American hybrids: A lack of leadership

Yes, Ford has the Escape hybrid, but it isn't nearly as coveted as the Toyota Highlander hybrid, and neither are nearly as coveted as the Prius.

So what's the problem? Leadership.

Lately Ford has blamed the "predatory" practices of Japanese automakers for their lack of hybrid production. (more)

Excuse me? As soon as a Toyota hybrid hits a dealership it is almost sold. The Escape hybrid can last for weeks, even longer. More important, if not for Toyota the hybrid supplies Ford needs wouldn't even be available. Ford is using the supply channels that Toyota created.

GM, well, GM just keeps talking. A few years ago GM thought hybrids were nonsense, then they were a good marketing story, but a poor business story. Now GM is trying to bolster it's hybrid efforts. "Right now, we're not where we ought to be (on hybrids)," said Bob Lutz, GM's vice chairman and product development chief, acknowledging that it's hurting consumer perceptions of the company.(more)

Not long ago Mr. Lutz even admitted that GM could have used a sliver of its yearly marketing budget to finance the development of hybrid cars. Instead, GM chose to market the Hummer and Tahoe.

How could American automakers have been so blind to the importance of foreign oil dependency, to fuel efficiency? Is doing the right thing impossible for American corporations? Is money more important than the safety of the people?

Leadership requires vision and tough choices. The lack of American hybrids reprints a void in American corporate leadership, and if it doesn't change, it will represent the downfall of America as well.

Hybrid hate versus gas-guzzling hate

Earlier this week I commented on a CNN article that called hybrid cars hype, more on this.

Why so many hybrid critics? Let's be real, hybrids account for around 1% of U.S. sales. Don't like 'em, don't buy 'em.

Perhaps you don't buy the foreign oil dependency and terrorism connection. Fine. Perhaps you don't buy the fossil fuel, pollution, and global warming connection. Fine.

Do you buy it when the President of the United States calls on all Americans to conserve gasoline in the wake of two hurricanes that have significantly affected gasoline supply?

If not, go ahead and bury your head back in the sand now.

If you do buy the argument that Katrina and Rita require all Americans to help the Nation by conserving, then what do you think about the fact that GM has decided to wager its future on its most gas-guzzling vehicles, despite the President, despite the gas shortage?

Are American corporations above Americans?

Why are critics focusing on hybrids, instead of gas-guzzling vehicles? Which vehicles have a real impact on America right now? Which vehicles provide the greatest amount of advertising dollars?

Is there a connection?

Massachusetts pushing bill for hybrids

Massachusetts is pushing a bill that "would reward drivers who buy hybrid or alternative fuel cars with tax breaks, free transponders to get through tolls quicker and open access to HOV lanes." Regarding hybrid cars Republican Sen. Bruce Tarr said, "There's a willingness here to embrace this kind of technology. What we're trying to do is lead the way." (Full Story)

While Massachusetts is pushing hybrid technology and the President is asking Americans to conserve gasoline, GM is focusing on its must gas-guzzling vehicles. Isn't this un-American? (more)

Re: Hybrids: Don't buy the hype

My boys love the movie Napoleon Dynamite, and it was Napoleon that I thought of when I read the article Hybrids: Don't buy the hype.

"Idiots."

"There may be reasons to buy a hybrid vehicle right now, but they aren't financial reasons," says Peter Valdes-Dapena .

Really, Peter?

"A hybrid Honda Accord costs about $3,800 more than the comparable non-hybrid version. Over five years, you'll make up that cost in gasoline money if the price of gas goes up immediately to $9.20 a gallon."

Nice one, Peter, the Accord hybrid? First, the Accord hybrid isn't a top selling hybrid. Second, it's a performance hybrid, not a hybrid built for fuel efficiency. Third, there is a huge difference between Honda hybrids and Toyota hybrids. In city driving, Toyota hybrids offer far more fuel efficiency because of their ability to function on electric power only.

"For the Ford Escape hybrid, the difference is less stark. To make up the difference between the Escape hybrid and a Ford Escape SLD, gas prices would have to rise to $5.60 immediately after you purchase the vehicle or you would have to drive 37,000 miles a year. Still an unlikely scenario." At least based on Edmunds.com data, Peter notes.

