Tuesday, June 30, 2009

Consumer Reports on the Honda Insight

Consumer Reports does not like the Honda Insight and wasn't shy about telling the world how they feel about it. "The Insight achieved an excellent 38 mpg overall in CR's tests but fell short in ride quality, handling, interior noise, acceleration, rear-seat, access and visibility."

That doesn't sound appealing or promising.

"The Insight is the most disappointing Honda Consumer Reports has tested in a long time," said David Champion, senior director of CR's Auto Test Center. "The Insight is a noisy, stiff-riding car with clumsy handling that is nothing like the Fit on which it is based. Also, Electronic Stability Control is only available on the highline EX version."

The Honda Insight seats five and gets excellent fuel economy, but it's a noisy car with a stiff ride and clumsy handling. At its cornering limits, the Insight plows straight ahead early on in tight turns and the tail can slide out too quickly for stability control to completely prevent it. The Insight EX, ($21,790 Manufacturer's Suggested Retail Price as tested), is powered by a 1.3-liter four-cylinder engine with a 13-hp electric motor combine for 98 hp that delivers 38 mpg overall. The continuously variable transmission performs smoothly. Unlike a full hybrid, the Insight requires the gas engine to turn whenever the car is moving. Braking is Very Good. Cargo space behind the rear seats is adequate.

At the end of the day, the Insight fell to 21 out of 22 for small hatchbacks and wagons, slightly outpointing the Dodge Caliber because of its higher fuel economy rating.

The low rating will result in the Honda Insight being left out of the 'Recommended' rating by Consumer Reports.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Monday, June 29, 2009

2008 Saturn Vue Recall Notice

GM is recalling the 2008 Saturn Vue with body color outside door handles. It seems the door handles may bind or stick, which means the door might not latch when it's closed.

If the door doesn't latch, an unbelted occupant could fall out of the vehicle, which could certainly be dangerous. Chrome door handles are going to be used to replace the current door handles free of charge.

I'm not clear if this affects the hybrid Vue.

44,451 vehicles are being recalled beginning on or before August 18, 2009.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Toyota to Build Hybrd in UK

Toyota has plans to start building a hybrid Auris in the UK by the end of the year according to the Times.

The Burnaston plant near Derby was selected to build the hybid Auris hatchback, after months of negotiation with the government. Toyota is expecting some government assistance in the new production.

The Auris Hybrid will use the 1.8 litre engine from the Prius mated to an electric motor and is expected to get 72.4 mpg (I'm assuming that's imperial). The Auris is smaller and lighter than the Prius, so it should get a lower carbon dioxide rating.

It's expected to compete against the Insight, with a price tag similar to the cheaper hybrid from Honda.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Friday, June 26, 2009

Ford Sets Up Cash For Clunkers Website

Like Honda and Toyota, Ford now has a 'cash for clunkers' website up and running.  Unlike the others, Ford has set theirs up so that you can check to see if your current vehicle qualifies to be traded in (and subsequently crushed).  Check it out at www.letfordrecycleyourride.com (screenshot below).


Down at the bottom, they point out how you can also save money on some of their current models, which they obviously hope will inspire you not only to check your current car, but check out a Ford for your new vehicle.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Thursday, June 25, 2009

Honda Points Out Just About Any of Their Vehicles Qualify

Although it may be unnecessary to point out, Honda wants you to know their cars are fuel efficient.  In fact, almost every car they build qualifies for the new Cash for Clunkers program (to buy, not trade-in).

"You don't really need a complicated chart to find a fuel-efficient vehicle at a Honda dealer," said John Mendel, executive vice president of American Honda Motor Co., Inc. "We hope that this program will help consumers make the move into vehicles that are easier on both their wallets and the environment."

Honda cars that have a combined EPA fuel-economy rating of 22 MPG or more and may be eligible for payments under this program include:

  • 2009 Fit - All models
  • 2010 Insight - All models
  • 2009 Civic - All models
  • 2009 Accord - All models except V6 Coupe with manual transmission
Honda light trucks that have a combined EPA fuel-economy rating of 18 MPG or more and may be eligible for payments under this program include:
  • 2009 CR-V - All models
  • 2009 Element - All models
  • 2009 - 2010 Pilot - All models including 2WD and 4WD
  • 2009 - 2010 Odyssey - All models
Honda pickup trucks that meet "Large Light-Duty Truck" requirements with 17 MPG combined rating, wheelbase greater than 115 inches and GWVR less than 8,500 lbs. include:
  • 2009 Ridgeline - All models

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Toyota Sets Up Cash for Toyota Site

Taking advantage of the 'Cash for Clunkers' program, Toyota has set up a site specifically for pointing out which cars are available from Toyota and Scion, that qualify under the government program.  They list 15 cars, but are careful to point out that certain options will disallow some of those vehicles.

Qualifying Vehicles [1]
Toyota Scion
Avalon Matrix Tacoma tC
Camry Prius Tundra xB
Corolla Solara VENZA xD
FJ Cruiser Sienna Yaris
Highlander RAV4 4Runner
[1] Vehicles equipped with certain options may not qualify.
You can fill out a form to find local deals (dealerships, really) that are near you. I'm assuming that only the dealers that become certified under the CARS program will be shown here.

I expect other car companies will quickly follow suit with their own sites to 'help' consumers find their way.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Chrysler Renegotiates Contract with GM on Dual Mode Hybrid Engine

It seems Chrysler is trying to opt out of paying up their share for developing the dual mode hybrid engine. GM, Chrysler, and BMW partnered to create the dual-mode hybrid engine which is suitable for their SUVs and trucks. Chrysler used the new hybrid engine in the Chrysler Aspen and Dodge Durango hybrids, which were subsequently killed off after just two months.

