Black October over for US automakers - What's next?

October was scary, but is the worst over?

So, October was a pretty scary month for US automakers, and it now appears inevitable that the Big 3 will become the Big 2. But, is that is bad as it gets? Is the worst over?

Finish: Black October over - What's next for US automakers?

Large hybrid SUVs are done

The Dodge Durango hybrid

Chrysler is shutting down the plant that makes both the Chrysler Aspen and the Dodge Durango according to USA Today, although there is still the possibility that these vehicles, including the hybrid versions, could be produced elsewhere. Still, sales of both vehicles have been dropping drastically the last few years and there seems little reason to believe that hybrid versions of these vehicles would help much.

Likewise, GM is also canceling several large SUV hybrid vehicles.

Chrysler's EVs as developed as Chevy Volt?

A Dodge plug-in concept at NAIAS 2007

Has Chrysler killed Chevy Volt hype?

Since the Volt debut in 2007, GM has reiterated over and over how they were accomplishing something almost inconceivable. Concept to reality in little more than 3 years. And, not just your standard concept. A range extended electric vehicle.

Yet, all the while, Chrysler has been quietly keeping pace.

Finish: Chrysler's EVs as developed as Chevy Volt?

Chrysler ready to go hybrid in 2010

A wrangler plug-in vehicle

Behind the Wheel has a great piece this morning on Chrysler's new plug-in vehicles. Yesterday, Phil LeBeau was able to drive a couple of Chrysler plug-in prototypes, such as the Jeep Wrangler plug-in hybrid that functions very much like GM's Chevy Volt. LeBeau was also able to test drive the Dodge EV sports car, an all electric vehicle that left LeBeau impressed.

Even more surprising, Chrysler intends to roll out some of these vehicles by 2010.

Check it out. There is supposed to be a link to view all these test drives, but it wasn't working when I made this post.

Press driving hybrid future at Chrysler

Stealing Press from Toyota might be Chrysler's smartest move so far

"Every car will be impacted by advances in power-train," Chrysler's Jim Press said in an interview with The News. "Plug-in hybrid, diesel hybrid, fuel-cell hybrid, a petrol hybrid they're all in the mix."

Press didn't provide a timeline for the above changes, but he did indicate that Chrysler was accelerating its efforts towards this new hybrid vehicles vision.

Chrysler's new hybrid unit - Envi

Will create a hybrid vehicle from scratch

Chrysler has created a new division called Envi, focused on electric drives and advanced-propulsion technologies. For its first task, Envi will focus on hybrid vehicles, creating a new unique hybrid, such as the Toyota Prius.

"The creation of Envi allows us to focus on the development of a new generation of environmentally responsible Chrysler, Jeep and Dodge vehicles," said Robert Nardelli, Chrysler's chairman and CEO, in a company announcement. "Under Lou's leadership, Envi will develop electric-propulsion vehicles that will provide customers with more fuel-efficient vehicle options."

"Envi will operate as a 'start-up' with an entrepreneurial environment," said Thomas LaSorda, Chrysler president, in a corporate announcement. "The organization is empowered to leverage the vast resources within Chrysler to develop appropriate solutions quickly."

Can Press give Chrysler some kaizen?

Not enough: Hybrid SUVs?

Now that Jim Press has left Toyota to become the Vice Chairmen and President of Chrysler, I have some hope that Press can bring some kaizen, or a constant strive towards efficiency, to Chrysler.

Press witnessed the birth of Toyota's hybrid cars, and he has been a huge advocate of the Toyota Prius. Let's hope Press can help Chrysler realize that SUVs and trucks cannot be the sole source of Chrysler's future success, even if they are hybrid SUVs, such as the Aspen hybrid pictured above.

Wanna make a big move Mr. Press? Make Chrysler the first U.S. automaker to mass produce a hybrid car that compares with the Prius.

Advanced powertrains the key to Chryslers future

Is the Aspen hybrid good for Chrysler's future?

Last week Chrysler released a press release announcing how advanced powertrains would play an "essential role" in the new Chrysler's ability to meet customer expectations for "quality, performance, and fuel economy".

Flex fuel, clean diesel, and hybrid vehicles were touted, which is good. Yet, all of these new powertrains are almost exclusively focused upon Chrysler's biggest vehicles, such as 5.7 liter Hemis.

Finish: Chrysler's Advanced Powertrain Moves

Finally, Chrysler hybrids confirmed

Push towards fuel economy

Well, I was right.

According to Reuters Chrysler has now confirmed that "it would roll out new hybrid vehicles, streamline its cars and trucks and introduce more diesel engines in a bid to improve the fuel economy of its product line-up."

Chrysler's 2008 hybrid vehicles, much like GM, will probably focus on large SUVs - an ideal platform for the dual mode hybrid powertrain that the two automakers developed together. Thus far, Chrysler has confirmed the Dodge Durango hybrid and the Aspen hybrid.

Bill Clinton helping cities go green

Clinton proving that going green isn't just about the environment, it's about money

"Climate change is a global problem that requires local action," said former U.S. President Bill Clinton. "The businesses, banks and cities partnering with my foundation are addressing the issue of global warming because it's the right thing to do, but also because it's good for their bottom line. They're going to save money, make money, create jobs and have a tremendous collective impact on climate change all at once. I'm proud of them for showing leadership on the critical issue of climate change and I thank them for their commitment to this new initiative."

Investing in green technology really doesn't have to be some sort of hippy, tree-hugging endeavour. Ultimately, investing in green technology is an investment in efficiency, and inevitably, efficiency saves money.

Kinda makes me wish Bill would have used his foundation to buy Chrysler.

Hybrid superiority: GM versus Toyota

Michelle Krebs says two modes are better than one, but where is her proof?

Recently, GM sponsored an event for a few journalists to check out their new Tahoe hybrid. More important, it was a chance for journalists to check out the new hybrid powertrain that was co-developed by GM, Chrysler and BMW - a collaboration which Krebs calls "unprecedented" (read more from Krebs).

Additionally, Krebs insists that the two-mode hybrid is superior to, for example, Toyota's single mode hybrid powertrain because it has a bigger "toolbox" to control fuel efficiency optimization. As a result, the two-mode hybrid achieves about a 25 percent overall improvement in fuel economy.

Talk, talk, talk.

I say, settle down Mrs. Krebs. First, a 25 percent improvement in fuel economy is in the same league as other hybrid cars. Second, while the two-mode hybrid ...(Finish GM's hybrids better than Toyota?)

American hybrids: SUVs only?

I'm glad it's NOT powered by a Hemi

Toyota has received an incredible amount of green buzz because of the Toyota Prius. While some argue that Toyota isn't deserving of all this praise because they still make far more gas guzzlers than hybrid cars, Toyota definitely made a statement about the future with the Prius.

On the other hand, if Toyota had made its first hybrid a more power-focused hybrid, such as the Lexus RX 400h, then Toyota's hybrid efforts would have been largely ignored.

Yet, power hybrids are all that seem to be coming out of Detroit, except for the Ford Escape hybrid. Chrysler's first hybrids will include huge Hemi engines. GM's first dual mode hybrids will be large, powerful gas guzzlers, such as the GMC Yukon hybrid. Yes, these hybrids will offer significant improvements in fuel economy, but they will still use a lot of fuel.

While I realize that the big truck segment is very important to Detroit, are these hybrids going to change Detroit's image? I doubt it. Without a Prius contender I just don't see Detroit's hybrid efforts offering much help to U.S. automakers until at least the Chevy Volt - and that's just too far into the future.

Chrysler's gas-guzzling hybrids?

Chrysler adds Aspen to hybrid lineup

Move over Durango, here comes the Aspen. In addition to the Dodge Durango hybrid, Chrylser has announced that the 2008 Aspen will also be available as a hybrid.

Overall, Chrysler claims that both hybrid vehicles will offer a 25 percent overall increase in fuel economy. In city driving, however, both hybrids could achieve as much as a 40 percent increase in fuel efficiency.

