Thursday, July 02, 2009

Waiting for the EV revolution? Grab a comfy chair

Is the Prius already old technology?

Over the years I've heard many say they won't buy another car until it comes with a plug. Well, for most Americans, they'll be waiting a long time for a new car, especially if they want a pure electric vehicle.

In a new article today, Ron Cogan asks, "Will buyers pay $15,000 to $25,000 more for a vehicle that runs solely on batteries compared to a similar gasoline or clean diesel model?"

Of course not, which is why conventional vehicles and hybrid cars, including plug-in hybrids, will be the dominant automotive technologies for the short-to-midterm, or even longer.

And analysis by Bosch Automotive Group suggests the same. "The electric car will come, but in small numbers at first. It will occupy a niche and will not make a noticeable mark on the roads until after 2020." Ultimately, "dominance of the internal-combustion engine will remain unchallenged over the next twenty years."

Is the government's focus on plugging in too much too soon? Shouldn't the focus be on getting batteries, especially next gen batteries, into as many cars as soon as possible, rather than just those with plugs? Can America really afford to give the cheap hybrid vehicle market away to the Asians the same way we gave away small cars just a few decades ago? Even worse, might this focus on the plug be counter-productive to developing an American battery manufacturing industry?

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Another step towards GM's lithium BAS hybrids

Another step towards GM's new mild hybrid vehicles.Lithium powered in 2010?

By the second half of 2010 GM should begin rolling out a few new hybrids with its upgraded BAS mild hybrid system. And the lithium-ion batteries for these new hybrids will be powered by Hitachi.

Today, Hitachi announced that it is planning to significantly increase production of its lithium ion batteries in advance of an expected significant increase in demand. So far, GM alone has already ordered enough cells for 100,000 hybrid vehicles.

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Wednesday, July 01, 2009

Ford hybrid sales up 91 percent in June

Ford hybrid vehicles post impressive gains in sales compared to last year, but is the hybrid sales increase really as noteworthy as it seems?But, it's not quite as good as it sounds

Sales of Ford hybrid cars were up 91 percent in June compared to last June, largely thanks to the new Fusion hybrid. Then again, last year at this time, supplies of the Escape hybrid were so low that I'm not quite sure this number is as impressive as it sounds.

Overall in June, Ford sold 3,649 hybrid vehicles. For comparison, Toyota sold 16,744 hybrids.

Without doubt, this is a nice improvement for Ford's hybrid sales. Nonetheless, until Ford takes on the Prius, Ford will remain a minor hybrid player compared to Toyota.

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Optional head lamp could destroy Toyota Prius

Could a faulty head lamp affecting only hundreds of the hundreds of thousands of Toyota Prius owners really cause pain for the king of hybrid cars?Dead on arrival?

Boy, read MotorTrend or AutoWeek this morning and one might think the world has crashed on the king of hybrid cars and it's Toyota Prius.

An optional, upgraded head lamp has been faulty and potential class action lawsuits are in the works. Yet, from what I've been able to determine, this is a problem affecting only hundreds of Prius owners. Perhaps many others aren't complaining, and this problem is affecting a couple thousand owners. Nonetheless, we're talking a tiny faction of Toyota Prius owners.

Certainly, if this is a shoddy product, Toyota should recall and fix this problem. Regardless, is this something that could really hurt Prius sales, or is this just something that MotorTrend and AutoWeek are hoping will hurt Prius sales?

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Tuesday, June 30, 2009

Would GM gain anything from a rebadged Prius?

Toyota hybrid cars rebadged as GM hybrids? GM's next green dream machine?

OK. GM has crushed the idea of using Toyota's hybrid technology numerous times. Nonetheless, there is another rumor out today that Toyota and GM are discussing the possibility of re-utilizing their joint NUMMI venture to rebadge Toyota Prius hybrids for GM.

Regardless of the fact that I'm 99.9 percent certain such a partnership would never happen, what would GM have to gain by such a venture?

Almost certainly, GM wouldn't make any money off these hybrid vehicles, and I don't think they would provide any more green PR than the Chevy Volt is already providing. Even worse, these cars would cast much doubt on GM's upcoming lithium-powered BAS hybrid powertrain.

Am I missing something? Why won't this rumor just go away?

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Consumer Reports slams Honda Insight

The Honda Insight hybrid is not recommended by Consumer Reports. The king of hybrid cars is still, easily the Toyota Prius.The most disappointing Honda in years

I have not yet seen the August issue of Consumer Reports, but according to CNN, CR will not recommend the Honda Insight, noting its poor "ride quality, handling, interior noise, acceleration, and rear-seat access."

In fact, out of 22 hatchbacks and small wagons, the Insight placed second to last.

Honda countered by saying initial consumer feedback and auto media press has been much more favorable regarding Honda's latest hybrid.

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Monday, June 29, 2009

Toyota halts diesel plans. Banking on gas hybrids

No serious move towards diesel from any automakers outside of Europe? Toyota much more interested in hybrid cars.Diesel only for Europeans?

Despite an uptick in recent US diesel vehicle sales, probably thanks to a significant drop in diesel fuel prices, Honda, Chrysler, Ford, General Motors, Nissan and Toyota have "halted diesel programs because of spiraling costs and other problems," according to AutoWeek.

Toyota followed up this news with the comment that they are "banking heavily" on gasoline-powered hybrid vehicles.

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$4.00 gas: America's only hope for change?

What will it take to push people into hybrid cars and more fuel efficient vehicles? $4.00 gas.Otherwise guzzlers will still be America's top sellers

If gas prices hit $4.00 today, what would happen?

According to a survey by Cars.com, 40 percent of car shoppers would immediately buy a more fuel efficient vehicle today. Another 41 percent would buy a more fuel efficient vehicle when they were ready to buy another auto.

However, if gas were $3.75, instead of $4.00, only 29 percent would buy a more fuel efficient vehicle.

Even more noteworthy, at $2.50 - 2.75, 64 percent of new car shoppers won't even consider a more fuel efficient vehicle.

I guess it's not really that surprising that US automakers are still dragging their feet on cheap hybrid cars, or even a real push towards hybridizing their truck fleets. Without much higher gas prices, Americans just aren't that interested.

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Wednesday, June 24, 2009

2012: GM's hybrid offensive begins?

Will GM's non plug-in hybrid vehicles ever take on the king of hybrid cars, the Toyota Prius?Was the dual mode Vue hybrid a contender?

GM has been talking about a big increase in it's hybrid vehicle portfolio for a number of years now. Today, GM reiterated those plans of 14 new hybrid vehicles by 2012.

Since that statement, MotorTrend has tried to guess GM's future hybrid line up. Sadly, outside of the Chevy Volt, not much looks that impressive. Hopefully, 14 different models, some rebadged, will collectively help GM move some hybrids and provide some scalability for these technologies.

Ultimately, however, there are still some key questions. First, can an updated BAS System with lithium really make GM's mild hybrids that much more compelling? Second, will the dual mode hybrid powertrain ever be cost-effective, especially in smaller SUVs and crossovers that might not need all the functionality that the dual mode hybrid powertrain provides?

Regardless, I'd prefer just one or two new hybrid models, each capable of selling at least 50,000 units per year, instead of 7 more that each sell 10,000 units, or less, per year. Thus, I'm hoping, possibly beyond hope, that GM has at least one hybrid wild card up its sleeve.

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3 Hybrids up for European Car of the Year

Gaining ground in Europe?

Hybrid cars probably won't become major players in Europe until they are offered in diesel versions. Nonetheless, three hybrids are up for the 2010 Car of the Year in Europe. The new third generation Toyota Prius, Lexus RX450h, and Honda Insight were all given a nod in Europe this year.

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Is the US auto industry headed in the right direction?

Are US automakers really prepared for the future? Can US automakers compete in the fuel efficiency game? Can they compete at mass producing hybrid cars and plug-in vehicles?China's BYD hybrid on track for 2011 US launch

The other day a new University of Michigan study found that US automakers have perpetually underestimated the importance of fuel efficiency in the American market. However, a robust change towards fuel efficiency could be a huge cash cow for US automakers.

But are US automakers making the right moves?

America's most notable future product, in terms of fuel efficiency, is the Chevy Volt. Yet, the Volt's most important piece of technology, the lithium battery, is based on South Korea's LG Chem chemistry. Interestingly, LG Chem is also developing the cells to power Hyundai hybrids, another Korean company. Yet, if Hyundai has perfected the lithium polymer battery, Hyundai's battery technology might already be superior to GM's.

And what of smaller, cheaper cars and hybrids?

Again, there is Hyundai, but also BYD, Mahindra, Tata, and many other emerging automakers that could become very competitive within the next decade. And, many of these automakers - which have far cheaper labor costs - are building their entire business models on cheap, small vehicles and alternative technologies.

Moreover, like Hyundai, BYD has a hometown lithium cell provider, itself. BYD also has far easier access to lithium than does any US company.

Ultimately, I'm certainly not arguing that US automakers cannot compete, especially Ford. However, it seems US automakers need to think far beyond CAFE. If US automakers are to be successful a decade from now, don't they have to raise and lead the fuel efficiency bar across all automotive segments?

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Tuesday, June 23, 2009

Toyota's hybrid ride back to profitability

Are fuel cell cars dead? Only in America.Will also start selling fuel cell hybrids in 2015

At a shareholder meeting yesterday Toyota vice president Masatami Takimoto told attendees that Toyota would increase its line of hybrid cars, in addition to cost-cutting, to return the company back to profitability.

Likewise, when asked about zero emission vehicles, Takimoto stated that Toyota would begin selling new fuel cell cars in 2015 as part of its plan to stay ahead of the green vehicle pack.

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Monday, June 22, 2009

Hybrid wild card: Hyundai and its lithium polymer battery

Is Hyundai ready to make hybrid cars a critical focus for their future operations. Can lithium polymer batteries make Hyundai a legitimate threat to the king of hybrid vehicles, Toyota?Is the Sonata the right play?

Hyundai has yet to sell a hybrid in the US, and it's first hybrid will be the Sonata hybrid. Without a unique hybrid, can Hyundai really compete in the hybrid cars segment?

Certainly, Hyundai's debut of its Blue Drive Hybrid system at the LA Auto Show - featuring lithium polymer batteries - was extremely compelling. Still, how much will this technology cost, and without a unique hybrid offering, does lithium polymer matter?

I'm not sure, but after today's impressive jump in vehicle quality by Hyundai, I can't help but wonder if Hyundai isn't ready to kick up its entire operation a notch - an operation significantly focused on fuel economy. Hyundai has made numerous forward looking statements on CAFE, hybrids, etc. in recent years, but has this all been just talk - typical auto industry PR - or has Hyundai been preparing for this walk all along?

Hyundai might just now be finding its stride, and if Hyundai has also mastered the lithium polymer battery for hybrid cars.......well, you ain't seen nothing yet.

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Friday, June 19, 2009

Why vouchers for clunkers, but only credits for hybrids?

Shouldn't Congress use the cash for clunker voucher as a model for pushing consumers into hybrid cars and electric vehicles?An increase in hybrid pickup truck sales?

Alright. I'm not a big fan of the cash for clunker program that has now passed Congress. Anyway, I hope that it leads some guzzler drivers to upgrade into hybrid vehicles, although I doubt many will take such action.

What I find more interesting, however, is how easy Congress made it for guzzler drivers to upgrade into a new guzzler, yet how consumer unfriendly hybrid tax credits have been.

Trade in your old SUV or truck for one that achieves just 2 mpg better fuel economy and the government hands out a $3500 voucher? Wow. But buy a hybrid and your possible tax credit is dependent upon our crazy tax code?