But Chrysler still wants to use the dual-mode hybrid engine in the Dodge Ram 1500 Hybrid next year.

But when they filed for bankruptcy, the company was split into old Chrysler and new Chrysler (Source: GM Looks for Two-Mode Hybrid Payments from Chrysler - PickupTrucks.com News). The new Chrysler was bought by Fiat, but did not bring along many of the old contracts. And the contract with GM for the dual-mode hybrid engine was left behind. Now, Chrysler wants to renegotiate the contract they had with GM.

Chrysler would like to pay just $173,477 to settle the full $531,275 in costs associated with: open receivables, payments for 2008 manufacturing costs, tooling, pre-production transmissions for the Chrysler Aspen and Dodge Durango Two-Mode Hybrid SUVs (which were killed after only two months of production), and supply agreements.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

JD Powers Predicts Minimal Impact From Cash for Clunkers Program

JD Powers feels the 'Cash for Clunkers' Program will not have a considerable impact on 2009 car sales. Although the program could 'theoretically' increase sales by as much as 500,000, they are predicting actual sales will be 'considerably lower.'

The press release cites limitations to the funding and duration of the program will keep the program from having a significant impact. They also feel the stipulations will be confusing to consumers.

In other words, they feel consumers won't know or won't understand which cars qualify and which won't. Add that to the short term duration and you have little time to educate the consumers.

"It remains to be seen if the passage of Cash for Clunkers program will be enough to draw consumers to showrooms and spark sales, but we remain skeptical," said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates.
While I agree with their sentiments, I would add in the lack of impact on fuel economy increases even if the program was taken full advantage of (500,000 new cars sold).  Given the severe restrictions on fuel economy upgrades, there will be little impact on the US fuel economy. 

In fact, it's more likely to lead to longer term fuel efficiency issues.  The vehicles most likely to be traded in under the program will be trucks and SUVs that are under the mpg limit and are worth less than the $4,500 voucher.  Since a truck owner is most likely to buy a new truck (there's a reason they owned one, after all), and they only need to improve the fuel economy by 2 mpg, the long term impact is minimal.  Add in the new rules setting up fuel economy increases over the next few years, and the trucks that are being sold today will fall way behind the trucks that have to be sold in the next few years.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Social Aspect of the Volt

GM, from the beginning, has beeen very transparent with the development of the Volt.  That's not to say they share all the faults, tweaks, mistakes, set backs, etc... involved.  But they do let you know where it stands right now.  And right now, it's a week ahead of schedule.

As an aside, for anyone who's worked on a massive project like this, that may seem a little scary.  Being a week ahead means you've either put three or four times the amount of work budgeted up to this point, or you've just skipped a bunch of steps, and the mantra has become, they'll fix that in the next stage.

But back to where the Volt stands right now. GM released a video of the chief engineer Andrew Farah driving the first pre-production Volt.



Which is pretty smart, when you think about it. Between GM-Volt.com and other sites (including this one), the Chevy Volt has become one of the most talked about cars in history (Is there any way to measure such a thing?). They've turned it into a social phenomenon. One that surges and recedes, certainly, but is still there.

GM would love it if they really could become "Green Motors" with all the fringe benefits such a title would bestow. But in order to do that, they needed a vehicle, like the Prius, to symbolize that. GM is hoping that initial social group, the one that is so invested in it over the past years, will be the first to buy one. And then spread the word. But to do that, they need to get that initial group, the one that was so high on it right from the start, from start to finish over several years of work.

And they're doing it pretty well. It's releases like this one that allow that social group to stay in touch, stay invested, and stay involved.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Tuesday, June 23, 2009

Tesla Receives $465 Million in Loans from US DOE

Tesla was approved for low-interest loans from the Dept of Energy to accelerate the production of their affordable, fuel efficient electric vehicles. The loan is part of $24 billion program called the Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP).

Ford and Nissan are also receiving loans in the first round of approvals.  GM and Chrysler were excluded early on because of questions about their viability.

$365 Million on Assembly of Model S
Tesla will use $365 million for production engineering and assembly of the Model S, an all-electric family sedan that carries seven people and travels up to 300 miles per charge.

The Model S, according to Tesla, will have a base price in the mid $50K range, although Tesla expects most consumers will pay only $49,900 after a $7,500 US federal tax credit. They expect production to begin in late 2011. The assembly plant will employ about 1,000 workers.

$100 Million on Powertrain Manufacturing Plant in California
The other $100 million will be used in a powertrain manufacturing plant, which will employ about 650 people. The new plant is expected to be located in California, where Tesla is in the final stages of negotiation.

"Tesla will use the ATVM loan precisely the way that Congress intended -- as the capital needed to build sustainable transport," said Tesla CEO and Product Architect Elon Musk. "We are honored that the US government selected Tesla to be among the first companies to participate in this progressive program."


More on the Model S, Roadster, and new showrooms from Tesla press release:
The Model S sedan features exceptional performance, styling and utility, with unrivaled cargo and passenger space. Its floor-mounted powertrain is the culmination of a half-decade of engineering in the heart of California’s Silicon Valley, where Tesla developed the Roadster.

The highly acclaimed Roadster is the first production battery electric vehicle to travel more than 200 miles per charge and the first US- and EU-certified Lithium-Ion battery electric vehicle. With an estimated range of 244 miles per charge and zero tailpipe emissions, it’s the first production vehicle to offer supercar performance with a clean conscience.

Tesla has never applied for federal funds for the Roadster, an American sports car that consumes no gasoline whatsoever. Tesla expects the Roadster business unit to be profitable in the third quarter. Privately held Tesla will finance sales and marketing for the Model S through private capital.

