Nissan to release Altima hybrid, but CEO not yet sold on hybrid vehicles

In a speech on Saturday at the National Automobile Dealers Association convention Nissan chief executive Carlos Ghosn told 4,200 car dealers and other industry professionals that hybrids, "make a nice story, but they're not a good business story yet because the value is lower than their cost.

Of course, at the same time, Ghosn's only major other announcement was that Nissan was going to be releasing the Altima hybrid.

(Click here for the complete story)

What's better than a hybrid car? A plug-in hybrid car of course!

Imagine coming home from work in your Toyota Prius or Ford Escape hybrid and plugging it into a solar panel that produces enough free energy to get you to work and back tomorrow.

Don't believe it?

Last week, Ford reluctantly agreed to let Dave Bernikoff-Raboy, a California rancher, buy an all-electric pickup truck that he had been leasing. Mr. Bernikoff-Raboy essentially forced Ford to sell him the vehicle he loves so much because he can recharge it using a solar panel.

Gasoline electric hybrids are not just a good powertrain to help advance fuel cells, but solar and wind power as well. While Mr. Bernikoff-Raboy's truck is not a hybrid, hybrids offer much of the same potential as electric vehicles with relatively minor adjustments.

Of course, just plugging your car battery into one of your home's sockets does not result in much of a benefit to the environment, because coal typically is the ultimate source of most electricity. Plugging your vehicle into a solar powered socket, on the other hand, produces completely clean energy.

And it's free.

It's not that you have to plug it in, rather it's that you can plug it in.

University of California at Davis Professor Andrew Frank has spent the last decade turning production vehicles into plug-in hybrids using off-the-shelf parts. "We just built a high-performance plug-in hybrid Ford Explorer," he says. "It's 325 horsepower - 200 of that horsepower is electric and 125 is gasoline. This car goes like a rocket, but still gets double the fuel economy of a regular hybrid. And for the first 50 miles it is all electric - zero emissions.(Read More on this)

According to Frank, who flew his Explorer to Toyota's research facilities in Japan so engineers could pore over the vehicle, "There's no question in my mind that Toyota has plans for a plug-in hybrid right now, but they aren't talking about it," he says.

Perhaps in the future, automobile manufacturers could even incorporate solar panels into the roofs of hybrids to provide constant battery charging. Until then, home-owners, solar-roofed parking structures, and portable solar panels could still offer consumers news possibilities and very futuristic accessories.

So, why not give consumers of hybrids as many fuel choices as possible?

The innovativeness of the hybrids, particularly the Toyota Prius, is what inspires so many consumers. Moreover, professor Frank's research demonstrates that the potential of hybrid car technology is only just emerging.

Allowing consumers of such revolutionary technology to help explore that potential would not only increase hybrid car value, but inspire millions of environmentalists, no-blood-for-oil-activists, and back yard scientists.

That would truly be an automotive revolution.

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Former CIA director, James Woolsey, Promotes hybrid vehicles

"We're not talking about electric vehicles, but about plug-in hybrid vehicles that can be topped off with electricity for short trips," James Woolsey, former director of the Central Intelligence Agency, said last month during the unveiling of a report by the 16-member National Commission on Energy Policy. "The potential in terms of national policy, and in terms of global warming, ought to be focused on by anyone" concerned about terrorism or "paying over $2 a gallon."

Maybe it's just me, but when the former CIA director starts promoting hybrids because of global warming, terrorism, and high gasoline prices, those issues become even significantly more important.

How many Americans are concerned about terrorism?

A far majority I'm sure, and the former CIA director endorses hybrid vehicles as a way for consumers to help fight terrorism, which makes it a lot harder for putzes from GM's executive staff to claim that hybrids don't make business sense.

America's dependence on foreign oil has pushed the world to the brink of global, man-made disaster. Any American company that does not head this threat - choosing profit over the people's safety - can only be called one thing, UNAMERICAN.

If you are worried about the threat of terrorism, do something about it.

Demand nothing less than hybrid vehicle efficiency, not to save money on gas, but to save lives and to make the world a better place.

Join the Soultek Hybrid Car Club.

Some still plug in their hybrids

At the North American International Auto Show, signs were posted near the Toyota Prius telling visitors that hybrid cars, such as the Prius, don't have to be plugged in.

Yet, some hybrid buyers still want to plug in their vehicles, and are adding the functionality to their hybrids themselves.

A story by the Christian Science Monitor states, "In effect, these backyard mechanics have turned the hybrid car's appeal on its head. Instead of emphasizing gasoline over electric power and the convenience of today's cars, they're aiming to create less polluting higher-mileage vehicles that emphasize electricity over gasoline - even if it's a bit less convenient."

What's the point you might ask?

