Higher gas prices good for Volt, but what about GM?

When will it be profitable?

At a plug-in conference hosted by GM in Detroit last week, news of rising gas prices was seen as a good thing.

"Every penny added to the price of gas makes alternative power just a little more attractive," said Tony Posawatz, head of the Volt program. "If petroleum hit $150 a barrel and stays there, he and others agree, the low cost of electricity would make plug-ins fairly competitive on an operating cost basis."

So, what's good for the Chevy Volt is good for GM?

Let's say gas hits a sustained $150 per barrel and $4.00+ at the pump in 2011, during the first full year of Volt production. That would be good for GM? While such gas prices might make the Volt more competitive - after a $7500 tax credit - what about the Silverado, Traverse or Impala, for instance?

Today, GM's profits are not driven by fuel efficiency. Can the Chevy Cruze and a limited production Volt change the troubles GM felt during the gas spike of 2008?

It seems to me, what's good for the Volt is not good for GM, at least not any time soon. While higher gas prices might make the Volt more competitive, can higher gas prices really make GM more competitive and profitable without radical changes to their product lineup?

Funding change: $42,000 tax credit for the Tesla Roadster?

But only in Colorado

The majority of American auto consumers, according to several studies, are interested in hybrid cars and plug-in vehicles. Unfortunately, however, most interested in such vehicles are not willing to pay much extra for those vehicles.

Thus, federal and local governments have created tax credits to help offset the extra costs of these vehicles.

The latest example is Colorado where state residents can receive a credit on their 2009 income taxes for up to 85% of the difference between the cost of an alternative fuel or hybrid vehicle. Consequently, Roadster consumers could save more than $42,000.

While I like the idea of this 85% credit, helping someone save $42,000 on a Tesla Roadster seems absolutely ridiculous. For $42,000 you could convince 14 Toyota Camry buyers to go hybrid with a $3000 tax credit. That seems like a lot more bang for the buck.

Anyway, today, most federal tax credits for purchasing hybrids and other clean vehicle technologies have expired. Still, the government is spending tens of billions of dollars to help automakers to become more efficient, while rolling out new CAFE rules.

Fine. But, if you really wanted an efficient, transparent plan for increasing US fuel economy, wouldn't several years of consumer tax credits for alternative vehicles be the best approach (since a gas tax probably has no chance)? Wouldn't that create the kind of competition that might actually force automakers to become, well, innovative?

Prius receives Popular Mechanics Excellence Award

50+ mpg

Popular Mechanics has released their Automotive Excellence Awards and the Toyota Prius took the award for innovation and foresight in fuel efficiency.

Considering that the Prius is easily the most fuel efficient mass-produced vehicle sold in America, I guess the award isn't too much of a surprise.

Consumer Reports - Hybrids very reliable

A big winner according to Consumer Reports

Looking for a safe family car? Then you might want to consider a number of hybrid cars, at least if you believe in Consumer Reports.

The Honda Insight and the Toyota Prius scored extremely well according CR, followed by the Ford Fusion hybrid, the Mercury Milan hybrid, the Toyota Camry hybrid, and the Nissan Altima hybrid.

Overall, Asian automakers are still the most reliable automakers, but Ford has made huge gains that put most of its products on par with the best of the best. Chrysler and GM, on the other hand, still have work to do.

$3.4 billion for the smart grid. Yawn?

Just icing on the cake?

Yesterday, the President announced $3.4 billion in grants to help fix our "antiquated" electric grid.

"There's something big happening in America in terms of creating a clean-energy economy," Obama said.

Yet, I cannot help ask, is there really something big happening? In recent years, for instance, I've heard Al Gore put the cost of a new smart grid at $400 - $700 billion. So, $3.4 billion is a step, but not even a baby step.

Likewise, at the announcement many reporters noticed how energy inefficient was the President's motorcade, as members of the motorcade sat in large parked - but running - gas-guzzlers to avoid the Florida sunshine. Even for the President's clean-energy entourage, convenience and comfort trump clean energy.

And that's the case for 90-some percent of Americans as well. Is there any way to address that without selling America's future to China?

Prius versus Insight: A commuter's mileage challenge

The hybrid commute according to Kicking Tires

For many urban commuters, hybrid cars provide an excellent tool for saving money at the gas pump. So, Kicking Tires decided to test the Toyota Prius versus the Honda Insight on the same urban commute.