Tesla has delivered more than 500 Roadsters to customers. Later this month, Tesla will begin delivering its second-generation Roadster and Roadster Sport, an even higher-performance vehicle.

Teslas do not require routine oil changes or exhaust system work. They have far fewer moving (and breakable) parts than internal combustion engine vehicles. They qualify for federal and state tax credits, rebates, sales tax exemptions, free parking, commuter-lane passes and other perks. The Model S costs roughly $5 to drive 230 miles – a bargain even if gasoline were less than $1 per gallon.

The Model S, which carries its charger onboard, can be recharged from any conventional outlet. Three battery pack choices will offer a range of 160, 230 or 300 miles per charge. Tesla is taking reservations online and at its two showrooms in California.

Tesla will expand its network of showrooms this summer with stores in New York, Chicago, Seattle and Miami. Tesla will open its London showroom June 25, followed by Munich and Monaco. Additional stores will be opened in Washington DC and Toronto.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

New York City Loses Again in Bid to Force Hybrid Taxis

New York City lost again (AP Story) in their battle to revamp the cities taxis into more fuel efficient fleets. U.S. District Judge Paul A. Crotty sided with the cab companies (once again), stating the city could not interfere with the federal jurisdiction to mandate laws relating to mileage or emissions.

New York City officials, after failing in their bid to mandate hybrid taxis, wanted to put in incentives (pdf) instead. In this case, the new rules would allow hybrid cab owners to charge more for their rentals, while more gas-hungry vehicles would see their rates slowly decrease.

"We do not believe that Congress intended to prohibit local governments from implementing incentive programs ... that encourage the purchase of environmentally friendly taxis. We are exploring our legal options," Michael A. Cardozo, head of the city's law department said in a statement.

The Metropolitan Taxicab Board of Trade, the lead plaintiff in the lawsuit, said it applauded the ruling for preventing the city "from imposing drastic financial penalties that would severely punish taxi fleets that operate nonhybrid vehicles."

"We have always preferred to work with the city of New York to adopt a viable plan for a safe, reliable, comfortable, economical and fuel-efficient taxi fleet. We renew that commitment today," it added. (Source: AP Story)
Considering the MTBOT has been the lead plaintiff in disallowing the plans set forth by the city to impose hybrid and more fuel efficient vehicles on the streets of NYC (plus this statement), that last statement seems a little off to me.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Nissan Gets $1.6 Billion in Loans From US Govt

As part of the $25 billion loan program set up to help auto makers retool or build factories to build more fuel efficient vehicles, Nissan announced they were approved, conditionally, to receive $1.6 billion. They will be using the money to modify the plant in Smyrna, Tenn to produce zero-emission vehicles and state-of-the-art lithium-ion battery packs to power them.

The loan is being awarded by the US Dept of Energy (DOE). Ford and Tesla will also receive loans as part of the Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP).

"This loan is an investment in America. It will help us put high-quality, affordable zero-emissions vehicles on our roads," said Dominique Thormann, senior vice president, Administration and Finance for NNA. "This project will expand our Smyrna plant and that's great economic news."

GM and Chrysler were not approved for loans early on because the government was questioning their viability.

Construction at Smyrna is scheduled to begin by the end of this year, after an environmental assessment is completed. Production is planned to start in late 2012.

Nissan is promising to offer electric vehicles with a full range of 100 miles in the US and Japan starting in 2010. The first production vehicles will be built in Japan, before production is shifted to the US.

"Nissan is confident that the Smyrna employees have the skill and dedication to take on this critical role in Nissan's future by launching a new form of transportation in the United States," said Susan Brennan, vice president, in charge of manufacturing at Smyrna. "This opens a new chapter in Nissan's 26-year manufacturing history in America."

The modifications of the Smyrna manufacturing plant include a new battery plant and changes in the existing structure for electric-vehicle assembly. When fully operational, the vehicle assembly plant will have the capacity to build 150,000 zero-emissions vehicles a year and the new plant will have an annual capacity of 200,000 batteries.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Government Set to Loan Billions to Ford, Tesla, and Nissan

Ford will receive $5.9 Billion in low interest loans from the US Govt Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP).  The funding will go towards transforming factories in Illinois, Kentucky, Michigan, Missouri and Ohio to produce 13 more fuel efficient models.  Tesla ($465 million) and Nissan ($1.6 billion) were also approved to receive some of the low-interest loans.

From the DOE press release:

Ford Motor Company will receive $5.9 billion in loans through 2011 to help finance numerous engineering advances to traditional internal combustion engines and electrified vehicles. In addition, theses loans will help the company convert two truck plants to the production of cars. Ford will be raising the fuel efficiency of more than a dozen popular models, including the Focus, Escape, Taurus and F-150, representing close to two million new vehicles annually and helping to transform nearly 35,000 employees to green engineering and manufacturing jobs in factories across 5 states: Illinois, Kentucky, Michigan, Missouri, and Ohio. Ford is driving a major upgrade, leveraging a portfolio of technologies, including the direct injection, smart turbocharging EcoBoost engine, advanced transmissions, and new hybrid technologies.

The facilities that will be impacted by today’s announcement include: Chicago Assembly, Louisville Assembly, Dearborn Assembly, Dearborn Engine, Livonia Transmission, Michigan Assembly, Van Dyke Transmission, Kansas City Assembly, Cleveland Engine, Lima Engine, and Sharonville Transmission.
GM and Chrysler were told their finances have to improve before they can receive any loans from the government's program to loan billions to retool factories in order to make more fuel efficient vehicles. The program was set up by Bush before the TARP program began.