Hopefully, Congress will reconsider the current tax credit for plug-in hybrids and EVs and make it as consumer friendly as it's doing with the guzzler program.

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180,000 Prius orders in Japan already

Toyota Prius sales continue to sky rocket in Japan.Can Toyota build 'em fast enough?

The new Toyota Prius has barely been on sale for a month in Japan, and already 180,000 orders have been placed for the hot new hybrid - more than Toyota was hoping to sell in Japan for the year.

In the States, the Prius is slowly starting to hit some dealers, but the supply of the new Prius is extremely low. So, if you're in the market, be prepared for a long wait.

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Wednesday, June 17, 2009

What hybrid vehicle issues interest you most?

What kind of hybrid vehicle issues would you like to see Hybridcarblog cover more often? What is it about hybrid cars that you are most interested in reading?Upcoming hybrids?

What hybrid car issues most interest you?

Is it the latest news on the latest hybrid cars, or the latest hybrid technologies and concepts? Is it the politics behind hybrids, such as tax credits, foreign oil dependency, gas taxes, etc?

Are you interested in hybrid performance issues, such as hybrid problems, hybrid customizations, or hypermiling?

What hybrid vehicle issues would you like to see more of on Hybridcarblog?

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Hyundai LPI hybrid ready to hit Korean market

Hyundai hybrid cars ready to roll, at least for the Korean market.Will lithium polymer batteries be cost-effective?

In just a couple of weeks Hyundai will begin selling the Elantra LPI hybrid in Korea. With a gasoline equivalent of 51 mpg, the Elantra hybrid is out to prove that mild hybrid cars can compete. Of course, it isn't just hybrid technology that makes this vehicle efficient, it's the liquefied petroleum injected engine as well.

Still, Hyundai's recent claim for hybrid fame has revolved around it's lithium polymer battery technology using LG Chem cells. Hyundai claims the battery offers "65% more power density; 15% more energy density; 12% more energy efficiency; and 43% better state-of-charge estimation," according to GreenCarCongress.

In a little more than a year, Hyundai will begin selling it's first hybrid vehicles in the US. We'll find out then how cost-effective is Hyundai's lithium-powered hybrid drive.

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Tuesday, June 16, 2009

Innovation: Is GM capable of quality hybrids?

Can GM really compete at making hybrid cars when it's not a very innovative company?Can the Volt buck the trend?

Many times I've read that GM is going to set the new standard of hybrid and electric vehicles with the Chevy Volt. It will be the most innovative technology on the road many have claimed.

While I find the Volt to be revolutionary, at least in concept, I've long worried that it won't make financial sense for most consumers, especially in the short-to-midterm. Moreover, I've never felt the Volt was an excuse not to produce more hybrid cars like today's Toyota Prius.

Yet, the real question might be, is GM capable of such revolutionary innovation?

According to a new JD Power supplier survey, GM is considered the least innovative of the top 10 automakers.

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Monday, June 15, 2009

Buick plug-in hybrid coming?

The Saturn Vue plug-in hybrid

Now that Saturn is dead, at least as far as GM in concerned, the Saturn Vue plug-in hybrid concept is also dead. Not long ago, however, GM announced that the dual mode plug-in hybrid technology powering the Vue hybrid would find its way into another GM brand.

According to some, that new brand will be Buick, although this rumor has not been confirmed by GM.

While I'm glad to see GM's dual mode hybrid plug-in hybrid powertrain remain alive, I have worries about its potential. Currently, GM's dual mode hybrid vehicles have not sold that well. Thus, it seems a little doubtful that adding even more expensive plug-in technology to such vehicles would offer much change.

On the other hand, the Saturn Vue is built on a much smaller platform than GM's current dual mode hybrids. So maybe there still is hope.

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Friday, June 12, 2009

Toyota: NiMH more cost-effective than lithium

Toyota could have powered the new Prius with lithium, but it wasn't cost-effective?It could have been lithium powered?

There was a time when it seemed that the third generation Toyota Prius was going to be powered by lithium-ion batteries. Then some cell phones and laptops exploded and, not long after, came the announcement that the new Prius would not use lithium.

According to Akira Kuroda from Toyota's Hybrid Vehicle Material Engineering Division, Toyota's decision not to use lithium wasn't about unreliable battery technology. Instead, it was all about cost.

Over the years Toyota has been able to bring down the cost of its NiMH battery packs "dramatically" and cost reductions, notes Kuroda, are the key to the continued success of the Prius.

Nonetheless, Toyota has had 126 lithium powered Prius hybrids on the road for over 3 years, and so far these vehicles have provided promising results. Moreover, Toyota is prepared to utilize lithium for both its plug-in Prius and its electric vehicles. However, don't expect a conventional Prius to use lithium until lithium costs can be significantly reduced.

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Thursday, June 11, 2009

1,000,000 hybrid cars sold per year, but none American

Japanese automakers will begin selling about 1 million hybrid cars per year. What will US automakers be selling?Will American automakers ever offer a $20,000 Prius-contender?

Within about the next year Toyota and Honda believe they will, combined, begin selling 1,000,000 hybrid cars per year. American automakers on the other hand, combined, won't even sell 100,000 hybrids.

Certainly, American automakers have future products intended to leapfrog the Toyota Prius, but how realistic are those plans?

For instance, Toyota also has plans for electric vehicles and plug-in hybrids. Can a vehicle like the Chevy Volt steal all of Toyota's green market share? I mean honestly, GM is still many years away from producing 100,000 Volts per year. Doesn't GM need much, much more than the Volt?

Perhaps gas prices will decline, or at least stagnate for a number of years. If not, however, is there any real reason to believe that US automakers are anywhere close to being correctly positioned for the future?

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Honda CRZ hybrid coming early next year

Honda ready to bring a few new hybrid vehicles to market in the next year or so along the way to selling 500,000 hybrid cars per year within the next year.Can a sporty hybrid sell?

Honda Executive Vice President Koichi Kondo has confirmed that the Honda CR-Z hybrid will go on sale early next year and that the new hybrid will cost more than $20,000. Sometime thereafter, according to Kondo, the Honda Fit hybrid will follow.

Finally, in the next year or so, Honda believes it will be selling 500,000 hybrid vehicles per year.

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GM kills current mild hybrid system

GM'sMild hybrids just aren't selling

With inventory backing up on GM's mild hybrid vehicles, such as the Chevy Malibu and Saturn Aura hybrids, the General - or is it the Government - will stop producing these vehicles until they can be replaced with an upgraded mild hybrid system. The new mild hybrid system, to be launched summer of 2010, will utilize lithium-ion batteries.

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Tuesday, June 09, 2009

Time to restore hydrogen and fuel cell funding?

Fuel cell hybrid vehicles are worth the risk, let's restore funding for their programs.Another fuel cell concept from Honda

Today, a number of organizations and trade groups called on Congress to restore funding for hydrogen and fuel cell research. Forgive me, but I think it's a great idea.

Certainly, many will point out that fuel cells are some never ending fairy tale with a conclusion that is perpetually just around the corner. Even worse, hydrogen production simply doesn't make sense.

Yet, Asian automakers - the same automakers that have beat US automakers to every punch - are still aggressively pursuing fuel cell vehicles and hydrogen production, as are most major European producers. Moreover, to assume that science has nothing left to offer on this front is, well, not very scientific.

Fuel cells should never have been a reason not to purse hybrid cars and other electric vehicles. Nonetheless, battery powered electric vehicles are no reason not to pursue hydrogen powered electric vehicles. Today, for instance, EV infrastructure is more myth than reality, especially if that infrastructure is to be powered by clean energy.

Spending a few hundred million on fuel cell and hydrogen research is chump change. We've already spent billions on Chrysler, a completely inept car company. Yet, we can't spend a few hundred million on a gamble that could revolutionize the entire energy paradigm?

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And the luxury hybrids keep coming - even Lamborghini

Luxury hybrid vehicle models are becoming the most common type of hybrid car.A BMW Active Hybrid Concept

Several months ago I was in Detroit for a media briefing. After, a GM driver took me back to the airport in a Chevy Tahoe hybrid, and I learned that my driver had been driving both the Tahoe hybrid and the conventional Tahoe a lot recently.

Consequently, I asked, "If you had to pick one of them, which would it be?"

"The hybrid," he responded instantly, citing the superior performance of the hybrid Tahoe. Of course, if he had to pay for gas, he probably would have mentioned the fuel savings in addition to the performance.

Hence, I guess it's no surprise that Lamborghini is rumored to be planning a hybrid version soon, or that BMW is now also planning a BMW 1 Series hybrid, in addition to other hybrids. Porsche, Mercedes, Lexus, Infinity - all have, or have plans for, hybrid cars.

So, is a hybrid Lamborghini really that surprising?

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Monday, June 08, 2009

Still some issues with hybrid vehicle safety

Time to fix up some safety issues with hybrid carsA Prius before plug-in conversion

Hybrid cars are not your grandparent's cars. They are different.

Consequently, for instance, if a hybrid passenger is involved in a serious accident requiring a forced removal of passengers, such as via the jaws of life, it will probably take longer for emergency personal to free hybrid passengers compared to those in conventional vehicles.

Inevitably, ensuring that the battery of these vehicles is off is critical to the safety of both passengers and emergency workers.

Unfortunately, according to an interesting MSNBC report, disabling the batteries of hybrids doesn't just very by brand, but even by model - creating confusion for emergency workers that could, in a worst case scenario, mean the difference between life and death.

Certainly, at least in my opinion, this is no reason to forgo a hybrid purchase. However, hopefully, automakers will soon come together to standardize better basic safety guidelines for battery powered vehicles.

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Does the Volt really resonate in America?

Can the Chevy Volt change America's lack of desire to spend more on hybrid cars to help fight foreign oil dependency?More hype than reality?

GM is holding a technology briefing today that will include updates on GM's new, fully operational battery lab as well as more confirmation about a new fleet of pre-production Chevy Volts. None of this news, however, is really that new if you've been following the Volt story.

In a nutshell, however, the Chevy Volt is on track, even ahead of schedule. More important, GM believes it can significantly reduce costs, especially regarding the battery, by just the second generation. Nonetheless, the Volt will still cost a good bit more than both a conventional vehicle, as well as a conventional hybrid vehicle like the Toyota Prius.

So, can the Volt really be America's car?

Numerous studies indicate that most Americans are very concerned about foreign oil dependency, and they believe that hybrid cars are a strategically important part of ending this dependency. Yet, the majority of these Americans are not willing to pay extra for these strategically important vehicles.

Can a potentially revolutionary American hybrid, or range extended electric vehicle, change this complacent attitude? Or, are significantly higher gas prices the Volt's only chance of serious market penetration?

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Thursday, June 04, 2009

Toyota Prius tops Japanese car market in May

Hybrid vehicles continue to rule the Japanese auto market.Top selling car in Japan

For the first time ever, the Honda Insight made a hybrid vehicle the top selling vehicle in Japan for the month of April. In the month of May, the Insight fell to third place.

Nonetheless, hybrid cars are still dominating the Japanese market. In May, the Toyota Prius was the top selling vehicle according to MotorTrend.

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Fusion hybrid: Most patented car ever. So what?

Can Ford become a major player in the hybrid cars segment? So far the news appears compelling, but Ford needs to significantly increase their hybrid output before anyone can make that call.Ford's most important car ever?

The other day Ford sent me a press release claiming that the Ford Fusion hybrid is the "most patented car in history".

Then why am I so unimpressed?

While I believe the Fusion hybrid is a fantastic automobile, Ford has no plans to sell more than 25,000 of these hybrid vehicles per year. Other than for marketing purposes, what does that really do for Ford?

