Over 90 Percent of Americans Are Changing the Way They Live Because of High Gas Prices

Even as oil prices reach a new high, it seems everyone wants to know how these huge changes are affecting US drivers. Mapquest hired a third party surveyor to conduct a survey on how gas prices were affecting their lives. 92% responded that gas prices were already forcing lifestyle changes.

MapQuest collaborated with DMS Research to conduct the survey. A National sample of 1,001 Internet users (age 18+). Interviews were collected from June 5 - 11, 2008.

High Gas Prices are Forcing a Change in Every Day Life
63% said gas prices are already having a significant impact on their life.
80% are forfeiting day-to-day activities and changing their spending habits62% are eating out less
46% are shopping less, enjoying less entertainment or going to coffee houses

High Gas Prices are Forcing People to Drive Differently 
82% are making a conscious effort to drive less
57% are planning routes more carefully
31% are only filling gas tanks partially
24% are walking or biking more
24% are turning to the internet to search for cheap gas prices

Americans Are Going Into Debt to Fill Up
76% say gas purchases are increasing their overall debt

Travel Plans Are Being Changed
58% are the most concerned with cost of gas vs airplane ticket fare.66% of consumers say gas prices have caused them to alter vacation plans
34% have canceled vacation plans altogether
37% are opting to take shorter road trips

Feeling the Heat
27% feel oil companies are to blame for continually rising prices
13% feel the federal government is the cause
78% feel the federal government should step in and set limits on gas prices

All in all, not a pretty picture.  No wonder hybrid cars and more fuel efficient cars are in such high demand while trucks and larger SUVs suffer.

Ford Backs Out of Plug-In Arena. That Leaves Just Toyota and GM in the Ring

Ford has decided not to join in the hunt for the next great thing, the plug-in hybrid car. Executives at Ford have decided to adopt a wait and see attitude on this new car.

With questions about how many are going to buy into it, who can actually use it (for instance, how are you going to plug your car in if you live in NYC?), and how much it's going to cost to develop it, Ford has opted to let GM and Toyota pave the way.

Of course, it's not surprising that they are going this route. Ever since they backed off their promise to on hybrid cars, Ford has taken a more conservative approach. Sounding more like Nissan executive Ghosn, Ted Miller, Ford's senior manager of energy storage said "If customers aren't buying them, we're not making them. If there's going to be a true plug-in hybrid market, we're going to be there. It's just that that's a huge commitment to actually go to production."

So that leaves the Chevy Volt and the Toyota Prius Plug-in as the main contenders in the race to plug in. It wasn't likely at this point that Ford could have gotten into the game and come out as a winner. As Toyota could point out (and as GM has said), not developing a Prius-like vehicle was a mistake. Could Ford be making a mistake?

Hybrid Taxis Pay For Themselves in Just 14 Months

A few Calgary taxi drivers, despite warnings about the batteries, the extra cost, and just won't work in cold weather, decided to enter the pilot project to test drive some hybrid taxi cabs. What they found was amazing.

In just 14 to 18 months, the additional cost of the hybrid was paid off through paying less for gas.

You really have to think about that. A typical cab, the Ford Crown Victoria costs around $15,000, while a Prius cost them more than twice that, at $32,600. In 14 months, they made up the difference at the pump.

By cutting their fuel bill from $60 a day down to $25 a day, drivers were ecstatic over the hybrid performance.

The program was run by the Climate Change Central and paid for by the Alberta government. There were five taxis in the program.

In other hybrid tests in the US, owners had a harder time seeing the benefits. Drivers were very happy to drive hybrid taxis because they were the ones paying for the gas. But the taxi cabs were owned by fleet operators. In order to make up the price on the taxis, they were charging more to rent them out to the drivers each day.

Source: Hybrid taxis create huge savings

VW Creates a Plug-In Hybrid Car for German Government

VW is looking to produce a plug-in hybrid by 2010 and is being supported in its effort by the German government. The new motor developed by Volkswagen has been called 'twin drive' and will debut in a special Golf model with 122 hp diesel engine mated to a 82 hp electric motor.



"While the e-motor on a typical hybrid model just supplements the combustion engine, the exact opposite is true on Twin Drive," Winterkorn said during the car's unveiling in Berlin. "Here the diesel or gasoline engine supplements the e-motor."



In other words, it will be like the Chevy Volt, where the gas engine is designed to extend the range of an electric vehicle. Powered by lithium-ion batteries, the Golf plug-in will have an all electric range of 30 miles. Over a 62 mile route, VW believes the Twin Drive Golf can deliver 90 mpg. It will have start-stop capability along with regenerative braking.



A test fleet of 20 vehicles will be on the road in 2010.



The German government sees a future filled with hybrids. Germany's environmental minister believes there will be 1 million hybrids in Germany by 2020 and 10 million by 2030. The Interior Ministry is laying out $23.5 million (15 million euros) in a program to help VW and other automakers to develop plug-in hybrids in the next four years. The trick is to use renewable energy sources when you plug in the car, i.e. wind or solar power.



The new program will also test Vehicle to Grid technology (V2G).



Partners in the new alliance include "Volkswagen, E.ON, (energy provider) and LTC/GAIA and Evonik/Li-Tec (lithium-ion battery providers) as principal partners. Also contributing from the research side are Fraunhofer Gesellschaft, Heidelberg Institute for Energy and Environmental Research (Ifeu), the German Center for Aerospace Technology (DLR), and the Westphalian Wilhelms University at Münster."



Other Sources: Wired, AFP, and InsideLine.

German Man Protests High Gas Prices by Burning Car

There are so many things in this little article I feel I have to comment on. But first, the story: German man torches car to protest high gas prices - Yahoo! News.  Go ahead, go read it, then come back.

A German man goes to a public place, sets fire to his BMW, burns it to the ground, and the police need to investigate whether he committed a crime?

The man was unemployed.  If he was employed, would he have done the same thing?  Not likely.

Gas is now sitting at $9.40 per gallon in Germany. At that price, how many burnt out cars would you see in the US? Admittedly, they would probably get burnt in some insurance scam, rather that in protest...

There are some who think we'll hit $5 a gallon in the US by the end of the summer. As gas prices continue to climb, hybrids begin to look better and better. Although, even at $6 a gallon, they won't be the cheapest car to own, at $9 I'd bet they are.

China May Offer 10 Percent Tax Break on Hybrid Cars

Hybrid cars have not done well in China. Toyota lowered the price tag on the Prius, but they still expected only 1,500 sales for 2008. Even as other car makers start building hybrid cars in China, including domestic models, hybrid car sales in China have been almost non-existent.

All reports indicate that the Chinese are opting for other cars, but that may be about to change.

Green Car Congress: Report: China To Offer Tax Break For Buyers Of Hybrids and Diesels

The Nikkei reports that China will waive its 10% vehicle purchase tax on hybrids and diesel-engine vehicles.

Currently, when buying an automobile or motorcycle in China, the buyer must pay for the price of the vehicle, which includes a consumption tax of 17%, plus a purchase tax of 10% on the pre-consumption-tax price. This vehicle purchase tax is to be waived for those buying from the government’s list of earth-friendly vehicles, likely starting sometime this year.

This tax break could heighten demand for hybrids, considering that the price gap will shrink between hybrids and versions that run on gasoline only.

CARB Recommends a Big Diet for California Transportation

The California Air Resources Board released the draft Scoping Plan for reducing greenhouse gas emissions to 1990 levels by 2020. You can see the presentation to the board under 08-6-4. Given the topic of this blog, I thought I should hone in on the transportation sector.

In the draft report, "the Transportation sector – largely the cars and trucks that move
goods and people – is the largest contributor with 38 percent of the state’s total
greenhouse gas emissions" for a total of 179.3 MMTCO2E from 2002 to 2004. The report also shows an estimated growth in that sector of 25 percent or an extra 46 Million Metric Tons of CO2 emissions (MMTCO2E).

To combat that growth, the board is recommending measures that "include the Low Carbon Fuel Standard to reduce the carbon intensity of transportation fuels sold in our state, enforcement of regulations that reduce greenhouse gas emissions form vehicles."

The board recommendations include (estimated reduction in MMTCO2E):

• California Light-Duty Vehicle GHG standards: implement Pavley standards and develop Pavley II light-duty vehicle standards (31.7)
• Low Carbon Fuel Standard (16.5)
• Vehicle Efficiency Measures (4.8)
• Good Movement: Ship electrification at ports, system wide efficiency improvements (3.7)
• Heavy/Medium Duty Vehicle improvements through aerodynamic efficiency, hybridization, and engine efficiency (2.5)
• High Speed Rail (1)

Some excerpts from the report give you an idea about what the board is recommending in the transportation sector.

The Low Carbon Fuel Standard will "incent a diverse set of clean transportation fuel options."

"The Pavley I and II performance standards help deploy vehicles that can utilize many of the low-carbon fuels, including advanced biofuels, electricity and hydrogen."

"A regulation to require retrofits to improve the fuel efficiency of heavy-duty trucks could include devices that reduce aerodynamic drag and rolling resistance. Hybridization of medium- and heavy-duty vehicles would also reduce greenhouse gas emissions again through increased fuel efficiency. This measure would likely achieve the greatest benefits on trucks used in urban, stop-and-go applications, such as parcel delivery trucks and vans, utility trucks, transit buses, and other vocational work trucks. For long-haul trucks, heavyduty engine efficiency improvements may involve advanced combustion strategies, friction reduction, waste heat recovery, and electrification of accessories."

Increased Interest in Hybrids, Less Satisfaction to be Had Come From High Gas Prices

According to the latest two J.D. Powers surveys, consumers are showing an increased interest in hybrids, just as satisfaction in new cars is dropping because of higher fuel costs.

Before the estimated cost of hybrid technology is revealed, 72% of those surveyed said they were interested in hybrid technology. That's up from 58% in 2005. After telling them the added cost of a hybrid powertrain was $5,000, the percentage of interested consumers drops to 46%.

Which means that, even at a price premium of $5,000, almost half of those surveyed were still interested in a hybrid.

"High consumer interest in hybrid-electric powertrain technology may be reflective of not only rising gas prices but also a heightened effort among consumers to be more environmentally conscious," said Mike Marshall, director of automotive emerging technologies at J.D. Power and Associates. "Clean diesel technology, however, garners relatively low interest in comparison. One explanation for this may derive from a lack of education with the technology. Many consumers cannot differentiate between clean diesel and traditional diesel fuel—which in the past had a negative connotation with unpleasant vehicle emissions. As consumers become more educated in the benefits of clean diesel through increased product offers launching later this year, interest in the technology may increase."

J.D. Powers also surveyed new-vehicle owners satisfaction levels and for the first time in five years, the level has dropped (slightly). Mostly, new car owners are worried about fuel prices, making them a little more anxious about their new cars.

"Average prices at the fuel pump have increased by 27 percent in the period between the 2007 and 2008 APEAL studies, creating heightened sensitivity to fuel economy among new-vehicle owners," said David Sargent, vice president of automotive research at J.D. Power and Associates. "Even though more consumers are now achieving the gas mileage they expect compared with previous years, the increased cost of filling their vehicles still leads to a greater level of dissatisfaction with fuel economy than in the past. Manufacturers that deliver more fuel-efficient vehicles and integrate alternative fuel technology into their designs stand a better chance of delighting their customers and being successful in this rapidly changing marketplace."

All of which points to a different landscape for automakers. Even as the pricetags on new cars are continuing to increase (GM raised their prices an average of 3.5 percent for 2009 vehicles as Ghosn, CEO of Nissan, warns of higher steel prices for all manufacturers). Satisfaction levels, despite higher grades on reliability and initial quality, have dropped on new cars. Automakers are emphasizing fuel economy, even on the Dodge Ram. New CAFE rules, while having plenty of loopholes, shows a renewed interest in regulating the auto industry by Congress.

The landscape for cars is shifting rapidly.