The car companies at the time wanted the loan program, but said the funds would not be available in time to help them survive. Thus, the loans that GM and Chrysler eventually took which allowed them to survive for a few months more before going into bankruptcy.

Ford President and CEO Alan Mulally released this statement on the government loan program:
"Ford Motor Company is proud to be among the first automakers deemed by the government to be among the best companies with the best technologies in American manufacturing and fuel efficiency. This green partnership between Ford and the U.S. government will help accelerate the development of advanced technologies for even better fuel efficiency and emissions. Ford is absolutely committed to fuel economy leadership with every new model we introduce. In fact, we plan to invest nearly $14 billion in advanced technology vehicles in the next seven years. Our partnership with the Department of Energy also will help retool our U.S. plants more quickly to produce fuel efficient vehicles and help meet the new, rigorous fuel-economy requirements."
Ford anticiaptes they will begin repaying the loans back in 2012

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Friday, June 19, 2009

Prius Sales Top 180,000 Sales in Japan

The Toyota Prius has had 180,000 pre-sales in Japan over the past few months. In comparision, Toyota has sold under 43,000 units from January to May this year in the US. The release of the next generation Prius, coupled with government incentives, has sent demand for the Toyota hybrid skyrocketing. (Source: Toyota gets 180,000 orders for new Prius hybrid)


Prius sales in the US have dropped in anticipation of the new generation being released this month. Add in lower gas prices and the recession and sales have been down 30-60% over the past months in the US. But that's no longer so in Japan.

Toyota had set a goal of 10,000 sales a month in Japan. At that rate, it's going to take them a year and a half just catch up.

Incentives in Japan include tax free sales plus a 'cash for clunkers program.'  Overall sales in Japan are still slumping, down 19% from last year, even though hybrid sales have been very high.  The Insight was the number one seller in Japan in April, while the Prius captured the top spot in May (and will continue to stay on top if these pre-sale orders are correct and as long as Toyota can keep producing them).  Toyota may just end up building the Prius here in the US just to free up production in Japan.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Cash for Clunkers Passed: Also Known as the CARS Act of 2009

The 'Cash for Clunkers' (or as it is known in the bill: "Consumer Assistance to Recycle and Save Act of 2009" or CARS act)  bill has passed the Senate and House (although there was a bit of doubt there at the end) and is being sent to President Obama to be signed.  Part of a $106 billion war appropriations bill, the $1 billion program is intended to help push new car sales, while also pushing for higher fuel economy.

The question becomes with the restrictions set in place, who's going to make use of the program and what are they most likely to buy in return?  More on that later.

If you don't know, the CARS Act of 2009 will give consumers a voucher for up to $4,500 in value to purchase or lease a new vehicle.  The trade in will be crushed.  At first, the bill was intended to improve the fuel economy of the fleet of cars in the US, but the recession has rolled back the good intentions and has instead become a subsidy for the automotive market.  And just to be safe (???) the program will only run for four months, unless Congress comes backs and funds it again for the full $4 billion it was initially set for.

An earlier version of the bill had some drastic differences set up between the used trade-in and the new car to ensure the new vehicle purchased would truly increase the fuel efficiency of the fleet of vehicles in the US, but the watered down version that passed isn't quite as stringent.

The program will go into affect 30 days after Obama signs it, and will end on October 31, 2009.  Just four short months to spend $1 billion on new vehicles.

Consumers who turn in their old cars can get up to $4,500 in a voucher they can use on a new vehicle.

(A) the new fuel efficient automobile is a passenger automobile and the combined fuel economy value of such automobile is at least 10 miles per gallon higher than the combined fuel economy value of the eligible trade in vehicle;
(B) the new fuel efficient automobile is a category 1 truck and the combined fuel economy value of such truck is at least 5 miles per gallon higher than the combined fuel economy value of the eligible trade-in vehicle; or
(C) the new fuel efficient automobile is a category 2 truck that has a combined fuel economy value of at least 15 miles per gallon and the combined fuel economy value of such truck is at least 2 miles per gallon higher than the combined fuel economy value of the eligible tradein vehicle and the eligible trade-in vehicle is a category 2 truck.
Or you can get $3,500 voucher for trading an older vehicle to be scrapped, if:
(A) the new fuel efficient automobile is a passenger automobile and the combined fuel economy value of such automobile is at least 4 miles per gallon higher than the combined fuel economy value of the eligible trade-in vehicle;
(B) the new fuel efficient automobile is a category 1 truck and the combined fuel economy value of such truck is at least 2 miles per gallon higher than the combined fuel economy value of the eligible trade-in vehicle;
(C) the new fuel efficient automobile is a category 2 truck that has a combined fuel economy value of at least 15 miles per gallon and—
(i) the eligible trade-in vehicle is a category 2 truck and the combined fuel economy value of the
new fuel efficient automobile is at least 1 mile per gallon higher than the combined fuel economy value of the eligible trade-in vehicle; or
(ii) the eligible trade-in vehicle is a category 3 truck of model year 2001 or earlier; or
(D) the new fuel efficient automobile is a category 3 truck and the eligible trade-in vehicle is a category 3 truck of model year of 2001 or earlier and is of similar size or larger than the new fuel efficient automobile as determined in a manner prescribed by the Secretary.

Who's Happy and Who Isn't
The total overall difference in fuel economy improvement isn't going to be much, and lots of groups you would expect to support the measure have already made their impressions clear.

