It's Official: The 2017 BMW i3 Will Have New Battery, Moonroof Option, New Colors & More

The 2017 i3 comes with 40% more range than the current model. It's also available in a nice new color: Protonic Blue

The worst kept secret of the BMW i3 is officially no longer a "secret". BMW has formally announced that the 2017 i3 will have a new, longer range battery pack. They are indeed using the new Samsung 94 Ah battery cells that I speculated they would five months ago.

Just as I predicted the new battery pack is increasing from 21.6 kWh to 33.4 kWh, which in an increase in capacity of about 50%. However the range of the i3 BEV will only increase by 40% from 81 miles per charge to 114, which is less than i predicted. That's because BMW is now using a larger buffer (the difference between the total battery capacity and the usable capacity) and also because the car now weighs more (roughly 100 lbs more) because the new higher capacity cells weigh slightly more than the ones they replace.  The slight increase in weight will likely only have a very minor effect on performance, if any. The old battery used 60 Ah cells and had a capacity of 21.6 kWh, of which 18.8 kWh was usable. Which means BMW allowed the 87% of the capacity to be accessed. The new pack uses 94 Ah cells, has a total capacity of 33.4 kWh, and 27.2 kWh is accessible. That means only 81% of the total new battery capacity will be usable.

The reduction of usable capacity could simply mean BMW just wants to be more conservative, and with more available capacity they didn't need to squeeze every possible kWh out as they did with the much smaller 21.6 kWh pack. Or, quite possibly the new battery cells don't fare as well as the current cells do when they experience frequent deep discharges, so it's necessary to build in a larger buffer.

The new range rating for the REx model hasn't been announced yet, as it is still undergoing official EPA range testing. I have a theory about why this is so, but I'm going to wait until we get the range rating of the new REx before I elaborate. I do expect the REx to have a smaller percentage of range increase than the BEV i3 did, but I'm going to leave it at that for now. I'll dedicate a new post to this subject once the official EPA range for the new i3 REx is announced.

The new Protonic Blue will likely be a popular choice

While the increased range is the biggest news for the 2017 i3, it's not the only changes. The i3 will be available in a new color, Protonic Blue. At the same time the popular Solar orange is being discontinued. So the color options for 2017 on, will be: Fluid Black, Protonic Blue, Capparis White, Mineral Gray, Platinum Silver and Ionic Sliver.

One interesting nugget which was announced in the BMW AG press release, yet not in the US press release was the BMW i battery retrofit program:

"With the introduction of the new 94 Ah battery, BMW gives i customers the opportunity of retrofitting their purely electric BMW i3 (60 Ah) with the new 33 kWh battery as part of a high-voltage retrofit program. This program is available in selected markets. The 22 kWh batteries traded-in by customers are used to build stationary storage battery modules thus starting their second life. This effectively proves how sustainable BMW i technology is across its entire production and life cycle" 

This is very exciting news, even if it appears that initially only BEV i3 (not REx) owners will be able to upgrade their battery, and initially at least, the US market won't be able to participate. I'd be very surprised if this upgrade program isn't made available to the US market at some time in the future, but I believe the real question is what will the cost be? I would imaging the entire pack, including the thermal management system and packaging probably costs BMW somewhere between $7,500 and $10,000. If they offer a $3,500 discount for the old pack as a trade in, than the customer's cost is somewhere between $4,000 and $6,500 without adding the cost of labor for swapping the packs. So unless BMW subsidizes a big chunk of the cost it's going to be a very costly upgrade, especially considering the owner is replacing a battery that is less than three years old.

The new 94 Ah Samsung battery cells are the same physical size as the current 60 Ah cells, but they weight slightly more. 

I think that's partially why BMW of North America isn't rushing to bring the battery upgrade program here. The i3 just passed its two year anniversary here in the US, so even the earliest buyers still have a relatively new battery. I have one of the highest mileage i3s in the US, and currently have just under 50,000 miles on my car. My battery still has about 18 kWh of usable capacity, after starting with about 19 kWh. So in two years, I've recharged the vehicle about 1,200 times, driven nearly 50,000 miles and my battery has only lost about 5% of its original capacity. I'm definitely not ready to drop $5000 or so on a new battery just to add 30 or 40 miles of range.

I do expect BMW of North America to eventually offer a battery replacement program, but honestly it's just not necessary yet. I could definitely see myself buying the replacement pack in another two years, when I have about 100,000 miles on the car. I'd also be interested in buying back my old pack, once it's been refurbished into the stationary energy storage unit, and using it in my home. My solar array could charge the unit during the day, and when I come home at night I'd use the stored energy to recharge the new pack in my car. I don't know if BMW has plans to make this kind if home energy storage units, but if they did, I'm definitely interested, especially if I could reuse my old battery pack.

Atelier will be called Deca World for the North American market and will be the new base interior trim

The new Dark Walnut wood dash trim

There are also a few interior changes on the new i3. Finally (Let me repeat that!) FINALLY, the US market will be able offered the moonroof option. Much to the chagrin of i3 owners across the country (and particularly the ones in California), until now the moonroof option that was available on the i3 everywhere else in the world, wasn't available in North America. It will now be offered once the 2017 i3 begins shipping sometime in late August. There is also a new interior option being called Deca World (to go along with Mega, T\era & Tera Worlds). Deca World replaces Mega World as the base trim and is an attractive Black fabric with BMW i Blue trim. It has been available in Europe since the i3's launch, where it's called "Atelier". There's also a new dark oak wood option to go with the lighter Eucalyptus wood dash panels. Customers who order other of the two top interior trim levels (Giga or Tera World) will now be able to choose which wood trim they prefer.


             BMW's "Born To Go Further" video ad for the 2017 i3

In all it's pretty much what I expected the 2017 i3 would offer. BMW calls this kind to product refresh an LCI (Life Cycle Impulse). That's a mid generation refresh for the vehicle where they make improvements, but don't create a new vehicle. The battery upgrade is the big deal of this LCI, and will probably the biggest improvement the first generation i3 has during its lifespan, which will likely be until about 2019. I expect a totally new 2nd generation i3 to emerge about that time, along with the next generation of batteries that Samsung is still working on. These new future cells are low profile, are 125Ah with a specific energy of about 250Wh/kg. They pack about 33% more energy than the new 94 Ah cells BMW will introduce in the 2017 i3. So while 2017 brings some nice improvements for the i3, the next big leap forward in battery tech is once again only a couple years away. It's not difficult to see how similarly priced EVs will soon attain cost and utility parity with internal combustion engine vehicles. It's all about the batteries.

