Toyota Prius leads way to Oscars

"About 15 celebrities including Gwenyth Paltrow, Natalie Portman, Scarlett Johanson, Leonardo DiCaprio, Robin Williams, Orlando Bloom, Salma Hayek, Charlize Theron, Penelope Cruz, Morgan Freeman, Julie Delpy and Tim Robbins are all pulling up to the red carpet in hybrid cars," at the Oscars according to MotorTrend.

This is the third year Global Green, the American branch of Green Cross International run by Mikhail Gorbachev, asked celebrities to use their status to help the environmental cause. Toyota lent its Prius hybrid for 'green celebrities' to arrive at the Oscars, rather than arriving in a limo.

"With global warming threatening us all, driving a fuel efficient car like a hybrid is something that everybody can do to protect our planet. I am proud to do my part. I personally own and drive a hybrid car. And I love it!" Hayek said.

Canadian pricing for Lexus RX400h hybrid announced

Lexus Canada today announced the 2006 Lexus RX 400h, the world's first luxury gasoline/electric hybrid SUV, will be available in two trim packages with a suggested retail price starting at $62,200.

The RX400h will go on sale in Canada in April.

GM and Ford stock? Sell

That was the word on CNBC this morning. While Nissan is the current darling of the auto industry because of its quick financial turn-around, Toyota is the monster in the automotive world. While hybrid cars are still dismissed by many, analysts covering Toyota always mention the success of the Toyota Prius when discussing its growing market-share.

If hybrids are so insignificant, how is it that the Prius, and Toyota's hybrid powertrain, is almost always found in any economic forecast for the future of Toyota?

Hybrids helping drive new car rental companies

Renting green cars has become popular, as well as an expanding business model according to a NYTimes article.

Bio-diesel, natural gas, electric, and hybrid are now available at many car rental companies across the United States and becoming more popular. Hybrid cars such as the Toyota Prius, Civic hybrid, and Ford Escape hybrid are leading the way, but demand from fleets, like consumers, far outweighs hybrid supply.

Thank you Toyota hybrids

Recently, I have grown a bit frustrated with Toyota. Why can't they make more Prius hybrid cars? Why did the Lexus RX400h and the Highlander hybrid have to have their market releases pushed back?

My desire for hybrids to take over the automotive world just isn't rationale at this point in time.

Automotive experts, particularly competitors, are confident that the Prius does not make money, nor do they expect any of Toyota's next hybrids to make money either - at least in 2005. The fact is, it has been terribly expensive for Toyota to accomplish what it has accomplished with hybrids.

Basically, every expert in the world laughed at Toyota's hybrid car endeavors for years, until demand for the 2004 Prius slapped every one of those analysts in the face. And Toyota has had to go it alone, without the help of a vast supply network. So the progress Toyota has made is all the more remarkable, while the lack of progress made by almost every other auto-maker, is all the more disappointing.

Now, places like California, Canada, even the U.S. legislature are demanding that automakers take action. Hybrids have proven that there is another way, not in some fantasy future, but today.

When the CIA and Pentagon describe foreign-oil dependency and global warming as great threats to American security, how long do you wait before contributors to U.S. foreign-oil dependency and global warming are also named co-conspirators against the security of the United States?

Often GM, for example, tries to equate itself with Americana. Not my America, brother. Dumping your waste in my land, polluting my lungs, threatening the environmental stability of the world, while maintaining and supporting an oppressive, robber-barron-like foreign-oil dependency for America is not patriotic, rather the antithesis of patriotism.

America is about freedom and independence, or at least that was the idea, right? Gas-guzzling reduces freedom and independence according to the CIA and the Pentagon.

How dare American corporations risk my freedom and independence for their short term profit. If American auto-corporations represent patriotism, then I say it's time to revolt.

Thanks Toyota.

Canadians anger automakers with feebate talk

Canada's legislators want the auto industry to do more to increase fuel efficiency, while reducing emissions. One such approach was to charge a 'feebate scheme that would tax gas guzzling vehicles and offer rebates on fuel-efficient cars and trucks," according to GlobeandMail.

Automakers said it wasn't their responsible to shape consumer interest via ads and promotions. Excuse me? Isn't that what marketing is, and don't automakers already shape consumer interest in favor of gas guzzlers with slick marketing ads and promotions?

Ultimately, automakers were hoping that Canada would create government sponsored tax rebates for consumers of fuel efficient vehicles. Automakers pointed out the tax rebate for hybrid cars in the U.S. as one possibility for Canada.

Best Lexus RX400h Hybrid Review thus far

Lexus' math triumph by Dan Neil is really the best review of the Lexus RX400h hybrid, and in some ways, the hybrid car segment. "Overall, though, the RX 400h feels like a masterpiece of both engineering and accounting. Will Toyota make its money back on this generation of hybrids? Only the board members know for sure. But it seems clear that for Toyota, accounting is a form of martial art, like judo: It's all about leverage." (LATimes)

Honda hybrid buzz?

I love the Honda Accord hybrid. It's just a great automobile, and I've received numerous e-mails from very proud and happy Civic hybrid owners.

Yet, there is little Honda hybrid buzz, and I wonder what Honda's vision of the future is.

The Toyota Prius, Toyota claims, has had a significant effect on Toyota's fuel-cell car development. In fact, the success of Toyota's Hybrid Synergy Drive, driven by Prius development and production, has pushed Toyota to believe that its fuel-cell vehicles will be fuel-cell-electric hybrid vehicles.

Therefore, every hybrid purchase is a significant investment in Toyota's fuel-cell technology, as well as its future as an automotive company.

Honda's hybrid vision has taken a different path. Honda's hybrids are less a step towards fuel cells, except, arguably, the Insight. The Accord and Civic hybrids, it appears, are not as integral a step towards fuel cell development as is the Prius, Lexus RX400h or Highlander hybrids.

Toyota's Ace card is the fact that it has intertwined it hybrid development with its fuel cell development. This makes Toyota's hybrids more of a long term investment, while still solving short-term needs such as reduced pollution and global warming, or reduced foreign-oil dependency.

While I think Honda is still well-positioned for a surge in hybrid interest, the lack of buzz around Honda hybrids compared to Toyota hybrids seems to demonstrate that Toyota is far ahead of the rest of the automotive world and is setting itself up for massive, future marketshare.

Will 36,000 Highlander hybrids be enough?

Currently, Toyota is planning to produce 36,000 Highlander hybrids per year, and this won't even come close to fulfilling demand.

