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GE Plans Biggest Electric-Vehicle Order in 'Huge' Industry Step
2010-10-28 23:16:46.32 GMT
By Rachel Layne and Alan Ohnsman
Oct. 29 (Bloomberg) -- General Electric Co. may jump-start
the electric-vehicle industry with an order that Chief Executive
Officer Jeffrey Immelt said will be the largest in history.
GE, whose power-generation equipment provides a third of
the world's electricity, will order "tens of thousands" of the
vehicles in about a week, Immelt said yesterday in a speech in
London, without giving a total or identifying a manufacturer.
"This is a huge step up," said Brett Smith, a vehicle
technology analyst at the Center for Automotive Research in Ann
Arbor, Michigan. "It's the biggest order to date I'm aware of,
by a lot."
Expanding the world's fleet of electric vehicles would
bolster GE as it expands so-called clean-energy technology such
as car chargers, solar panels and wind turbines. For every
dollar of electric-vehicle sales, GE estimates it may get 10
cents in revenue, said Gary Sheffer, a spokesman.
Immelt said half of GE's sales force of about 45,000 will
drive electric vehicles. The Fairfield, Connecticut-based
company also has a vehicle-leasing division through its GE
Capital finance unit. Financial terms and other details about
the order aren't yet being disclosed, GE said.
GE is investing $10 billion over the next five years in
clean energy across its business lines, including power-
transmission software and so-called smart-grid technologies. Its
products include lithium-ion batteries for cars and trucks via a
venture with A123 Systems Inc. and sodium-based batteries for
use in large vehicles such as locomotives.
Creating Jobs
That spending creates jobs, Immelt told executives at an
event sponsored by the University of Cambridge's Programme for
Sustainability Leadership.
"GE has been one of the biggest players in this game and
certainly has a lot to gain from the electric vehicle," Smith
said. "They've really truly tried to push this hard to get
things going, and it seems to be a core corporate value."
An order the size of GE's probably would come from several
vehicle makers, Smith said.
Automakers preparing to sell vehicles powered solely by
batteries over the next 18 months include Nissan Motor Co.,
which starts delivering Leaf hatchbacks late this year; Ford
Motor Co., readying electric versions of its Transit Connect
delivery van and Focus compact car; and Toyota Motor Corp.,
which will sell a rechargeable RAV4 sport-utility vehicle.
General Motors Co. begins delivering plug-in Volt hybrids
this year, and Honda Motor Co., Chrysler LLC, Bayerische Motoren
Werke AG and other large brands are preparing battery vehicles
due by 2012.
Global Outlook
Combined deliveries of hybrids, such as Toyota's Prius, and
battery-powered cars may reach 5.2 million by 2020, according to
an Oct. 27 forecast by J.D. Power & Associates. That would be
about 7.3 percent of the projected global vehicle market.
Immelt used his remarks in London to renew his call for
increased private spending on renewable-energy investments.
"Now is exactly the time, because it's less popular, where
we have to invest more," Immelt said. "We have to do it more
courageously. And we're going to have to go forward for a while
without government at our backs."
GE Energy Infrastructure is the company's biggest
industrial unit, accounting for $37 billion of the parent
company's $157 billion in revenue last year.
GE is the largest shareholder for Watertown, Massachusetts-
based A123, which has signed agreements with Navistar
International Corp. and Fisker Automotive Inc. to supply
advanced batteries for their vehicles.
For Related News and Information:
Top GE stories: GE US <Equity> TCNI TOPWW <GO>
GE earnings matrix: GE US <Equity> EM11 <GO>
GE dividend history: GE US <Equity> DVD <GO>
GE employee data: GE US <Equity> FA 10 <GO>
GE business units: GE US <Equity> PGEO <GO>
--With assistance from Howard Mustoe in London. Editors: Ed
Dufner, Margot Slade
To contact the reporters on this story:
Rachel Layne in Boston at +1-617-210-4634 or
rlayne@bloomberg.net;
Alan Ohnsman in Los Angeles at +1-323-782-4236 or
aohnsman@bloomberg.net
To contact the editor responsible for this story:
Ed Dufner at +1-214-954-9453 or
edufner@bloomberg.net
