Will the new GM be as pathetic as the new GMAC?

Another reason to dislike GM?

Not that long ago, but before the gas price boom of 2008, GM's Bob Lutz stated that GM could have used a fraction of one year's marketing budget to produce a Toyota Prius competitor. Instead, GM invested that money into ads promoting its latest round of gas guzzlers as Toyota went onto sell more than 1,000,000 Prius hybrids and counting.

Today, GM's largest shareholder is the government, via the US taxpayer, and the government has vowed to put $50 billion more into the new GM beyond the many billions it put into GM to save the automaker from bankruptcy. Hopefully, this time, GM is smarter about the way it spends money.

But, if the new GM is like the new GMAC, also known as Ally Bank, I think it might be time for liquidation.

The new Ally Bank commercials portray Ally Bank as this fair, new bank, unlike all the other banks that screwed over customers and then needed massive bailout money. Unfortunately, however, Ally Bank is GMAC, the same financial unit of GM that received some $20 billion from the US government to keep the doors open.

This is the kind of of company - the kind of ethics - that the government is going to invest, ultimately, almost $100 billion into?

Optional head lamp could destroy Toyota Prius

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?

Would GM gain anything from a rebadged Prius?

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?

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.

Incentives for a Toyota Prius plant in the US?

Can protectionism save US auto jobs?

For a few years Toyota has been toying around with the idea of a US plant to manufacture its red hot Toyota Prius. Unfortunately, the current recession crushed any such plan for the short term.

Would it be wise for the US government to help bring such a plant to the US, or should the government only protect US companies, or only just UAW workers?

Likewise, Nissan is now planning a US plant for electric vehicle and electric vehicle battery development, with a significant eye on US government help. Should they get it?

Are incentives for transplants to bring more manufacturing jobs to the US a good or bad idea?

180,000 Prius orders in Japan already

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.

Innovation: Is GM capable of quality hybrids?

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.

Toyota: NiMH more cost-effective than lithium

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.

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

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?

Is the lithium vehicle revolution more hype than reality?

A lithium battery pack from Hymotion

The other day one of GM's top Volt engineers, Frank Weber, claimed that by the second generation of the Chevy Volt, it was possible that battery costs could be halved. While I found that to be great news, I wondered how one could know such a thing if mass production of such batteries hadn't yet been demonstrated?

Then today I read a story about how GM's Global Battery Systems Engineering Group Manager, Joe LoGrasso, told the Advanced Automotive Battery Conference that "long-term commercial success [of lithium] may depend on the convergence of cell formats." Moreover, he claimed such convergence faced lots of obstacles and might not even be possible.

But, without such convergence, lithium success might not be possible?

These days, automakers have become marketing machines. Once Bob Lutz claimed that GM could have developed and produced a Toyota Prius contender with just a fraction of one year's marketing budget. Thus, automakers have a lot of money to spin hype and hope into publicly perceived reality.

One way or another advanced battery technology will make its way into the automobile, but is the lithium battery vehicle far more hype than reality today, and for the short to mid-term? Have automakers over-hyped the reality of current automotive technology, again?

Does the Volt really resonate in America?

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?

Toyota Prius tops Japanese car market in May

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.

Plug-in Prius leasing coming this year, but...

Ready to lease a plug-in Prius?

Later this year Toyota will lease a number of lithium-powered plug-in Prius hybrids. Unfortunately, only 150 of them will make it to the states in the first year.

On a side note, 110,000 orders for the 2010 Prius have been placed in Japan according to the AP.

A few thoughts about May hybrid 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.

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

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?

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

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?

2010 Toyota Prius: An ESPN fan favorite?

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.

Toyota Prius Shopping: Ready to deal?

In the market for a Prius?

If you've been thinking about buying a Toyota Prius, then you're probably pretty excited that the new 2010 Prius will soon hit US dealerships.

Just don't get too excited. Earlier this week, my dealer told me he was only expecting 5 new Prius hybrids for first month of sale. Fortunately, he also told me there would be no markups on the new Prius - we'll see how long that lasts.

But what if you need a car now, or you just want a great deal?

Well, there are some deals on the current Prius. Already Toyota has slashed Prius prices by as much as a few thousand, and they are offering great financing options. Moreover, I came away with an obvious impression that dealers are willing to haggle Prius pricing down at least another grand, maybe even two.

However, "we're not going to give them away" my dealer confirmed.

It seems to me Toyota knows full well that there will be a 2010 Prius shortage for several months, yet showrooms will probably be full of new Prius gawkers. So Toyota dealers might be happy to have a few Prii on the lot to push these buyers towards. Thus, I don't anticipate a second generation Prius fire sale any time soon, if ever, especially not in hot hybrid markets.

Nonetheless, if you're heading out to find a deal on a Prius this weekend, don't be afraid to make a low ball offer on a second generation Prius. You might get lucky, especially if this weekend is much slower than normal.

Chinese hybrids a big threat to America?

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.

Ready to costumize your Prius with an Aero kit?

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??

Jetta TDI better than the Toyota Prius?

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.

75,000 Prius orders already in

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.

Insight versus Prius: Commercials

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?

Traditional hybrids are becoming obsolete?

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?

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

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?

Time to pull the plug on the Chevy Volt?

It just can't help GM?

If you hate GM, then you probably don't think much of the Chevy Volt. In fact, you might even call it an unrealistic hype machine into which GM has sunk far too much money.

That's the argument the Washington Post makes today, and I have to admit, it's a pretty persuasive argument. For instance, the article points to numerous analyses, including some done by President Obama's auto task force, that indicate the economics simply don't make sense for a vehicle like the Volt. Thus, how can the Volt help GM's bottom line?

For example, even with $4.00 gas, it would still take, minimally, six years for the the Volt to recover its costs compared to today's Toyota Prius. And, that's assuming the Volt will only cost $30,000 after huge government tax credits and subsidies. Even at such a cost, it would still take far longer for many other Volt owners to recover their costs compared to a Prius.

Thus, this Post editorial suggests pulling the plug on the Volt, and I couldn't disagree more.

I have long argued that the Volt should never have been an excuse not to develop a Prius-contender. Perhaps GM's lithium-powered BAS hybrid system can fill this void, but cheap quality hybrids will be a necessity for any automaker in the very near future.

Fortunately, GM's billion dollar investment into the Volt could help produce such cheap hybrid vehicles, aside from the Volt. Because much of GM's Volt investment has been centered around one core technology, lithium-ion batteries, GM could conceivably parlay this knowledge into many different types of hybrid and electric vehicles.

Hence, to call GM's Volt venture a waste that helped lead to bankruptcy and a loss of corporate reputation is pure nonsense.

I've seen GM's battery labs. I've seen GM's virtual design center. These two elements alone could make GM's Volt investment worth the cost, even if the Volt itself is another decade away from any sort of real world, cost-effective impact.

Nonetheless, the Volt cannot save GM in the next decade. However, that does not mean the plug should be pulled on the Volt. Instead, it means GM needs to utilize the massive amount of intelligence gleaned from the Volt and convert it into a more well-rounded and balanced hybrid and electric vehicle portfolio, including the Volt.

If GM can do that, the Volt might just be GM's smartest investment ever. If not, maybe we shouldn't just pull the plug on the Volt, but GM.

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?

2010 Prius orders rolling in, ROLLING

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!

Fusion smackdown: Lithium to power Camry hybrid soon

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.

Boring: The new Honda Insight commercial?

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?

New Prius just $22,000

Cheaper than the current Prius

The new base 2010 Toyota Prius will begin at $22,000, a great price, but it will not include navigation, a solar roof, or a number of other high tech features.

