Tesla to supply batteries for Daimler E-Cell EV

Boosting its activity in electric vehicles, Daimler plans to start producing an all-electric sedan for Europe this fall that uses batteries from Tesla Motors.

Daimler is expected to launch an electric version of its entry-level line called the A-Class E-Cell at the Paris Auto Show next month, according to reports.

Daimler will start manufacturing 500 units of the A-Class E-Cell this fall in Germany for the European market, according to a company representative. The company has not yet decided whether it will be offered in the U.S., she said.

Daimler's planned EV line-up includes the Smart ForTwo Electric Drive, A-Class E-Cell, and the F-Cell fuel cell vehicle.

(Credit: Daimler AG)

The car will have a range of over 124 miles. Tesla will supply the lithium-ion battery and charger for the car, according to Daimler.

Tesla engineers purchased an A-Class in Europe and built an electric-version prototype, which helped speed up introduction of the E-Class, Tesla told The New York Times last month. Daimler invested in Tesla in 2009 and is a corporate partner.

Tesla's batteries will also appear in an electric version of the RAV-4 which Toyota plans to debut at the 2010 Los Angeles Auto Show, Toyota said on Monday. It plans to have an electric vehicle for the U.S. market in 2012.

Daimler's push into electric vehicles is being accelerated by European targets to reduce CO2 emissions from vehicles. "We won't be able to meet the target of 95 grams CO2 in 2020 without electric vehicles with batteries and fuel cells," Daimler head of research Thomas Weber told Reuters.

In the U.S., Daimler plans to offer an electric version of its mini car, the ForTwo Electric Drive, for lease starting next month. Like other automakers, Daimler is primarily targeting its electric vehicles at fleet buyers because of the higher upfront cost.

Frito-Lay snacks on electric delivery trucks

PepsiCo subsidiary Frito-Lay announced on Wednesday that it plans to add more than 176 all-electric trucks to its delivery fleet over the next year and a half.

Five all-electric trucks have been deployed for the company's New York routes this month, with plans to implement a total of 21 all-electric trucks by the end of the year that will include the company's Columbus, Ohio- and Fort Worth, Texas-area routes.

Another 155 all-electric trucks will be added to Frito-Lay's U.S. fleet by the end of 2011. The company already has six EVs operating in its Canada fleet.

The trucks are made by Smith Electric Vehicles, get up to 100 miles on a single charge, and, like any electric vehicle, are virtually silent.

"Frito-Lay launched its first EV trucks in the New York metropolitan area in part because it was given a grant from the New York State Energy Research and Development Authority."

A transition to EVs from such a high-profile company can be seen as a win for New York City Mayor Michael Bloomberg, who has been campaigning through his PlaNYC program to encourage companies and residents to go EV in an effort to reduce city air pollution, as well as fuel consumption.

It's also an odd partnership, since Frito-Lay has also been the object of indirect criticism from the mayor on a completely unrelated issue. Reducing salt in processed foods is another issue taken up by Bloomberg in an effort to arguably make the city's residents healthier. The company--so famous for its snack foods that it nabbed the domain Snacks.com--has been criticized along with other leading food manufacturers for the amount of sodium and food additives used in some of its products.

Frito-Lay estimates that once all 176 EVs are implemented, it will save the company 500,000 gallons of fuel a year.

"With the seventh-largest privately owned fleet in the U.S., Frito-Lay has set a goal of becoming the most fuel-efficient fleet in the country," the company said in a statement.