While Toyota is trying to consistently ramp up it's hybrid vehicle production capabilities, the interest in hybrids continues to grow at a much faster rate.

Toyota has consistently been able to increase production rates faster and faster on its hybrids, but manufacturing capabilities have not allowed Toyota to come close to matching demand.

This trend will surely continue for some time. Nonetheless, I think Toyota hybrid car production will, minimally, increase by at least 50% per year or more. Within 3 years, Toyota will be making at least 500,000 hybrids per year, in addition to leasing the technology for another 100,000 hybrids, such as the Ford Escape hybrid, Mercury Mariner hybrid, and Nissan Altima hybrid.

Hybrid vehicle fleets wanted

According to USAToday, "Local governments, rental car companies and other fleet operators wanting to join the "green" car revolution are seeing red over long waits for popular gas-electric hybrid vehicles."

The Toyota Prius and the Ford Escape hybrid top the list of coveted hybrids by fleet managers, but both Ford and Toyota have been unable to meet neither consumer, nor fleet, demand.

Automobile alliance manufacturer propaganda

The Alliance of Automobile Manufacturers has been releasing the same press release before autoshows throughout the Midwest. "99% Cleaner Vehicles Now Available to Consumers in Showrooms".

While the Alliance is currently fighting clean air restrictions about to be required by California legislation, U.S. legislation, and Canadian legislation, it is apparently - once again - trying to put the blame on consumers. "We're making them, demand just isn't there. We don't need government legislation, just consumer interest. It's too expensive."

Lies, lies, lies.

Lines and waiting lists for every hybrid vehicle available. Protests against GM and Ford for ending electric car production.

Are automakers really trying to appease consumers, or shareholders?

U.S. reliance on imported oil has become "a national security imperative."

Rep. Sherwood Boehlert, R-N.Y., who chairs the House Science Committee, says he wants to add tougher fuel-economy standards to energy legislation. In the past two sessions of Congress, Boehlert failed in his attempt to require SUVs to meet standards for cars rather than light trucks (AutoWeek).

Reducing U.S. reliance on imported oil has become "a national security imperative", according to Boehlert, referencing a series of expert reports in the past few months.

Of course the Alliance of Automobile Manufacturers, which represents the Big 3 and six import-brand automakers is fighting against the legislation. Boehlert says the industry seems increasingly willing to take action to help fix a serious problem. But he argues it is not doing enough.

Oil and the economy

Oil up, economy down.

The cost of gasoline and heating oil are not the only costs of foreign-oil dependency. The entire economy, even possible recession, could be caused by some man-made or natural catastrophe that would disrupt the tenuous oil-supply.

Never fear; however, the American military is near. Good thing that doesn't cost tax-payers anything.

Blinded by the fuel cell

Fuel cell, schmeal cell.

Every major auto manufacturer makes concept fuel cell vehicles and touts the 'hydrogen economy'.

Yet, many of these same new energy evangelists disregard the exorbitant costs that it will take to convert to the hydrogen economy as minor obstacles, while continually mocking hybrid cars.

Still, hybrid vehicles, such as the Toyota Prius, or the Ford Escape hybrid, could quite easily be fuel-cell-electric hybrids in the very near future, which is probably why the Highlander Hybrid is also serving as the platform for one of Toyota's major fuel cell concept vehicles. In the interim, hybrids could significantly help the environment while reducing oil, particularly foreign oil, dependency.

One significant technological advancement in NiMH batteries alone could make hybrids far more cost effective than conventional vehicles. While such a development will also help fuel cell vehicles, it won't be enough to make them competitive against standard vehicles, but it will bring them a step closer to fruition.

Hybrids are the path to fuel cells, not some distraction, and those auto-makers that embrace hybrids will the most have the greatest angle on the future.

Toyota taking big loss on Lexus RX400h hybrid?

An article by Dan Neil, Lexus' math triumph, claims that the cost of the Lexus RX400h hybrid is well below the cost of production. Like, GM's Robert Lutz, Neil is wondering whether Toyota is moving forward with hybrids, just for the marketing.

The article also notes that Toyota is trying to find ways to make more than the 24,000 Lexus hybrids allotted for the U.S., of which 12,000 are already sold.

Hybrid + Solar = Energy Independence?

A number of days ago, I wrote a story, What's better than a hybrid car, a plug-in hybrid of course. In that story I mentioned an electric-truck owner whom forced Ford to sell him an electric vehicle, rather than destroying it, after his lease was up on the truck.

The farmer loved his truck because his fuel, electricity from a small solar array, charged the truck for free.

On the EV1.org website, there is a picture of a house and its solar roof. Only taking one-quarter of the roof, the solar system generates enough electricity to power the home and two electric cars - for the same monthly price as their old electric bill.

What could be more independent, more American, than independently-produced clean energy? No foreign oil, no pollution, no rolling blackouts. And, on a united grid, American citizens could sell energy to other Americans and the world - clean energy - not tied to terrorism.

Hybrid cars, such as the Prius, Escape hybrid, Lexus RX400h hybrid, or Toyota Highlander hybrid could quite easily be converted into plug-in-gasoline-electric hybrids. Able to be charged cleanly in urban driving, these hybrids could also utilize gas when needed.

Fuel cell technology will be great, but the technology to radically make the world safer via cleaner and cheaper energy exists now. Greed and profit are unacceptable justifications for putting off until tomorrow what needs to be done today.

Demand nothing less than hybrid car efficiency.

Toyota Prius Ads Back later this month

If you watched the SuperBowl, you witnessed the first Toyota Prius commercial since the Fall of 2003.

Since Toyota fell so far behind in Prius supply, it didn't make much sense to market the Prius. Starting Feb. 27; however, Toyota will start marketing the hybrid cars once again.

While Toyota has continued to raise production on the Prius, demand has continued to outweigh supply. This year, Toyota plans to sell 100,000 Prii in the U.S. alone.

Recently, the wait time for a Prius has dropped to about 2-3 months, versus more than 6 months for most of last year. Unfortunately, according to Toyota dealers, the new ads are not needed to sell the Prius, and the ads will probably push wait times back to 6 months.

GM SUV sales plummet in January

GM, bear of the hybrid car market, execs such as Robert Lutz, have questioned the business story of hybrid cars, even claiming that the Toyota Prius, the Ford Escape hybrid, and the Honda Accord hybrids are nothing but marketing hype.

Yet, preorders for the very expensive Lexus RX400h hybrid have even surpassed the Prius, and hype around the Toyota Highlander is even greater.