The current Prius will be redesigned and offered for $21,000.

Overall, there will be five different Prius packages, with a fully loaded Prius hitting almost $32,000.

Fortune rips Big 3 and "foolhardy" Volt

The Volt's redesigned debut

A few weeks ago Fortune's Alex Taylor III slammed GM's Chevy Volt calling it "misguided, even foolhardy".

Today, Taylor elaborates on his Volt criticism while wondering when the Big 3 will challenge a vehicle like the Toyota Prius. Moreover, he wonders how financially-strangled Big 3 automakers are going to catch companies like Toyota on advanced technology.

Sure GM has a vehicle like the Volt, but Volt profitability is probably 3 generations away. How will GM make money in the interim? With gas-guzzlers? Without ever directly challenging the Prius?

And, if it takes another 10 years before the Volt is possibly profitable, new Chinese companies, such as BYD, might be too lean and mean - not to mention close to lithium supplies - for GM and the Big 3 to contend.

Shopping for a new or used Prius - April

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.

Ford's $20,000 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?

Prius Best Hybrid For the Money - Cars.com

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.

Prius, Volt and some simple EV economics

Plain and simple cost effectiveness

Later this Spring Toyota will begin rolling out the much anticipated 2010 Toyota Prius. At 50 mpg, the average Prius driver will spend less then $600 per year on fuel. After 5 years that's less than $3000. After 10 it's less than $6000.

So, let's say $22,000 for the base Prius + $6000 in fuel costs after 10 years and that's $28,000.

The Chevy Volt, on the other hand, is probably going to cost a bit over $30,000, after the $7,500 tax credit. So, say the Volt is $33,000 and it only uses electric power its entire life, resulting in a $1000 fuel cost after 10 years. That still makes the Volt $6,000 more expensive than the Prius. So, it would take $4.00 gas to bring simple equality.

Unfortunately, the $7500 tax credit is not going to last long relatively speaking. Most Volt buyers, if the Volt is a success, won't qualify for any tax credit.

FINISH: Prius, Volt and some simple EV economics

Great time to buy a Honda Civic hybrid?

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.

Incentives for Toyota hybrid cars buyers

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.

2010 Third Gen Prius for $20,750

What a deal?

Last week rumors leaked out of Japan that Toyota was going to price the third generation Toyota Prius much lower than most were anticipating. According to the latest reports, Toyota will sell the base 2010 Prius for $20,750, at least in Japan. A fully loaded third generation Prius will cost about $33,110.

Moreover, Toyota will continue to sell the current Prius, with an interior redesign, for $19,130.

Again, these are the translated US prices based on the Japanese price. Neither these prices, nor US pricing, has been officially confirmed by Toyota.

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."

New Prius cheaper than expected?

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.

Prius top compact according to JD Power

Prius reliability still tops

The Toyota Prius isn't just the most fuel efficient hybrid on the road today, it's also one of the most dependable vehicles available according to JD Power. The Prius took the top spot amongst compact cars in the latest JD Power rankings.

In terms of hybrid cars, the Lexus RX400h was a runner up in the midsize premium category.

Toyota developing sporty hybrid to challenge CR-Z

Honda's upcoming CR-Z hybrid

Not only is Toyota going to develop a compact hybrid - smaller than the current Prius - that will be cheaper than the Honda Insight, but the hybrid king will also develop a sporty hybrid, based off the MR2, to challenge the Honda CR-Z hybrid according to recent reports.

Love seeing this emerging hybrid battle heat up between Honda and Toyota, but I'd sure love to see a US automaker join the war.

LA Times slams hybrid car sales

Insight will lift hybrid sales

Hybrid car sales go from 60 to 0 at breakneck speed, writes the LATimes this morning.

Hmmm. Buy a Civic hybrid today, or wait a couple of months for a cheaper, cooler Honda Insight hybrid? Or, buy a Toyota Prius today, or wait until a bigger, faster, more fuel efficient Prius becomes available in a couple of months while waiting out a recession?

Certainly, hybrid sales have dropped significantly since this summer, but summer sales were driven by the irrational exuberance created by relatively sudden $4.00 gas. With gas prices cut in half, and consumers facing a recession, one would expect a burst of the hybrid bubble. Nonetheless, gas prices will go back up in the next few years. Thinking otherwise is foolish.

In fact, this morning President Obama called such thinking "irresponsible" while addressing the dangers of foreign oil dependency. And, truthfully, if Americans paid the real cost of oil dependency at the pump, the cost of gas would already be very supportive of significantly higher hybrid sales.

Still, sales of hybrid vehicles will pick up in the next few months, as the two most important cars in the hybrid market come to market. Compare those sales to when gas was $3.00 and I think a far different picture of hybrid sales will emerge.

New Toyota hybrid cheaper than Honda Insight

Toyota's ultra cheap hybrid?

For quite a while I've been calling out Toyota to come up with a small, cheap city Prius. A compact hybrid used mostly for city commuting when extra seating is rarely needed.

Well, Toyota might not have listened to me, but the buzz around the cost of the Honda Insight has gotten to the hybrid car king. According to reports, Toyota plans to sell a compact hybrid by 2011 - at least in Japan - that will offer a smaller engine than the Prius and a smaller price tag.

Finally, competition in the hybrid cars segment isn't just heating up, it's brewing new ideas and innovations.

Can Honda sell 100,000 Insight hybrids in this market?

Recession-fighter?

Had Honda launched the fantastically aerodynamically designed Insight hybrid at this time last year, it would have been impossible for Honda to match demand.

This year, however, is a whole different matter. Cheaper gas, a dead car buyers market, and a deep recession make the car business a bad business to be in these days.

Still, the Honda Insight is something different. The Insight isn't just the closest thing to a Toyota Prius contender - the undisputed kind of hybrid cars - it's significantly cheaper than the Prius. And, while the Insight isn't as fuel efficient as the Prius in all driving conditions, it's lower sticker price makes it a formidable challenge.

Nonetheless, with a third gen Prius just around the corner, coupled with current economics, selling 100,000 Insights won't be easy, or will it?

Do today's hybrids really need new tax credits?

Hybrid sales versus hybrid tax credits

I was just checking out some data provided by Hybridcarreview that seeks to find out the impact of tax credits for hybrid cars and the sales of hybrids.

Ultimately, this summer, Toyota Prius sales proved that tax credits are largely irrelevant when energy prices are higher. For other hybrids, the data isn't as convincing.

Even today, Prius sales are relatively strong, particularly considering that the third gen. Prius is almost set to launch.

Inevitably, over time - I believe - higher energy costs will naturally hybridize automobiles as America's fleet slowly but surely moves towards electrification. Keyword, as far as the next decade is concerned, is slowly.

However, if America were to set a goal of 1 million hybrids per year by 2012, hybrid tax credits for conventional hybrids would be needed.

So are new tax credits for conventional hybrids needed? It depends on how fast you want to embrace efficiency.

(Check out Hybridcarreview.com)

The calm before the hybrid storm

The waiting game

Sales of hybrid vehicles declined 29 percent last month. Of course, the decline in light passenger vehicles was down 41 percent, so hybrids are still selling relatively well.

Yet, with the new Honda Insight and the new Toyota Prius ready to hit the market, in addition to the Ford Fusion hybrid, it seems that hybrid sales could actually spike significantly in coming months.

Before the recession really took hold of the US economy, I had heard from many whom were waiting for these new hybrids. It'll be very interesting to see how these hybrids are received in these tough economic times.