On a 23 mile commute in traffic, the 2010 Toyota Prius averaged more than 58 mpg.

On the same commute, the 2010 Honda Insight averaged 44 mpg.

Ram hybrid still on track

Diesel version on hold, but hybrid coming in 2010

Several years ago GM, Chrysler, BMW and Mercedes formed a partnership to develop a hybrid powertrain that many claimed would be superior to Toyota's Hybrid Synergy Drive.

Eventually, this dual mode hybrid powertrain was launched in a number of hybrid vehicles, such as the Chevy Tahoe hybrid and the Dodge Durango hybrid, but sales have never taken off. In fact, all of Chrysler's previous dual mode hybrids have been discontinued.

Nonetheless, Chrysler will take another stab at hybrids with the Dodge Ram hybrid due out in 2010. While the dual mode powertrain is a perfect hybrid powertrain for large trucks and SUVs, such as the Ram, it's upfront costs - as much as $10,000 - have resulted in few dual mode hybrid sales since its debut in 2007.

Gassy: Making sense of Fisker plug-in hype

The Model T of the plug-in hybrid?

There has been a ton of news about Fisker Automotive in the last several days. I guess being connected to the VP of the US is a pretty smart move, especially when the government is doling out $50 billion in fuel efficient loans and other grants, etc. these days to automakers and suppliers.

Still, how important is Fisker, and it's plug-in hybrids, to America's automotive future?

As with Tesla, I respect Fisker's focus on fuel-efficient, technologically-advanced products, but we're still talking about luxury vehicles. I mean, how much has Porsche, Ferarri, etc. really driven the future of the gasoline-engined auto industry?

Of course, the plug-in future is different. New. One innovation could change everything. Nonetheless, the future of the plug is scale, or millions of sales every year.

After selling more than 2 million hybrid cars, Toyota's hybrid technology still hasn't scaled enough to be cost-effective for most consumers, but Fisker or Tesla can achieve scale via tens of thousands of luxury plug-in vehicle sales per year?

Or, perhaps these luxury plug-in automakers are simply using luxury plug-in hybrid and electric vehicles to bridge to $50,000 'economic' versions that can compete with a Chevy Volt, a plug-in Toyota Prius, or a Nissan Leaf, etc in 2015?

Maybe. Still, I cannot help but ask, is a new automaker really the missing part of the oil-free revolution, or is the real issue the cheap cost of petroleum - at least in terms of pump prices?

Honda going lighter, adding more hybrids

To get lighter and smaller

Stop everything. That's the word around Honda these days.

Regardless of how far Honda's cars are in the development process, Honda is reviewing every vehicle with a new focus on making all of their vehicles cheaper and more fuel efficient. That means a focus on smaller and lighter vehicles, and adding hybrid technology to more of Honda's vehicles according to reports.

Study - Energy costs much more than consumers pay

And plug-ins don't help much if coal-powered

Some great information coming out of the “Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use” study completed by the National Research Council for Congress.

Essentially, America's energy paradigm costs Americans MUCH more than what we pay at the gas pump or in our utility bills. In 2005, for instance, America's 'hidden' costs of energy production added an extra $120 billion in health costs, not including "damages from climate change, harm to ecosystems, effects of some air pollutants such as mercury, and risks to national security, which the report examines but does not monetize."

So, in reality, the costs are even far greater, and converting to grid-powered plug-in vehicles is no quick fix, at least in terms of health costs.

"Electric vehicles and grid-dependent (plug-in) hybrid vehicles showed somewhat higher nonclimate damages than many other technologies for both 2005 and 2030. Operating these vehicles produces few or no emissions, but producing the electricity to power them currently relies heavily on fossil fuels; also, energy used in creating the battery and electric motor adds up to 20% to the manufacturing part of life-cycle damages."

Of course, if national security costs had been monetized, then some of these health costs would be negated.

Consequently, the reports suggests that, "major initiatives to further reduce other emissions, improve energy efficiency, or shift to a cleaner electricity-generating mix (e.g., renewables, natural gas, nuclear) could substantially reduce external effects’ damages, including those from grid-dependent hybrid and electric vehicles."