Granted, Ford is almost assuredly waiting to finalize lithium development before mass-producing any Ford hybrid vehicle, and such a move probably makes economic sense, especially in the short term. Still, Toyota might roll out more than half a million hybrids this year, and Ford can only manage 50,000?

Anyway, I have high expectations for the future of Ford - or at least high hopes - so let's end this on a positive note. According to the The Patent Board, "Ford's patented technologies are closer to cutting edge than its competitors".

There is no doubt Alan Mulally's financial moves since assuming the helm of Ford were more cutting edge than Ford's competitors. If Mulally has been concurrently driving Ford more aggressively towards next generation, cutting edge technologies, then maybe - hopefully - Ford's small hybrid output today is just the calm before Ford's hybrid storm.

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Tuesday, June 02, 2009

A few thoughts about May hybrid sales

Hybrid sales for May aren't as bad as the skeptics claim, in fact, 2009 could still end up being a stellar year for Honda and Toyota hybrid vehicle sales.Honda hybrid sales up compared to last year

The US economy might be in a recession, but the US auto industry is in an outright depression. Auto sales for the year are down significantly compared to last year for all automakers.

And, it isn't just auto sales that are down, but gas prices as well. Last year, gas prices pushed the sales of hybrid cars into uncharted territory. This year, some wonder if the steep drop in hybrid sales proves that hybrids are but a fad.

A hybrid sales fad?

Despite the recession and significantly lower gas prices, Honda is selling more hybrid cars so far this year than it sold last year thanks to the launch of the Honda Insight hybrid. In fact, Honda hybrid sales are up 7.5 percent compared to last year. That's right. You read UP.

Toyota's hybrid flagship, the Toyota Prius, still experienced a sales decline of 30 percent compared to this time last year. Considering that Prius sales are down 45 percent on the year, however, 30 percent is an improvement. And, with pre-orders flying in for the new 2010 Prius, 2009 could still end up being a stellar year for Prius sales.

So, surprisingly, despite the recession and lower gas prices, 2009 will still probably be a strong year for hybrid sales. And, in this world wide recession, if this is as low as gas prices go, the future of gas prices can only be higher, and that will only help future hybrid sales.

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Japan is incentivizing hybrids, the US guzzlers

Japan is giving incentives to the buyers of hybrid cars while the US incentivizes gas guzzlers.Congress set to pass cash for clunkers next week?

Hybrid cars have never been hotter in Japan. It started with the Honda Insight and the new Toyota Prius is primed for explosive sales as well. While these two not new hybrids are reason enough for a hybrid sales spike, Japan has helped the hybrid cause by providing tax incentives for consumers to buy hybrids.

In America, we're promoting cash for clunkers. Bring in your big 15 mpg gas guzzler and replace it with an 18 mpg gas guzzler and the government will hand you a check for up to $4500.

Obviously, the US economy is struggling and a surge in gas-guzzlers - the bread and butter of the US auto industry - could help the economy while protecting the large tax payer investment into the US auto industry. Still, this is a terribly bitter pill to swallow, and despite the worthy intentions, America should be embarrassed by this cash for clunkers program.

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CNBC Powerlunch: GM's hybrid sales are a green barometer?

Is GM really the barometer of hybrid vehicle potential. CNBC thinks so. Apparently, hybrid cars have no future in America because GM's hybrid vehicle sales are down.GM's wildly popular mild hybrid?

I'm a big fan of CNBC. In fact, it's probably my favorite TV station, even though they have an obvious Wall Street perspective - which often means a conservative, Republican slant. Still, I think overall, they usually keep this slant in check.

Nonetheless, the silliness that sometimes oozes from the mouths of some of the CNBC talent is disappointing - usually from the mouth of Caruso-Cabrera. For instance, a few minutes ago, PowerLunch used GM's hybrid vehicle sales to point out that green vehicles aren't a good direction for the US auto industry.

Are you kidding me? Since when has GM been a hybrid leader? A green vehicle leader? How could any intelligent person suggest that GM is a hybrid potential barometer?

Today, the majority of hybrid owners buy hybrid cars, especially the Toyota Prius, because they want to do something for the environment. They want to fight global warming. These buyers are willing to pay extra to stand up for their beliefs and convictions.

Most important, these people would never buy a huge SUV, even if it is a hybrid, such as the Chevy Tahoe hybrid. 20 mpg just doesn't cut if for most of today's hybrid buyers.

Aside from GM's large hybrids, GM also offers a few mild hybrid vehicles that offer a mile or two per gallon more than their conventional counterparts. Again, that's not much of a statement, is it? If GM was a real hybrid player, they'd have a Prius competitor. They don't. End of story.

Yet the Powerlunch crew believes that GM's hybrid sales are a good barometer of green vehicle potential? Can they really be that clueless?

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$2.51 gas: When will it be $4.00?

Gas prices ready to push back towards $4.00? Can hybrid cars really hit mainstream before $4.00 gas.Under $2.00 before $4.00?

Today, gas prices are already higher than most were predicting only a few months ago. While most energy analysts and traders foresaw a normal, seasonal bump in gas prices, the quick spike in both gas and oil prices has surprised most. However, as markets are often driven by psychology, many are now calling for a sustained rise in oil prices.

Of course, most - if not all - are only predicting a further, marginal rise in prices. $4.00 gas will not happen this year without the help of a very nasty hurricane season or some violent attack in an oil-important country.

Is a temporary $3.00 gas scare enough to re-ignite American interest back towards fuel economy? Can $3.00 gas create another huge spike in the sale of hybrid cars?

I'd say it's doubtful. Moreover, as we head into fall and winter, gas and oil prices are almost certain to subside a bit. Yet, this year feels much like the few years preceding the 2008 gas spike - when companies like GM and Chrysler claimed $4.00 gas came surprisingly and unbelievably fast - despite the steady methodical increase in prices year after year.

Are we heading into the same trap again? Is $4.00 gas far closer than we think it is?

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Friday, May 29, 2009

Carbon schmarbon: It's foreign oil dependency, stupid

It's foreign oil dependency, stupidDoes global warming resonate with America?

Today, most Americans - most of Main Street - believe that hybrid cars are "strategically" important to the United States. Yet, most of these Americans have real doubts about global warming. So, how do most Americans reconcile this bit of irony?

Foreign oil dependency.

According to recent data, most Americans believe hybrid cars are "strategically" important because of foreign oil dependency, followed by saving auto jobs. For most Americans, global warming is not a reason to buy a hybrid vehicle.

Yet, Democrats, when discussing the issue of the oncoming auto revolution, always frame this conversation around global warming. Around carbon. Around cap and trade. Main Street, however, does not agree with Democrats on this issue.

Of course, once America also believed 'separate, but equal' was a fair policy until the government led America out of that insanity. So, the government leading the people, rather than the people leading the government, is sometimes a necessary evil.

Nonetheless, why not more of a focus on ending foreign oil dependence? Inevitably, ending foreign oil dependence would have a positive impact on global warming. Moreover, ending foreign oil dependency, like beating the Russians to the moon, is something almost every American could rally behind. Foreign oil dependence is the thread that can sew unity amongst the workers, industry, and and the government.

Ultimately, inevitably, American tax payers are going to risk as much as a few hundred billion on the US auto industry. Why not leverage this investment into a national campaign to end foreign oil dependency? Besides if you bring average Americans into this movement, it will probably be easier to work cap & trade legislation through Congress in the background.

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Thursday, May 28, 2009

20 percent hybrid by 2020?

Hybrid vehicles will make up 20 percent of the new car market in the US by 2020.Ford better get ready to increase its hybrid production

In just a few years, shoppers of Honda hybrid cars will face a tough decision.

Should they buy the cheapest and smallest Honda hybrid, the Fit or the larger Honda Insight? Or, for those not interested in hatchbacks and desiring a little more passenger space, the Civic hybrid might be better . Then again, maybe some Honda hybrid consumers won't care about size, but instead prefer something sporty like the CR-Z sports hybrid.

So, why is Honda going hybrid crazy? Well, perhaps they've seen JP Morgan's latest hybrid prediction. By 2020, according to JP, hybrid sales in the US will reach 19.4 percent of the new car market.

Shoot. If gas prices pull another 2008 in the next few years, I'd say that JP is underestimating the hybrid market. In fact, the way that Honda is ramping up its hybrid efforts, I wouldn't be surprised if Honda was hybrid-only by 2020.

Now, US automakers, that's a whole other story.

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2015: Can Chrysler and GM be profitable in the US?

Can GM and Chrysler really find profits in America by 2015 if they cannot compete with Honda and Toyota's small hybrid cars?Or will they fall further behind?

By 2015 it seems quite obvious that Toyota and Honda will be pumping out more than a million small hybrid cars per year.

Will GM or Chrysler offer any small hybrids?

Certainly, GM will offer the Chevy Volt, but it won't be either price competitive with these small Japanese hybrids, nor will it be profitable.

If efficiency is the driver of the future auto industry, how can GM and Chrysler compete in the new world order if they still cannot compete with the Toyota Prius or the Honda Fit hybrid either today, or in 2015?

Certainly the administration's efforts to protect the US auto industry, particularly to save as many auto industry jobs as possible, are noble in intent, but will they lead to profitable companies?

Also, is it fair that the government will ultimately pump, minimally, $50 billion into GM for its failures while Ford gets nothing for its business intelligence? Are we rewarding failure rather than success? Is that really the path to a healthy, profitable US auto industry?

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Wednesday, May 27, 2009

The $15,000 Honda Fit hybrid due next year?

Honda Fit hybrid coming in 2010 for less than $16,000. Will US automakers really be able to compete in a new automotive world dominated by hybrid vehicles?The rumors continue to swirl

A while back Honda announced that it would convert its Fit into a hybrid version, but Honda has never been very clear about when exactly such a vehicle would be offered. Rumors have indicated it could go on sale as early as late 2009 or as late as 2015.

The latest rumors, however, indicate that the Honda Fit hybrid will go on sale sometime in 2010 at a cost of just $15,800, and that the automaker hopes to sell 50,000 Fit hybrids per year.

Not so many decades ago, most in America claimed small Honda and Toyota cars would never take off in America. And this American arrogance and ignorance helped pushed the US auto industry to the precipice of liquidity. Today, Honda and Toyota are preparing to roll out - combined - over half a million small hybrid cars per year, and yet Detroit has neither a product offering nor a plan to compete with such vehicles.

In this repeat of history, however, the Big 3 aren't sitting atop the automotive world. This time they are either in or near bankruptcy. Will America really be able to compete?

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Hybridize or kill trucks and SUVs

Are hybrid trucks and SUVs the key to the US auto industry? Time to hybridize or time to kill trucks and SUVs?A hybrid pickup truck from GM

Can plug-in technology turn trucks and SUVs into fuel saving monsters? I guess that depends on your definition of good fuel economy.

Google's REChargeIT program converted a number of Toyota Prius and Ford Escape hybrids into plug-in hybrids. The Prius averaged about 93 mpg, but on city trips it averaged as much as as 115 mpg. The Ford Escape hybrid, on the other hand, averaged about 50 mpg, and that's a relatively small SUV.

The fact is, is that the fuel economy of most American trucks and SUVs is insanely pathetic. Yet, trucks, for instance, are the top selling vehicles in America, and turning these vehicles into plug-in vehicles is far too cost-ineffective today. Nonetheless, something has to give.

Either Americans have to give up these vehicles, or US automakers need to dramatically increase their fuel economy, and they need to start as soon as possible. So, why not some kind of government carrot and stick that forces US automakers to convert all trucks and SUVs into hybrid vehicles, while offsetting the price difference for the first few years? Also, as battery technology develops, many of these hybrid pickups could be converted into plug-in pickups.

Ultimately, can we really expect the US auto industry to survive without forcing great change? Moreover, shouldn't that change begin in the sector most important to US automakers?