Chevy Aveo Beats Out Hybrid Cars in Cost to Own Study From Edmunds

Edmunds, in their latest study, makes the obvious point that, if you're just looking to save money on a car, a small, cheap car is your best bet. Hybrids, since they are more expensive, aren't the 'best value.'

Does anyone really buy a hybrid because they believe they are going to be saving money? I think they buy them because 1) they are green and/or 2) they use less gasoline and 3) they get to buy a larger car than they expected and still do 1 and 2. No one buys a hybrid because it is going to save them money.

In the end, very few people buy a new car in order to save money.

If you really wanted the best value, you would buy a used, small, cheap car and drive it until it died. Then replace it with another small, cheap car that you can drive into the ground.

I can't really emphasize this enough. If you're buying a hybrid car, you're getting more for less. Now, since not all hybrids are built for fuel efficiency, I can't say you're necessarily getting more fuel efficiency, but I can say you're getting a car that's more efficient. It all depends on what the manufacturer wants to emphasize.

But, anyways, back to the Edmunds study. The best car to buy, if you are worried about the value, is the Chevy Aveo. Edmunds 'True Cost to Own' study "incorporates projected model-specific average vehicle ownership costs, consisting of depreciation, financing, taxes, fees, insurance premiums, fuel costs, maintenance and repairs."

If you factor in all these, the Chevy Aveo will cost you under 43 cents a mile to own. The Prius costs you 50 cents a mile to own, putting it 34th on the list. It was surpassed by the Honda Civic Hybrid, which costs just under 48 cents a mile. That puts the Civic Hybrid in 14th place on the Edmunds list.

Not surprisingly, all hybrids were not built equal, and so the cost to own a hybrid varies wildly. From the aforementioned Civic Hybrid right down to the Lexus RX 400h (which was built for luxury and performance, not primarily for fuel efficiency) which ranks 260. The Ford Escape Hybrid and Mercury Mariner Hybrid SUVs do very well, coming in at 94 and 102, respectively.

The really nice thing about this study is they even take into account the federal tax credit, where applicable.

Cost-Per-Mile: Least Expensive Vehicles to Own
Make		Model		Style		Cost-Per-Mile at $4.06 Per Gallon	Rank	Cost-Per-Mile at $5 Per Gallon	Rank	Cost-Per-Mile at $6 Per Gallon	Rank
Chevrolet		Aveo		5 Special Value 4dr Hatchback (1.6L 4cyl 5M)		$0.427	1	$0.461	1	$0.496	1
Hyundai		Accent		GS 2dr Hatchback (1.6L 4cyl 5M)		$0.430	2	$0.463	2	$0.498	2
Honda		Fit		4dr Hatchback (1.5L 4cyl 5M)		$0.442	3	$0.474	3	$0.507	4
Toyota		Yaris		2dr Hatchback (1.5L 4cyl 5M)		$0.445	4	$0.475	4	$0.507	3
Honda		Civic		DX 4dr Sedan (1.8L 4cyl 5M)		$0.455	5	$0.488	5	$0.522	5
Nissan		Versa		1.8 S 4dr Hatchback (1.8L 4cyl 6M)		$0.458	6	$0.492	6	$0.529	7
Mazda		MAZDA3		i Sport 4dr Sedan (2.0L 4cyl 5M)		$0.463	7	$0.498	8	$0.535	11
Kia		Rio		4dr Sedan (1.6L 4cyl 5M)		$0.464	8	$0.497	7	$0.533	9
Scion		xB		4dr Wagon (2.4L 4cyl 5M)		$0.467	9	$0.506	12	$0.548	17
Toyota		Corolla		CE 4dr Sedan (1.8L 4cyl 5M)		$0.468	10	$0.498	9	$0.530	8

The following are the 10 least expensive hybrid vehicles to own (all 2008 models):

Cost-Per-Mile: Hybrids1
Make		Model		Style		Cost-Per-Mile at $4.06 Per Gallon	Rank	Cost-Per-Mile at $5 Per Gallon	Rank	Cost-Per-Mile at $6 Per Gallon	Rank
Honda		Civic Hybrid		Hybrid 4dr Sedan (1.3L 4cyl gas/electric hybrid CVT)		$0.476	14	$0.499	10	$0.524	6
Toyota		Prius		Standard 4dr Hatchback (1.5L 4cyl gas/electric hybrid CVT)		$0.503	34	$0.525	26	$0.548	18
Nissan		Altima Hybrid		4dr Sedan (2.5L 4cyl gas/electric hybrid CVT)		$0.540	66	$0.569	59	$0.601	54
Chevrolet		Malibu		Hybrid 4dr Sedan (2.4L 4cyl gas/electric hybrid 4A)		$0.563	81	$0.598	78	$0.635	76
Ford		Escape Hybrid		4dr SUV (2.3L 4cyl gas/electric hybrid CVT)		$0.583	94	$0.615	86	$0.649	80
Mercury		Mariner Hybrid		4dr SUV (2.3L 4cyl gas/electric hybrid CVT)		$0.596	102	$0.628	98	$0.662	89
Toyota		Camry Hybrid		Hybrid 4dr Sedan (2.4L 4cyl gas/electric hybrid CVT)		$0.630	134	$0.660	118	$0.691	106
Mercury		Mariner Hybrid		4dr SUV AWD (2.3L 4cyl gas/electric hybrid CVT)		$0.634	136	$0.670	133	$0.709	122
Toyota		Highlander Hybrid		4dr SUV AWD (3.3L 6cyl gas/electric hybrid CVT)		$0.725	190	$0.764	190	$0.806	182
Lexus		RX 400h		4dr SUV (3.3L 6cyl gas/electric hybrid CVT)		$0.897	260	$0.937	260	$0.980	256

¹ The Edmunds.com study takes into account the federal tax credits when applicable.

Edmunds calculations make the following assumptions:

• Ownership expenses are for a five-year time span
• Vehicles are driven 15,000 miles per year
• Vehicles are financed using traditional financing and not leased
• Buyers pay 10 percent down on the vehicle
• Buyers are in the "Gold" credit tier for the purpose of determining the finance rate
• The loan term is 60 months
• Buyers represent the average demographic in their state for insurance rates

The data is available at no charge to visitors, and provides ownership costs regionally for both new and used vehicles. The tool is available at http://www.edmunds.com/apps/cto/CTOintroController.

Hybridfest Gives Hypermilers a Chance to Mingle

Hybridfest 2008 is almost upon us. Located in Madison, Wisconsin on July 19-20 as part of the Dane County Fair. Hybridfest celebrates fuel economy, hybrid cars and alternative transportation solutions.

Hybridfest will allow fuel economy enthusiasts to gather and share their tips on how to use less gas. It will also showcase the MPG Challenge, a hypermiling competition in which competitors attempt to travel a course using the least fuel possible. Last years competitors ranged from 60 to 168 mpg.

Visitors can peruse the Owners' Vehicle showcase and talk with hypermilers about their experiences.

Press Release Follows

MADISON, Wis., June 24 /PRNewswire-USNewswire/ -- As consumers continue to see the effects of rising fuel costs in many aspects of their lives, often the most visible is in their transportation costs. They are frustrated with what they can do, and are looking for options to save money. Hybridfest 2008 will offer the largest selection of clean and sustainable vehicles all in one venue, including hybrids, plug-in hybrids, biodiesel, electric, propane, compressed natural gas and other experimental vehicles. In addition to highlighting new and future vehicle options, Hybridfest 2008's speaker lineup includes people who will share fuel-saving driving tips. Hybridfest 2008 visitors will learn how to save from 35 cents to $1 per gallon in fuel costs -- or more -- by adding fuel-efficient driving habits. Hybridfest 2008 is the one place for consumers to stop and look not only for a fuel-sipping new vehicle, but also for ways to save money with the one they currently drive.

After two years of growing crowds and nationwide publicity, Hybridfest continues to amaze the skeptics who thought that a grassroots event, organized by volunteers, and held in Madison, Wisconsin, would never succeed. The more than 12,000 people who visited Hybridfest 2007 would disagree. One of this nation's largest events dedicated to clean and sustainable transportation will once again be held as part of the Dane County Fair, July 19-20, 2008. Free public admission to Hybridfest 2008 will be included with the purchase of every Dane County Fair ticket, and parking at the fair is free. Most Hybridfest events are scheduled for the air-conditioned comfort of the Alliant Energy Center.

This year's show will include displays by manufacturers, dealers, environmental groups, vendors and exhibitors, as well as vehicle test drives. Toyota Motor Company, the world's largest auto manufacturer and maker of more hybrid vehicles than any other, is proud to again be Hybridfest 2008's Diamond Sponsor. Felix Kramer, founder of CalCars, will join a varied lineup of speakers on a wide assortment of topics including current and future vehicles, as well as various environmental, fuel-efficient driving and other technology issues.

Hybridfest 2008 will again be the "home" for hybrid owners from around North America. Owners travel from all across the country and Canada, many hypermiling to Madison, to meet, teach and learn with other hybrid and fuel-economy enthusiasts like themselves. Visitors will have the unique chance to see incredible vehicles in the Hybridfest Owners' Vehicle Showcase, and to talk with the owners about their real-life driving experiences. Hybridfest 2008 will also feature the nation's premier fuel economy competition, the MPG Challenge, which will again test some of the world's best hypermilers to achieve the best fuel economy over an open-road course. Last year, MPG Challenge winners achieved from 60 to 168 MPG in various vehicle classes.

Hybridfest promotes awareness and understanding of hybrid electric vehicles and other fuel-efficient vehicles and their positive environmental impact. Hybridfest also empowers drivers to improve their driving habits to achieve better fuel efficiency in whatever vehicle they currently drive. Hybridfest is run with volunteers and powered by Powers Productions, LLC.



Hybridfest sponsors for this year's show include:
DIAMOND SPONSOR: Toyota Motor Company
RUBY SPONSOR: General Motors
GOLD SPONSOR: Madison Gas & Electric
SILVER SPONSORS: CleanMPG.com, Quaker Steak and Lube, Wisconsin Public
Power, Inc.

The Smart Fortwo Hits Milestone

Chrysler has delivered its 10,000th smart fortwo after only six months on the market. That's a fantastic start to the miniature car. Many of the early sales came (I'm assuming) from those who put down $99 to reserve theirs before the car was even released.

It's hard to know how to put that number in context, however. I only keep track of hybrid car sales, so... The Camry Hybrid, after it was released in April, 2006 sold 21,430 units in the first six months. The luxury hybrid GS 450h, also released in April 2006, sold 1,179 units in the first six months. The Toyota Highlander sold over 15 thousand units in its first six months, while Ford only sold 6,532 units of the Escape and Mariner Hybrids in the first six months. The Nissan Altima Hybrid, as a more recent arrival, sold under 4 thousand units in its first six months, but then the Altima Hybrid has limited sales in just eight states.

It's really hard to judge how good 10,000 sales is after six months. It's obviously not bad, but there was a lot of build up to the Smart release. So, a lot of those sales, as I've already noted, come from that early rush. Will Chrysler keep it up and sell 20,000 a year going forward is the real question.

"This is a landmark sales figure in a very short timeframe, demonstrating that increasing numbers of U.S. drivers are discovering all that the smart fortwo has to offer," said Dave Schembri, president of smart USA. "The smart fortwo has the opportunity to change the landscape of our highways by offering a powerful combination of fun-to-drive aspects, safety innovations and functionality – all with great fuel economy."

The smart fortwo went on sale in the United States in January 2008, and is available at 69 smart centers in 31 states.

The 81 Most Fuel Efficient Cars of 2007

Since my list of the most fuel efficient cars of 2008 has been so useful to so many people, I have now created a list of most fuel efficient cars of 2007.

Method: I went to the EPA website: fueleconomy.gov, and examined each vehicle whose combined mpg (45% Highway and 55% City Driving) was above 25 mpg. Using that information, I compiled the following list of fuel sippers. There were 81 models in 2007 that made the cut.

Once again, it's not surprising to see hybrids and small cars top the list.

