Highlander hybrid qualifies for hybrid tax credit

The Toyota Highlander hybrid was added to the list of hybrid vehicles that qualify for the hybrid car tax credit. Additionally, the Lexus RX400h, Honda Civic hybrid, Honda Accord hybrid, Honda Insight hybrid, Ford Escape hybrid, and Toyota Prius hybrid also qualify.

Hopefully, the House and Senate can continue the tax credit for hybrid cars.

Toyota hybrids on track and in line with fuel cell vehicles

Toyota's Dave Hermance, executive engineer of Environmental Engineering, told AutoWeek that Toyota hybrid cars are on track for meeting the company's hybrid sale's goals. Additionally, Hermance stated, "Our fuel cell vehicle uses the same battery that's in the Prius. All the learning you do today, all the parts you develop today, except for the gasoline engine, will directly be used on future fuel cell vehicles." (AutoWeek)

J.D. Power more bullish on hybrids?

In the past J.D. Power's Anthony Pratt, has been pretty bearish regarding hybrid cars, but a new study by J.D. Power suggests that hybrid and diesel sales "will more than double" in the next seven years, coveting 11% of the market.

While Pratt has tried to save face, arguing that diesels will be the biggest movers, he had to add, "Outside of meeting future emission standards," Pratt said, "the biggest challenge for automakers concerning diesel technology will be convincing consumers that today's diesel engines have increased performance and run cleaner and quieter than previous-generation diesels."

Quite simply, the largest automarkets in America have very tough regulations regarding diesel, and if oil stays high, diesel engines will remain insignificant.

While there be 44 hybrid models by then according to the Power study, Pratt still claims that hybrid success will be hinged upon reducing costs. Much has been made of reducing hybrid costs, but future American hybrids are going to be built in America, including the Toyota Prius, the Camry hybrid, the Highlander hybrid and many more.

More important, the technology behind hybrids, particularly the NiMH battery, is going to be built in America. Recently, Gene Marcial, of BusinessWeek's Inside Wall Street advocated buying stock in Energy Conversion Devices (ENER) because of the soaring demand for hybrid vehicles.

Local production and battery competition should drive down not only prices, but also increase the power and efficiency of hybrid batteries - providing faster yet more fuel efficient vehicles.

Ultimately, it will probably come down to oil prices. While there are still many oil bears out there, the geopolitical politics behind oil guarantee that America is in for a roller-coaster ride when it comes to gasoline prices. Additionally, a few strong winters and/or hurricane seasons could easily cause significant problems as well.

If gasoline hits $3.00, both the environmental and the foreign oil issues behind hybrids will become irrelevant. Tax incentives and high gasoline prices will simply make hybrids more cost-effective than conventional vehicles.

Senate approves credits for hybrid cars

The Senate has passed H.R. 6, or the energy bill, and it included tax credits for hybrid cars. At this point the details are sketchy regarding the amounts of the credit. The press release states, "The value of the tax credit ranges from $2,000 for smaller, personal cars to $40,000 for the purchase of buses, etc." The battle; however, is not over, as bills from the House and Senate are quite different. Now the politicking will truly begin.

(Read the full press release)

As oil approaches $61, GM hybrid hype begins

Hypocrisy - a feigning to be what one is not or to believe what one does not

What choice does GM have, but to start hyping its future hybrid cars?

Oil problems are already starting to garner America's attention, and it appears that things will get worse before they get better, especially with Iran's new conservative President already making threatening statements regarding foreign oil companies (more).

Get ready, $3.00 gasoline is coming, and the possibility of $4.00, or even $5.00, gasoline is no longer outlandish. (more)

Thus, the much hyped "two mode" hybrid powertrain of GM is making news. Unfortunately, its release is still almost two years away. Nonetheless, it didn't stop AutoWeek from hyping the GMC Graphyte Concept vehicle that could only be driven 35 mph during the AutoWeek test drive.

It's ironic that any Toyota hybrid that graces AutoWeek's homepage includes negative caveats, yet a GM hybrid headline provides only positive hype, even though the technology isn't a fully testable reality. (AutoWeek story)

AutoWeek and GM believe that cheap gasoline will forever be, but how cheap is gasoline when it causes the U.S. to stick its nose in Asian, African, and Middle East politics? If not for our gross foreign oil dependency would such a strong U.S. presence be required in the Middle East? Would we be at war? Would 911 have occurred?