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Tuesday, May 26, 2009

2010 Toyota Prius: An ESPN fan favorite?

Do hybrid vehicles appeal sport's fans and those visiting ESPN?A car for NBA fans?

I'm not the sport's fan I was growing up. Typically these days, I might watch a few bowl games, the Super Bowl, a little Final Four action, and the NBA finals.

This year, however, I've found myself watching quite a few NBA playoff games, and I've been shocked at the number of Toyota Prius commercials I've seen on the channels covering NBA games. And, it's not just TV, I've also seen Prius ads on ESPN.com's home page.

Sure. In the past, a few Super Bowl MVP's might have picked up a Cadillac Escalade hybrid as part of their award, but do hybrid cars really appeal to professional athletes and the cohort of consumers that follow these athletes?

Minimally, Toyota is willing to spend a good chunk of money to find out. Still, I find it hard to believe that environment-driven commercials are the right way to attract this segment to a vehicle like the Prius. Of course, since LA is still in the playoffs, maybe it's exactly the right way.

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Can VW turn BYD hybrid cars from dream to reality?

BYD hybrid vehicles coming to market much sooner thanks to VW?Coming much sooner to a dealer near you?

A couple of years ago a number of Chinese automakers started showing up at major auto shows. At the LA show, for instance, such Chinese vehicles usually found themselves in the basement - out of sight out of mind.

Nonetheless, I've been following some of these Chinese automakers, particularly BYD and its lithium battery business, ever since. Yet, it has been hard to take this automaker too seriously. Well, at least it was hard. Warren Buffett's recent stake in BYD certainly opened my mind.

Of course, BYD still doesn't have a history of quality car making, so BYD's big future still seems far into the future - which makes the news of a potential partnership between VW and BYD quite compelling. If BYD has hammered out the kinks of its hybrid vehicles, especially its lithium batteries, then VW could certainly help bring BYD's technology to market significantly faster than BYD could achieve on its own.

At this time VW and BYD are simply exploring options and possibilities, but the potential of this partnership seems like it could be a game changer.

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Friday, May 22, 2009

Subaru hybrid confirmed

Subaru hybrid vehicles coming in 2011 or 2012.Coming in 2012

For several years there have been rumors about a Subaru hybrid built on Toyota technology, as Toyota has a 16 percent stake in Subaru. Now those rumors are official, Subaru will offer a new hybrid in either 2011 or 2012.

Subaru hybrid vehicles? Sounds like a perfect fit.

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Thursday, May 21, 2009

Cake eaters: America and hybrid cars

Most Americans believe in the strategic importance of hybrid cars, but most are unwilling to pay anything extra to help develop these technologies.88 percent of US adults believe hybrids are strategically important

Wow. I guess I can't say I'm surprised, but I'm certainly disappointed.

A recent study finds that 88 percent of US adults believe that hybrid cars are strategically important to 1.) Reduce foreign oil dependence, 2.) Save and create auto-related jobs, and 3.) To help the environment.

Unfortunately, only 23 percent of Americans are willing to pay extra for hybrids. 35 percent will only buy a hybrid if it costs the same as a comparable non-hybrid. Another 33 percent will only buy a hybrid if it costs less than a comparable non-hybrid.

So, a majority of Americans believe in the strategic importance of hybrid cars for national security, jobs, and the environment, but most are willing to invest NOTHING in these strategically important vehicles? Shameful. What a bunch of selfish, vision-less cake eaters.

Anyway, might this attitude change if more marketing tying hybrids and foreign oil dependency replaced some of the environmentally-skewed commercials of today, since that issue most resonates with Americans? Then again, since there are so few American-made hybrids, such a message would probably be pointless.

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Wednesday, May 20, 2009

Getting high on gas: C'mon $5!

$5.00 gas: America's downfall?

I'm not a big fan of the new CAFE rules put forth by the Obama administration. First, I'm not quite sure that US automakers are capable of profitability in achieving these new rules. Second, I don't think this CAFE rewrite goes far enough.

For years I've asked numerous major auto executives from the Big 3, especially GM, why aren't there more hybrid cars from US automakers? Why can't US automakers sell such vehicles as foreign oil dependency fighters?

Cheap gas and lack of profits has always been the answer.

So, what's changed? Will UAW concessions really make these vehicles suddenly much more profitable? Will CAFE force Americans to accept higher prices for achieving better fuel economy, especially if gas prices don't rise significantly?

I don't know, but I'd place my bets on a much smaller US auto industry struggling for profitability for many, many years. And, that's my optimistic scenario. I mean, what happens if gas spikes significantly in the next couple of years? They'll have nothing to sell that offers any profitability.

And, over the last few weeks, and especially the last few days, oil has again become a very interesting story. Whether its geopolitical worries, such as new Nigerian rebel action against oil interests, growing Chinese demand, or even something as simple as a US oil refinery fire, the volatility around oil prices is explosive.

Yet, most of the world is in recession. Even without an economic recovery in much of the world's economic powers, including the US, drastically rising oil prices are still a threat.

Thus, America's economic recovery is almost certain to coincide with a significant increase in energy prices, especially gas prices. The sooner gas prices force automakers, and American auto consumers, to realize that Obama's CAFE rules should be viewed as child's play - which is not Obama's fault and he should be commended for his leadership - the sooner US automakers will realize that meeting CAFE won't be enough.

If America's automakers are to lead the world into the future, they better blow these new CAFE rules away as soon as possible. Otherwise, let's stop assisting the US auto industry in any way and retrain these workers to build wind mills and solar panels.

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Chinese hybrids a big threat to America?

Will Chinese hybrid cars make it even harder for US automakers to achieve profitability?A mini minivan: As big as a Chinese hybrid gets?

A blogger from China sent me his list of top ten Chinese EVs and hybrid vehicles, and the size of these vehicles really caught my attention. Most are very small, unlike most American hybrids - most of which are SUVs.

Thus far, not one US automaker has yet taken on the Toyota Prius, or even the Honda Insight, and doing so might still be several years away. In fact, the Chinese might be just as close as the Big 3 to a quality Prius-contender.

Soon, I have no doubt that Chinese automakers will be rolling out hundreds of thousands of hybrid cars for China, but refining these vehicles for the American market will take more time. Nonetheless, China seems quite primed to quickly enter the US market. And, since CAFE will require small, efficient, but expensive vehicles, China's cheap manufacturing capabilities might be the key to success, as well as another major threat to US automaker viability.

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Gangster government gone green

Yeah, CAFE increase. However, can US automakers turn a profit making small cars and hybrid vehicles?Larry Kudlow wonders, can hybrids drive profits to Detroit?

"Gangster government gone green" stated CNBC host Larry Kudlow, a proud conservative capitalist and a Cadillac Escalade hybrid driver, about yesterday's CAFE rule rewrite.

Kudlow claimed that all of the bailout money spent on GM and Chrysler thus far will be eaten by taxpayers. Moreover despite UAW concessions, Kudlow wonders can small cars, clean diesels and hybrid vehicles return US automakers to North American profitability?

I guess I doubt it. Americans have become so accustomed to buying not just more cars, but more car, than is actually needed thanks to cheap gas prices. More expensive, smaller and clean vehicles will just result in Americans buying less vehicles, won't they? That will probably mean even more downsizing in the long run and more glut in the short term.

Nonetheless, now that tax payers are part owners of Chrysler, GM, etc. shouldn't we know where our money is going? Is hiding green taxes the same way we hide military taxes really the best answer?

Inevitably, it doesn't matter, but I still think that a gas tax was the most transparent, honest way to have approached this problem. Unfortunately, a "gangster government" does run America. But, that's because we, the people, can't handle the truth. Fortunately, however, at least this new government gang is a green gang.

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Tuesday, May 19, 2009

Ready to costumize your Prius with an Aero kit?

New tuner kits for the 2010 Toyota Prius allow owners to individualize their new Prius hybrid cars without hurting aerodynamics or fuel economy.Some new street cred for your Prius?

Not everyone likes the look of the Toyota Prius. Somehow, you look just like every other treehugger, right? Just kidding.

However, if this is a concern, Modellista is offering a number of aero kits that allow 2010 Prius owners to change the entire face and rear of the car, without having any negative impact on aerodynamics and fuel economy.

I'm not sure most current Prius owners would care about such tuner kits for the Prius, however, I think these kinds of kits could help convert younger buyers into hybrid cars like the Prius. Maybe if I buy one, I'll feel younger??

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Monday, May 18, 2009

Jetta TDI better than the Toyota Prius?

VW escalates the clean diesel versus hybrid cars debate.Not enough engine?

Last night I was half asleep when I think I saw a new VW commercial pitting the new VW Jetta TDI against hybrids. Essentially, the commercial portrays the TDI as a very fuel efficient vehicle - just like a hybrid - but an efficient car with real power, unlike wimpy hybrid cars.

I laughed. It's a funny commercial and I'm sure it will resonate with hybrid haters. Still, it's a joke, if fuel economy is your priority.

Both the new Prius and the latest TDI cost about the same. Yet, according to the EPA, the TDI achieves 30/41 mpg, city/highway. The 2010 Prius will achieve about 50 mpg on both cycles. Thus, unless your commutes are at constant speeds without any stop signs, street lights, traffic, etc., the Prius is going to achieve far better fuel economy than the TDI.

Of course, the TDI will make you feel more manly. I guess that's worth something to some people.

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Friday, May 15, 2009

75,000 Prius orders already in

Toyota Prius orders are rolling in and the king of hybrid cars appears ready to maintain its hybrid crown.New Prius already smoking hot

According to reports Toyota has already received 75,000 orders for the new 2010 Toyota Prius even though it hasn't officially even gone on sale. Obviously, the king of hybrid cars has no interest in giving up its hybrid crown any time soon.

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Insight versus Prius: Commercials

Aren't hybrid cars also about energy independence? Why is the focus always only on the environment.The hybrid for all of us

As I was watching the Lakers go down last night, commercials for both the Honda Insight and the new 2010 Toyota Prius aired within just a few minutes of each other.

I don't really like either commercial, but if I had to pick a winner, it would easily be the Prius commercial. Still, neither of these commercials entices much in terms of sizzle or steak.

Perhaps these commercials resonate well with those already contemplating a hybrid vehicle purchase, but I seriously doubt either commercial will help convert new buyers towards these excellent hybrid vehicles. Obviously, both commercials are skewed towards the stereotypical treehugging crowd, but isn't there also an opportunity for marketing these vehicles to those concerned about energy independence? Or is that too much of a stretch for foreign automakers?

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Thursday, May 14, 2009

Would you buy a GM hybrid made in China?

Would you buy Chinese hybrid cars if they were made by GM?Is China GM's future

The Chinese automarket is growing, fast. This year more cars might be sold in China than in America, yet the auto sales potential in China has barely been scratched.

Today, GM is a strong player in China and its Buick brand is probably the hottest name in the Chinese auto market. Consequently, GM will eventually produce quite a few cars in China for the Chinese market, but they might also export some of those cars back to America.

If GM made a top quality hybrid in China and exported it back to America, would it sell if priced competitively?

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Wednesday, May 13, 2009

Catch 22: Plug-ins and cheap gas

Not cost-effective or profitable?

Many years ago I wrote the best hybrid car was a plug-in hybrid car. Today, I'm not so sure. Without significantly higher gas prices Americans will not buy hybrid cars in numbers that finally revolutionize the US auto industry.

If Americans won't make the investment into today's hybrid technology, why would anyone assume that Americans will invest in even more expensive plug-in hybrids and electric vehicles?