A few UM plug-in study thoughts

Have automakers over-played the plug?

Like past studies, the University of Michigan plug-in study finds that a number of Americans, 42 percent in this study, are interested in plug-in vehicles. Of course, most of those interested are only willing to pay about $2,500 extra for a plug-in vehicle, which is also in line with most other studies.

The study also finds that foreign oil dependency is a much bigger plug-in adoption factor than is global warming.

Consequently, while there is a market for plug-in vehicles, there seems to be a far greater market for cost-effective, foreign-oil dependency-fighting solutions than what plug-in vehicles are going to address any time soon. For instance, other studies have suggested that as many as 80 percent of Americans are interested in hybrid cars, again, if the price is right.

Obviously, the price isn't right for most Americans today. Nor are there enough hybrid choices.

However, that will have to change if Toyota is to achieve its 30 percent hybrid sales goal by 2020. And, if they can achieve this goal, imagine how many potential plug-in hybrid consumers Toyota will have in its pipeline just as plug-ins start achieving scalability.

Some have called Toyota's plug-in plans "conservative". In reality, aren't Toyota's battery-powered vehicle plans not only more aggressive than every other automaker, but also more realistic?

Even better Ford hybrids on the way

Making the most of the hybrid experience

Think the Ford Fusion hybrid is a great hybrid? Well, you ain't seen nothing yet, at least according to Ford.

Ford and the University of Michigan are working together to bring advanced hybrid technology to market sooner.

"Through virtual testing, researchers are conducting as many as 175,000 design simulations of hybrid control systems a week to further improve fuel efficiency and drivability."

"The new hybrid controller design method we have created has the potential to offer consumers more choice in how efficient and drivable their vehicles are," said Jessy Grizzle, professor of Electrical and Computer Engineering at U of M. "I envision hybrids of the future featuring multiple modes or offering customers the ability to customize their driving experience."

Hybrid cars 30 percent of Toyota sales by 2020

Just the beginning

By 2020 Toyota will offer a hybrid option on every vehicle it sells, according to Takeshi Uchiyamada, Toyota executive vice-president in charge of product development.

Currently, hybrid cars represent 8 percent of all Toyota vehicles, largely led by the Prius hybrid. However, by 2020 Toyota expects that hybrids will make up 30 percent of all vehicle sales.

Still, don't expect the majority of them to be plug-in hybrids, Toyota's bearish view of plug-ins seems still intact. Uchiyamada noted “We don’t think electric vehicles will spread that fast.”

Utilities pledge to strengthen grid for plug-ins

The future of American transportation?

Yesterday, at the Business of Plugging in Conference in Detroit, the CEO of PG&E warned that even a small number of plug-in hybrid vehicles could overwhelm the electric grid if overly localized in one area and charged during peak hours.

Today, at the same conference, utilities collectively pledged to work together to develop infrastructure that can support the commercialization and deployment of plug-in vehicles.

Can utilities do a better job than oil companies of managing America's energy paradigm? Could they do worse?

Honda CR-Z will offer "unique value"

The CR-Z at the LA Auto Show

When the Honda CR-Z hybrid goes on sale in the Fall of 2010, it will "break new ground as a sporty, hybrid coupe with unique value."

So, what does "unique value" mean? Can a two-seat sporty hybrid become Honda's top selling hybrid vehicle?

Subaru's first hybrid coming in 2012

But not as the Hybrid Tourer

At the Tokyo Auto Show, Subaru confirmed that its first hybrid vehicle would be launched in 2012.

While the new Subaru hybrid will use some of the technology showcased in the Tourer Hybrid Concept - symmetrical all-wheel drive, Lineartronic CVT, and a 2.0-liter direct-injected flat-4 combined with a lithium-ion battery - it will be offered in an existing Subaru model.

Bailout shock: "stunningly poor management"

The arrogant duo?

Over the years, I've been a pretty big GM critic. Sure, the Chevy Volt gave me some hope - and it still does - but GM's overall efforts towards fuel efficient products has been disappointing. Even after 9/11, GM didn't embrace hybrid cars or small, more fuel efficient vehicles. Instead, they launched a new line of their biggest, foreign-oil dependent guzzlers.

While I've always blamed poor management for GM's lack of visionary leadership, others have blamed the lack of national health care, yen-dollar exchange costs, sky high oil prices, etc.