Can BMW Fend Off The Charge of the Tesla Model 3? Part 2

My concept 2020 BMW i5. BMW's answer to Tesla's Model 3 (shown in Moloughney Red)
Designed in conjunction with BMWBLOG

In last week's post, we looked at the impact that Tesla's Model S has had on the sales of competing vehicles in the large luxury segment in the US. That set the table for the question of whether or not the Model 3 can have equal or perhaps even greater success in the entry level, premium segment when it hits the streets sometime in the end of 2017 or early 2018. That segment has been owned by BMW's 3-Series for decades, and BMW isn't going to just give it up without a fight.

But what exactly can they do? The Model 3 has captured the imagination of the public and Tesla has received over 400,000 reservations in the first three weeks since the reservation process has opened. That staggering number has undoubtedly caused a few sleepless nights for product planners of various OEMs. In fact, if we look at theory of Diffusion of Innovations, the interest in the Model 3 would absolutely prove that the electric vehicle market has now moved beyond the innovators and early adopters, and we are now well into the early majority phase. That's good news for Tesla, but is BMW also ready to capitalize on the inevitable market shift we are witnessing?

The short answer is yes, they absolutely can. In fact they are probably positioned better than any other OEM to do so because of the tremendous investment that they have made in BMW i. They've poured billions into the i division, and it wasn't just for the i3 and i8. Lessons learned working with CFRP, aluminum and a variety of sustainable materials and manufacturing processes will be carried into future plug-ins. In fact, it's doubtful any auto manufacturer has spent more restructuring the company in preparation for the shift to electrics, than BMW has over the past seven years. However, the remarkable Model 3 reservation list probably indicates that they need to accelerate their EV programs and bring some vehicles to market a little sooner than they might have planned if they want to minimize defection from the brand. The good news for BMW is that Tesla can have a million reservations, and that won't mean they can actually make the cars fast enough to satisfy demand. In fact, every car Tesla has released so far has has been delayed, and even when they initially "launch" the vehicle, it takes them 4 to 6 months before they are making them in serious volume and the first few months of production are usually plagued with quality issues.

The Tesla's Model 3 is predicted to launch in late 2017

So even if Tesla does manage to have a few ceremonial Model 3 deliveries in late 2017 as promised, they probably won't be making them in volume much before the summer of 2018, and I highly doubt they will deliver more than 30,000 to 40,000 Model 3s before the end of 2018. By the time 2019 rolls around, Tesla will likely have any initial quality issues worked out and will be able to begin really producing the vehicle in high volume. So BMW has about three years to produce a vehicle to compete in this segment which will curb mass defection from the loyal 3-Series following, as well as keep the BMW name synonymous with innovation, performance and sustainability.

Does BMW have a vehicle in development that can compete in this class that has already been green-lighted for production? Yes they do, the 2020 i5. We've all read an assortment of i5 predictions from various "BMW insiders" ranging from it being a hydrogen fuel cell vehicle, to an EV with a range extender. If BMW is serious about competing in this space than it shouldn't be either. The i5 needs to be a long range electric vehicle, there's no need to mess around with range extenders or fuel cells. The remainder of this post is purely my thoughts and predictions on what BMW should and could do to remain a leader in the industry. I have nothing concrete to base these opinions on, and everything you read below is purely speculative.

The cornerstone of the BMW i will be the 2020 i5 which will launch in mid 2019 with the following specs:

-Five door hatchback w/seating for five
-Aluminum frame, CFRP body same as i3 & i8
-78.75 kWh battery pack, with 70kWh is usable
-EPA rated range of 245 MPC
-Capable of charging at 150kW.
-345 hp and 375 lb-ft torque. 0-62 mph in 5.0 seconds
-All wheel drive option
-Options include HUD, panoramic roof, various "BMW Driver Assistant" autonomous driving features. 


So why doesn't BMW bring the i5 to market sooner and beat Tesla to the punch? Is it because they don't think the market is ready, or they just don't believe in long range electric cars just yet? The answer to both of those questions is no. It's all about the batteries. Tesla knows this, and refused to wait for the market to bring cutting edge battery cells to them. Instead they are building what will be the largest battery factory in the world, to supply their cars with the best batteries as soon as they are available. BMW, along with the rest of the OEMs, will rely on third party suppliers for their battery cells. It's too early to tell which strategy is best, but once the Gigafactory is operational, it should provide Tesla with the advantage of having the best cells available and at a lower cost, but that has not yet been proven.

Why 2019? That's because Samsung SDI, BMW's battery partner is scheduled to bring to market their next generation lithium ion battery cell sometime in 2019. These new cells have been described by Samsung as the "Low Height Pack" cell generation because they aren't nearly as tall as the batteries currently used in the i3 which will allow for a lower seating position. However, the real progress is in the specific energy of the cells and the cost. The current i3 uses 60Ah cells that are believed to have a specific energy of 130 Wh/kg. The 2017 i3 is rumored to be using the latest Samsung SDI cells that are the same physical size as the 60Ah cells, but are 94Ah with a specific energy of about 190 Wh/kg. These new cells are going to increase the i3's range from 81 miles per charge to about 120 MPC. However that still isn't good enough for the long range Model 3 competitor that the i5 needs to be. The 2020 i5 will use Samsung's Low Height Pack cells that are estimated to be about 125Ah with a specific energy of about 250Wh/kg, nearly double the energy density of what the current i3 batteries have and cost less than the current 60Ah cells do. These cells will allow BMW to stuff a 78.75kWh battery pack in the i5 and still keep the weight under 4,000lbs.

A Samsung SDI rep holding their new "Low Height Pack" cells which won't be available until 2019. Notice the energy rating is not listed on the cell as it is on the other batteries on display. Also note the low height as compared to the 94Ah cell on the left. That 94Ah cell is rumored to be in the 2017 BMW i3, and is the same physical size as the 60Ah cell used in current i3s. 

The i5's battery pack I'm designing would consist of 14 modules, each containing 12 battery cells for a total of 168 cells. If BMW allows 90% of the pack to be available, that means 70kWh of usable energy and an EPA range of about 245 miles per charge. It will also accept up to 150kW of DC power and utilize the emerging network of 150kW DC fast chargers that, by then, will begin being funded by members of the CharIn EV association. The network will be minuscule compared to Tesla's Supercharger network, and Tesla still has a huge advantage there, but at least customers will see a path to what someday could rival the Supercharger network, which currently doesn't exist. I'm not even ruling out a partnership with Tesla, where the other OEMs pay Tesla to install 150kW CCS stations at every Supercharger location. After all, at Audi's 2014 LA Auto Show press conference, the automaker promised they would have a network of 150kW DC Fast charge stations installed and operational before they launch the 2019 e-tron Quattro. How else could they accomplish that?