GM hype? TrailBlazer sales down 46 percent, Envoy plummets 51.8 percent, and the Rainier drops 26.9 percent, but GM will not be undersold, and will slash prices even further on some of its once, best-selling vehicles (More from DetroitNews).

Bye, Bye.

For an auto company with low profit margins in its automobile segment, that also finances its business with its financial arm, GM doesn't sound like a very good business story to me.

Maybe GM should listen to the EV1 protest.

EV1 Vigil in Burbank still going

Despite torrential rain in Southern California, the event dedicated to stopping GM from destroying its electric cars continues. Moreover, reps are demanding that GM immediately begin to develop hybrid electric plug-ins, check out the EV1 site.

Ford tells Canada government sponsored hybrid car incentives needed

Joe Hinrichs, President of Ford Canada, told an audience at the Canadian International AutoShow in Toronto that government incentives, such as the hybrid car tax incentives in the U.S., were key to Canada's quest for clean automobiles.

Because of the hybrid rebate Hinrichs noted, "We can't keep Escape hybrids in the showroom in the U.S." (GlobeandMail.com)

Is a gas-guzzling Chevy more American than a foreign hybrid car

Hungry, go eat your import - I always hated that bumber sticker. While I understand the point, and agree with it to some extent, let's get real.

Many people, including my father, only buy American-made cars. It's more patriotic my father recently told me.

"More patriotic than protecting the American environment, more patriotic than ending foreign-oil dependency, more patriotic than fighting terrorism, or bringing our soldiers home?", I asked him.

My father laughed.

O.K., then, I agree - I tell him to his surprise - I'll only buy an American-made car if you only buy American-made gas.

"I would if I could", he tells me, "I'd even pay more".

"That's why I'll only drive a hybrid car."

A British perspective on 'Prius Patriots'

A BBC article points out that the US spends $200,000 every minute on foreign oil.

For this reason, "so-called "Prius Patriots" including former CIA director James Woolsey drive the cars (Toyota Prius) because they see it as a strategic necessity for the US to reduce its dependence on foreign oil."

More interesting, however, is the fact that it isn't just Hollywood liberals, such as Cameron Diaz and Leonardo DiCaprio, but even politically conservative-types, according to the BBC.

Still, the positive effects of hybrid cars will help the environment little, the article stipulates, unless sales significantly go up - and only government action will make that happen.

Electric Vehicle Vigil at GM Burbank plant

An ongoing vigil at General Motors' Burbank facility is entering day four. Vigil participants, supported by a broad coalition of climate protection and clean-air organizations, are demanding that GM rescue these zero-emissions vehicles, return them to California drivers and restart its all-electric vehicle program.

Additionally, the group would like GM to: 1.)Stop dismantling and crushing the EV1s and offer the remaining cars for sale or on open-end lease. 2.)Restart their electric vehicle engineering efforts with a goal of offering fully electric vehicles or plug-in hybrid vehicles with at least 20 mile all-electric range, by 2008. 3.)Increase GM overall average fleet fuel economy to 50 mpg by 2010 and build an entire fleet of zero emissions vehicles by 2020 (MotorTrend)

Auto Pollution Can Affect Fetal Development, Scientists Say

A new study reinforces previous studies that air pollution has negative health effects. The negative effects of pollution on the fetus include generation of cancer precursors (Read more from Sciam)

Prius and Bluetooth problems?

It has been reported the some Lexus models with Bluetooth actually were infected with cell phone generated viruses. While the infection only disrupted the Navigation system, it hints at future problems.

The Toyota Prius offers Bluetooth, has anyone heard of problems?

Easy to change the world.

"If new car and light truck buyers chose the most efficient vehicles in each size class, we would slash the 2005 fleet's gasoline use by 27 percent, reducing gasoline purchases by $6.1 billion and saving the average buyer $360 a year," he added. "Furthermore, we would cut greenhouse gas emissions accordingly. Even omitting hybrid vehicles, those numbers still add up to 19 percent, $4.1 billion, and $245 a year, respectively." (From the ACEEE Awards)

Environmental damage, wars, economic problems, and filthy rich and corrupt oil barons. Demand nothing less than hybrid car fuel efficiency.

No doubt global warming real according to new studies

"The debate over whether or not there is a global warming signal is now over, at least for rational people," said Tim Barnett of the Scripps Institution of Oceanography.

New studies which looked at the oceans, rather than the atmosphere, seem to provide conclusive evidence that humans are affecting the earth's temperature. (Read more)

So what about Honda hybrids then?

If full gas-electric hybrids are the first generation, in a manner of speaking, of fuel-cell-electric hybrids, what about hybrids such as the Honda Accord hybrid, or the Civic hybrid?

Definitely, the Accord and Civic hybrids are built upon on a less sophisticated powertrain than are Toyota hybrids. The Honda Insight is actually probably much closer to a fuel-cell-electric hybrid than are the Civic or Accord hybrids.

Overall, however, I think Honda is well positioned in the hybrid race.

Hybrid hype? Wake up and smell the future

Think hybrids are hype?

Gas-electric hybrids, such as the Toyota Highlander hybrid, the Lexus RX400h hybrid, or the Ford Escape hybrid, are just the first stage in the evolution of full hybrid vehicles.

Yes, they cost more than a conventional car, but hybrid technology is only just emerging. Additionally, the cost of gas-electric hybrids is far less than fuel-cell-electric hybrids - the future of automobiles according to almost every expert.

The point is, however, they are both hybrids.

Today's gas-electric Highlander, Lexus, and Escape hybrids are built on Prius technology, as are tomorrows Highlander, Lexus and Escape fuel-cell-electric hybrids (Read More).

More on the Toyota Fuel-Cell-Electric Hybrid.

Greenspan and private accounts

Alan Greenspan just told Maxine Waters that he supported private accounts for Social Security to protect it from Congress. Apparently, he feels that social security funds would be investments, ie, they would grow if Congress managed them correctly.

I haven't been that interested in the discussion, but if Congressional spending is part of the problem - by both sides of the aisle - maybe I would like more say in how my money is invested.

Who'da thunk Congress wasn't fiscally responsible?

Toyota Prius picks up another award

The Toyota Prius won one of IntelliChoice's 19th annual "Best Overall Value of the Year" awards for 2005 model year cars, trucks, vans, and SUVs.

The Prius, Toyota's first hybrid car, won the Best Car Value Under $23,000.

The Prius also won a class award for the best car in the Midsize Class under $21,000.

The Honda Civic hybrid won the the best car in the Compact Class over $16,000.

Are oil profits dirty?

I am watching CNBC right now and a segment on oil just finished.