Without much higher gas prices, Americans will not buy these vehicles, at least not enough of them to make these vehicles profitable for US automakers in the next decade, maybe even two. And, if American automakers cannot survive in much of North America making internal combustion vehicles, how are they going to survive making less profitable - if profitable at all - and significantly more expensive plug-in vehicles?

Without $4.00 or $5.00 gas they won't. They can't.

Ironically, if gas suddenly goes from $2.50 to $5.00, American consumers might still not buy these cars as the economy would be so devastated they probably couldn't afford them regardless of gas prices. Even if they would buy them, American automakers are many, many years from selling such vehicles in numbers that would have any effect. Our pace towards change is simply too slow.

So why not a smart gas tax that covers the costs of hybridization via tax credits from gas tax revenue, while making alternative fuels more cost-effective?

Besides, if we're going to save the US auto industry, shouldn't we try to save it in a way that has some legs, some long term viability? Next quarters balance sheet can no longer be the metric for determining success.

Nonetheless, is long term viability of the US auto industry possible without higher fuel prices? Otherwise, aren't we just throwing good money after bad to delay the inevitable collapse?

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Tuesday, May 12, 2009

Americans overwhelmingly against gas tax

Without much higher gas prices, most Americans will not buy a hybrid cars. However, most Americans do not support the kind of gas tax that would lead to price competitiveness.22 percent of Americans would buy a hybrid to help the environment

Talk to most auto executives about fuel economy and most of them say the same thing. Without higher gas prices most Americans just don't care. Cupholders are more important. Thus, many of these executives have claimed that without a gas tax, the idea of significantly increasing American fuel economy is a far-fetched idea.

Unfortunately, a new Rasmussen poll has found that 81 percent of Americans are completely opposed to the idea of a gas tax. In fact, only 8 percent of Americans would support a gas tax and the rest are undecided.

The poll also seems to suggest that most Americans will not buy hybrid cars until prices come down much further or gas prices rise significantly.

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Friday, May 08, 2009

Chinese auto sales: Opportunity, Danger or Threat?

Chinese hybrid cars and plug-in hybrid vehicles are already being built by Chinese companies that Warren Buffett is investing. BYD Automotive is a favorite of Warren Buffett

In April China sold 1.15 million autos, up some 25 percent from last April. Unbelievably, more cars might be sold in China this year than will be sold in America.

Fortunately, for US automakers, brands like GM's Buick are top sellers in this barely emerging automotive market, so China represents a huge opportunity for US automakers. Unfortunately, China also represents not just danger for America, but the Chinese automotive market could end being an outright threat to the US economy and its national security.

For instance, last summer's run up in gas prices was helped by Chinese demand for oil, which is obviously only going to grow, significantly. As America comes out of this recession, US demand for oil will increase. Eventually this demand will again squeeze the margins and guarantee that higher gas prices will be coupled with our economic recovery.

Yet, higher gas prices might not even be the real threat.

Recently, Warren Buffett became a significant investor in Chinese automaker BYD. Actually, BYD isn't much of an automaker, it's a battery maker. That is quickly changing, however, as the company is now building its future on battery powered vehicles: hybrid cars and other plug-in vehicles. In fact, Buffett believes that in just a decade or two BYD could be even bigger than Toyota.

Certainly it is too early to predict how China will affect the world's automotive market. Will China be America's greatest automotive opportunity in decades, or a threat even far bigger than Japan ever presented? I guess we'll see, but Buffett's investments indicate that US automakers will soon be facing serious Chinese competition that will forever change the world's automotive landscape.

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Revving up anger: Nissan Altima hybrid problems

Nissan Altima hybrid problems revving up anger amongst owners.Love it or hate it

I'm a big fan of hybrid cars, obviously. Still, I think it is very important to address hybrid vehicle problems.

Typically, most hybrid problems are not endemic to hybrids, per say, but shoddy manufacturing. Certainly, the weight of hybrid batteries coupled with low resistance tires has led to increased tire wire and decreased tire life for some hybrid owners. However, most hybrids, especially those built on second generation technology, have performed exceptionally reliably.

Nonetheless, the Nissan Altima hybrid continues to surface as one hybrid that causes more problems than would seem normal. Revving, poor battery charging cycles, etc. continue to pop up.

Today, an unhappy Altima hybrid owner complained about his Altima hybrid lemon. Dead battery, revving, engine replacements and poor dealer servicing - many of the normal Altima hybrid suspects.

Why? Other Altima hybrid owners have been extremely happy with their hybrids, but the significant percentage of Altima hybrid owners with complaints seems to demonstrate that Nissan failed its Altima hybrid Q&A program - if it actually had one.

While it's bad enough that Nissan half-assed their Altima hybrid efforts, the dealer servicing complaints coupled with these problems are completely unacceptable. Perhaps not so ironically, Nissan has been a pooh-pooher of hybrids, but if Nissan cannot make consistently reliable hybrids, why should anyone believe they can make reliable electric vehicles?

More hybrid reviews and testimonials.

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Monday, May 04, 2009

Focus on Ford: What's the real state of lithium?

Why wasn't it lithium?

In 2010 Ford will roll out its all electric transit van. The next year a small EV will follow. However, less battery intensive lithium hybrids and plug-in hybrids won't hit the market until 2012 under Ford's current plans. Why?

Ford claims their new lithium battery technology will offer 5 percent more power than NiMH. More important, however, their lithium batteries will be 30 percent smaller, 50 percent lighter and about 30 percent cheaper to manufacture than NiMH.

Really? When? Because it's obviously not today, otherwise Ford would have added this technology to the Fusion hybrid, especially since the Fusion hybrid is less battery intensive than an EV. Moreover, Ford is only going to make 25,000 of these hybrids per year. So, such an implementation would have been minor compared to 25,000 EVs per year.

Yet, today, Ford doesn't plan to roll out a lithium hybrid until 2012, even though it would make such hybrid vehicles more powerful and cheaper? Why?

Many lithium experts have pointed out that hand producing lithium batteries for a handful of autos isn't a problem, it's cost-effectively mass-producing them in a way that guarantees absolute reliability for hundreds of thousands of vehicles that's the real concern.

If Ford couldn't safely and cost-effectively mass manufacture its new lithium technology for just 25,000 hybrids - about 2,000 battery packs per month - how close can we really be to the lithium revolution?

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Traditional hybrids are becoming obsolete?

Hybrid cars are dead? Sure, if you're a struggling automaker with no hybrid vehicles.Already a dead car walking?

Wow. I guess headlines are the only thing that matters these days.

Today, Newsweek has an article Why traditional hybrid cars are becoming obsolete.

Why? The $80, 000 Fisker Karma plug-in hybrid and the $100,000 Tesla Roadster of course. Yet, according to the same article, without higher fuel prices, the gasoline engine might be around much longer than most would like.

Huh? So that's why traditional hybrid cars are going to become obsolete?

OK. Newsweek also cites declining Toyota Prius sales. While true, before the 2010 Prius launches, about 60,000 - 70,000 of these vehicles will already have been presold. In fact, based on early demand, Toyota has already put plans in motion to increase yearly production to 500,000 cars per year.

By 2015, GM - if all goes well - might be producing 100,000 Chevy Volts per year. Similarly, Nissan is hoping to produce 100,000 Cube EVs per year several years from now. Fisker is hoping to eventually produce 15,000 plug-in hybrids per year. In reality, by 2015, there might not be enough EVs produced yearly to replace even today's Prius demand.

Considering that Toyota and Honda are now betting big on hybrids, I guess they'll be next in bankruptcy court?

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Thursday, April 30, 2009

But hybrids aren't profitable......

Will the Big ever sell small hybrid cars? If they do, can they make them at a profit?How much money does Honda lose on each hybrid?

$0.00.

That's how much Honda loses on each hybrid it sells. In fact, the other day I read that both Honda and Toyota make about a $3,000 profit on each hybrid sold.

Of course, that doesn't include all R&D costs, especially on Honda's hybrids since Honda hasn't sold nearly as many hybrid cars as Toyota. Now that Toyota has sold well over a million hybrids, however, development costs have probably been recovered.

Yet, not one US automaker has a solid Insight or Prius contender. When will they? Ever?

Within the next five years I'd bet gas prices will be about $3.00 - $4.00 per gallon, a price that could make hybrid cars like the Insight and Prius two of the top selling vehicles in America.

What will the Big 3 have?

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Tuesday, April 28, 2009

Toyota Highlander hybrid recall

Recall involving 2008 Toyota Highlander hybrids.Do you have a 2008 Highlander hybrid?

39,100 Toyota Highlanders, including some hybrids, need to have an exhaust clamp repaired. Notices should be arriving in May, but if you bought your Highlander hybrid in 2008, you might want to give Toyota a buzz.

Owners can call Toyota at 800-331-4331 or the NHTSA Vehicle Safety Hotline at 888-327-4236.

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Monday, April 27, 2009

Ford's huge hybrid opportunity: Can Ford compete?

Can you compete with the king or not?

I still can't believe the early sales data coming in on the 2010 Toyota Prius. Even before the Prius actually launches, Toyota will have already sold more of these new hybrid cars than Ford will sell in all of 2009, despite the hype around the new Fusion hybrid.

Yet, as Chrysler and GM sit on the precipice of bankruptcy, Ford stands strong in Detroit, in America. Today, Ford evokes hope in the hearts and minds of those that believe the US auto industry can still compete.

But, what do we really believe in? That Ford understands finance? Obviously, but what about its future products?

If Ford was rolling out Honda's new Insight hybrid, it would have instantly sold out. INSTANTLY. Buy American-only buyers are dying to put their money in an American product that proves American automakers can compete, especially when it comes to fuel efficient technology.

But, can Ford truly compete in the future? Not if its cheapest hybrid is the Ford Fusion hybrid.

In recent weeks and months Ford has talked up its gains in lithium batteries. Enough talk. It's time to walk the walk and give America an American foreign-oil dependency, CO2-crushing, Toyota Prius contender. Such a vehicle cannot, will not, fail Ford. And the hype, buzz and floor traffic it would create for Ford would result in the biggest marketing coupe in Ford history.

So, can Ford compete?

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2010 Prius orders rolling in, ROLLING

The Toyota IS the king of hybrid cars and the 2010 Prius is taking hybrids to a whole new level.Toyota's cure for the auto recession?

By June Toyota will be producing 50,000 Prius hybrids per month, a 25 percent increase in production from Toyota's original plans.

GreenCarCongress reports, "Pre-orders for the new hybrid began in April, and exceeded 40,000 early last week. They are expected to keep climbing to anywhere between 60,000 and 70,000 before the launch date, indicating unusually robust demand for a new model."

And Honda wants to sell 100,000 Insights per year? Which hybrid is for all of us?

I'm not trying to rip on Honda or the Insight, but 70,000 Prii sold before the first one even hits a dealership? And gas prices are cheap today!

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Friday, April 24, 2009

Honda will also produce plug-in hybrids

Honda ready to increase its portfolio of hybrid cars to include plug-in hybrid vehicles. Fuel cells aren't Honda's only electric plans

Honda has seen the light, the hybrid light. Not so long ago, Honda believed that cheap hybrids, such as the Insight hybrid, were a simple bridge to fuel cell vehicles, such as the Honda Clarity. Moreover, Honda wasn't too sure that plug-ins of any kind made environmental or fiscal sense.

Today, however, Honda believes hybrid cars are now becoming a "mainstream" technology. Thus, Honda will be exploring other forms of hybrid technology, including plug-in hybrids according to Honda's Chief R&D Engineer, Kenji Nakano.

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Thursday, April 23, 2009

Shouldn't we hybridize every car?

Isn't this the perfect time to try to hybridize every car? Hybrid cars not only reduce CO2 and help reduce foreign oil dependency, they also help develop green jobs in the US battery industry.Not really a good EV candidate?