"We're not talking about electric vehicles, but about plug-in hybrid vehicles that can be topped off with electricity for short trips," James Woolsey, former director of the Central Intelligence Agency, said last month during the unveiling of a report by the 16-member National Commission on Energy Policy. "The potential in terms of national policy, and in terms of global warming, ought to be focused on by anyone" concerned about terrorism or "paying over $2 a gallon."

Click here for the complete Christian Science Monitor article.

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"Hybrids are an interesting curiosity" says GM's Lutz

I've gone off on GM executive Robert Lutz before, but I'm going to do it again.

"Hybrids are an interesting curiosity and we will do some," says Lutz, "But do they make sense at $1.50 a gallon? No, they do not."

This statement exemplifies everything wrong with American corporatism - everything is about short term profit, even at the expense of American lives.

Is 30 percent better fuel-efficiency on a small car really important?

Ask the fathers and mothers of soldiers killed in Iraq that question, Mr. Lutz.

Hybrid cars like the Toyota Prius and the Honda Accord hybrid are important because they demonstrate that America doesn't need to be dependent upon foreign oil.

Apparently, however, that's not important to you Mr. Lutz?

Fortunately, vehicles like the Toyota Prius and the Accord hybrid, pushed American auto companies into action. Thus, Ford released the Escape hybrid, and significantly more fuel-efficient hybrids are on the way.

The Toyota Highlander hybrid and the Lexus RX 400h hybrid will soon offer American consumers three different hybrid SUVs, with more soon to follow. While I am not a huge SUV fan, I am huge hybrid SUV fan when compared to a standard SUV.

The point is, without hybrid cars, there never would have been hybrid SUVs.

Yet, there will not be a hybrid SUV from GM until 2007 or 2008.

While Mr. Lutz can continue to putz around his company's complete lack of environmental concern, or lack of worry for American soldiers, more and more Americans have had enough.

Yes, Mr. Lutz, to many of us hybrid cars are worth the extra cost, even if gas is only $1.50 per gallon. Terrorism, pollution, global warming and Iraq, Mr. Lutz, make cheap gas insignificant if that cheap gas leads to billions of tax-payer dollars being spent on wars and military machinery to "protect" our oil interests.

If cheap gas and conventional automobiles mean that 1000s of young Americans need to die to ensure GM's poor business practices will continue to be profitable, then yes, I absolutely demand a hybrid car, Mr. Lutz.

And it's not just me. Millions of Americans are more than willing to spend an extra few thousand dollars to help save one American life, let alone thousands, sir.

At some point, Mr. Lutz, doing the right thing is more important than money, even for a huge multinational corporation like GM. Ignore that fact at your own peril.

1,000,000 hybrids within 5 years, powertrain analysts predict

According to the article, Panel of powertrain experts sees strong growth for hybrids, "The success of the Toyota Prius, Honda Civic Hybrid and Ford Escape Hybrid has forced manufacturers to build more gasoline-electric hybrids."

"We had no idea where the market would go when we were doing this. We are working to increase capacity. We have a plan in place. We will look at many potential partners," stated Mary Ann Wright, Ford's director of sustainable mobility technologies and hybrid programs.

According to the article, a recent study by the Automotive Technology Research Group in Thousand Oaks, Calif. found that as many as 50 hybrid vehicles could be on the market in five years, resulting in annual North American sales of 800,000 to 1 million units.

In addition to the Honda Accord hybrid, which was released in mid-December, three additional models will hit the street this year, the Mercury Mariner hybrid, the Lexus RX 400h, and the Toyota Highlander hybrid.

The Ford Escape Hybrid is nice, but a F-150 Hybrid Pickup would be great

I love Ford's new Escape hybrid ads, The difference between a full hybrid and a mild hybrid is the difference between a bell pepper and a habanero.

In terms of trucks and SUVs, Ford is a kind of king right now. The only full hybrid SUV, the Ford Escape hybrid, is also the only American-made hybrid.

Hold on, now, what about the Chevrolet Silverado Hybrid?

Well, I think Ford's pepper analogy is pretty good, but let's just say the Silverado hybrid is a pseudo-hybrid. It's just not in the same category as the Escape hybrid.

But Ford is about to face extreme competition in the hybrid SUV space soon. Already the Lexus RX 400h hybrid SUV has spawned more than 11,000 presales, while still a few months away from market launch.

The Ford Escape has not yet reached that number of sales, even though it has been on the market for several months already.

Of course the Lexus hybrid isn't the perfect match for the Escape hybrid, but the Toyota Highlander hybrid certainly is. Already, Toyota is receiving phenomenal interest in what will be it's third hybrid model, and the Highlander hybrid will definitely move more than 1,000 units per month.

Based on Toyota's experience with hybrids, in addition to the fact that Ford pays a license fee to Toyota every time it sells a hybrid, Toyota has incredible leverage in this race.

The one place that Ford has the greatest leverage; however, is in its truck brand.