Insight outsells Prius in Japan

10th Best Selling Car in Japan

In February, the Honda Insight outsold the Toyota Prius in Japan. Compared to last year, Prius sales are down 20 percent, however, many believe Prius sales will pickup once the third generation Prius is launched.

25,000 reasons to the hate the Fusion hybrid

The greatest car Ford doesn't really want to sell

The best hybrid ever. I've now heard numerous reporters, stock analysts and Ford fans claim the Fusion hybrid is the best hybrid ever made. More fuel efficient than the similarly sized Toyota Camry hybrid and funner than the Prius.

Whatever.

If the Fusion hybrid is better than the Prius, then why isn't Ford going to even try to outsell the Prius, or even the Camry hybrid for that matter?

Why is Ford only going to sell 25,000 units of the greatest hybrid ever made according to so many?

Even in this horrible auto market the Prius is on pace for over 3 times that sales output. However, when the 2010 Prius goes on sale next month, that output is certain to increase.

Unfortunately, until Ford gets serious about developing battery supply chains for its hybrid vehicles, Ford's hybrids are pretty much irrelevant. Having a great car that no one can buy really isn't that great, is it?

Why doesn't the Prius qualify for a tax credit?

Too much pressure on US automakers?

Why doesn't the Toyota Prius qualify for a tax credit? Why not the Honda Insight?

If it were the Ford Prius that was today's king of hybrid cars, would the government have extended tax credits on such vehicles long ago?

Today, automakers use EVs as an excuse not to build hybrids much in the same way they once used fuel cells. Certainly, EVs are more realistic than fuel cells, but they still haven't been proven reliable and, more importantly, cost-effective, etc. And, even worse, a new study questions the entire cost-effectiveness of the Chevy Volt.

Besides, it will take decades to convert America's fleet into any type of more fuel efficient vehicles. Hybrids are a great solution today that could be converted into plug-in hybrids tomorrow - by American companies, such as A123Systems. Shouldn't we be doing everything we can today about energy efficiency today?

Is a Prius plant in America really so irrelevant?

Led by Prius, Toyota hybrid sales decline

7,232 units sold in February

Overall, for the month of February, Toyota new vehicle sales declined dramatically, although passenger car sales increased by 6.3 percent compared to last month. In terms of hybrid cars, however, the news was even worse - particularly for the Prius.

Overall, Toyota hybrid sales dropped from 11,876 units in January to 11,814 in February. The Toyota Prius went from 8,121 units in January, to 7,232 units in February.

Ironically, the Lexus RX400h hybrid saw an uptick in sales of 36.3 percent over last February.

New Prius: Is 50 mpg enough?

10 percent more efficient

Toyota is beginning to stage media briefings in preparation for its April launch, but really most of the key details are based around one simple stat: MPGs.

According to the EPA, the new Toyota Prius will achieve 49 mpg on the highway and 50 mpg in the city - a number that hypermilers will have little problem increasing.
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Of course, in addition to the increased fuel economy the new Prius will be a bit bigger and faster, while offering a number of other cool new features, such as solar-powered ventilation.

Still, the Prius is the king of hybrid cars because of its fuel economy. With an expected price increase on the new Prius coming, is a 10 percent increase in fuel economy enough?

4 Hybrids in CR's Best Values

Toyota is value

This year's Consumer Reports Best New Car Values includes a ton of Toyota autos, including 3 of its hybrids vehicles. The Prius, Camry hybrid and Highlander hybrid each made the list.

One other hybrid, the Honda Civic hybrid, also made the list.

Prius isn't just green, its a CR best new car value

And yet, will the critics ever shut up?

If there is a car that doesn't get any respect, except from those whom regularly drive one, it's the Toyota Prius. According to its critics, the Prius is the most un-enjoyable car to drive.

I guess that just depends on what you look for in a car.

If you're concerned about trivial details, such a "the total cost of ownership over five years, weighing fuel costs, maintenance and repairs, insurance costs, depreciation, financing rates and taxes against the purchase price of the vehicle," then the silly old Prius is the Best New Car Value according to Consumer Reports (more).

But what do they know?

What vehicles will save hybrid-less Detroit?

Hybrids, small cars or EVs?

OK, before I get started, I have to give Ford a few props. Ford has been selling about 25,000 hybrid cars per year for many years now. Soon, it will lift that production to about 50,000 hybrids per year.

Of course, that's nothing compared to Toyota's hybrid vehicle sales, and Ford has yet to directly challenge the Prius.

So, what vehicles will save Detroit, if not a Prius-fighter?

Well, it isn't going to be plug-in hybrids, such as the Chevy Volt, according to CNN. In the near term, such vehicles are "pricey and unprofitable" and mostly about "public relations and marketing benefits".

Likewise, small cars also aren't very profitable to US automakers, which Detroit builds purely for first time buyers whom later trade up for more profitable vehicles.

Yet, what if gas hovers around $3.00 or $4.00 for the next four years?

At such prices, fuel efficiency will matter, but it won't matter enough to push a majority of Americans into expensive PHEVS, for instance. They'd probably go smaller, or buy cheaper hybrids, such as the Honda Insight.

Again, however, this is a segment that US automakers seem not able to compete. So, what kinds of vehicles can guarantee the viability of Detroit without massive government assistance, especially amidst turbulent energy prices?

Prius plant in America - Do you care?

An American-made foreign oil dependency fighter?

Now that Toyota is offering buyouts for US workers and cutting pay for everyone, a new US plant to develop Prius hybrids - in America - appears dead.

Do you care? Many don't because it's a foreign company.

Yet, when the first Chevy Volt hits the street in 2010, it will be manufactured with an imported engine and an imported battery - the most critical component in the vehicle.

Do you care?

Couldn't having significant numbers of Toyota hybrid vehicles built in America help develop a US battery industry? Wouldn't that be a good thing?

Is this the time for nationalism, or the intelligent acceptance of the global economy?

Hybrid sales tank in January, but...

Prius sales down 28.6 percent

Sales of hybrid cars, like all vehicles, were hammered in January, down 31.2 percent according to GCC. Yet, it might not be as bad as it seems.

Sales of passenger cars dropped 36.3 percent. So relative to the overall market, sales of hybrid vehicles seem to be stabilizing to some extent.

Still, that stabilizing trend was completely based upon the Toyota Prius. Sales of all other hybrids dropped much more than the Prius.

Unimpressive plug-in Prius results?

Is plugging it in worth it?

In "real world" driving, Toyota plug-in Prius testers are achieving about 65 mpg when driving exactly as they would in a conventional Prius.

According to Bill Reinert, Toyota Motor Sales, the way you drive has a far bigger effect on plug-in hybrids compared to conventional hybrid cars. "That difference is just magnified, supercharged, turbocharged with a plug-in electric because how fast you go really pulls the current out of the battery. It is a big deal."

The 2010 Toyota Prius, on the other hand, is supposed to achieve about 50 mpg in real world driving.

Is such a small gain worth the effort?

Obviously, for those with a soft foot, or those whom drive solely in urban traffic, a plug-in Prius might offer significant gains above 65 mpg. So, pricing will be key.

Still, if the new tax credit for plug-in hybrids makes a plug-in Prius the same prices as a non-plug-in Prius, the plug-in version could be a steal.

A few less amps in the Volt?

It'll be a winner, but when?

I'm a big fan of the Chevy Volt. I think it's one of GM's most interesting projects in decades. Unfortunately, that isn't necessarily saying much. Yet, while the Volt has great potential, I still cannot help but ask when will the Volt be a real game changer, because it certainly isn't in late 2010 when the vehicle launches.

