Honda Bought Zero Emission Credits from Tesla

· · 4 years ago

Although Tesla hasn’t managed to turn a profit, the company did manage to reduce its losses by selling $13.8 million worth of “zero-emission vehicle” credits to Honda. Sale of the credits was revealed in a Tesla public filing related to its anticipated initial public offering.

In 2008, California set new standards for its zero-emission vehicle program—requiring Honda, Toyota, GM, Ford and Nissan to sell more than 60,000 plug-in hybrids or pure electric cars over a three-year period. Companies failing to comply face fines and potential sales restrictions in California.

Honda consistently ranks as the most fuel-efficiency carmaker in the U.S., and leases a handful of hydrogen fuel-cell cars—but that doesn’t help the company satisfy the California ZEV mandate. “Having these credits gives us some flexibility for the future,” said Robert Bienenfeld, Honda’s U.S. senior manager for environment and energy strategy.

Honda produced the EV Plus from 1997 to 1999, as part of California’s ZEV requirements. The company has no announced plans for a future pure electric car or plug-in hybrid. The credits are equal to 368 cars. The company contracted for additional credits worth 287 cars.

Photo: Honda EV Plus

Comments

· · 4 years ago

Good find Brad. I was wondering whether anyone was going to actually capitalize on this. You may recall that Phoenix Motorcars wanted to use this as a means of subsidizing their first Electric Trucks. They've kind of gone silent after their bankruptcy but I was wondering about the idea.

· · 4 years ago

Ex Man - Yep, I was just thinking about Phoenix, which seems to be a front-runner such a short time ago. But apparently, much of their business was based on selling the credits. Not a solid business plan.

· · 4 years ago

I was just now thinking the same question "Where is Honda plug-ins?" There is no announcements. Strange.

· Rocky (not verified) · 3 years ago

I too was wondering the same thing. You would think that someone would be all over this. I was also wondering if California's new emission standards covered all types of vehicles including handicapped vans, trucks, and suvs.

· · 3 years ago

Rocky,

Honda has been late to the game but doe plan on selling an electric version of the Fit in 2012: http://www.plugincars.com/honda-fit-ev

· Rocky (not verified) · 3 years ago

Thanks Tom. I will have to check it out!

· Croy (not verified) · 2 years ago

This is actually really interesting to know because I remember when electric cars were first introduced and talked about. I had no idea Honda actually created and produced one. This surprises me because the only type of cars I have ever owned were Honda's, because I never had any problems getting honda parts when something went wrong. They also get excellent gas mileage. I really hope they do come out with an electric car again sometime soon, I currently own an Insight and absolutely love it because it gets such great gas mileage, due to the fact that is is a hybrid.

· James Smith (not verified) · 2 years ago

FAQ for all Honda logical development of the ZEV policy assisted the car maker create a positive mind-set toward the control.Carmakers seem to be tolerant of the new regulations. Whether it’s to reduce airborne pollutants, cut greenhouse-gas emissions, or wean Americans from foreign oil, it seems that this time around—like it or not—ZEVs are here to stay.

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