In 2004, the Ford F-150 continued it's dominance over the American market, selling almost 1 million last year and around 250,000 more than its next competitor, the Silverado.

While the Silverado is only a mild hybrid, it still provides GM the ability to use that word, hybrid.

Using the Escape hybrid to offset some of the leverage gained by the Silverado hybrid and its parent, GM, isn't a bad idea. Fighting it with a full hybrid Ford F-150 Hybrid PickUp; however, would help shelter Ford's most important market segment far better than any SUV hybrid.

More hybrid cars.

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Hybrid cars are here today, fuel-cell cars might not ever arrive

I believe that one day most people will drive fuel-cell automobiles, but that day could easily be a few decades away. Yet, pollution and smog - much of it from automobiles - has been scientifically proven to be, minimally, a serious health threat.

Action needs to be taken immediately, not only to clean the environment, but to minimize our foreign-oil dependency.

Two decades is simply far too long to wait for significantly more efficient automotive technology via fuel cells.

Hybrid vehicles, such as the Toyota Prius, Honda Accord hybrid, or Ford Escape hybrid have the ability to empower the average citizen and consumer to help make the world a better place - by having a direct impact on issues which polls show are becoming increasingly more important to the average American citizen.

If you are interested in learning more about some of the key issues regarding fuel cells and the hydrogen economy, PopSci.com is running a great article on the subject.

(Click here for the PopSci Article)

The U.S. hybrid market in 10 years, 3% or 18%?

Many consumers and automotive analysts think hybrid cars make little sense, and see them as only being relevant to "environmentalists".

Analysts from J.D. Power and Associates have long forecast hybrid vehicles as a relatively inconsequential, interim technology along the path to fuel-cell vehicles. Anthony Pratt of Power has stated that hybrids will, at best, achieve just 3% of total U.S.light vehicle sales.

Considering the costs to create a new production line of hybrid vehicles, just 3% of the market would never recover hybrid development costs.

Of course, other analysts, such as Germany's B&D Forecast GmbH, see hybrid vehicles making up almost 20% of the U.S. market within 10 years.

Moreover, at the North American International Auto Show, Toyota announced that the hybrid powertrain was the powertrain of the future for Toyota.

How can this be, with fuel-cell powered cars just down the road?

A recent MotorTrend article by Frank Markus points out that mass-produced fuel-cell cars might still be 20 years or more from reality, but that "these fuel-cell vehicles will be hybrids, uniting hydrogen and air as a primary means of generating electricity, but relying on some sort of onboard energy storage device as a backup."

Later Markus notes, "It stands to reason that the company with the most experience tuning and integrating gas/electric hybrids may be in the best position to design and develop fuel-cell vehicles....."

This appears to be Toyota's thinking.

Therefore, just 3 percent of U.S. sales seems like an extremely low prediction for hybrid cars, especially if such technology can be slowly adapted and morphed into the first generation of fuel-cell cars.

While environmentalists can appreciate this vehicle, as can those whom feel wars in Iraq and problems in the Middle East are significantly due to America's dependence on foreign oil, the real reason hybrid vehicles will achieve far more than 3% of the U.S. market is technological.

Hybrid vehicles represent the best, functional, technology available for the mass market. In the next 5 years, hybrids will simply be superior to just gasoline or diesel powered vehicles.

More important, any significant development in either gasoline, diesel, or hydrogen engines can also be utilized in hybrids, while also paving the way to pollution-free fuel cells.

Help make a better future, check out a hybrid.

More on hybrid cars.

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German study sees U.S. hybrid market at 10% by 2012

An important German automotive industry newspaper, Automobilwoche, is reporting that German auto-analysts are forecasting the US market for hybrid vehicles to exceed 10% of the total light vehicle market by 2012.

Moreover,German auto analysts from B&D Forecast GmbH, also believe that sales of hybrid light vehicles will increase from just 83,000 units in 2004 to three million units by 2015, almost 17.7% of the current total US light vehicle market.

Earlier today J.D. Power and Associates forecast that by 2008, 30 hybrid vehicle models will be available for sale. However, Power forecasts that hybrid sales probably won't surpass much more than 3 percent of the U.S. auto market - ever.

Despite the discrepancies in American and German auto analysts, like their American counterparts, European auto-manufacturers fear being left behind.

Last year Toyota sold almost 54,000 Prius cars, and the hybrid leader will be launching the hybrid Highlander and the Lexus RX400h hybrid later this year. Honda, Toyota's Japanese contender, sold 25,700 hybrid Insights, Civics and Accords in 2004.

The Ford Escape hybrid, the only real American contender, has moved about 1000 units per month since its Fall launch, a small percentage of overall hybrid sales.

Join the Soultek Hybrid Car Club to stay informed on this issue.

