Want an Altima hybrid, but its not available where you live?

Just gotta have one?

I've received a few e-mails from some hybrid car buyers that decided to purchase a Nissan Altima hybrid, rather than a Toyota Prius, simply for the Altima's full tax credit compared to the almost expired, significantly reduced, tax credit on Toyota's hybrid vehicles.

I can see the sense in that.

Yet, Nissan is only selling the hybrid version of the Altima in just 8 states; California, Connecticut, Maine, Massachusetts, New York, New Jersey, Rhode Island, and Vermont. Not all potential Altima hybrid buyers live in these states. So, many are driving hundreds of miles to buy one.

So, where will these 'out-of-area' Altima hybrids be serviced?

Nissan is warning Altima hybrid buyers outside of the 8 states where Nissan is selling the hybrid vehicle, that servicing outside of these 8 states will be very limited and might include several days of delay.

Hybrid tax credit, servicing hassles, tax credit????

Nissan steadily ramping up hybrid efforts

The Hybrid Synergy Drive powered Altima hybrid

Nissan has been a bit of a laggard when it comes to hybrid cars. Yet, who could really blame this company that almost went under less than 10 years ago, for taking a slow approach? Still, it wasn't that Nissan was anti-hybrid, the company just didn't believe that hybrid technology was yet ready for prime time. Thus, Nissan was willing to borrow some hybrid technology from Toyota for the Altima hybrid until some critical breakthroughs occurred.

Now, however, that critical hybrid technology - next generation batteries - seems to be coming to fruition. Consequently, Nissan has opened a new technology center to develop and test lithium batteries and other experimental technologies. By 2010, the company hopes, this effort will evolve into a new line of hybrid vehicles that Nissan believes will rival hybrids from Toyota and Honda.

And Nissan better succeed, if they want to survive according to Yasuaki Iwamoto, auto analyst with Okasan Securities Co. in Tokyo. "Otherwise, Nissan has no chance of surviving the competition," he said. "Catching up won't be that easy for Nissan. It's not as though Toyota and Honda are going to sit still and do nothing."

Nissan's lithium move points to 2010 hybrid wars?

Lithium-powered in 2009?

On Friday Nissan and NEC Group announced that they had finalized a partnership to produce lithium-ion batteries starting in 2009.

According to CNN, Nissan Senior Vice President Minoru Shinohara told a news conference, "the technology behind the partners' latest lithium-ion battery, which has twice the power of conventional batteries at half the size, was ready, and preparations were now underway for mass production and commercialisation."

While Nissan has been bearish regarding hybrid cars - only recently offering the Altima hybrid and only in a handful of states - Nissan's leader, Carlos Ghosn, has repeatedly reminded reporters that he is not opposed to hybrids. Instead, Ghosn believes.......

Finish Nissan's lithium move points to 2010 hybrid wars.

The 4 greenest hybrid vehicles

The Big 3 American automakers were not able to crack the top 12 most environmentally friendly vehicles list this year according to the LATimes. Instead, Asian automakers held all 12 spots. The top four greenest vehicles were the Honda Civic GX, the Toyota Prius, the Honda Civic hybrid, and the Nissan Altima hybrid.

The Toyota Camry hybrid came in seventh place, rounding out the top 4 greenest hybrid vehicles.

Altima hybrid and Lexus LS600h L worth waiting for?

CNNMoney worked with Kelly Blue Book and Edmunds.com to pick 10 new or redesigned vehicles the are worth a look before buying something else, and two of those 10 vehicles are hybrid cars.

On the luxury end, the Lexus LS600h L, the newest hybrid from Toyota's Lexus line, made the list. Now, not too many Americans can afford to buy this Lexus, with a price tag of around $100,000, but if you are a high end car buyer and you would like go green - at least a little green - you can.

For the rest of us, the Nissan Altima hybrid also made the list. Starting at just a little over $24,000, this is a car that far more Americans can afford. Unfortunately, the Altima hybrid will only be available in 8 states for the time being.

So, if you are in the market for a new vehicle, make sure to check out one of these hybrids.