The price of oil isn't getting any cheaper, because of demand. Demand is only going to get higher. One analyst said oil companies are making more cash than they can possibly spend, so oil companies will keep trying to find more oil.

So why isn't gas cheaper, I wonder? And it's almost certainly not going to get cheaper. In fact, it won't take much to happen in world events to cause prices to go higher.

I'm certain terrorists will never make that connection.

Ultimately, if you are invested in oil you are making good money, but I say that money is dirty. We know it's dirty. Whether you live in Houston and are not allowed to say the words "global warming", or you just think it's been hyped up, there is no argument that oil has caused massive environmental destruction around the world - oil spills, smog, illegal dumping.

While refineries have made oil much cleaner over the years, our dependence upon oil is ridiculous by environmental standards alone.

Yet, according to analysts, one of the biggest factors of the economy moving forward is? You got it, oil. A dip in supply and all bets are off.

The truth is, terrorists could easily damage the economy by reducing the supply of oil.

Even without terrorism, if demand surprises analysts this year again, as it did last year, oil prices are almost certain to spike anyway.

Why should the U.S. continue to remain so susceptible to something we can easily change? Not only can we change it, but in the long run, we can profit from it.

Oh, that's right. Because America's investor class has money in oil.

The Kyoto protocol.

Phooey. Not that I'm against it, but reducing America's automotive demand for oil by 30 or 40 percent, nationwide, is a bigger step, one that could be accomplished in just a decade with current technology, particularly hybrid cars.

The point is, we should be efficient as possible not just because it's good for the environment, that's almost irrelevant. We should invest in hybrids and efficient technologies because it's good for the economy, it's good for your job, and it's good for your family.

Is dirty profit really more important than all of that?

Demand nothing less than hybrid car efficiency.

Join the revolution, join the Soultek Hybrid Car Club.

Competition about to heat up for the Ford Escape hybrid

This year's Truck of the Year at the Detroit autoshow and the first ever SUV to be one of the greenest vehicles in the United States, the Ford Escape hybrid has had a pretty good run.

A bit on the spendy side, the Escape hybrid is; however, my favorite SUV.

Of course, since I would only consider a hybrid SUV as a purchase, it is my only choice. That is all about to change, and the Hybrid SUV segment is about to get interesting.

The Toyota Highlander hybrid and the Lexus RX400h hybrid will be in showrooms soon, oh boy!

(Click here for more on hybrid SUVs) (More on the Escape hybrid)

Some great Lexus RX400h hybrid reviews

If you have test-driven or purchased a Lexus RX330 you probably either loved it, or still love it. Well, get ready, the world's first luxury hybrid SUV will make you desire new love.

Early reports regarding the Lexus RX4ooh hybrid are glowing. Unfortunately, because this is going to be a phenomenal, luxurious performer, demand is going to significantly out-weigh supply.

Nonetheless, here are two great reviews of initial test drives of the RX hybrid. (DetroitNews) and (Motortrend).

Hybrid Car Price Scares

Car prices vary, so one would expect the same regarding hybrid cars, but how much variance should be expected?

Will hybrid vehicles only go to the highest bidder?

I have received several reports from prospective hybrid customers about serious price gouging. For example, a $60,000 Toyota Highlander hybrid, or an $80,000 Lexus RX400h hybrid?

For the record, the Highlander Hybrid does carry about a $4,000-$5,000 price premium over its conventional counterpart, which starts at $24,645, for the base four-cylinder model. So, I would expect the out-the-door prices to come in around the mid-30s, as the Highlander hybrid might be priced more in line with a V6, rather than a V4.

As for the Lexus RX400h hybrid, in reality, the numbers should add up to about $50,000 for the Lexus hybrid.

Ultimately, dealers do have the final say, but adding $20,000 or $30,000 to a vehicle for dealer add-ons is a joke.

I suspect sales pressure. "You don't want to wait for a hybrid, buy today, hybrids are going to be too expensive," you can almost imagine a car salesman saying, especially if the vehicle isn't even going to be on the lot for several months.

Join the Soultek Hybrid Car Club to follow this issue.

Dealer Fees for hybrid cars and SUVs

If you've gone shopping for a hybrid car or SUV, you might have suffered a little sticker shock. Typically, the sticker cost of a hybrid is between $3000 - $5000 more than its conventional version. Yet many hybrids are marked up much more than this with extra dealer fees.

What's up with an extra $5000.00 for a Toyota Prius, or $3000.00 for a Ford Escape Hybrid?

Has anyone paid more, or less?

If you've test driven a Prius, Escape hybrid, Honda Accord hybrid, or Civic hybrid, how much were your dealer's fees?

Add a comment below, or e-mail me at soultek@soultek.com.

Honda and Toyota hybrids in Top 5 Green List

A natural gas Civic won the Top Green Car according to the American Council on an Energy-Efficient Economy.

While the Honda Civic GX wasn't the most fuel-efficient vehicle, it did offer the cleanest tailpipe emissions.

Honda's Insight took second, followed by the Toyota Prius, and the Honda Civic Hybrid.

Ford, often ridiculed by the Council, picked up the 11th spot with the Ford Escape hybrid - a significant improvement for Ford.

Read more at the LATimes.com.

Army investing in hybrid electric vehicles?

During the Detroit auto show, a DetroitNews reporter wrote an article in which he stated that any automotive engineer would tell you that having two motors to accomplish the job of one was a stupid idea. Therefore, he was not a fan of hybrids.

To that I responded, except for Japanese automotive engineers, whom also create the most reliable automobiles in the world.

The fact is using small electric motors for specific functions can be much more efficient than using one motor to do everything.

Now, I have more support.

One of the manufacturers that is developing an advanced propulsion system for Army automobiles recently stated, "The ability of electric motors to deliver higher levels of torque and power in a small package is critical to the success of wheel motors for large military vehicles that are candidates for hybrid electric propulsion", said William G. Rankin, UQM Technologies' President and Chief Executive Officer (Click here for more on this story).

Obviously, the multiple motors in hybrid cars isn't such a stupid idea.

3rd Party Hybrid Investment, Still Hype?

GM exec. Bob Lutz has characterized the story of hybrid cars as mostly hype and slick PR. Toyota, Lutz would have us believe, spent billions of dollars on hybrids - as most of the industry ridiculed them - for PR?

That's quite a risk for an auto-manufacturer almost obsessed with manufacturing efficiency.

One of the biggest reasons Japanese cars have better resale value in the United States compared to American-made vehicles is due to reliability. Ultimately, many analysts believe this difference is caused by one thing, efficiency.