But car makers (including foreign automakers) dealers, and the companies that supply them are very happy about it.  Faced with sales that have dropped 30-50% over the past year, bankruptcy, and suppliers going out of business, auto makers have been pushing for this bill for a while.  Especially after seeing the success the 'cash for clunkers' bill had in Germany.  According Dave McCurdy, chairman of the Alliance of Automobile Manufacturers:
This legislation has been one of our top priorities. It will help restore consumer confidence in the economy by stimulating vehicle sales; while at the same time benefiting the environment by replacing older vehicles with cleaner and more fuel-efficient autos. Cash for clunkers will benefit everyone from the consumer looking for the extra incentive to purchase a new car, to the communities who will receive additional tax revenue from the sales of new vehicles.
The $1 billion should subsidize up to 250,000 vehicle sales, which is only 2.5% of the annual rate of 9.9 million units sold in May.  (Edmunds has already said the 250,000 mark may be hard to reach.  Edmunds has also compiled a list of vehicles that are worth trading in for the voucher (pdf) ) So it's uncertain how much of a difference this will make.  Also, the subsidy will be aimed at those people who can afford new vehicles, not the poor who are more likely to be purchasing the clunkers that are going to be crushed.

Also, the number of vehicles it would be worth trading in for the voucher has to be limited.  The vehicle needs to be under the fuel efficiency guideline, plus be worth less than $4,500 (or $3,500). 

Will this Benefit Hybrid Cars or Even Fuel Efficiency?
My first thought is this could be a boon to hybrid car sales, since hybrids will certainly be more fuel efficient than the vehicles being traded in.  But it's unclear whether that will indeed be the case.  With the 'watered' down version passing, you don't necessarily need to get a really fuel effiicient vehicle to replace the old one.

Looking at the list of vehicles that it would make sense to trade-in under this program, it seems like an overwhelming majority of them are large trucks, vans and large SUVs. And is someone who owns a large, older, inefficient vehicle that was probably purchased for a specific purpose (large family, towing capacity, work truck, etc...) going to be interested in a hybrid?  Won't the consumer most likely turn in their truck for a slightly more efficient newer truck?  Which makes me wonder about the one year ownership rule.  If someone wants to buy your used 'clunker', then use it to purchase a more fuel efficient vehicle, what's wrong with that?

Some other things you might not know about the Cash for Clunkers Bill:
  • Dealers must be certified
  • A website will be set up to explain all the nuances for obtaining and using the vouchers (www.cars.gov)
  • The voucher can be used to purchase or lease a vehicle.
  • No more than one voucher per person, and no combination of vouchers to purchase a single vehicle.
  • Only 7.5 percent of the $1 billion can go to Category 3 trucks (Work Truck).
  • The vehicle being trade-in has to be in drivable condition, owned by the same person for one year, and be manufactured less than 25 years ago.
  • The new car being purchased cannot have the legal title transferred to anyone else prior to the 'ultimate purchaser,' cannot be worth more than $45,000, and must get at least 22 mpg (automobile), 18 mpg for a category 1 truck or 15 mpg for a category 2 truck.
  • Fraud will be punished with fines of no more than $15,000 per violation


Keep reading for the full text of the bill (pdf):

TITLE XIII—CONSUMER ASSISTANCE TO RECYCLE AND
SAVE PROGRAM
SEC. 1301. SHORT TITLE.—This title may be cited as the ‘‘Consumer
Assistance to Recycle and Save Act of 2009’’.
SEC. 1302. CONSUMER ASSISTANCE TO RECYCLE AND SAVE PROGRAM.—(
a) ESTABLISHMENT.—There is established in the National
Highway Traffic Safety Administration a voluntary program to
be known as the ‘‘Consumer Assistance to Recycle and Save Program’’
through which the Secretary, in accordance with this section
and the regulations promulgated under subsection (d), shall—
(1) authorize the issuance of an electronic voucher, subject
to the specifications set forth in subsection (c), to offset the
purchase price or lease price for a qualifying lease of a new
fuel efficient automobile upon the surrender of an eligible tradein
vehicle to a dealer participating in the Program;
(2) register dealers for participation in the Program and
require that all registered dealers—
(A) accept vouchers as provided in this section as partial
payment or down payment for the purchase or qualifying
lease of any new fuel efficient automobile offered
for sale or lease by that dealer; and
(B) in accordance with subsection (c)(2), to transfer
each eligible trade-in vehicle surrendered to the dealer
under the Program to an entity for disposal;
(3) in consultation with the Secretary of the Treasury,
make electronic payments to dealers for eligible transactions
by such dealers, in accordance with the regulations issued
under subsection (d); and
(4) in consultation with the Secretary of the Treasury and
the Inspector General of the Department of Transportation,
establish and provide for the enforcement of measures to prevent
and penalize fraud under the program.
(b) QUALIFICATIONS FOR AND VALUE OF VOUCHERS.—A voucher
issued under the Program shall have a value that may be applied
to offset the purchase price or lease price for a qualifying lease
of a new fuel efficient automobile as follows:
(1) $3,500 VALUE.—The voucher may be used to offset the
purchase price or lease price of the new fuel efficient automobile
by $3,500 if—
(A) the new fuel efficient automobile is a passenger
automobile and the combined fuel economy value of such
automobile is at least 4 miles per gallon higher than the
combined fuel economy value of the eligible trade-in vehicle;

