Forget hybrids: Senate Panel approves Detroit-friendly CAFE increase

What percentage of Americans really need a bigger SUV than this Escape hybrid?

A Senate panel approved a plan to increase average fleet fuel economy in the U.S. to 35 mpg by 2020. Of course, the plan has yet to be approved by the full Senate and the House has its own plan, so it won't be surprising if the final plan is watered down, especially related to trucks and SUVs - Detroit's moneymakers.

Still, the Ford Escape hybrid can essentially meet 2020's standards, today. The Toyota Prius blows this requirement away, today. Hybrid cars provide the technology to meet this requirement, today.

Between now and 2020, lithium-ion battery technology will be available, offering significant increases to hybrid fuel economy and cheaper costs. Plug-in technology for both hybrids and full electric vehicles will be available, but let's keep living in the stone ages of the automobile industry!

The more that America strives for mediocrity, the more mediocre we'll become. It's not immigrants and out-sourcing destroying America, it's our lack of vision as automakers, consumers and politicians. We can conquer the moon, but it takes decades to achieve a 10 mpg increase in fuel economy!

Let's go America, let's be average! Greatness is so passe!

35 mpg by 2020?

Under a compromise, the Senate is planning to put forth a bill that would require automakers to achieve an average fuel economy of 35 mpg by 2020. The House is putting together their own bill. Consequently, I'll bet more compromise is to be expected. (Reuters)

Auto Group to defend foreign oil dependency before Congress today

Forget global warming, foreign oil dependency is just too good!

Today, automakers "will take their hardest line in urging Congress not to raise fuel efficiency standards."

"Automakers acknowledge the debate in Washington has dramatically shifted in the past six months in favor of reducing carbon dioxide emissions, in light of growing concerns over climate change. They worry Congress will quickly pass a bill that will cost the industry more than $100 billion in the decade to come and force them to drop some types of larger vehicles, the most profitable for the Detroit Three. Automakers also argue that new standards could add as much as $5,000 to a vehicle's cost because of hybrid technology and other improvements, and that customers may not be willing to pay that cost."

Costs, huh? And foreign oil dependency hasn't had any costs? $100 billion? That's just a fraction of the costs for just the second war in Iraq, but let's forget about those costs.

(Source: DetroitNews)

Ford's Mulally wants to fight global warming

Let's get this sucka on the road then!

I think Ford CEO Alan Mulally has the potential to turn Ford around. First, Mulally is an efficiency aficionado. Second, he has proven himself at Boeing. Third, he wants to fight global warming, even telling reporters that he believes humans are responsible for the "vast majority" of global warming.

Whether he's correct or not regarding global warming, Mulally at least appears cognizant of the fact the fuel efficiency is going to determine the success of automakers selling vehicles in the U.S. - foreign oil dependency isn't going anywhere even if science proves the sun is causing global warming. Perhaps, some U.S. auto manufacturers might choose to focus on selling sub-$5000.00 cars in China and India, but it appears that Ford is prepared to try to sell fuel efficient vehicles in the U.S..

So, c'mon Mr. Mulally, let's see a few new hybrid vehicles, such as the Ford Reflex hybrid pictured above. Enough talking, time for a little walking. Show the world and the rest of Detroit that Ford ain't dead yet. Besides America could truly use some real leadership coming out of Michigan - apart from the Pistons and Red Wings.

Fuel Economy: U.S. automakers blame thyself?

U.S. automakers simply out of touch regarding fuel economy?

There is an interesting article on MSNBC.com this morning titled, Detroit Jumps Into the Fuel Economy Debate. Now that Congress and the Supreme Court appear to be getting more tough on fuel economy and global warming, automakers are trying hard to frame the debate over these issues in their favor. Yet, should we listen to U.S. automakers?

I'm not sure. Part of Detroit's argument is that forcing U.S. automakers to increase fuel economy will prevent them from developing hybrid cars and fuel cell vehicles. That seems like an odd argument. Don't mandate we make hybrid vehicles because then we won't be able to afford to make hybrids. Huh????

Finish Fuel Economy: U.S. automakers blame thyself?

Hydrogen-powered Volt update

How long, how loooonnnnggggg?

Larry Burns has posted an article regarding the Chevy Volt that is being displayed at the Shanghai Auto Show, for those interested. I have to admit that I was a bit disappointed to find out that the new iteration of the Volt - a rumor that hyped its way through the blogosphere for the last couple of weeks - is a fuel cell vehicle.

