New tax credits for Non-plug-in hybrids needed?

Tax credits helped drive the Prius

There is no doubt that tax credits for hybrid cars, especially the Toyota Prius, helped sell these vehicles. But, are new tax credits needed to keep moving these vehicles?

Probably not, considering that most hybrid dealers have been adding massive dealer markups to these vehicles. Of course, if the economy keeps tanking all car sales will suffer.

Still, what about a tax credit for non-plug-in hybrids that rewards significantly higher fuel economy - say for hybrids that achieve at least 60 or 70 mpg combined fuel economy? Or, at least a tax credit for plug-in conversions?

If Congress truly wants to end foreign oil dependency, isn't a more aggressive, comprehensive incentive program required?

Toyota hybrid battery replacement costs

Still leaving all others in the dust

There are now hundreds of thousands of Toyota Prius hybrids on the roads of America, and a number of them have had their battery warranties expire, particularly first generation Prii. So, if the battery goes out, how much will it cost to replace? $2,299 according to AutoWeek, a reduction of almost $700 compared to the costs of such batteries just a couple of months ago.

Second generation Prius hybrids should still be under warranty, but if the battery does need to be replaced, it would cost $2,588.

Do automakers suck?

Nissan's electric concept at the Paris Auto Show

As the Fall days have grown darker, so has my mood. Massive bailouts, loans and tax incentives for big, failing US businesses.

Where's my massive bailout? Where's my cheap loan?

I know. I know. The bailout isn't a bailout of Wall Street. It's a bailout of main street. The bailout ensures than one day I can again finance a car that makes no sense in the modern world.

Yet, soon, we'll have Toyota Prius derivatives, including a plug-in version, and the the Honda Insight hybrid. Even better, we'll have the Chevy Volt built here in America. There's hope, right?

Yes. A tiny, little sliver of hope.

However, it'll still be at least a decade before these vehicles, combined, account for even 10 percent of US sales, probably longer. Maybe far longer. In today's digital, business at the speed of light world, automakers are giant, super slow oafs. Dinosaurs. All of them.

Can automakers change? Or, is it time to accept that creative destruction is the only way forward?

Tax credits for plug-in's a done deal

Will a Prius plug-in qualify?

Tax credits for plug-ins are now a done deal, as the President has promised to pass the bailout bill that Congress has now approved. Plug-ins with at least a four-kilowatt battery pack will qualify for a credit ranging from $4,168 to $7,500 depending on the number of kWh's in the battery pack.

It is know that the Chevy Volt will qualify for the entire $7,500.

Originally, Toyota was against this bill, but the company seemed to change its tune when the kWh battery requirement was reduced. So, it appears plug-in hybrids, such as the Toyota Prius, will also qualify for this credit.

No Big 3 Prius challengers in Paris?

The only Prius challenger for years?

Duh? The Chevy Volt, right?

Not any time soon. Maybe not ever.

A significant percent of Americans simply can't plug-in, won't want to plug-in, or won't want to front the extra money up front for the benefits of electric vehicles.

Ultimately, there will be plenty of consumers for both the Toyota Prius and the Chevy Volt, but they are two very different technologies for two different consumer segments.

Yet, Toyota is also developing plug-in hybrids to challenge the Volt. Are GM's lithium-powered BAS hybrids really a challenge to the Prius? Are 20,000 Ford Focus hybrids a challenge to the Prius? And what about Chrysler?

In recent months, both Hyundai and Honda have committed to selling 100,000's of thousands of hybrid cars each, per year, within the next several years. Shouldn't the Big 3 be doing the same?

New Prius-based Lexus hybrid a done deal

Lexus version coming soon

A new Lexus hybrid, based off the Toyota Prius, is a done deal, at least for Europe, according to AutoWeek.

Plans to produce a larger Lexus hybrid, however, have been squashed because of CO2 emissions.

Honda Insight in Paris: Cheaper, not better than the Prius?

Not as efficient as the Prius in the city?

The new Honda Insight hybrid will be the first real challenge to the Toyota Prius. But is it really a Prius fighter?

While the Insight IMA hybrid powertrain coupled with its 1.3 liter engine will be a bit smaller and lighter than the powertrain in the Honda Civic hybrid, it will still offer very similar fuel economy to the Civic hybrid. Thus, while the Insight might equal the Prius on the highway, the Prius will far out-perform the Insight in city fuel economy.

Of course, the Insight will be cheaper than the Civic hybrid and the Prius, making up for some of this city efficiency, but it will also be smaller than both hybrid vehicles. How much is extra space worth?

Insight versus the Prius? The choice is yours, and choice is what really matters.