The i3's battery tray

Granted, even if BMW hits the mark with the i5, the Model 3 is going to be a widely popular vehicle as long as Tesla can manage to deliver what they have promised. However, a strong competitor from BMW like what the i5 has the potential to be, can limit the number of sales the Model 3 takes from BMW in this segment. The i5 will cost more than the Model 3, starting at $49,990. However the standard i5 will be better optioned than the standard Model 3, and I believe a loaded Model 3 will end up costing around $60K anyway. Therefore the average purchase price of the two cars may only be $6,000 to $8,000 apart.

That said, the i5 isn't the only plug they'll have in 2020. By then BMW's entire array of models will offer PHEV options. They already sell the X5 40e plus the 330e, and by the end of the year will have the 740e in showrooms. Sometime in 2017 the 540e will be added to the iPerformance PHEV line. These are all very competent PHEVs, and the reviews have been very positive with regards to the driving experience they offer. The only problem I have with these cars is the AER. None of these vehicles boast an EPA range of even fifteen miles per charge, and I just don't find that acceptable in 2016. If BMW wants customers to see the value in paying more for the plug in version of any car in their line, it has to deliver an electric range that can save them a reasonable amount in fuel to offset the couple thousand dollars extra the vehicle costs, and 13 miles of electric range just doesn't do it.

BMW now calls the PHEV line that comes from their conventionally powered vehicles "iPerformance"

BMW needs to upgrade the batteries in their PHEVs to the higher density cells coming to market now, and then again in 2019. If BMW were to use the higher energy cells available later this year, the AER of their iPerformance PHEVs would jump up to about 20 miles per charge without increasing the battery's physical size or weight. Then, in 2019 when the 125Ah cells are available, they can bring the 2nd generation PHEVs to market with a boost to 30 - 40 miles of electric range. This won't satisfy the hardcore EV aficionado, but there will be plenty of people looking to buy their first plug in. These people aren't ready for a 100% electric car, and a PHEV with a respectable AER will bring them (or keep them loyal) to the brand.

The final piece of the puzzle is the 2nd generation i3. Using Samsung's Low Height pack 125Ah cells means BMW can offer a 48kWh i3 which would most likely have about a 180 mile electric range. I expect BMW to stick with the range extender option when the 2nd generation i3 is released so the choices will be the 180 mile BEV and a REx that has about 325 miles of combined range, and both versions will charge at 150kW like the i5. I also expect it to have the functionality to turn the REx on manually when the operator wishes, because BMW will have worked out the issues with CARB and the BEVx designation which is why the current i3's range extender is restricted from using the built in Hold SOC Mode that European i3 owners get to use. Expect the gen 2 i3 to be slightly larger than the current model, and I'm betting BMW will replace the rear coach doors with conventionally opening ones. They will also figure out how to add a third seat in the back. BMW will improve the drivetrain efficiency as well as add about 20 hp and 25 left of torque. 0 to 60 times for the BEV will be in the mid 6 second range.

BMW will bring the MINI Rocketman BEV to market in 2018

One last prediction. In 2018 BMW will introduce the MINI Rocketman and it will be available in pure BEV and use many of the i3's components. It will have about a 100 mile range and at launch be available only as a hardtop. However, the following model year it will also be offered in convertible trim, finally giving the EV faithful an attractive and sporty electric ragtop offering.

While BMW's i5 will be the Model 3's direct competitor, I believe it's going to take an entire portfolio of plug-ins for BMW to remain competitive in the ever expanding plug-in market. While BMW absolutely needs a flagship long distance pure EV, there is no one size fits all in the automobile industry, and the plug-in market is no exception. This is one area where BMW has a clear advantage over Tesla. By 2020, BMW will have no less than seven models with plugs in their showrooms, and most likely that number may actually be closer to ten models. If the incredible amount of reservations the Model 3 has amassed has proven anything, it's that the public is absolutely ready for compelling electric vehicle options. Tesla has captured the imagination of the world. They've proven that it can indeed be done and people want to support them for doing so. Your move BMW. 

Can BMW Fend Off The Charge of the Tesla Model 3? Part 1

Two years ago a wrote I post suggesting that Tesla and BMW would eventually face off.  That's clearly going to happen with the launch of Tesla's Model 3.

We’ve all seen upcoming products being described with buzzwords like “revolutionary” and “disruptive” that later translate into something much less successful after the public actually gets a chance to experience them. I can remember the hype leading up to the launch of Dean Kamen’s Segway back in 2001 when Amazon’s founder Jeff Bezos boldly predicted, “Cities would be built around (it).” 

While the Segway has enjoyed some success, it never really penetrated the market much beyond specialized uses, like transportation for police departments, guided tours, and theme parks. On the other side of the coin we can look at what the evolution of the cellular phone has done for communication, and what the digital camera has done for photography and the film industry. Both products revolutionized their respective industries and left titans in bankruptcy before they even saw it coming. Electric cars have the potential to do the same thing to the auto industry, and we may just be on the precipice of such an event.

For the past few years, many people have wondered which side of history Tesla Motors will be on in ten or twenty years. Will Tesla revolutionize the automobile and lead the charge to electrification, or will they be a forgotten footnote like so many other companies that have tried to do something special and failed? The auto industry is probably the toughest one to penetrate, proven by the fact that the last American automobile manufacturer to succeed was Chrysler Motors, which started in 1924. Since then, every volume auto manufacturer that started in the US has failed, except for Tesla. 

People camped out in lines many hours before the Tesla stores opened for Model 3 reservations on March 31st

It’s worth noting that Tesla has yet to turn a profit, and in fact is losing hundreds of millions of dollars every year. So they haven’t really “made it” just yet, in fact they still have a way to go. However the prospects of that happening just got much better, better than even the most optimistic Tesla analyst had even imagined. One week after opening the reservation process for Telsa’s next offering, the Model 3, Elon Musk and company had received over 325,000 reservations. By the end of the second week, reservations were at about 400,000.

Reservation holders eagerly plunked down a $1,000 (refundable) deposit to be one of the first to own the car Tesla has been talking about since their inception. This is the electric car from Tesla that is supposed to be affordable (under $30,000 after incentives), have a long range (over 200 miles per charge) can recharge quickly (at one of thousands of Supercharger stations) and is also desirable (fun, fast & stylish). Some Tesla stores had people lining up hours before the 10:00 am opening on March 31st, with hundreds of people waiting to reserve a vehicle that they hadn’t yet seen, didn’t know the exact price, or exactly when it would be available. It wasn’t until 8:30 pm that day that Tesla actually revealed the vehicle and since then reservations have continued to come in at an unrelenting pace. 