The true cost of gasoline is much greater than what consumers pay at the pump. While GM and AutoWeek can claim that automobiles are about freedom of choice, true freedom doesn't come at the enslavement of others.

Cheap gasoline is a fiction created by American politicians and corporations, and it represents the greatest example of money laundering ever created. If the military costs of cheap oil enforcement were added to the pump price, Americans would immediately act much different.

See no evil, hear no evil, do no evil.

America has done many great things for the world, but its reliance on cheap, foreign oil has turned America into the greatest hypocrisy in the world.

While I wait longingly for a true GM hybrid vehicle, I cannot advocate a company that hypes the importance of buying American while increasing the necessity of foreign oil.

How can that be anything but ignorant, self-serving, greed-driven hypocrisy?

Simulated oil meltdown shows need for hybrid vehicles

On the same day that the Senate overwhelmingly rejected increasing fuel economy, a simulation demonstrated the U.S. economy's extreme vulnerability to oil. Unrest in Nigeria, an Al Qaida attack at Alaska's Port of Valdez, or a Saudi insurgency attack on foreign oil workers, could push the price of oil to $150 a barrel and gas prices to $5.74 per gallon. Former CIA chief James Woolsey called these scenarios "relatively mild". (More on the simulations)

Automakers, especially American automakers, didn't push SUVs and large trucks in the 90's because Americans demanded them, automakers pushed such vehicles because the profits margins were as high as $10,000 or more. In my book, that's just greed.

Hybrid cars can meet the needs of increased fuel economy, without taking away America's demand for choice. Instead of better automotive technology, pork-fed politicians would rather give billions of tax dollars to oil companies to solve America's oil problems.

U.S. Senate fuel economy law

The U.S. Senate may consider a Democratic plan to require automobiles to get at least 40 miles per gallon fuel consumption by 2016. Of course that doesn't include trucks and SUVs, which would only have to average 27.5 mpg.

Wow! Excuse me for not getting excited.

I wonder if that will be real world mileage, or EPA estimated mileage - that is off by as much as 20% in real world driving?

It seems pretty pathetic that hybrid cars, such as the Honda Civic hybrid or Toyota Prius hybrid, already achieve these requirements. In the SUV space, the Toyota Highlander hybrid and the Ford Escape hybrid are also close to compliant.

Nonetheless, fuel economy almost certainly will not pass. Most Republicans and Democrats from auto manufacturing states say it will cost too many jobs.

Apparently, American auto manufacturers are just too technologically incompetent.

Oil glimpses $60.00, is Congress watching

The trading day started off O.K., but when oil hit $60.00 today, the Dow dropped triple digits. In the next few years, America is going to walk a fine line. If a hurricane knocks out Gulf of Mexico production, gasoline prices could spike significantly, especially if it appears this winter will be cold. Then there is always the specter of terrorism.

Unfortunately, it doesn't appear that either the government, nor American business, will offer any solutions for Americans.

So what can you do? Hybrid cars are one of the greatest free market choices consumers can make. The purchase tells automakers that consumers want clean, efficient automotive technology.

While I think the Toyota Prius and Honda Civic hybrid are the best overall choices, there are more choices than ever. The Ford Escape hybrid and Toyota Highlander hybrid can fulfill your SUV needs, while the Lexus RX400h while fit the luxury-motivated consumer, and if you need a highway vehicle, the Honda Accord hybrid is a nice choice.

Things will get worse before they get better in the world of oil - if they ever get better. Since the government doesn't appear capable of intelligent legislation, it's going to be up you, the consumer.

You can make a difference.

The Highlander hybrid is the best Highlander

CNNMoney writer likes the Toyota Highlander hybrid much more than the conventional Highlander. More horsepower, better handling - although a little more engine noise - and significantly better fuel efficiency, especially in city driving. Hybrid cars rule! (More)

500 mpg Flex-fuel plug-in hybrids?

When the oil embargo hit the world in the 70's, it didn't just affect the U.S.. At the time, Brazil imported 80% of its oil from foreign sources.

Today, Brazil has almost wiped out foreign oil dependency using flex-fuel vehicles (more on this).

The U.S., on the other hand, is more foreign-oil dependent than ever.