Auris hybrid: Proof a city Prius possible

A great Prius derivative for America?

The Toyota Auris has become a pretty successful car for Toyota in Europe, and that success is pushing Toyota to consider a hybrid version of the Auris, a subcompact, for the European market.

Why not rebrand the Auris hybrid as a city Toyota Prius for America? Why let Honda sell the cheapest hybrid cars in America?

Chevy Volt: Can it change perception of GM?

The Volt made a recent publicity stop at NASCAR

For many Americans, the Chevy Volt has become the savior of the US auto industry. A made in America foreign oil dependency freedom fighter. And, one day, it might just be that, but not any time soon.

In the interim, however, can it change the perception of GM and its ability to build quality automobiles?

Finish: Chevy Volt: Can it change perception of GM?

Toyota Prius - How would you change it?

Multiple Prius derivatives inevitable

Some day soon, Toyota will begin rolling out new hybrid cars, a bit different than the current Prius, but that will also utilize the Prius name plate, such as a larger crossover Prius, or a smaller city Prius. Shoot. Maybe a convertible Prius, or a two seat, sporty Prius. And, of course, a plug-in Prius.

Setting aside plug-in functionality, if it was your task to develop a new Prius derivative, what kind of car would you craft? For me its always been a small as possible city car, a Prius that would challenge the Smart Car in terms of size, but with more than twice the fuel economy. What about you?

A short Toyota hybrid vehicle shopping trip

Customers back in control?

Thanks to a killer headache on Friday, I decided to call it a day early and take care of a few errands. Since those errands took me close to a local Toyota dealership, I decided to shop some hybrid cars.

Are there still dealer markups on the Prius or Camry hybrid?

Finish: A short Toyota hybrid vehicle shopping trip

Honda Insight - Can it live up to the hype?

Too little too late?

Sure, it looks sort of like the Toyota Prius, yet the Insight's design lines are still a bit more sleek and refined than the Prius. But consumers don't buy the Prius for its looks - or do they - they buy it for its fuel economy, right? How will the Honda Insight compare?

Without a major hybrid powertrain upgrade, it seems far-fetched to believe the Insight will beat the Prius in city fuel economy, but if the Insight pummels the Prius on the highway, will that give the Insight an edge?

Or, is it purely price that will give the Insight a chance against the Prius? Will Honda really sell these new hybrid cars for less than $20,000? What do you expect from the Insight?

A problem with Toyota's hybrids

Are all others that far behind?

Starting next year Toyota will make almost 1/2 million hybrid vehicles per year, led by the ever popular Toyota Prius. And, not long ago, Toyota publicly stated that it would seek to produce 1,000,000 hybrid vehicles per year early in the next decade.

Recently, however, Noboru Kikuchi, a Toyota spokesman pushed that goal of 1,000,000 hybrids per year to 2020 (more). So, it will take another decade to double Toyota's hybrid production? Why?

Hopefully, Kickuchi misspoke, or he meant NiMH vehicles with the possibility of additional lithium batteries, which might make sense in reference to his speech. Otherwise, this news is a setback.

30 miles of electricity for Ford plug-in, 40 for Prius?

Ready now?

I was reading through the Automotive News today, and I came across an article discussing what the Big 3 could do if Congress provides $25 billion in loans to automakers. Currently, any projects using loan money have to achieve a 25 percent gain in fuel economy.

Thus, the Automotive News suggested that Ford convert the Escape and Mariner hybrids into plug-in hybrid vehicles. According to Ford, Automotive News states, a lithium-powered plug-in Escape hybrid can achieve 30 miles of electricity and average 80 mpg.

If true, one would assume that the Toyota Prius, with similar lithium technology, would probably achieve 40 miles of electricity and average about 100 mpg.

Yet, parallel plug-in hybrids have been considered an inferior technology to series plug-in hybrids by many since the launch of the Chevy Volt, but is such an assumption premature (Not the GM necessarily believes this, as GM is developing both plug-in hybrid powertrains)?

Hybrid aerodynamics driven by fuel economy

Why does it look like the Prius?

The Toyota Prius is the king of hybrid cars. Yet, there are many that hate its design. Thus, now that the world has seen images of both the Honda Insight and the Chevy Volt, there is even more hate in the hybrid world, as these hybrid vehicles have come to resemble the Prius in many ways.

Honda's Chuck Schifsky, a Honda spokesman, adds some insight into this issue. Regarding the Insight design Schifsky recently went on record and stated, "It was done that way because it was the most aerodynamic design, and we were going for fuel economy."