Tesla has announced the base Model 3 will start at $35,000, and Musk has said he expects the average Model 3 to sell for roughly $42,000 with options. Personally, I expect the average Model 3 sale to be closer to $50,000, because I'm sure most will want Supercharging (likely not included in the base price), plus expensive options like a larger battery, dual motors, and at least a few other optional goodies. Even if we use Elon's prediction of $42,000 per vehicle, if all of the current reservations were to convert into actual deliveries, that would add up to $16,800,000,000 in sales in just about two weeks. Of course that won’t happen, and many reservations for one reason or another won’t convert. Even if only 50% (about what I expect) actually wait it out and order the vehicle, that’s over eight billion dollars in sales in the first couple weeks. The automobile industry has never seen anything like this. It’s more like the hysteria created over the next iPhone than it is about any previous new car offering. 

  

The lines at Short Hills Mall stretched from the Tesla store all the way out into the parking lot!

I arrived at the Mall at Short Hills, in Short Hills, New Jersey at 9:30 am on the day reservations opened and was shocked to see the line stretch across half of the mall, down a corridor and out of the building. I expected a couple dozen people, but there were 200 to 300 there people at that point, a half hour before the reservation process opened up. I met a friend and current Tesla owner Michael Thwaite there, and he had just walked along the line of people waiting, asking them if they currently drive an EV or if they had owned one in the past. The results of his informal survey were that about 90% of the people waiting didn’t currently drive an EV, and the Model 3 will be their first car with a plug. 

So these weren’t hardened EV supporters; the vast majority of people there were new to electric cars, and still they were willing to wait for hours on line for a car they won’t actually get for roughly two years. So does it mean that Tesla has made it? Certainly not, they still have a lot of work in front of them. They still need to get their battery factory, the Gigafactory in Nevada open and churning out millions of battery cells. They still need to retool their Nummi plant in Fremont, California for the high production Model 3 line and then scale up like they never have before. 

A recent picture of Tesla's Gigafactory under construction outside Reno, Nevada. Photo credit: Above Reno

Many industry insiders will still say they won’t be able to do it, that this will be the challenge that Tesla cannot meet and if they fail to produce a high quality vehicle in large volume it will be their undoing. The funny thing about that is I’ve been hearing this for five years now. I’ve talked with executives from just about every major OEM, and as recent as only a few years ago nobody even gave Tesla a chance. They laughed at the Supercharger network and how Tesla would need to spend hundreds of millions to build and maintain it. Tesla now has over 3,600 Supercharger stations worldwide and expects to have over 7,000 by the end of 2017. This network is unrivaled in the industry. Every other automobile manufacturer is either hoping EV infrastructure matures, or is just mildly getting involved by subsidizing regional infrastructure projects.  However, they aren't willing to commit to own or manage the stations as Tesla does to ensure that the stations are strategically located and operational when customers need them.

The Supercharger network is only one example of something the industry has been saying Tesla can’t do. Another example is the direct sales model. While Tesla has had difficulty in some states because of archaic dealer franchise laws, they are still selling their cars throughout most of the US without issue. This is something many thought wouldn’t be possible. Then there are the sales of the Model S, Tesla’s first volume offering which has been available for a little over three years now. Many people were doubtful it could compete with the large luxury sedans it would be priced against, cars like the Mercedes S Class, the BMW 7-Series, Audi A7 and the Lexus LS. After all, these vehicles have had decades to build a following of brand loyal enthusiasts. How many people would be willing to plunk down $80,000 to $130,000 for a car from a new manufacturer with no company history, dealerships or in many cases service centers within driving distance?

Well, the Model S hasn’t just been competitive in this class, it is dominating it. Comparing 2014 and 2015 US sales in this class, Tesla had a 51% increase from 16,689 vehicles to 25,202. During that same period, sales for every single competitor in this segment were down, while the total for the entire segment remained about the same. The Model S didn’t necessarily bring new buyers to the segment; instead it took sales from the established competition already there.

Every single vehicle in the segment experienced an abrupt sales decline in 2015 while Model S sales increased by 51%

So what does this mean? First, don’t bet against Tesla. Tesla has been beating the odds all along. Despite being told they can’t do it, they just keep plugging along (pun intended), winning awards and accolades, extending their proprietary network of high-speed chargers and building a fervently loyal following. Musk has repeatedly said the Model 3 will compete head on with the BMW 3-Series. The 3-Series has been the benchmark for the entry level, premium sport sedan market for decades. It’s the king of the hill in that segment and BMW’s bread & butter. BMW sells about 100,000 of them per year in the US - and it's the only car in the class to eclipse the 100k mark per year, domestically.  Now think back to the 400,000 Model 3 reservations Tesla accepted in two weeks. Even if half of those reservations cancel, the Model 3 will not only outsell the benchmark of its class it its first year, but it will likely sell more than double its closest competitor in the segment. That's provided Tesla can scale up to meet demand of course, and while it's unlikely that they will have the capacity to make 200,000 Model 3s in the first year, they will be severely cutting into the sales of competing cars in this segment. 

If the Model 3 does to this segment what the Model S did to the competitors in its segment, the shock waves will be felt through the entire industry.  Who's to say Tesla won't do it again in the other segments? The Model 3 looks to be a formidable competitor so the only answer is for the competition to also step it up. The established OEMs must bring exciting, long range and affordable electric vehicles to market or they risk being the next Polaroid or Kodak. No, they aren't too big to fail, and yes, it can happen. It's impossible for the premium brand automakers to disregard Tesla any more; to do so would be corporate suicide. In fact, last week Daimler held their annual shareholders meeting in Berlin, and no less than four times they were asked by concerned shareholders why they didn't have an answer for Tesla.

However, before we crown Tesla the new champion of the auto industry, we need to realize the other OEMs haven't exactly been sitting on their hands for the past half a decade. They have all, to some degree or another, been working on electric vehicle programs, and they all have the resources to get up to speed quickly. BMW is probably positioned better than any other premium brand, as they have poured billions into the sub brand BMW i, which already has the BMW i3 & BMW i8. But as good as the i3 is today, it won't be good enough to compete head to head with the Model 3 in 2018 unless BMW were to triple the current range and also reduce the current cost, neither of which is likely to happen.