By 2050, decades from now, there will still be many internal combustion-powered vehicles on the road. In fact, in 2050 the road might be equally filled with ICE, fuel cell and plug-in vehicles.

If true, that would mean 2/3's of all autos are going to need some kind of battery, as the smartest fuel cell vehicles will be battery-using fuel cell hybrid vehicles.

Unfortunately, the US lithium battery industry is just short of nonexistent, especially when it comes to cell manufacturing.

So, why not hybridize everything starting in the next five years to guarantee the need for US battery manufacturing immediately, or at least as soon as possible?

And this isn't just about somtimes expensive full hybrids cars or plug-in hybrids, GM is proving that cost-effective lithium-based BAS hybrid systems can improve overall vehicle fuel efficiency by 20 percent. Such a system will pay for itself. Thus, if the government is going to help GM retool its business, shouldn't incorporating, minimally, this kind of hybrid technology into every vehicle line be required?

In fact, make each hybrid capable of being a BAS hybrid, a dual mode hybrid, or maybe even a dual mode plug-in hybrid.

Certainly, GM could use other tricks to make every vehicle efficient enough for new CAFE regulations, but a focus on batteries is critical if the US auto industry is truly going to compete in the next few decades, as batteries will become significantly important supplies.

But we're so far behind, we can't move fast enough. We have to be aggressive.

Since the US auto industry is, essentially, largely dependent upon the government, isn't this the perfect time to step into the next century of automaking via government assistance?

Moreover, why not unlimited tax credits for every hybrid made with a US manufactured battery? And/or, for any hybrid assembled in the US?

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Wednesday, April 22, 2009

Fusion smackdown: Lithium to power Camry hybrid soon

When it comes to hybrid cars, Toyota is king, but Ford's new Fusion hybrid offers better fuel economy than the Camry hybrid. Thus, doesn't Toyota need to respond. Isn't it time for a lithium-powered Camry hybrid?The perfect Toyota hybrid for lithium?

OK. This is pure speculation. Nonetheless, there was a time when Toyota had verbally committed to putting lithium-ion batteries into the third generation Prius.

Then a few cell phones and laptops blew up. But, that wasn't all that happened to stymie lithium Prii.

Gas prices began to spike and Toyota Prius demand went through the ceiling. Imagine making your first lithium hybrid roll out in a car with such huge production numbers, demand, and expectations. One bad thermodynamic event and the king of hybrid cars drops from first to last. Hence, Toyota indicated that the first Toyota lithium hybrid might be a Lexus.

Screw Lexus. Now that Ford has rolled out the Ford Fusion hybrid, Toyota needs to send a strong response.

Thus, if Toyota is to keep its hybrid edge, I can think of no better entry point today for lithium than the Camry hybrid. Ford has put a shot off Toyota's hybrid bow. Now it's time for Toyota to fire back, if they can.

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Boring: The new Honda Insight commercial?

Will there ever be edgy ad promoting hybrid vehicles?The hybrid for all of us?

Over the weekend I watched far more TV than normal, and I finally saw one - I don't know if there are more - of Honda's Insight hybrid commercials. It's a good commercial, advancing the idea that the Insight is a different kind of hybrid, a hybrid we can all afford.

Actually, its probably a hybrid more of us can afford, but let's not split hairs.

Besides, this vehicle should be cheaper than the Toyota Prius, as it doesn't offer quite as much car as the Prius. Nonetheless, I would like to see an even cheaper hybrid and I hope both Honda and Toyota follow up on plans for even smaller, cheaper hybrid cars.

But what really bugged me about this Insight commercial was, just as with the Prius, there is no sizzle.

Will any automaker ever offer an edgy hybrid ad?

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Tuesday, April 21, 2009

Trading in a hybrid dud: What do dealers owe early adopters?

Honda Civic hybrid testimonials indicate that some early hybrid adopters can't sell their used hybrids. Don't Honda dealers owe these hybrid advocates special trade in deals?Is your IMA light on again?

While hybrid vehicles have been around for a decade, they are still an emerging technology, especially for every automaker other than Toyota. Thus, some early adopters of hybrid technology have to deal with new problems. For example, excessive tire wear is a common problem with many Toyota hybrids.

According to Honda Civic hybrid testimonials, many first generation Civic hybrid owners have experienced problem-free vehicles. Unfortunately, others have experienced SRS lights that never shut off, for instance. Fortunately, that's more of an annoyance than a real problem. Still, many other 2003 Civic hybrid owners have had bigger issues with their IMA lights, often leading to a complete replacement of the costly IMA system.

Fortunately, for most, these issues have been covered by warranties, but owners have found it very difficult to sell these first generation Honda hybrid vehicles. If traded in on new Hondas, especially new Honda hybrids, shouldn't Honda dealers offer these Honda hybrid early adopters special trade in deals? Doesn't Honda owe that to early adopting Honda hybrid advocates?

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SAE: Cheap gas still a hurdle to efficient vehicles

The widespread adoption of hybrid cars won't happen fast without much higher fuel prices.The easiest path to green vehicles

On the first day of the SAE World Congress, auto executives claimed the technology to achieve new CAFE requirements - 35 mpg - is available, but costly. Thus, without higher fuel prices, bringing hybrid and electric vehicles "into mass production at an affordable price could still take decades."

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Monday, April 20, 2009

Ford lithium research to begin paying off next year?

New lithium-powered Ford hybrid vehicles could be coming very soon.A lithium powered Escape at Hybridfest

Starting next year Ford is going to begin building a new generation of hybrid vehicles and electric cars based off of lithium-ion research that Ford has been carrying out with potential suppliers and university researchers. According to the DetroitNews, much of this new research will be highlighted this week at the SAE World Congress.

According to early reports, Ford will be able to produce lithium batteries for hybrid and electric vehicles that are not only 5 percent more efficient than NiMH batteries, but 30 percent cheaper to mass manufacture.

We say bring it on and let's end this 25,000 hybrid per year quota that Ford has been stuck on for years!

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Cap & Trade versus Carbon Tax

Which would be more effective and efficient, a carbon tax or cap and trade?The carbon challenge

I've long been a fan of a gas tax that puts a bottom on gas prices around $3.00, while providing tax credits for the buyers of efficient vehicles, such as hybrid cars. With the IEA now predicting no recovery in oil prices for the next year, gas prices are probably set for a significant pullback after the summer driving season. Eventually, as we claw our way out of this recession, an uptick in gas-guzzler sales might thus be imminent.

The current administration has not been supportive of a gas tax, but it has been very supportive of a CO2 cap and trade program. Yet, many claim that giving Congress control of trillions worth of CO2 waivers could be a dangerous exercise in Congressional pork-barreling. Thus, CNBC is featuring a special Carbon Challenge this week.

Today, CNBC asked which is better: cap & trade versus a carbon tax. Any thoughts?

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New Toyota hybrid pickup shelved

Toyota hybrid pickup trucks coming soon? Nope.Not the time for a new hybrid pickup truck

Recently, Toyota was investigating the possibility of turning its Toyota ABAT hybrid pickup concept into a production vehicle. However, partially due to declining pickup sales, according to MotorTrend, Toyota is shelving the hybrid pickup for now.

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Can green vehicles really save the Big 3?

The Chinese auto has only just emerged

As Congress and the Obama auto task force contemplate many tens of billions - perhaps even much more - in aid to the US auto industry, is the US auto industry already a dead industry walking?

Kudos to President Obama for playing hardball - even if it is just for show - with the UAW, bondholders and corporate boards. Still, today these concessions are being forced in an effort to compete with Japan and Korea.

Tomorrow, even mighty Toyota might not be able to compete with Chinese automakers, and smart people like Warren Buffett are already making that bet.

Today, many claim that hybrid and electric vehicles are the key to the Big 3's future - vehicles with little profit potential for Big 3 automakers in the next few decades. Yet, Chinese automakers are quickly rushing to fill this segment with their own products. Moreover, China has far better access to lithium than does the US, hordes of engineers and an endless supply of cheap labor.

Can hybrid cars really save the Big 3? Can anything?

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Friday, April 17, 2009

Vue: Another kink in GM's plug-in chain?

Once GM's plug-in hybrids were about more than just the Chevy Volt, the Saturn Vue dual mode plug-in hybrid was another interesting GM hybrid vehicle.Is the Saturn Vue plug-in hybrid dead?

Well over a year ago GM was road testing an almost production ready plug-in hybrid. No, not the Chevy Volt, which GM prefers to call a range extended electric vehicle rather than a plug-in hybrid, but the Saturn Vue dual mode plug-in hybrid.

Now that Saturn is almost assuredly dead or gone, is this plug-in hybrid dead?

With some studies questioning the efficiency of large battery plug-in vehicles, such as the Volt, the Saturn Vue plug-in hybrid could be a nice complement to GM's plug-in plans. Even if Saturn is dead, I sure hope GM resurrects this technology in another GM brand.

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Wednesday, April 15, 2009

Ford + EnerDel = Failure?

Which is worse, foreign oil dependency or foreign battery dependency. Let's not just wait for lithium plug-in hybrids, let's have lithium hybrid cars right now!Where does your battery come from?

In the future, the US might no longer suffer from foreign oil dependence, but there is every reason to believe that we'll suffer from foreign battery dependence. Can the US auto industry survive and compete if it has to import cost-effective lithium batteries from Asia and Europe - areas that are years ahead of America in both battery R&D and manufacturing capabilities?

Today, there is only one company that has the ability to mass-produce enough lithium batteries for either tens of thousands of EVs or hundreds of thousands of hybrid cars right here in America. Unfortunately, EnerDel can't sign a contract with any of the Big 3 American automakers.

Why? According to Argonne Labs, Enerdel has quality lithium chemistry.

So, why didn't Ford, for example, show some real innovation and produce the Ford Fusion hybrid with lithium batteries from EnerDel, rather than NiMH batteries? Ford has no future with NiMH, so why not take a calculated risk with American-manufactured lithium batteries, especially if you're only going to produce 25,000 of these hybrids per year?

Late next year, Uncle Sam will be doling out $7500 tax credits to Americans that buy plug-in vehicles that might have been made in America, but the most important technology, the battery, was not. Isn't it time to also dole out some credits to push American automakers, such as Ford, into American manufactured lithium batteries for today's hybrids? Isn't there no better time to act than right now?

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Tuesday, April 14, 2009

Insight markups and Honda hybrid shopping

Honda Insights are now being delivered to dealerships. Have you done any Honda Insight hybrid shopping?Is screwing the customer Insightful?

Last week some Honda hybrid shoppers found deals that couldn't be refused on Civic hybrids, while shopping for Insight hybrids. For instance Civic hybrids $2,000 less than the best deal on an Insight hybrid.

However, part of the reason some found good deals on the Civic hybrid was because of dealer markups on the Honda Insight. At one Honda dealership markups were as high as $4500.

This weekend, I stopped by my local Honda dealer and found no dealer markups above MSRP, however, aftermarket leather packages were being added to the cost, pushing the MSRP of an Insight hybrid up an additional $2,000, a price that seemed a little high for aftermarket leather.

Nonetheless, the Insight was still a better deal than the Civic hybrid, although my dealer told me he could offer some pretty great deals on Civic hybrid leases. Obviously, shopping for a Honda hybrid varies from dealer to dealer.

In the next few weeks I'll be doing some more Honda hybrid shopping to see how much variance there is between dealers in terms of hybrid deals, with a particular focus on dealer add-ons and markups.

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Monday, April 13, 2009

Jaguar seeks some Karma

Jaguar ready to roll out a number of hybrid cars including hybrid vehicles.Luxury plug-ins are the rage!