Today, Steven Rattner, one time Obama Auto Task force leader, told Fortune he was alarmed by the "stunningly poor management" at the Detroit companies and said GM had "perhaps the weakest finance operation any of us had ever seen in a major company."

"We were shocked, even beyond our low expectations, by the poor state of both GM and Chrysler. Looking just at the condition of GM's finances and Chrysler's new-car pipeline, the case for a bailout was weak," claims Rattner.

Sure, America might have had no choice but to bail out most of the US auto industry, but it's time to close the book on the idea that management at GM couldn't have prevented this crisis.

Aluminum hybrids $3,000 cheaper?

The key to cost-effective hybrids?

"By upgrading from traditional steel to an advanced aluminum body structure, the vehicle's stored energy requirements can be cut by about 10 percent, which could save up to US$3,000 per vehicle since less power and energy is required to move the lighter vehicle," Michael Bull, director of Automotive Technology for aluminum products maker Novelis, Inc. said in remarks to be given on Tuesday at the Center for Automotive Research's (CAR) "Business of Plugging In" conference in Detroit.

Wouldn't the same technology make ALL cars cheaper and more fuel efficient?

3 - 5 plug-ins in one neighborhood could "overwhelm" grid

A solar-powered Prius

The Toyota Prius is hot in California. So, as they become available, it isn't hard to imagine some wealthier California neighborhoods sporting multiple plug-in vehicles, such as a plug-in Prius or a Chevy Volt.

No problem, right? The grid has massive excess capacity, as long as you charge up after midnight.

What happens, however, if a few neighbors with plug-in hybrid vehicles return home from work on a hot summer day and need a quick charge before heading out to run errands?

"You're going to overwhelm the circuits," claims Peter Darbee, CEO of Pacific Gas & Electric Corp. in California, "you would create a peak load on top of the peak load."

$7500 tax credit insufficient to drive plug-in sales?

How much to spur sales?

While the $7,500 federal tax credit available for buying plug-in hybrids is good, larger incentives will be needed to lift sales of plug-ins like the Chevy Volt.

"The costs are very high. The volumes are low," Jonathan Lauckner, vice president of global program management said during The Business of Plugging In Conference in Detroit. "We are competing against a technology, the internal combustion engine, that has been continuously developed and has a 100-year headstart."

Thus, Lauckner suggested more incentives would be needed to drive plug-in sales, at least Volt sales.

So, how much is enough to spur plug-in vehicle sales?

Isn't it possible that the Volt is simply a cost-ineffective technology compared to other plug-in vehicles?

Aptera almost eligible for Energy loans

Time to think differently about 3 wheels

Aptera, and the makers of other three-wheeled vehicles, might soon qualify for Department of Energy loans.

On Friday, Congress passed a bill that allows "any manufacturer of enclosed three-wheeled vehicles that can carry at least two adults while returning at least 75 miles per gallon" to be eligible for some $50 billion on Energy loans for fuel efficiency improving projects.

President Obama is expected to sign the bill.

Batteries to be "core" Nissan business

Nissan's Infiniti M hybrid

Nissan is making rechargeable batteries a "core business" for its long term plans.

"The electric car is going to be a long-term bet, a long-term investment," Nissan CEO Carlos Ghosn told a news conference ahead of the Tokyo Motor Show.

"If you want to go for the electric car, or even for the fuel-cell car, the heart of the system is the battery," Ghosn said.

The perfect hybrid

And the winner is.....

Is the Toyota Prius the perfect hybrid? What if you added some extra batteries and a plug, would that make the Prius the perfect hybrid? How much electric range should it have, as much as possible?

Is 40 miles of electric range the key to plug-in hybrids, such as GM's Chevy Volt is expected to provide?

According to GM's research 90 percent of commutes average less than 40 miles. But, what does 'average' really mean? Isn't it possible that many people drive much shorter distances most days per week, but on one or two days per week, they drive much further?

If your average commute to and from work is only 10 miles or less, and the rest of your mileage is made up of much longer trips, what's the most efficient and cost effective hybrid to meet your needs? Is it a conventional hybrid, a short range plug-in hybrid or a long range plug-in hybrid?