While that's great news for SUV fans whom want to increase their fuel economy, how long do car fans have to wait for a U.S.-manufactured Toyota Prius contender?

Maybe Virgin should buy Chrysler

If he can take on NASA, he can certainly take on Detroit

While watching the news this morning and learning that Toyota is now the world's top auto seller, I couldn't help but wonder why there isn't more innovative leadership coming out of corporate America - more corporate mavericks.

As I was contemplating this lack of out-of-the-box thinking, CNBC featured a segment on Richard Branson's drive to green the airline industry, and I thought maybe Virgin should buy Chyrsler.

Chrysler plug-in update

A plug-in diesel hybrid to be included

DaimlerChrysler will include the 2007 Dodge Sprinter in its recently announced plug-in hybrid test program in the U.S. In addition to the new platform, the concept program will also include diesel plug-in hybrids. Currently, the Sprinter plug-in can achieve around 20 miles on electric power only using next generation lithium-ion batteries.

While its nice to see this plug-in program evolving, how about some hybrid vehicles today?

SUV interest increasing?

The Saturn Vue hybrid is just too mild for my tastes

According to Cars.com, there is an uptick in consumer interest for SUVs. Ironically, however, fuel efficiency is more important than safety for consumers interested in purchasing a new vehicle, but the most important point is price, notes the same study. Consequently, I wonder is fuel efficiency less important for those interested in an SUV compared to other vehicles?

It seems that must be the case.

Obviously, it appears SUV fans are a die hard bunch, still they must also have fuel efficiency concerns. So, why isn't GM or Chrysler trying to attract any of these die hards with their dual mode hybrid powertrain?

Finish, Where are GM's hybrid SUVs?

Hybrid Tax Credits: A sign that CAFE is just political buzz?

Automakers, especially America's Big 3, claim increasing CAFE is just too expensive. Apparently, ending foreign oil dependency just doesn't matter.

Nonetheless, in an effort to give automakers a little nudge, Congress created tax credits for hybrid cars and other clean technologies. Quite quickly, Toyota used all of their full tax credits. GM and Chrysler, on the other hand, have yet to sell one full hybrid.

Is that the sign of successful legislation?

Even with reduced tax credits, Toyota will probably sell more than 150,000 Prius hybrid cars this year. In all, Toyota might sell a quarter million hybrids in the U.S. in just 2007. Yet, how many more hybrid cars could Toyota sell if consumers still qualified for the full tax credit?

Extending tax credits for Toyota's hybrid cars isn't going to force the bankruptcy of American automakers. Extending tax credits for Toyota's hybrid cars will, however, force American automakers to take foreign-oil-dependency-reducing technologies much more seriously.

Besides, won't such competition be required to make a serious increase in CAFE possible? Or, is all this CAFE political buzz just another Congressional game?

National Energy Policy according to the Big 3

It seems the need for a National Energy Policy was a hot topic at the Automotive News World Congress according to the DetroitNews. Unfortunately, what that energy policy should be was far from unanimous. Of course GM lobbied for biofuels, plus some help with batteries. Chrysler lobbied for hydrogen. Ford, well, Ford's reported comments surprised me the most. Nancy Gioia, director of sustainable mobility technologies and hybrid vehicle programs at Ford told the DetroitNews, "hydrogen is one of the most promising long-term solutions -- one that she said will require a national commitment comparable to the one required to put a man on the moon.

At the same time, Gioia pointed out that hydrogen is not a panacea. She said it takes a great deal of energy to extract hydrogen -- energy that might be better utilized by other technologies like plug-in hybrids."

Mulally provides hope for Ford fans

Ford stock is dirt cheap, but not many analysts would recommend a buy on the stock and probably with good reason.

Still, one has to take note of Ford's new leader, Alan Mulally. Mulally is a long time fan of Toyota, particularly due to Toyota's manufacturing process - a process he hoped to replicate as an executive at Boeing. In fact, Mulally has called himself "a disciple of the Toyota production system," according to the DetroitNews. Moreover, when Mulally, along with the leaders of GM and Chrysler, met with the President a couple of months ago, it was Mulally whom was by far the most optimistic. It just seems as if Mulally realizes that the future of American automakers will require a revolution in process and in thinking. In a word, however, that revolution can be defined by efficiency.

Whether it is efficiency in production, in supply chains or in fuel economy, the mantra of efficiency can be a game changer for American automakers.

Consequently, I was very excited to hear that Ford is in discussions with Toyota regarding efficiency. Whether production efficiency or hybrid vehicle efficiency, it's obvious Ford can learn a thing or two from Toyota. While some analysts have questioned what Toyota might have to gain from a partnership with Ford, I say they have a lot to gain.

For example, yesterday, I noted that a hybrid partnership would benefit Toyota by making their hybrid powertrain more standard, which would give suppliers more incentive to develop Toyota-friendly hybrid parts. Obviously, more hybrid suppliers would lead to cheaper hybrid parts. Furthermore, Toyota would also receive a license fee from Ford which would help fund Toyota's hybrid development costs.

While none of this might work out, I think there is great potential for both companies. Obviously, Ford needs help, and Toyota knows a strong Ford is good for Toyota, especially if Toyota can create a nice revenue stream from a successful Ford.

Regardless, Mulally should give Ford fans great hope.

GM's fleet less fuel efficient today than 10 years ago

While GM claims to have more fuel efficient vehicles on the road today than any other auto manufacturer, GM's fleet is .05 miles per gallon less efficient than it was 10 years ago. Both Ford and Chrysler made slight gains. Toyota, on the other hand, improved fuel efficiency by 1.5 mpg over the same decade.

"Improving motor vehicle fuel efficiency is a win-win-win solution that would not only lower consumer costs and help decrease our dependence on oil, but also improve the future prospects of U.S. car companies," said Mark Cooper, the consumer federation's research director. "It is essential that the new Congress move quickly to approve higher fuel efficiency standards in order for these benefits to be realized."

Additionally the report noted, "It is significant that Ford and GM showed only marginal increases in the percentage of vehicles meeting CAFÉ standards and have suffered severe financial setbacks."

Kind of ironic that the same day the Big 3 and Democrats are blaming Bush for Detroit's problems, the facts seem to paint a bit different story. I thought the Democrats were going to rise above partisanship, end their ties with lobbyists and provide a new direction for America?

ForTwo Smart Car officially coming to U.S.

In early 2008 Daimler Chrysler will finally offer the Smart Car in the U.S. "The ForTwo's three-cylinder, 700cc engine has significantly lower emissions than other cars and gets an average of 40 miles per gallon in combined city-highway driving and will sell for less than $15,000." (more)

Women, common sense lost on Detroit?

Thinking outside-of-the-box is, in my opinion, one of Detroit's biggest problems. Or, let me rephrase that sentence. Detroit's inability to think outside-of-the-box is Detroit's biggest problem, which is why America is last in the hybrid car game.

An article in the Automotive News sheds light on the problem. "...talented women have been leaving Ford, General Motors and the Chrysler group in numbers too large to ignore. Most have left for better opportunities outside the industry after years of frustration in rigid, old-school work cultures and lack of advancement," states Anne Doyle, president of Anne Doyle Strategies, whom was also once communications director for Ford North American Division.

Hmmm???? "Rigid, old-school work cultures." I'd say that about sums up Detroit's problems.

Big trucks and SUVs cannot forever drive Detroit's profits. Sadly, this should have been realized decades ago, not just to protect the environment, but America itself. Reliance upon foreign oil endangers not just tens of thousands of American jobs, but America's national security. This should have been clear after the problems with Iran in the 70's and 80's. It should have been crystal clear after 9/11.

While Detroit might see hybrid vehicles as an interim technology to fuel cell vehicles, hybrids are interim technology that is desperately needed right now. America can't wait another decade or two to start getting serious about oil dependence. Unfortunately, the attitude in Detroit continues to seem, "rigid" and "old-school", and that is very sad.