Hybrid vehicle sales for 2004 rise almost 100 percent

According the Mercury News, automakers recently reported hybrid car and truck sales for 2004, and sales of seven gas-electric vehicles rose almost 100 percent to 85,699 hybrid vehicles sold, compared to 43,435 in 2003.

The Toyota Prius accounted for 63 percent of total hybrid vehicle sales, at 53,991 units sold.

The Honda Accord hybrid, which was only on sale for a few weeks in 2004, sold almost 1,100 units in just part of December.

Similar to Accord hybrid sales, the Ford Escape hybrid is averaging about 1000 sales per month since October, when the Escape hybrid was released.

Other hybrid vehicles on sale in 2004 included the Honda Insight, Honda Civic hybrid, as well as the Chevy Silverado hybrid, and the GMC Sierra hybrid pickups.

Automotive analyst, Anthony Pratt of J.D. Power and associates noted, "The fact that all vehicle manufacturers have a hybrid strategy is significant."

According to Matt Nauman of the Mercury News, "Power, the Westlake Village researcher, projects that U.S. hybrid sales will reach 222,000 this year and 500,000 by 2009. If that prediction comes true, hybrids would account for nearly 3 percent of the U.S. car and truck market in 2009. In 2004, hybrid sales represented about 0.5 percent of the 16.9 million vehicles sold."

With the Lexus RX 400h hybrid, the world's first luxury hybrid SUV, and the Toyota Highlander hybrid coming to market in 2005, those numbers seem light.

Power predicts significant hybrid growth for 2005, but then the auto researcher seems to think demand will slow through 2009, even as the hybrid field expands to 30 models by 2008 - that's less than 20,000 units per year for each hybrid model.

That seems like quite a sudden drop in hybrid momentum, just as the hybrid field finally gets competitive, as well as an awful waste of time for automobile manufacturers.

Hybrid cars and Federal Income Tax Reductions

Hybrid cars such as the Toyota Prius, Honda Civic Hybrid, and possibly the Ford Escape Hybrid qualify for a one-time federal income tax deduction of up to $2,000.

Consumers that purchase one of these hybrids in 2005 can utilize the Clean Fuel tax deduction on line 32 of your 1040 tax form.

Unfortunately, this deduction will be reduced to $500 in 2006, and this tax credit is scheduled to be phased out completely in 2007 under current legislation.

At this time, I have not obtained proof that the Honda Accord Hybrid qualifies for this credit.

Additionally, I do not know whether the Lexus RX400h Hybrid or the Toyota Highlander Hybrid, due out later in 2005, will qualify for this tax credit. If; however, the Ford Escape Hybrid qualifies, then I would assume the Highlander might also qualify.

I would be surprised and delighted, but not shocked, if the RX400h hybrid qualifies.

Join the Soultek Hybrid Car Club to stay informed about this issue.

My spin on today's hybrid hype

Today's article, Crossovers and hybrids may never live up to their hype, by John McCormick makes me go, hmmmm?

"Turning to hybrids, I continue to wonder at the gullibility of the general public and automotive journalists who should know better. Any honest automotive engineer will tell you that the concept of a vehicle with two engines doing the job of one is nonsensical."

Now, I'm not questioning Mr. McCormicks journalistic integrity, I'm sure his knowledge of automotive engineering is much greater than mine, but I have just one little problem with that statement, Toyota.

The President of Toyota, a growing giant in the auto industry and destined to be the world's largest automaker, has gone on record stating that hybrid powertrains are the powertrain of the future for Toyota.

While much of auto an show is marketing spin, and not all announcements should be taken literally, am I missing something here? Is Toyota doing the "nonsensical" thing because they are trying to trick America?

Why would Toyota waste its time on "nonsensical" automotive engineering?

And if one engine is better than two, why does using two make the Honda Accord Hybrid faster, more powerful, and more efficient than a similar, conventional Accord?

Still, Mr. McCormick does offer hybrids one caveat, kind of. "The only condition in which a gasoline-electric hybrid will return better mileage than one of today's most advanced gasoline engines, let alone a diesel, is in city driving, when regenerative braking plays a significant role."

O.K., to start, "today's most advanced gasoline engines" aren't found in today's cars and they cost significantly more money. Additionally, the standard gasoline engine in a hybrid could be replaced by an advanced gasoline engine and achieve 25 percent more efficiency than the advanced gasoline engine by itself.

The same is true for diesel. Already, Ford, GM and ChryslerDaimler have diesel-electric hybrid vehicle concept cars because of this fact. As a side note, the same is true of hydrogen powered engines. Hydrogen-electric hybrids are just as plausible as gasoline, or diesel-electric hybrids.

Of course one must ask whether the cost is worth the price, and which, if any, combinations work best. Right now, in the U.S., gasoline-electric hybrids make the most sense.

Today's full hybrids, such as the Toyota Prius or Ford Escape hybrid, in city driving, achieve significantly better mileage than today's conventional cars or diesels, with far less pollution, but it's hard to put a price or value on reduced pollution.