While hybrid cars provide excellent fuel economy, the technology could do even more. Hybrids, such as the Toyota Prius, have the potential to use electricity to charge their batteries when not in use, which advocates have demonstrated could provide an extra 20 miles of driving per day - without using gasoline.

Thus, instead of 50 - 60 mpg, a plug-in Prius could achieve 70 - 80 mpg, but the potential of hybrids doesn't end there.

According to groups such as the Set America Free coalition, a plug-in hybrid system that utilizes a flex-fuel gasoline engine in its powertrain, rather than a conventional gasoline engine, could achieve 500 mpg if it burned a fuel mixture of 80 percent alcohol and 20 percent gasoline.

That's today's technology.

It is time for American politicians to give up the pork and to start representing average Americans. An energy bill that gives billions to the oil industry is a miscarriage of justice and a slap in the face to the majority of Americans.

Where's the leadership?

Ford: Choking on its own waste

"Sales of the Ford Explorer, the automaker's second best seller after the F-series pickup, plunged 25.2 percent during the first five months of this year. Expedition sales are down 21.7 percent this year," according to AutoWeek.

SUVs, which once resulted in profit margins of over $10,000 per vehicle, are no longer as profitable because of higher gasoline prices, according to Ford officials.

Did Ford think the party would never end? Considering the mounting evidence of the costs of pollution, did Ford think that gas-guzzling would simply be acceptable, well, forever? Additionally, there were warning signs regarding the geopolitical problems of oil, aside from pollution, in the 70's, 80's, and 90's.

Can Ford only act when they have no other choice?

And what about the customers? $10,000 profit margins, hello? Many question the profit margins of gasoline and oil companies, but not car companies. I guess those fat Union contracts and executive perks need to be maintained at any cost?

While Ford does offer the wonderful Escape hybrid and will soon offer the Mercury Mariner hybrid, those vehicles do not even account for one percent of Ford sales. With such high profit margins, Ford had the resources, just not the vision, to push the development of hybrid cars and return to its automotive leadership role.

Instead, Ford must now choke on the waste of its greed and lack of vision. Unfortunately, so to must the rest of America.

Porsche hybrid car less likely

"Porsche AG is reluctant to build a hybrid-powered version of its Cayenne SUV because it fears the model would be unprofitable. Hybrid technology also would violate Porsche's purist approach to engineering, company executives say." (AutoWeek)

Prius hype? 57 MPG in the real world

EPA estimated MPG is far off in the real world. Some critics have used this fact to criticize hybrids, yet they typically, conveniently, forget to mention that conventional vehicles often miss their EPA estimates by 20%. A neighbor of mine, driving in city traffic, achieves more than 70 mpg in his Prius, and Joe achieves 57 mpg (more Prius experiences). While driving conditions and habits do affect fuel efficiency, how can either of those numbers be hype?

Gas prices, hybrids, and politics

This morning oil prices went higher and should push beyond $60.00 per barrel sometime this week. So what should America do? Well, if you are a California Democrat, such as Fabian Nunez, we should lower gas taxes and raise the sale's tax on everything else (more).

Suddenly, Democrats are starting to sound an awful lot like oil-controlled Republicans. The conservationist, environmentalist, anti-war party wants to increase foreign oil dependency so as not to offend consumers at the pump? Pure hypocrisy.

Unfortunately, it isn't just California Democrats, but many Union-controlled Democrats as well. Case in point, raising fuel economy standards in the U.S. While the majority of Republicans are against raising such standards - surprise, surprise - enough voted for change that Democrats could have made it happen, but they didn't.

Instead, Democrats, such as Nancy Pelosi, ridicule and blame the Republican party for every oil ill, when in reality, the Democratic party has conspired with the Republican party to maintain the status quo. The phrase think globally act locally could well be utilized by Democrats. Rather than blaming Republicans, change the turncoats in the Democratic party and make something happen.

Until then, BOTH sides of the aisle stink.

Obviously, Democrats, just as Republicans, care more about re-election than actually standing for something. The Union edict of Buy American or Eat your Import doesn't apply to America's foreign oil dependency - the main driver of pollution, global warming, terrorism, and two wars in Iraq. Isn't that convenient?

Hybrid cars might not be the perfect solution to foreign-oil dependency, but they are a huge step in the right direction. Unfortunately, selfish and ego-centric Americans appear unwilling to change their driving habits towards smaller vehicles, regardless of the costs. Thus, emerging hybrid technology can help create a bridge between larger vehicles and fuel economy.