			MPG*
Ranking	Category	Vehicle	City	Highway	Combined**
1	Family Sedans	Toyota Prius 4 cyl, 1.5 L, Automatic (variable gear ratios), HEV, Regular	48	45	47
2	Small Car	Honda Civic Hybrid 4 cyl, 1.3 L, Automatic (variable gear ratios), HEV, Regular	40	45	42
3	Family Sedans	Nissan Altima Hybrid 4 cyl, 2.5 L, Automatic (variable gear ratios), HEV, Regular	35	33	34
4	Family Sedans	Toyota Camry Hybrid 4 cyl, 2.4 L, Automatic (variable gear ratios), HEV, Regular	33	34	33
5	Station Wagon	Pontiac Vibe 4 cyl, 1.8 L, Automatic 4-spd, Regular	25	41	32
6	Small Car	Toyota Yaris 4 cyl, 1.5 L, Manual 5-spd, Regular	29	36	32
6	Hatchback	Toyota Yaris 4 cyl, 1.5 L, Manual 5-spd, Regular	29	36	32
7	Small Car	Toyota Corolla 4 cyl, 1.8 L, Manual 5-spd, Regular	28	37	32
8	Small Car	Toyota Yaris 4 cyl, 1.5 L, Automatic 4-spd, Regular	29	35	32
8	Hatchback	Toyota Yaris 4 cyl, 1.5 L, Automatic 4-spd, Regular	29	35	32
9	Small Car	MINI Cooper 4 cyl, 1.6 L, Manual 6-spd, Premium	27	36	31
10	Small Car	Honda Fit 4 cyl, 1.5 L, Manual 5-spd, Regular	28	34	31
10	Hatchback	Honda Fit 4 cyl, 1.5 L, Manual 5-spd, Regular	28	34	31
11	Small Car	Honda Fit 4 cyl, 1.5 L, Automatic 5-spd, Regular	27	35	31
11	Hatchback	Honda Fit 4 cyl, 1.5 L, Automatic 5-spd, Regular	27	35	31
12	Small Car	Honda Fit 4 cyl, 1.5 L, Automatic (S5), Regular	27	34	30
12	Hatchback	Honda Fit 4 cyl, 1.5 L, Automatic (S5), Regular	27	34	30
13	SUV	Ford Escape Hybrid FWD 4 cyl, 2.3 L, Automatic (variable gear ratios), Regular	31	29	30
14	Small Car	Toyota Corolla 4 cyl, 1.8 L, Automatic 4-spd, Regular	26	35	30
15	Small Car	Honda Civic 4 cyl, 1.8 L, Automatic 5-spd, Regular	25	36	30
16	Small Car	Honda Civic 4 cyl, 1.8 L, Manual 5-spd, Regular	26	34	30
17	Small Car	Kia Rio 4 cyl, 1.6 L, Automatic 4-spd, Regular	25	35	30
18	Small Car	Honda Civic CNG 4 cyl, 1.8 L, Automatic 5-spd, RNG=200, Natural Gas	24	36	29
19	Small Car	Hyundai Accent 4 cyl, 1.6 L, Manual 5-spd, I4, Regular	27	32	29
19	Small Car	Kia Rio 4 cyl, 1.6 L, Manual 5-spd, Regular	27	32	29
19	Hatchback	Hyundai Accent 4 cyl, 1.6 L, Manual 5-spd, I4, Regular	27	32	29
20	Small Car	MINI Cooper 4 cyl, 1.6 L, Automatic (S6), Premium	26	33	29
20	Small Car	Nissan Versa 4 cyl, 1.8 L, Automatic (variable gear ratios), Regular	26	33	29
20	Hatchback	Nissan Versa 4 cyl, 1.8 L, Automatic (variable gear ratios), Regular	26	33	29
20	Station Wagon	Pontiac Vibe 4 cyl, 1.8 L, Manual 5-spd, Regular	26	33	29
20	Station Wagon	Toyota Matrix 4 cyl, 1.8 L, Manual 5-spd, Regular	26	33	29
21	Small Car	Nissan Sentra 4 cyl, 2 L, Automatic (variable gear ratios), Regular	25	33	29
21	Family Sedans	Hyundai Elantra 4 cyl, 2 L, Automatic 4-spd, Regular	25	33	29
22	Small Car	Nissan Versa 4 cyl, 1.8 L, Manual 6-spd, Regular	26	31	28
22	Hatchback	Nissan Versa 4 cyl, 1.8 L, Manual 6-spd, Regular	26	31	28
23	Small Car	Hyundai Accent 4 cyl, 1.6 L, Automatic 4-spd, I4, Regular	24	33	28
23	Small Car	Ford Focus 4 cyl, 2 L, Manual 5-spd, I4, Regular	24	33	28
23	Family Sedans	Hyundai Elantra 4 cyl, 2 L, Manual 5-spd, Regular	24	33	28
23	Hatchback	Hyundai Accent 4 cyl, 1.6 L, Automatic 4-spd, I4, Regular	24	33	28
23	Hatchback	Ford Focus 4 cyl, 2 L, Manual 5-spd, I4, Regular	24	33	28
23	Station Wagon	Ford Focus Station Wagon 4 cyl, 2 L, Manual 5-spd, I4, Regular	24	33	28
24	Station Wagon	Toyota Matrix 4 cyl, 1.8 L, Automatic 4-spd, Regular	25	31	28
25	Small Car	MINI Cooper S 4 cyl, 1.6 L, Manual 6-spd, Premium	24	32	28
25	Small Car	Mazda 3 4 cyl, 2 L, Manual 5-spd, Regular	24	32	28
25	Small Car	Nissan Versa 4 cyl, 1.8 L, Automatic 4-spd, Regular	24	32	28
25	Family Sedans	Honda Accord Hybrid 6 cyl, 3 L, Automatic 5-spd, HEV, Regular	24	32	28
25	Family Sedans	Saturn Aura Hybrid 4 cyl, 2.4 L, Automatic 4-spd, Regular	24	32	28
25	Hatchback	Nissan Versa 4 cyl, 1.8 L, Automatic 4-spd, Regular	24	32	28
26	SUV	Ford Escape Hybrid 4WD 4 cyl, 2.3 L, Automatic (variable gear ratios), Regular	28	27	28
26	SUV	Mercury Mariner Hybrid 4WD 4 cyl, 2.3 L, Automatic (variable gear ratios), Regular	28	27	28
27	Small Car	Chevrolet Aveo 4 cyl, 1.6 L, Manual 5-spd, Regular	23	33	28
27	Small Car	Chevrolet Aveo 5 4 cyl, 1.6 L, Manual 5-spd, Regular	23	33	28
27	Hatchback	Chevrolet Aveo 4 cyl, 1.6 L, Manual 5-spd, Regular	23	33	28
27	Hatchback	Chevrolet Aveo 5 4 cyl, 1.6 L, Manual 5-spd, Regular	23	33	28
28	Small Car	Nissan Sentra 4 cyl, 2 L, Manual 6-spd, Regular	24	31	27
29	Small Car	Saturn Ion 4 cyl, 2.2 L, Manual 5-spd, Regular	23	32	27
29	Family Sedans	Nissan Altima 4 cyl, 2.5 L, Manual 6-spd, Regular	23	32	27
29	Family Sedans	Kia Spectra 4 cyl, 2 L, Automatic 4-spd, Regular	23	32	27
29	Luxury Sedan	Mercedes-Benz E320 Bluetec 6 cyl, 3 L, Automatic 7-spd, Diesel	23	32	27
29	Convertible	MINI Cooper Convertible 4 cyl, 1.6 L, Manual 5-spd, Premium	23	32	27
30	Small Car	Nissan Sentra 4 cyl, 2.5 L, Automatic (variable gear ratios), Regular	24	30	27
31	SUV	Lexus RX 400h 2WD 6 cyl, 3.3 L, Automatic (variable gear ratios), HEV, Premium	28	25	27
31	SUV	Toyota Highlander Hybrid 2WD 6 cyl, 3.3 L, Automatic (variable gear ratios), HEV, Regular	28	25	27
32	Small Car	Mazda 3 4 cyl, 2 L, Automatic (S4), Regular	23	31	27
32	Small Car	Chevrolet Aveo 4 cyl, 1.6 L, Automatic 4-spd, Regular	23	31	27
32	Small Car	Ford Focus 4 cyl, 2 L, Automatic 4-spd, Regular	23	31	27
32	Small Car	Chevrolet Aveo 5 4 cyl, 1.6 L, Automatic 4-spd, Regular	23	31	27
32	Small Car	Mitsubishi Lancer 4 cyl, 2 L, Manual 5-spd, SOHC, Regular	23	31	27
32	Family Sedans	Honda Accord 4 cyl, 2.4 L, Manual 5-spd, Regular	23	31	27
32	Family Sedans	Nissan Altima 4 cyl, 2.5 L, Automatic (variable gear ratios), Regular	23	31	27
32	Hatchback	Chevrolet Aveo 4 cyl, 1.6 L, Automatic 4-spd, Regular	23	31	27
32	Hatchback	Ford Focus 4 cyl, 2 L, Automatic 4-spd, Regular	23	31	27
32	Hatchback	Chevrolet Aveo 5 4 cyl, 1.6 L, Automatic 4-spd, Regular	23	31	27
32	Station Wagon	Ford Focus Station Wagon 4 cyl, 2 L, Automatic 4-spd, Regular	23	31	27
33	Hatchback	Dodge Caliber 4 cyl, 1.8 L, Manual 5-spd, Regular	24	29	26
34	Small Car	MINI Cooper S 4 cyl, 1.6 L, Automatic (S6), Premium	23	30	26
34	Family Sedans	Kia Spectra 4 cyl, 2 L, Manual 5-spd, Regular	23	30	26
35	SUV	Toyota Highlander Hybrid 2WD	27	25	26
35	SUV	Lexus RX 400h 4WD 6 cyl, 3.3 L, Automatic (variable gear ratios), HEV, Premium	27	25	26
35	SUV	Toyota Highlander Hybrid 4WD 6 cyl, 3.3 L, Automatic (variable gear ratios), HEV, Regular	27	25	26
36	SUV	Saturn Vue Hybrid 4 cyl, 2.4 L, Automatic 4-spd, Regular	23	29	26
* MPG based on revised MPG figures from the EPA. The MPG testing was adjusted in 2008 to reflect real world driving.
* Combined MPG Based on 45% Highway and 55% City Driving

The list may seem to be repeating itself, but fuel efficiency depends on the engine type. There's also a diesel car on the list, so keep that in mind. Comparing the fuel economy of a diesel to a gasoline car can be said to be like comparing apples and oranges, but it all depends on the reader.

The rankings are based on combined fuel economy. There are 81 models, but 36 rankings.

If you notice a 2007 model year car that gets a combined 25 mpg or better and is not on the list, please let me know in the comments.

Update: I have lists up on the most fuel efficient cars of 2006 and the most fuel efficient cars of 2005.

RACV of Australia Tells Consumers Hybrids Cost More to Own

A survey from RACV in Australia says it will cost you $50 more a week to own a Prius than a Toyota Corolla, and $5 more a week if you compare the Prius to the Toyota Camry (4-cylinder). And they also note the Honda Civic Hybrid costs $23 more to run a week than the 4 cylinder gas version.

But there's absolutely no explanation of why it's more expensive, which is frustrating to say the least. If you're going to tell people it's more expensive to own, you should tell them why.

According to the news release, the surveyors take into account appreciation over 5 years, fuel costs, tires (they call them tyres), servicing and insurance.

When I went to find out more, I found the RACV website. It makes me think of AAA, but not being from Australia, I can't say for sure. There's also a news release called "Do the maths when you are planning a holiday." That looks like a pretty funny sentence to me. Is "do the maths" typical Australian or just weird?

But either way, it's frustrating to see results like this without being able to see the actual survey. Was it a consumer survey? Was it based on resale value? Are hybrids less popular in Australia, making the resale value lower than you would see in the states? Did they add in a bogus 'battery replacement' cost? I have all sorts of questions, but the survey isn't on the site, yet.