GM has been pretty frank about the fact that the Volt isn't going to be rolling off production lines by the thousands every month in 2011. In fact, in 2011, GM might only make a few 1,000 Volts. 100,000 Volts per year is easily five years away, perhaps even much longer.

Yesterday, Frank Weber, a Flex Drive executive wrote "The Opel Ampera and Chevrolet Volt are production programs designed to meet the needs of thousands of customers, not a modified production vehicle for fleet or demo drives. "

Is the key word from that statement "thousands" of customers?

Without doubt, the Volt is an essential piece of GM's future, but is it really enough today if Obama's green revolution takes hold amidst stable gas prices? With California's EPA waiver?

The Volt should never have been an excuse not to challenge the Toyota Prius directly as soon as possible, and that decision, I bet, is going to come back and bite GM's bottom line - if it hasn't already.

Dump Detroit if they can't compete with the Prius

How can Detroit compete in the future without a Prius-contender?

President Barack Obama and Democrats in Congress have some new and refreshing ideas for America. To fight foreign oil dependency and global warming - while creating jobs - Democrats are proposing huge investments in cost-inefficient green technologies often built by inefficient companies.

To make these green technologies more cost-effective, many - including this blogger - have suggested a gas tax. Thus far, however, President Obama has been against the idea. In these economic times, it's hard to blame him for such a stance. Still, eventually, some tough decisions must be made.

US automakers are struggling just to survive and if US auto sales don't pick up next year, it's going to be hard for these automakers to survive without a massive bailout. As a result, many are suggesting tax incentives for the consumers of US-made vehicles - most of which are gas-guzzlers. That's not very green.

Yet, this is the conundrum Obama and Democrats must manage. Is it really worth it to create a false market based upon gas-guzzler sales? Maybe the reality is, is that Americans are going to be purchasing less cars. That could be the new automotive reality, and there have been a few studies suggesting that America's love affair with the car is over.

Even more important, there is a good chance that California will soon be regulating its own emissions standards. That means vehicles like the Toyota Prius and the Honda Insight might quickly become the best selling vehicles in California, and as many as 17 other states. Yet, what will Detroit automakers sell? They have few, if any, hot, fuel efficient models.

Some will undoubtedly claim that GM can sell the Chevy Volt, for instance. Well, GM probably won't be selling many Volts by 2016 when California's 30 percent reduction goes into effect. And, even if GM can increase production, the Insight will cost $20,000, the Volt $40,000. Can the Volt really be enough, especially if gas prices don't increase drastically?

Even Ford, with its new hybrid technology, still doesn't have a Prius-contender. While its new Ford Fusion hybrid is compelling, why is Ford only planning to make 25,000 of these hybrid vehicles? More important, if you're rolling out a new hybrid drive, why would you not challenge the standard, the Prius, as Honda did? Can you not compete?

By 2016, when California emission standards go live, Toyota could be selling a million hybrids per year, a majority of them Prius hybrids, yet Detroit might not yet have a competitive - in terms of technology AND costs - product. Can you really bank on Detroit in that reality?

Honda ready to challenge Toyota's hybrid crown?

The smartest hybrid yet?

In a MSNBC article this morning, Dan Carney calls the Honda Insight the "best intersection yet of the plots for price, efficiency and practicality," at least in terms of hybrid cars.

And, ultimately, I have to agree. Yet, it's never that simple, is it?

I live in a congested, Northeast LA neighborhood. City fuel economy is really the only thing that matters to me, and I've learned that Toyota's Hybrid Synergy Drive is capable of much more than what the EPA predicts, especially, ironically, in the worst congestion imaginable - exactly the kind of traffic many of us Angelenos know all too well.

Nonetheless, I've always thought that Toyota should strive to decrease the price of its hybrids, or least offer a very cheap hybrid model, and Toyota has talked about such an offering in various forms. Then the gas crisis hit and all bets were off.

Today, with gas prices and oil prices falling, the Toyota Prius doesn't seem like as much of a deal as it did several months ago, especially if you don't live in a congested neighborhood, such as mine. That makes the Insight seem like a much better deal, and, today, when all factors are considered, the Insight might be the best hybrid available or soon to be available.

Higher gas prices, however, could quickly change that advantage, as could many other factors.

Ultimately, I don't really care which is the best hybrid today, I only care that, finally, there is real competition heating up in the hybrid space. Even more important, the competition isn't being driven only by fuel economy, but also pricing.

2nd Gen and 3rd Gen Prius will both be available for sale

The cheaper Prius?

New reports indicate that Toyota is planning to keep selling the current Prius, based on the second generation Hybrid Synergy Drive, as it also starts selling the third generation Prius. The current Prius, according to these reports, will be sold as a cheaper Prius, perhaps offering even less amenities as a base Prius.

Hard to wonder if this has always been Toyota's plan, or if Honda has rattled Toyota's hybrid thinking. With cheap gas and a weak economy, cheap hybrid cars seem like the much better deal, which is exactly where Honda has positioned its new Insight.

Should Obama save the Big 3 at any cost?

25,000 per year for years now

Last night I was watching an interesting NOVA program called The Big Energy Gamble and how AB 32 is going to drastically change the auto market in California. Essentially, if California moves forward with AB 32, automakers will need to sell many millions of hybrid cars or EVs in California alone, in order to meet CO2 emissions requirements.

And, there are many states considering similar laws if California's continues to move forward.

Toyota, the king of hybrid cars, is well on its way to helping California meet its goals, and Honda is ramping up its hybrid production as well, although even Honda has some serious work ahead.

The Big 3, on the other hand, seem pathetically far behind. Possibly, Ford has some plans, but as the automaker has only been able to make 25,000 Escape hybrids per year, and has the same 25,000 cap for the Fusion hybrid, I have some serious worries. Sadly, GM and Chrysler seem even further behind.

Yet, as the bailout deadline approaches, the UAW is already calling on Obama for help. If this were the end of all bailout talk, a little extension wouldn't be a bad idea, but this is just the beginning.

GM's latest prediction for 2009 auto sales, for example, is even worse than 2008. According to Big 3 Congressional bailout testimony, GM's prediction for 2009 is unsustainable if it continues for a few years, regardless of any bailout money. UNSUSTAINABLE. The auto industry, as we know it today, would collapse.

Even if things get better, the Big 3 are still in no position to make a serious stab at fuel economy, especially if the requirement is as aggressive as AB32 - something Obama has supported. According to an economist from Moody's during Congressional testimony on the bailout, the US auto industry will need about 100 billion over the next few years just to survive.

How much more it take to make the Big 3 green?

Not one of the Big 3 has yet developed a cheap hybrid to challenge the Prius. Do they really believe that millions of Americans are going to be able to afford $40,000 Volts in five years? Will GM even be making 100,000 Volts per year by then?

President Obama's plans for an energy moon shot should move forward, and I'm sure it will, but should our moon shot be limited to the Big 3's ability to make it happen? Might it not be better, for instance, for the government to regulate standards and requirements, put all incentives in the hands of consumers, and let ALL automakers COMPETE for consumers, even if it means the UAW loses 1/2 its workforce because its products don't compete?

Or, should Obama save the Big 3 at any and all costs and make the Big 3 essential to our moon shot?

Chevy Volt: The greatest marketing gimmick ever?

Never put off until tomorrow what can be done today

A few years ago, a rumor began to hit the blogosphere about a new vehicle that GM was developing that would leapfrog the Toyota Prius. At that time, as a perpetual critic of GM, I stated that if true, I would become that technology's biggest advocate.