The United States is a country that has succeeded via technology, and hybrid technology can help begin solving foreign oil dependency today. Instead, American politicians are going to promote cheaper foreign oil dependency. Brilliant!

How high are oil prices going to go?

"There is no question that the market is going to $60,'' said Kyle Cooper, an analyst with Citigroup Inc. in Houston according to Bloomberg.com.

In fact many analysts think there is a 70 percent to 80 percent chance that oil will top even $70 per barrel. Yet, U.S. demand for oil continues to grow causing fears that summer demand could possibly outpace supply.

My prediction still stands at $3.00 gasoline before year's end. While that number might be temporary it will be a sign of things to come over the next few years.

How cost effective will hybrid cars be then?

The hybrid car stage, America

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

Supply simply isn't catching up to demand.

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

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

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

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

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

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

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

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

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

Camry hybrid built in Kentucky, what's up with the Highlander hybrid?

Toyota 'officially' announced that its Camry hybrid will be built in Kentucky today, which really isn't news since Toyota basically stated this as fact when it announced that the hybrid Camry would be built in the U.S. last month.

The real news about Toyota hybrid cars should be when will supply meet demand?



This month the Toyota Highlander hybrid went on sale, but it is almost impossible to find one at a dealer. If you can find one, the markups are insane. Currently, the 'Buy It' price on eBay is a staggering $47,000 on most Highlander hybrids.

According to the prices that Toyota announced, there are 4 models of Highlander hybrid, and the most expensive model has a sticker price of $39,290. Like the Prius hybrid, are consumers going to have to wait for a year or more before markups disappear?

While I believe 100% in hybrid technology, why should such big markups go to the dealers. If I have to pay that much extra for a vehicle, I'd rather have more of it go to Toyota Corporation, rather than a car salesman.

First Mercury Mariner hybrid sold

The first Mercury Mariner hybrid was auctioned off at a Heal the Bay "Bring Back the Beach" dinner for $47,500. Still, the Mariner hybrid is not available for sale at Ford dealers yet, but it is scheduled to become available later this year.

Hybrids, Biofuels and the Coming Energy Crisis

Just finished watching Robert McFarland, exNational Security Advisor, and James Woolsey, exCIA Director, on Rob Insana's Street Signs on CNBC. The two are leaders of a group of 45 current and past National Security officials that have been lobbying the President to curtail U.S. consumption of oil.

Both men essentially claim that the U.S. is playing with fire if the United States doesn't take fuel efficiency seriously. They pointed out that last year alone, China increased its foreign oil dependency by 35% over the previous year, and that such increases are possible into the future.

More important they noted that in the Middle East, Al Queda has publicly stated that it will target Persian Gulf production. Such a disruption, they say, will easily push oil well over $100.00 per barrel, and both believe when, not if, is the only question.

One of the most important solutions? Tax credits for hybrid cars, clean diesel and other biofuels. Currently, both noted that the President is pushing for a $4000.00 tax credit, and both stated that the credit should be tied to fuel efficiency, not just technology. Thus, hybrid cars that achieve the highest fuel efficiency would receive the greatest tax advantage, those with the lowest fuel efficiency would still qualify, just for less.

They also noted that all vehicles should be made flexible fuel vehicles, which would significantly increase their ethanol capabilities. Thus, vehicles could fill up with gasoline that is 85% ethanol, and this ethanol doesn't have to be just corn. Prairie grass and even various waste products could also be recycled into ethanol.

So make America stronger, buy a hybrid vehicle!

For more information on how Brazil used flex fuel vehicles to end its foreign oil dependency, highlighting American Congressional incompetence, click here.

The reality of fuel cells drives hybrid vehicles

There is an interesting AutomotiveNews article, Honda continues work on cold start, range issues with its fuel-cell vehicles, that demonstrates the great importance of hybrid cars.

"If all goes well, Honda hopes to sell 50,000 fuel cell vehicles a year in the United States by 2020. Toyota wants to sell 12,000 fuel cell vehicles annually in the United States in the early 2010s," the article states.

Why so few vehicles?

One of the biggest problems, aside from extreme cost, is that fuel cell vehicles cannot operate in cold weather. While significant gains are being made, the necessary gains are at least a decade or two away.