Inevitably, it seems the perfect hybrid will be different for different consumers based on many different needs and wants. Still, is it simply premature to even discuss the perfect hybrid?

Plug-in Prius: The end of Toyota?

Simply too conservative?

The Chevy Volt will offer 40 miles of electric range. The plug-in Prius, on the other hand, will only offer 15 or 20 miles of electric range.

So, is the Volt twice as good as a plug-in Prius?

Transportation program director at the Natural Resources Defense Council, Roland Hwang, told the NYTimes, "From an environmental perspective, the more [electric] range the better."

So, what's Toyota's excuse for its lack of environmental commitment?

At this point in the development of plug-in hybrids, Toyota believes the key to success will be driven by cost-effectiveness. And lower range plug-in hybrids, Toyota believes, make it "easier to promise low cost and durability from the get-go," notes one expert in this informative Times article.

Is Toyota being too conservative with its plug-in hybrid technology?

Really, hasn't Toyota always been boring and conservative? Isn't that exactly what Prius haters dislike most about Toyota's top selling hybrid? Why would they approach plug-in hybrids any differently?

Will the Chevy Volt change GM?

Too many questions?

Since the debut of the Chevy Volt, I've gone from huge advocate to critic. It's not that I've given up on the Volt. If the battery is going to power the future of the automobile, then the Volt is critically important to GM's future.

Still, the Volt's game-changing potential will not be realized for at least a decade. Even then, any number of technological breakthroughs could quickly marginalize the importance of the Volt.

On the other hand, for the next 10 years, minimally, Toyota Prius sales will dwarf Volt sales. Likewise, with Prius-derivatives and other upcoming hybrid cars, Toyota might be selling 1 million hybrids per year as GM sells 50,000 Volts per year.

Ultimately, the Volt isn't a game changing vehicle for most Americans. Even according to Bob Lutz, it's only a vehicle for the 5 percent of Americans that are willing to pay a good chunk of extra cash to help the environment or to fight foreign oil dependence.

Of course, the same could be said of the Prius. However, the Prius will be a cash cow in the next decade. So, perhaps the same future awaits the Volt.

Until then, the Volt's game-changing abilities will be limited to perception. That alone could make the Volt an asset. Still, wouldn't a few cars on the government's Most Fuel Efficient list be even more game-changing?

Surprise? Hybrids top gov's fuel economy guide

Easily the most fuel efficient vehicle sold in the US

Yesterday the government released its 2010 Fuel Economy Guide and, once again, hybrid cars dominated the list, led by the Toyota Prius.

To see the entire list, click Fuel Economy Guide.

GM's shock and awe campaign

Can GM move beyond its gas-guzzling image?

GM's new marketing campaign is going to "shock Americans into a new awareness about the competitiveness of GM products," according to Bob Lutz.

Via any method of comparison, GM believes, their products are as good as any other automaker. And, according to the latest quality rankings, etc., GM has a case.

But is marketing GM's best path to changing perception?

Several years ago, Bob Lutz claimed it would have been smart for GM to utilize just a fraction of one year's multi-billion dollar marketing budget to fund the production of a Toyota Prius-contender. Eventually, Lutz's realization evolved into the Chevy Volt, however, the Volt won't come close to challenging Prius sales for more than a decade, if ever.

While the Volt won't offer game-changing sale's numbers, it will drive a lot of green buzz, but will it bring new consumers to GM?

Ultimately, GM has made huge strides in quality, but according to a recent automotive supplier's survey, for instance, GM's innovation is still lacking. Obviously, the Volt will help address that issue, at least in terms of perception, but it seems to me that GM needs an innovative fuel efficient vehicle that can sell at least 100,000 units per year.

Possibly, the Chevy Cruze could be that product, however, the Cruze will never appear as innovative as the Prius. If GM can find a way to address that product gap, with a product and not marketing, I'd bet GM's perception problems would need far less marketing "shock".

Ford hybrid sales up 73 percent

A nice step

So far this year, according to GreenCarCongress, Ford's US hybrid sales are up 73 percent compared to last year, mostly thanks to the Fusion hybrid. In total Ford has sold 26,016 hybrid vehicles, far more than any other US automaker.

For comparison, Toyota has sold 144,351 hybrids in the US through September, down 28 percent compared to last year.