Nissan Altima hybrid pricing and availability

Altima hybrid available in 8 states

The 2007 Nissan Altima hybrid is now available in California, Connecticut, Maine, Massachusetts, New Jersey, New York, Rhode Island and Vermont with an MSRP of $24,400.

With an EPA estimated 42 mpg in the city and 36 mpg on the highway, the Altima hybrid qualifies for a $2350.00 federal tax credit.

Hmmm?? A Camry hybrid, a Prius or an Altima hybrid, all these damn hybrid cars! Finally!

Nissan Altima hybrid tax credit approved

The federal tax credit for the Nissan Altima hybrid has been determined by the IRS. The full credit for qualified consumers will be $2350. However, in order to qualify for the full tax credit, consumers will have to purchase the 2007 Nissan Altima hybrid by the end of March. Those whom buy the Altima hybrid between April and the end September will only receive half that credit, or $1175. During the last quarter of the year, the credit will be reduced to $587.50 (more).

Nissan considering hybrid battery venture

Nissan is "mulling" a partnership with NEC Corp. to develop lithium-ion batteries for hybrid cars and other fuel efficient technologies. "Business daily Nihon Keizai reported on Thursday that Nissan and NEC would set up a joint company next year, aiming to begin mass production of the batteries by 2010." (more)

While Nissan will offer the Altima hybrid in 2007 - its first hybrid - the hybrid Altima will be produced from leased Toyota technology. By 2010, however, Nissan hopes to offer its own hybrid vehicles based on proprietary technology, and a new line of batteries.

Nissan still going to develop electric and hybrid vehicles

While numerous executives at Nissan have been hybrid skeptical, Nissan is still going to begin a five year green program which will include the production of hybrid vehicles, electric vehicles, fuel cell vehicles, and bio-ethanol vehicles. While Nissan remains a bit cautious regarding hybrid cars and their electric motors, the company has also acknowledged that electric motors very well could replace internal combustion engines.

In 2007, Nissan will offer the Altima hybrid in some states, but that hybrid is mainly being built to meet the tougher emissions requirements in some states, and the hybrid Altima is being built from leased Toyota technology.

(AFP)

Nissan VP calls hybrids "unprofitable"

"Hybrids today are not a very viable economic proposition. It's still a loss-making proposition and we'll see," said Dominique Thormann, Nissan North America's senior vice president for administration and finance. "People don't want to pay more for a hybrid. They get a tax credit for it but they don't want to pay the price for the cost of the hybrid," he said.

Of course, what else can anyone from Nissan claim? Imagine the V.P. claiming "Hybrids are profitable, which is why we don't offer any." Of course Nissan will soon offer the Altima hybrid, but they had to borrow technology from Toyota to do so.

On the other hand, Thormann also stated that half the cars sold in America are sold by companies losing money, so it isn't just about hybrid vehicles . Such a statement speaks to the larger issue facing the auto industry: The vehicles that are profitable simply aren't healthy for America or the world in terms of global warming and foreign oil dependency.

Yet, as more and more hybrid supplies are produced, those parts will become cheaper, as will hybrid vehicles. If hybrid vehicles can evolve into plug-in hybrids achieving 100+ mpg fuel economy - including a significant reduction in fueling costs - then hybrids could become cost-effective for consumers and profitable for automakers.

Of course, only some automakers have that vision.

Automakers turning green? Poppycock

There has been a lot of buzz in the media about how automakers are going green and the Los Angeles Auto Show has been cited as an example. I say poppycock.

Sure GM debuted the Saturn Aura hybrid and the GMC Yukon hybrid in LA, but GM's real green buzz was really generated by GM's plug-in hybrid development announcement - even though the company gave no timeline for an arrival. Is it 3 years, five years, 10 years?

Anyway, at the LA Auto Show, GM put far more effort into marketing their massive lineup of huge Flex-fuel trucks and SUVs - not their hybrids. Saturn hybrids, for crying-out-loud, were practically hidden at the show.