Hopefully, they'll put it up soon and I can find out more.

Update: It seems they are attributing the increased cost to the higher purchase price and a higher service cost.

"This discrepancy in running costs can be attributed to the higher purchase cost of hybrid vehicles, combined with higher servicing costs," he said.

I wonder why they are paying more to service hybrid cars in Australia? That doesn't make a lot of sense. A lot of the routine maintenance costs are actually less since you don't have to change the oil as often and the brake pads last longer.

In the US, the higher purchase price is offset quite a bit by the appreciation. Used hybrids are selling at much higher prices than their gas-only counterparts. Just look at this article from Forbes. The price for a used Prius from 2007 actually went up in the past six months. The same goes for many of the hybrids shown in the article.

Why You Should Not Buy a Hybrid Right Now

Despite the gas prices, despite the green cred, and despite the huge interest in hybrids right now, you probably should hold off on buying one, either new or used.

I know this is strange to hear from me, but it's true.

Right now just isn't the right time.

The problem is, hybrids are actually too popular. The waiting lists have returned and dealers can charge, almost, whatever they want for them. And still the turn rate for some of the hybrid models 'available' right now are incredibly low.

The days to turn a Prius is sitting at 4 days (Source: PIN Insights, a division of JD Powers. Link is pdf). That mean the average Prius is sitting on a dealers lot for a total of 4 days. That's incredibly low. The Honda Civic Hybrid has a turn rate of 10 days, the Toyota Camry Hybrid sits on the lot for 15 days and the Ford Escape Hybrid is in your Ford dealership for 22 days.

To give you a little bit of perspective, the average days to turn is 57 days. Which means a 4 day turn rate indicates the Prius is already sold before it gets to the dealership. Which means the dealership has the upper hand right now. If you try to negotiate, they can walk away from you. That's not a good place for you, the buyer, to be.

And because of the incredible demand on new hybrids, the same sort of upwards pressure is being applied to used hybrids on the market. You can get your hands on a used Prius, but you're probably going to have to pay new car prices.

That's great if you have a used hybrid to sell.

Limited Inventory is the Problem

In case you're wondering, the problem is limited inventory. Despite being one of the top ten most popular cars in the US, Toyota can't produce enough Prius to drop that turn rate. Ford has limited the numbers of hybrids they are going to sell until they can make money off of them. The same goes for the other car makers.

Each of the car makers set out to make so many hybrids this year and that number is not going to be increased for a little while. That puts a limit on the number of parts (batteries, for instance) available right now.

The Solution is Time

The huge upsurge in interest in hybrid cars is going to go back down. It won't crash, but it will dissipate as people realize how much they have to pay just to get their hands on a hybrid car right now. As the interest relaxes, inventories will go back up. So will production as the automakers increase their part orders and start signing off on building more.

Remember, last year Toyota was offering incentives on hybrids to clear out inventory.

So you may want to hold off for a while. It won't be that long until you won't have to pay thousands more than MSRP just to own a Prius.

GM Reveals Targets for Chevy Volt

GM wants to build and sell 70,000 Chevy Volts, their new plug-in hybrid (excuse me, extended range electric vehicle) by 2012. That's a target of 10,000 in 2011 (I assume that includes any they sell in late 2010) and 60,000 in 2012. Source: GM Wants To Make 70,000 Chevrolet Volts by 2012.

GM Vice President Lutz e-mail the Detroit Press and revealed the targets as part of his open door policy on the Chevy Volt development process. Of course, Lutz left the door open to moving that target around, but the numbers seem solid at this point.

Of course, it all comes down to whether or not customers want to buy the Volt. GM may not sell 10,000 hybrid SUVs in their first year the way they wanted to. And so too the Volt may still fall flat on its face.

I don't think it will though. There seems to be a lot of excitement about the Volt, both from a 'this is new' standpoint and with gas prices still climbing. If gas prices were to fall down below $3 a gallon, I would have a different opinion on how things are going to evolve. But we have seemed to hit the wall with $4 a gallon. Even if the Volt does come out at $40,000, it should do well enough to make GM happy.

Of course, if GM gets the government to set up a tax credit for plug-ins (I wonder if that would get GM to give up this 'extended range' moniker?), they would be even happier.

McCain Pushes For Changes in the Auto Industry Fuel Efficiency

Senator McCain laid out his plan for the auto industry in a speech in California. He wants

• More ethanol (flex-fuel) vehicles.
• Zero emission cars will get a $5,000 tax credit.
• Other cars will get tax credits based on the carbon emissions.
• Higher levies on automakers that don't comply with CAFE Standards.
• $300 million prize to anyone who can develop a car battery that can 'leapfrog the commercially available plug-in hybrids or electric cars.' It should deliver power at 30 percent of the current costs.

That last sounds similar to, but not quite like, the X-Prize. Normal procedures for the federal government is to offer grants to companies and individuals to research new technology or science, not offer up a prize.

A $5,000 tax credit for zero emissions vehicles would be welcomed by many. But, as McCain himself points out, by the time the federal tax credit came to be for hybrids, there were a "hodgepodge of incentives" for the purchase of fuel-efficient cars. So too would McCains' proposal come to be.

If it came to that, the government could extend the federal tax credit for hybrids already in place. They would have to make room for the companies that have already overrun their limits (Toyota and Honda), but it could be done.

GM Appeals for Plug-In Hybrid Tax Credit

GM wants a $7,000 tax credit for plug-in vehicles like the Chevy Volt.

According toe GM vice-president for global program management Jon Lauckner, "What we favor is actually a sliding scale depending on how much battery you have on board. When I talk about $6,000 to $7,000, we're talking about a battery that's at least two times the size of a typical conversion plug-in or even a plug-in hybrid that we would offer."

That would be quite different from the current federal tax credit for hybrids. The current system is set up so that the first 60,000+ customers who bought a hybrid vehicles sold by a car maker (be it Toyota, Ford, GM, Nissan, etc...) would be eligible for the tax credit. The amount of the credit varies based on fuel economy, not battery size.

The top credit was set at $3,400. But plug-in hybrids are expected to be more expensive and therefore less appealing to a wide range of buyers. There will be some who will queue up for the new Volt. But to appeal to a wider group, the federal government will need to establish a federal tax credit. Either that or the car makers will need to sell for a loss, or customers will have to pay a lot more.

If there is no tax credit in place, and fewer people buy, the whole plug-in industry may never get off the ground. It's only with bulk sales that manufacturers can drop prices. Toyota took years to get to the point where they can sell hybrids at a profit. Ford is only getting to that point this year.

Chrysler Hints at New Rear Wheel Drive Hybrid Sedans for the Future

Like GM, Chrysler is in a bind when it comes to hybrid technology. They teamed up with BMW and GM to develop the two-mode hybrid system. The system requires a bit of room as well as being expensive, which was fine with them since they were planning on installing them into the more profitable SUV and truck line-up. The could even cut the price on their new SUV hybrids in an effort to undercut GM.

Unfortunately for them, they are going to market at just the wrong time. SUV and truck sales are falling fast with gas prices hitting $4 a gallon. They, like other car makers, are feeling the bite and are starting to switch away from larger vehicles into smaller ones.

But still, they are bringing the SUV hybrids to market. In August, they will bring out the Dodge Durango and Chrysler Aspen Hybrid SUVs. Next year, they plan on bringing the Dodge Ram Hybrid Pickup to market. There are all rear-wheel systems.

The two-mode hybrid powertrain Chrysler, GM and BMW need more room and so it's likely that any sedans that come out with the same powertrain will also be rear-wheel drive. Which means sedans like the Chrysler 300 and Dodge Charger would be likely candidates.

GM Hybrid Trucks, Here and Then Gone?

GM is taking the two-mode hybrid system the co-developed with BMW and Chrysler and putting it into the GMC Sierra and Chevy Silverado sometime this fall. And they are planning on building the new hybrid trucks in Canada at the Oshawa, Ont plant in Canada.

But that plant is scheduled to be closed in 2009.

To say this makes me wonder about GM's long term plans in building hybrids would be an understatement.

GM, when it decided to get into the hybrid game, decided to go the large hybrid route. They would build mild hybrids (see the Aura and Vue), then full hybrids that were larger than the others (see the Vue (again), Escalade, Yukon, Tahoe, Sierra, Silverado; which are all large SUVs or trucks (aside from the Vue)) and they would also build plug-in hybrids (see the Volt and the Vue (yes, the Vue again)).

And perhaps, that made some sense. SUVs and trucks are money makers, while smaller cars don't see as much profit. Besides which, if you're already shelling out tens of thousands for an SUV, what's a few more thousand for the hybrid system. After all, you'll get the green cred for it, right?

But with the severe downturn in trucks and SUVs, it may be GM is seeing a different light for hybrids. Like Ford before them, are we about to see GM back off of hybrid technology, except for the Volt, which they've put too much into?

ABG seems to think the plant closing will just force GM to move production elsewhere. Or, who knows, maybe they'll keep the plant open, as over two thousand plant workers hope. But, tie this news to GM not making their sales numbers for the Yukon and Tahoe hybrids, and perhaps we're seeing something more.

Ford Will Begin Producing More Escape and Mariner SUVs in Third Quarter

In other words, Ford may finally be ready to increase the number of hybrids they are willing to sell.

Up till now, Ford has put a cap on the number of hybrids they were willing to sell. It was like they made a conscious decision... 'we can build and sell XX thousand a year a year (25,108 in 2007, 22549 in 2006, 15,880)' and who can blame them? They were reportedly losing money on each hybrid sold. But they didn't want to be seen as being 'out of it' when it came to hybrids. And as long as the Escape Hybrid was seen as one of the best choices when it came to hybrid SUVs, they seemed happy with it.

But high gas prices are forcing them to cut production on their trucks and larger SUVs, For is looking to make the volume with smaller cars and small SUVs like the Escape and Mariner. Also, one Ford exec was quoted as saying (I'm paraphrasing here) with the upcoming release of the Milan and Fusion hybrids, they will finally start making a profit on hybrids.

So, Ford will be adding a third shift at the Kansas City Assembly Plant's line that produces the Ford Escape, Escape Hybrid and Mercury Mariner and Mariner Hybrid. Which means we may start seeing a significant increase in hybrid sales starting in the third quarter that is not due to Toyota.

"We view the move to smaller, more fuel-efficient vehicles as permanent, and we are responding to customer demand," Ford President and CEO Alan Mulally said in a statement released today. "In the near term, we are adjusting production to the actual demand - increasing small cars and crossovers and reducing large trucks and SUVs. For the long term, we are moving fast to introduce more small cars, crossovers and fuel-efficient powertrains - including more hybrids - and we will adjust our manufacturing facilities to match our updated product lineup."

That shift to produce more hybrids includes the Milan and Fusion, which are built using the same hybrid motor as the Escape and Mariner.

Photo from flickr by super-structure.

EPA Believes Society Will Save $2 Trillion by Increasing MPG Standards

An EPA draft for the new regulations governing fuel economy by 2020 shows automakers could improve fuel efficiency to 38.3 mpg by 2020 at a cost of $30 billion a year. The agency estimates the new car fleet could be 40% diesel and full hybrid, and that plug-in cars will be a viable technology in 2012.

The draft should be unveiled on Monday, but a copy was obtained by the Detroit News. It's believed, however, that the final proposal won't be finished before Bush leaves office, which makes me wonder what will come of this draft, if anything. A new administration will certainly want input on any new limitations of this scope.

The EPA also outlines other areas they could limit greenhouse gases, namely ships, aircraft, nonroad vehicles (farm and construction equipment) and solid waste incenerators.

The cost of $30 billion a year to the auto industry will be offset by an estimated $2 trillion societal benefit according to the draft proposal. The savings to society will come through reduced greenhouse gas emissions. The extra cost to consumers payback will come in 3.4 to 7.4 years if gas were to hold steady at $3.50 a gallon.