(B) the new fuel efficient automobile is a category
1 truck and the combined fuel economy value of such
truck is at least 2 miles per gallon higher than the combined
fuel economy value of the eligible trade-in vehicle;
(C) the new fuel efficient automobile is a category
2 truck that has a combined fuel economy value of at
least 15 miles per gallon and—
(i) the eligible trade-in vehicle is a category 2
truck and the combined fuel economy value of the
new fuel efficient automobile is at least 1 mile per
gallon higher than the combined fuel economy value
of the eligible trade-in vehicle; or
(ii) the eligible trade-in vehicle is a category 3
truck of model year 2001 or earlier; or
(D) the new fuel efficient automobile is a category
3 truck and the eligible trade-in vehicle is a category 3
truck of model year of 2001 or earlier and is of similar
size or larger than the new fuel efficient automobile as
determined in a manner prescribed by the Secretary.
(2) $4,500 VALUE.—The voucher may be used to offset the
purchase price or lease price of the new fuel efficient automobile
by $4,500 if—
(A) the new fuel efficient automobile is a passenger
automobile and the combined fuel economy value of such
automobile is at least 10 miles per gallon higher than
the combined fuel economy value of the eligible tradein
vehicle;
(B) the new fuel efficient automobile is a category
1 truck and the combined fuel economy value of such
truck is at least 5 miles per gallon higher than the combined
fuel economy value of the eligible trade-in vehicle;
or
(C) the new fuel efficient automobile is a category
2 truck that has a combined fuel economy value of at
least 15 miles per gallon and the combined fuel economy
value of such truck is at least 2 miles per gallon higher
than the combined fuel economy value of the eligible tradein
vehicle and the eligible trade-in vehicle is a category
2 truck.
(c) PROGRAM SPECIFICATIONS.—
(1) LIMITATIONS.—
(A) GENERAL PERIOD OF ELIGIBILITY.—A voucher issued
under the Program shall be used only in connection with
the purchase or qualifying lease of new fuel efficient automobiles
that occur between July 1, 2009 and November
1, 2009.
(B) NUMBER OF VOUCHERS PER PERSON AND PER TRADEIN
VEHICLE.—Not more than 1 voucher may be issued for
a single person and not more than 1 voucher may be
issued for the joint registered owners of a single eligible
trade-in vehicle.
(C) NO COMBINATION OF VOUCHERS.—Only 1 voucher
issued under the Program may be applied toward the purchase
or qualifying lease of a single new fuel efficient
automobile.
(D) CAP ON FUNDS FOR CATEGORY 3 TRUCKS.—Not more
than 7.5 percent of the total funds made available for
the Program shall be used for vouchers for the purchase
or qualifying lease of category 3 trucks.
(E) COMBINATION WITH OTHER INCENTIVES PERMITTED.—
The availability or use of a Federal, State, or
local incentive or a State-issued voucher for the purchase
or lease of a new fuel efficient automobile shall not limit
the value or issuance of a voucher under the Program
to any person otherwise eligible to receive such a voucher.
(F) NO ADDITIONAL FEES.—A dealer participating in
the program may not charge a person purchasing or leasing
a new fuel efficient automobile any additional fees associated
with the use of a voucher under the Program.
(G) NUMBER AND AMOUNT.—The total number and
value of vouchers issued under the Program may not exceed
the amounts appropriated for such purpose.
(2) DISPOSITION OF ELIGIBLE TRADE-IN VEHICLES.—
(A) IN GENERAL.—For each eligible trade-in vehicle
surrendered to a dealer under the Program, the dealer
shall certify to the Secretary, in such manner as the Secretary
shall prescribe by rule, that the dealer—
(i) has not and will not sell, lease, exchange, or
otherwise dispose of the vehicle for use as an automobile
in the United States or in any other country;
and
(ii) will transfer the vehicle (including the engine
block), in such manner as the Secretary prescribes,
to an entity that will ensure that the vehicle—
(I) will be crushed or shredded within such
period and in such manner as the Secretary prescribes;
and
(II) has not been, and will not be, sold, leased,
exchanged, or otherwise disposed of for use as
an automobile in the United States or in any other
country.
(B) SAVINGS PROVISION.—Nothing in subparagraph (A)
may be construed to preclude a person who is responsible
for ensuring that the vehicle is crushed or shredded from—
(i) selling any parts of the disposed vehicle other
than the engine block and drive train (unless with
respect to the drive train, the transmission, drive shaft,
or rear end are sold as separate parts); or
(ii) retaining the proceeds from such sale.
(C) COORDINATION.—The Secretary shall coordinate
with the Attorney General to ensure that the National
Motor Vehicle Title Information System and other publicly
accessible systems are appropriately updated on a timely
basis to reflect the crushing or shredding of vehicles under
this section and appropriate reclassification of the vehicles’
titles. The commercial market shall also have electronic
and commercial access to the vehicle identification numbers
of vehicles that have been disposed of on a timely basis.
(d) REGULATIONS.—Notwithstanding the requirements of section
553 of title 5, United States Code, the Secretary shall promulgate
final regulations to implement the Program not later than
30 days after the date of the enactment of this Act. Such regulations
shall—
(1) provide for a means of registering dealers for participation
in the Program;
(2) establish procedures for the reimbursement of dealers
participating in the Program to be made through electronic
transfer of funds for the amount of the vouchers as soon as
practicable but no longer than 10 days after the submission
of information supporting the eligible transaction, as deemed
appropriate by the Secretary;
(3) require the dealer to use the voucher in addition to
any other rebate or discount advertised by the dealer or offered
by the manufacturer for the new fuel efficient automobile and
prohibit the dealer from using the voucher to offset any such
other rebate or discount;
(4) require dealers to disclose to the person trading in
an eligible trade-in vehicle the best estimate of the scrappage
value of such vehicle and to permit the dealer to retain $50
of any amounts paid to the dealer for scrappage of the automobile
as payment for any administrative costs to the dealer
associated with participation in the Program;
(5) consistent with subsection (c)(2), establish requirements
and procedures for the disposal of eligible trade-in vehicles
and provide such information as may be necessary to entities
engaged in such disposal to ensure that such vehicles are
disposed of in accordance with such requirements and procedures,
including—
(A) requirements for the removal and appropriate disposition
of refrigerants, antifreeze, lead products, mercury
switches, and such other toxic or hazardous vehicle components
prior to the crushing or shredding of an eligible
trade-in vehicle, in accordance with rules established by
the Secretary in consultation with the Administrator of
the Environmental Protection Agency, and in accordance
with other applicable Federal or State requirements;
(B) a mechanism for dealers to certify to the Secretary
that each eligible trade-in vehicle will be transferred to
an entity that will ensure that the vehicle is disposed
of, in accordance with such requirements and procedures,
and to submit the vehicle identification numbers of the
vehicles disposed of and the new fuel efficient automobile
purchased with each voucher;
(C) a mechanism for obtaining such other certifications
as deemed necessary by the Secretary from entities engaged
in vehicle disposal; and
(D) a list of entities to which dealers may transfer
eligible trade-in vehicles for disposal; and
(6) provide for the enforcement of the penalties described
in subsection (e).
(e) ANTI-FRAUD PROVISIONS.—
(1) VIOLATION.—It shall be unlawful for any person to
violate any provision under this section or any regulations
issued pursuant to subsection (d) (other than by making a
clerical error).
(2) PENALTIES.—Any person who commits a violation
described in paragraph (1) shall be liable to the United States
Government for a civil penalty of not more than $15,000 for
each violation. The Secretary shall have the authority to assess