The Japanese simply embrace a manufacturing process built around trying to increase efficiency. They constantly ask, How can we get from point A to point B more efficiently - where cost is not always the deciding factor.

Therefore, the Japanese manufacturing process has become more flexible and adaptable.

Thus, Toyota would not invest in new technologies, such as hybrids, because they were PR motivated, but because they envisioned such technology would be more efficient in the long run.

And as third-party manufacturers and suppliers start investing in hybrids and competing with each other - innovation, increased efficiency, and cheaper prices are sure to follow.

Therefore, this weekend's top news stories are all the more important.

Sanyo's increased NiMH battery production is just the beginning, as the company ramps up for what they see as a burgeoning multi-billion dollar market in just the next couple of years (more on this story).

And Toshiba sees the same forecast for the hybrid market, offering to spend almost $100 million to produce semiconductors for Toyota hybrids in just the next two years to secure a share of the hybrid market (more on this story).

All this PR must be getting really expensive.

Sanyo increasing hybrid car battery production

Sanyo plans to raise production of its NiMH batteries used in hybrid vehicles. By the end of 2005, Sanyo will be producing enough batteries for 10,000 cars per month.

At this time, Sanyo supplies most on its batteries to Honda, for the Accord hybrid, the Civic hybrid, and the Ford Escape hybrid.

In a press release, a Sanyo spokesman said, "There are only two major players and we are still relatively small. But we plan to ramp up production and eventually grab the half the market."

Sanyo is forecasting huge growth in this sector and it sees it as a multibillion dollar industry in just the next couple of years.

Toshiba plans to spend $100 million on hybrid car chips by 2006

If Toshiba finalizes a deal with Toyota to produce microchips for Toyota hybrid cars, the world's fifth largest chipmaker will spend just under $100,000,000 in the next two years to build a new production line for hybrid car semiconductors.

Production could begin as early as April 1.

Currently, Mitsubuishi Electric Corp., is the main supplier of hybrid chips, and the deal would create the first competition in this market. Hopefully, that will accomplish two things, more hybrids sooner and cheaper prices.

With interest in the Lexus RX400h hybrid and Toyota Highlander hybrid - at least initially - much greater than that of the 2004 Prius release, Toyota has to get more players involved in order to reasonably meet demand.

I'm sure; however, certain GM execs will call it just more hybrid hype.

Hybrid tax break update

Yesterday, I wrote about HR 626, a bill proposed by Rep. Dave Camp, a Michigan Republican, that would offer tax credits of between $600 and $4,000 per hybrid vehicle, depending on the model and the energy-saving technology used.

Thus far both President Bush and Democrats have announced support for this incentive and Bush has provided for them in his 2006 budget proposal.

I would assume that vehicles such as the Toyota Prius, the Highlander hybrid, the Lexus RX400h hybrid, and the Ford Escape hybrid would qualify for the upper end of the credit because of their full hybrid status. Other hybrids, such as the Honda Accord hybrid, as well as the Civic hybrid, might qualify for less because Honda's hybrid technology isn't quite as fuel-efficient.

On the other hand, hybrids such as the Sierra hybrid would probably qualify for the lower end of the tax credit because it is only a mild hybrid.

Join the Soultek Hybrid Car Club.

Rent a hybrid before you buy

EV Rental Cars, the only environmental-based rental car company in the United States, offers an environmentally friendly rental car fleet, including many hybrid vehicles, with locations in Los Angeles, Phoenix, and Washington, D.C.

Nearly 40 Escape Hybrids join the Honda Insight, Honda Civic Hybrid, and Toyota Prius and customers can rent a hybrid car for about $59 per day.

Severe Lexus RX400h hybrid shortage?

So, you drove the Toyota Prius and you absolutely loved it. If you could have picked your options on a new one and drove it out of the dealership you would have bought it in an instant, but you were told at least 6 months.

Since the Lexus RX400h hybrid and the Toyota Highlander hybrid were to be released soon, you decided to wait. Unfortunately, you might be waiting even longer for one of these hybrids.

Because production of the Hybrid Synergy Drive is almost completely internal, Toyota is having a hard time keeping up with demand. To help with Prius demand, Toyota is looking to China to help out with production, but there are no such plans for the RX400h.

Toyota claims that under its current production capabilities, it can produce only 38,000 hybrid RX400s per year, but only 24,000 of those hybrids are destined for the U.S., and almost half of those vehicles already have downpayments on them.

That means that if Toyota doesn't raise production, supply will be far less than demand. Therefore, interested buyers might not be able to purchase the Lexus hybrid until late 2005 or even 2006.

Of course, overwhelming demand is great news for Toyota, but not for interested consumers.

Toyota's production shortage should help spur sales of the Ford Escape hybrid and the Honda Accord hybrid - which might be the only options for many serious hybrid consumers. Since the Escape hybrid uses Toyota's Hybrid Synergy Drive, that will also be good news for Toyota.

Overall; however, this will be very disappointing news for Toyota hybrid fans and customers. Hybrid vehicles are an emotion-driven sale for many potential customers, and playing with one's emotions is not a good customer relations practice.

Either Toyota will have to figure out a way to significantly increase production, or Toyota will risk losing tens of thousands of potential customers. If someone has to wait a year or two, pay an extra $3000.00 for a hybrid version, plus and extra $3000.00 to $5000.00 to Toyota dealers for some bogus handling costs, customers will begin to resent Toyota and look for other options.

Toyota has the ability to change the entire automotive industry, but the longer it frustrates customers, the less appeal Toyota's Hybrid Synergy Drive will have, and the less appeal Toyota will have.

While that might not be fair considering Toyota's leadership in clean technologies, such as hybrid vehicles, to allow demand to wither away awaiting supply demonstrates that Toyota might not believe in hybrids as much as it claims.

Whether Toyota can catch up to demand for its Prius this year will say a lot about where Toyota is going with hybrids in the next few years.

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Global warming, big business, oil and hybrid cars

Hybrid cars are too expensive because gas is cheap, many American auto analysts and auto executives continue to state.

But is gas really that cheap?

Any American who questions the cost of gas is considered some kind of environmental nut by mainstream media and industry.

Why?

There is no doubt that smog in America's largest cities was, and is, significantly caused by automobile emissions caused by oil, and numerous studies have shown that smog has a negative impact on people's health. Many Americans will die prematurely because of smog - that is a fact.

Now most scientist throughout the world believe these emissions are also significantly contributing to global warming, but don't say those two words in Houston.