Toyota Will Have Two New Dedicated Hybrids at the Detroit Auto Show

According to newspaper reports this past week, Toyota was planning on bringing three dedicated hybrids to the NAIAS in Detroit in January. Toyota, on their Open Road Blog, clarified this. There will be only two new hybrids at the show, one from Lexus and the other from Toyota.

Both will be dedicated hybrids. Like the Prius, there will be no gas version of these new models.

Volkswagen Jetta TDI... Diesel Cars are About to Return to the US

Volkswagen has set the pricetag for their soon to be Jetta TDI and SportsWagen at $21,990 and $23,590, respectively. The new vehicle models will be compliant to the strictest emissions standards in all 50 states, so no worries for those of you who have been awaiting diesels return. The TDI's will be back in August.

The EPA rated the Jetta TDI at 29 mpg city and 40 mpg highway. But Volkswagen wasn't happy with that and so they went and hired AMCI, a third party certifier, who rated the Jetta TDI at 38 mpg city and 44 mpg highway in 'real world' conditions.

Either way, these reflect gallons in diesel, not gasoline and that should be considered. Even though diesel gives you a better return, the price per gallon is still higher than gas.

The Jetta TDI also comes standard with their Prevent and Preserve Safety System which includes six airbags, optional rear side airbags and standard electronic stablization program.

Volkswagen also want you to note their carefree maintenance program, which charges nothing for scheduled maintenance for three years or 36,000 miles, whichever occurs first.

Google Says Hybrid Cars More Popular Than Diesels, Fuel Cells or Electric Cars

I've already noted how gas prices and interest in hybrid cars are highly correlated. It's not surprising, then, to find peak oil and hybrid cars are also highly correlated.

If you know what google trends is, skip ahead one paragraph. Otherwise, read the following quick introduction. Google trends is a nifty tool that allows you to see how popular a particular search term is. Google doesn't hand over the actual number of searches, but you can compare terms and get a good idea about trends, if not scale.

I just saw a trend comparison of peak oil and hybrid cars over at reddit. Not surprisingly, the number of searches for hybrid cars peaks at the same time as peak oil does.


The scale is based on the average worldwide traffic of peak oil in all years. The red line in each of the graph (and in each of the following graphs) indicate the term 'hybrid cars' while the blue reflects the other term.

Which made me curious about other trends. What about hybrid cars vs. electric cars?

And fuel cells?

And last, but not least, diesel cars vs hybrid cars?

Just goes to show you interest in alternative fuels, no matter what they are, tend to go hand in hand with the price of oil. But, at least according to google, interest in hybrid cars have overtaken diesel, electric and fuel cell cars.



You can clearly see how the search term hybrid cars has surpassed the others.

A Converted Plug-in Prius Catches on Fire in South Carolina

A converted plug-in Prius was destroyed by an 'internal fire that occured during a routine drive.' The PHEV was owned by Central Electric Power Cooperative in Columbia, SC and the hybrid had a Hybrids-Plus PHEV15 conversion kit.

The fire started in the back seat and the driver quickly exited. There was a 'subsequent explosion.' According to ABG, the 'fire may have been triggered by something related to the on-board battery charger and the car had previously experienced some mechanical issues related to that.'

This is bad news for those companies that are trying to develop a conversion kit for hybrids. While car fires are nothing new, there is a special concern for plug-in vehicles. The plug-in industry is in a delicate place right now. If a plug-in car from a major player (say GM or Toyota, which this wasn't) caught on fire, it could do irreparable damage to the future of plug-ins.

But the good news (other than no one was hurt) is it wasn't the battery that overheated, but the charger.

It's stories like this that should be at the forefront of GM development of the Volt. I was happy when I heard that Toyota had decided to slow down (a bit) in their development of a plug-in. From all reports, GM is pushing the Volt hard to finish on time. While I'm quite sure they are being careful with all the electrical systems, one short circuit could kill the marketplace before it has a chance to grow.

Chrysler Sets New Hybrid SUV Prices at Five Thousand Less Than GM is Charging

In what may be very bad news for GM and their SUV hybrids, Chrysler has announced they are setting the price for their oversized SUV hybrids at $5,000 less than what GM set it at.

GM hybrid SUV sales have not been great so far, with high gas prices and high sticker prices keeping many customers away. But GM set a sales goal of 10,000 units for the first year and they have said they still think they can make it.

But the 2009 Dodge Durango Hybrid and Chrysler Aspen Hybrid, due out in August, wills tart at $45,340 and $45,570, respectively. That's $5,000 less than the GMC Yukon and Chevy Tahoe. Since GM, Chrysler (DaimlerChrysler before the breakup) and BMW collaborated to build the two-mode hybrid system in the vehicles, you would have to wonder if this sort of competition will be good for either company.

Given the sales pace so far, this many models will saturate the field quickly, if it already isn't.

The ETA Selects the Greenest Cars of 2008

The Environmental Transport Association of England looked at over 1300 models and chose the best models best on power, emissions, fuel efficiency and noise emissions to create a definite guide on the 'greenest' vehicles. The Toyota Yaris was selected as the Green Car of 2008. The worst car was the Dodge SRT-10.

The ETA Selected Top 10 Green Cars were:

1. Toyota Yaris
2. Honda Civic Hybrid
3. Toyota Prius
4. Renault Modus
5. Citroën C1
6. Peugeot 107
7. Toyota Aygo
8. Renault Clio
9. Toyota Auris
10. Suzuki Swift

Not surprisingly, they are all small family or smaller.

The top vehicles in each category were:

• Supermini: Toyota Yaris
• Small Family: Honda Civic Hybrid
• Small MPV: Renault Modus
• City: Citroen C1
• Large Family: BMW 3 Series 320d Saloon
• Sports: Vauxhall Tigra, MY2008 2-door Convertible
• MPV: Peugeot 207 SW Outdoor
• Executive: BMW 5 Series 520d Saloon
• Off road: Toyota RAV4
• Luxury: JAGUAR XJ 2.7L Diesel Saloon

The Car Buyer's Guide was created in 1992 and is published annually.

Honda Begins Production of the FCX Clarity

Today, as oil prices reached a new high ($140 a barrel), Honda began producing their new advanced fuel cell vehicle, the FCX Clarity. There are only five customers so far, but Honda is setting up their first dealership network.

The first three dealerships to offer a fuel cell vehicle in the US are all located in California. They are Power Honda Costa Mesa (Costa Mesa), Honda of Santa Monica (Santa Monica) and Scott Robinson Honda (Torrance).

The first to own a FCX from Honda is film producer Ron Yerxa, who will take delivery of the first FCX Clarity in July. The remaining four early adopters for Honda's next-generation fuelcell vehicle are author and actress Jamie Lee Curtis and her filmmaker husband Christopher Guest; business owner and car enthusiast Jim Salomon; actress Laura Harris; and Jon Spallino, already the world's first retail fuel cell vehicle customer, who has been leasing the current generation FCX since 2005. Yerxa, Harris and Spallino attended the event in Japan.

Honda will begin leasing the FCX in July. Since the fuel cell vehicle is so expensive, Honda believes leasing is a better option for most people. There will be around 200 available in the US and in Japan over the first three years of production. So if you're looking to prove your 'greenness,' you better sign up fast. Only those who can re-fuel the vehicle will be eligible, so you need to live in the right area, too.

The FCX Clarity is a hydrogen powered fuel cell vehicle. It is propelled by an electric motor. The electricity is generated via the fuel cells and it is three times more efficient than a gas engine. It's only emissions will be water vapor.

The Honda V Flow fuel cell platform is powered by the Honda V Flow fuel cell stack. Significant advances over Honda's previous generation FCX include:

• an advanced new four passenger sedan design
• a greater than 30 percent increase in driving range up to 280 miles(1)
• a 25 percent increase in combined fuel economy to 72 miles/kg-H2(1) (74 mpg GGE )
• a 50 percent improvement in fuel stack power output density by volume
• a 40 percent smaller and 50 percent lighter new lithium ion battery pack

Press Release follows:

TOCHIGI, Japan, June 15 /PRNewswire/ -- American Honda Motor Co., Inc.,
today announced five of the first customers for its advanced new FCX
Clarity hydrogen fuel cell-powered vehicle and also provided details of the
world's first fuel cell vehicle dealership network in the United States.
The announcements were made during a ceremony for the start of FCX Clarity
production at the world's first dedicated fuel cell vehicle manufacturing
facility in Japan.

Film producer Ron Yerxa will take delivery of the first FCX Clarity in
July. The remaining four early adopters for Honda's next-generation fuel
cell vehicle are author and actress Jamie Lee Curtis and her filmmaker
husband Christopher Guest; business owner and car enthusiast Jim Salomon;
actress Laura Harris; and Jon Spallino, already the world's first retail
fuel cell vehicle customer, who has been leasing the current generation FCX
since 2005. Yerxa, Harris and Spallino attended the event in Japan.

To provide its customers with outstanding sales and service support and
as a critical step in advancing fuel cell vehicles in the real world,
American Honda announced the establishment of the first network of dealers
to facilitate the sales and service of fuel cell vehicles. The three
Southern California Honda dealers are Power Honda Costa Mesa (Costa Mesa),
Honda of Santa Monica (Santa Monica) and Scott Robinson Honda (Torrance).

"This is an important day in the history of fuel cell vehicle
technology and a monumental step closer to the day when fuel cell cars will
be part of the mainstream," said John Mendel, executive vice president of
American Honda. "Our customers and dealers share in our vision for a
cleaner and more sustainable transportation future, and share in our
challenge to embrace a new generation of automotive technology that we
think will carry the auto industry and its customers into the future."

FCX Clarity Customers

The five customers announced today were among the very first people to
share with Honda their passion for the environment and interest in the FCX
Clarity, dating back to its debut as a concept model at the 2005 Tokyo
Motor Show. The initial criteria for fuel cell vehicle ownership, including
proximity to hydrogen refueling stations, driving patterns and vehicle
needs, all played a part in Honda's customer selection process.

"Auto companies can't explore the potential for fuel cell technology as
the ultimate solution to our world's energy and environmental challenges by
ourselves. Our customers are true pioneers and leaders in the effort to
bring fuel cell technology to the marketplace," said Mendel.

Ron Yerxa, a film producer and partner at Bona Fide Productions, is a
long-time car enthusiast and advocate for the environment. He lives with
his wife, Annette Ballester, in Santa Monica, California. Yerxa first
learned of the FCX Concept vehicle from a car magazine and contacted
American Honda to share his interest and enthusiasm.

Jon Spallino, partner and Chief Financial Officer of an Irvine,
California-based engineering and construction firm and the world's first
retail customer of a hydrogen fuel cell-powered vehicle, is excited to
trade in his first-generation FCX for the all-new FCX Clarity. Having lived
with fuel cell technology for three years now, Spallino and his family,
residents of Redondo Beach, California, are looking forward to the all-new
vehicle's vastly improved performance, enhanced features, improved fuel
efficiency, and advanced four-door, four-passenger sedan design.

Actress and children's book author Jamie Lee Curtis and her husband,
filmmaker Christopher Guest, also live with their family in Santa Monica.
Curtis and Guest have owned other alternative fuel and hybrid vehicles, and
they continue to seek out ways to live and advocate a greener lifestyle.

Jim Salomon, a business owner and car enthusiast, resides in Newport
Beach, California with his family and will be American Honda's first retail
customer to regularly refuel at the recently renovated Irvine hydrogen
refueling station. Salomon and his family live in a home he designed and
built with an emphasis on energy efficiency as well as recycled and
sustainable materials.

Actress and green advocate Laura Harris learned about the FCX Clarity
from a friend and test drove a prototype car at the Los Angeles auto show
in November 2007. Canadian-born Harris lives in Silverlake, California, and
will refuel primarily in Burbank. Lessons learned from her usage patterns
and experiences can help pave the way for eventual market expansion outside
of the Irvine, Torrance, and Santa Monica areas.

Honda previously announced plans to deliver about 200 FCX Clarity
hydrogen fuel cell-powered vehicles in the U.S. and Japan to customers in
the first three years of production, with leases beginning in July. The
lease program marks the world's first large-scale retail initiative for
fuel cell vehicle technology.