While I would applaud flex-fuel hybrids, or very fuel efficient flex-fuel compact vehicles, I cannot call GM's flex fuel trucks and SUVs a huge green move. Flex-fuel guzzlers are little better than gas-guzzlers. Even worse, flex-fuel guzzlers seem too much like another excuse for GM not to focus on real fuel economy.

Aside from GM, Nissan did debut the Altima hybrid, and Ford displayed the newly designed 2008 Mercury Mariner hybrid and the 2008 Ford Escape hybrid, but Ford's real buzz was generated by the new Mustang more than anything. In reality hybrids were minor drivers for both Ford and Nissan at the LA Show.

Then there was a lot of talk about clean diesel and hydrogen. Blah, blah, blah.

Even Toyota, world leader in hybrid cars, was far more focused on promoting the Toyota Tundra, not its Hybrid Synergy Drive. Still, Toyota hybrids did drive significant buzz in LA and it was obvious many were checking out Toyota's hybrids as potential buyers, not just gawkers.

Ultimately, automakers have realized that Americans are interested in green issues, however, the keyword is interested. Most Americans are still unwilling to help fund the green revolution, and I think automakers are keenly aware of this fact. At this point in time, green marketing is possibly more important than green automobiles.

Americans might be interested in hearing and talking about the green revolution and energy independence, but they are definitely not yet willing to revolt against energy dependence by joining the green revolution.

2007 Nissan Altima hybrid update

I was finally able to see the 2007 Nissan Altima hybrid at the Los Angeles Auto Show. Very nice. The price was not posted on this vehicle at the show, unlike most vehicles that were market ready. Since this new hybrid, Nissan's first, appears to be much more of a Camry hybrid contender, than a Prius contender, I'm sure its pricing will be more like the hybrid Camry.

Nissan Altima hybrid at LA Auto show

If you've been waiting to check out the Nissan Altima hybrid, you will finally be able to see it. Of course, you'll probably need to live in Southern California, where the hybrid Altima is debuting at the Los Angeles Auto Show.

An interesting week for hybrid cars

It was an interesting week for hybrid cars. It started with Peugeot's C-Matisse diesel hybrid vehicle. While only a concept vehicle, this hybrid demonstrates that Peugeot is preparing for the hybrid revolution. By 2010, when I predict the hybrid revolution will really getting rolling, Peugeot will be ready.

Then there was an Intellichoice award for the Mariner hybrid, the debut of the 2008 Mariner hybrid, and the debut of the 2007 Nissan Altima hybrid. Plus a number of other hybrid stories which you can review by scrolling down on this blog.

Still, my favorite piece of hybrid news this week was the Astrolab solar hybrid vehicle. This is going to be a production vehicle, not a concept car. While solar hybrids are a long way away from the mainstream, this vehicle demonstrates that the potential of hybrid technology is only just emerging. Shucks, throw in a small fuel cell and the 'hydrogen highway' might not even be needed.

Today's hybrid cars are just the beginning.

Altima hybrid to debut at O.C. Auto Show

The new Nissan Altima hybrid, the first hybrid from Nissan, will make its debut at the Orange County Auto Show in Anaheim, CA. The Altima hybrid will be available for sale in early 2007. (Press Release)

Nissan's hybrid vehicle plans

What's up with Nissan and hybrid cars? Why has Carlos Ghosn been so bearish regarding hybrids? While Nissan plans to offer the Nissan Altima hybrid next year, it will almost certainly be the only Nissan hybrid available until 2010 - when Nissan will begin offering its own hybrid technology. Until 2010, the Nissan Altima hybrid will be based largely on Toyota hybrid technology.

Still, has Nissan and Ghosn really been so bearish?

Sure Nissan missed the early hybrid hype, so what could Ghosn do? I guess about the same thing as GM, 'hybrids don't make business sense'. Yet both GM and Nissan are going to develop hybrids anyway. If hybrid vehicles don't make business sense, does it makes sense to follow the leader, Toyota, down an expensive, bad business path?

How does that make sense?

Obviously, the 'hybrids don't make business sense' automakers realize the potential of hybrid technology could make great business sense - maybe not today, but maybe in the next couple of years. Besides, if gas prices do push higher, consumers won't care if hybrids make business sense to automakers, they'll only care if they save money at the pump.