Yes, I believe fuel cells have great potential, but if an electric-gasoline version of the Volt is 3 years away, a fuel cell Volt is even further off in the distance. Quite honestly, I care much more about what GM and all automakers are doing today, and I would have been much happier with a dumbed down version of the Volt - a vehicle that could be sold, say, next year.

Imagine GM taking on the Toyota Prius head-to-head now, instead of 3 years from now. That's what America has been waiting for - an American-made freedom fighter. An American worker-supporting, foreign oil dependency-fighting, global warming-stopping, American-made vehicle. Is that so much to ask for?

Perhaps such a vehicle wouldn't resonate particularly well with a majority of the GM faithful, but such a Volt would, however, resonate with millions of Americans that don't particularly care for GM's environmental and fuel economy efforts.

Poor fuel economy - It's the consumers, stupid?

Yesterday, the director of the EPA's Office of Transportation and Air Quality, Margo Oge, told a crowd at SAE that automakers and energy companies needed to work together to achieve increased fuel economy and reduced emissions. Immediately, disagreement came from every direction, according to the DetroitNews. Is it hydrogen, is it ethanol, is it fuel cells, is it cleaner gasoline, is it hybrid cars?

While there was little consensus on any sort of answer to creating better fuel economy and reducing emissions, there was some consensus regarding consumers and their role in this conundrum. Typically, consumers want the cheapest fuel - regardless of emissions, regardless of foreign oil dependency - and consumers quickly tend to choose performance over fuel economy.

"The challenge we face is that a vast majority of our customers choose fuel based on cost and convenience even over concerns such as greenhouse gases," Shell Oil Vice President for Fuel Development Darran Messem said.

Steve Plotkin, transportation energy analyst at Argonne National Laboratory, added "Americans have chosen performance over efficiency for years," as he suggested that the government will have to mandate some standards.

I say forget mandates, let's do a gas tax. It makes consumers take action that will require a fuel economy-driven reaction from automakers. Ultimately, if consumers aren't part of the solution, then the problem will only get bigger.

SAE: Fuel economy and safety one-in-the-same?

Some 35,000 automotive engineers will meet in Detroit this week for the Society of Automotive Engineers World Congress where fuel economy will be an important focus due to the growing political concerns regarding global warming and foreign oil dependency. Thus, automakers will show off a host of hybrid cars, clean diesels and fuel cell vehicles.

Nonetheless, safety will also be an extremely important issue. Inevitably, consumers still value safety far more than fuel economy. Still, it's a bit surprising that there is such a disconnect between safety and fuel economy. With numerous national security experts claiming that foreign oil dependency is possibly the greatest National Security threat to the U.S., why is fuel economy not correlated with 'safety' by either consumers or U.S. automakers?

Ultimately, isn't foreign oil dependency the ultimate safety issue?

Fuel Economy: The Terminator warns Michigan

Get on the fuel economy train now, Detroit, or else

"Now, there's a billboard in Michigan that accuses me of costing the car industry $85 billion. The billboard says, 'Arnold to Michigan: Drop dead.' The fact of the matter is what I'm saying is, Arnold to Michigan: Get off your butt. Get off your butt and join us."

Those were the words of Arnold Schwarzenneger as he spoke at the Global Environment Conference at Georgetown University regarding U.S. automaker's fight against California's plan to reduce automobile emissions and increase fuel economy.

"I want them to sell the cars in California," Schwarzenegger said. "I believe strongly in American technology. And I think in the end it will be technology that will ultimately save Detroit."

GM and Chrysler took issue with Schwarzenegger. Ironically, neither GM nor Chrysler yet offer any full hybrid vehicles.

U.S. automakers: Too focused on fuels rather than on fuel efficiency

Shouldn't automakers be more focused on fuel efficiency, rather than on alternative fuels?

I hate being critical of the biofuel movement, but it is simply a fact that corn-based ethanol is just not a very good bio-fuel. Moreover, there are plenty of questions still left unresolved regarding bio-fuels, especially until cellulosic ethanol is economically achieved.

For example, if we triple or quadruple ethanol consumption, how much will food prices increase? Also, considering that water is more and more labeled as the next oil, is it wise to use so much of this precious resource to fuel our vehicles via water-greedy corn? Furthermore, will global warming affect our ability to produce many bio-fuels? And that's just for starters.

Finish Fuels rather than fuel efficiency

Energy Security and Global Warming: What GM is doing

Is GM about more than just the Hummer?