An artist's rendering of the rumored BMW i5

So is BMW the walking dead without an answer for the Model 3? No, not even close, but they do have a lot of work to do. Now that Musk has showed his hand they know where they need to be in 2 to 3 years. In part two of this post I'll lay out my plan for BMW, which will ensure they aren't left behind and wondering, "How'd that happen?" I'll discuss my recommendations for BMW's entire plug in strategy, from the next generation i3 to the iPerformance PHEV line. However the real weapon will be the rumored (upcoming) i5. If BMW has any chance of retaining many the customers who plan to turn in their 3-Series for the Model 3 when it's available, the i5 will be what keeps them from defecting to Tesla, and in part two I'll design the car they need to bring to market sometime in 2018 to keep them relevant in this segment.

Now realize in the time it took you to read this article Tesla has likely accepted about 100 more Model 3 reservations. Sometimes I wonder if the legacy OEMs really understand what's happening here.

BMW i3 Melts Away in House Fire

Believe it or not, this was an i3. Unlike the 328i that was also destroyed in the fire, it's difficult to tell that this pile of burnt material was once a car.

One of two things usually happens when people see an image of an electric vehicle on fire or the remnants of an electric vehicle that had been on fire. If you're an EV supporter, you probably hold your breath and grimace a bit until you can read the article to learn what caused the fire and if anyone was hurt. But for many people who are unfamiliar with electric vehicles, they likely question the safety of EVs. They don't even have to read the article; they just see "EV and fire" together and the unfortunate and uninformed speculation begins.

Luckily, since the recent electric vehicle movement began roughly 6 years ago, there have been very few cases of EV fires, and to my knowledge no one involved has suffered an injury. Other than a couple of incidents involving the defunct Fisker Karma, the causes of EV fires have been mostly a direct result of a severe impact compromising the battery pack. I don't know of any instance where an EV has caught on fire because of a systems failure with the high voltage battery pack or power electronics. In fact, as a comparison a gasoline powered vehicle has a greater chance of having a fire than an EV, statistically speaking.

You can recognize the seat frames, strands of carbon fiber and the optional rear 20" Sport wheel, but not much more

So while I usually don't like to use the words "EV and Fire" in the same story, I found this one particularly interesting and wanted to share it.  For one, I've never seen an i3 after a devastating fire incident, (these are the only pictures of an i3 after a fire that I know of) and two, because of the unique state of the car following the fire. I'd like to first say that thankfully, nobody was hurt in the fire depicted here. Also, neither the car, nor the home charging equipment, had anything to do with the fire. It was an unfortunate accident resulting from a fireworks event for a New Year's Eve celebration last year. Hours after cleaning up the debris from a neighborhood event, a trash can that had ashes from the fireworks ignited. Neighbors had gotten together for the fireworks display and the clean up. There must have been something placed in the trash that wasn't completely extinguished, and after a few hours of smoldering, it unfortunately caught on fire.

A very unfortunate scene 

It's pretty shocking to see how little is left of the i3 after the fire. The plastic body panels and CFRP Life Cell just melted away. Without the steel frame and passenger compartment used in a conventionally built car, there is practically nothing recognizable in the pile of i3 debris after the fire. However once they started cleaning up, they were able to drag the aluminum frame with the battery tray out of the garage with a tow truck. Although you can't tell from the photos, the owner, Tory Johnson told me that the aluminum frame and battery tray were still intact. Tory also said it was interesting to see that while the resin which holds the carbon fiber together had melted away, the actual strands of carbon fiber didn't melt, and were clearly visible after the fire.

The 328i next to the i3 in the garage was also destroyed by the fire, however you can still tell it was once an 328i

It's been over two years since the first i3 was delivered in Germany, and at this time there are about 40,000 i3s in customer hands. It's actually a little surprising that there hasn't been a news story or a picture shared on social media of an i3 that had been involved in a fire after a severe accident, or even one like this, that was just in the wrong place at the wrong time. At least we now know what to expect.

Even after removing the debris and cleaning up the garage floor had clumps of dried CRFP resin where the i3 had basically melted away.

First Public CCS DC Fast Charger in New Jersey Getting Action

This CCS DC Quick Charge station is located on my property at 148 Valley Road, Montclair, NJ

Back in August I posted an article that announced the opening of the first DC fast charger in the East Coast Express Charging Corridor. That station was installed in Hartford, Connecticut. The Express Charging Corridor when completed will connect Washington, DC to Boston, Massachusetts with CCS DC fast chargers, located no more than 50 miles apart, and is being funded by a joint venture between BMW, Volkswagen and ChargePoint.

About three weeks after the station in Hartford was installed, I installed one on my property in Montclair, NJ. It was the first public CCS station in the state that wasn't installed on BMW property. BMW has had a few CCS fast chargers at their North American headquarters for a few years now, as they have been testing CCS since 2012, when they were using a modified BMW ActiveE with CCS capability as a test mule for the then yet-to-be-released i3.

So far the DCQC station is getting plenty of use from i3 owners

CCS fast charge infrastructure had a slow start, frustrating many i3 owners. It was difficult to watch the Asian standard CHAdeMO stations and Tesla Superchargers continue to proliferate, while CCS stations were as rare as White Rhinos. However the pace of CCS deployment has really picked up, and with the East and West Coast Express Charging Corridors beginning to take shape, it's starting to look like CCS is finally getting some traction.

The station I installed is the smaller of the two that will be used in these corridors. I have the 24kW, CCS only DC fast charger but there is another unit that will also be deployed on many of the direct highway locations. That unit is a dual head, CCS and CHAdeMO station and is capable of delivering up to 50kW. Because of the location on my property (not situated on a highway), and the primary tenant is a restaurant where people typically spend an hour or more, the 24kW unit made more sense, and it costs a LOT less. The lower power draw will also help me to avoid or minimize demand charges from my electric provider.

The eGolf owners were very pleased when they realized the DCQC in my lot was close to the route they planned to take to Massachusetts. They only had to drive a few miles off of their route to stop by and Quick Charge

I installed the station a little over two months ago and it's definitely getting use. I've had at least a couple dozen different i3 owners stop by and use it, and I recently had an eGolf owner who was driving from Delaware to Massachusetts stop by to charge up. I was talking to them about the trip and how long it would take to stop and charge at level 2 stations and how happy there were when they saw my DCQC station pop up on the Plugshare map.

Fast charge infrastructure is monumentally important for the mass adoption of plug in cars. Tesla knew the success of the Model S, and probably even the entire company, would hinge on how quickly they could cover large swaths of the US and other key markets with Supercharger access. They have been installing them at an incredible rate, and have installed more than 500 worldwide in under 3 years.