Nissan and GM to partner on hybrid vehicles?

According to recent reports, GM and Nissan will discuss hybrid vehicle collaboration. Currently, GM is finalizing its own hybrid technology, as is Nissan. Nonetheless, Nissan will lease hybrid technology from Toyota for its upcoming Altima hybrid. Some speculate this potential alliance might focus on collaborative buying of the parts for hybrid cars. (More)

Honda Will Share Hybrid Technology

Honda announced that it would share its hybrid technology if other auto companies were interested, joining at least Toyota and GM/Chrysler/BMW. Already Nissan is going to lease Toyota hybrid technology for the upcoming Altima hybrid, and Ford leases some Toyota software. Perhaps, Honda is making a play for Hyundai, whom recently announced the delay of any hybrid cars until 2009? (More)

Altima hybrid will not be available until 2007

The Nissan Altima hybrid will not challenge the current field of hybrid cars until 2007, rather than in late 2006. The hybrid Altima will only be sold in 8 states and it does not appear that Nissan has high expectations for this vehicle, probably due to the fact that Nissan had to lease hybrid technology from Toyota to produce their first hybrid. If sales of the Toyota Camry hybrid exceed expectations, I'd suspect Nissan will become more bullish in marketing this hybrid.

Click out MotorTrend for more pictures.

Nissan doesn't plan to use Toyota hybrid technology for long

When the Nissan Altima hybrid goes on sale either later this year or in early 2007, it will use hybrid technology that was leased from Toyota.

According to Carlos Ghosn; however, Nissan will not use this technology for long. "I don't think this agreement will go for a very long time," he said Tuesday. "We have other projects and are developing our own technology." (AutoWeek)

Mr. Ghosn has often stated that hybrid technology isn't yet ripe for the market, but he has never said he doesn't believe in hybrid technology. Thus, either Nissan is preparing for a big hybrid development, or Carlos is bluffing and hoping that the sales of hybrid cars collapse.

Altima hybrid to only be sold in 8 states

Are you interested in the Nissan Altima hybrid? Well, your ability to buy one might be dependent upon the state in which you live.

"Nissan's first hybrid, the forthcoming 2007 Altima HEV will only be sold in eight states. To put a geographical point on it, the Japanese automaker will sell the eco-friendly sedan in the Northeast and California: New York, Massachusetts, Connecticut, Vermont, Rhode Island, Maine and New Jersey will join the Golden State. All of the states in question have adopted versions of the latter's zero-emissions vehicle program, which in effect will force manufacturers to sell hybrids." (LeftLaneNews)

In the past Carlos Ghosn has stated that it isn't the right time for hybrid cars yet due to pricing, and I think he still feels that way. Inevitably, the Altima hybrid is not a major hybrid play by Nissan, it is purely a PR move.

While I think the Altima hybrid could be a hot car, its success will be completely dependent upon price. Since the Altima hybrid is being built upon leased Toyota hybrid technology, it will be hard for Nissan to make money off of the Altima hybrid.

Thus, I don't expect Nissan to sell more than 20,000 hybrids simply because the price comparison between an Altima hybrid and a conventional hybrid will be too wide, much wider than it would be if Nissan had proprietary hybrid technology. For this reason I don't think Nissan even wants to sell more than 20,000 hybrid Altimas.

With today's technology, only unique hybrid vehicles, such as the Toyota Prius, will achieve great sales. Converting conventional vehicles into hybrids probably won't rock the auto world until the next generation of hybrid batteries. Of course, now the Toyota Camry hybrid will probably make me eat my words on that prediction.

Altima hybrid still due later this year

Carlos Ghosn confirmed that the Nissan Altima hybrid will be available for sale later this year. While Mr. Ghosn was bearish in his comments about hybrid cars at the New York International Auto Show, Mr. Ghosn said hybrids make sense, especially due to California's clean air regulations.