How about some investigative journalism, Peter?

The Edmund's study was largely based on EPA data, and is therefore unreliable and over-generalized. For example, in city driving, the EPA is off by as much as 50 percent in its fuel economy ratings according to Consumer Reports (more on this). Additionally, Edmunds, like the EPA, assumes that most drivers drive mostly on the highway.

Not me, Peter, and not millions and millions of other Americans that live in cities and suburbs.

Then you mention diesel as a more viable option. Peter, did you know that according to CR, the Jeep Liberty Diesel, estimated to achieve 22 MPG in the city, actually only achieves 11 MPG. Is that the kind of real money savings you are talking about Peter?

Then you state that "driving more gently" can save up to the 30 percent.

C'mon, Peter, driving more gently can also make the Ford Escape hybrid more fuel efficient as well as the Toyota Highlander hybrid and the Toyota Prius - of course that wasn't how Edmunds tested their hybrids, was it Peter?

And why didn't you cover the Toyota Prius in your article, since it is by far the best selling hybrid vehicle? Instead, you chose the least 'hybrid' of the hybrids to make your argument. Nice objectivity.

Since the Department of Transportation and numerous University studies claim that city driving, or congestion, is not only the new American norm, but a major American problem, shouldn't that be the standard for testing fuel efficiency?

According to Consumer Reports, not only are 3 hybrids the most fuel efficient vehicles available, but in city driving - the new American norm - the Prius is without rival. For example, the Prius is more than 150% more fuel efficient than the Ford Focus in congestion.

Hmm, Peter. So 45 MPG versus 17 MPG isn't good enough? And if I drive "gently" in the city, my Prius can achieve even 50 or 60 MPG. Still, not worth it, huh, Peter?

More important, hybrid vehicles are an emerging technology and the best is yet to come. Plug-in hybrids and experimental hybrids have been demonstrated to achieve as much as 250 MPG.

Not worth the investment Peter? Instead, we should drive more "gently"?

Buying a hybrid can save money, more important; however, it can help fund a technological revolution that can significantly help the environment and end foreign oil dependency - without finding some miracle to make million dollar fuel cell vehicles more cost effective.

Of course I guess we could just drive more "gently" to fix these problems, huh, Peter?

Prius supply down to hours

Interested in a Toyota Prius? Good luck, the supply of the Prius used to be measured in days, now it's down to a couple of hours according to a Reuter's article.

"Toyota sold 72,849 Prius hybrids in the first eight months of 2005. That was a 132.0 percent increase over the same period of 2004." And Highlander hybrids are hot as well. In just a few months, Toyota has sold over 8,000 hybrids - as many it could make.(AutoWeek)

For those interested in hybrid cars it is; unfortunately, a seller's market. Hopefully the new, redesigned Honda Civic hybrid can help with the shortage of hybrids. Still, Katrina, Rita, and $3.00+ gasoline has created a lot of interest in hybrid vehicles and in fuel efficiency. So much so, that CAFE has become a hot topic for the constituents of many members of Congress (more).

In the short term, hybrids simply won't have enough inventory.

Honda doubling output of Civic hybrids with second generation

The new Honda Civic hybrid was unveiled this Thursday in Tokyo, but not many details were released. Honda's second generation Civic hybrid will cost about $2,500 more than the just released, revamped Honda Civic. It will offer more horsepower, better fuel efficiency, and improved styling.

Perhaps, the hybrid cars segment will finally have some real competition, as the hybrid Civic begins to challenge the Toyota Prius hybrid. Dealers in Southern California told me that they expect the first new hybrid Civics in mid-October.

Ford not interested in hybrid trucks?

Ford's green push into hybrid cars is not going to include F-Series trucks according to the Detroit News. Already Ford offers the Escape hybrid and a few Mariner hybrids, but hybrid SUVS are the easiest hybrids to find.

Toyota offers the Lexus RX400h and the Highlander hybrid.