Hybrid vehicle technology dares us to dream

Back in the 90's the Big 3 were given a billion tax dollars to develop the next generation of fuel efficient technologies. They developed hybrid cars and electric cars, but Detroit quickly decided that such vehicles just weren't profitable enough.

Japan, on the other hand, showed a bit more vision and determination, eventually producing the Honda Insight hybrid, followed by the Toyota Prius hybrid. Still, things didn't really get going until the 2nd Generation Prius, which quickly became a hot seller and put hybrids on America's radar.

Now Detroit is finally taking the hybrid game seriously - at least a little bit.

While Ford has stated that it firmly believes in the future of hybrid cars, GM has continued to state that hybrid vehicles are little more than a public relations effort. Nonetheless, GM and Chrysler are developing hybrids - of course their hybrid technology is, ultimately, better for trucks and highway driving, rather than the congestion that is predicted to be a major problem in the next couple of decades.

Moreover, the Army recently announced a program converting Ford Escape hybrids into hydrogen hybrids, and there are also Prii running on hydrogen. Suddenly, the 'hydrogen highway' might not require fuel cells at all, rather just current hybrid vehicle technology. Besides, if fuel cells do become cost-effective, most engineers believe that fuel cell automobiles will be fuel cell hybrid vehicles.

But back to today's technology.

Even far different hybrid technology, such as a hydraulic hybrid, is being developed and tested right now. For example, UPS is testing a diesel hydraulic hybrid this year. Hydraulic hybrids offer significant fuel economy improvements without the high costs of electric motors, hybrid batteries and software.

Single mode hybrids, dual mode hybrids, hydrogen hybrids, hydraulic hybrids - suddenly, oil dependence seems more manageable.

Recently, I read the article, Energy policy without the fear factor that states, "We cannot continue to go the way we've been going. It is not a matter of "car guys'' versus "tree huggers,'' liberals versus conservatives, truck lovers versus truck haters. It is an acknowledgment that, if we as a global community fail to examine and answer "What if?'' and refuse to accept or implement the changes required by the answers, the question may answer itself.....And the answer could be one none of us could live with."

Today's hybrids are not just the beginning of an automotive revolution, but a technological evolution. When we believe we can do more, a funny thing happens, we find out we can. Suddenly, utopian dreams aren't so utopian when the power of technology is used to benefit people, rather than just profit from people.

"What if" we dare to dream is a great question. 'Why not dare to dream', I think, is an even better one with today's technology.

Honda willing to share hybrid technology

Honda announced that it would share its hybrid technology if other auto companies were interested, joining at least Toyota and GM/Chrysler/BMW. Already Nissan is going to lease Toyota hybrid technology for the upcoming Altima hybrid, and Ford leases some Toyota software. Perhaps, Honda is making a play for Hyundai, whom recently announced the delay of any hybrid cars until 2009? (More)

Why isn't Toyota Producing More Hybrids?

According to Toyota, its hybrid cars are selling as fast as they can be made. Contrary to recent articles, even the Highlander hybrid and the Lexus RX400h, are also selling well, notes a recent AutoWeek story.

Nonetheless, Toyota isn't necessarily selling many more hybrids this year compared to last year. In fact, with the release of the Camry hybrid, for example, Toyota has had to reduce its production of the popular Prius, in order to have the capacity to build the hybrid Camry. Thus, overall sales of Toyota hybrids are not accelerating as fast as in the past, even though interest is growing.

So, why isn't Toyota producing more hybrids?

"Expanding hybrid volume requires increasing the number of vehicles that have the hybrid option available," stated Jim Press, President of Toyota U.S.A. "That's driven by engineering resources, and it's difficult to accelerate that."

One can only speculate that "engineering resources" also includes technical parts from suppliers, such as batteries. Why don't suppliers rush to this demand? Maybe the better question is, why should they? NiMH batteries appear to already be a dead technology soon to be replaced by lithium-ion technology. Yet, unfortunately, this whole transition will take years, maybe even a decade.

Whatever the causes for this lack of "engineering resources", it appears that Toyota is either willing, or has no choice, to just coast for a few years, producing only a few hundred thousand hybrids annually.

Hopefully, soon-to-be-released hybrid technology from GM and Chrysler, or a new hybrid Fit from Honda, will accelerate Toyota's hybrid production.

Hybrid Technology: One Mode Versus Two Mode

Soon, the first hybrid cars from GM and Chrysler will be available for sale, and so too will a new type of hybrid technology.

The New York Times notes, "the new technology is different in some crucial respects. It has the potential to operate much more efficiently at highway speeds, with a greater boost from the electric motors. The components are lighter and more compact and can be readily adapted to different types of vehicles. It is particularly well suited to large trucks and S.U.V.'s — the biggest gas hogs in Americans' garages — where it will have the greatest impact on overall fuel consumption."

Wouldn't going from an SUV to a hybrid car, rather than a large hybrid SUV, "have the greatest impact on overall fuel consumption"?

Still, if consumers have to have a "gas hog", a hybrid "gas hog" will be 25% less piggish - and that's at least a good start.

Most in Congress lazy gas-guzzlers?

Congressional Hypocrisy?

When members of Congress went ONE block to a gas-station news conference to sound off on high gas prices, almost all of them drove, and the majority of them drove gas-guzzlers.

One Senator did drive a Prius hybrid car and John McCain actually made the extremely difficult, one block journey, on foot - an amazing feat!!!

"Since George Bush and Dick Cheney took over as president and vice president, gas prices have doubled!" charged Sen. Barbara Boxer (D-Calif.), standing at an Exxon station on Capitol Hill where regular unleaded hit $3.10. "They are too cozy with the oil industry."

"She then hopped in a waiting Chrysler LHS (18 mpg) -- even though her Senate office was only a block away." (Washington Post)

So, Mrs. Boxer's plan is to drive one block, stop and wastefully idle, and then drive one more block? Now that's the way to fight high gas prices!

The actions of both Democrats and Republicans demonstrate why gas prizes are too high: Americans drive gas guzzlers and they are lazy.

At least these politicians could have driven some more hybrid cars, biodiesel or ethanol cars on this huge 2 block journey to help promote the kinds of technologies that can fight these high gas prices.

Apparently, most in Washington just talk about making a difference, instead of actually making a difference. It's people like Mrs. Boxer that are causing high oil prices. She who live in a glass house should not throw stones.

With such leadership, is the current state of America really that surprising?

The blame game: High gas prices

Gas prices are going up, and the potential for significantly higher gas prices is increasing regularly. Who is to blame? Big oil says, "the U.S. economy had become vastly more fuel-efficient since the first oil shock, 'so why is the average fuel economy of American cars unchanged in two decades?'"

Chrysler responds, "Despite a documented history of blowing their exorbitant profits on outlandish executive salaries and stock buybacks, and hoarding their bounty by avoiding technologies, policies and legislation that would protect the population and environment and lower fuel costs, Big Oil insists on transferring all of that responsibility on the auto companies." (Detroit News)

O.K., so oil hasn't done their job, but what has Chrysler, or any of the Big 3, done?

Nothing regarding fuel economy, that's for sure.

Oops, I forget, they put millions of Flex-fuel vehicles on the road, that's right. Instead of paying fines for missing CAFE requirements, automakers have added flex-fuel technology to gas-guzzlers. I guess that's enough!

Unfortunately, with only 600 ethanol stations out of 180,000 gas stations, most simply can't find ethanol.

Ultimately, big oil and the Big 3 have failed America and the world.

Of course Americans keep buying gas-guzzlers and performance that can't be utilized, but we look good! Well, that's another story...

Irresponsibility - it's always someone else's fault!!

Gas guzzler pollution worse than advertised

A new study suggests that as gas-guzzlers get older they pollute far more than government tests acknowledge, and that the government should measure pollution not by miles driven, but gallons of gas used. (Intech via MotorTrend).

BMW and Toyota vehicles pollute less over time, Hyundai, Mitsubishi, Chrysler, and GM were most likely to pollute.