Not long after, GM took me at my word and invited me to the debut of the original Chevy Volt concept at NAIAS. Since then, GM has invited me to numerous press events focused around the Volt, and I've interviewed most major members of the Volt team - a great, passionate and totally committed team.

I've also been around a number of Bob Lutz interviews - group interviews - but I've only been able to ask him one question: Why not directly take on the Prius as the Volt is developed? Lutz, a Prius-hater, wondered why GM would waste its time on such a task and confirmed that the dual mode hybrid technology that GM was putting into SUVs was never intended for small cars (more).

I've never agreed with Lutz and GM on this point, and it's been my major criticism of the Volt - it's not doing enough soon enough. I also don't agree that the Volt is really a Prius-contender, perhaps a plug-in Prius contender, but not a Prius contender.

Now that it has become clear that GM never intended the Volt to be a real world game changer until the later part of the next decade, even as late as 2020, I feel a bit enraged. Not so much about the Volt - it's been pretty obvious that the Volt wouldn't be a significant product until at least 2015 for several months now.

What enrages me is that GM assumed that marketing alone was enough to fight the Prius until technology caught up to the Volt. Instead of diverting a few hundred million of its yearly multibillion dollar advertising budget away from gas-guzzling SUVs to develop a fuel efficient Prius-contender, GM decided more marketing was enough.

Before the Volt debut, Bob Lutz regularly called the Prius a joke and a marketing gimmick. Perhaps the Prius is nothing but a marketing gimmick along the way to electrification, but at least it is a real product widely available for sale - a product that has achieved sales of more than a million very efficient vehicles.

The Volt is still almost two years away from very, very limited sales, and the Volt won't achieve today's Prius sales for at least another decade. If that isn't the ultimate "marketing gimmick", I don't know what is.

Certainly, the Volt is still game-changing technology, but I think there is a real danger of the Volt being too many eggs in one basket. More important, while GM can talk about a gas tax, the reality is that a gas price spike could be just around the corner. If such a spike happens in the next couple of years, all the marketing hype behind the Volt won't help GM one bit nor will 10,000 Volts per year, however, a direct Prius-contender could.

New 2010 Toyota Prius underwhelming?

Nice, but....

For a few years now, there has been a ton of hype regarding the 3rd generation Toyota Prius. Most of that hype originally focused on the use of lithium as a replacement to NiMH as the battery of choice in the Hybrid Synergy Drive. Such a battery, many believed, would dramatically increase the fuel economy of the Prius.

Unfortunately, any possibility of lithium, at least initially, was ruled out, officially, by Toyota many months ago.

However, Toyota did confirm that the new Prius would be bigger, faster, more fuel efficient, etc., and Toyota backed up that claim today with the debut of the 2010 Toyota Prius.

50 mpg combined, rather than its current 46. Faster and sportier with its larger 1.8 liter 4-banger, which actually helps improve highway fuel economy.

Yet, don't most people buy the Prius for its city fuel economy? If much of this combined improvement in fuel efficiency is attributed to highway conditions, then is city fuel economy relatively unchanged?

Nonetheless, the Prius offers many, many new details and features (check out comments), but if those features ensure a higher price, are they worth it? With more competition in the hybrid market place, is this new Prius enough? Is it the right approach? Is Toyota now dragging its feet a little - too far ahead of the competition to be profitable?

I'm no economist, but if you want to establish hybrid dominance, isn't cheap and as fuel efficient as possible the path? The only features most care about, at least in terms of hybrid vehicles?

Did Toyota nail it with the 3rd gen Prius, or is it a bit underwhelming?

The Volt will kick EV1 ass

Let's get real folks

I've pretty much had it with the EV1, GM killed the electric car, folks.

Did GM kill the electric car? Shut up.

Every automaker is working on an electric car today. No one killed the electric car. Cheap gas, however, delayed the emergence of the electric car.

Did GM screw up the EV1 program? Absolutely, but without much higher gas prices, how many EV1's could GM really have sold, especially if they sold them at real world cost? Honestly, 5 years ago, how many would have paid $40,000+ for a two-seat vehicle with 100 mile range and 6 hour charge requirements?

Certainly, some would have, but the EV1 would never have achieved the economies of scale to achieve profitability. NEVER. And, for GM haters, even Toyota has publicly stated that it could never achieve profitability on NiMH-powered EVs.

Nonetheless, could GM have parlayed the EV1 into 10,000 units a year and lots of positive green press? Yes. But, what would that have really changed? Ultimately, it would have just greenwashed the fact that gas-guzzlers were still GM's bread and butter.

If GM made a big mistake, in my opinion, it was that it didn't convert its EV1 experience into a Prius-like hybrid to help further develop battery technology while addressing fuel economy immediately. Yet, how much would a Prius-like hybrid have really helped GM? After 10 years of Prius production, it is unlikely that Toyota has yet recovered its total Prius investment.

Does that absolve GM's mistakes? Hell no, but let's keep some perspective people.

And, most important, the EV1 DOES NOT prove that NiMH batteries could now be powering the Chevy Volt. The EV1 had 100 miles of range, then required a 6 hour charge. The Chevy Volt, when not powered by grid electricity, uses electricity created by on-board generator. That means the Volt might go 500 miles without stopping, plugging into the grid, etc. Yet, for that entire 500 miles, the Volt will be relying on its battery pack as electricity always powers the Volt.

When did the EV1 ever go 500 miles without multiple charges? That's right, never. Not even close.

Inevitably, the battery requirements of the Volt and the EV1 are vastly different - it's apples to oranges - especially when you're going to offer a 10 year warranty on the battery pack.

Furthermore, as a consumer, if you could buy a 100 mile range EV1 for the same price as a Volt with unlimited range, which would you buy?

Yet, if gas prices are below $3.00, even the Volt won't really help GM much, and full electrification will still be decades away. So, if you want to get angry about the killing of the electric car, get mad at GM's lobbyists. Get made at your Congressperson. And, if you want to get really crazy, tell your representatives in Washington that you want higher gas taxes.

Prius sales down 45 percent in December

The good ole days, at least for hybrid sellers

Change. Talk about what a difference a few months makes.

Just six months, you couldn't find a Toyota Prius on a dealer lot. In December, however, Prius sales fell 45 percent according to the AP. But it isn't just hybrid cars that are getting hit hard, but fuel efficiency in general, as Toyota and Honda posted bigger sales declines than their US competitors.

Hybrid sales crushed today?

Plenty of supply now

Hybrid cars and electric vehicles. They are the future, right?

Sure, I think even hybrid haters accept the reality of the electrification of the automobile, but when will the majority of vehicles sold in America be electric?

Not for decades, at least in America, if fuel prices don't rise significantly. Instead, for decades, such vehicles will be a minor niche.

In November, hybrid sales were down 50 percent, as trucks and SUVs regained some market share. How bad will sales be this month when automakers release their monthly sales? I don't know, but I drove by my local Toyota dealer yesterday. With dozens of Prius hybrids on the lot, an even bigger crash in hybrid sales wouldn't be surprising.

A few 2010 Toyota Prius details

Blue man group hypes the Prius

There is a YouTube video featuring the Blue Man Group and the new Toyota Prius. The video isn't terribly exciting, but if you are wondering what new features the third generation Prius will offer, the video does provide some insight. I think it looks great, but I don't think Toyota is striving to sell the cheapest hybrid. And, ultimately, the Prius is still about fuel economy, so the EPA's new rating might be what most are waiting to learn.

How far will hybrid sales decline in 2009?