Because of price, some analysts have pushed for new diesels as a way to achieve the same efficiency as with hybrids. Even McCormick states, "With a normal diet of city and highway driving, a hybrid will actually consume more fuel than a diesel powertrain".

First, passenger diesels are not even legal in the Northeast or in California, so until the law is changed, why does this issue even come up? Diesels are not even an option for a huge percent of American drivers, legally.

Second, a hybrid diesel could still be 25 percent more efficient than just a diesel. More important, hybrid technology is new, and getting better all the time.

So, concludes McCormick, "As for hybrids, they will likely continue to carve out an expanding niche in the U.S. market. While I find their evident shortcomings annoying, I can understand the sub-conscious appeal of driving a vehicle perceived to be environmentally-friendly. This became clear while I was driving a Chevy Silverado hybrid recently.

Even though the truck costs $2,500 more than the standard version and still managed only 14 miles per gallon overall in my hands, somehow I felt more righteous than all those non-hybrid full-size pickup drivers on the road.

It's hard to put a price on that."

To me, there is a little tongue-in-cheek in that statement. More important, the Silverado is a mild hybrid. It is not in the same league as a Prius or Escape hybrid. Mild hybrids are not nearly as fuel efficient as full hybrids, nor nearly as environmentally friendly.

But, hey, what is 25 percent better fuel efficiency anyway? Of course, according to experts, if Americans nationwide reduced their fuel consumption by that much, America could end foreign oil-dependency.

If that were the case, there might have been a few less American deaths in the Middle East these last few years.

Of course, it's hard to put a price on that.

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On the other side of hybrid car hype

Now Mr. McCormick might not think much of the dollar value of green issues, but the Natural Resources Defense Council thinks of hybrids as significantly more than just a green issue.

"This is a do-or-die situation for a vital American industry. We cannot afford to lose the fight," said Roland Hwang, Vehicles Policy Director at NRDC (Natural Resources Defense Council). "The answer is simple: Compete. Build the best damn cars and trucks in the world, and build them with the clean, efficient technology the market needs now. That means hybrids."

"We need to reduce our dependency on foreign oil. We need to invest in America's factories, rather than sending our dollars overseas to oil-rich areas of the world that are unstable and increasingly hostile to our country," Hwang said. "That means we need to end the stand-off and start delivering real solutions."

Click here for the complete NRDC article, "USA: Detroit faces ‘do-or-die fight’ and must go for hybrids - NRDC analyst"

More hybrid car hype talk

Interesting article this morning, Crossovers and hybrids may never live up to their hype. The author of the article, John McCormick, doesn't like hybrid vehicles. "Turning to hybrids, I continue to wonder at the gullibility of the general public and automotive journalists who should know better. Any honest automotive engineer will tell you that the concept of a vehicle with two engines doing the job of one is nonsensical."

Except in city driving, McCormick does note. That fact; however, is apparently insignificant to McCormick, even though the majority of Americans drive in such conditions, and such conditions are gross contributors to smog and global warming.

Those are just nonsensical "green" issues to McCormick.

Nonetheless, despite McCormick's dislike of hybrids, "So, is the future bright for.....hybrids? The answer is a qualified yes."

Anyway, I'll be covering this article in more depth later, but click here to read Mr. McCormick's for yourself.

The Hybrid Car Hustle

What's up with Detroit? Last week, at the North American International Auto Show, probably the most important auto event in the world, the word on the floor was hybrid vehicles.

Even Truck of the Year, an especially important American customer segment, went to a hybrid, the Ford Escape Hybrid.

GM and DaimlerChrysler introduced a diesel-electric hybrid concept vehicle, and re-announced full hybrid versions of the Tahoe and Yukon, followed by a full Sierra / Silverado hybrid.

Not to be out done, Ford announced that the Mercury Mariner hybrid would reach the market this year, a year earlier than expected. Then Ford upped the ante by announcing not only a hybrid Freestyle, but also a Mazda Tribute hybrid, a Mercury Milano hybrid, and a Focus hybrid, with all models expected to reach market within three years.

Then Toyota, gaining on GM as the world's largest automaker, unwilling to lose face in light of Ford's hybrid hustle, went all in.

This year not only will Prius demand be met, but Toyota will announce where it will start building hybrids, such as the Prius, in the United States.

Moreover, Toyota announced to the world that the hybrid powertrain is the future for Toyota. Yes, gasoline engines might be improved, or diesel, hydrogen, or fuel-cells, but the hybrid powertrain, Toyota believes, can make each of those power sources better.

Toyota's next hybrid, the Lexus RX400h Hybrid, already has received more than 11,000 pre-orders. Additionally, interest in the Highlander hybrid is off the wall by industry standards.