Still, the real question is, can Ford sustain this sale's pace? In the past Ford has indicated that it could produce as many as 50,000 hybrids per year, a number Ford will come close to reaching this year.

To sustain Ford's current pace into next year, however, Ford will have to increase production, something Ford has been averse to until lithium can replace NiMH.

If that's not soon, then Ford's hybrid sales will probably flatten early next year.

A case for plug-in hybrids

A Prius about to be converted into a plug-in hybrid

My power went out just before midnight last night and I've blown through both of my notebook's batteries.

No worries. My hybrid is full of juice, so I'm working in my car right now, and this whole experience has me thinking about plug-in vehicles.

Until a much more robust infrastructure for EV charging is developed, instances such as these - and it only takes one - will remind consumers of why a plug-in hybrid is simply a more comforting choice of vehicle than a pure EV.

The next big hybrid hit

You've come a long way baby

As battery powered vehicles gain market share over the next few decades, conventional hybrid cars, such as the Toyota Prius, are expected to gain the lion's share, as plug-in hybrids, EVs and fuel cell vehicles scale their way to cost-effectiveness.

So, what will be the next hybrid to hit 100,000 sales per year?

Based upon the auto show circuit and automaker announcements, I'm not sure the next big hit is near, at least not without a serious uptick in gasoline prices.

Even worse, my top contender would be Toyota, with Hyundai and Ford as my wild cards.

So, what's going to be the next big hybrid hit?

Automakers versus utilities: Who deserves the carbon credits?

Who is investing more, utilities or automakers?

Toyota wants the credit.

Since automakers are footing the bill to develop plug-in vehicles, Toyota believes that "potentially valuable emissions credits that California plans to give to utilities for supporting rechargeable cars should go to automakers instead."

The utilities have responded, "in state filings that clean-fuel credits will help them pay for projects needed to service a growing electric-vehicle fleet and prevent increases in customer bills."

EVs leading to a "green bubble"?

Buy the Leaf, rent the $10,000 battery?

By 2020, Nissan's Carlos Ghosn recently claimed, 10 percent of worldwide vehicle sales will be electric vehicles.

Global Insight, however, puts that EV market share figure at .06 percent, according to the DetroitNews.

Likewise, the same article cites a CitiGroup Markets Report aimed at investors in the power utilities and the auto companies that warns cost barriers, the need for massive incentives, range issues, and a lack of infrastructure create the "risk of this [EVs] being another green bubble."

Even before EVs take off, Deutsche Bank believes that hybrid cars, small cars and other fuel efficient technologies will cause an "inexorable and accelerating decline" in gasoline demand beginning in 2015.

If true, how will governments afford massive incentives for EVs and EV infrastructure if their gas tax revenues begin to decline significantly? Furthermore, if gasoline demand declines, won't gas prices also decline and make it even harder to entice consumers into more expensive electric cars?

US on verge of energy independence?

A paradigm shifter?

A few weeks ago I asked, Would natural gas vehicles make sense?

According to an interesting Telegraph piece regarding last week's World Gas Conference in Buenos Aires, the answer is, yes.

Because the technologies for extracting gas from shale and methane beds have evolved much faster than anyone was anticipating, the US - and its large natural gas supplies - is expected to reap huge rewards, while Europe should become less dependent upon Russia.

Consequently, writer Ambrose Evans-Pritchard claims "we may soon be looking at an era when gas, wind and solar power, combined with a smarter grid and a switch to electric cars returns the country to near energy self-sufficiency."

Does buying American really mean anything?

More important to GM's future than America?

I've bought a Japanese car that was made in America.

On the other hand, my father bought a Ford made in Mexico, and many others have bought cars made in America with numerous foreign parts.

Regardless, according to some experts, buying American is still more beneficial to America. "When it comes to longer term benefits, a lot of activity happens in the country in which the company's world headquarters is domiciled," claims Thomas Klier, an economist with the Federal Reserve Bank of Chicago who has written extensively on the auto industry.

Yet, in the very near future, the Chinese market, for example, could become more important to GM's survival than the American market. And, as GM expands in China, GM's Chinese-based design centers, suppliers, and numbers of Chinese employees will also expand.

In a decade or two, it is possible that GM could employ more people in China than in America, build more cars in China than in America, and even export Chinese-designed-and-built cars to America.