Thus, the Clarity fuel cell vehicle and the CR-Z, another future Honda hybrid, will also share many of these ' prius' design cues. These vehicles, just as the Volt, however, do not resemble the Prius because of its sale's success, but because of an aerodynamic focus on fuel economy.

Chevy Volt hated by bipolar America

Too Prius like?

As if that's a bad thing. Yet, the Internet and the Chevy Volt Nation are up in arms. This is not the Chevy Volt that debuted at NAIAS in 2007.

"Huge disappointment," and an "unlikely love child of a one-nighter involving GM's concept and the Prius" are some of the criticisms that AutoObserver reported.

For many of these critics the Volt was the anti-Prius, an American-made bad ass electric muscle car that would put America back on top of the auto world. A vehicle that would allow Americans to continue to act like Americans, but without the guilt. We'd no longer waste gas, instead we'd waste electricity, which is so much more 21st century.

But, now the Volt looks too much like the Prius. Well, some times intelligence needs to trump vanity. Finish: Chevy Volt hated by bipolar America

Automaker bailout isn't a bailout?

Chrysler's idea of hybrid technology

Earlier today I changed my stance and suggested that Congress give Detroit automakers the money they are seeking, with conditions that mandate more change than just new CAFE.

Let's ensure the bailout leads to guaranteed change, I thought, but then I learned it's not a bailout. The Big 3 don't really need the money. It's for us - you and me - Joe Customers.

"It's not a bailout. It's an acceleration of technology into the hands of consumers who couldn't afford it," Chrysler's Jim Press said.

Huh? You can't find a hybrid today on a lot. Toyota is months behind demand for its hybrid cars, and is increasing production as fast as possible. Next year Honda will sell more hybrids than the Big 3 combined by a couple times at least. This money isn't about helping consumers, it's about one thing, bailing out Detroit's over-dependence on large SUVs and trucks.

Bigger hybrids are better, right?

A better application for hybrid technology?

Small cars, so goes the thinking of some, are already fuel efficient, so why waste costly hybrid technology on small hybrid vehicles? Instead, putting that hybrid technology in large vehicles, they note, actually saves more fuel.

I thought about that this weekend as I watched a few Cadillac Escalade hybrid commercials. 'Why are hybrids always small cars,' the driver of an Escalade hybrid asks. Why not a vehicle with an 8 inch nav screen, dvd entertainment system and room for 8, yadda, yadda, yadda.

FINISH: Bigger hybrid vehicles are better, right?

Is ethanol killing your hybrid's fuel economy?

The fuel economy killer

It is a well known fact that ethanol reduces the fuel economy of internal combustion engines. Still, when you travel through some states, gas can be a good bit cheaper if you buy unleaded gas with higher percentages of ethanol that still qualify as conventional unleaded (We're not talking E80, for example, which requires Flex fuel technology).

These higher ethanol mixes have caused big reductions in the fuel economy of hybrid cars according to some owners with whom I have had contact. One owner told me that when he stopped using ethanol blends, the fuel economy of his Toyota Prius increased from an average of 43 mpg to 50 mpg.

Any similar experiences out there?

Next Prius "hugely profitable" and cheaper

Economies of scale have been breached

Back in 1997, Toyota lost about $10,000 on every Toyota Prius produced. Next year, thanks to economies of scale, hybrid part costs for the Toyota Prius will be cut in half, enabling Toyota to both decrease Prius prices and increase profits. Noriyuki Matsushima, analyst at NikkoCitigroup in Tokyo, told NewsWeek "the new Prius is going to be hugely profitable." And Toyota sees even greater hybrid production cost cuts throughout the next decade. Thus, by just 2010, hybrid vehicles could account for 10 percent of Toyota's operating profits according to Goldman Sachs analyst Kota Yuzawa.

Who says today's hybrids don't make financial sense? I guess only those without vision and long term thinking.

Prius hating violence increasing

How pathetic

Arson. Hammers and rocks. These are just some of the tools that some psychotic Toyota Prius haters are using to punish Prius drivers (more). Apparently, 45 mpg is just too offensive to some. Yes, a number of Prius drivers are elitist snobs, but there aren't nearly as many of them as there are elitist snobs driving luxury vehicles and house-sized SUVs.

Obviously, it's 45 mpg Prius drivers causing the all the problems in the world. If we all just acted like Prius hating morons the world would be so perfect.

State of the auto industry through NFL eyes

This hybrid has NFL written all over it

It seems every pro football player these days drives a Cadillac Escalade, and we can only hope that soon they will all be driving the hybrid version of the Escalade. Until then, the NFL might not be a huge supporter of hybrid cars, but what about the people watching NFL games?