"At least admit I was the only guy saying, ‘Watch out, the consumer decides, don’t be excited about it,"’ Ghosn said in an interview with reporters at the New York Auto Show [regarding hybrids]. "I have some kind of satisfaction of being a little bit right on this one." (MSNBC)

Of course, Ghosn quickly tempered his remarks, "I didn’t say I didn’t believe in it. I said it’s too early," he said.

I guess that's a matter of perspective. Was it too early for the Toyota Prius hybrid?

Will it be too early if gas hits $3.00 + for several months in a row with spikes into the $4.00 and $5.00 range. I guess if that happens, Nissan will just lease more and more Toyota hybrid technology.

Nissan still not sold on hybrids

In a recent interview with Fortune Magazine, Carlos Ghosn said the company still isn't sold on hybrid cars. "Before going to mass marketing, you have to make sure that, economically, hybrids make sense. In my opinion, it is still not done." No further word on the Nissan Altima hybrid; however. Hopefully, Ghosn's uncertainty won't delay the launch of the hybrid Altima.

Showing off hybrid vehicles in Detroit.

In Invasion of the Hybrids, BusinessWeek states that "The auto giants are putting the spotlight on their eco-offerings at this year's North American International Auto Show in Detroit."

"Hybrid vehicles are proliferating, and not just because gas prices spiked to above $3 per gallon last year. Auto makers showing off new hybrid vehicles and plans at this week's North American International Auto Show in Detroit realize that having a hybrid vehicle lineup is valuable public relations for their images."

While this might be true, it is very interesting to note that there are some very unique and radical ideas in many of these new hybrids. For example, GM will be releasing a dual mode hybrid powertrain, while Mitsubishi is showing off its In-wheel Electric Vehicle (MIEV) hybrid powertrain, and Ford is displaying the Reflex diesel hybrid vehicle.

The autoshow isn't just about hybrid vehicles, its about new hybrid technology, and it is also about new hybrid parts suppliers. To simply call this PR is an understatement.

So what hybrids are just around the corner?

Ford will add the Mercury Milan hybrid and the Ford Fusion to their hybrid lineup by 2008, along with their current hybrids, the Escape hybrid and the Mariner hybrid.

GM will offer its mild hybrid, the Saturn Vue Greenline Hybrid, next year which will be followed by the Chevrolet Tahoe hybrid, Chevy Equinox hybrid, the Chevy Malibu hybrid, and the Cadillac Escalade hybrid.

Honda will add the Ridgeline hybrid and Pilot hybrid.

Nissan has already announced the Altima hybrid, but the Sentra and Murano hybrids won't be far behind.

Hyundai, Volkswagen, BMW, Chrsyler, Puegeot, Subaru and even Porsche have all announced they will also offer hybrids.

Obviously, Toyota, which launched the Camry hybrid in Detroit, will continue to push full steam ahead into hybrids. "I think everything will be a hybrid, eventually. It will either be a gas hybrid, a diesel hybrid or a fuel-cell hybrid," Jim Press, Toyota's North American president and chief operating officer said.

Hybrid cars aren't just critical for the public realtions of auto corporations, hybrid technology is critical for their very survival.

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.

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.

GM and Toyota partner for hybrids?

Multiple reports are coming out indicating a possible partnership between Toyota and GM for hybrid cars. According to Reuters "details of the discussions, which would enable the companies to offer a wider range of gasoline-electric hybrid vehicles sooner than if they worked on their own, remained sketchy."

According to the AP, GM is denying the reports. "There is no truth to that whatsoever," Scott Fosgard, GM's spokesman for advanced technology, told The Associated Press on Sunday (AP).

Already the red hot technology behind the Toyota Prius is being utilized by the Ford Escape hybrid, and will also be utilized by the Nissan Altima hybrid.

GM has stated its interest in hybrid SUVs, so such a partnership might make sense. In addition to the Escape hybrid, Toyota recently launched the Lexus RX400h and the Toyota Highlander hybrid will be released next month.

How long can GM possibly afford to wait?

Hyundai hybrids, something to this story?

There is something about this Hyundai hybrid story that I just can't shake. Over the last decade I've know several Hyundai owners. For the money, the say they love their vehicles.