While I am happy that Ford is also going to focus its hybrid efforts on sedans and other cars, why not trucks? Giving that product segment to Toyota seems to be the dumbest move Ford could make.

Oil refineries versus hybrid cars

I saw a Congressman from Arizona this morning on CNBC that is sponsoring a bill to make it easier to create oil refineries in the United States to help reduce energy costs. While I am open to the idea, isn't politics about giving to get?

Just adding more refineries is going to do nothing to help reduce America's dependency upon oil, especially foreign, terrorist-supporting oil. In fact, more refineries will simply increase our dependency on foreign oil.

Shouldn't the focus be reduced oil dependency?

As the cost of gasoline continues to rise, GM is fast-tracking its most gas-guzzling, foreign oil-hogging vehicles to market, at the expense of more fuel efficient sedans. GM can keep talking about its hydrogen cars that won't be available for decades, but actions speak louder than words, and the actions of GM are pathetic, even unAmerican.

I'd be more than willing to support reduced requirements for fast-tracking some oil refineries, if Congress got serious about fuel economy, and force the likes of GM to start acting like it cares about gasoline prices, the environment, and foreign oil dependency.

Hybrid cars PROVE that a significant increase in fuel economy is achievable with TODAY'S technology - even for gas-guzzling SUVs. Yes, it might be expensive, however, since the government wastes tens of billions on pork spending, why not fund the best, most fuel efficient automotive technology, instead of giving more money to the oil industry?

Investing in diesel hybrids, biodiesel hybrids, plug-in hybrids and experimental hybrids will not only end foreign oil dependency and clean the environment, but make America's auto industry the best in the world (more).

More gas-guzzling Tahoes and Yukons will never do that.

In the wake of Katrina, Iraq and terrorism, in the face of Rita and the possibility of many more such hurricanes this year alone, isn't it time for real action?

Today's Top Hybrid News Stories

For a few months, Ford has been making two announcements about hybrid cars. First, that it is going to boost hybrid car production. A new report states that Ford will offer hybrid versions in half of its Ford, Mercury and Lincoln vehicles. Still, the total production will total only 250,000 vehicles by 2010 - less hybrids vehicles than Toyota will sell this year alone. (More)

Second, Ford executives are again blaming Toyota for a shortage in hybrid vehicle parts due to "predatory" activities by some Japanese automakers. (More)

I really wish Ford would shut up regarding the lack of hybrid parts. Every Prius, Highlander hybrid, and Lexus RX400h consumer has been affected by this lack of parts. This is a struggle for all hybrid manufacturers.

Had Ford been more bullish regarding hybrid technology several years ago - as bullish as Toyota - this would be a non-issue. The Ford Escape hybrid is a great vehicle, but Ford is still years behind Toyota.

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If you didn't follow the Frankfurt autoshow, AutoWeek has put together a "smattering of hybrids shown at the Frankfurt motor show." (more)

Hybrid Cars and Fuel Efficiency: The most important point

Hybrid cars are leading an automotive revolution. Yet, critics are everywhere. Hybrids cost too much, they don't achieve EPA estimates, diesel and biodiesel are better, fuel cells are the future and on and on.

On Friday Consumers Reports sent out a press release regarding the inaccuracy and inefficiency of the EPA's fuel economy ratings. Of course, even Consumer Reports had to take a stab at hybrid cars, noting that the Honda Civic hybrid missed its EPA estimated city fuel economy - utilizing CR's testing methodology - by a whopping 46 percent.

Of course CR did have to admit that hybrids still fill the top 3 most fuel efficient vehicles slot - not bad considering only a handful of hybrids are available.

In city driving, according to CR, 9 out of 10 vehicles - not just hybrids - miss their EPA estimates by as much as 50 percent. 9 out of 10 of the worse offenders were NOT hybrids. The Jeep Liberty Diesel estimated at 22 mpg city, actually achieves only 11 mpg. Chrysler's top selling 300C estimated at 17 mpg, actually achieves 10 mpg. A couple of Dodges only achieve 8 mpg in the city.

That's right just 8 mpg, yet we're worried that the Civic hybrid only achieves 24 mpg? Of course on the highway, the Civic hybrid does much better, as do all vehicles.