I pondered this question last night as I watched the first NFL game of the season and all the commercials that go along with such a production.

Finish: State of the auto industry through NFL eyes

Honda Insight hybrid returns

It's back

Honda's new dedicated hybrid, intended to take on the Toyota Prius, will be called the Honda Insight, the same name as Honda's original two-seat hybrid. Honda isn't yet releasing many details about this new hybrid, but it is expected to debut the new car at the Paris Auto Show. And, according to some reports, the new Honda Insight hybrid will be available for sale next April.

Finally, some real competition in the hybrid cars segment is emerging.

Vue hybrid beats Prius to hybrid payback - CR

Why would anyone buy a conventional Vue?

Which hybrid vehicles offer the quickest payback? How could the Saturn Vue hybrid beat the Toyota Prius? Well, that's dependent on which non-hybrid you are comparing the Prius - Corolla or Camry.

Finish: Vue hybrid beats Prius to hybrid payback

Why is Honda betting on small hybrids?

Honda's biggest hybrid for years

When it comes to US made hybrid vehicles, the focus has been on SUVs and, in the near future, larger sedans. Even the Toyota Prius is going to grow in size. But, is bigger really better? Honda doesn't think so.

According to AutoWeek, Honda "plans to put hybrid systems into compacts and subcompacts because that's where the green technology achieves its greatest efficiencies, said Masaaki Kato, president of Honda R&D Co., the automaker's product development arm," because "hybrid systems are best used in small cars because small hybrids most often are used for city driving, where regenerative braking constantly recharges the batteries."

And smaller hybrids mean smaller price tags. As we asked on Toyota Prius Smackdown, might not cheaper hybrids be far more appealing to consumers than more expensive plug-in hybrids, at least until battery costs are significantly reduced?

Family of 5 at 50 mpg

Who needs an SUV?

According to US Census Data the average household size is 2.61 people and the average family size is 3.20 people. So, what percentage of American families really need SUVs?

I was reminded of this as I read a recent Toyota Prius Testimonial which stated, "Excellent car! We've averaged over 50mpg with a family of five. Longer trips have averaged 56.4 and 60.1."

50 mpg for a family of 5. And critics still don't get hybrid cars?

Prius Smackdown: Cheap versus plug-in

Already too expensive?

Let's pretend its some time in the near future. Lithium-ion battery technology is now powering some hybrid vehicles but, as will probably be the case at first, it is still expensive. Thus, the Toyota Prius now comes in multiple battery packages.

The base Prius continues to be NiMH powered, but more stripped down - a real base model. Years of NiMH production and less amenities results in a $17,000 price tag and an average 50 mpg. The second Prius comes in the same base package, but utilizes a lithium-powered battery. This lithium powered Prius achieves about 40 percent better fuel economy than the NiMH Prius, but begins at $22,000. That's $5000 more for an average of 70 mpg. Finally, the lithium-powered base plug-in Prius starts at $30,000 and achieves more than 100 mpg.

Which Prius would you purchase? Which Prius would most Prius buyers choose?

Do hybrid tax credits still make sense?

Tax credits have helped Altima hybrid sales

The Toyota Prius has not qualified for a tax credit in some time, yet demand far outweighs supply. The demand supply ratio is so out of whack that dealers are adding as much as $5,000 to the MSRP, in addition to thousands worth of dealer add-ons - and they are still selling.

Many other hybrid cars, such as the Honda Civic hybrid and the Toyota Camry hybrid, are selling as fast as they can be produced - also with dealer markups. While a few hundred thousand new hybrids will be added to the hybrid supply starting some time in 2009, if gas prices remain high, these hybrids will probably not just sell easily, but many will sell with dealer markups.

So, are hybrid tax credits still necessary? For what, to help justify dealer markups?

Hybridcarblog has been an advocate of hybrid tax credits for years, but isn't new thinking required? For example, perhaps the focus should be on plug-in conversions, EVs, or vehicles that achieve at least 80 mpg. Of course, it's hard arguing against hybrid tax credits when, unbelievably, gas guzzlers STILL qualify for small business tax incentives.

Nonetheless, should Congress create new hybrid tax incentives and, if so, what should be the focus?

Most cost-effective gas savers according to Intellichoice

The most cost effective mid-sized gas saver

According to Edmunds, most hybrid vehicles are not good buys because they cost more. Accordingly, a Honda Fit without air conditioning or cruise control and little more than a cheap AM/FM radio is a better deal than the Toyota Prius, simply because the Prius costs more. I won't even get into keyless entry, etc, for example, because such features have even far less value to Edmunds.