Not the year of the hybrid

Six months ago, one might have speculated that 2009 would be the year that hybrid cars forever changed the auto industry. It's not just that hybrids were selling for thousands above MSRP six months ago thanks to high gas prices, but that 2009 would also see the launch of the new Honda Insight and the third generation Toyota Prius.

Yet, as we head into 2009 the hype around these two significant hybrid launches has been squashed. In fact, I wouldn't be surprised to see Toyota push back the launch of the new Prius until as close to 2010 as possible.

With a crappy economy and falling gas prices, hybrid sales appear on track for a record year in 2009. Unfortunately, the record will be for biggest year-to-year sales decline.

$1.66 gas to fuel hybrid bargains

Happy days for hybrid shoppers

Hybrid sales were down 50 percent in November, and they will probably be about the same in December. Likewise, gasoline prices are now averaging $1.66 per gallon. So, aside from economic problems, one can only assume gas prices are significantly contributing to the hybrid sales slide.

Yet, 2009 will see a number of new hybrid cars hitting the road, such as the Honda Insight and the third generation Toyota Prius. Hence, supply glut seems inevitable.

For shoppers of hybrid cars, happy days are coming.

Market uncertainty delays Toyota hybrid plant

Not to be built in America anytime soon

Sales of hybrid cars, just like conventional vehicles, are tanking. Add in a significant decline in gas prices, and declining hybrid interest shouldn't surprise anyone. Thus, Toyota will delay the launch of a new US factory to build the Toyota Prius.

Will the Big 3 ever top the Prius?

The poster child of fuel economy

I'm an advocate for the Chevy Volt. The Volt and, more important, the E Flex Drive powering the Volt, demonstrate that GM is preparing for the future.

Unfortunately, however, 100,000 Volts per year is still many years away. In fact, even though the 3rd generation of the Toyota Prius is set to launch next year, Toyota will probably be rolling out the 4th generation Prius by the time GM is ready to start producing 100,000 Volts per year. By then the Hybrid Synergy Drive powering the Prius will be vastly different than today's version.

Which will be better? Which will be more cost-effective?

On the other hand, Chrysler....well, I don't even know what to say about Chrysler.

Fortunately, Ford's new hybrid powertrain represents some hope, and early Fusion hybrid reports indicate that Ford has a hit on its hands, maybe. With plans to only produce 25,000 Fusion hybrids next year, it's hard not to be a bit concerned. Likewise, why didn't Ford roll out its new hybrid powertrain in a unique, hybrid-only vehicle? Thus, I cannot help but wonder if Ford's new hybrid powertrain is cost-effective, for instance. Still, Ford is a wild card.

So, will the Big 3 ever top the Prius? I don't know, but if it does happen, it won't be any time soon.

Hybrid cars market fading

No more markups

A few weeks ago I posted as story about Toyota Prius discounts that I had noticed in the LATimes - one of the hottest markets for hybrid cars.

Considering the economy, such discounts shouldn't be surprising, especially with gas prices declining on a daily basis. In fact, November Prius sales were almost half of what they were the previous year.

Data from Cars.com also indicates a slow down in Prius demand. However, the data also seems to indicate that Toyota's supply of hybrids is also down.

Nonetheless, there is no doubt that demand for hybrid cars is fading. If gas prices remain low for a few years, isn't it inevitable that automakers will slow their push towards such vehicles?

GM's plans for the bailout money, for the future

Hard to get excited about hybrids like the Tahoe

Just checked out a video that GM is using to trump up support for the bailout of the US auto industry, something I already support, although tentatively. Yet, this video demonstrates the problem with the Big 3 and with GM. Too much tomorrow. The next big thing, such as the Chevy Volt, is never here today, it's always tomorrow.

No doubt, quality at GM has improved greatly over the years, and massive restructuring has been achieved and more is forthcoming. Cars like the Malibu are solid winners. And, next year, GM will have 9 hybrid cars available for sale, far more than anyone else. Yet, will any of them ever sell at least 50,000 units per year?

And, as exciting as the Chevy Volt is, it will still lag far behind Toyota Prius sales for at least another decade. In fact, while the Volt will be a game changer, it probably won't hit its game-changing stride until close to 2020. By then, it might not be quite as unique as it is today.

The Chevy Volt might be the best green vehicle selling at least 100,000 units per year in 2016, but America, at least those doubting GM, want to see GM challenge the Prius with a vehicle that can sell 100,000 units today.

Carpe diem, GM. Carpe diem.

$1.00 gas by early 2009

When will these levels return?

CNBC just reported that the Gulf Oil CEO believes that a gallon of gas could drop to just $1.00 per gallon by early 2009. Part of the OPEC conspiracy?

If car buyers return, will demand for hybrid cars, such as the Toyota Prius, remain as high if gas hits $1.00 per gallon? Is that a stupid question? Or, are Americans that stupid?

A Better Place than the Volt?

So yesterday?

It's 2016 and you need a new car. Now, you aren't rich. You're middle, middle class and living paycheck to paycheck. You really like the Chevy Volt, but all the consumer tax credits have been consumed, and the upfront costs are just too much. The new Toyota Prius, on the other hand, costs $10,000 less than the Volt, but skyrocketing gasoline prices mean even the fuel efficiency of hybrid cars might not be enough to save you from serious pump pain.

So, instead you buy a Prius-sized electric vehicle from one of Better Place's partners that not only costs several thousand less than the Prius, but your monthly fees for battery and charging are a third the cost of what you'd pay in monthly gas bills.

And, even if you have to take a few long trips that push you beyond Better Place's range, it would still be far cheaper to rent a Prius on those special occasions.

Seems a bit far-fetched, but the way Better Place keeps inking deals, I'm starting to believe that maybe it's possible. Maybe it isn't car makers that are critical to the future, but rather battery and infrastructure companies. And, maybe that future is closer than we think.

Too much hope built on hybrids?

Not another fuel cell vehicle

The hydrogen economy. For decades that was Detroit's mantra. Why worry about trying to increase fuel economy when gas was cheap and fuel cell vehicles were just around the corner, they argued. After decades of delays, the success of the Toyota Prius, and battery development breakthroughs, most have come to favor the plug-in revolution, rather than the hydrogen revolution. While hydrogen might make sense one day, battery-powered electrification makes more sense today.

But does plug-in electrification make enough sense today?

No one has yet proven that the safe, reliable and cost-effective mass production of battery technology for plug-ins is viable. Likewise, most lithium is mined in only a few places in the world, and there is much potential for supply and demand conflicts. Current NiMH technology, found in today's hybrid vehicles, is even more problematic for wide scale adoption.

None of this should be used as an excuse to limit efforts towards electrification. However, it does beg the question of whether electrification is enough, at least for today. Hence, isn't a push towards much smaller and lighter vehicles, for instance, also very important? Ultimately, shouldn't the revolution of the automobile be about much more than just what powers an automobile?

Another dual mode dud?

The Saturn Vue hybrid at the LA Auto Show

Several years ago, as the Toyota Prius was making hybrid cars synonymous with green in America, GM and Chrsyler decided to act. Instead of challenging the Prius, however, these two US automakers decided to convert GM's hybrid technology developed for buses into a hybrid powertrain that would turn the worst gas-guzzlers into something more respectable.

Many quickly called the technology superior to Toyota's Hybrid Synergy Drive, while claiming it focused on the most fuel inefficient vehicles. I always wondered, how much is it going to cost and how many people really need those gas-guzzlers?

Today, we've found out most people don't really need those guzzlers and the costs of making them more efficient are just too high. Thus, Chrysler's dual mode hybrid vehicles were DOA, and GM's aren't far behind - at least their initial dual mode hybrids.