Already Toyota is expecting to sell at least 100,000 Prius hybrids in 2005, yet the buzz building around the Highlander hybrid seems to indicate that the Highlander hybrid, an SUV, could be even more popular than the Prius.

Recently, Ford announced that it will easily sell 20,000 Escape hybrids in 2005, and if more hybrid batteries are located, they will produce even more.

Since the Escape hybrid uses leased Toyota hybrid technology, the price of the Highlander hybrid, with its price advantage, is going to be interesting. More importantly, what if Toyota can price the Highlander significantly less the Escape hybrid?

Why not try to steal some thunder from the North American Truck of the Year, the Ford Escape Hybrid? The opportunity facing Toyota couldn't be greater.

The Toyota Prius proved that a small, affordable, very fuel-efficient vehicle, could feel like the most innovative car ever created. But America loves SUVs, and an affordable, hybrid performer, could take that segment by storm.

Toyota's experience with hybrids bodes well for the Highlander hybrid, and I believe the Highlander hybrid has crazy American potential. American consumers aren't nearly the neanderthals the world believes. Show us we can help and we will. Well, hybrids help.

Ford and GM are not out of it yet though. While GM has dramatically and rapidly changed its position on hybrids, Ford appears to be building momentum. In addition to their more bullish position on hybrids, their commitment to hybrid cars, as well as hybrid SUVs, gives them a notch up on GM.

Honda is a wild card in the hybrid race, with the Accord hybrid and Civic hybrid already on the market, Honda could easily transition to a hybrid only automotive world - at least much easier than Ford, GM, or DaimlerChrysler.

Toyota is the one with the most to gain or lose from the hybrid hustle.

The leader has to set the pace. While Toyota has a big lead they can either move methodically, but cautiously into hybrids, playing it safe, but also allowing the competition time to reposition; or Toyota change the playing field forever.

The conundrum for Toyota will be supply and demand. The demand for affordable hybrids is without question. Based on customer interest and sales figures, by 2006, it is not hard to imagine Toyota selling 400,000 hybrid vehicles in the just the U.S. - even while more highly priced - but are they capable of meeting that level of production?

By that time, GM might not have yet sold one full hybrid in the U.S.

Furthermore, at 400,000 a year the afford-ablility factor between hybrids and conventional vehicles is reduced, especially in addition to Ford and Nissan license sales. Moreover, conventional cars will start meeting higher pollution standards in the next couple of years and those changes will inevitably lead to higher costing conventional vehicles.

Toyota's next few hybrid plays are sure to be interesting.

So hybrids aren't good business Mr. Lutz?

Several times on this blog I've posted quotes from GM Executive Robert Lutz, who argues that hybrids are only "emotional" or that they don't make "business sense".

Now Mr. Lutz, General Motor's "new-car czar" according to BusinessWeek, is making risky moves to save Saturn.

Lutz, who recently claimed that hybrid cars such as the Toyota Prius and Honda Accord Hybrid don't make business sense, is creating a Saturn Sky Roadster to save Saturn.

This is the kind of move that makes sense in the world of Lutz.

Now, Saturn does have a history of buyer loyalty, so I can understand trying to save Saturn, in fact I agree with saving it. Business sense requires taking care of loyal customers, but let's play with some numbers just for fun.

Saturn is already losing $1 billion per year, and another $800 million is to be spent to update Saturn production.

Recently, Lutz argued that a $100 million investment in hybrid cars didn't make business sense. So, investing almost a billion more in something that loses a billion per year is an example of good business sense?

Even worse, the new Sky Roadster will sell for more than $20,000.

The Toyota Prius lists for $19,000. The Prius is incredibly fuel efficient and offers great performance and comfort for four - there is more leg room in the back of the Prius than the Ford Escape hybrid.

The Roadster might be a very good vehicle, but it will certainly not match the technological advances of something like the Prius. In my opinion, one car exudes the future, the other the past.

Not long ago, a struggling Nissan was taken over by Renault, and our Mr. Lutz stated that Renault could have just as easily thrown the $5 billion into the Pacific Ocean and end up with the same result.

Just six years later, Nissan has the highest profit margins in the auto industry.

Regardless of what happens to Saturn, I feel good about Lutz's negative statements regarding hybrids. Based on his Nissan predictions, hybrid cars are sure to dominate the market even faster than the most optimistic hybrid adopters.

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20,000 Toyota Prius for Europe

The Toyota Prius hybrid car is not nearly as coveted in Europe as in America, but interest is growing. Of course Toyota only owns 5 percent of the European market, and cars sold in Europe are typically already much more efficient than cars sold in America.

Still, the Prius was voted Car of the Year in Europe.

As a result, Toyota is hoping to sell about 20,000 hybrid cars in Europe this year, versus the 100,000 it intends to sell in the U.S. In comparison, both the Honda Accord hybrid and the Ford Escape hybrid are expected to also reach the 20,000 unit mark in U.S. sales.