However, others, such as Consumer Reports, have perpetually picked the Prius as one of the most cost-effective vehicles to own. And it isn't just CR.

Finish: Most cost effective gas savers

Big price increase for third gen Prius?

Bigger, faster, pricier than this?

When Toyota announced that it was going to raise prices on some of its hybrid cars in Japan last week, it was hard not to wonder if more price increases are looming for Toyota's hybrids sold in the US. Since Toyota can't keep up with demand at current prices, a price increase seems logical.

More interesting, what does this mean for the next gen Prius, which should be in dealerships by this time next year? As the new Prius will be longer, wider, faster and more fuel efficient, in addition to highly coveted, a price increase seems almost required.

$20.00 more per day to rent a hybrid?

Only if you are considering a purchase?

About a year ago I needed to rent a car, so I thought I'd check out which hybrid cars were available for rental in my area of the world - Northeast Los Angeles. I couldn't find one available.

The other day a friend of mine was in need of a rental car following an accident, and she had the opportunity to rent a Toyota Prius - for an extra $20.00 per day. As most major rental companies are trying to add more and more hybrid vehicles to their fleets, it seems there are plenty willing to pay this hybrid surcharge, but such a fee seems a bit excessive to me.

New lexus hybrid could come as a convertible

A Prius with a different body?

While Toyota won't offer the Prius in different variants when it launches the third gen. Prius next year, it will use the Prius as the basis for a new Lexus hybrid. Little is known about this new luxury hybrid, other than it will use the third generation Hybrid Synergy Drive found in the Prius, and that it will be outfitted with solar panels on the roof. Today, MotorTrend has a sketch of what they think the new Lexus hybrid will look like, and they are reporting that the new hybrid might also come in a convertible variant.

Only 1 body style for next Prius

At least not for now

By January of 2009, the world will finally know almost everything it needs to know about the next generation Toyota Prius. That's when Toyota will debut the Prius at the Detroit Auto Show. What we already know is that it will be longer, wider, quicker and more fuel efficient. And, we also now know that it will come only in one body style.

Overall, the new Toyota Prius will look pretty much like the old Toyota Prius. Prius-derivatives, or Prius hybrids with different body styles, are still "under study" according to Bob Carter, group vice president and general manager for the Toyota division at Toyota Motor Sales U.S.A..

Also expected in Detroit is a new, unique Lexus hybrid with a "completely different design than the Prius."

Highway fuel economy is for suckers

Is highway fuel economy even relevant anymore?

So, the Ford Focus is a better deal than the Toyota Prius, and GM offers more vehicles that achieve 30 mpg or more than any other automaker. Of course, ONLY (and maybe not even then) based upon perfect world highway fuel economy.

So, what percentage of your commute is a cruise-controlled 55 - 65 mpg on a flat surface without any wind resistance?

Most people, even in small towns, stop at a few stop signs or red lights, conditions that reduce fuel economy significantly. Suddenly, 30 mpg is more like 20-25 mpg, or even worse, depending on how many stop lights you actually hit. Then there is the kind of congestion that you find in large cities like LA and Chicago. In such conditions, the Toyota Prius has been demonstrated to average almost 60 mpg. In tough urban congestion the Focus might not even achieve 20 mpg.

Yet, according to transportation studies, congestion is increasing and it's going to increase significantly in the future. So, is highway fuel economy even relevant anymore? Even worse, isn't marketing highway fuel economy deceptive?

Prius Most Reliable according to JD Power

How much value is there in reliability?

Recently I had to laugh at an article in Edmunds that called a Honda Fit base model a better deal than a base Toyota Prius, despite the fact the Fit didn't even include features such as cruise control. Instead, because the Fit was cheaper than the Prius, it was a better deal. The fact that the Prius came with so much more than the Fit didn't matter, as if extra features don't have either costs or value.

That's how Edmund's compares cars? Wow. So, I guess that fact that JD Power again found the Prius to be the most reliable compact has no value to Edmunds either?

Likewise, the critics of hybrid cars love to suggest that the Prius, apart from the Hybrid Synergy Drive, is cheap. Well, how is such a cheaply made car so reliable?

Third Gen Prius set for Q3 2009?

Another Prius variant?

While Toyota continues to be very tight lipped regarding the launch of the third generation Toyota Prius, sources continue to point to the third quarter of 2009, as long as demand for the current Prius doesn't decline. My sources at the London Motor Show were told that the new Prius would be available for sale in England in the 3rd quarter of 2009. Since most Prius sales are in the US, it seems hard to believe that Toyota would start selling the Prius in Europe before the US.

For the latest spy shots on the next gen Prius, check out MotorTrend.