The Saturn Vue hybrid, due out in a few months, however, is a much smarter sized SUV for today's world and it easily provides the best sale's potential of any GM hybrid, at least if priced competitively. But, now that Saturn is potentially on GM's chopping block, is it DOA as well?

3rd Gen Prius will NEVER use lithium?

NiMH-only until fourth gen Prius?

Due to costs and reliability concerns, Toyota has decided that the third generation Prius will never use lithium-ion batteries during its lifetime. Instead, the third generation of the Hybrid Synergy Drive will continue to use NiMH batteries - at least for the Prius - until at least the fourth generation Prius according to an unconfirmed report.

Toyota, according to the report, still plans to use lithium in the future. Also, Toyota has hinted at the possibility of lithium-powered Lexus hybrid vehicles. Thus, considering the production increases expected for the 2010 Prius, perhaps it's just not the right platform to validate lithium technology.

Bailout: What would sell you?

Build more hybrids?

If there is one thing that has annoyed me with the US auto industry more than anything the last 5 years, it's been the lack of hybrid cars, especially a Prius-fighter. Even GM's Chevy Volt really isn't a Prius-fighter. For many more years, there is going to be a need for both conventional hybrids and plug-in vehicles. Yet, I've still not heard of a plan from one US automaker to directly challenge the Toyota Prius.

Would a detailed plan to build more hybrid vehicles, in addition to plug-ins, sell you on an automaker bailout? What else would it take? Serious cuts in executive compensation? Serious cuts it UAW benefits?

What would sell you on the legitimacy of a bailout, or a bridge loan, for US automakers? Can anything sell you?

LA Auto Show - Volt still shines brightly

Still the green standard

GM debuted the Chevy Volt almost 2 years ago, yet it is still the green standard when it comes to Auto Shows. Sure, there are some pretty cool fuel cell vehicles out there, but PHEVs and EVs are much more realistic in the short to mid-term. In that segment, the Volt still stands above the rest.

Still, the competition is heating up. The Mini E, the Honda Insight and Hyundia's Hybrid Blue Drive were new developments at the LA Auto Show this year. And the competition will heat up even more at the Detroit Show in January when Toyota debuts the Third Generation Prius.

Plus, Hyundai, Honda and Toyota are seeking to challenge the Volt with much cheaper, conventional hybrid cars. Of course, Hyundai and Toyota will also challenge the Volt directly. Will GM ever challenge the Prius and Insight directly?

With two years before the Volt hits the streets, it seems obvious the competition will heat up even more. Will the Volt still dominate next year's LA Auto Show?

Toyota's natural gas hybrid: Going nowhere fast?

Just an auto show filler?

Let's be honest. When it comes to Toyota and hybrid cars, it's all about the Prius, especially when the third generation Prius is just months from making its North American debut.

In the past couple of years, Toyota has used the green-focused LA Auto Show to, well, show off its new gas-guzzlers, such as the Sequoia.

This year, Toyota will show off its Camry natural gas hybrid. Yet, under the Obama administration, does natural gas mean anything? Is this hybrid even less valuable the Sequoia?

Bailout automakers to save the Chevy Volt? No.

The Volt is not the reason to bailout GM

Today, Toyota makes a profit on all of its hybrid cars, thanks to the Prius. Yet, not one US automaker has developed a Prius-contender.

Rather than challenge the Toyota Prius directly, GM conceptualized a product to leapfrog Toyota - a perfect marketing coupe. Essentially, GM could claim that they didn't need to develop a car like the Prius because the Chevy Volt would be so much better than the Prius. This then gave GM time to keep rolling out gas-guzzlers as the technology caught up to the Volt concept.

Some have forgiven all of GM's past wrongs because of the Volt, and even believe that the entire US auto industry should be bailed out to protect the Volt. Yet, when will the Volt be profitable? When will GM be able to produce even 100,000 Volts per year? 5 years? 10 years?

More important, within 5 years, there is every reason to believe that numerous automakers might have products just as exciting as the Volt, even better than the Volt. Recently, even lowly Chrysler showed that they aren't that far behind the Volt.

Bailing out automakers solely for the Chevy Volt would the same kind of ignorance and denial that has put GM and the rest of the Big 3 in need of a bailout. A bailout MUST be about far, far more than the Volt.

Prius markups? Yeah right. It's incentive time

$1,000 off MSRP

Just came accross an ad for the Toyota Prius offering $1,000 off MSRP here in Southern California - a far cry from the $5,000 + that some dealers were adding onto MSRP this summer.

If you believe that falling gas prices are just the calm before the storm, or you just want to do your part to fight global warming or foreign oil dependency, finding a good deal on a hybrid is getting easier. And, it's going to get even easier.

Competition in the hybrid cars segment will increase significantly in 2009, especially with the launch of the Honda Insight hybrid. Additionally, Toyota has promised a significant increase in Prius production.

2010 Prius production slow down?

US Prius production on hold?

CNBC just reported that there is an unconfirmed story coming out of Japan that Toyota is putting plans for its Tupelo, MS plant on hold. Now, before you say, the 2010 Toyota Prius is supposed to be built in Blue Springs, MS, not Tupelo, recognize that Blue Springs is a tiny Mississippi town just a few miles outside of Tupelo.

Obviously, Toyota can still produce quite a lot of Prius hybrids without any US production, but Toyota had planned a huge production increase with the launch of the third gen. Prius. Is that increase possible without the new plant?

Sketches of new Lexus and 2011 Camry hybrids?

The Lexus HS250h

Here is a shot of the Lexus HS250h from Mag-X that some are speculating will be the new Lexus hybrid set to debut at NAIAS 2009 in January. According to VW Vortex the new Lexus hybrid will utilize the same 2.4 liter engine currently found in the Toyota Camry hybrid.


The 2011 Toyota Camry?

Likewise, here is a picture of the 2011 Toyota Camry hybrid that is expected to utilize the same third generation Hybrid Synergy Drive set to debut in the 2010 Toyota Prius, except the new Camry hybrid will move up to a 2.5 liter engine.

Similar to the third gen. Prius, the new Camry hybrid is expected to offer better performance and fuel economy.

Gas prices - Why strings MUST be attached to any bailout

Detroit still far behind the Prius

Pop open the bubbly, ladies and gentlemen, it's party time. In 4 states gas has fallen below $2.00 per gallon. On Wall Street, the overwhelming consensus is $50 oil before $65.

But, is that a good thing?

When gas was $2.00 US automakers laughed at the Toyota Prius. Today, the Prius has already sold more than 1,000,000 Prius hybrid cars, yet there won't be one US made Prius-contender on the road until late 2010 with the Chevy Volt. Moreover, GM probably won't be selling the 100,000 Volts per year until at least 2014.

Fortunately, if gas prices remain low, America's gas-guzzling will decline thanks to CAFE, but CAFE regulations won't be strong enough to end foreign oil dependency. Unfortunately, as history as proven, US automakers will simply do as much as needed to achieve CAFE, and when foreign oil dependency again rears its ugly head, America will again be unprepared.

Thus, a bailout must include strings.

Smaller Prius Coupe closer to reality

Honda's hybrid coupe

For some time Toyota has been discussing Prius derivatives - both larger and smaller than the current the Prius. A smaller Prius coupe is now close to becoming a reality, according to MotorTrend, which also offers a sketch of the vehicle. Few details, other than the sketch, are yet available, but the Prius coupe is expected to utilize the same HSD as the soon-to-be-released 2010 Prius.