First-ever Fuel Cell Vehicle Dealership Network

Reinforcing its commitment to further advance Honda fuel cell
technology, American Honda announced that three Southern California
dealerships will comprise the world's first fuel cell automobile dealership
network. Power Honda Costa Mesa, Honda of Santa Monica and Scott Robinson
Honda are each located in close proximity to hydrogen refueling stations
and will be well-positioned to support Honda's growing base of FCX Clarity
customers.

American Honda is working with its dealer partners to implement
processes for fuel cell vehicle lease, delivery and service support for the
duration of their leases. Establishing a dedicated sales network and
service infrastructure provides customers with the best balance of
convenience and the highest quality of service. When the FCX Clarity
requires periodic maintenance, customers will simply schedule a visit with
their local FCX Clarity dealer.

American Honda will perform all required work at its specialized fuel
cell service facility, in the greater Los Angeles area. Upon completion of
the work, the dealer will return the vehicle to the customer.

About the FCX Clarity

The FCX Clarity is a next-generation, hydrogen powered fuel
cell-powered vehicle. Propelled by an electric motor that runs on
electricity generated in the fuel cell, the vehicle's only emission is
water, and its fuel efficiency is three times that of a modern
gasoline-powered automobile. Based on the entirely-new Honda V Flow fuel
cell platform, and powered by a highly compact, efficient and powerful new
Honda V Flow fuel cell stack, the FCX Clarity marks the significant
progress Honda continues to make in advancing the real-world performance
and appeal of the fuel cell car. Significant advances over Honda's previous
generation FCX include:


-- an advanced new four passenger sedan design
-- a greater than 30 percent increase in driving range up to 280 miles(1)
-- a 25 percent increase in combined fuel economy to 72 miles/kg-H2(1)
(74 mpg GGE )
-- a 50 percent improvement in fuel stack power output density by volume
-- a 40 percent smaller and 50 percent lighter new lithium ion battery
pack

Honda is responsible for the development of the world's first fuel cell
car (Honda FCX) to be certified for regular commercial use by the U.S. EPA
and California Air Resources Board; the first deployment of a fuel cell car
with a fleet customer; and the first individual retail customer for a fuel
cell vehicle.

(1) Based on official 2008 EPA estimated range and fuel efficiency
values

Understanding the Prius

Read the following excerpt from cleangreecars and tell me, can you point out the flaw?

Patriot vs the Prius - Clean Green Cars

However, to get the real figure, we calculated consumption based on how much fuel each car had used over the 160 miles. The result was astonishing: both cars had used nearly identical amounts of fuel. The Jeep had averaged 38.9 mpg - only 3.1 mpg less than its computer had recorded. However, the computer of the Prius appeared to be telling whoppers: it actually achieved just 39.9 mpg - a massive 17.1 mpg less than it had claimed.

It's pretty simple, if you know about the Prius bladder. You see, the Prius has a resin bladder instead of a fuel tank. Some days, you can put 8 or 9 gallons in, other days you can put in a few more. Some drivers recommend you rock the car gently to 'make more room' before you try to fill the tank some more.

So, you can't measure fuel economy off of one tank. A better test would be to run several tanks through, or just trust the computer display. (I wouldn't fully trust the computer display, but you're going to get a better estimate than this 'test' team did.)

Another point they really need to emphasize is the Patriot is running on diesel, not gas. That creates a difference in what you're comparing and they really should have done a better job in interpreting their results.

But putting that aside for now, if the testers had spent one second running their results past anyone who owns or knows about the Prius, they would have saved themselves some embarrassment. I really can't understand why they thought their results were valid. Do they think the government testing facilities are that bad? Do they disbelieve all the other sources around? Did they not look at all? Or did they really think they somehow uncovered a massive cover-up on hybrid fuel economy?

If you know about the resin bladder, you probably understand why I had to laugh when I read their conclusion.

Whereas, the first impressions of the Patriot had been overwhelmingly negative - it's an SUV with interior plastics apparently supplied by a Chinese Christmas cracker factory - it converted us by the end of the day. It had been a better experience for both driver (more pleasant to drive) and passenger (more space). Our test also raises the question over the economy of hybrids overall - a subject to which we will be returning.

I hope they do return to the subject. I also hope they get it right next time.

For more comments on this story, head on over to reddit.

DOE Awards Ford, GM, and GE $30 Million to Develop Plug-In Hybrids

The DOE is awarding $30 million in grants to GM, Ford and GE (plus partners) to develop Plug-in Hybrid Electric Vehicles (PHEV) capable of traveling 40 miles without recharging. With 70% of the US traveling 40 miles or less every day, the DOE hopes to reduce our oil dependence and will help to advance clean vehicle technologies.

Since each award winner must develop and demonstrate 80 PHEVs over the next three years, the DOE is guaranteeing a small test fleet of plug-ins. But PHEVs are almost a certainty in the next two or three years. Just look at what GM is doing with the Volt.

There are two things that need to happen over the next few years to make PHEVs a true game changer. 1) Battery development and 2) cost cutting. Mind you, those two things could be cut into 1 thing if you just cut costs on advanced battery production.

Press Release Follows:

WASHINGTON – U.S. Department of Energy (DOE) Assistant Secretary of Energy Efficiency and Renewable Energy Andy Karsner today announced up to $30 million in funding over three years for three cost-shared Plug-in Hybrid Electric Vehicles (PHEVs) demonstration and development projects. The selected projects will accelerate the development of PHEVs capable of traveling up to 40 miles without recharging, which includes most daily roundtrip commutes and satisfies 70 percent of the average daily travel in the U. S. The projects will also address critical barriers to achieving DOE’s goal of making PHEVs cost-competitive by 2014 and ready for commercialization by 2016.

“The projects announced today demonstrate a shared public-private sector commitment to advance clean vehicle technologies and will help reduce our dependence on foreign oil while also confronting the serious challenge of global climate change,” DOE Assistant Secretary Andy Karsner said. “The Department remains committed to the research, development and deployment of cleaner, more efficient vehicle options for consumers from laboratory to the street.”

Assistant Secretary Karsner made today’s announcements at the Plug-In Electric Vehicles 2008: What Role for Washington? conference, sponsored by the Brookings Institution and Google.org. The projects selected will be developed between Fiscal Years 2008-11 and demonstrated in geographically diverse regions to identify performance, operation, and fuel economy in a real-world environment. The goal is to develop PHEVs that can be mass produced, compete effectively in the marketplace, and substantially reduce petroleum consumption by offering fuel flexibility to American consumers. DOE’s funding for these projects, which is subject to Congressional appropriations, will be combined with an industry cost share of 50 percent.

In addition to announced projects, DOE expanded its own fleet of alternative fuel and advanced technology vehicles with the addition of a Ford Escape Plug-In Hybrid Flex-Fuel Vehicle, capable of running on E85, 85 percent ethanol, 15 percent gasoline. This vehicle demonstrates the capacity of flexible fuel technology to reduce petroleum use to almost zero. This Ford Escape flexible fuel PHEV when refueling only on cellulosic E85 or electricity would consume less than 75 gallons of gasoline per year – the equivalent of over 150 mpg - and reduce CO2 emissions by up to 93 percent. The Department’s new Ford Escape will be used to transport DOE employees to official events and meetings in the Washington, D.C. area.

PHEVs are hybrid vehicles that can be driven in electric-only or hybrid modes and recharged from a standard electric outlet. They offer increased energy efficiency and decreased petroleum consumption by using electricity as the primary fuel for urban driving. This is the first round of selections under DOE’s PHEV Technology Acceleration and Deployment Activity funding opportunity announcement. A second round of applications is due July 18, 2008. The following three projects were selected:

General Motors has been selected for negotiation of an award for a project aimed at enhancement of Lithium-Ion battery packs, charging systems, powertrain development, vehicle integration, and vehicle validation. Following development, the PHEVs will be deployed over a three year period into a demonstration fleet in three regions of the U.S. Other team members include Electric Power Research Institute (EPRI), University of Michigan Transportation Research Institute, and the Michigan Economic Development Corporation.

Ford Motor Company has been selected for negotiation of an award for a project to identify a pathway that accelerates commercial mass-production of PHEVs. The project will focus on development of battery systems and deployment of prototype PHEVs. The project will test and demonstrate the propulsion system design, controls, and communications necessary to develop a viable PHEV production program. Team members include Southern California Edison, Electric Power Research Institute, and Johnson Controls-Saft, Inc.

General Electric has been selected for negotiation of an award for a demonstration of PHEVs that relies upon an innovative dual-battery energy storage system capable of 40 miles accumulated electric driving range. The project will focus on developing the dual-battery energy storage system in parallel with vehicle integration. GE is partnering with Chrysler for this project.

High Gas Prices? Small Cars are the Answer... Or Should I Say Mini?

With gas prices going over $4 a gallon on average in the US, truck and SUV sales have begun to suffer. Hybrid cars and other fuel efficient vehicle interest has begun to climb. But which small car to look at? That's where brand awareness comes through for cars like the MINI.

The MINI shows up on the list of most fuel efficient cars of 2008, but you don't need me to tell you that. You already know it just by looking at it. You also know it's a MINI just by looking at it.

That sort of common awareness leads to increased interest in the MINI when you start looking for a smaller car. The MINI site (MINIUSA.com) has seen a huge surge in visitors, up 88.9% for the month of May.

Over the past six years, sales of the MINI have nearly doubled. More recently, sales were up 36% in the month of May.

"MINI has always been proud of its incredible fuel efficiency -- we get 37 miles to the gallon, which is as good as most hybrids -- and it has certainly been one of the reasons people choose to drive our cars," said Jim McDowell, Vice President of MINI USA. "What we're finding is that literally hundreds of thousands of people who haven't thought about a MINI before are checking us out. We're thrilled to have them -- and hope they join those of us who discovered a long time ago that you can have a hip, cool car that's fun to drive -- and still save at the pump. The world is becoming more MINI every day."

Is There a Acronym for Flex-Fuel Plug-In Hybrid SUV?

Ford has delivered the first ever flex-fuel plug-in hybrid Escape SUV to the US DOE for further testing. The test vehicle runs on E85 or on gasoline, and can have its lithium-ion battery pack charged up overnight. That allows it to run up to 30 miles (at less than 40 mph) on all electric power.

The four cylinder hybrid engine runs like a traditional hybrid at higher speeds or when the battery pack becomes depleted.

When fueled by E85 ethanol, which has a lower energy content than gasoline, fuel economy can reach up to 88 mpg in urban driving and up to 50 mpg on the highway. Based on current estimates, the vehicle would emit 60 percent less CO² than a conventional gasoline powered vehicle. That CO² reduction could reach 90 percent if cellulosic ethanol is used in place of gasoline.

Press Release Follows:

WASHINGTON, D.C., June 11 – Ford Motor Company broke new ground by delivering its first-ever flexible fuel capable plug-in hybrid SUV to the U.S. Department of Energy.

The Ford Escape Plug-in Hybrid, which runs on gasoline or E85, is part of a demonstration fleet Ford is developing in a partnership with Southern California Edison and the Electric Power Research Institute. Advanced testing on the vehicles is underway in California. The Department of Energy will include the Escape Flexible Fuel Plug-in Hybrid in its fleet to showcase the marriage of technologies and obtain real world experience with the vehicle as it continues its support of advanced fuel technologies.

“Plug-in hybrid technology holds great promise to reduce the nation’s dependence on petroleum and reduce CO² emissions related to climate change, both significant issues for America,” said Mark Fields, President of the Americas, Ford Motor Company. “As a leader in both hybrid and flexible fuel technology, Ford is well positioned to bring the two together in a plug-in vehicle.”

The vehicle is equipped with a 10 kilowatt advanced lithium ion energy battery supplied by Johnson-Controls/Saft that stores enough electric energy to drive up to 30 miles at speeds of up to 40 mph. When fueled by E85 ethanol, which has a lower energy content than gasoline, fuel economy can reach up to 88 mpg in urban driving and up to 50 mpg on the highway. Based on current estimates, the vehicle would emit 60 percent less CO² than a conventional gasoline powered vehicle. That CO² reduction could reach 90 percent if cellulosic ethanol is used in place of gasoline.