Nissan has also done their fair share with regards to DC fast charge infrastructure and has subsidized much of the costs of hundreds of CHAdeMO installations. Personally, I'm hoping Volkswagen steps up and commits to installing even more infrastructure than the current plan in light of the current dieselgate scandal. Making a commitment to assisting the proliferation of cleaner electric cars would be a good first step in restoring public confidence at this point.

We are getting there. EV charging infrastructure, both level 2 and DC fast charge, is still really in its infancy, but we're definitely making progress in some areas of the country (mainly the coasts). I remember back to 2009 when I was driving my MINI-E and there wasn't a public charging station within a thousand miles of me. In fact, the closest one may have even been 3,000 miles away in California.  Now there are tens of thousands of them in the US. I can only imagine how things will look in another five or six years.

The Plugshare map on the left shows only CCS DC Fast charge stations on the East Coast. Just a year ago at this time there were none in this view. Within a couple of months, there will be dozens more of them as the Express Charging Corridor locations are finished. The large gap south of my restaurant (the blue dot) will hopefully be closed by year's end. The pace of CCS deployment is definitely picking up, and I believe will only continue to accelerate from here on.

i3 Owners: Be Prepared For Reduced Range

With the temperatures dipping into the 40s this week, I'm quickly reminded how much the cold effects the range of my i3. Just a couple of weeks ago I was averaging between 70 and 80 miles per charge. I'm now down in the 60s and it's only October! I figure it's a good time to remind the seasoned i3 owners - and inform newbies, what to expect in the coming fall and winter months.

It's the time of year when the leaves start turning color, when Sundays mean most televisions in the US are tuned to football games and the Holidays are just around the corner. However something even more grim than the best Halloween costume is also making its return: Reduced range for EV owners.

I think back six years ago to my first year in the MINI-E program. It was 2009 and there weren't many electric vehicles on the roads, especially outside of Southern California. About five months into the MINI-E Trial Lease program there was suddenly a rush of owners bringing the cars to their MINI dealer for service, telling them something was wrong with their cars. This occurred in late October...

Suddenly, the cars couldn't go as far as we were used to, and the range drop off seemed to happen very quickly, without notice and without reason, leaving many people to assume their car was malfunctioning, and perhaps had a bad battery. Some of the people even swore the range drop coincided with their last service visit, so there had to be something done at the dealership that caused the loss of range. I had read quite a bit about electric cars before getting mine, and knew there would be some range degradation in the cold winter months of Northern New Jersey, but I really didn't know how much the range would drop. Evidently many of the other participants were completely in the dark about what to expect once the winter months arrived. Some were so put off by the range degradation, they insisted that BMW take the car back and allow them to leave the program. I remember one particular person tell me that drop in range meant they could no longer make the round trip to work every day, so the car was of no use to him for three months of the year.

When the MINI-E program ended in 2012 I joined the BMW ActiveE lease program. By then some of the participants were aware of the effects the cold weather has on EV batteries since mainstream EVs like the Nissan LEAF and Chevy Volt had both been available for over a year. However there were still quite a few ActiveE drivers who were caught off guard by the loss of range once winter rolled around, and this became a major topic of discussion among the ActiveE discussion forums. Just as with the MINI-E drivers, many believed their car was experiencing some kind of battery problem, and couldn't believe the range would be affected so much by the cold weather.

My ActiveE wasn't immune to the cold weather either. Many owners weren't happy when the first winter rolled around. 

This issue affects all electric cars, even those with sophisticated thermal management systems. Tesla for instance, like the i3 has a state of the art thermal management system, and the Model S is just as susceptible to cold weather range degradation as any other EV. The good news for Model S owners is that the range is so great, you usually don't miss the miles you lose in the cold. However there are times you do. Last fall I had a Model S pull into the parking lot of my restaurant, the owners plugged in, came in and sat down to eat. As I usually do when an EV owner comes in, I went over to their table, welcomed them and asked about their car. They told me they were new owners, and traveling from  Upstate New York State to South Jersey. They had planned to stop at the Edison Superchargers but realized they wouldn't make it without stopping to charge. They said they were getting 250 miles per charge in the summer, but on this trip, which was all highway and temperatures were in the 30s they were only getting 185 - 200 miles on a charge. The cold effects us all...

With temperatures in the low 20's, my i3's predicted range is usually in the 50's for a fully charged battery.

Not Much Progress With Education

So here we are in 2015 and not much has changed. The US i3 launch was a year and a half ago and for many owners they are about to witness for the first time how the cold will reduce their range. I am the admin in the i3 discussion forum over at mybmwi3.com and the reduction of range in the cold is a frequently discussed topic. Just as with the MINI-E and ActiveE programs, there are people who are convinced that there is something wrong with their car. There's always the possibility there could be a problem with a particular vehicle, so I would recommend anyone concerned to take their car in for service to have it checked out. However I'm sure most everybody is going to get a clean bill of health, and at that point they are going to have to come to grips that the reduced range is due to the temperature, and learn how to live with it.

I will say I believe BMW (and most other OEMs) aren't doing an adequate job of offering educational information for new owners. It wouldn't have been too difficult or expensive to prepare an information card which would help new owners understand how temperatures can affect their range. I've had many i3 owners reach out to for information about this, many concerned they have a problem with the car. I think BMW should make a "Battery 101" information card and hand it out to all new owners at the time of delivery with their other vehicle documents. This could cover temperature issues as well as tips to help extend the life of their battery, offer advice for long term vehicle storage and offer a brief explanation on how the battery system works. I believe owners would appreciate this kind of information. It feels a little like Groundhogs Day with the same questions about range coming up every winter. There has to be a better way to prepare the customers before it becomes a problem. BMW has the educational information available, and they have posted it (see charts below) on the BMW i Circuit Forum.  However, I believe this information should be included with the car, and explained to the customer along with all other pre-delivery documents.

Charts like these would be helpful to new i3 owners. They should be included with new purchase documents and fully explained by the client advisers.

That said, there are techniques which can help offset the effects the cold weather has on the battery and improve your range. Here are some of my recommendations to help get you through the cold winter months:

Precondition: Use the precondition function as much as possible. The i3 will preheat the battery and passenger cabin off grid power, so you don't drain the battery performing these functions. By doing so, you will use less of the stored energy in the battery, which will allow that energy to be used for its main purpose, to propel the vehicle. You can set the preconditioning to begin every day at a set time so your car is ready for you when you leave in the morning. Make sure the car is plugged in to a Level 2 (240v) charging source while you precondition because a Level 1 (120v) EVSE cannot provide enough power  for preconditioning. If you use the 120v Occasional Use Cable that came with the car, you won't be 100% charged when you leave, as the preconditioning function uses more energy than the OUC can supply. To precondition properly, you need a 240V Level 2 EVSE.