Quite simply, fuel cell vehicles will not take over the automotive market for at least two decades. Can America continue its SUV love affair amidst foreign oil dependency and global warming for another two decades?

Not with current technology.

Imagine a Toyota Prius that is significantly more powerful and twice as efficient as today's model. Such a vehicle is possible within a decade or less, and that technology will also be available for SUVs, such as the Ford Escape hybrid, or the Toyota Highlander hybrid.

Hybrid technology is simply the best automotive investment any American can make if you don't believe in supporting foreign oil dependency, high gas prices, or destroying the environment.

Demand nothing less than hybrid vehicle efficiency.

Toyota hybrid price increase?

Toyota has recently announced that it might raise prices on its vehicles to 'help' struggling GM and Ford. Starting in October, Toyota is planning to raise its prices 2 percent to 3 percent because it fears anti-import sentiment if GM or Ford should sink further.

Thus far all details around the plan are sketchy and it is not known whether the plan would include hybrid cars. I'm guessing that if the plan goes forward it will not include the Prius hybrid car, nor the Highlander hybrid, but that is pure speculation.

At this time, the plan is a proposal and has not been 'officially' approved by Toyota Corporation. Additionally, this is the second time such a price increase has been mentioned by Toyota, and some feel such a move might be illegal.

Inevitable gas price surge will increase hybrid cost effectiveness

"Our dependence on foreign oil is a direct threat to national security," Sen. Ted Stevens (R-Alaska)

The U.S. Energy Information Administration on Tuesday revised its estimate for average U.S. oil prices upward, yet again. Compared to last year, Americans are consuming 1/4 million more barrels of oil per day than last year.

Recently, a Washington Post article pointed out an alarming trend, significantly less oil is coming from American oil fields.

"The implications for U.S. energy policy are profound. At a time when President Bush and members of Congress are talking about the need to be less dependent on foreign oil, the country is becoming even more dependent. As U.S. production declines, demand has been increasing."

Recently, I criticized an Edmunds.com study that claimed hybrid cars were less cost-effective than believed. I absolutely disagree and find the Edmunds study fundamentally flawed (My Edmunds critique). Nonetheless, the price of gas is going to rise dramatically sometime this year, perhaps as early as this summer. And if the winter is really cold, or a hurricane affects the Gulf of Mexico, things could get ugly fast.

So, don't worry, the cost effectiveness of hybrid vehicles is only going to increase. Soon automobiles, such as the Toyota Prius hybrid car, will become investments compared to conventional vehicles.

Hybrid cars and marijuana!

O.K. there really isn't a direct connection between marijuana and hybrid cars.

Still, yesterday, I wrote an entry Marijuana, Hemp, and Hypocrisy discussing a perspective of the Supreme Court ruling affirming federal jurisdiction over state's rights and marijuana.

Essentially, I argued that the issue should have never come before the Supreme Court - this is an issue for Congress and I discuss the hypocrisy behind government campaigns, such as Hemp for Victory and the continued law against growing hemp in America. Basically, since hemp is almost like marijuana - even thought it can't get you 'high' - it still has to be illegal because it is related to marijuana.

Yet, I find myself amused about stories of Henry Ford growing fields of Hemp to fuel his automobiles. And how Dupont and Mellon, Treasury Secretary of the U.S., and petroleum supporter and investor, conspired against hemp - in the guise of marijuana - to eliminate not only a competitor of the petroleum industry, but cotton, tobacco, and almost every other important industry of the day.

Then there are stories of how tire, petroleum, and auto industries bought out the original Los Angeles light-rail system, dismantled it and created freeway sprawl as well as today's most important automotive market - certainly no motive-driven collusion.

Ultimately, the story claims that Ford was against petroleum because it was so dirty - even then, in the early 1900's, oil was dirty and polluting. Ford was interested in biodiesel, hemp-biodiesel, but the robber barons were interested in petroleum.

And where has petroleum taken us?

The damage that foreign oil dependency has caused to America is beyond measure - SMOG, 911, and multiple wars in Iraq are nothing compared to the coming environmental costs.

Yet, Ford sells Ford Explorers and receives a tax advantage from the government because those Explorers 'could' fill up with ethanol gasoline, but don't. Thus, Ford receives a tax credit for fuel efficiency, even though it isn't. Good to see the government hard at work!