and compromise such penalties, and shall have the authority
H. R. 2346—55
to require from any entity the records and inspections necessary
to enforce this program. In determining the amount of the
civil penalty, the severity of the violation and the intent and
history of the person committing the violation shall be taken
into account.
(f) INFORMATION TO CONSUMERS AND DEALERS.—Not later than
30 days after the date of the enactment of this Act, and promptly
upon the update of any relevant information, the Secretary, in
consultation with the Administrator of the Environmental Protection
Agency, shall make available on an Internet website and
through other means determined by the Secretary information about
the Program, including—
(1) how to determine if a vehicle is an eligible tradein
vehicle;
(2) how to participate in the Program, including how to
determine participating dealers; and
(3) a comprehensive list, by make and model, of new fuel
efficient automobiles meeting the requirements of the Program.
Once such information is available, the Secretary shall conduct
a public awareness campaign to inform consumers about the Program
and where to obtain additional information.
(g) RECORD KEEPING AND REPORT.—
(1) DATABASE.—The Secretary shall maintain a database
of the vehicle identification numbers of all new fuel efficient
vehicles purchased or leased and all eligible trade-in vehicles
disposed of under the Program.
(2) REPORT ON EFFICACY OF THE PROGRAM.—Not later than
60 days after the termination date described in subsection
(c)(1)(A), the Secretary shall submit a report to the Committee
on Energy and Commerce of the House of Representatives
and the Committee on Commerce, Science, and Transportation
of the Senate describing the efficacy of the Program, including—
(A) a description of Program results, including—
(i) the total number and amount of vouchers issued
for purchase or lease of new fuel efficient automobiles
by manufacturer (including aggregate information concerning
the make, model, model year) and category
of automobile;
(ii) aggregate information regarding the make,
model, model year, and manufacturing location of
vehicles traded in under the Program; and
(iii) the location of sale or lease;
(B) an estimate of the overall increase in fuel efficiency
in terms of miles per gallon, total annual oil savings, and
total annual greenhouse gas reductions, as a result of the
Program; and
(C) an estimate of the overall economic and employment
effects of the Program.
(h) EXCLUSION OF VOUCHERS FROM INCOME.—
(1) FOR PURPOSES OF ALL FEDERAL AND STATE PROGRAMS.—
A voucher issued under this program or any payment made
for such a voucher pursuant to subsection (a)(3) shall not be
regarded as income and shall not be regarded as a resource
for the month of receipt of the voucher and the following 12
months, for purposes of determining the eligibility of the
recipient of the voucher (or the recipient’s spouse or other
family or household members) for benefits or assistance, or
H. R. 2346—56
the amount or extent of benefits or assistance, under any Federal
or State program.
(2) FOR PURPOSES OF TAXATION.—A voucher issued under
the program or any payment made for such a voucher pursuant
to subsection (a)(3) shall not be considered as gross income
of the purchaser of a vehicle for purposes of the Internal Revenue
Code of 1986.
(i) DEFINITIONS.—As used in this section—
(1) the term ‘‘passenger automobile’’ means a passenger
automobile, as defined in section 32901(a)(18) of title 49, United
States Code, that has a combined fuel economy value of at
least 22 miles per gallon;
(2) the term ‘‘category 1 truck’’ means a nonpassenger
automobile, as defined in section 32901(a)(17) of title 49, United
States Code, that has a combined fuel economy value of at
least 18 miles per gallon, except that such term does not
include a category 2 truck;
(3) the term ‘‘category 2 truck’’ means a large van or
a large pickup, as categorized by the Secretary using the
method used by the Environmental Protection Agency and
described in the report entitled ‘‘Light-Duty Automotive Technology
and Fuel Economy Trends: 1975 through 2008’’;
(4) the term ‘‘category 3 truck’’ means a work truck, as
defined in section 32901(a)(19) of title 49, United States Code;
(5) the term ‘‘combined fuel economy value’’ means—
(A) with respect to a new fuel efficient automobile,
the number, expressed in miles per gallon, centered below
the words ‘‘Combined Fuel Economy’’ on the label required
to be affixed or caused to be affixed on a new automobile
pursuant to subpart D of part 600 of title 40, Code of
Federal Regulations;
(B) with respect to an eligible trade-in vehicle, the
equivalent of the number described in subparagraph (A),
and posted under the words ‘‘Estimated New EPA MPG’’
and above the word ‘‘Combined’’ for vehicles of model year
1984 through 2007, or posted under the words ‘‘New EPA
MPG’’ and above the word ‘‘Combined’’ for vehicles of model
year 2008 or later on the fueleconomy.gov website of the
Environmental Protection Agency for the make, model, and
year of such vehicle; or
(C) with respect to an eligible trade-in vehicle manufactured
between model years 1978 through 1985, the equivalent
of the number described in subparagraph (A) as determined
by the Secretary (and posted on the website of
the National Highway Traffic Safety Administration) using
data maintained by the Environmental Protection Agency
for the make, model, and year of such vehicle.
(6) the term ‘‘dealer’’ means a person licensed by a State
who engages in the sale of new automobiles to ultimate purchasers;
(7) the term ‘‘eligible trade-in vehicle’’ means an automobile
or a work truck (as such terms are defined in section 32901(a)
of title 49, United States Code) that, at the time it is presented
for trade-in under this section—
(A) is in drivable condition;
(B) has been continuously insured consistent with the
applicable State law and registered to the same owner
for a period of not less than 1 year immediately prior
to such trade-in;
(C) was manufactured less than 25 years before the
date of the trade-in; and
(D) in the case of an automobile, has a combined fuel
economy value of 18 miles per gallon or less;
(8) the term ‘‘new fuel efficient automobile’’ means an automobile
described in paragraph (1), (2), (3), or (4)—
(A) the equitable or legal title of which has not been
transferred to any person other than the ultimate purchaser;
(B) that carries a manufacturer’s suggested retail price
of $45,000 or less;
(C) that—
(i) in the case of passenger automobiles, category
1 trucks, or category 2 trucks, is certified to applicable
standards under section 86.1811–04 of title 40, Code
of Federal Regulations; or
(ii) in the case of category 3 trucks, is certified
to the applicable vehicle or engine standards under
section 86.1816–08, 86–007–11, or 86.008–10 of title
40, Code of Federal Regulations; and
(D) that has the combined fuel economy value of at
least—
(i) 22 miles per gallon for a passenger automobile;
(ii) 18 miles per gallon for a category 1 truck;
or
(iii) 15 miles per gallon for a category 2 truck;
(9) the term ‘‘Program’’ means the Consumer Assistance
to Recycle and Save Program established by this section;
(10) the term ‘‘qualifying lease’’ means a lease of an automobile
for a period of not less than 5 years;
(11) the term ‘‘scrappage value’’ means the amount received
by the dealer for a vehicle upon transferring title of such
vehicle to the person responsible for ensuring the dismantling
and destroying of the vehicle;
(12) the term ‘‘Secretary’’ means the Secretary of Transportation
acting through the National Highway Traffic Safety
Administration;
(13) the term ‘‘ultimate purchaser’’ means, with respect
to any new automobile, the first person who in good faith
purchases such automobile for purposes other than resale;
(14) the term ‘‘vehicle identification number’’ means the
17 character number used by the automobile industry to identify
individual automobiles; and
(15) the term ‘‘voucher’’ means an electronic transfer of
funds to a dealer based on an eligible transaction under this
program.
(j) APPROPRIATION.—There is hereby appropriated to the Secretary
of Transportation $1,000,000,000, of which up to $50,000,000
is available for administration, to remain available until expended
to carry out this section.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Insight is Tops in Europe

