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Recharge Wrap-up: Chevy Volt class action suit proposed, Tesla stock could outperform in 2015

A class action suit has been proposed against General Motors for a steering problem in the Chevrolet Volt. The plaintiffs claim that a defect can cause the steering to freeze intermittently, and that General Motors either knows or should have known about the problem. The case, filed in New Jersey, also claims that defective parts are replaced with the same or similar parts, which are also defective. The plaintiffs say that claims for the 100-plus-member class exceed $5 million. Read more at Law360 or at BigClassAction. Tesla Motors stock (TSLA) has risen after weeks of losses. It gained 5.4 percent during the week ending December 19, when it closed at $219.29 per share. Since then, it rose slightly more, closing at $222.26 on December 24. Morgan Stanley lowered its target price on Tesla stock from $320 to $290, predicting lower sales on the upcoming Model III than expected before, but still called Tesla a good long-term investment. Analysts at CNBC predicted Tesla to be the best performing stock of 2015. Read more at ETF Daily News. Oslo- and New York-based architecture firm Snohetta has designed a zero-emissions house that also charges an electric car. The ZEB Pilot House, built in Larvik, Norway, uses a solar panel on the roof to power the house, which also provides enough excess energy to charge an EV. To make the most of energy most efficiently, the house uses smart technology to use as much energy as it can once it's harvested. This means one can turn on appliances like the washing machine remotely while the sun is at the optimum angle in the sky - perhaps during mid-day when the residents are at work. The house also uses organic materials and is designed to save as much energy as possible. Read more at Wired.

GM execs fired over fraudulent India emissions testing

General Motors hadn't had a recall in India since 1995. That changed when it was discovered that certain employees were playing tricks with local emissions testing in order to ensure passing grades for engines. More than ten GM Powertrain employees in India and the US have been let go over the ensuing emissions flap, including Sam Winegarden, VP of global engine engineering, a man who has been with the company since 1969, leading development of some marquee powerplants.
According to Automotive News, an internal investigation revealed that employees "violated testing procedures," sometimes swapping specially prepared low-emissions engines during testing regimes for the Chevrolet Tavera SUV equipped with the 2.0-liter and 2.5-liter engines. Employees were also manipulating weights in order to get vehicles placed into different emissions categories. The discovery has led to GM recall the 114,000 Taveras produced over an eight-year period and halting their production and sale.
The Economic Times of India reports that the issue is due to "a faulty component." GM has developed a solution to the issue, and once it is validated in testing and approved by the Indian authorities, the recalled vehicles will be fixed at dealers and production will resume.

GM executive chief EV engineer says reducing cost of plug-in vehicles is 'huge priority'

As we know, another major automaker investing heavily in electrified vehicles is General Motors, and it's doing things much differently than rivals BMW, Ford or Nissan. The Chevrolet Volt extended-range EV is a modest seller at its $35,000 sticker price but a huge hit with owners. The Chevy Spark BEV, still in limited availability, puts smiley faces on its owners and drivers. The just-introduced Cadillac ELR, a sharp-looking, fun-driving $76,000 luxocoupe take on the Volt's EREV mechanicals, has admittedly low sales expectations. With this interesting trio in showrooms and much more in the works, the third vehicle electrification leader I collared for an interview at Detroit's North American International Auto Show (see #1 and #2) was Pam Fletcher, GM's executive chief engineer, Electrified Vehicles. ABG: Why do your EREVs need four-cylinder power to extend their range when BMW's i3 makes do with an optional 650 cc two-banger? "We designed [the Volt and the ELR] to go anywhere, any time" - Pam Fletcher PF: I get that question all the time: why not something smaller? You don't really need that much. You use the electric to its ability, then you just need to limp. But we designed those cars to go anywhere, any time, and we don't want their performance to be compromised. If you're driving through the mountains, we don't want you to be crawling up grades, or to be limited on any terrain. So it's optimized to be able to travel literally the biggest grades and mountain roads around the globe at posted speeds. Because what if you can't? Another good reason: when the engine is on, you have to run it wide open throttle, max speed, most of the time. And while we can do a lot with acoustics, and the ELR has active noise cancelation, a small-displacement, low cylinder-count engine at high speed, high load all the time isn't something you want to live with. That's how we came up with the balance we did among the key factors of performance, NVH [noise, vibration and harshness] and range. ABG: Where you go from here? Is the range-extender engine due for an update? PF: We know and love the current Volt, and there is still a lot of acclaim about it, so we think it's a good recipe. But we are heavily in the midst of engineering the next-generation car, which I think everyone will love and be excited about.