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Friday, February 06, 2009

So what fuel efficient cars will the government buy?

The only American car worth buying if fuel efficiency is the Focus?

$600 million for the government to "green" its fleet of vehicles by purchasing more fuel efficient vehicles?

Sounds like a good idea, at least on the face of it? Right?

Yet, I cannot help but wonder, what cars will the government buy?

The Chevy Tahoe hybrid? The Saturn Aura mild hybrid?

Truthfully, the only Big 3 vehicles that should be on the list are the Ford Escape hybrid and the Ford Fusion hybrid. That's it. Unfortunately, Ford is only going to make about 50,000 of those hybrid vehicles combined this year.

What else is there if a real improvement in fuel economy is sought?

I don't know. Call me very unexcited.

Perhaps, the White House should tell Toyota to restart its plans to build the Prius in the US and make that a qualifying vehicle.

Labels: Ford Escape hybrid, Ford fusion hybrid, Hybrid Vehicles

posted by Dahcredyns at 8:39 AM

4 Comments:

Blogger alcatholic said...

Dahc,

I was just thinking, it seems like Ford is the only Detroit dino that is going to try to compete in the cheap hybrid space. Seems that are rejecting E-REV's like the Volt and are planning to roll out a PlugIn hybrid in 2012 with cost being the main factor.

Well, I guess they aren't actually talking about a cheap Hybrid, but at least they are pointing in that direction. If they take things to their logical conclusion, they may get to a cheap hybrid by default.

Here's hoping. The Insight is looking better and better, isn't it?

10:20 AM  
Blogger Dahcredyns said...

Hard to argue against the Insight's economics, especially in today's economy.

Ford is an interesting story. EVs, PHEVs, and a new proprietary hybrid powertrain with the Focus.

The fact that Ford is only rolling out 25,000 Focus hybrids, however, does cause me some pause.

Why just 25,000?

Because they don't want to invest too much in NiMH technology? Is their hybrid powertrain as cost-effective as Toyota's? Why a Focus hybrid and not a unique hybrid?

Still, Ford gives me some real hope - the most so far out of the Big 3.

10:31 AM  
Blogger alcatholic said...

I have a feeling that Ford is still losing money on their Hybrids. It took Toyota a longtime to make the Prius profitable.

Isn't Ford still buying batteries from that Toyota/NEC venture?

4:38 PM  
Blogger Dahcredyns said...

There is still a question over whether Toyota is really profiting from their hybrid vehicles - when you include total pre-production costs, etc.

But I think they have to be close, minimally. The Prius could be profitable today, but not as profitable as many other lines of vehicles. Not even close.

There is no doubt, however, that Ford is losing money on its hybrids. Lots of money. I think you have to sell at least a million vehicles to even begin the profitable conversation.

Perhaps the vehicles themselves are profitable, but Ford isn't close to paying for the preproduction costs of their hybrid program.

In terms of batteries, Ford is in no man's land. If they want to seriously increase their NiMH production, THEY have to do it themselves.

Toyota had to do it. Toyota had to invest in its own supply chains for NiMH and copper, for example.

I'm positive Ford isn't yet ready for that commitment. They are going to wait and see how lithium plays out.

However, if lithium doesn't live up to the hype, Ford is just lost as GM, at least for the next five years.

6:31 PM  

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