cole's source is Manager Magazine Online, a German Publication, which states the high rejection rate of the carbon fiber parts made for the car. The article goes on to say that BMW's recent announcement that the company will be investing another 100 million euros to increase the production of carbon fiber is tied to this issue.

Manager also says BMW is only churning out 70 i3's per day which is about half of what they were hoping to be making by now. BMW began i3 production in October so they are four months in and now have over 11,000 i3's on backorder. Plus, US sales are only just beginning so it would appear that even if BMW gets the current problems solved in short order (and that's a big "if"), it will still probably take them nearly a year to catch up with demand since the orders will continue to pile up. It has long been speculated that BMW will have the capacity to make between 30,000 and 40,000 i3's per year once they are running at full production.

It seems we now have some answers to two things which were puzzling US customers recently. A couple months ago BMW announced that US i3's will not have a moonroof available. This comes long after it was announced that the i3's with Giga World and Tera World interiors get the moonroof included with the packages. To make matters worse, most of the i3's here in the US are pre-production European spec cars and they all have sunroofs. So everyone that had the opportunity to test drive an i3 got teased with seeing the moonroof that they were later told they won't be able to have. Then, a few weeks ago BMW announced the first three months of i3 US production would be limited to a "Launch Edition" version. The Launch Edition is fully loaded with every option available on the car and the most expensive Tera World interior. The only thing the customer can choose is the color (and only the metallic colors are available) and if they want the optional 20" sport wheels.

Many people speculated that is was simply a money grab and BMW knew the car would be in high demand so they could get away with making anyone that wanted one of the first i3's in the US buy one that was loaded. Now, with the recent news about production difficulty, I think it's obvious the reasons the moonroof isn't available at launch, and custom ordering isn't available for another three months, is solely because BMW is struggling to refine the manufacturing process and eliminate the problems they are currently having.

I've had the opportunity to talk with many BMW program managers over the past few years. One of the things that has always stood out to me was how on one hand they were really excited about the i3 because of how special and different everything about it is, while on the other hand they would always acknowledge how big a challenge it was going to be. Everything about the i3 is different. BMW has never made a car that required special manufacturing processes for virtually every stage of assembly. Besides the electric powertrain, most of the materials used in the car are even different. While the biggest challenge is likely working with carbon fiber on such a large scale, they are also using more aluminum on a car than they ever have and are using interior materials that they have never worked with before. Then there is the outer thermoplastic body panels which BMW has never used before which has even led to the painting process presenting challenges.

So personally I'm really not surprised by all this. The i3 is a revolutionary new car for BMW, and nobody else is making anything quite like it. Yes, there are some that will look at it and say "It's just another 80 mile electric car, big deal", or "It's nothing more than a Nissan LEAF that costs $50,000". I respect everyone's opinions, and for some people it doesn't represent any more value than a $30,000 Nissan LEAF and that's fine. However when I see the i3 I see the future of the automotive industry and I applaud BMW for taking the enormous risk of building such a radically different car, something that nobody else is attempting to build. Yes, I wish it had more range and I think BMW would have been better served if it could really deliver 100 miles of consistent real world range for most drivers, and it's clear it will not. But that's the biggest knock I can offer and it's far from a deal breaker for me. BMW will get past these initial manufacturing snafu's. The top concern at this point should be quality, which I'm sure it is. The production numbers will increase and by the end of the year I'm sure they will have everything running as smoothly as planned. The question is will the customers wait many months for their i3 to be made? I suppose the people that don't put as much weight on how special it is may not, but those that appreciate how unique the car really is will. After all, there is nothing else out there they can get that is quite like the i3.

BMW i3 Samsung Galaxy Gear App Overview Video

I'm heading off to NAIAS in a few hours to cover the show for InsideEvs and one of the things I'll be doing there is meeting Horatiu Boeriu of BMWBLOG and Samsung to review and discuss their new partnership with BMW and the BMW i3 Samsung Galaxy Gear App. The above Samsung TV video shot at CES in Las Vegas last week gives an overview of the features. Hopefully I'll get more info on the partnership at the show. You can enjoy this video for now.