Does buying American really matter anymore? Moreover, wasn't it the 'Buy American' mentality that almost destroyed the Big 3 in the first place by enabling decades of inefficient, unreliable and complacent automaking?

Prius still the best selling vehicle in Japan

An investment in Japan's future

For five straight months, the 2010 Toyota Prius has been the best selling vehicle in Japan.

Thanks to tax credits for buying fuel efficient vehicles, the Prius saw a 341 percent increase in September sales compared to the previous September. Likewise, the Prius picked up 10.8 percent market share for the month of September.

Can America dominate the world's automotive future when full-sized pickup trucks still top the list of best selling vehicles in the US?

Change: The kids don't love cars

Like Tweeting is so much more important

According to Cars.com a new JD Power study finds that "Teens and young adults, frequently referred to as “Generation Y” or “Millennials,” have far less of an interest in owning a car than previous generations."

The study found, “With the advent of social media and other forms of electronic communities teens perceive less of a need to physically congregate, and less of a need for a mode of transportation.”

Aside from the realization that telecommuting is probably going to become far more common as these gen-yers join the work place, ideas like car sharing and battery swapping are beginning to sound like legitimate business plans for the future of the auto consumer, or renter.

Prius supplies down to about a week

Time to bring production to America?

Because of yen-dollar rates, it is becoming much more costly for Toyota to export vehicles from Japan to the US. As a result, Toyota is close to a decision on building the Toyota Prius in the U.S., company spokesman Irv Miller said on Toyota's monthly sales call.

Likewise, Miller noted that Prius supplies at dealerships are down to about a week's worth of supply, an amount far below the 50 days worth of supply that Toyota prefers to maintain.

Are automakers clueless about the future?

The future, again?

Clean diesel, ethanol, natural gas, biofuels, small cars, hybrid cars, plug-in cars and fuel cell vehicles: those are just a few of the technologies that could drive the automotive future.

At least that is all that can be determined from the varied solutions that automakers are developing these days to fight high oil prices and CO2 emissions. Yet, are any of these technologies THE future?

Why so many varied approaches? Is it simply the fact that all of these technologies will be required? Are all of these technologies potential game changers? Or, are automakers truly clueless about how the auto industry is going to evolve?

On the other hand, are automakers even in control of the automotive future, or does it all come down to energy policy?

The irreconcilable EV dichotomy?

Madness or genius?

Sure, the Toyota FT-EV II electric car is odd, but is it practical? Is it cost-effective compared to other electric vehicles or even gasoline vehicles?

For instance, how many Americans can afford a two-seat $90,000 electric Roadster just for commuting? Even $45,000 is still far too expensive.

And that's the genius of a vehicle like the FT-EV. It's EV practicality. Why buy more than you need? If kept simple and on task, costs can more easily be contained for EVs, especially EVs built for average commuters.

Of course, is the American auto consumer driven by practicality?

Still, Honda has shown similar ideas, as has Mitsubishi. Nissan's Leaf isn't quite so economically focused, but it's definitely closer to the FT-EV side of the dichotomy growing between cheap EVs and luxurious EVs, as is the revolutionary Better Place idea.

One the other hand, one week luxury vehicle maker Audi is slamming the Chevy Volt, the next week they are announcing plans for the Audi E-Tron, a luxury electric vehicle. The Volt doesn't make sense, but the E-Tron does?

Then again, everyone is building a luxury EV or luxury plug-in hybrid these days, at least a few of them. Isn't this really more about marketing at this time? Besides, are luxury EVs and luxury plug-in hybrid vehicles really the path to cost-effective evonomics? Or, are cost-effective evonomics dependent upon a more practical, efficient realization of the automobile, such as the Leaf or the FT-EV II?

Can Americans really have their EV cake and eat it to, or is a revolution in America's auto culture required to really move America's auto industry, and auto consumer, forward?

Lithium-powered Infiniti hybrid here in 2011

Nissan's first next-gen hybrid?

Nissan has announced that it will launch a new lithium-powered hybrid in 2011.

Other than its 2011 launch date, Nissan is providing few details on the 2012 Infiniti M35 hybrid.

3 hybrids up for Green Car of Year

The greenest of them all?

Three hybrid cars are up for this year's Green Car of the Year Award, at least according to Green Car Journal.