Still, this is an important point, especially when it comes to hybrids. Hybrids are not all the same. The Honda Accord hybrid and the Civic hybrid are built upon the same hybrid technology, but not the same hybrid technology as the Toyota Prius hybrid. Toyota hybrids, such as the Prius or Highlander hybrid, can actually function on electric power only at low speeds. This means that in city driving, where congestion creates stop-and-go traffic, Toyota hybrids can use much less gasoline, as can the Ford Escape hybrid.

Honda hybrids do not benefit from this gain. The second generation Civic hybrid, due out in October; however, will offer this capability, but its electronic component will still not equal that of Toyota hybrids.

Thus, all hybrids are not created equal and viewing hybrids as one class is as inaccurate and misleading as utilizing EPA fuel economy data. While the Civic hybrid only achieves 26 mpg in the city according to CR, the Prius achieves 45 mpg. The Ford Focus, for a conventional comparison, only achieves 17 mpg.

At today's gas prices, driving 15,000 miles per year, the Civic hybrid would save you $1500.00 in gas versus the Focus, the Prius would save $4500.00 per year in gas savings versus the Focus. Of course, not everyone drives in these conditions all the time, but for those that live in large cities, the cost-benefit of hybrids like the Prius is pretty dramatic.

Additionally, if you HAVE to drive an SUV and you drive mostly in the city, driving a Highlander hybrid or Escape hybrid will probably save close to $700 - $1000 per year. For many hybrid drivers, gasoline savings in the real world ARE enough to cover the cost of hybrid components, plus you are helping to clean the environment - can you really put a cost on that?

Ultimately, hybrids are not all the same. Currently, the Prius is best in class - at least until the second generation Civic hybrid. Still, it isn't the fuel economy of hybrids that should be in focus, rather is should be the incredible fuel inefficiency of conventional vehicles.

Hybrid car haters transferring their gas-guzzling guilt

Amid another round of potential hurricanes and the announcement that foreign refineries would not able to refine more oil into gasoline, oil prices are rising significantly higher this morning. Oil prices are now up over $2.00 and the consensus amongst energy traders is that prices are not going down, which should keep gas prices high for sometime. Expect demand for hybrid cars to remain very high.

Still, the hybrid haters won't shut up. Despite the EPA and fuel economy, hybrid vehicles are still the most efficient vehicles. Hybrid buyers pay a premium to help change the world. How are gas-guzzlers helping the world - by driving gasoline prices higher, by increasing foreign oil dependency?

Hybrids and the auto media: Is there a bias?

I think the fact that the auto media constantly points out the fact that hybrid cars miss their EPA numbers demonstrates a very ignorant bias against hybrids. In reality, the EPA isn't accurate in predicting the fuel economy of ANY vehicles, yet this is only mentioned in a tiny percentage of articles regarding hybrid vehicles and MPG. In actuality, many conventional vehicles miss their EPA estimates by as much as 30 percent.

Why doesn't the media focus on that fact, especially in the wake of Katrina? U.S. automakers enjoy and benefit from the fact that the EPA is so far from reality. If the truth were told, the actual fuel INEFFICIENCY of many vehicles, especially large trucks and SUVs, would have forced many consumers to rethink their purchases years ago. Additionally it would have forced American automakers to begin to take fuel efficiency seriously.

Nonetheless, others claim hybrids are the darling of the media, but I just don't see it.

Is Frankfurt hybrid car talk just hype?

Hybrid cars have taken over the Frankfurt Auto Show, but is all this hybrid talk just marketing hype?

According to a BBC article, yes, "But despite the loud and confusing displays of hybrid concepts at the Frankfurt motor show, the efforts by the big car groups seem less than ambitious." Additionally, the BBC notes, "BMW's Mr Panke is even more blunt. He predicts that hybrid car sales will never rise above more than 1%-2% of the total market, and PSA Peugeot Citroen's chief executive Jean-Martin Folz agrees."

On the other side of the pond, the NYTimes article, At Frankfurt Auto Show, a Reluctant Embrace of Hybrids the Times notes, "But backstage at the Frankfurt International Motor Show, a different picture is emerging: Europe's auto executives remain privately skeptical, even dismissive, about the merits of hybrid technology."