Hollywood: Progressive or Bling, Bling?

The environment or bling bling?

Hybrid haters often love to portray hybrid cars as only some crazy movement perpetuated by Hollywood. While 25 stars took advantage of the opportunity to participate in the Fourth Annual "Red Carpet, Green Cars" event sponsored by Toyota and the environmental organization Global Green USA, the majority of Hollywood's stars arrived in gas-guzzlers.

"What the cameras didn't show were the Detroit-made rides stars got out of in front of the Kodak Theatre, like the 2006 Chrysler 300C luxury sedan and Jeep Commander SUV."

"The Chrysler Group shuttled stars to Hollywood's biggest event and after-parties in the vehicles." (DetroitNews)

On a night when this 'socially-driven' group picked Crash - a somewhat entertaining, but socially inept, contrived and stereotyped movie - as the Best Movie, foreign oil dependency and the environment took a back seat to stretched Cadillacs and 300Cs.

Perhaps George Clooney can make a real movie on the irony of Hollywood's self-perpetuated progressive portrayal versus their greedy, ego-centric, anti-environment and pro-War actions.

I say it's about time this brave group stops pointing their fingers at others in their attempt to save the world and take a look at the 3 fingers pointing back at themselves.

Walk the walk, don't talk the talk.

Why GM makes me mad

Yesterday, I read an article that bothered me a bit. Daniel Howes, an auto reporter for the Detroit News, wrote an article, Help us, Mr. President, that really got under my collar.

Now, I like Howes as a reporter because I think he's pretty fair, especially compared to some of the other auto writers at the same paper. Still, you can't blame Howes for trying to save Detroit. What other choice does he have? In many ways, his job is probably dependent on the success of Detroit automakers.

What really angers me, I've realized, is Detroit automakers, especially GM.

Mr. Howes notes the legacy healthcare and pension costs of GM and Ford, while also complaining that Asian automakers have enjoyed unfair trade barriers. While I have sympathy for these issues, it isn't much.

Then, Howes states, "Nearly 20 GM models deliver 30 mpg or more; the first gas-electric hybrid SUV is a Ford; and Chrysler's Jeep Liberty is the U.S. industry's first diesel-powered SUV."

"Did Toyota and Honda set the standard in hybrids? Absolutely, and more models are coming. Same with Ford, GM and Chrysler. And GM and Ford have millions of ethanol-capable vehicles on the road today, a precursor to the ethanol-powered fleet that you say would free us from Oil Sheikdom."

Smoke and Mirrors

These statements are pure Detroit - deception and lies and the art of advertising.

First, in real world driving, GM doesn't have 20 models that achieve 30 mpg. Sure hybrid cars don't achieve EPA estimated fuel economy, but in reality almost every car misses their EPA numbers. In fact, the Jeep Liberty Howes mentions actually achieves 50% less than what the EPA estimates in city driving according to Consumer Reports.

Second, these faulty EPA numbers are used by GM and Ford to deceive CAFE. Consequently, many Ford and GM SUVs would not pass their CAFE requirements, if not for the EPA's inefficiency. Since this fact is well known by the government and industry alike, I'd call that U.S. protectionism - especially since SUVs have been Detroit's savior the last few decades.

Third, America's ethanol fleet, please! This one is the one that really sets me off, especially since I've seen at least 20 ads promoting how green GM now is because it has more than a million ethanol vehicles on the road.

Go Yellow? Go to hell GM! It has been a long running joke that almost everyone who drives a flex-fuel vehicle - one that can run on ethanol - doesn't even know it.

Why?

Ethanol is expensive most places it's offered, and ethanol isn't offered in very many places. Thus, a flex fuel vehicle really isn't much of a benefit to most, except Detroit automakers.

Adding flex-fuel capabilities to a large SUV only costs a few hundred dollars, but it enables vehicles that wouldn't pass CAFE to pass CAFE - EVEN THOUGH NO ONE IS USING THE FUEL. Thus, GM spends a few extra hundred deceiving the government - whom enables this deception - on vehicles it make thousands of extra dollars in profits.

Who wouldn't take that deal? Here, you give me $500.00 and I'll give you $5000.00.

Thus, I'm supposed to proud of GM for lies and deceit? Lies and deceit that don't reduce foreign oil consumption at all, but instead increase foreign oil consumption - this is something GM is spending millions bragging about?

Disgraceful.

How many more loopholes does the government need to give Detroit? I mean there is already a $25,000 tax deduction for the most offensive, gas-guzzling and polluting SUVs - which was only just reduced and doesn't even include depreciation deductions.

How much more does Detroit need?

Ford used to anger me as much as GM, but at least Ford has admitted the error in its ways and has taken a step in the right direction. Still, Ford needs to do much more, but I'm a huge advocate of the Escape hybrid.

If GM, on the other hand, wants my sympathy or wants my money, then GM needs to come clean. Since 9/11 GM has continued to promote it's most fuel inefficient vehicles as its marquee product. This is irresponsible and un-American.

Get with the program GM. Take some real responsibility. Admit some mistakes and talk to the people about the effort it will take to change. Help America - lead America - towards ending not just foreign oil dependency, but oil dependency and global warming emissions - not in some mystical future world of fuel cells, but today!

Let's Dare to Dream!

When GM shows some vision and some real leadership - first by accepting its failures and then with new products - I'll be the first in line to buy a GM.

Ultimately, GM has no one to blame but themselves, and forgiveness cannot begin without first accepting responsibility. Until then, I'll hope for bankruptcy.

Americans and cars: The superficial Nation

"As design has become increasingly important to a car company's success, almost every auto manufacturer is looking for a distinctive look that will help it stand out in an increasingly crowded marketplace," states a new article, that adds, "'Design DNA' is all the rage as carmakers try to make their vehicles stand for something."

The article cites Chrysler as an example of how 'design DNA' can be successful. Chrysler, of course, is the only one of the 'Big 3' that is actually doing well, and design is a big reason according to the article.

So, America is nothing, but a nation of bling, bling? We really are as superficial as most of the world sees us?

We suck up huge amounts of the world's oil, paying off terrorists and governments that absolutely hate us, but that's O.K. as long as we look cool?

Many times I've been on the Forums of AutoWeek, and many members criticize the drivers of hybrid cars relentlessly. Why? For trying to help the environment, for trying to reduce foreign oil dependency?

Why are so many Americans more concerned with looking cool than being cool? Is the American psyche really so dysfuntional?

Hybrid cars and the EPA's new fuel economy estimates

Boy, oh, boy some critics of hybrid cars couldn't wait to talk about how the new EPA estimates for fuel economy might affect hybrids.

The Detroit News just couldn't contain themselves in the article, Fuel test overhaul may dent hybrids, as you can tell from the title.

No, No, Detroit News, tell me how you really feel.

Anyway, the article states, "The Environmental Protection Agency announced an overhaul in the way it estimates fuel economy Tuesday, a move that could shake up showroom transactions, especially in the booming hybrid segment."

Under the new methods, the city fuel mileage estimates for most vehicles would drop 10 to 20 percent from today's estimates, depending on the vehicle. The highway mileage estimates would generally drop 5 percent to 15 percent, the EPA has stated.

The DetroitNews and others have noted that for hybrid vehicles; however, city driving numbers will drop 20 to 30 percent.

What I find most amusing about this whole discussion is how much hybrid critics like to discuss the shortcomings of hybrids. Critics constantly note that hybrids are only 1% of total sales and will never achieve more than 5% of U.S sales, therefore, they are insignificant.

Fine, if that's your belief, why do hybrid critics care so much about hybrids?

But let's get back to the EPA numbers.

When Consumer Reports did their fuel economy tests last year, it found that the biggest offenders in terms of real world city mileage were conventional vehicles, in contrast to the EPA. In fact, 9 out the 10 of the biggest offenders WERE NOT hybrids and those vehicles missed their EPA estimates by 35% on average. The worst offender, the Jeep Liberty diesel, missed its EPA estimates by 50%!