According to a Reuters story, U.S. companies do not take global warming seriously, and in Houston, "one of the world's oil capitals, opposition to the notion of global warming is so strong that local officials have to be careful not to use the term, said Elena Marks, the city's directory of health policy."

These profit-rich oil companies are one of the most powerful industry segments in the United States today and they use that power to protect their profit and interests.

"Financial and insurance firms elsewhere have awakened to the dangers posed by global warming, but U.S. companies have shown little interest so far, a British insurance expert said on Wednesday. U.S. insurers have elected not to join in, often because they have close links to the fossil fuel industry. In the U.S.A., the fossil fuel companies are extremely powerful."

O.K., so let's forget about global warming and smog, let's just pretend it doesn't exist. Fine, I'm just a nut on that one (as is the Pentagon).

Are there any other costs?

Why are we in Iraq, for the second time?

Let us say it is because of weapons of mass destruction. How could Saddam afford to create such programs?

Oil.

While the U.S. might not be directly fighting in Iraq because of oil, oil is the root of the problem. Thousands of Americans and tens of thousands of Arabs have been killed because of oil. Trillions of dollars have been spent to secure, oil.

Flip on the tube and watch CNBC, a financial news network, and oil is one of the most frequented topics.

Both Bush presidents became president because of one thing, oil.

Every major American car manufacturer is strongly influenced by Unions. One of the main mantras of the Union is buy American. If it is so important to buy American, why do we import so much of America's economic fuel, oil, from foreign countries - especially from countries with such strong anti-American feelings?

How many Union pension funds have shares of oil company stock?

Oil has done many things to benefit the U.S. and the world, but has the quality of life for most Americans improved as much as the wealth of the richest of the rich whom own oil?

If you are happy with the state of affairs in the U.S. politically, economically, and environmentally, then go buy your gas-guzzler.

As for me, I'm tired of making filthy rich people - that could care less about me and my family - even richer, at my expense, and I won't buy anything less efficient than a hybrid.

I've had enough of their perfect world.

$4000 Tax Credit for that New Hybrid?

Love that new Honda Accord hybrid or Ford Escape hybrid, but afraid of the extra cost?

Auto analysts note that hybrids typically cost about an extra $3000 - $4000 above the cost of their conventional cousins. Of course, the new generation of hybrids, such as the Accord hybrid, Lexus RX400h hybrid, and Toyota Highlander hybrid do provide better performance and significantly better fuel-efficiency for that cost.

Also, buyers can claim a tax credit of up to $2000 to help offset that difference. Unfortunately, that credit will be reduced to $500.00 next year, unless H.R. 626 is approved by Congress.

H.R. 626 would provide between $600 and $4,000 per vehicle in tax incentives for consumers who purchase advanced technology vehicles, depending on the vehicle.

Join the Hybrid Car Club to stay informed of this issue.

What's up with Ford's Mercury hybrid push?

First, I applaud Ford for being the first American automaker with not only the world's first hybrid SUV, but the first American automaker with two hybrid vehicles.

Second, I embrace Ford's commitment to hybrid cars. Ford is planning on releasing the Focus and the Milan as hybrids in the next couple of years, unlike GM which has kept its hybrid focus - if you can call it that - only upon large SUVs and trucks.

Nonetheless, why the rush?

Ford has claimed that Escape hybrid production will be limited in 2005 because of a hybrid battery component shortage. If that is true, why not just produce more Escapes, rather than two limited-supply vehicles?

Or is supply that limited?

In the past Ford has stated that it had secured enough hybrid battery packs for 20,000 hybrids. The last sales numbers that I've seen show that Ford is selling a little more than 1,000 hybrid Escapes per month.

Is the Mercury Mariner hybrid destined to pick up that surplus while building buzz around Ford's hybrid efforts? If so, why?

Toyota would be my guess.

Already Toyota has received downpayments on almost 11,000 units of its first hybrid SUV, the Lexus RX400h. Additionally, there are about another 50,000 interested buyers, and if Toyota can produce enough Lexus hybrid SUVs, the Lexus model alone will outsell the Escape hybrid.

But it doesn't end there.

Just after the Lexus hybrid hits the showroom, the Toyota Highlander hybrid will follow, and interest in that vehicle is as phenomenal as is interest in the Lexus, maybe even greater.

So, Toyota will only be limited by its production capabilities. Without doubt, Toyota can easily move 100,000 hybrid SUVs this year. Combined with the 100,000 Prius hybrids that Toyota has committed to releasing this year, Toyota could easily sell over 200,000 hybrids.

So Ford has to feel very pressured.

Currently, the Honda Accord hybrid is outselling the Ford Escape hybrid, and between the Accord hybrid, the Civic hybrid, and Toyota's Prius, Ford will have a hard time competing - at least in the short term - with these hybrid cars.

The hybrid SUV and truck market is really American automakers best opportunity to grab hybrid marketshare. With GM already eating its foot on hybrid predictions, Ford is a bit in the driver's seat. Unfortunately, Toyota's momentum and the fact that Ford hybrids include licensed Hybrid Synergy Drive technology from Toyota has to be a little unsettling for Ford executives.

Of course not as unsettling as it must be for GM, which is probably two years from entering the hybrid market. Such a head start for Toyota might make its brand almost synonymous with hybrids, much like the Kleenex of tissue.

American automakers should be afraid, be very afraid.

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2006 Mercury Mariner Hybrid released in October of 2005

Ford Motor introduced its second gas-electric SUV today, the 2006 Mercury Mariner Hybrid, and announced that the new hybrid will be released more than a year before originally intended to keep up with hybrid vehicle demand.

Unveiled at the Chicago Auto Show, the Mariner Hybrid is similar to the Ford Escape Hybrid that preceded it last year, getting about 33 miles per gallon in the city and 29 miles per gallon on the highway -- or 30 percent more than the regular Mariner SUV according to an MSNreport.

In a press release, Ford said the Mariner Hybrid "is expected to meet the cleanest emissions rating achievable by a fossil-fuel vehicle."

Ford also confirmed plans to introduce hybrid versions of its Milan and Fusion sedans in the next three years, as well as a test fleet of Mazda Tribute SUV hybrids this year with full-scale production expected to begin in the next two years.

Click here to read MSNBC.com's complete article.

Just more hybrid car hype

Sure, GM and Nissan, hybrid cars are nothing but hype.

Of course, the first sales month of the first quarter in 2005 seems to say something a little different.

GM and Ford continue to lose marketshare and Toyota continues to gain it.

Why?

A story in the New York Times claims it's Toyota's new products, particularly the Scion and the Prius.