American automakers have become incapable of competing in the fuel efficient vehicle segment, so the government creates loopholes and tax incentives for America automakers to increase America's foreign oil dependency. Someday, they've said for decades, fuel cells will take care of the all the world's problems.

Thus, Congress - Democrats and Republicans alike - continue to ignore the importance of fuel efficiency to reduce foreign oil dependence, to help reduce funding for terrorism against the U.S., to help American auto companies become more competitive, and to help the damned environment.

If you don't believe in pollution, stop using your plumbing and just crap in the backyard for a few months and then tell me there is no such thing as pollution or global warming. What is wrong with people?

Those whom argue against global warming constantly try to say the science is not 100%. While that is true, the science? What kind of idiot can say pollution isn't a problem based on science, when the essence of science is based on the principle that for every action is an equal and opposite reaction?

Efficiency is the essence of natural science and fuel efficiency should be a national priority for America, but it isn't. Instead, the U.S. Congress rewards Ford for building gas-guzzling SUVs. Unfortunately, it is obvious that U.S. politicians and corporations represent money, not people.

Demand nothing less than hybrid vehicle efficiency and register to vote! The only thing that can change America, is the people.

Nissan hopes to sell 50,000 hybrids

In late 2006 Nissan will begin selling the American-made Nissan Altima hybrid. In its first full year of production, Nissan hopes to sell 50,000 Altima hybrids.

Hybrid car cost controversy: You can save money

Earlier this week I posted an entry, Edmunds.com's Senseless Hybrid Vehicle Cost Study, in which I called the Edmund's hybrid car cost analysis, silly.

Edmunds reminds me of the EPA and some Detroit auto writers. "Hybrids don't achieve their EPA numbers," they scowl. While they are right, they hardly acknowledge the fact that most vehicles don't achieve EPA numbers. In fact, EPA numbers on some vehicles can be off by as much 30 %.

The EPA, and apparently Edmunds, base fuel efficiency and driving habits off data from the 80s. For example, the Edmunds study assumes 75% of consumer transportation is highway driving, and only 25% is city driving.

How can that be possible?

Roughly 70% of the American population lives in urban areas. Between 1980 and 2000 the intensity of traffic congestion has tripled, while the extent and duration of traffic has doubled.

Not only is the majority of American transportation city driving, a significant percentage is stop-and-go city driving - the type of conditions that make many conventional vehicles 30 percent less fuel efficient, while causing significant increases in pollution. And the future promises far greater congestion, even for rural areas.

Yet, hybrid vehicles, such as the Toyota Prius and even the Ford Escape hybrid, excel in these same conditions - the same conditions that cost America $100 billion dollars per year and significantly increase the need for foreign oil.

In urban areas hybrids like the Prius can save you money now and in the future they will save even more money. Just imagine if every vehicle achieved Prius efficiency, the environment would be significantly cleaner and America wouldn't need foreign oil.

How much is that worth?

NHTSA Prius Investigation "not a recall" investigation

According to the latest AP reports, the NHTSA Prius investigation is only "an early-stage inquiry to determine if further analysis is warranted, not a recall." (AP via NYTimes)

For more on the NHTSA Toyota Prius investigation.

Schwarzenegger paves way to hybrid cars?

California Governor Arnold Schwarzenegger told a United Nations conference that the threat from global warming was real, and that California was going to lead the fight.

"I say the debate is over. We know the science, we see the threat and we know the time for action is now," he said. (AP via Yahoo)

While Schwarzenegger did not announce many specific new policies, he did state that he would move ahead with greenhouse gas emissions standards for automobiles starting in 2009, despite the Bush administration's siding with automakers against California's standards.

If automakers lose the fight in California, the road to hybrid cars will be clearly paved. The battle against foreign oil dependency has moved from the federal government to the state government of California and the Gov. is in a position to accomplish what the federal government has been unable to accomplish for decades - responsible fuel efficiency.

While that is not the goal of the California legislation, it will inevitably have that effect.

Governor Schwarzenegger has a tremendous opportunity to lead America regarding important issues such as global warming and energy independence, perhaps, even more than the President. Let's hope he takes advantage.

If he terminates his Hummer soon, I might become a true believer.

Why the Toyota Prius hybrid car is more important than ever

Hybrid cars or not, the most important American issue should be fuel economy. In fact, multiple ex-CIA directors, National Security officials, and Pentagon officials have called foreign oil dependency one of the greatest threats to National Security.