Johnson Controls creates new NiMH battery for hybrids

Johnson Controls Inc. unveiled a new NiMH battery at the North American International Auto Show last week that "positions the auto parts maker to take advantage of the growing market for gasoline-electric hybrid vehicles," according to an Auto Insider Report.

The company has been making similar batteries for hybrid buses in Europe. The new battery has refined those batteries to be used in today's hybrid cars.

"We're right on the cusp of [hybrid] technology," said Erich Merkle, senior auto analyst for Grand Rapids-based consultant IRN Inc. "Toyota's goal is to make [the] hybrid [car] more commonplace, and the Big Three are really forced to follow. Hybrids are going to be a real growth segment."

Both Toyota Prius and Ford Escape Hybrid production have been slowed due to an inadequate supply of NiMH batteries.

For the complete article from the Detroit News, click here.

New Toyota Hybrid Car Plant at NUMMI in California?

At the North American International Auto Show, Toyota President Fujio Cho reiterated Toyota's plans to open a new hybrid car plant in the United States, though where and which cars were not announced.

By midyear, Cho stated, those questions will be answered.

Many are speculating that there is a good chance that Toyota's New United Motor Manufacturing Inc., or NUMMI, plant in Fremont California might be used.

California's Governor, Arnold Schwarzenegger, on a recent trip to Japan, pushed hard for a hybrid vehicle production facility in his state.

Since more Prius hybrids are sold in California than in any other state, and since California recently passed stringent vehicle emissions legislation, many think such a move to NUMMI would provide a very powerful message to competitors.

Cho stated, "Not just economic and technology factors but also strategic factors will be considered. I think it is too early for us to make a decision, no state is excluded from our consideration."

Of course, the future of hybrids might not reside with cars, such as the Toyota Prius, or the Honda Accord hybrid. Instead, the future of hybrids might revolve around hybrid SUVs.

Toyota will release the Lexus RX400h Hybrid SUV and the Toyota Highlander Hybrid SUV this year. Whether those cars will fit into Toyota's U.S. production plans is yet to be seen, but initial interests in both vehicles has been overwhelming and unexpected.

Join the Hybrid Car Club to stay informed.

Toyota Highlander Hybrid More Popular the Prius

Apparently, the U.S really is the land of the SUV.

My favorite car in the world is the Toyota Prius, and a lot of other people feel that way as well. Yet, for all the excitement around the Prius, the Toyota Highlander Hybrid SUV might cause even longer lists and more buzz than the Prius.

While the Highlander Hybrid is not due out until June or July of this year, more than 100,000 people have already told Toyota that they are interested.

Right now, the Ford Escape Hybrid is the only hybrid SUV available. While the Lexus RX 400h hybrid SUV will be released in April, the Lexus isn't the best competition against the Escape hybrid.

On the other hand, the Highlander hybrid is a perfect match for comparison, and many potential hybrid SUV buyers will be testing both vehicles.

In an effort not to let Toyota assume all the hybrid SUV buzz, Ford recently announced that the Mercury Mariner SUV hybrid will also hit the streets this year, a year earlier than expected.

One thing is clear, this will be interesting summer for hybrid SUVs, especially if supply is able to match demand.

Are hybrid vehicles killing alternative fuel vehicles?

Is hybrid car success destroying the alternative fuel car market?

That's the point of an AP article in today's DetroitNews by Tim Molloy, where Mr. Molloy points out that while many alternative fuel vehicles actually get better gas mileage than hybrids, they are being discontinued because of hybrids.

Automakers insist they couldn't acquire enough sales to make the vehicles cost-effective, even though most consumers like the automobiles.

"We invested more than $1 billion to make a commercially viable business out of our electric vehicle program," said GM spokesman Dave Barthmuss. The electric car didn't catch on "because it forced people to make too many trade-offs in their transportation lifestyles."

Such trade-offs include 8 hour charging times, or the inconvenience of only being able to fill up at certain stations.

"We basically decided it was more important that we focus on the hybrids and the hydrogen," she said, "which is where the market is going," notes a Ford spokesperson.

Click here for the complete AP article.

How can GM think hybrid cars make no sense?

GM executive Robert Lutz not only thinks all hybrids are just PR hype, he believes hybrid cars make no business sense. Only hybrid trucks and SUVs, argues Mr. Lutz, make sense because the cost of hybrids is too high to justify a 30 percent gain in fuel-efficiency in cars.

While Toyota disagrees, Mr. Lutz is sure not to gain any new environmental credentials with that kind of cost-justification.

Yet, Mr. Lutz has tried to argue "For Toyota, it(the Prius) was a huge, huge, immeasurably valuable PR coup."

A huge PR coup?

Isn't successful PR and marketing part of a successful business? Isn't that why GM will spend about $300 billion on marketing this year alone?