The flexible fuel Escape Plug-in Hybrid runs up to 30 miles at speeds less than 40 mph in electric mode until the battery’s charge is 70 percent depleted. At higher speeds or when the battery is depleted, the vehicle switches to traditional hybrid mode – a fuel efficient four-cylinder engine assisted by the lithium ion battery. The vehicle leased to the DOE also is equipped with an innovative interactive vehicle display, which shows the driver how efficiently the vehicle is operating and calculates the fuel savings for each trip – part of Ford's efforts to help our customers drive smart and green.

“There is enormous interest in the country in the electrification of vehicles,” Fields said. “We recognize commercialization of plug-ins, powered by gasoline or biofuels, may represent part of a long-term energy solution, but significant challenges remain to bringing this technology to market.”

This vehicle is one of 20 demonstration plug-in hybrids that Ford is building as part of a collaboration with Southern California Edison and the Electric Power Research Institute to accelerate the commercialization of plug-in hybrids. The partnership’s goals include the development and creation of new business models to make plug-in hybrids possible; development of open architectures, standards and specifications; and a greater understanding of customer demand based on realistic expectations and customer usage needs

“We are moving from an independent set of solutions to an integrated future. With plug-in hybrids, the automotive and utility industries are connected by a common fuel with the potential to significantly change our transportation and energy future," said Nancy Gioia, director of Ford’s Sustainable Mobility Technologies and Hybrid Vehicle Programs.

The first of the Escape Plug-in Hybrid SUV was delivered to Southern California Edison in December and road testing has begun. The vehicle delivered to the DOE today represents the first flexible fuel Escape Plug-in Hybrid developed as part of the partnership.

High Demand is Pushing Hybrid Prices Up

With the high price of gas, cars that get better fuel economy, like hybrids, are in high demand. Despite that, there is a limited number of hybrids available to be sold. Bring in your old economics textbook and you'll quickly realize that mean the price is going to go up.

With that rise in prices, some are looking at a longer period of time to make up the price differential you have to pay for the hybrid system. Edmunds released estimates just three months ago and they say things have changed drastically for some of the models.

Please note their method is a naive one. You should take into account resale value, cost to own (repair costs), insurance, access to the HOV lane, free parking, tax credits (federal, state or local), etc..., not just gas savings.

But if you restrict yourself to just gas savings, Edmunds.com says only the Prius, Altima and Tahoe Hybrids have a chance of making up the price differential in less than five years off of gas savings alone.

The Ford Escape (and Mercury Mariner) and Saturn Vue Hybrid all saw a slight dip in the length of time it takes. The time to make up the difference on a Prius remained the same. All the other hybrids saw an increase in time.

The worst change comes from the hybrid that takes the longest to make up the difference. The Lexus 600h takes 99.6 years (estimates assume 15,000 miles a year and gas price remain stable). That's an increase of over 30 years. That's because you only save $189 a year, while the premium cost estimate is $18,858.

The Chevy Malibu 'payback' time has increase 2.7 years to 11.1 years. The hybrid premium is $1,867 and the gas savings are estimated at $169 a year.

It should be noted, however, that the Chevy Malibu is eligible for a federal tax credit. Despite it's mild hybrid status, the payback time, if you qualify for the tax credit, will be shorter than 11 years.

100 mpg? Hold Your Horses Says Toyota

Toyota executive Bill Reinert told consumers to relax a little bit. Not everyone is going to get 100 mpg if they start driving plug-in hybrids.

"When we see the (claims of) 100 mile-per-gallon stuff, not everybody's going to get 100 miles per gallon," Reinert said.

Isn't it a little early to warn people to calm down?

But he has a good point. Google.org has been testing plug-in hybrids at their campus in California. They post their results regularly and if you've been keeping track, you'll notice they haven't been getting close to 100 mpg. (They've been sitting at 66 mpg.)

It all depends on how you drive. Even if you have a car that's capable of going 40 miles on all electric power, that doesn't mean you are going to get to 40 miles before the gas engine has to recharge the battery. Quick starts, hard acceleration to get up to highway speeds, etc... all will push your fuel economy down, just as it does today.

Reinert was speaking at the plug-in conference organized by the Brookings Institution think tank and Google.org.

Source: Toyota exec tries to cool plug-in fever - Automotive News

Montreal Wants More Hybrid Taxis on the Road

Montreal is pledging to put more hybrid taxis on the road, and soon. So far, Montreal has 4 hybrid taxis on the clock. That's four out of 4,595 taxis. Victoria has a hybrid taxi rate of 36%, Vancouver sits at 10% and Winnipeg has 26%.

As part of their new 20-year transportation plan, a committee will take up the issue. Recommendations on how to encourage more hybrids to be brought in will come out by the end of the year.

Source: Montreal pledges to increase hybrid taxis

Toyota Claims the Top Spot for Fuel Efficiency

Toyota has claimed the top spot on fuel economy of any full-line manufacturer as filed with the NHTSA as part of the CAFE requirements.

Toyota has eight cars rated at over 30 mpg (highway).

MODEL - EPA HWY RATING

• PRIUS - 45 mpg
• COROLLA - 35 to 37 mpg
• YARIS - 35 to 36 mpg
• CAMRY HYBRID - 34 mpg
• SCION xD - 32 to 33 mpg
• MATRIX - 31 to 33 mpg
• 4-CYL. CAMRY - 31 mpg
• SOLARA - 31 mpg

Two of their top vehicles are hybrids, the Prius and Camry Hybrid.

According to Toyota, their fuel economy numbers are being improved by several technological advances including

• Toyota's Hybrid Synergy Drive(R),
• variable valve timing with intelligence (VVT-i),
• improvements in fuel injection technology,
• Toyota's drive by wire system,
• transmission enhancements and
• lighter weight vehicle materials.

*According to Corporate Average Fuel Economy filed with NHTSA

Nissan to Increase Production of the Altima

Nissan will begin a third shift at their Canton, MS plant to put more Altimas on the road. Nissan sold 34,428 Altima Sedan, Hybrid and Coupes in the month of May. That was a 38.3% increase from the previous year.

Concerns about high gas prices are driving the sales of smaller, more fuel efficient cars in the US and the Altima has been very popular. There are some experts who pick the Altima Hybrid over the Camry Hybrid, but there are some limitations.

Because Nissan has not developed their own hybrid system, yet, they rely on the Toyota Hybrid Synergy Drive in the 2008 Hybrid Altima. And because they (reportedly) lose money on each hybrid they sell, they limit sales of the 2008 Altima Hybrid to only eight states. Those eight states happen to have the strictest guidelines in emissions.

"With flexibility built into our systems, we’re able to quickly adapt to the changing landscape of the marketplace," said Bill Krueger, senior vice president of Manufacturing, Purchasing, Supply Chain Management, and Total Customer Satisfaction for the Americas at Nissan North America, Inc. "Nissan Altima is extremely popular with customers that demand durability, quality and fuel-efficiency and our systems are well designed to meet that growing demand."

To make more room for the Altima production, the Canton truck system will be reduced to one shift (again, probably because of the high gas prices). The shift in production will begin at the end of June and will be in full gear by the beginning of September. The shift will allow them to produce 2,000 more a month.

At the powertrain assembly plant in Decherd, Tenn., work schedules will be adjusted to meet the revised production demand.

Saturn Drops Green Line for Hybrid

Saturn is dropping the 'Green Line' name from their hybrid car line-up (Source: Saturn to ditch 'Green Line' nameplate for 2009). It seems customers are looking for hybrids and aren't finding them under the Saturn name.

“It was simply a practical matter. As we expand our hybrid lineup, the names were getting a bit long. It's hard to write a short sentence about the Saturn Vue Green Line 2-Mode Hybrid," Saturn spokesman Mike Morrissey told KickingTires.com.

So instead of Saturn Vue Green Line and Aura Green Line, the 2009 model year vehicles will become Vue Hybrid and Aura Hybrid.

Hopefully, customers will be able to buy more than 100 per month, too. GM, like the other car makers, has been suffering from a lack of battery packs for their hybrid line-up. Unlike the others, GM had a problem with the nickel metal hydride battery packs used in their mild hybrid line-up. Leaks were causing a loss of power, which forced GM to recall the battery packs and replace them with ones that were in line for the new hybrid cars. That put a severe crimp on the number of new hybrid cars they could sell.

The battery issue only affected the Saturn line-up of mild hybrids.

EIA Predicts Oil and Gas Prices Will Continue to Rise

The Dept of Energy's Energy Information Administration is now predicting gas prices will peak at $4.15 per gallon sometime in August. The EIA is also predicting gas prices will average $3.78 per gallon for the year.

Diesel prices are predicted to remain steady at $4.71 per gallon for the next few months, but the average price will be less than that over the next few years, at $4.32 a gallon.

The EIA also predicts:

• The spot price of natural gas will average $11 per Mcf for the year.
• Electricity prices will rise 3.7% in 2008 and 3.6% in 2009.

Crude oil projections are now at $122 per barrel in 2008 and $126 per barrel in 2009, which would be a drop in current prices. It would also be a shift in the way the EIA has predicted things to go, since they have been projecting oil to drop in price in 2009. (The EIA predictions have not exactly been spot on lately. For instance, they predicted gas prices to be at $3.60 in June)

Last month, the EIA projected oil at $110 per barrel in 2008 and $103 per barrel in 2009. The EIA now expects a lower increase in oil production from countries outside of OPEC.

See the current and previous issues of the "Short-Term Energy Outlook" on the EIA Web site, and for the latest prices on oil, gasoline, and diesel fuel, see the New York Mercantile Exchange Web site and the American Automobile Association's "Fuel Gauge Report."

Photo from flickr by marshall astor.

Toyota Promises a Plug-In Hybrid by 2010

In a far reaching outline for the future, Toyota President Katsuaki Watanabe laid out the future for Toyota far in the next decade at a press conference on Wednesday.

Toyota promised they will have a plug-in hybrid on the road in Japan, the US and in Europe by 2010. The new plug-in hybrid will target fleet customers and will be powered by lithium-ion battery packs.

The battery packs that will power the new plug-in hybrids will begin production in 2009 and will be ready for the plug-in cars by 2010. Toyota is partnering with Matsushiat Electric Industrial Co., which makes Panasonic products.

"Toyota also aims to develop a battery that significantly outperforms lithium-ion batteries," Watanabe said.

And in the really long term lookout, Watanabe said Toyota will be have hybrid version on all models sometime between 2020 to 2029.

Other fuel economy improvements from Toyota include:

• A reduction in size and weight. This will be exemplified by the IQ, a car that will seat four and yet be less than 3 meters long.
• A new 1.3-liter and 2.5-liter engines will be introduced in 2008. The new 1.3-liter gasoline engine is equipped with the newly developed Toyota Stop-Start system.
• While advancing multi-stage automatic transmissions and continuously variable transmissions, Toyota will introduce a highly efficient compact six-speed manual transmission in the fall of 2008.

In the realm of hybrids:

• TMC's aim is to achieve hybrid vehicle sales of 1 million vehicles annually as early in the 2010s as possible and to strive for further popularization.
• TMC is working to further reduce the size, weight and cost of motors, inverters, batteries and other hybrid system components.
• In addition to already producing hybrid vehicles in China and the United States, TMC recently decided to produce hybrid vehicles in Thailand and Australia. We intend to continue to expand our overseas hybrid vehicle production efforts.