Now Hyundai is preparing to sell hybrid vehicles in the U.S. built on proprietary technology. Unlike the Ford Escape hybrid, or the Nissan Altima hybrid, which use or will use Toyota hybrid technology, Hyundai will use its own technology, joining Honda as the only other hybrid players.

If the Accent hybrid is able to achieve Prius efficiency for $15,000, in addition to a 10 year warranty, it'll have fantastic potential in America.

The Toyota Prius and hybrid car cost

In 2004, Toyota sold about 135,000 hybrid cars worldwide, including 126,000 Prius models. Yesterday, Toyota announced that it would like to produce 1,000,000 hybrids in the very near future.

Some analysts think this number is obscenely high, unless Toyota can reduce costs. So, is Toyota doing anything to reduce costs?

Toyota claims that one problem with cost is limited production facilities. Prius production, for example, occurs only in Japan. According to the Japan Times, Toyota Prius production currently stands at 180,000 vehicles per year. Thus, Toyota will begin producing the Prius in China later this year, as well as in the United States soon.

Additionally, Toyota believes that spreading its hybrid technology into as many models as possible, while also licensing it to other auto manufacturers, will also drive down costs. For example, Toyota has already signed deals with Ford and Nissan, and is currently working deals with Porsche AG and Fuji Heavy Industries Ltd.

Hence, every time a Ford Escape hybrid, or Nissan Altima hybrid is sold, Toyota hybrids become a bit more cost-effective.

Moreover, some analysts believe that hybrid cars are not really tapping the potential of hybrids, arguing the hybrid SUVs and trucks offer the most to American consumers.

The pre-sales of the Lexus RX400h as well as the buzz around the Highlander hybrid definitely seem to support this belief. And if gas prices stay high, interest in hybrid vehicles will only increase.

Join the Hybrid Buyer's Club.

Will 36,000 Highlander hybrids be enough?

Currently, Toyota is planning to produce 36,000 Highlander hybrids per year, and this won't even come close to fulfilling demand.

While Toyota is trying to consistently ramp up it's hybrid vehicle production capabilities, the interest in hybrids continues to grow at a much faster rate.

Toyota has consistently been able to increase production rates faster and faster on its hybrids, but manufacturing capabilities have not allowed Toyota to come close to matching demand.

This trend will surely continue for some time. Nonetheless, I think Toyota hybrid car production will, minimally, increase by at least 50% per year or more. Within 3 years, Toyota will be making at least 500,000 hybrids per year, in addition to leasing the technology for another 100,000 hybrids, such as the Ford Escape hybrid, Mercury Mariner hybrid, and Nissan Altima hybrid.

Prius hybrid car Super Bowl ad

I didn't watch the entire game last night, but I did watch enough to see the Toyota Prius commercial.

Unfortunately, I have to admit the ad just didn't quite pop as far as I'm concerned. Nonetheless, Toyota has done little marketing for its Prius, particularly because demand for the hybrid car has far out-weighed supply. Hopefully, this is a sign that supply is finally catching up to demand!

Of course while the ad obviously promoted the Prius, it also seemed intended to promote Toyota's hybrid technology, the Hybrid Synergy Drive.

Hybrids are not synonymous with the Prius Car, Toyota seemed to state, rather hybrids are synonymous with the Hybrid Synergy Drive. That technology is not only available in the Prius, but will soon be available in the Toyota Highlander hybrid and the Lexus RX400h hybrid.

Perhaps even more important, the Hybrid Synergy Drive is utilized by Ford in the Escape hybrid, and will also be the technology behind the Nissan Altima hybrid, and some Subaru hybrids.

By branding technology, rather than just specific vehicles, Toyota is marketing its technological innovation and leadership, while creating a clear distinction between its hybrid offerings and those of most competitors.

One can almost imagine a future marketing caveat on the Escape hybrid or Altima hybrid, "powered by Toyota's Hybrid Synergy Drive". I'm sure that neither Ford, nor Nissan, would co-brand in such a way, but that doesn't mean that Toyota won't try to create that impression.

The fact is, it's true.

