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Thursday, January 15, 2009

Detroit Auto Show: Do you buy the green hype?

Hybrid cars and plug-in vehicles cost more. How do you sell such vehicles when gas prices are low and the economy is tanking?Prius sales down 44 percent

In the last few years, automakers have realized that green is in, at least in terms of marketing. As a result, auto shows have become forums for establishing green cred.

This year's Detroit Auto Show was greener than ever, yet are automakers really any greener? Or, is most of the green auto movement pure hype?

In just a couple of years, GM's Chevy Volt will put rubber to the road, but it will be many more years before GM produces serious numbers of Volts per year.

A number of other automakers will also be rolling out various types of plug-in hybrids and electric vehicles in the next few years as well. Again, however, also in very small numbers.

Even if automakers are more aggressive with their EV and hybrid plans, are consumers even ready for such vehicles?

Not if the economy isn't significantly stronger and gas prices much higher NewsWeek speculates, and I doubt that major automakers are oblivious to this possibility. Numerous studies have indicated that a significant percent of consumers want hybrids and EVs, but they don't want to pay much extra for them. How do struggling automakers cope with that reality?

Do automakers have a solution to this conundrum? Do they really care? Or, is all this green hype really much more about image than reality?

If I had to make a bet, I'd bet on a number of automaker bankruptcies before I'd bet on their green developments. Great change is coming to the auto industry, but that change isn't going to be driven by powertrains, but simple survival.

Or, is green talk the quickest path to Obama's bailout heart? (Check comments for an update)

Labels: electric cars, Hybrid Vehicles, plug-in hybrid vehicles

posted by Dahcredyns at 8:15 AM

7 Comments:

Blogger Dahcredyns said...

Just after making this post I read an article on CNN.com that sheds some light on this discussion.

A new study by the Boston Consulting Group finds that the cost of converting a significant percent of the worlds fleet to EVs and hybrids is going to be excessively expensive and its going to take a massive amount of money from governments to make electrification happen.

Thus, are automakers pushing electricifation knowing that 1.) It will take a long time to roll out, and 2.) that a massive amount of government money will be available?

Is this potential porkfest the key to Big 3 survival?

Are automakers going green only for this pork?

9:48 AM  
Blogger Noz said...

Green hype and green requirement are two totally different things.

Just because sales of hybrids are down 44%, that doesn't mean people know what they are doing.

People are dumb. They are sheep that have little to no thinking capacity for the most part. And they are reactionary.

It's no wonder we have such a climate problem creeping up on us while everyday we still see endless miles of traffic jams, pollution, and waste.

Would any logically thinking creature keep sitting in its own feces day after day after day?

9:56 AM  
Blogger Dahcredyns said...

Well, I hear what you are saying about consumers, and I largely agree with you.

Still, studies do show there is strong consumer interest for efficient vehicles, but most consumers can't really afford them. That doesn't justify the purchase of cheaper gas-guzzlers, but it shows that consumers aren't completely oblivious, they just don't have much choice, or many options.

There has been a lot of press about the death of America's love affair with the automobile. Maybe that is something to embrace, and if you care about the environment, that's probably a good thing.

Of course, on the other hand, that potentially means lots of lost auto jobs.

This is where the left is possibly going to contradict itself.

Obama and Democrats want to save as much of the US auto industry as possible by doling out, eventually, 100s of billions to go green. Is that the most efficient way to achieve efficiency? Have auto corporations really proven they deserve that kind of bailout?

What about thinking outside of the box?

Maybe a better way to go green is to develop better public transportation, car-sharing, living closer to work, and creating radically different forms of personal transportation, such as what Aptera is doing. Most important, maybe building far less cars for the US market is huge and important first step.

Instead, we're acting as if as long as we put tons of expensive battery packs in huge gas-guzzlers that all our problems are solved. We're thinking inside the box to create fundamental change? Is that even possible?

The left is trying to safely manage change without any significant change. Well, I don't believe a huge porkfest is the best path to real, effective change.

Yes, it's a lot better approach then Republicans, but is it the right approach?

The greatest change usually comes out of great destruction. Until we have some serious destruction, I just don't think the auto industry can or will change very quickly - it will only change as much as the government funds it to change. And, whenever pork is driving change, you can be assured that change will be as expensive as possible.

10:26 AM  
Anonymous Rahul said...

The car manufacturers are now more concentrating on the greener cars. The Detroit auto show highlighted the hybrid and electric cars. Important car manufacturers did not participate in the show due to the global meltdown.

Rahul,
Indian Car Advisor (Carazoo.com)

12:54 AM  
Anonymous Anonymous said...

After the exposing of global warming for the scam that it was I am now doubting anything from the environmental groups. Even things like recycling that seem to make sense may really be just another scam like global warming propped up by faked numbers.

5:04 PM  
Blogger Noz said...

ANON:

Get your head out of your ass...you need help.

10:07 AM  
Blogger Dahcredyns said...

Not only that anon, you can substitute green with other things such as foreign oil dependency or technological innovation.

Oil dependence seems to lead to endless problems, especially for countries like the US. And, when Asia starts consuming energy like Americans do, the situation becomes absolutely unsustainable.

Deny global warming if you must, but green is about more than CO2. Inevitably, green is really just another name for efficient. And the future will be driven by efficiency.

11:54 AM  

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