The problems of oil dependency; however, are only just emerging.

Frederic Lasserre, head of commodities research at SG Securities in Paris, said that "in terms of refining capacities ... we are close to the max," as far as diesel and heating oil is concerned, adding: "The market is now fearing that we will see a global shortage ... for next winter." (Reuters)

A global shortage of heating oil this winter?

Already some oil analysts are worried that a strong hurricane season could down oil production and refinement in the Gulf of Mexico. Add a cold winter on top of a harsh hurricane season, ever-increasing oil demand, and the U.S. could easily fall into an energy crisis later this year.

The U.S. is playing with fire. Even if temporary, I believe oil will hit $100 per barrel within a year - without any terrorist intervention.

Hybrid cars, such as the Toyota Prius, demonstrate what is possible. Americans are not going to drive econoboxes, and the second generation Prius proves real choices are possible. You can have power and fuel efficiency.

Why do American auto-makers seem to believe that only shareholder dividends make America stronger? They better hope for a warm winter and luck in the hurricane season. If oil does hit $100.00 per barrel for an extended period of time, companies like GM will be split and sold.

Gross ignorance can only be tolerated for so long.

In response to "Detroit Catches a Break"

This morning I updated a story about the NHTSA investigation into Prius stalling, as did Motley Fool's, Rich Smith. In Detroit Catches a Break Smith states "But investors have to wonder how long Toyota's hybrid dominance can endure once tarred with the reputation of being the automotive equivalent of Microsoft's (Nasdaq: MSFT - News) Windows -- "blue screen of death" and all." And later states, "All of this adds up to a potential reprieve for up-and-coming hybrid contender Ford (NYSE: F - News), which stepped on the gas pedal last year and got its Escape hybrid SUV to market before Toyota could launch its own green SUVs."

Kind of interesting considering that Ford utilizes largely the same hybrid powertrain as does the Prius hybrid, which Ford licensed from Toyota.

Nonetheless, I don't think the Prius is dead just yet.

Toyota Prius to be investigated by Feds

The NHTSA will open an investigation into the Toyota Prius amidst 33 complaints of alleged stalling or stopping. Previous reports have hinted that some Prii might need a software update. Thus far, it does not appear that the problem has resulted in an any kind of accident. Ultimately, the investigation should determine whether a recall is necessary. (More on Prius stalling)

Edmunds.com's Senseless Hybrid Vehicle Cost Study

The extra costs of hybrid cars do not pay for themselves in 5 years according to a new study by Edmunds.com. For a respectable car research company, I found the study to be, well, silly.

The biggest problem that I have with the report is that it assumes drivers drive mostly on the highway. Yet, according to government studies, city driving is the new norm. If you live in Los Angeles, for example, you might drive on a highway, but you don't drive the speed limit on the highway. Instead, traffic turns highway driving into city driving, and according to transportation experts, traffic is not only becoming the norm for more and more Americans, it is expected to get much worse year after year.

The future of America is traffic and stop-and-go driving conditions. It is under these conditions that hybrids, such as the Prius and Escape hybrid, excel. Edmunds, like the EPA, needs to utilize the real world driving habits of the majority.

Additionally, if the price of gas goes up, the Edmunds study would be greatly affected, and recent reports show that oil refinement capacity isn't only a problem for the U.S., but the world. Gas prices are certain to go higher in the years to come. And what happens if a big hurricane knocks out Gulf of Mexico refinement capacity (Experts are predicting a major hurricane season this year.)?

The U.S. is playing with fire. To think terrorists do not realize this vulnerability is extremely naive. Besides, Americans are already fighting and dying in the Middle East so that other Americans can gas guzzle and grossly pollute the environment. If the 'real costs' of foreign oil dependency were added to the cost of gas guzzlers, or gasoline, the upside of hybrids becomes much clearer.

Still, under the best circumstances, gas prices are going up, and if a hurricane or terrorist act disrupts refinement, prices will skyrocket. Will that be good for the economy and America?

So, go ahead, listen to Edmunds.com. Don't pay for the newest technology that significantly improves fuel efficiency and reduces pollution, while offering greater performance. It isn't worth it.

Instead, buy your gas-guzzler and help fund terrorism. It's cheaper - at least today - and who really cares about tomorrow?