Join the Soultek Hybrid Car Club.

Subaru Legacy hybrid coming soon? Toyota and Subaru close to partnership

Reports are circulating that Subaru will lease Toyota's hybrid technology, and that Subaru will help supply hybrid batteries to Toyota.

Subaru maker, Fuji Heavy, is partially owned by GM, which has a hybrid partnership with Chrysler, but that partnership is focused mostly on developing larger hybrid vehicles, particularly trucks and SUVs.

Subaru; however, wants to focus on utilizing Toyota's hybrid technology for it's Legacy and other North American models, and it sees Toyota's Prius hybrid technology as the answer.

Talks between Toyota President Fujio Cho and Fuji Heavy President Kyoji Takenaka are expected to take place soon.

This would mark the third automaker to lease Toyota's hybrid technology. Ford was the first to lease Toyota's revolutionary technology for its Escape hybrid, followed by Nissan for it's Altima hybrid.

"Car companies are at a crossroads"

In the article Taken for a ride, Thomas Kostigen takes a very bearish view of hybrids and fuel cells.

Kostigen does make some good points. Specifically, he notes that American car companies, particularly GM and Ford, have become more like financial companies that make automobiles, rather than automobile manufacturers that also have a financial arm.

Mr. Kostigen opens his article referencing Nissan's claim that hybrid cars make no economic sense. He also notes that fuel cell cars are even more of a dream than hybrids.

Well, Nissan's claim really doesn't mean much to me. How can you say hybrids don't make economic sense, then announce your first hybrid, which is exactly what Nissan's CEO, Carlos Ghosn, did when he ridiculed hybrids.

Ladies and gentlemen, hybrid cars don't make business sense, which is why I'm proud to introduce our first hybrid car, the Altima hybrid.

That's double-talk, and what else can you expect from Nissan?

Here at Nissan we believe hybrids are the future. That's why we haven't invested in this technology and are forced to lease it from our main competitor, Toyota.

Since the Altima hybrid still won't be out for more than a year, in reality, what else could Mr. Ghosen say?

The fact is, the only reason GM and Nissan are making hybrid cars is because they realize that if the model succeeds, they will be out of the car business without any hybrid models.

In my book, Mr. Ghosen's spin is nothing but an attempt to buy time.

Yet, Mr. Kostigen concludes his article, "The future of car companies may not rest in how sleek, fast or comfortable their products are, rather in how efficient (read economic, not fuel) they can make them.

O.K., I can agree with that statement.

Then Kostigen states, "That's bad news for environmentalists and alternative-energy seekers. It also provides keen insight into how an industry that's had a chance for years to be cutting-edge consistently goes retro in doubt."

Does the new Mustang or Charger ring any bells?

Yet, even if Kostigen is correct, and price is all that counts, Japan wins without doubt. In particular, Toyota takes over the automotive world.

Toyota's kaizen-driven manufacturing philosophy, i.e., efficiency driven, has already given the Japanese company a huge advantage over the likes of GM, Ford, and Chrysler.

More important; however, is the fact that Toyota President Fujio Cho, just recently announced to the automotive world that the hybrid powertrain is the key to Toyota's future.

Already Toyota Prius demand is far beyond supply, and a 100,000 new Prius will not fill demand in 2005. Without a real competitor, the Prius is demonstrating that it will achieve much more than "niche" production.

Yet, Toyota is only getting started.

Toyota's next hybrid, out in just a couple of months, the Lexus RX 400h hybrid, has already received more than 10,000 orders, as well as interest from another 50,000 consumers. In fact, initial demand on the RX 400h, the world's first luxury SUV, was so far beyond supply that its release date had to be pushed back.

Shortly after the Lexus 400h hybrid is released, the Toyota Highlander Hybrid will follow. Unbelievably, interest in the Highlander hybrid is even far more spectacular than the 400h hybrid.

Next year alone, Toyota could easily sell 250,000+ hybrids, if it is capable of producing that amount of vehicles.

Of course, if gas prices continue to rise, and state legislation continues to demand fewer emissions from automakers, 250,000 hybrids won't even be enough to come close to matching this year's demand.