Another offender, according to CR, the Chrysler 300C, is supposed to achieve 17 mpg in the city, but actually only achieved 10 mpg. Yet, the DetroitNews and other hybrid critics are complaining about hybrids? In my mind, 10 mpg is simply unacceptable in today's world and that should be the real issue regarding American fuel economy.

Yet, the EPA numbers don't demonstrate CR's findings. Why?

While I don't know the answer, my guess is that because other cars don't fare as poorly, this raises the overall average for all vehicles in a particular class. In any regard, it demonstrates that the new EPA numbers are still very unreliable.

Also since these new numbers could affect the way CAFE is determined, one has to wonder if some politics aren't involved in the mix. If it were demonstrated that conventional vehicles were vastly less fuel efficient than the EPA has stated, then CAFE might have to be refigured. Such a move would probably immediately bankrupt both Ford and GM.

Since there aren't many hybrids available, on the other hand, one hybrid with poor city mileage can skew the whole hybrid fleet. Honda hybrids, for example, haven't performed as well in the city as Toyota hybrids, are the results of these hybrids averaged? If so, is that fair?

Ultimately, the testing methods of the EPA are still in question. Ironically, "Officials at the Alliance for Automobile Manufacturers, the auto industry's Washington lobbying group, cautioned that real-world mileage still varies from driver to driver."

Do hybrids save money.

OK, let's say the Toyota Prius hybrid car only achieves 45 mpg in the city. CR found that the Ford Fusion only achieves 17 mpg in the city. While the new EPA estimates favor the fusion, the Prius is still THREE times more fuel efficient than the Fusion in the city.

Now, if you drive on the highway all the time and never drive in congestion, the Prius won't offer near the savings, but it will still offer significantly better fuel economy than the Fusion. On the other hand, if you live in any major urban area in the U.S., the Prius could save you around $1000.00 per year compared to similarly sized conventional vehicles. That makes the Prius a pretty awesome deal.

Perhaps you're somewhere in the middle, so in 5 years you've only saved $2500. That at least covers the base MSRP price difference between the Prius and the Fusion. Keep the Prius a couple more years and you've done well, and if gas prices spike in the next 7 years, then you've done really well.

With the situation in Iran brewing, spikes in gasoline prices are becoming almost inevitable. The real question regarding gas costs isn't will gasoline prices go higher, but how much higher will gasoline prices go?

In the end, hybrid vehicle buyers, not hybrid critics, will have the last laugh, despite the EPA's new numbers.

Camry hybrid set to dominate Detroit Auto Show

Yesterday, I wrote about how GM's dual mode hybrid system would finally make its debut appearance at the North American International Auto Show in Detroit via gasoline electric hybrids from GM, Chrysler and BMW. While it is nice to finally see some serious hybrid cars from these automakers, Toyota will once again dominate the buzz in Detroit.

Why?

The Toyota Camry hybrid. While there hasn't been a lot of official news regarding the hybrid version of the Camry, according to MotorTrend, "The Camry Hybrid will deliver the highest level of Camry performance ever achieved in both fuel efficiency and low emissions and also achieve impressive power."

Additionally, the whole line of Camrys is being redesigned and reengineered to greatly improve performance and comfort. Thus, the hybrid Camry will also benefit from these "significant" improvements.

So, will the Camry hybrid be as popular as the Prius hybrid car?

Probably not; however, pricing will largely determine the success of the Camry hybrid. While the Camry hybrid is certain to be a top hybrid seller, I'm certain that Toyota isn't yet ready for the hybrid Camry to out-sell the conventional Camry, so pricing will be set to lure early adopters, not average buyers.

Yes, GM, Chrysler and BMW will get some good buzz from their new hybrids, but the Camry hybrid is the real show-stopper.

GM and Chrysler finally ready to launch their hybrids

GM, DaimlerChrysler and BMW will launch GM's dual mode hybrid technology in their respective gasoline-electric hybrid powertrains at this year's North American International Auto Show.

The three automakers formed an alliance in an attempt to catch up with Toyota, the leading seller of hybrid cars. The dual mode hybrids offered by these companies will offer very different performance compared to Toyota's hybrids.

GM's dual mode hybrid technology should be cheaper; however, it won't be as efficient at Toyota's technology, especially in urban driving. GM's technology, on the other hand, could offer advantages in certain areas of performance, such as towing.

Still, Toyota has some huge advantages regarding hybrids. Already Toyota believes that it can cut its hybrid costs in half when it releases its third generation hybrid drive in just a couple of years. If this is true, it will wipe out GM's cost advantage, while also offering significantly better fuel efficiency

Nonetheless, the competition that is developing in the hybrid segment will be good for all consumers. While Toyota and Ford hybrids utilize very similar technology, Honda has succeeded with its own technology, and now comes GM's hybrid technology. Additionally, both Volkswagen and Hyundai shouldn't be far behind with their hybrids.

This competition will increase hybrid supplies, which will make all hybrid vehicles cheaper. Moreover, the competition between hybrid technologies will, inevitably, lead to affordable, extremely fuel efficient vehicles.

Hybrid vehicles and the tree-hugging conspiracy

From Hybridcarblog.com

Hybrid critics make me laugh. Hybrid cars don't achieve EPA fuel efficiency numbers and they don't save money these critics keep harping.

Sure, according to Consumer Reports, hybrid cars often do not achieve the EPA's fuel economy estimates. Of course, the Consumer Report's study also shows that of the 6 hybrids available, 3 of them are the MOST FUEL EFFICIENT VEHICLES you can buy. More ironically, however, these critics glance over the fact that most vehicles miss their EPA estimates, and that in city driving, conventional vehicles miss their EPA estimates miserably.

So let's be clear about this. The Toyota Prius only achieves a pathetic 45 mpg in the city, the Jeep Liberty Diesel achieves a whopping 11 mpg, the Chrysler 300C achieves 17, and a number of Dodges achieve a stellar 8 mpg. Ohhh, those crappy hybrids.

Good thing hybrids only account for around 1 percent of U.S. auto sales otherwise America would be in real trouble! PHEW!

"Hybrids suck, man," these critics seem to say, "they don't achieve EPA estimates, so it's OK if I only achieve 8 mpg. The Prius only achieves 45 mpg, not 60! Thats the real problem!"

What's going on here? If foreign oil dependency is a problem, if oil consumption is a problem, shouldn't our attention be on the source of the problem? Why is the President asking Americans to conserve, as GM increases output of its most gas-guzzling vehicles?

Now I get it, cause we don't want more hyped hybrids on the road - they're dangerous! I mean, according to a recent study, if all vehicles achieved 45 mpg, not only could America end foreign oil dependency, but it could save as much as a trillion dollars. That would be blasphemous. Americans aren't supposed to save money, our duty in life is to spend money, dammit!

Fortunately, 9 out of 10 of the 'best' offenders, according to the CR study, were conventional vehicles. Almost every conventional vehicle is achieving less than 20 mpg when driven in the city, stuck at street lights and stop signs, caught in rushhour, etc. In fact, many conventional vehicles are only achieving around 10 mpg in these conditions. Now that's American, baby!

So, is it the fact that hybrids only achieve 45 mpg, instead of 60 mpg, that is increasing foreign oil dependency every year, or is it the fact the millions of conventional vehicles are only achieving 10 mpg? Damn those hybrids.

I wonder how much advertising money is spent on hybrid vehicles versus conventional vehicles? Hmm. Well, GM spends billions on advertising every year and they don't offer any hybrids - NO the current Silverado DOESN't COUNT - so I'd say hybrids are already at a huge disadvantage.

OOPs, I didn't just criticize GM. I better watch it, they might pull all their ads from my site like they did to the LATimes.

In reality, promoting hybrids is worth millions in advertising dollars, while promoting 8 mpg gas-guzzlers is worth billions, but I'm sure there isn't any connection. Just as there isn't any connection between 8 mpg and foreign oil dependency. Just as there isn't any connection between automobile pollution and lung cancer, and asthma, and allergies, and smog-influenced skin cancer, and global warming.