It isn't hype if you ask Toyota, however. More important, the European auto industry and the American auto industry simply are not the dominant corporations they once were. Times are a changing and new leaders are emerging.

Still, in Europe, the common belief is that advanced diesel is just as effective as hybrids, and that assumption is correct.

But what about the future?

Hybrid vehicles are an emerging technology. When computers first emerged, it was thought only the Pentagon or huge corporations could ever utilize, or even afford one. Then came desktops, laptops, and now PDA's and more.

Already, plug-in hybrid cars and other experimental hybrid vehicles demonstrate that current hybrid technology can be adjusted to achieve as much as 100 or even 250 mpg. Others speculate that a new generation of biodiesel hybrids could achieve as much as 500 mpg.

Ultimately, the auto industry is entering a technological revolution and those companies that choose to follow the status quo will ultimately disappear.

Ten years ago, a laptop with 1000 Gig of RAM and 3 hour battery life wasn't just expensive, it was pure fantasy. Today, it costs little more than $1000.00.

Hybrid technology is not going away and it will continually get more powerful and cheaper. Within 10 years the Toyota Highlander hybrid, Toyota Prius hybrid, and the Ford Escape hybrid will be more than twice as fuel efficient as they are today, yet the cost difference between hybrid and conventional vehicles will be much less.

That isn't hype it's the reality of technology.

GM's missing hybrids at Frankfurt Auto show

There has been a great amount of news regarding hybrid cars at the Frankfurt Autoshow.

"In the future, the cars you see from Toyota will be 100 percent hybrid," Kazuo Okamoto, executive vice president, told reporters in Frankfurt Monday, without giving a specific timetable. (NYTimes)

An AP auto writer noted, "At the Frankfurt auto show this week, German automakers Volkswagen AG, Audi AG and Porsche AG said they were forming an alliance to develop hybrid engines. Last week, BMW AG joined General Motors Corp. and DaimlerChrysler AG in a similar partnership."

Additionally, "French automaker PSA Peugeot-Citroen also wants to develop hybrid technology and may join forces with another company to share costs, Chairman and Chief Executive Jean-Martin Folz said." And, "Audi unveiled the first gas-electric hybrid vehicle from a European automaker at the show, a version of its new Q7 sport-utility vehicle that will go on sale in 2008."

Even, DaimlerChrysler, one of GM's hybrid partners, "also said it will release its first hybrid Mercedes before the next Frankfurt auto show, which will be held in 2007."

Yet, it was GM that was missing at the hybrid party.

A European Auto Correspondent wrote, "Record fuel costs pushed hybrid cars to centre stage at the world's biggest car show this week...", while noting that GM was "one of the seemingly few companies at the Frankfurt show not to trumpet a new hybrid offering or highlight its plans to make one."

It is particularly ironic that GM told the European autowriter that the U.S. government made a mistake by giving hybrids favored treatment, rather than setting environmental standards to let the market decide how to meet them.

GM lobbyists have for decades convinced the government NOT to address fuel efficiency because GM has claimed it would interfere with fuel cell development. Additionally, the government has created loopholes, even tax incentives, enabling GM to create larger, foreign-oil guzzling trucks and SUVs. Essentially, GM has paid the government to handcraft its perfect market.

GM is an important American company because it employs a great number of Americans. Still, GM has become the least 'American' acting auto company. In the wake of 911, two wars in Iraq, and Katrina, GM plans to push its large trucks and SUVs full force ahead, even at the expense of some new, more fuel efficient sedans according to a recent AutoWeek article.

Perhaps hybrids aren't the only answer, or even the best answer, but they are a positive action. Consumers, or market forces, have expressed strong interest in this automotive development, yet GM offers only criticisms.

GM is an automaker, not an auto critic, and it's about time GM focuses on innovation rather than excuses.

Hybrid Car Price Wars Coming Soon

When it comes to humans, change is the most constant force in the Universe. 100 years ago humans traversed the planet on horses, camels, and donkeys. Today, we use automobiles and airplanes.