While Mr. Kostigen is correct in noting that most car companies are not worth investing in, one certainly is, Toyota.

And that's good news for environmentalists and alternative energy seekers.

Nissan to release Altima hybrid, but CEO not yet sold on hybrid vehicles

In a speech on Saturday at the National Automobile Dealers Association convention Nissan chief executive Carlos Ghosn told 4,200 car dealers and other industry professionals that hybrids, "make a nice story, but they're not a good business story yet because the value is lower than their cost.

Of course, at the same time, Ghosn's only major other announcement was that Nissan was going to be releasing the Altima hybrid.

(Click here for the complete story)

GM "Missed Boat" on hybrid cars

Hybrid cars are just an emotional piece of marketing, according GM vice chairman for product development, Bob Lutz.

"We business-cased it, took a hard, analytical look and thought the engineering and investment were irresponsible vis-a-vis our shareholders," he said. "We failed to appreciate what Toyota has basically treated as an advertising expense."

Really. An advertising expense?

Yet, not only does Toyota maintain that it makes money off every Prius it sells, but that hybrids are the powertrain of the future for Toyota. Additionally, Toyota is also making money off leasing its hybrid technology to Ford, for use in the Escape hybrid, and Nissan will also be using the technology for its Altima hybrid.

Perhaps it might be nice if GM focused on customers, just once, rather than shareholders. GM vehicles are created for customers, not shareholders.

"From a strict business proposition, this is not where we would make an investment," said Lutz. "It's not clear that you'll ever be able to recapture the cost of a hybrid in the pricing. But what we forgot in the equation was the emotional aspect of it."

Hmmmm, Mr. Lutz. I guess the fact that Toyota credits the Prius as a main reason for overtaking more of GM's American market-share wasn't an important consideration in your decision making criteria?

Maximizing profit in the short term, at the expense of the long term doesn't sound like rationale investing.

In hindsight, "we should have said, 'We'll lose $100 million a year on hybrids, but we'll take our advertising budget of $3 billion, make it $2.9 billion and treat it as an advertising expense,' " he said.

"Toyota very cleverly has used hybrids to gain an improved perception of the brand."

Improved perception, Mr. Lutz? Two words for you, sir, Resale Value. Toyota has it, you don't.

"Since we've made a major commitment, I don't want the market to go away."

Why not if hybrids are only a marketing ploy? Why keep wasting 100 million per year on marketing your weaknesses?

It's really pathetic that GM and Mr. Lutz just can't admit mistakes. It took Toyota 9 years to really make the Prius a winner. That kind of innovation and development is certainly not some marketing ploy, it's responsible R&D.

American automakers, such as GM, didn't miss the boat on marketing the perception of a better product, they missed the boat on creating the best automotive products.

That's not what you expect from the world's largest automaker. Of course with that kind of leadership, or lack thereof, GM won't maintain that title for long.

More 2005 Hybrid cars.

Nissan will also make hybrid cars in U.S.

Nissan will start producing the Nissan Altima hybrid in the United States in 2006.

Similar to the Ford Escape Hybrid, the Altima hybrid will be built with leased Toyota hybrid technology.

Nissan has stated in the past that they would lease hybrid technology in the short term, to meet customer demand, while finalizing their own hybrid system.

According to initial reports, Nissan is planning to produce about 100,000 Altima hybrids over the next 5 years.

Nissan becomes the second Japanese automaker to announce hybrid car production in the U.S.. Earlier this week, Toyota confirmed plans to also build hybrids in the U.S. next year.

Neither company has announced where exactly these cars will be produced. Some have speculated that California might be the location as over 40% of all Toyota Prius sales take place in California.

At this time, Toyota hasn't confirmed that it will produce the Prius in the U.S., though it hinted strongly towards that move.

In April, Toyota will be releasing the Lexus RX 400h hybrid SUV, followed by the Toyota Highlander Hybrid just a few months later. Additionally, Toyota has announced plans for a 2006 Lexus GS Sedan hybrid.

Perhaps one of those vehicles will also be added to the mix as well.