The Honda Insight, the Mercury Milan hybrid, and the Toyota Prius will join the VW Golf TDI and the Audi A3 TDI as the final nominees for this year's award. The winner will be announced at the LA Auto Show in December.

Toyota challenged again, at least legally, on hybrid technology

Built with the patents of others?

For years now Toyota's relative success with hybrid cars has been met with little challenge from other automakers. Toyota is simply the king of hybrids.

However, the hybrid king has been challenged a number of times in court over the years for violating patents used in elements of the Hybrid Synergy Drive.

Today, US trade officials announced they will open an investigation into whether Toyota violated patents owned by Paice LLC.

According to an AP article Toyota has responded that it "has many patents on the hybrid technology and believes that it has strong defenses against all of Paice's claims and that it will prevail in the ITC proceeding."

5 percent hybrid market share: What will it take?

Only with a legitimate Prius contender?

From August to September, sales of hybrid cars dropped a whopping 48.4 percent according to GreenCarCongress. Of course, car and truck sales declined by more than 40 percent, so a huge chunk of this decline is relative. Moreover, in September, the Toyota Prius was still the 11th best selling vehicle in the US.

Nevertheless, hybrid sales fell to just 2.7 percent of total vehicle market share.

So, what takes hybrids to at least 5 percent market share? An equal, but cheaper Prius contender? $4.00 gas? A breakthrough in lithium-ion battery mass production?

Mazda making huge hybrid investment

More zoom, zoom hybrids coming

Mazda will invest $1.1 billion into a new line of hybrid vehicles and other fuel efficient technologies. According to MotorTrend, a new lineup of Mazda hybrids will begin hitting the market by 2015.

Toyota: Fuel cell hybrids ARE the best hybrids

A fuel cell version by 2015?

What's the future of the automobile? Hybrids, plug-ins or fuel cell vehicles?

All of the above according to Toyota.

Obviously, Toyota already sells a number of hybrid cars, and Toyota will begin rolling out plug-in electric vehicles by 2012, followed by fuel cell hybrids in 2015.

While demonstrating how Toyota plans to cut fuel cell costs, the company noted that plug-in vehicles will be used for small, short range intra-city vehicles. However, for larger vehicles and longer ranges, Toyota believes that fuel cell hybrids are the most well-to-wheel efficient autos compared to conventional hybrids, plug-in EVs and conventional gas vehicles.

GM fights Energy Department funding for Aptera?

No funding for innovation and out-of-the-box thinking

So, the government has pumped tens of billions into GM. Likewise, GM has requested at least an additional $10 billion in loans from the Energy Department.

However, GM has been opposing new legislation moving through Congress that would make companies like Aptera eligible for Federal loans because they aren't big enough according to AutoWeek.

So, it's alright for the government to give GM tens of billions of dollars - much of which will never be paid back according to experts - for failing as an innovative automaker, but providing $75 million to an innovative start-up is wrong?

Maybe if GM focused more on innovation rather than lobbying Congress, they could have pulled a Ford and stood strong during this recession.

3 Hybrids up for 2010 North American Car of the Year

Ford's Car of the Year?

Three hybrid cars have been picked as candidates for the 2010 North American Car of the Year. The Toyota Prius, the Honda Insight and the Ford Fusion hybrid are among the 15 contenders picked by automotive journalists from the US and Canada.

The winner will be picked at the 2010 Detroit Auto Show.

Prius: 11th Best Selling Vehicle in September

A cash for clunker hang over?

According to Cars.com, the Toyota Prius was the 11th Best Selling Vehicle in September.

Will the Prius break into the Top 10 next month?

Suzuki makes Swift move to plug-in hybrids

Another series hybrid

Suzuki is bringing the Swift plug-in hybrid to the Tokyo Auto Show.

Not a lot of details have been released so far, other than the fact that the Swift plug-in hybrid is a lithium-powered series hybrid.

Restyled Altima hybrid on the way

Will start hitting dealerships next week

The 2010 Nissan Altima hybrid is on its way to dealerships outfitted with a new, sportier front end, in addition to new wheel choices, fabrics and colors as well. Likewise, the Altima hybrid will include Vehicle Dynamic Control and a number of other high tech options.

Pricing starts at $26,780.