As automobiles have evolved, they have changed greatly, but the internal combustion engine has always ruled. That is; however, beginning to change.

Electric cars, hybrid cars and fuel cell cars are already on the road today. While electric vehicles still fall a bit short of consumer expectations, and fuel cell vehicles are ridiculously expensive, hybrid vehicles are just right.

Just five years ago, most Americans knew very little, if anything, about hybrids. Today, the far majority of Americans are not only aware of hybrid automobiles, they believe that hybrids are the future, and they are willing to buy a hybrid, if not for the costs, according to a recent Polk Study.

While I agree that there are issues with hybrid vehicle costs, I think the Toyota Prius hybrid is a vehicle well worth the money. In fact, I think ALL hybrids are worth the price. Sure the costs of knowing that you are helping develop a new technology, that you are helping clean the environment, that you are helping reduce foreign oil dependency, are not easily measured. Still, for those that are deeply concerned about such issues, the additional costs of hybrid technology are well worth the price.

Still, the average American is mostly focused on price, which means that costs must go down for hybrids to successfully compete with conventional vehicles. This is on the verge of happening.

Already, Toyota President Katsuaki Watanabe has ordered engineers to reduce the costs of hybrid technology by 50 percent according to USA Today. Such a move would make buying a Toyota Highlander hybrid, instead of a conventional Highlander, much easier for the average buyer. With the Camry hybrid and as many as 10 new Toyota hybrids soon reaching market, hybrid costs will be extremely important.

But it isn't just comparing Toyota hybrids to conventional Toyota vehicles that will be important. The new Honda Civic hybrid, for example, is set to provide a real challenge to the most popular hybrid, the Prius. According to early reports, the second generation Civic hybrid will be more powerful, more fuel efficient, and better styled than the previous Civic hybrid.

Honda hybrids are not Toyota's only challenge either. Essentially every major automaker is now developing hybrid technology. This will eventually lead to better and cheaper hybrid parts, such as batteries, as more and more automobile suppliers begin developing this technology.

Additionally, hybrid technology will evolve. Already Honda anticipates that it will be able to challenge Toyota hybrid pricing because its hybrid system is simpler than Toyota's. Thus Toyota will strive to simplify its hybrid powertrain, or to make it more powerful and more fuel efficient than Honda's to justify the price difference. Or, perhaps, the next Prius will be a plugin-biodiesel-electric hybrid vehicle.

Inevitably, hybrid vehicle competition will lead to price wars, and it will help end foreign oil dependency while protecting the environment. What more could consumers ask for?

Another new hybrid partnership

Reports coming out of the Frankfurt Auto Show claim that Audi, VW, and Porsche will partner to develop a new hybrid engine. This follows last week's news that VW was going to work with one of its Chinese partners to develop a new powertrain for hybrid cars. Other than news of the partnership, not much information has been released.

Nonetheless, this is great news. More competition is good for consumers. Additionally, it will require more auto suppliers to work on hybrid vehicle parts, something that is certain to drive down the price of hybrid technology.

New Civic Hybrid should be a winner

The new Honda Civic hybrid should be a winner.

According to a USAToday article, Redesigned hybrid has flair, the new Civic hybrid will offer better performance via increased horsepower, better fuel efficiency, and better styling that is "Somewhere between engaging and gorgeous."

A press release from Honda notes that the Civic hybrid should hit dealers in October. Honda has not yet released the pricing for the new hybrid, but it should be close to the $21,500 price tag of the current hybrid Civic.

The should increase the competition between hybrid cars and provide a nice challenge to the Toyota Prius hybrid.

GM's skewed vision of Saturn Vue hybrid, Volkswagen hybrids in 2008

I laughed as soon as I read the title of AutoWeek's article, Saturn says its upcoming Vue hybrid will be less-expensive than competition.

While any drive towards fuel efficiency is a welcome one, let's get real for a second. The Saturn Vue really won't have much competition, as it will mostly be in its own class. The Saturn Vue will be a 'mild' hybrid, meaning that it cannot be powered only by its electric motor.