Tesla. Fisker. How many more names was it going to take for established luxury auto makers to realize that plug-ins represented an important niche for niche luxury auto makers?

Not much longer for Jaguar.

Now that Jaguar is a little better financed, according to MotorTrend, the luxury automaker is ready to roll out a new plug-in hybrid version of the XJ sedan around 2011, and a number of other hybrid vehicles are also planned.

I know most of us can't afford these luxury hybrids - I certainly cannot - still it has really been amazing how resistant established automakers, including luxury makers, have been to change. One might have assumed these niche players would have been quicker to react than the the major players, but they've been in the same denial.

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Plugged in: Does Buffett prove BYD is golden?

Can Chinese automaker BYD become the king of plug-in hybrid vehicles?What does the oracle of Omaha know about cars?

Not much, according to Warren Buffett, but Buffett partners, Charlie Munger and David Sokol, knew enough and Buffett listened. Thus, last fall Buffett settled on a 10 percent share of BYD.

Why?

According to a great Fortune piece, the Buffett team now believes that BYD could become the world's largest automaker thanks to its ability to sell plug-in hybrid cars and other electric vehicles at a cheaper cost than other manufacturers. For instance, BYD's current plug-in, the F3DM costs just $22,000 - far cheaper than most hybrid cars on the road today.

Unfortunately, don't expect a BYD hybrid in America anytime soon. BYD isn't sure it wants to come to America because the economics are not compelling for plug-in viability, however, BYD is interested in selling batteries to American auto manufacturers, which is ultimately, the key to BYD's future.

Thus far BYD believes it has developed a technological breakthrough enabling the safe and cost-effective mass-production of lithium batteries. If true, even mighty Toyota better watch out according to Warren Buffett.

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Shopping for a new or used Prius - April

Shopping for a new or used Toyota Prius. We're trying to find the bargains on these hybrid cars.Good time for a used Prius?

So, the 2010 Toyota Prius, based on the third generation Hybrid Synergy Drive, is just weeks from hitting dealer showrooms. A couple of months ago, expectations for this new Prius included a significant bump in sticker prices. However, rumors have leaked out of Japan that indicate the new Prius might be priced much cheaper than originally anticipated.

Moreover, we also know that the current generation Prius will continue to be sold as an even cheaper package. How cheap? That isn't completely clear.

So, what about buying a Prius today?

For the next few weeks I'm going to be out hybrid shopping, looking for deals and bargains. This weekend, I learned that many Toyota dealers don't feel too desperate to unload their Prius hybrids yet. Certainly, there are incentives on the current Prius, about $1,000, but dealers don't seem willing to bargain too much below that price, unless fully loaded.

Pricing on used Prius hybrids, however, is more flexible. Prices have already been reduced at a dealership near my house, and my salesperson indicated he would instantly knock another $1,000 of that reduced price. That would have put a 2007 Prius with 33,000 miles at about $18.5. A similarly packaged 2009 was priced just shy of $25000.

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Friday, April 10, 2009

Is the green auto revolution more hype than reality?

Every automaker is investing large amounts of money into hyping their green offerings, yet when will these hybrid cars and electric vehicles really make up a significant percent of total vehicle sales?Can Honda sell 100,000 Insights per year?

“In spite of government and advocacy groups touting the benefits of smaller, more fuel-efficient vehicles, Americans seem to have an insatiable feeling that bigger is better,” claims AutoTrader research data according to MSNBC's Dan Carney.

In recent years, automakers have built a lot of PR hype around their green offerings, or at least their future green offerings. For instance, America has been hearing about the Chevy Volt for years now, yet the Volt's sale's debut is almost 2 years from reality. Even then, and for a number of years after, GM will be making 10's of thousands of Volts, not 100's of thousands.

Likewise, many other automakers have plans for a hybrid or two, maybe a few small cars, and a limited production EV. Yet, none of these automakers have stopped building beefed up sports cars and gas-guzzling trucks and SUVs. Go to any auto show and most of the crowds are still drawn to the usual, inefficient suspects.

In terms of sales, for instance, Ford has been putting great effort into promoting its fantastic Fusion hybrid, but the automaker is only going to make 25,000 of these great hybrid cars per year. On the other hand, Ford sold over 30,000 F-Series trucks in March alone, despite the fact that Ford truck sales are down more than 40 percent year to date thanks to a recession - not gas prices.

In reality, isn't the green auto revolution still mostly hype?

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Thursday, April 09, 2009

Hyundai Nuvis hybrid interesting but...

A glimpse of Hyundai's design and hybrid future is very interesting and offers great syling, but it won't help Hyundai challenge Toyota's domination in hybrid cars.Great styling but questionable potential

I've been looking at pictures of the Hyundai Nuvis hybrid all morning, and I have to say I'm slightly disappointed. While I really like the styling of this vehicle, I have to question its approach.

Offering the room of a large sedan the Nuvis crossover is an appealing vehicle, but at 34 mpg combined, I'm just not sure its the right approach for Hyundai to showcase its future unless it can be priced considerably less than the Ford Escape hybrid.

Instead, I'd like to see Hyundai's Hybrid Blue Drive, which will use Hyundai's new lithium polymer batteries, in a smaller, cheaper Toyota Prius and Honda Insight hybrid contending package.

Moreover, considering Hyundai's lithium battery helped reduce the battery weight of this hybrid, coupled with the effort Hyundai took to make the hot new 228 hp inline 4 cylinder engine more efficient, I'm a bit surprised that the Nuvis doesn't blow the Escape hybrid's fuel economy numbers out of the water (Water was the design influence of the Nuvis).

Nonetheless, Hyundai's increasing focus on hybrid cars is very encouraging.

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Make today's hybrids lithium hybrids

Lithium can help revolutionize the US auto industry, but we shouldn't just wait for plug-in hybrids and electric cars before using lithium. We should start using lithium-ion batteries in today's hybrid cars as soon as possible.Put lithium inside it

Auto sales are tanking and an auto industry recovery is many years away. Sales of hybrid vehicles have been crushed. However, the new Honda Insight and the 2010 Toyota Prius appear as if they could bring some recovery to hybrid sales, thanks to pricing competition.

Still, without a spike in gas prices, most Americans will continue to shy away from these fuel efficiency focused vehicles despite cheaper pricing. Thus, many, such as AutoNation CEO Mike Jackson, have called for a gas tax to help incentivize interest in fuel economy, while creating funding for fuel efficient tax credits.

With or without gas tax funding, it seems to me that a new tax credit should be created to incentivize the use of lithium batteries in conventional hybrids, thereby solidifying the use of lithium in the auto industry. Moreover, many of these hybrids can inevitably and quite easily be converted into plug-in hybrids as lithium costs are reduced - A123Sytems, an American battery company, has already proven this. So make a tax credit for that as well.

I know such an idea is heresy to many in the plug-in movement, whom believe it's plug-in or nothing, but shell-shocked consumers, numerous consumer surveys, energy prices, etc. paint a different picture. Especially in these economic times, we need to walk before we run, and millions of lithium hybrid cars per year can be a huge step in the right direction.

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Wednesday, April 08, 2009

How the UAW helped kill hybrids, small cars and GM

Why aren't there any hybrid cars and small cars made by the Big 3 that compete with the Japanese? Don't just blame corporate ineptitude, blame the UAW as well.Partners or enemies

My father spent his working years in a union. My wife is in a union. I don't hate unions, but over the years, I've always wondered how workers and companies could be expected to succeed when the workers and companies habitually acted as if they were in battle against each other.

In terms of the auto industry, I've long been interested in the principle of kaizen, which is so pervasive in Toyota's auto business. This philosophy of continuous improvement has enabled Toyota to develop more reliable automobiles more quickly than their US counterparts. And it has represented the antithesis of the UAW.

According to a fascinating Newsweek piece, this adversarial relationship killed GM's early '80's interest in developing a new kind of car company focused on small cars - even hybrid cars - that could compete with the Japanese, while creating a new relationship between the UAW and GM partially based on incentives and success. This was to be the future and the salvation of GM. It was called Saturn.

The original idea didn't survive, but the reasons for its failure were not just limited to corporate ineptitude, but the stubborn, refuse-to-adapt-to-the-future UAW mentality. However, had the original intent of Saturn succeeded, according to Newsweek, many analysts speculate the US auto industry wouldn't just be free from the tentacles of bankruptcy, but far more successful and fuel efficient.

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The New Mercedes S400 hybrid

Mercedes using the S400 hybrid as a step towards electrification.Luxury and 29 mpg

Mercedes will begin selling the S400 hybrid this August according to Mercedes.

"The S400 Hybrid is a major milestone on our road toward emission-free mobility," says Dr. Dieter Zetsche, chairman of Daimler AG and CEO of Mercedes-Benz Cars .... In this way the S-Class and the Mercedes-Benz brand are doing important pioneering work for the electrification of the automobile."

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Tuesday, April 07, 2009

Ford's $20,000 hybrid?

Where is Ford's $20,000 hybrid vehicle to contend with the Toyota Prius and the Honda Insight? Ford could gain a lot with small hybrid cars, such as the Ford Focus hybrid.Ford's third gen Focus

I was checking out new pictures of the third generation Ford Focus on MotorTrend, and I couldn't help but think, why not make the Focus Ford's Honda Insight and Toyota Prius contender?

Imagine a $20,000 American hybrid!?

Hello! You wouldn't be able to keep it in stock. Even if the car lost money per unit for the next few years, imagine the traffic it would bring into showrooms. Imagine the positive press. And, eventually it would make a nice profit.

Make the gas version the econ model. Offer the hybrid in medium and luxury level trims. Maybe do the same for an EV version.

Isn't that the kind of choice America's freedom from foreign oil requires?

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Hybrids and clean energy for free!

Americans want energy independence and hybrid vehicles, etc., but they don't want to pay for any of these technologies.A Model S for every American for just $20,000

According to the Energy Learning Curve Americans want energy independence. They want new clean energy technologies. They want hybrid cars and electric vehicles. They want more energy efficient homes and better public transportation.

As long as the government pays for ALL of it.

Moreover, these same Americans don't want a gas tax, nor do they want to pay more for more fuel efficient vehicles. So, apparently, the government is to tax the rich to fund all this change?

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Prius Best Hybrid For the Money - Cars.com

The Toyota Prius continues to be the king of hybrid cars because its the best hybrid vehicle for the Money.Surprise, surprise - not!

Cars.com has published its list of Best Hybrids for the Money and the Toyota Prius is the Best Hybrid for the Money. I guess that's why it continues to far outsell all other hybrids.

The other hybrid vehicles on the list, based on size and class, aren't too surprising either since there really isn't much competition in each class quite yet.

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Monday, April 06, 2009

More luxury hybrids to the rescue!

GM will soon be rolling out more hybrid vehicles. Unfortunately, these very expensive hybrids offer America much help when it comes to foreign oil dependency.Just what America needs now

GM will be bringing a few new hybrid vehicles to market soon. Great news, right?

That's if you can overcome the sticker shock for these hybrids. For instance the GMC Yukon Denali hybrid will begin at almost $60,000. The new Cadillac Escalade hybrid platinum edition begins at more than $85,000.

$85,000 for the ultimate Cadillac is expensive, but I guess 20 mpg in the city is priceless.

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Friday, April 03, 2009

Great time to buy a Honda Civic hybrid?

It's a great time deals on hybrid cars. If you've been contemplating a new hybrid, now might be the best time ever to buy a new hybrid car.Some interesting deals for hybrid buyers

The other day Smurf, a fellow blogger, went out to buy a Honda Insight hybrid. However, since his local Honda dealer had few Insight hybrids and many Civic hybrids, his salesman made him an offer he couldn't refuse - a Civic hybrid discounted $2000 less than the best deal for an Insight hybrid.