As for other 'fuels'

• Toyota is also looking to accelerate development of small electric vehicles for mass production.
• MC is reinforcing its structure of survey-based global energy analysis by establishing energy research organizations in Japan and the United States.
• TMC is conducting research on a cellulosic ethanol that can both avert competition with food supplies and ensure a stable supply. The distinctive feature of TMC's research is the focus on using technologies that involve yeast.
• TMC is conducting joint research with Nippon Oil Corporation on high-concentration bio hydrofined diesel (also known as "BHD") as a bio-fuel alternative to petroleum-based diesel. So far, the research has led to vast improvement in the oxidative stability of BHD, enabling the fuel to perform on par with conventional diesel.
• TMC is conducting research on biomass-to-liquid (also known as "BTL"), which is derived from synthesizing gas made from all types of biomass, including cellulose.

Start-Stop Comes to Next Generation VW Golf

VW will introduce start-stop technology to the next generation Golf (known as the Rabbit in the US). The sixth generation Golf, available in late 2008 or early 2009 will come with the ability to stop it's engine when the car comes to a stop.

VW labels its most fuel efficient models as BlueMotion. The BlueMotion Golf model will come standard with start-stop and will come with a smaller, more efficient gas engine. The technology will be available as an option in other models.

VW is looking to add stop-start to other models, as well.

Source: New Golf will get stop-start - Automotive News Europe

Demand for Gas Falls in the US in Response to Record Gas Prices

As gas prices have risen, demand has begun to fall. According to Mastercard Advisors, demand for U.S. retail gasoline has fallen 3.8 percent from last year. Year to date demand is down 1.9 percent from last year.

Which means we've hit a pivot point for how much people will take from gas prices. As oil prices continue to hit record highs, pushing gas prices up, people are starting to drive less.

We've already seen it happening in California, but now a nationwide trend is being felt.

The good news is lower demand will keep a downward pressure on oil prices. The bad news is it doesn't seem to be enough as oil jumped up again this morning (not to a record high for once, but still...).

In case you're wondering, the surge in oil price this morning comes from worldwide demand still increasing, even as it falters in the U.S.

"The four-week moving average, which tends to smooth seasonal fluctuations, indicates that Americans are changing driving habits and consuming less gasoline," McNamara said.

Too bad more hybrids aren't available right now. The likelihood of selling cars that promise better fuel economy gets better every time the price of gas rises. But limitations on battery supplies have cut sales, leading to waiting lists and increased pricetags at the dealerships.

GM Pushes Cash Back On Tahoe and Yukon Hybrid SUVs

GM is beginning to offer up to $6,000 cash back on their large SUVs and pickups, including the new hybrid models. With a sales goal of 10,000 vehicles in the first year, but only 1,735 units sold through May, GM needs something to get customers to overlook the low mileage.

The hybrid Tahoe and Yukon do improve fuel economy by 50% in city driving. But that only raises their fuel economy to just over 20 mpg. That sort of difference at the low end of the fuel economy spectrum makes a bigger difference than at the higher end. But 20 mpg just doesn't cut it for a lot of folks when gas stands at $4 a gallon.

SUVs, large pickups and other large cars are seeing a real backlash in sales, while smaller cars with four cylinder engines have become the majority.

The GM cash back program is starting June 7 and will run through the end of the month. The cash back program starts at $4,000, but existing offers could add another $2,000.

GM is also beginning a marketing push to bring awareness that these hybrids exist.

"There's very little awareness that we even have these products," concedes Mark LaNeve, GM's vice president for North American sales, service and marketing. "We're going to be constrained by battery availability, but we still think that we could work it up to 5 to 10 percent of our full-sized SUV sales."

Found via ABG.

Toyota Fuel Cell Hybrid Vehicle Advanced Model

Toyota has doubled the range of its fuel cell hybrid vehicle (FCHV-adv) mostly by doubling the maximum storage pressure. The maximum storage pressure went from 35 to 70 Mpa, which allows the new fuel cell hybrid to more than double it's range from 205 miles (330 km) to 516 miles (830 km).

They also improved fuel efficiency by 25% through improvements in the fuel cell unit performance, by enhancing the regenerative brake system and by reducing energy consumed by the auxiliary system.

They also improved low temperature starts. Internally produced water was interfering with the Membrane Electrode Assembly (MEA). Toyota engineers have been working to alleviate this issue. Refinements have allowed starts at as low as -30 degrees Celsius.

The FCHV-adv will be available for leasing later this year in Japan. Toyota does not know when it will become available elsewhere.

The fuel cell hybrid mates an electric motor to a fuel cell stack, which means the only emissions are water vapor.

Comparison between the old FCHV and the advanced FCHV from Toyota

Vehicle Specifications

Vehicle		TOYOTA FCHV-adv	TOYOTA FCHV
Overall length/width/height (mm)		4,735/1,815/1,685	4,735/1,815/1,685
Weight (kg)		1,880	1,880
Seating capacity		5	5
Maximum cruising range (km)* 10-15 test cycle/JC08 test cycle		Approx. 830/Approx. 760	Approx. 330/ -
Maximum speed (km/h)		155	155
Fuel cell	Name	Toyota FC Stack	Toyota FC Stack
	Type	Polymer electrolyte	Polymer electrolyte
	Output (kW)	90	90
Motor	Type	Permanent magnet	Permanent magnet
	Maximum output in kW (ps)	90 (122)	90 (122)
	Maximum torque in N-m (kg-m)	260 (26.5)	260 (26.5)
Fuel		Hydrogen	Hydrogen
Storage system		High-pressure storage tanks	High-pressure storage tanks
Maximum storage pressure (MPa)		70	35
Tank capacity (L)		156	148
Battery		Nickel-metal hydride	Nickel-metal hydride

*As based on TMC calculations

Australia May Get Locally Built Hybrids in 2010

Toyota may be planning on building the hybrid Camry in Australia starting in 2010 according to a Reuters report. The most likely site is the Alton factory in Victoria, where the Camry is already being produced.

More details may become available when Australian Prime Minister Kevin Rudd meets with Toyota President Katsuaki Watanabe on Tuesday.

Thailand may expand its Camry production with the hybrid version. Early reports say each plant will start producing 10,00 a year.

The new Camry Hybrid would be sold in Australia, thus avoiding the import duty. Although the import duty is scheduled to be halved in 2010. Australia has had limited success in getting hybrids sold.

Two-thirds of the vehicles built at the Altona plant were exported to the middle east.

Update (June 10, 2008): Toyota confirmed they will aim for 10,000 units a year by 2010. Australia is offering Toyota A$35 million ($33 million) in grant money to begin production according to Prime Minister Rudd.

Rudd made the announcement at a press conference in Japan on Tuesday.

The A$35 million will come out of the A$500 million green car innovation fund. That works out to A$700 a car if production numbers are met over the next five years.

Rudd pointed out the investment would be good for Australian motorists and the environment, saying there was nothing wrong with commonwealth funding for research and development (R&D). Rudd estimated the hybrid owner would save $1000 annually when driving 20,000 km a year.

Toyota President Katsuaki Watanabe said the grant will be used to cut the price of the hybrid so that it will be comparable to the conventional Camry.

"... we are making every effort to reduce cost ... (and) the green (car) innovation fund may also be taken into account in that context."

Hybrid Car Sales, May 2008

Hybrid car sales were down 23% in the month of May (about 10,000 units). That's the biggest drop-off ever for hybrids.

Automakers sold more hybrids in May 2007 than they had in any other month (see figure) after seeing a big drop in April of 2007. So, increasing sales this May was unlikely. But a 23% drop is still disconcerting.

Most of that drop can be assigned to the "limited availability" of the Toyota Prius, which usually makes up half of all hybrid car sales in the US. This month, Prius sales were down by 37%.

But blaming the Prius won't cut it, either. Only three hybrid vehicles, led by the Altima Hybrid which was up 96%, increased sales from last year. Honda increased sales of the Civic Hybrid by 3% and Lexus increased sales of the RX 400h by 23%. All other hybrid vehicles were down or had no comparison from last year.

With the big drop-off in monthly sales, comes a big drop-off in cumulative sales, which are down 13% for the year.

For most of the hybrid vehicles on the list, most of the drop-off does not come from a lack of demand, as days-to-turn are still low. Instead, it's a lack of hybrid vehicles to sell from the manufacturer. For instance, the overall rate of sales puts the Prius about where it was last year. In other words, if the rate keeps up, Toyota will sell just as many Prius this year as they did last.

Smaller car sales were way up in May. The Corolla, Camry, Accord and Civic passed the F-150 for place in the US as customers continue to search for some relief from high gas prices. That may indicate consumers are looking for relief from sticker shock at the pump, but are avoiding the higher prices you have to pay for the hybrid powertrain.

Toyota continues to dominate the market. 3 out of every 4 hybrids sold in the US come with a Toyota or Lexus badge. And, despite the drop-off in sales, 43% of them were a Prius.

Make	Model	May-07	May-08	% Change
Honda	Accord	439	16	-96%
Honda	Civic	4,520	4,676	3%
Honda	Insight	0	0	-
Toyota	Prius	24,009	15,011	-37%
Toyota	Highlander	3,312	2,644	-20%
Toyota	Camry	6,853	5,999	-12%
Toyota	GS 450h	181	98	-46%
Toyota	RX 400h	1,746	2,155	23%
Toyota	LS600hL	0	112	-
Ford	Escape/Mariner	3,214	2,378	-26%
Nissan	Altima	821	1,607	96%
GM	Yukon/Tahoe	0	589	-
Total		45,095	34,696	-23%
Make	Model	Cumulative, 2006	Cumulative, 2007	% Change
Honda	Accord	2,044	184	-91%
Honda	Civic	17,141	16,322	-5%
Honda	Insight	3	0	-100%
Toyota	Prius	94,503	79,677	-16%
Toyota	Highlander	14,312	11,542	-19%
Toyota	Camry	28,070	27,478	-2%
Toyota	GS 450h	994	386	-61%
Toyota	RX 400h	8,657	7,708	-11%
Toyota	LS600hL	0	564	-
Ford	Escape/Mariner	13,472	9,510	-29%
Nissan	Altima	2,776	4,242	53%
GM	Yukon/Tahoe	0	589	-
Total		181,972	157,613	-13%

It may also be a push-back from last month's 46% increase: Hybrid Car Sales, April 2008.

A Watershed Moment for Ford

The Ford F-150 is no longer the most popular vehicle in the US. In the month of May, four different sedans outsold the F-150 for the first time since 1991. Ford sold 42,973 F-150s. Honda sold 43,728 Accords, Toyota sold 51,292 Camrys (including 5,999 hybrids) and 52,826 Corollas. But the number one seller was the Honda Civic, with 53,299 vehicles sold. That includes 4,676 hybrid Civics.

According to Jim Farley, Ford group vice president for marketing and communications, "...May has been a watershed moment." He also said the loss of the F series' title for the month was a "significant development."

"So I think we're seeing a structural shift where, with the prices being high in the United States, we're seeing exactly what happened in Europe a number of years ago, where the customers are going to make economic decisions, and they're going to move toward smaller and medium-sized vehicles," said CEO Alan Mulally.

But that still doesn't explain it all.

Corolla sales, while up for May by 12.4% are actually down by 9.5% for the year. Camry sales have been flat. Toyota sales were down 4.3% in May, even though Honda and Nissan sales were up.

That gives you a good indication of where the automotive marketplace is right now. But I would still urge caution in promoting any wide-spread conclusions. With high gas prices, economic issues including the housing market in the US, and increasing regulations from the federal governments worldwide, the automotive marketplace is not very stable or easy to put a read on.

Hybrid Vehicle Penetration Has Increased Again.

Hybrid sales penetration (March 1-May 26) are up according to the latest PIN report from JD Powers. Diesel sales have fallen to 1.8% of the market from last year (3.1%), mostly due to the slow down in large truck sales. In the meantime, hybrid sales have increased from 3.1% to 3.5%. Gas-powered vehicle sales continue to dominate, however, making up almost 90% of all vehicle sales as flexible fuel vehicle share has also fallen.

Sales of hybrid cars have increased from last year, but part of the difference may be due to the falling sales in the other areas.

Hybrid penetration has slowly been increasing over the past few years. While other models have helped increase the penetration rate, the Prius has been the biggest difference maker by becoming one of the top 10 vehicles sold.