*Read my detailed post on preconditioning the i3: Understanding How Preconditioning Works

Cabin heat: Limit the use of the cabin heater as much as possible. The BEV i3s are equipped with an advanced heat pump which is much more efficient than the resistance heater used for the REx i3s. However it still can use a fair amount of energy and will indeed cut into the range. If your i3 is equipped with heated seats I highly recommend using them as much as possible. By doing so you can use the cabin heater less which saves energy since the heated seats use much less energy than cabin heater; heat pump or not. If you simply dress a little warmer and use the heated seats you can really cut down on the use of the cabin heat, and this will definitely have a positive effect on your range. If you are wondering why i3s with the range extender do not have a heat pump, there are two main reasons. First and most importantly, the actual heat pump on the BEV i3 is located where the gasoline tank is on the i3 REx, so there isn't room for it. Secondly, squeezing every mile possible out of the battery isn't quite as important with the REx i3, since you can still continue driving once you exhaust your battery. With the BEV i3, those extra 3 or 4 miles the heat pump may add might make the difference in you getting home or not on a cold night. 

Properly inflated tires: Tire pressure falls as weather turns colder. Some tire experts say that for every 10 degrees of temperature drop your tires can lose 1-2 lbs of pressure. Under-inflated tires create more road friction which will reduce efficiency. Some EV drivers I know actually add four to five pounds of pressure to all of their tires before the winter months begin. Always make sure to check the recommended and maximum pressure for your tires, as proper tire pressure is different for every tire and car. 

Park inside: Whenever possible park the car in garages, especially if they are heated. If you park outside for an extended period like while you work, you should find a spot that will be in direct sunlight for as much as possible. By parking in direct sunlight you’ll have a warmer cabin and battery when you return to your car later.

Slow down: Besides preconditioning and conservative use of the cabin heater, driving a little slower is perhaps the best way to extend your range. This is true regardless of the ambient temperature, but during the winter months driving a little slower can help offset the range you lose to the cold. If you do knock off a few miles per hour on the highway, make sure to move over into the right lane so you don't hold up traffic. Also, try to accelerate slowly form a standstill. Jack-rabbit launches are definitely fun with the i3 but they do consume a lot of energy. 

Charging times increase: While you're charging, the thermal management system will also be working to warm the batteries. This takes some of the energy that would have gone directly into the battery and uses it for the thermal management system. On really cold days I've noticed it takes my car 30 to 45 minutes longer to fully charge. Knowing this you may have to adjust the delayed charging setting on the car and allow for more time before you can unplug.

Use Eco Pro Modes: The i3 has two Eco driving modes to complement the default "Comfort" driving mode; Eco Pro and Eco Pro+. Both modes reduce power supplied to the motor and energy consuming features like the cabin heater. Most features work fine in Eco Pro mode, but Eco Pro+ restricts the power so much to them that some no longer even function. Another benefit to using Eco Pro and Eco Pro+ in the winter is by reducing the power to the motor the car accelerates slower and helps to reduce the possibility of wheel spin. I definitely recommend using Eco Pro mode whenever driving on ice or snow covered roads, it definitely improves traction.  

The i3 is more than capable in cold weather. However owners need to understand, and plan for the affects that the cold has on battery performance.

Below is an interesting chart prepared by FleetCarma. It compares the effects of the cold on the fuel efficiency of an electric car and a gasoline car. It isn't i3-specific and not exactly what I'm discussing here today, but it helps to see how both gas cars as well as electric vehicles are effected by the cold. It's interesting to see that the cold affects the EV more, but the actually energy cost of the reduced efficiency is less on the EV. So while it may be a greater inconvenience for the electric car driver, the cold weather inefficiencies actually costs the gasoline car driver more money.

2016 Brings New Colors to the i3

2016 i3 color options. Wheel choices remain the same.

BMW has added three new color options for the i3 in 2016. At the same time though, they have deleted three colors, so the i3 is still available in six different colors. The pessimist may say, "It's still only available in Solar Orange, and fifty shades of grey," and while they wouldn't be entirely incorrect in saying so, I think the changes are an improvement over what was previously offered.

Fluid Black really looks great. 

The best addition in my opinion is the new Fluid Black. I had the opportunity to see a Fluid Black i3 in person earlier in the year and I was instantly sold. I believe this is going to be the top selling i3 color in 2016, and I would have ordered my car with it if it were available in 2014. So the i3 color options in 2016 will be as follows:

The original Capparis White, Ionic Silver and Solar Orange remain available. Arravani Grey, Laurel Grey and Andesite Silver have been dropped and Fluid Black, Platinum Silver and Mineral Grey have been added. You can download the 2016 i3 PDF brochure which has the color chart from this link.

Andesite Sliver (seen above) is being replaced by a new color called Platinum Silver

The changes are really not too dramatic, but do make sense. The two least popular colors, Arravani Grey and Andesite Silver have been dropped, along with the very popular Laurel Grey. Andesite Silver was replaced with what appears to be (in pictures at least) a very similar, Platinum Silver. Arravani and Laurel Grey have been replaced with a single grey color option called Mineral Grey. From the pictures, it looks like it's a combination of the two previously offered grey colors. It's lighter than Laurel Grey was, closer to what Arravani Grey looked like, but it's metallic like Laurel Grey.  

Laurel Grey looked black in certain conditions. This picture is of me on my delivery day back in 2014.

These changes to the grey offerings make total sense, especially when you consider that there is a black paint option now.  Laurel Grey was very dark, and even looked like it was black if you were standing at a distance, or if it was parked in the shade. I believe that the Fluid Black color would decimate sales of Laurel Grey because it would be so close. By combining Arravani and Laurel Grey, and offering a lighter colored, metallic grey which is clearly different than Fluid Black, there is enough color separation for both colors to coexist.   

Arravani Grey (or Battleship Grey as I called it!) will no longer be offered.

One of the things I like about the new Fluid Black is that the car is monochromatic with it. I'm not totally against the i3 having a black hood as an accent for certain colors. In fact, I think it looks great with Capparis White and Solar Orange in particular, but I also think that the i3 looks good in certain colors without the black accent, or "Black Belt", as BMW calls it. I wrapped my car red the first week I got it because I wanted a color that popped and also wanted to see how it would look in all one color without the black hood. I'm happy I did so and have had many people ask me about it. I think the bright red really gives the i3 a more aggressive look, something I know that many i3 owners would like.