Apparently, that is not part of Mr. Lutz's business sense.

Hopefully, not all GM executives have the same business sense as Mr. Lutz.

More hybrid cars.

Two More Ford Hybrid Cars

The hybrid vehicle revolution is just beginning.

While Toyota is the leader in hybrid cars, Ford appears to be ramping up to meet this new market demand.

The Ford Escape Hybrid is Ford's only hybrid, but not for long. Ford has already pushed the release of it's newest hybrid SUV, the Mercury Mariner hybrid, up one year.

Additionally, Ford recently announced the addition of the Ford Fusion Hybrid, and the Mercury Milan Hybrid, and now you can add two more. Ford will also be producing a Freestyle Hybrid and a Five Hundred Hybrid. Thus, Ford hopes to have 6 hybrids on the market within three years.

The more compelling thing about Ford, unlike GM, is its commitment to hybrid cars, rather than just hybrid SUVs.

While Ford is the undisputed leader of hybrid SUVs - it's the only one on the market - this space of the hybrid market will be heating up quickly.

Later this year, Ford will have two hybrid SUVs on the market, the Escape hybrid and the Mariner hybrid. Within three years, a hybrid powertrain will also be added to the Freestyle.

Additionally, Toyota will also have two hybrid SUVs on the market this year. The Lexus RX 400h Hybrid and the Toyota Highlander Hybrid will be out in April and June, respectively.

By 2007 GM, will have the GMC Yukon Hybrid and the Chevy Tahoe Hybrid.

Honda, on the other hand, has been committed to hybrid cars, such as the Accord hybrid, but don't be surprised to see a Honda hybrid truck or SUV in the near future.

Competition in the hybrid SUV market is good for all hybrids and hybrid consumers. More important, it's good to see one American auto-maker taking the challenge seriously, and not just with trucks and SUVs, but sedans as well.

Join the Soultek Hybrid Car Club.

GM "Missed Boat" on hybrid cars

Hybrid cars are just an emotional piece of marketing, according GM vice chairman for product development, Bob Lutz.

"We business-cased it, took a hard, analytical look and thought the engineering and investment were irresponsible vis-a-vis our shareholders," he said. "We failed to appreciate what Toyota has basically treated as an advertising expense."

Really. An advertising expense?

Yet, not only does Toyota maintain that it makes money off every Prius it sells, but that hybrids are the powertrain of the future for Toyota. Additionally, Toyota is also making money off leasing its hybrid technology to Ford, for use in the Escape hybrid, and Nissan will also be using the technology for its Altima hybrid.

Perhaps it might be nice if GM focused on customers, just once, rather than shareholders. GM vehicles are created for customers, not shareholders.

"From a strict business proposition, this is not where we would make an investment," said Lutz. "It's not clear that you'll ever be able to recapture the cost of a hybrid in the pricing. But what we forgot in the equation was the emotional aspect of it."

Hmmmm, Mr. Lutz. I guess the fact that Toyota credits the Prius as a main reason for overtaking more of GM's American market-share wasn't an important consideration in your decision making criteria?

Maximizing profit in the short term, at the expense of the long term doesn't sound like rationale investing.

In hindsight, "we should have said, 'We'll lose $100 million a year on hybrids, but we'll take our advertising budget of $3 billion, make it $2.9 billion and treat it as an advertising expense,' " he said.

"Toyota very cleverly has used hybrids to gain an improved perception of the brand."

Improved perception, Mr. Lutz? Two words for you, sir, Resale Value. Toyota has it, you don't.

"Since we've made a major commitment, I don't want the market to go away."

Why not if hybrids are only a marketing ploy? Why keep wasting 100 million per year on marketing your weaknesses?

It's really pathetic that GM and Mr. Lutz just can't admit mistakes. It took Toyota 9 years to really make the Prius a winner. That kind of innovation and development is certainly not some marketing ploy, it's responsible R&D.

American automakers, such as GM, didn't miss the boat on marketing the perception of a better product, they missed the boat on creating the best automotive products.

That's not what you expect from the world's largest automaker. Of course with that kind of leadership, or lack thereof, GM won't maintain that title for long.

More 2005 Hybrid cars.

Accord Hybrid and Toyota Prius Competition 3 years Away

The Honda Accord Hybrid and Toyota Prius will have to compete against each other for the next 3 years.

Ford does plan to challenge Japan in the hybrid car space, but the Ford Fusion and Mercury Milan sedans will not be on the road for at least two years, and probably closer to 3.

GM, on the other hand, is mostly focused on hybrid SUVs and trucks.

Honda isn't as bullish on hybrids as Toyota. While Toyota plans to sell at least 100,000 Prius this year, Honda is only planning to sell about 20,000 Accord hybrids.

In three years, when Ford does release its first hybrid cars, Toyota will also have added several new models into it's hybrid offering, including the Camry hybrid.