The Vue hybrid's "competition", on the other hand, such as the Ford Escape hybrid, or the Toyota Highlander hybrid can be powered by just the electric motor at low speeds. It is this feature which makes these hybrid suvs so fuel efficient in urban and stop-and-go traffic.

Thus, the Saturn Vue Hybrid will be less expensive than the "competition" because it offers less than the "competition". Boy, you'd think GM could be a little more innovative with its $3 billion advertising budget.

Volkswagen hybrids in 2008

Volkswagen will begin developing hybrid cars with its Chinese partner in 2008, with full-scale production set for 2010. The Volkswagen hybrids will be built upon a proprietary hybrid powertrain that Volkswagen will work alone to develop. (More)

RE: Challenges ahead for Toyota hybrids

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

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

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

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

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

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

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

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

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

NOOOOOOO!!!!!

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

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

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

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

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

BMW your next hybrid vehicle?

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

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

Honda Civic Hybrid Expectations

Honda. Honda is the most fuel efficient and green automaker in the world. PERIOD.

Yes, Toyota has the best selling Prius hybrid car, but Toyota also offers a number of very fuel inefficient automobiles. Nonetheless, Toyota is the second greenest automaker and is taking the automotive world by storm with its Hybrid Synergy Drive, which Toyota has added to the Highlander hybrid, the Lexus RX400h, and is about to add to the Camry hybrid.

So what has happened to Honda hybrid cars?

While Honda was a hybrid car leader, Honda Corporation did not accurately assess the importance of the hybrid car market.

For example, the Honda Insight Hybrid is and always will be a niche vehicle. The Honda Accord hybrid is a performance hybrid, not a hybrid designed for fuel efficiency. The Honda Civic, on the other hand, has always been a fuel efficient automobile. Still, in terms of hybrid efficiency, the Civic hybrid just isn't up to the same level as the Prius hybrid.

Well, all that could change with the new Civic hybrid.

According to MotorTrend the new Civic hybrid "features a 1.3 litre inline-four engine that employees Honda's intelligent Variable Valve Time and Life Electronic Control (VTEC) system to provide three stages of valve timing (low-rpm, highrpm and cylinder-idle mode) combined with a significantly more compact and efficient Honda Integrated Motor Assist (IMA) system."

So what you might ask? Well, according to Honda, the 2006 Civic hybrid should offer "significant improvements in both performance and fuel economy over a similarly equipped 2005 Civic hybrid." Thus, the Civic hybrid could become a serious competitor of the Prius hybrid.

As for me, I can't wait to test drive the Civic hybrid. Hopefully, it will spring Honda back into the role of a hybrid vehicle leader, while creating real competition for the role of hybrid leader.

AAA urges Congress to act on fuel economy in wake of Katrina

"Too many gasoline blends, an outdated fuel economy test and too many large vehicles, have contributed to making the nation's gasoline supply vulnerable in the aftermath of Hurricane Katrina", according to AAA. (Full Press Release)

If automakers are unwilling to make more fuel efficient vehicles, then AAA urges Congress to force automakers to act via stricter CAFE requirements, which have become a loophole for the most fuel-inefficient vehicles. "As Hurricane Katrina has reminded us, we are never more than a disaster away from this type of crisis."

Of course don't expect changes anytime soon from the likes of GM, which "delayed some mid-sized car programs in order to speed the launch of its full-sized SUV and pickup programs, code-named GMT900," according to AutoWeek.

Good to know GM is doing its share in the aftermath of Katrina.

I couldn't believe how many Hummer commercials I watched this weekend. The Nation is facing a gasoline crisis, the President has asked Americans to conserve gasoline, yet GM advertises the Hummer. How about advertising their fuel economy vehicles for a few weeks in the wake of Katrina? How pathetic.

Congress refuses to act on this issue claiming market forces will resolve the problem. If so, why is GM still a couple years away from its first hybrid cars? Ohh, excuse me, its first hybrid land yachts.

Fuel cell vehicles versus hybrids, Part 1

The'Hydrogen Highway' has been touted by American automakers, especially GM, as the answer to America's energy problems. Unfortunately, the hum of hydrogen and fuel cells has been in the air for decades, yet the reality of the hydrogen highway might still be decades away.