My red wrapped i3 next to an Andesite Silver one. 

When I was first told that BMW was considering new color options for 2016 I (somewhat) jokingly asked if "Moloughney Red" would be offered sometime in the future. The BMW product manager quickly responded "Don't hold your breath, Tom" - with a smile. I may be partial, but I think it would go over pretty well if it were offered, what do you think?

VW: Das-eption and the path to Redemption

Volkswagen CEO Martin Winterkorn resigned on Wednesday.

While this blog's primary focus is the BMW i3, I occasionally sprinkle in some featured EV products and discuss topics not necessarily i3-centric, but are instead just general electric vehicle information. In light of the recent revelations that Volkswagen has been deliberately cheating on emissions testing for many years now, I wrote the following article for Green Car Reports.

So far, no other automaker has been caught as VW has - with proof that they purposely installed a "defeat device" on the vehicles so the cars would curb their emissions only during actual emission testing. However it's fair game to speculate if other OEMs may also be exposed as cheaters now that the EPA knows what they have to look for, and how to expose it. It will certainly be interesting to watch this all unfold.

In any event, Volkswagen is going to face huge fines for intentionally violating Federal emission standards and I wanted to offer my thoughts on how I believe some of that money should be used. If we don't use at least a portion of that money to help reverse the damage done by these heavily polluting "clean diesels", I believe we will have missed a great opportunity to improve the quality of air we all breathe.

 How VW Can Atone For Diesel Deception: Electric-Car Advocate's Thoughts

The full impact of Volkswagen's diesel-emission cheating scandal has yet to be realized, but what it has apparently already admitted to doing could result in the largest civil fine ever levied by the Federal government on an automaker. And that's just the beginning.

Besides paying civil penalties, and coping with a spate of criminal actions, and class-action lawsuits, and investigations by multiple levels of government, VW also needs to deal with the 482,000 cars it sold--plus more in limbo at dealers--that clearly do not comply with emission laws.

In real-world use, these vehicles emit 10 to 35 times the allowable legal limit of certain pollutants, so they're not just slightly out of compliance. They will need to be modified to comply, or VW will have to buy them back. And if owners don't like the modified cars, they'll likely have to buy those cars back too.
After all that, VW has to figure out how to regain the trust of the public.

There are lots of aspects to this debacle, and all will undoubtedly be discussed ad nauseam over the coming weeks. But the aspect I find most interesting is how Volkswagen can best right the wrongs it has done. How does paying fines, settling lawsuits, and bringing highly-polluting vehicles into compliance really undo the damage done? It doesn't. All it does is punish Volkswagen. And I believe the public deserves more.

Make no mistake: If VW is guilty as charged, it absolutely deserves to be punished--and severely.

It turns out they aren't as clean as we were told - not nearly, actually.

But I hope the Justice Department also considers what can be done to offset the damage to air quality created by the offending so-called "clean diesels." And I hope VW, separately, does the same. We've seen penalty estimates as high as $18 billion dollars (the maximum allowed of $37,500 per vehicle for intentionally violating the Clean Air Act. I doubt the actual penalty will be anywhere close to that, but it will likely be in the billions. I think it's not unreasonable to expect the fine to be somewhere around $2.5 billion, or about $5,000 per non-compliant vehicle sold.

Why not use a portion of that civil fine to invest in a nationwide DC Fast Charge network for electric vehicles?

If just half of a $2.5 billion fine were dedicated to this purpose, we could blanket the majority of Interstate highways and major high-traffic corridors with DC fast chargers that would make switching from gasoline and diesel cars to zero-emission electric vehicles a much easier decision for many buyers. Here's why I believe that is what should be done. Helping to advance the proliferation of cleaner electric vehicles would, over time, more than reverse the emissions damage that has been done, and further improve the quality of air we breathe, instead of just punishing the offender. And shouldn't that really be the goal here?

A second thought: As well as using the fine to build out a national DC fast-charging network, how about Volkswagen getting out in front of this crisis itself and telling us how it will do its part to help clean the air it polluted?

BMW, Volkswagen and ChargePoint teamed up to create "Express Charging Corridors" on the East and West coasts. While it's a good start, much more fast charge infrastructure is needed to allow the average electric car of today to be a viable choice for long distance driving.

Rather than just declaring that it will be a leader in electric mobility, as the company has done before, show us the proof that it's serious about how it plans to expand its zero-emission vehicle offerings? VW Group could combine that with a generous investment in public charging infrastructure, on a much greater scale than last December's partnership with BMW and ChargePoint to install approximately 100 DC fast chargers.

That program in just now starting to get under way, but it's really only the beginning of what's needed. VW should commit to expanding it to 400 or 500 stations, including high-volume corridors not only on the East and West coasts but across the country--essentially following the Tesla Supercharger road map.

Tesla North American Supercharger map.

Yet another idea to consider: Give the owners of the affected vehicles the option to replace their car with a new electric Volkswagen e-Golf. Some current Volkswagen TDI diesel owners have said they now feel guilty for having driven their diesel for the past few years, with a main reason for their purchase having been both fuel economy and because it was a "clean" diesel.

Offering those owners the option to return the polluting car for a much cleaner Volkswagen could demonstrate that VW understands and is concerned with its customers' desire to drive clean cars. Many owners won't take advantage of such an offer--diesel partisans can be just as committed to their technology as electric-car advocates--but the offer would send a powerful signal about the company's intent. I believe these are the sort of things Volkswagen must consider if it wants to convince the public it is serious about making proper restitution for this egregious deception.

How about offering eGolfs to the customers that don't want their dirty diesel anymore?

There are plenty of ways to make some good come out of this shameful episode. No matter how you slice it, it will be very painful for Volkswagen AG. How well or poorly the company manages this crisis will  have a lingering effect for years to come, even decades.

It appears VW intentionally deceived both the American consumer and the U.S. government, and put public health at risk, by knowingly planning and executing a fraud. To me, and I think to many others, that's much worse than a carmaker trying to delay or prevent a vehicle recall.

But Americans are forgiving people, and sin followed by redemption is a part of our national myth. As long as we believe the offender is genuinely remorseful for what it did, and is taking steps to prove it hase learned from the offense, recovery is possible--perhaps even lauded and held up as a shining example of redemption.

Now that we've found out the real truth in German engineering, the ball has moved into VW's court to decide on what it can do to begin to offset the damage it has done to itself, its customers, and the environment.
Let's hope Volkswagen is smart enough to make the right decisions.

*Edit: BMW released a statement regarding the recent discussion of diesel engines and emission compliance. You can read it HERE.