These are great days for the buyers of hybrid cars, as new hybrids come to market in one of the worst auto sales markets ever. Expect these deals to become even more interesting once the 2010 Toyota Prius comes to market.

However, shopping around will make a lot of sense. I've already heard of $4500 dealer markups on the Insight hybrid. So watch out.

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Thursday, April 02, 2009

Incentives for Toyota hybrid cars buyers

Incentives for buying Toyota's hybrid cars, including the Toyota Prius and the Camry hybrid.Get a deal on a Toyota hybrid today

Toyota has announced a bunch of incentives on its vehicles, including its hybrid cars. Incentives can vary depending upon your region, but the Toyota Camry hybrid is averaging about a $1500 discount and the Prius is averaging about $1000 discount according to Cars.com.

Check out Toyota's consumer site for more information.

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Wednesday, April 01, 2009

Fusion hybrid? Whatever. Where's the F150 hybrid?

What message would a Ford F-Series hybrid send?

OK. As the government contemplates its cash for clunkers program I want you to guess the number I'm thinking right now. Sound crazy?

Really, it isn't that hard. The writing is in the picture. Think fuel economy.

Got it? That's right, it's 17. As in 17 mpg. For a 4-wheel drive it's 15. Add E85 and its 11.

Those are the stellar fuel economy numbers for Ford's top selling F150 Series pickup trucks - the top selling vehicle in America in March (and many other months).

Now imagine every American turning in their clunker for such a patriotic vehicle. Visualize the extra foreign oil America would need. Awesome! Right?

Imagine how many more Iraqs we could conquer to fuel our iron-triangled economy. Boy, we could end this recession right now.

Or, we can realize that 15 - 17 mpg is almost criminal and start turning these gas-guzzling monsters into hybrid vehicles, including plug-in hybrids. Maybe even full EVs. So, if Ford's hybrid cars are better, prove it by updating the segment most important to Ford's business - trucks - with a hybrid version.

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Tuesday, March 31, 2009

Hyundai Sonata hybrid due October 2010

An update on Hyundai's hybrid vehicles. The Sonata hybrid is due in October of 2010.Can lithium power the Sonata past other hybrids?

Hyundai has confirmed that it plans to begin selling the Hyundai Sonata hybrid in October of next year. More interesting, the Sonata hybrid will utilize Hyundai's Blue Drive - a lithium polymer powered hybrid drive.

In related news, the Hyundai Blue Will plug-in hybrid concept has not yet been confirmed, but there is "a very good possibility" that the Blue Will will eventually be produced.

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Monday, March 30, 2009

Chevy Volt can't save GM

Henderson, Lutz and Wagoner next to the Volt

I'm a big fan of the Chevy Volt. I think it's an important step in the right direction, especially for a company like GM. Still, I've blogged over-and-over that the Volt was not an excuse not to build a direct Toyota Prius-contender.

Ultimately, the lack of small hybrid cars coming out of GM - there are none - has perpetually bothered me. Thus, when a web campaign emerged to 'bailout out GM to save the Volt'. I had to say no (Bailout GM to save the Volt: No).

GM's viability, I've believed, had to be about more than the Volt, especially in the short term, and President Obama's task force agrees.

"While the Volt holds promise, it will likely be too expensive to be commercially successful in the short-term," an Obama task report said. The electric car "is currently projected to be much more expensive than its gasoline-fueled peers and will likely need substantial reductions in manufacturing cost in order to become commercially viable."

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Change? Why not natural gas hybrids?

New fuel, new battery

Starting Wednesday, the Pickens Plan will kick off a virtual march to push Congress and the White House towards a greater embrace of natural gas and wind power.

President Obama, however, has indicated that natural gas isn't an option. It's the electric car or nothing, but is that really wise?

I'm certainly not arguing against plug-in hybrid and electric vehicles. It just seems to me that scaling up production of these vehicles is going to take much more time than most advocates are willing to accept. Likewise, many of these vehicles are going to be consuming dirty coal for decades.

Thus, shouldn't natural gas be at least part of the conversation? And, to protect the drive towards electrification, the program could be driven by natural gas hybrid vehicles, which keeps investment into battery technology rolling while replacing foreign oil with domestic, cleaner natural gas.

Certainly having big dreams of solar power plants in the Southwest powering America's fleet of plug-ins via a super-grid are worth pursuing, but such a plan isn't going to happen over night. And the costs of making this happen far more quickly are probably more expensive than most tax payers would accept.

Thus, couldn't natural gas, especially focused around hybrids, be a bridge off foreign oil while electrification is developed and scaled?

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Friday, March 27, 2009

Ford: Our hybrids are better

Ford claims its hybrids are better and maybe the Fusion hybrid is, but then why is Ford making so few of these awesome hybrid cars? Why didn't Ford take on the Prius?"Not all hybrids are created equal"

That's the new message that Ford wants the buyers of hybrid cars to understand. Because of Ford's lighter battery - and its 20 percent increase in power and improved chemistry at higher temperatures - the Ford Fusion hybrid is able to stay in electric mode up to speeds as high as 47 mph, unlike the 35 mph to which many other hybrids are confined.

“The Fusion Hybrid’s ability to run at a much higher speed in electric mode allows drivers to maximize fuel efficiently in many driving situations,” says Praveen Cherian, the Fusion Hybrid program team leader.

As a Camry hybrid owner, I feel a bit of Fusion hybrid envy. It's an awesome hybrid, an awesome car.

Still, while I'm impressed with the Fusion hybrid, I have serious concerns regarding Ford's hybrid plans. First, if Ford's Fusion hybrid is so awesome, why isn't Ford trying harder to produce more than 25,000 hybrids per year? Second, if you've outdone Toyota in some way, why not take on the Prius and really send a message that your hybrids are better than today's best?

Is Ford's battery technology less cost-effective? Less reliable? Is it already dead technology and, therefore, meaningless? Just too many lingering questions.

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Is lithium polymer the key to hybrids and EVs?

Are lithium polymers the key to safe and cost-effective hybrid vehicles?Hyundai's hybrid weapon?

A couple of years ago, when it was speculated that Toyota would use lithium in the third generation Prius, I thought the world of hybrid cars was ready to explode. Unfortunately, Toyota chose the safe and reliable path and stuck with NiMH.

Since then, there has been a lot of talk about lithium chemistry's, and which one is better. Is it lithium cobalt, phosphorous, magnesium, etc?

At the LA Auto Show, Hyundai said it was lithium polymer.

Today, Technology Review has a pretty interesting piece on Seeo, Inc. and their latest use of "thin films of polymer as the electrolyte and high-energy-density, light-weight electrodes" which result in "safer, longer-lasting, lighter, and cheaper" batteries.

While some critics maintain that polymer electrolytes are not feasible for quick charge hybrids because of low ionic conductivity, the fact that Hyundai seems prepared to bet its hybrid future on related technology is quite interesting.

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Thursday, March 26, 2009

Car2go: A micro hybrid can be Smart

Even micro hybrid vehicles can be Smart. Car2go is one of the best ideas yet from Daimler.Pay as you go car sharing

Daimler has picked Austin, TX as the first US city to try its Car2go pay-as-you-go city transportation program.

Under Car2go, much like the Parisian Velib program, participants simply grab a car when they need one and leave it wherever they are when they don't need it - within a certain geographical area of course. Membership is free and the cost is just 19 cents per minute. (For more click here).

Smart will use micro hybrids - Smart cars with start stop technology that will enable these autos to shut the engine off when at rest to increase fuel efficiency and emissions reductions. Soon, however, Smart EVs could also be added to the program.

Now that's a very Smart idea.

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Honda Insights being delivered

Honda Insights are now being delivered to dealerships. Have you done any Honda Insight hybrid shopping?A truckload of Insights

Here's a bunch of Honda Insights making their way through Indiana.

The Insight is hitting dealerships this week, and I'm very much looking forward to seeing how fast Honda is able to move these new hybrid cars.

Anybody out there gone Honda Insight shopping yet? (Thanks for the pic Brian)

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Hydrogen hybrid: Isn't the hydrogen highway closed?

Does hydrogen matter, even if it is a hydrogen hybrid?Now if I could only find that hydrogen filling station

So, Mazda has received permission from the Japanese government to start leasing the Mazda hydrogen hybrid. Cool, right, especially since this hybrid can burn both gasoline and hydrogen?

Still, now the President Obama has put the kibosh on hydrogen funding, isn't the hydrogen highway closed here in America? Does hydrogen still matter?

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Wednesday, March 25, 2009

Yaris hybrid coming, Auris hybrid possible

Toyota is going to bring a number of cheap hybrid vehicles to market, including the Toyota Yaris hybrid and probably the Auris and Corrola hybrid.Yaris hybrid confirmed

Small Toyota hybrid cars are coming.

Akihiko Otsuka, chief engineer of the redesigned, third-generation Toyota Prius stated, ""We are developing a low-priced hybrid vehicles like Honda's Insight. We are going to compete by expanding our hybrid-vehicle lineup to smaller hybrids, in the class of the Vitz [sold in Japan] and Yaris.".

Likewise, Otsuka noted that the current Prius will now share a great number of parts with the Toyota Auris while confirming that the Auris - the Corolla platform in the US - was designed so that it could carry a hybrid system.

Cheap hybrid vehicles are on the way! Unfortunately, don't expect any of these new hybrids until at least 2011.

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New Prius cheaper than expected?

Is the king of hybrid cars going to again shock the hybrid world with a cheaper than expected 2010 Prius?Priced the same as the current Prius

The new third generation Hybrid Synergy Drive is going to enable the 2010 Toyota Prius to achieve better fuel economy and better performance than the current Prius and all in a bit larger package. Likewise, it will offer a number of new, advanced electronic features. Thus, many have assumed the price of the new Prius will increase significantly.

But, what if it costs the same as the current Prius, at least at the base model?

The rumors coming out of Japan indicate that, at least for the Japanese market, the Prius will not be as expensive as originally thought. Since Toyota will continue the 2nd generation Prius, at pricing similar to the Honda Insight, is it unreasonable to assume that Toyota might try to match current Prius pricing with its new Prius?

We'll find out for sure quite soon, however, if true I think the sluggish hybrid sales chatter filling the auto world will quickly subside.

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Tuesday, March 24, 2009

Kia to sell lithium hybrid in August

Kia to launch the first ever hybrid vehicle to use a lithium polymer battery.Only in Korea, however

In August Kia will begin to sell the Forte hybrid. Using a lithium polymer battery, instead of a NiMH battery, the Forte hybrid will offer 112 hp according to MotorTrend. According to Kia, the Forte will be the first production vehicle ever to use such batteries.

No further information on if or when such a vehicle might find its way to the US.

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EVs and hybrids: A bandaide for American denial?

Hybrid vehicles are great, but isn't it time to start thinking beyond the automobile?Could it really be so simple?

Last night I watched a PBS program about the Velib, which essentially means freedom bike. In Paris, one can quite easily rent a bicycle to go from their subway stop to their job, the store, etc. Bike sharing is becoming Parisian for cool.

Moreover, cities such as Paris and London, are taking road space and converting it into public space - for walking, biking or some kind of public transportation space.

Yet, here in America, everything is about cake-eating. We don't want real change. Somehow the American Dream has come to mean irresponsibility.

We want the same auto culture as today, except in the future we'll plug-in our car and suck up as much coal as we can consume. Moreover, we're relying on a dying auto industry to somehow immediately start converting the entire US fleet into EVs - something which would take about 12 years if only EVs were produced today.

Obviously, many Americans will need cars for many years, and a move to hybrid cars and EVs is essential and important, but aren't even more innovative solutions required? Perhaps, even more simple solutions?

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