Apparently the hype around the Toyota Prius continues to make money, even though hybrid cars are essentially a waste of time and money if you ask J.D. Power, GM or Nissan.

It's amazing; however, how that hype has propelled Toyota into the role of undisputed leader in the automotive world (GM is bigger, but not as profitable). Somebody better remind Toyota how they are wasting their time and money on this hybrid thing.

While production costs have slowed Toyota profit, most of that innovation and investment is helping Toyota ramp up to world domination in the near future. And if the Prius is any sign of things to come, the American automotive world is going to get slapped into reality when the Lexus RX400h hybrid and the Toyota Highlander hybrid hit the market.

Both the Lexus and Highlander hybrids will, like the Honda Accord hybrid, actually perform significantly better than their conventional cousins.

But, then again, I'm sure this hybrid "hype" won't have any affect on Toyota's U.S. marketshare this year.

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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.

Prius hybrid car Super Bowl ad

I didn't watch the entire game last night, but I did watch enough to see the Toyota Prius commercial.

Unfortunately, I have to admit the ad just didn't quite pop as far as I'm concerned. Nonetheless, Toyota has done little marketing for its Prius, particularly because demand for the hybrid car has far out-weighed supply. Hopefully, this is a sign that supply is finally catching up to demand!

Of course while the ad obviously promoted the Prius, it also seemed intended to promote Toyota's hybrid technology, the Hybrid Synergy Drive.

Hybrids are not synonymous with the Prius Car, Toyota seemed to state, rather hybrids are synonymous with the Hybrid Synergy Drive. That technology is not only available in the Prius, but will soon be available in the Toyota Highlander hybrid and the Lexus RX400h hybrid.

Perhaps even more important, the Hybrid Synergy Drive is utilized by Ford in the Escape hybrid, and will also be the technology behind the Nissan Altima hybrid, and some Subaru hybrids.

By branding technology, rather than just specific vehicles, Toyota is marketing its technological innovation and leadership, while creating a clear distinction between its hybrid offerings and those of most competitors.

One can almost imagine a future marketing caveat on the Escape hybrid or Altima hybrid, "powered by Toyota's Hybrid Synergy Drive". I'm sure that neither Ford, nor Nissan, would co-brand in such a way, but that doesn't mean that Toyota won't try to create that impression.

The fact is, it's true.

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Hybrid cars and car pool lanes

Legislation by lawmakers from California that would allow states to make their own rules for hybrids in car pool lanes was co-sponsored by two California legislators on Tuesday.

“This is a bill whose time has very much come,” said Rep. Darrell Issa, R-Calif., who co-sponsored the legislation with Rep. Brad Sherman, D-Calif.

If enacted, the legislation would enable a California law letting hybrids in the carpool lanes — even without passengers — to take effect. Other states including Arizona, Connecticut and Georgia are contemplating similar laws and are following the California legislation closely.

In an article by MSNBC it was noted "Hybrid cars “are allowing us to enhance the environment, reduce air pollution in California, and yet we’re not allowed to do this,” Issa said. “This bill will allow that to happen, not just in California but for all 50 states.”"

As hybrids become more popular, the legislation does pose some problems. For example, a Virginia law allowing hybrids into car pool lanes resulted in such huge sales that carpoolers have begun complaining of bumper-to-bumper traffic.

The California law would require that any hybrid achieve 45 mpg to qualify for car pool status. At this time only the Honda Civic hybrid, Honda Insight and Toyota Prius qualify.

The Honda Accord hybrid and the Ford Escape hybrid would not qualify under the current legislation. Thus, Ford is fighting the legislation, arguing for just a 10 percent gain in efficiency to qualify for car pool lane entrance.

With the problems in Virginia, that seems like a bad move. Still, it is disappointing that the Escape doesn't qualify. Rather than a minimum mpg, a different standard might need to be utilized.

While I am not a fan of SUVs, simply because the design is just, well, inefficient, many Americans demand SUVs. Fine, as long as they are fuel-efficient. Hybrid SUVs, such as the Escape hybrid, and the soon-to-be-released Lexus RX400h hybrid and Toyota Highlander hybrid each achieve fuel-efficiency gains of around 30 percent.

Those kinds of gains are also very important.

Once again; however, offering car pool status to hybrid SUVs - with their popularity - almost certainly would flood the car pool lanes of California. So it's hard to say how much impact this legislation can have in the long run.

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Automakers refuse to discuss reducing pollution

According to the Detroit News, GM and Ford refused to talk to representatives from California's state pension funds about their decision to sue California over forcing them to reduce auto emissions.

They also refused to meet with California lawmakers as well, fearing any public comment might hurt their case.

"The California Public Employees' Retirement System and the California State Teachers' Retirement system, which hold about $1.5 billion worth of shares in GM, Ford and others, want automakers to explain why the funds shouldn't use their role as big investors to force the companies to abide by the new law."

The first set of emissions reductions do not take place until 2009. Ultimately, by 2016 automakers will be required to reduce pollution by 30 percent.

At one time, car makers vehemently argued such a requirement was technologically impossible. Of course hybrid cars such as the Toyota Prius already achieve those requirements, so now auto-makers are focusing mostly on just the issue of authority - is this the state's right or the federal government's right.

"California Controller Steve Westly, a member of the funds' boards, told Bloomberg News he may push the funds to support shareholder resolutions or target the companies for egregious corporate governance practices."

What is the hybrid car attraction?

Those whom don't believe in hybrid cars seem to believe there is some conspiracy against Americans that is going to force them to buy hybrids.

Don't believe me? Go to Autoweek and check out some forums and you'll hear about how the automotive media is in love with hybrids and how green-activists are trying to force Americans to buy certain cars.

I read a ton of automotive news every day, and very rarely is any of it about hybrids. Pick up almost any issue of any major automotive magazine, and you might find an article or two on hybrids. Often you won't find anything about hybrids.

The only reason there is buzz regarding hybrids is because of hybrid supporters, not the media.

Many of us look around at the world and see gross pollution and we want to do something about it. Many of us look at the problems in the Middle East and we want to do something about it. Many of us look at the corporate greed that decided that it was O.K. to build SUVs on a truck platform, even when rollover was determined to be a serious threat, and we want to do something about it.

Some of us are tired of a world driven by inefficient greed that has only one purpose, not creating the best product possible, but achieving the quickest profit for shareholders.

Freedom of choice, contrary to these conspirators, is about choice. Without hybrids what choice is there?

You can buy a small compact if you are so worried, some might say.