Hybrids are hype and everyone should drive a Hummer because oil dependency is a god-given, perfectly harmless action. Those that disagree are part of the oppressive, supremely powerful tree-hugging conspiracy.

If ending foreign oil dependency could save America a trillion dollars, how much does 8 mpg, or even 20 mpg, really cost America? Since there are billions of reasons not to ask that question, you can be sure that criticisms of hybrids will continue, but that question won't get asked.

Of course, what's a trillion dollars? Just add it to the deficit and let someone else deal with it in a decade or two. Now that's American! God bless us!

When it comes to hybrids, it's all about Toyota

Challenges in the hybrid space are not for Toyota, the real challenges belong to Toyota's hybrid competitors

The coolest thing about the article Challenges ahead for Toyota hybrids was the statement, "With Hurricane Katrina pushing American gas pump prices above $3 a gallon, Toyota Motor may find itself yet again in the right place at the right time, with a new, half-mile-long assembly line capable of producing gasoline-electric hybrid Prius cars at the rate of one a minute."

The rest of the article isn't bad, but the title is just wrong. What challenges, exactly, is Toyota facing?

First, an "increasingly competitive marketplace may prove to be the biggest for Toyota." The article argues that it isn't necessarily the competition, but the nature of tax credits that will cause the headache for Toyota by helping the competition. Ultimately, each manufacturer is only allowed 60,000 tax credits. Obviously, Toyota will run out of credits almost immediately, and this is seen a challenge to Toyota and a benefit to the competition.

Still, while the tax credits are a bit unfair, is this really a problem?

If each automaker, aside from Toyota, is only interested in selling 60,000 hybrid cars, then hybrids are already dead. Quite simply, this is a non-issue. With or without tax incentives, the Toyota Prius hybrid, for example, is a great vehicle at a reasonable price. The same should be true for the soon-to-be-released second generation Honda Civic hybrid. These vehicles will sell, regardless of tax credits, and the challenge will be for Ford, GM and Chrysler to compete against these products.

Hybrid SUVs, on the other hand, such as the Ford Escape hybrid or the Toyota Highlander hybrid, are questionable buys in terms of cost. Tax credits definitely help close the deal on these first generation, expensive hybrid vehicles. Nonetheless, it is the cost of hybrid components that elevates the price of these hybrids. As more and more hybrid vehicles are developed - by all manufacturers - the costs of these components will be reduced. More important, hybrid components will become more fuel efficient and powerful, offsetting more and more the price of hybrids.

Second, the Times questions consumers' willingness to buy hybrid vehicles that aren't as fuel efficient as expected and that fall "short of federal economy ratings".

HMMMM. Yesterday, AAA lobbied Congress to make EPA fuel economy ratings more accurate (more). Was this because the EPA does such a bad job of predicting hybrid car fuel efficiency?

NOOOOOOO!!!!!

This was because, ALL VEHICLES DO NOT MEET EPA FUEL ECONOMY RATINGS, which is a big problem in terms of foreign oil dependency. Consumers need to know the truth.

One of the biggest problems with the EPA is that it assumes that most drivers do the majority of their driving at 55 mpg on wide open highways. Anyone that lives near LA, San Francisco, Houston, Dallas, Miami, Chicago, St. Louis, Minneapolis, Milwaukee, New York, Philadelphia, Pittsburgh, Boston, etc, knows that 55 mph driving is a rare luxury, not the norm.

Conventional vehicles not only achieve far less than their EPA fuel economy ratings, they also pollute far more in the conditions of day to day urban driving. On the contrary, hybrids - even the much criticized Lexus RX400h - achieve their best fuel economy while emitting the fewest pollutants in these same conditions. In actuality, studies have shown that most vehicles - NOT HYBRIDS - achieve about 20 to 30 percent less fuel efficiency than the EPA estimates.

In real world driving for a majority of Americans, hybrids are much more fuel efficient than conventional automobiles, PERIOD.

I'd say Toyota is facing the fewest challenges when it comes to hybrids. If Toyota hybrids aren't successful, then hybrids - by all manufacturers - will not be successful. Toyota has already faced the toughest challenges, challenges which GM, Chrysler, and BMW have yet to face.

Cheaper hybrids thanks to BMW, GM and Chrysler?

BMW will join the GM and Chrysler hybrid vehicle partnership according to the AP. “The creation of a shared technology platform for hybrid drives will allow us to more quickly integrate the best technologies on the market,” said Burkhard Goschel, BMW’s head of development. According to the report, this should enable the partnership to provide cheaper hybrid cars. (More)

Even Toyota and Ford hybrids should become cheaper with this move as more suppliers move into the hybrid space, creating competition for newer and battery batteries and other hybrid powertrain supplies.

Oil tensions rise

Today oil prices moved past $62.00 per barrel on the news that King Fahd of Saudi Arabia died and the lingering effects of oil refinery fires last week.

Currently the U.S. imports 58 percent of its oil from foreign countries, within 20 years that number is expected to rise to 68 percent according to the AFP.

Does the U.S. expect complete stability in the Middle East for the next 20 years?

Additionally, over the weekend, a new study linking global warming and hurricane strength was released. These stronger hurricanes, year-after-year, have the ability to seriously interrupt the supply of oil and gasoline into the United States.

Year after year we're going to get lucky?

So what is the U.S. doing?

Increasing not only oil dependency, but foreign oil dependency. O.K., excuse me, Congress is going to help by allowing hybrid cars to use the carpool lane and by offering a couple of tax credits for hybrid vehicles. Of course, Congress is about pork and loopholes, and those tax credits could be used by GM and Chrysler as an excuse NOT to produce hybrids (more)

Yet, Congress still won't address fuel efficiency and continues to allow the Big 3 to loophole their way around current fuel efficiency legislation (more on this). The result? Amidst a second war in Iraq, increasing Middle East tensions, and the war on terror, the U.S. is as fuel efficient as it was 20 years ago.

Shouldn't Americans expect more from American corporations and Congress?

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Read Hybrid vehicles: It's the technology, stupid

AutoWeek hybrid car hate

When it comes to covering hybrid cars, AutoWeek couldn't be more unprofessional. Every time a hybrid story is their lead story on their home page, it is focused only on negatives, yet a vehicle, such as the H3 is praised without question. (more)

CONGRESS screwing the people of fuel efficiency

The NYTimes is reporting that the EPA is not going to release a new report about how automakers are abusing fuel efficiency loopholes, setting America back 20 years in the fight against foreign oil dependency. Thus, Congress can pass another loopholed energy bill that actually provides incentives to companies, such as GM and Chrysler, to avoid developing hybrid cars in favor of diesel. While clean diesel offers some advantages over gasoline, the potential of hybrid vehicles is significantly greater than the potential of diesel. Just another example of how badly Congress sucks. Even in time of foreign-oil wars, and oil-driven terrorism, Congress still rewards auto companies and oil companies for making the problem worse. FIRE CONGRESS!

Congress blowing hybid car tax credits

Congress is a joke. The only legislation they can adequately accomplish is pork-barrel legislation. Tax credits for hybrid vehicles are going to be limited to only 60,000 vehicles per manufacturer and it's not just hybrid cars. All 'fuel-efficient' vehicles will qualify, including diesel vehicles - due to the arm twisting of GM and Chrysler. "It's all about having the marketplace, not regulation, driving the move into cleaner cars," said Rep. Dave Camp, R-Midland, sponsor of the car-tax credits. Yeah, right. So, taxpayers have to pick up the tab for the inefficiencies of the Big 3, as well as the terrorism and war costs of foreign oil dependency?

Honda taking its hybrids to another level

Honda has announced that it will be making its entire fleet of vehicles more fuel efficient, but none more so than its hybrid vehicles. Honda's improved i-VTEC engine technology will enable all Honda vehicles to increase their fuel efficiency by a few percent. However, this technology, combined with Honda's new hybrid powertrain, will enable gains in fuel efficiency of 20% for both the Civic hybrid and the Accord hybrid.