Are Toyota's hybrid plans recession proof?

Set for launch late next year?

Last month, Toyota Prius sales were down 10 percent. Not bad, considering that October was one of the worst months ever in auto sales. And, while hybrid cars have helped Toyota's sales strength the last few years, this recession is greatly hurting Toyota.

"At least there's no red ink at the moment. But if the situation deteriorates we could be looking at that," said Ashvin Chotai, managing director of Intelligence Automotive Asia reports the AFP.

Thus, "Planned factories, existing facilities, new projects; they [Toyota] are reviewing all of them," said Toyota executive vice president Mitsuo Kinoshita.

If US auto buyers can't afford anything but the cheapest cars, amidst declining gas prices, hybrid sales will take a hit. Such a hit, I'll bet, could easily delay the launch of the 2010 Toyota Prius few months, and slow the launch of any consumer-orientated plug-in hybrids from Toyota as well. And that new Lexus hybrid? Why be in a rush when Lexus hybrid sales got hammered last month?

Hybrid sales down, market share up

Prius sales down 10.3%

October sales of hybrid cars were down 10 percent by volume compared to last year, however, hybrid market share has increased compared to last year according to GreenCarCongress. So, while all car sales are down, hybrids are selling much better than non-hybrids.

All things considered, Toyota Prius sales are still very strong. Can this trend continue if the economy keeps tanking?

Prius hate at Edmunds simply retarded

All about advertising?

Where should you go for unbiased information about your next car purchase? Not Edmunds.com. At least, that's all I can assume from the latest anti-Toyota Prius drivel from the Straightline blog which is featuring Prius crash tests this morning.

"I admit it. There's no car I enjoy seeing wrecked more than the Toyota Prius," the writer explains to justify this piece of journalistic genius and then concludes, "I'm all for crash testing every Prius."

If you hate hybrid cars,  but love editors focused on driving advertising dollars, Edmunds should be your news source.

2010 Toyota Prius - Hot new details

Not! And don't expect any until January

There was a rumor coming out of England that Toyota planned to sell both the current version of the Toyota Prius and the third generation Toyota Prius concurrently. The current version, according to the rumor, would be sold at a discount to fight off the Honda Insight.

Apparently, however, that rumor is just a rumor. "We haven't heard anything like that here — nothing whatsoever," Toyota spokesman Curt McAllister told Inside Line on Wednesday.

Additionally, McAllister said not to expect any further details regarding the 2010 Prius until the Detroit Auto Show.

A123Systems and the perfect hybrid battery

Made in America

About a month ago, when Chrysler announced its new plug-in vehicles, it seemed hard to believe that Chrysler might be as close to plug-ins as GM and the Chevy Volt. But there are now a few tantalizing details about the batteries powering Chrysler's ENVI, or electric drive initiative, vehicles that should spark any hybrid fan's interest.

Chrysler's batteries were developed in coordination with GE under a DOE grant, and the batteries took a slightly different path than other lithium batteries, using two chemistry's rather than one - one for power and one for energy.

Along with $55 million dollars, GCG is reporting GE has also conveyed this battery research to A123Systems, a company of which GE now owns 9 percent. Aside from providing batteries for many Toyota Prius conversions, A123 also developed lithium batteries for Volt testing.

This dual lithium chemistry could be the key to the widespread concerns regarding lithium longevity, especially in hybrid cars. Hopefully, this isn't just pre-IPO hype.

Why city fuel economy doesn't matter

Because denial requires commitment

Several weeks ago at GM's Centennial, GM's technology guru, Larry Burns, discussed transportation studies that demonstrated the future for world transportation is slow, congested driving. Already, congestion is a huge American problem, and the idea of the open highway as the average commute has been a work of fiction for decades.

Yet, the auto industry - makers and press - are still fixated on highway fuel economy. Why? Ignorance? Denial?

The two-seat Smart Car, for instance, achieves 33 mpg on the EPA's city cycle. Even hybrid SUVs, such as the Ford Escape hybrid, do better than the tiny Smart Car at 34 mpg. The 5 passenger Toyota Prius achieves 48 mpg on the city cycle. Yet, hybrid cars are so over-rated?

Denial won't make foreign oil dependency go away, nor will 33 mpg.

1,000,000 hybrids per year - Can Toyota do it next decade?

Is the third generation Prius enough?

Several years ago, Toyota told the world that it planned to sell 1,000,000 hybrid vehicles per year early in the next decade. Many auto analysts and auto execs on this side of the Pacific thought they'd never sell a million hybrids combined, ever.

Today, those critics have egg on their face.

Still, with a severe recession and declining gas prices facing much of the world, this goal isn't going to be easy to achieve. So, what will it take?

Is the third generation Toyota Prius enough? Or, will it take another hot, unique as the Prius, hybrid only model? A smaller, cheaper hybrid? A plug-in Prius? All of the above?

I say it's the later, but sales of 1,000,000 hybrid vehicles per year will mostly come down to one thing, in my opinion: cost. Toyota must breach $20,000 with one of its hybrid cars to achieve sales of 1,000,000 hybrids per year.

Diesel v hybrids at an EPA glance

The EPA's top pick for 2009

I've been ill the last several days, so when I saw the EPA's Top 10 Most Fuel Efficient Vehicles List last week, I just wasn't very surprised or excited. Hybrids still dominate, especially in the city. Since, however, I've read a few articles noting the significance of the first diesel making the list.

A manual VW Jetta TDI is rated 30 mpg in the city, 41 on the highway. The Toyota Prius is 48 and 45, respectively.

Many diesel fans regularly chide the whole hybrid cars segment as a fad, but when it comes to city driving it's clear, hybrids are easily superior.

In order the list goes: Toyota Prius, Honda Civic Hybrid, Nissan Altima hybrid, Ford Escape hybrid (and Mercury Mariner hybrid, Mazda Tribute hybrid), Smart ForTwo, Toyota Camry hybrid, VW Jetta Diesel Manual, VW Jetta Diesel Automatic, Toyota Yaris Manual, and the Toyota Yaris Automatic.

Foreign oil dependency: It's in the government's hands

Converting a Prius to a plug-in Prius

A lot of Toyota Prius drivers, as well as the owners of other hybrid cars, can't wait to be able to plug-in their hybrids. Plugging in significantly increases fuel economy and, therefore, significantly reduces both carbon and foreign oil footprints.

Sadly, however, all hybrid drivers combined make up a minuscule percentage of American drivers. Converting all of these drivers into plug-in hybrid drivers would have very little overall effect on either global warming or foreign oil dependency.

Many more need to be converted into hybrid vehicles and other fuel efficient technologies. FINISH: Foreign oil dependency - It's in the government's hands

Honda takes jab at Big 3 on fuel economy. Has anything changed?

Honda predicted gas-guzzler fade?

While calling loans to US automakers the right thing for the US government to do, Honda CEO Takeo Fukui blamed US automakers for many of their problems saying, "Their response (to fuel economy) was too slow," according to the DetroitNews.

Fukui also indicated that even though the large truck and SUV market was highly profitable at one time, Honda didn't invest much in that segment because the company didn't believe gas-guzzling was sustainably profitable.

Ironically, when Honda was making this decision, the Big 3 were, collectively, betting the farm on gas-guzzlers, even after events like 9/11.

Yet, even today, it is very distressing how little effort the Big 3 are putting into hybrid cars to challenge the Toyota Prius and the soon-to-be-released Honda Insight. Do hybrid cars not make sense to Detroit the same way that large SUVs and trucks made so much sense just a few years ago?