Even worse, lobbyists from GM, on numerous occasions, have coaxed American Congresspeople not to enact stricter fuel economy regulations because such actions would interfere with the development of fuel cell vehicles. Essentially, the huge profits margins that GM makes on foreign-oil guzzling SUVs would be reduced and this would cut into fuel cell development.

Thus, America's national fuel economy is no better now that it was in the 1980s, and with more and more Americans driving, our need for foreign oil regularly increases.

When Toyota and Honda began developing hybrid cars, American automakers laughed and ridiculed them. Only about a year ago, GM's Bob Lutz joked that hybrids make a nice marketing story, but a poor business story. Since, GM spends almost $3 billion per year on marketing, I'll assume Mr. Lutz knows a lot about marketing.

Yet, I wonder if Mr. Lutz still thinks hybrids are a poor business story? Toyota continues to rack up month after month of great sales - without incentives - as the Toyota Prius hybrid and Toyota's Hybrid Synergy Drive rack up 100,000's of sales. GM, on the other hand, loses more than $1000.00 per vehicle when averaged across its fleet.

Don't worry, GM tells us, fuel cell vehicles are just around the corner to the save the day. Never mind the fact that fuel cell vehicles cost almost $1,000,000 per vehicle, that they won't work in cold climates, that there isn't any place to fuel them, and numerous other issues.

Still, GM says don't worry.

The hybrid leader, Toyota, also believes very heavily in fuel cells, but Toyota believes hybrid vehicles are a natural transition to fuel cells. In fact, Toyota hopes that much of its current hybrid powertrain will be the foundation of its fuel cell vehicles.

Still, lately, I find myself wondering, are fuel cell vehicles even that important?

While current hybrid technology isn't enough to solve America's oil crisis, what about the next generation of hybrid technology? Plug-in hybrids, for example, can make current hybrids, such as the Ford Escape hybrid or the Toyota Highlander hybrid, significantly more fuel efficient. Moreover, other experimental hybrids have been demonstrated to achieve as much as 250 mpg, at a cost that is significantly less than fuel cell vehicles.

This has prompted cities such as Austin, Texas and states, such as Pennsylvania, to seek ways to help fund experimental hybrid vehicle development.

Yet, GM is still at least a couple of years away from hybrid passenger vehicles. While GM still has time to get into the hybrid race, I cannot help but wonder if they are even serious about the move. Rather, it seems that GM has risked its entire future on proprietary fuel cell technology.

Hopefully, GM will succeed, but what if they fail? GM is not just risking the failure of GM Corporation, but of an important source of American jobs, and an incredibly important part of the American economy.

Katrina, the strong likelihood of future hurricanes, and the threat terrorism - let alone rising global demand for oil - demonstrate the extreme vulnerability of America's energy sector and the dangers of gas-guzzling.

Can fuel cell vehicles really be developed quickly enough to solve this vulnerability, or must America - in the short term - focus on second generation hybrid technology, plug-in's and other experimental hybrid vehicles?

This will be the focus of Part II.

Katrina sparks hybrid car demand

If you have already been in the market for a hybrid car, then you know that finding what you want isn't easy - you pretty much have to take whatever is available.

Well, things are getting worse.

While I was watching CNBC today it was reported by Phil Le Beau, that SUV sales were down almost 10 percent last month as more car buyers moved into crossovers and cars. Additionally, more and more consumers expressed interest in fuel efficient cars. In particular, CNBC noted that interest in both the Ford Escape hybrid and the Toyota Prius hybrid has been increasing significantly as oil prices have risen, and especially since Katrina.

For prospective buyers, the news isn't great. Longer waits and less choices are sure to become even more common in the months ahead, and even in the years ahead. Unfortunately, there simply are not enough hybrid components to make enough hybrid vehicles to meet hybrid demand.

Even newer hybrids, such as the Toyota Highlander hybrid, are essentially sold out, and the same can be expected when the Camry hybrid is released.

Even worse, the first full hybrid from GM is still years away. Why is it so hard to do the right thing?