When it comes the environment and global warming, GM is the favored whipping boy in the automotive sector, but is such a view of GM accurate? Just because GM isn't the leading developer of hybrid cars, does that mean they are not an environmental leader? According to GM's VP of Environment and Energy, Beth Lowery, that view is not correct and she is letting people know about it on the Fast Lane Blog.

Finish Energy Security and Global Warming

MPG: What do automakers want?

Does the world need some new automakers?

Automakers, including the leading developer of hybrid cars, Toyota, are essentially begging Congress not to get too tough on fuel economy according to the latest Reuter's reports. Yet, what are their solutions? Wait until the holy grail, the hydrogen economy, develops? Do automakers not fully comprehend the threat and problems caused by foreign oil dependency, by global warming and automaker's significant responsibility towards these issues?

While automakers speak of the billions it might cost them to achieve significant gains in fuel efficiency, how many billions - if not trillions - has foreign oil dependency cost America, the world? Certainly Congress and automakers must work together, rather than as adversaries. And, while it is true that consumers also must bear some of the burden for creating our gas-guzzling culture, at some point automakers need to realize that America needs solutions to foreign oil dependency and global warming far more than it needs any of the major automakers.

Ultimately, if automakers cannot become part of the solution, then they are part of the problem.

Intellichoice - New EPA ratings shouldn't deter hybrid buyers

Hybrids still on Best of 2007 List

Sure, hybrid vehicles are less fuel efficient than the old EPA ratings, but so are most conventional vehicles. As a result, Intellichoice.com claims that the new EPA fuel economy ratings should not be used to reduce the appeal of hybrid vehicles.

“The EPA’s new gas mileage ratings update a 24-year-old model for measuring fuel economy and have been anticipated for some time,” said James Bell, publisher of IntelliChoice.com. “We strongly support the new ratings, which will help consumers by estimating miles-per-gallon based on real-world driving conditions. The bottom line is that hybrids still provide the highest fuel economy when measured against respective vehicles in their class. According to the EPA, on average, there will be a 10 percent decrease on most vehicles.”

Both the Toyota Prius and the Ford Escape hybrid were picked by Intellichoice as Best of 2007 for new cars under $23,000 and SUVs under $28,000 respectively. The Toyota Highlander hybrid and the Civic hybrid also scored well.

The funny politics of fuel economy

Aren't Democrats the ones making CAFE and global warming a platform?

Michigan's U.S. Rep. John Dingell, the House Energy and Commerce Committee chairmen who was irate with Nancy Pelosi and her global warming committee creation is now irked at Bush for increasing CAFE.

According to the DetroitNews "Dingell asked that key documents used to create the proposed changes to the Corporate Average Fuel Economy standards for cars and trucks be turned over by Feb. 1." Dingel wrote that he needed the White House to "provide us with all analysis and documentation prepared by the National Economic Council supporting the president's energy proposal."

Nancy Pelosi and some liberal Democrats have proposed far more dramatic CAFE changes, yet now Bush is too environmental for some ranking Democrats? Never thought I'd see the day when Bush, the oil man, was too much of an environmentalist for important Democrats.

Will environmentalists be as tough on Dingell and similar Democrats as they've been on Bush, or is partisanship more important than solutions?

The 'Admiral' calls 20 percent U.S. gas reduction impossible

Eric Bolling, known as the Admiral on CNBC's Fast Money, was on Morning Call this morning talking about oil prices. Consequently, he was asked about the President's State of the Union Speech and whether a 20 percent reduction in U.S. gasoline production was possible. He adamantly exclaimed that it was not possible, that ethanol would ultimately have little effect on gasoline consumption, and that the U.S. would be lucky if it could maintain its current gasoline consumption - rather than increase it as the U.S. seems to do year after year. Scary.

While Bolling might be correct, and based on his success he's hard to argue against, I think the U.S. must try. More important, I think it is desperately vital that the U.S. and consumers realize that alternative fuels, other than possibly hydrogen, are not going to be the answer. Fuel efficient technology, namely hybrid vehicles that can evolve into plug-in hybrid vehicles are absolutely critical.

I think it's even more evidence we need a gas-tax to clean energy tax credit policy.

State of the Union and Energy Independence: Power to the People!

Power to the people, not the corporations!

Energy independence is supposed to be an important part of the President's State of the Union speech tonight. So, when it comes to energy independence, where should the government place its tax incentive focus? Should it be on alternative fuels such as ethanol, bio-diesel, clean diesel and hydrogen? Should it be on advanced technologies such as hybrid vehicles, lithium-ion batteries, and fuel cells?