In fact, Honda's new hybrid powertrain, much like Toyota's hybrid powertrain, will enable the Civic and Accord hybrids to run on electric power only at low speeds. This ability has made the Prius hybrid, for example, extremely efficient in urban, or stop-and-go traffic. Other than Toyota hybrids, only the Ford Escape hybrid offers such capability.

While Honda has been in the shadow of Toyota hybrids, this development has the potential to enable Honda to challenge Toyota as hybrid king. Coupled with Nissan, Hyundai, GM, and Chrysler hybrids on the horizon, the hybrid competition is really set to heat up.

And as the energy crisis heats up, starting with today's Gulf tropical storms, hybrid interest is set to intensify.

The hybrid car stage, America

While hybrid cars are only a small percentage of total U.S. automobile sales, America is still THE market for hybrids. The hybrid leader, Toyota, sold almost 10,000 Prius hybrid cars in May alone, and recently added the Lexus RX400h and the Highlander hybrid to its lineup. Still, getting your hands on a Toyota hybrid isn't easy, and prices often include significant dealer markups.

Supply simply isn't catching up to demand.

To address the problem, Toyota recently announced that it would begin moving some hybrid production to the States. In late 2006, for example, Toyota will begin building 50,000 Camry hybrids per year in Kentucky and plans to add the Prius to U.S. production as well.

The hybrid component supply chain; however, will remain in Japan and this remains the largest obstacle to mass hybrid vehicle production. Currently, Panasonic EV Energy Co, produces all of Toyota's hybrid batteries, but according to AutoWeek, Toyota wants to move some of this supply chain to the U.S.

"Obtaining the necessary components will be the real restriction in how many hybrid vehicles Toyota manufacturers here," says Jim Press, COO of Toyota Motor Sales U.S.A. Inc.

Other hybrids, such as the Nissan Altima hybrid, which will be built in Tennessee and the Ford Escape hybrid, as well as the Mercury Mariner hybrid, Toyota hopes, will help create new hybrid component manufacturer's in the U.S. Additionally, in late 2007 through 2008, GM and Chrysler will also begin building hybrids in the U.S., and both Ford and Toyota will be adding new models to their hybrid lineups.

All of this hybrid activity should eventually force Japanese battery companies to move some production facilities to the U.S., as well as create a new market for emerging companies and divisions. Until this happens; however, the supply of hybrids is almost certain to continue to trail demand.

While it is a bit disappointing that it will take some time for the hybrid market to truly flourish, this is great news for America. Hybrid technology isn't just going to be an interim technology or bridge to fuel cell vehicles, hybrid technology is going to become fuel cell technology.

In July, Toyota will begin leasing its first fuel cell hybrid vehicle which has "become the first vehicle in Japan to acquire vehicle type certification under the Road Vehicles Act, as amended and enacted on March 31, by Japan's Ministry of Land, Infrastructure and Transport (MLIT)," according to just-auto.com.

Just as with hybrids, America will be THE market for the majority of the first generations of mass produced, commercial fuel cell vehicles. Thus, America must become home to the production of not only fuel cell vehicles, but the technology behind fuel cell vehicles, and that begins with hybrids.

So buy a hybrid vehicle. Not only are you helping fight foreign oil dependency, pollution, and global warming today, but you are helping lay the foundation for a revolution in automotive technology to be built in America.

GM says No to Toyota hybrid cars

According to AutoWeek, GM has officially put the fork in rumors regarding GM's use of Toyota hybrid technology. It isn't going to happen - at least for now.

"Nobody knows whether hybrid-vehicle demand will remain at 3 percent of new-car demand or go up to 15 percent," Larry Burns, GM's vice president for r&d, told a Japanese reporter last week. "If the market goes up, we have to develop hybrid technology by ourselves."

Hopefully, this is a sign that the hybrid partnership between Chrysler and GM is going well. Still, the first hybrid vehicles to come from this collaboration won't hit the streets until 2008.

States pushing hybrid vehicles, Chrysler hybrid update

"More than a dozen states and several cities are encouraging drivers to buy fuel-efficient hybrid cars by offering tax breaks, free parking and the use of HOV lanes reserved for car poolers," according to a new USAToday article. The motive? To help clean the air in these cities.

Of course, not every hybrid buyer cares about the air. In fact some buyers in Virginia started buying hybrids to shave time off their commutes because they could drive in the car pool lane. Unfortunately, this has lead to congested car pool lanes in places like Virginia, where residents purchased every available Toyota Prius and Honda Civic hybrid.

The big move in fuel efficiency and gas prices hasn't gone unnoticed. Chrysler has announced that its hybrid powertrain will be ready for production in late 2007. "Thereafter, starting in 2008, a lot more applications. We have been pretty quiet about which vehicles," noted Chrysler COO Tom LaSorda recently (Autoweek).

$8000.00 more for Chrysler Diesels?

"While hybrid technology continues to excite consumers, changes are afoot that could rapidly increase the importance of diesel engines. Right now, DaimlerChrysler is charging $8,000 for the diesel option" on Jeep Liberty's diesel. Wow and hybrid vehicles are expensive? (Fool via Yahoo)

2008 Dodge Durango hybrid will be Chrysler's First

Because it will be at least a decade before hybrid cars have a notable impact on gas consumption, according to Chrysler, they will not release their first hybrid until 2008, the Dodge Durango hybrid. (AFP)

"Be different," says powertrain guru

Interesting words from Fritz Indra, the former General Motors Powertrain executive director of advanced engineering. In an AutoWeek article, Indra stated that gasoline engines are the future, dismissing both diesels and hybrid cars.

Because GM is so far behind in the hybrid car race, Indra thinks GM should "Do the unexpected. If you can't lead, don't follow. Do it different.". Nonetheless, Indra thinks the partnership between GM and Chrysler to develop a hybrid powertrain is still a good idea, just not the main priority.

I just wonder if the last 2 decades of GM automobiles can be considered either different or leaders.

More from AutoWeek.

GM, Chrysler increasing hybrid partnership?

Typically, statements containing GM and hybrid cars revolve around GM's Bob Lutz ridiculing hybrid vehicles. Sure, GM is producing some hybrid buses, but where are the passenger automobiles? Recently, GM and DaimlerChrysler announced a partnership to develop hybrid technology, and GM has stated that it expects to have hybrids available in late 2007. Now there is talk that a third automaker is about to join the hybrid project. "There are discussions under way. They are very lively and very serious," Dieter Zetsche, Chrysler group CEO, said last week after a speech here. "I would not be surprised if within this year we would come up with an additional" partner. (AutoWeek)

J.D. Power hybrid vehicle market study

If you follow hybrid cars, then you know one of the most cited hybrid analysts comes from J.D. Power, and his study is used in almost every hybrid vehicle market forecast.

Anthony Pratt, senior manager of global powertrain forecasting at J.D. Power-LMC, has stated for many months that hybrids will top out at 3 percent of the U.S. market by 2010, or roughly 535,000 vehicles.

Mr. Pratt typically starts out by noting how few hybrids have been sold, just 88,000 in 2004. Of course, Mr. Pratt doesn't mention that demand in 2004 has significantly out-weighed supply, nor does Mr. Pratt acknowledge the momentum gained by the technology behind the current Toyota Prius, Hybrid Synergy Drive.

Sales for next year, Mr. Pratt predicts will hit 200,000, or almost 1 percent of the market.

Toyota will easily move 100,000 Prius next year, and there are already more than 11,000 pre-orders for its Lexus RX400h hybrid SUV, the world's first luxury SUV.

The Lexus RX400h will be the hottest luxury vehicle on the market because you can be rich and still care! But seriously, early reports on this vehicle are glowing, and it is sure to win many awards. Forget the cost of the Lexus SUV hybrid. A few extra grand for the Best Lexus SUV won't mean much to Lexus customers.