Why?

Why can't I have an efficient sedan, or truck, or SUV? The technology certainly exists.

The original Toyota Prius was a bit of a slug, but the new Prius proves good performance is possible. The release of the Honda Accord hybrid; however, demonstrates that hybrids are not only efficient, but better performers.

The Accord hybrid isn't the only hybrid achieving better performance than it's conventional cousin. The Toyota Highlander hybrid and the Lexus RX400h hybrid, like the Accord hybrid, will also out perform their conventional cousins, while getting almost 30 percent better fuel efficiency.

So where is the conspiracy?

Yes, there is a cost for hybrid technology, but there is no doubt that hybrids are simply better vehicles than non-hybrids. As time goes on, the gap between hybrids and conventional vehicles will widen, to the benefit of hybrids.

Technology, such as computers, has demonstrated one clear fact - it advances. In the short term it is more expensive and complicated, but the gains made in the long run easily recover those initial costs.

Ten years ago, a laptop with the ability to function on a battery for four hours with top notch performance was nothing but a dream. Even if you doubled the price of your computer investment, it was still a dream.

Now that technology is cheaper than a high end desktop of 10 years ago, but with performance that would have been a dream just 10 years ago.

That's why it's called an investment. Oil shortages, oil wars, pollution, global warming, etc. are all reasons to invest in new technology. Many have said wait until fuel cells arrive. Right now it costs almost 1,000,000 to create one fuel-cell powered car. How long can we wait, forever?

It costs a few extra grand to make a hybrid, and hybrid technology is still emerging. GM's two-mode hybrid technology promises the possibility of 60 percent more efficient hybrid Tahoes, Yukons, and Sierras.

That's not worth a few extra grand?

As the old adage goes the only certain thing in life is change.

Assuming a decades old truck platform could drive the automotive future was not only stupid, but dangerous for American auto manufacturers, and more importantly, dangerous for Americans.

Hybrid cars are not some green wet dream, they are simply better cars than conventional cars.

Get over it. Change is inevitable.

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GM and hybrid vehicles

Is GM a hybrid failure?

I've pretty much argued that they are, at least in terms of passenger vehicles. In fact, GM has stated that they are not interested in hybrid cars, only hybrid trucks and SUVs.

Nonetheless, GM isn't a hybrid failure. GM's most important hybrid achievements have been confined to buses, which is a notable achievement.

A new article, Hybrid Powertrains: The Two-Mode Approach argues that GM's bus achievement, and it's Two-Mode hybrid powertrain will ultimately translate into success for the next generation of Yukon, Tahoe, and Sierra/Silverado hybrids.

Currently, only Toyota has technology that is similar to GM's; however, according to the article, GM's technology - its two-mode system - has even more potential than Toyota's powertrain.

The Prius, the Lexus RX400h, the Highlander hybrid are each full hybrids, but they do not function on electric power alone. GM's two-mode system, will allow GM hybrids to run on electric power alone.

GM claims its two-mode system can achieve a 60 percent increase in efficiency, versus about a 30 percent increase with Toyota's Hybrid Synergy Drive.

Anyway, its an interesting article if you are interested in reading about powertrain differences.

Click here for the complete article.

Toyota Highlander Hybrid Update and Hybrid Performance

Yesterday, I reported on a CNBC segment regarding hybrids. In that segment, the Toyota Highlander hybrid was the main focus, and the reporter noted that the Highlander hybrid would be released in March.

Originally, the Highlander hybrid was to be released at that time, but Toyota pushed that date back to June/July because of overwhelming demand. Well, the online version of yesterday's CNBC segment is now available, click here to see.

According to CNBC, the Toyota Highlander hybrid will hit the market in March. I am still in disbelief regarding this report; however, I am hopeful that it is actually correct.

The gist of the article noted that the new trend in hybrids is performance. The Honda Accord hybrid, the Lexus RX 400h hybrid, and the Highlander hybrid, the article points out, are the next generation of hybrids that are not just focused on fuel efficiency and pollution reductions, but on performance.

For example, each of the above hybrids are faster and more powerful than their conventional counterparts, going almost a second faster from 0 to 60.

The Highlander hybrid will be about 30 percent more fuel-efficient than the conventional Highlander. Toyota, the report states, could have made the Highlander hybrid even more efficient; however, Toyota didn't just want the most efficient Highlander, it wanted the best performing Highlander.

Click here for the complete CNBC article.

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.

Toyota Highlander hybrid hitting market earlier than expected?

According to a report by CNBC TV this morning, the Highlander hybrid will be hitting the market in April.

The staff at CNBC noted that the Highlander hybrid, much like the Honda Accord hybrid, is also almost a second faster than the conventional Highlander hybrid and achieved about 30 mpg on their test drive.

I'll be trying to verify this date. At the end of last year, Toyota had pushed the release date of the Highlander hybrid to June/July.

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Do hybrid vehicle analysts receive payoffs?

A new study indicates that if hybrids achieve 11% of the U.S. market by 2009, as many as 207,000 American jobs could be lost.

The past presidential election has demonstrated that unbiased journalism has become relatively rare in politics.

Is the same true in automotive media?

If 200,000 American automotive jobs are lost, would that affect American automotive analysts?

Instead of naysaying hybrids for the past five years, perhaps automotive analysts should have been warning Detroit and America that if our fatal obsession with gas-guzzlers didn't change, the American automotive industry might never recover and hundreds of thousands of Americans would lose their jobs.

Unfortunately, too many analysts appear too comfortable with the status quo.

One would hope automotive analysts would try harder to predict the future, rather than trying to maintain the past. But who cares about the future when fat advertising dollars are here today?

Hybrids too expensive? Gas prices to hit record levels in 2005

Gas prices are on the way up, and they are going to hit record levels this year according to some experts (click here for more on this).

One of the biggest reasons so many American auto executives and analysts are not buying into hybrid cars, such as the Toyota Prius or the Ford Escape hybrid, is because gas prices are too cheap - they say.

Most analysts claim that hybrid technology cannot recover it's additional $3,000.00 costs, unless gas hits $3.50 per gallon, which analysts claim won't occur for close to another year (They don't really consider environmental impact or performance increases.).

Well, some experts are predicting nationwide gasoline prices to reach as much as $2.50 per gallon, or more. That means in California, gasoline prices are going to start hovering into the low $3.00 range in just 2005.

And that's if everything goes fairly well.

While I don't think hybrid vehicles are just about fuel efficiency, even if held to those economics, even those economics might make hybrids cost-effective far sooner than most analysts have predicted.