I say forget fuel. Forget ethanol. Ethanol already receives an incredulous amount of tax subsidies and is in danger of turning into a pork-barrel legislator's dream.

I say focus on hybrid vehicles, electric vehicles and lithium-ion battery technology. Let's invest in the kinds of technologies that can practically wipe out the need for any liquid fuel in just the next decade.

Of course not everyone will agree on the approach. Consequently, I say try to give the power to the people, and let's make the people accountable for their choices.

Yesterday, I suggested a gas tax. Why not make gas more expensive while using the gas tax revenue to reward consumers whom buy more fuel efficient technologies? Also, make that tax 85% less for E85, for example - let consumers reap the benefit of buying a flex-fuel vehicle if it works for them. Why should automakers receive CAFE credits - a tax saving loophole - for selling E85 functionality that is never used by the majority of consumers? In addition, empower the flex-fuel user to save even far more with a flex-fuel hybrid vehicle.

I say give the power to the people! It's fair, it's competitive, it's responsible.

100 mpg Prius versus the Volt electric: The great war of 2010?

Is the Volt a Prius killer? Will GM's plug-in hybrid leave Toyota's hybrids behind?

The Chevy Volt electric plug-in hybrid is an amazing vehicle, an amazing concept vehicle, but the Toyota Prius is an amazing production vehicle. Still, if GM were able to produce the Volt, would it be a Prius killer?

If today's Prius faced tomorrow's Volt, of course the Volt would electrocute the Prius, however, tomorrow's Volt will face tomorrow's Prius. So what do we know about these hybrids of the future?

--> Read the rest of 100 mpg Prius versus the Volt

Honda to fight "Prius effect" in Super Bowl Ad

A natural gas Civic next to Phill at NAIAS

Honda will use the Super Bowl to promote the fuel economy of its vehicles according to Reuters. "Honda's U.S. sales unit said on Tuesday that it would air three Super Bowl ads, two 15-second spots for its Element SUV and a 30-second spot showing its full line of cars driving past unneeded gas pumps -- a bid to emphasize their fuel economy."

Yes, Honda is the most fuel efficient automaker. Yes, the Toyota Prius has given Toyota an amazing amount of green credentials as it also produces vehicles to challenge market leaders in the most fuel inefficient market segments. Yet, Toyota has been a technology leader, while Honda has continued to play it safe and conventional.

Ultimately, Honda's fuel efficiency isn't enough to end foreign oil dependency, next generation hybrid technology; however, could achieve that end. If Honda is seeking a "Prius effect" than its time for Honda to kick it up a notch.

Fuel efficiency to become most important for consumers?

A study by KPMG cited by BBC claims that most car industry executives believe that fuel efficiency is quickly becoming the most important concern for car buyers. "The North American consumer seems to be waking up to some consciousness with regard to fuel pricing, and those designs are typically the heaviest and least fuel efficient," Motor industry analyst Mark Fulthorpe, of CSM Worldwide stated.

"Increasingly they are looking at newer, lighter designs particularly from the Japanese and Korean manufacturers. We also see that in Europe as well."

If gas prices continue their decline, it seems hard to believe that fuel economy will become the dominant issue for car buyers. Still, such beliefs should keep investments in hybrid cars and other fuel efficient technologies a top priority for automakers.

Fuel economy estimate revisions and hybrids

On Monday the EPA announced that it was going to revise fuel economy estimates on vehicles to provide better information to consumers. Mileage estimates for hybrids will also be affected. Accordingly, "mileage estimates for gas-electric hybrids probably will be 20 to 30 percent lower for city driving and 10 to 20 percent lower on the highway, the agency said."

One can expect hybrid critics to again claim that hybrids don't make sense, yet when real world fuel economy of all vehicles is compared - especially class-by-class - it will be demonstrated that hybrids are still significantly more fuel efficient than conventional vehicles.

Still, the real point regarding the EPA's revisions shouldn't be focused on hybrids, it should be focused on the fact that, in reality, automakers are horribly failing CAFE. Yet, ironically, the real world fuel economy of conventional vehicles isn't going to affect CAFE requirements. The fact that automakers have essentially violated the will of Congress for decades - causing massive increases in foreign oil dependency - just doesn't matter.

(Source:MSNBC)

Automakers turning green? Poppycock

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

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

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

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

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

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

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

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

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