Then there is the Toyota Highlander hybrid. The Highlander hybrid has one of the sleekest, aerodynamic SUV designs and it will be powerful - even faster than the conventional Highlander - yet 30 percent more fuel efficient and significantly cleaner, producing far less pollutants.

Interest in this vehicle is phenomenal. Many potential consumers, and there are well over a 100,000 interested customers, believe they can now have their cake and eat it too. Not only can they have an SUV, but they can have piece of mind as well. Guiltless SUV style and performance, at a reasonable cost, is what the Highlander hybrid will offer these consumers.

Just those 3 hybrids alone could move more than 200,000 vehicles.

Whether Toyota can produce 200,000 hybrids next year is the real question. Additionally, since the Highlander hybrid might not hit the streets until mid-year, its prospects might also be limited.

And, I haven't even yet mentioned the Ford Escape hybrid, the Honda Accord hybrid, and the Civic hybrid - at least another 40,000 - 50,000 units.

And in 2010, Mr. Pratt thinks there will be 30 - that's right 30 - hybrid vehicles on the market. But this is insignificant, Mr. Pratt seems to believe, because efficient gas engines and diesel engines will challenge hybrids.

To that argument, Toyota has already stated that any advance in diesel or gas engines can also be utilized in hybrids. So, if an advanced gasoline engine can increase fuel economy by 20 percent, then a hybrid vehicle with a new gasoline engine can increase fuel economy by 50 percent.

Ultimately, Pratt's trump card is cost. Pratt claims that at $3000 - 4000 above the cost of their conventional cousins is too high for hybrids to be competitive.

Yet, buyers have been know to pay for better performance, particularly faster and quicker cars, which is exactly what the new generation of hybrids offer.

Perhaps the most important reason to believe that hybrids will achieve more than 3% of U.S. sales is Toyota, the most dominating and profitable car maker in the world.

Ford has stated that it envisions hybrids as an integral part of the future. Chrysler has been relatively quiet, and Honda is well positioned in hybrids offering the Insight, the Civic hybrid, and the Accord hybrid.

Those car companies, especially GM and Nissan, with the most to lose if hybrids become popular, are the biggest naysayers. Of course, these car companies have no choice but to be bearish on hybrids at this point in time.

Toyota, on the other hand, has the most to gain from hybrids and the most power to push them. With it's Hybrid Synergy Drive already used by Ford in the Escape hybrid (and other models soon), its Synergy Drive will also be used by Nissan and Subaru, and every one of those licensing deals makes Toyota's hybrid drive more cost-effective for Toyota, while putting more pressure on competitors.

Typically, in the long run, the best technology wins. Hybrid technology is the best auto technology available, but it is an emerging technology and it will advance. Just one major development in NiMH batteries could instantly make conventional automobiles almost obsolete.

Additionally, a vehicle like the Prius might just one day transition from gas-electric hybrid, to fuel cell-electric hybrid.

More important, the world has become a dangerous place over the last few decades because of one resource, oil. Americans might not know this, or believe it, but terrorists certainly do. Additionally, demand is rising and will continue to rise. To continue to be reliant on a resource with so many costs in terms of the environment and military protection is simply foolish.

Don't believe me? Even the ex-CIA director, James Woolsey, promotes hybrids because of the dangers of oil dependency.

Mr. Pratt and J.D. Power, on the other hand, aren't concerned about oil dangers, just continued advertising dollars from inefficient automakers.

In conclusion; however, I think American consumers are truly beginning to question oil dependency, especially foreign-oil dependency. If not for oil, there is no way the U.S. would ever have become involved in Iraq, where, ultimately, 100s of billions of dollars are being spent to secure foreign oil.

If that hidden cost of gasoline were added to the cost of gas-guzzlers, hybrids would sure look a lot cheaper.

Subaru Legacy hybrid coming soon? Toyota and Subaru close to partnership

Reports are circulating that Subaru will lease Toyota's hybrid technology, and that Subaru will help supply hybrid batteries to Toyota.

Subaru maker, Fuji Heavy, is partially owned by GM, which has a hybrid partnership with Chrysler, but that partnership is focused mostly on developing larger hybrid vehicles, particularly trucks and SUVs.

Subaru; however, wants to focus on utilizing Toyota's hybrid technology for it's Legacy and other North American models, and it sees Toyota's Prius hybrid technology as the answer.

Talks between Toyota President Fujio Cho and Fuji Heavy President Kyoji Takenaka are expected to take place soon.

This would mark the third automaker to lease Toyota's hybrid technology. Ford was the first to lease Toyota's revolutionary technology for its Escape hybrid, followed by Nissan for it's Altima hybrid.

"Car companies are at a crossroads"

In the article Taken for a ride, Thomas Kostigen takes a very bearish view of hybrids and fuel cells.

Kostigen does make some good points. Specifically, he notes that American car companies, particularly GM and Ford, have become more like financial companies that make automobiles, rather than automobile manufacturers that also have a financial arm.

Mr. Kostigen opens his article referencing Nissan's claim that hybrid cars make no economic sense. He also notes that fuel cell cars are even more of a dream than hybrids.

Well, Nissan's claim really doesn't mean much to me. How can you say hybrids don't make economic sense, then announce your first hybrid, which is exactly what Nissan's CEO, Carlos Ghosn, did when he ridiculed hybrids.

Ladies and gentlemen, hybrid cars don't make business sense, which is why I'm proud to introduce our first hybrid car, the Altima hybrid.

That's double-talk, and what else can you expect from Nissan?

Here at Nissan we believe hybrids are the future. That's why we haven't invested in this technology and are forced to lease it from our main competitor, Toyota.

Since the Altima hybrid still won't be out for more than a year, in reality, what else could Mr. Ghosen say?

The fact is, the only reason GM and Nissan are making hybrid cars is because they realize that if the model succeeds, they will be out of the car business without any hybrid models.

In my book, Mr. Ghosen's spin is nothing but an attempt to buy time.

Yet, Mr. Kostigen concludes his article, "The future of car companies may not rest in how sleek, fast or comfortable their products are, rather in how efficient (read economic, not fuel) they can make them.

O.K., I can agree with that statement.

Then Kostigen states, "That's bad news for environmentalists and alternative-energy seekers. It also provides keen insight into how an industry that's had a chance for years to be cutting-edge consistently goes retro in doubt."

Does the new Mustang or Charger ring any bells?

Yet, even if Kostigen is correct, and price is all that counts, Japan wins without doubt. In particular, Toyota takes over the automotive world.

Toyota's kaizen-driven manufacturing philosophy, i.e., efficiency driven, has already given the Japanese company a huge advantage over the likes of GM, Ford, and Chrysler.

More important; however, is the fact that Toyota President Fujio Cho, just recently announced to the automotive world that the hybrid powertrain is the key to Toyota's future.

Already Toyota Prius demand is far beyond supply, and a 100,000 new Prius will not fill demand in 2005. Without a real competitor, the Prius is demonstrating that it will achieve much more than "niche" production.

Yet, Toyota is only getting started.

Toyota's next hybrid, out in just a couple of months, the Lexus RX 400h hybrid, has already received more than 10,000 orders, as well as interest from another 50,000 consumers. In fact, initial demand on the RX 400h, the world's first luxury SUV, was so far beyond supply that its release date had to be pushed back.

Shortly after the Lexus 400h hybrid is released, the Toyota Highlander Hybrid will follow. Unbelievably, interest in the Highlander hybrid is even far more spectacular than the 400h hybrid.

Next year alone, Toyota could easily sell 250,000+ hybrids, if it is capable of producing that amount of vehicles.

Of course, if gas prices continue to rise, and state legislation continues to demand fewer emissions from automakers, 250,000 hybrids won't even be enough to come close to matching this year's demand.

While Mr. Kostigen is correct in noting that most car companies are not worth investing in, one certainly is, Toyota.

And that's good news for environmentalists and alternative energy seekers.