Honda announced they have sold more Insights than any other hybrid in Europe. The Insight was the top selling hybrid in Japan back in April, before being topped by the new generation Prius. But once again, in the first month of sales, the Insight has proven to be very popular.

The question of course, is will it last? Or will the Prius be able to command attention once again. Also, the other point to consider is how well the Insight and Prius are doing outside of the US, but sales haven't been as considerable here.

Part of that is the acceptance of smaller vehicles in general in Europe and Japan. Another is the way the Japanese government is pushing hybrids.

We still have to see how well the new Prius will do in the US, but Honda has already admitted they won't be making their sales goal here.

The sales figures in Europe were obtained from Jato Dynamics. They showed the Insight was tops in its sector, the hybrid and alternative fuels. In Europe, the alternative fuels sector contains any passenger car not powered by petrol or diesel.

The Civic Hybrid was third on the charts.

Honda Motor Europe, Senior Vice President, Ken Keir is delighted that the Insight has been so well received, commenting: "We introduced Europe to hybrids almost 10 years ago when we put the original Insight on sale. The Insight was the first hybrid to be sold in Europe and this sector is set to continue to expand and diversify."

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Thursday, June 18, 2009

Government Continues to Support Hybrids

Over the past few weeks, the US government has gone out of its way to provide  a significant amount of funding for fuel efficiency, hybrid car and electric car technology.  The three programs are being funded at $538 million, a majority of which is coming from the American Recovery and Reinvestment Act.

DOE Invest $11 Million in Battery Development
The Dept of Energy (DOE) announced seven cost-shared research projects they would be funding to the tune of $11 million.  The projects will focus on improving material performance, developing manufacturing processes to increase performance, and decreasing the cost of plug-in hybrid electric vehicles (PHEV) batteries.

The projects being funded under this program are:

  • A123Systems, Inc of Watertown, Massachusetts, has been selected for negotiation of an award for up to $1.1 million for a project to develop a high throughput electrode fabrication process for their lithium ion battery technology.
  • Angstron Materials LLC of Dayton, Ohio, teamed with Applied Sciences Inc. of Cedarville, Ohio; K2 Energy Solutions of Henderson, Nevada; General Motors Corporation of Detroit, Michigan; and HST Auto of Escondido, California; has been selected for negotiation of a three-year award of up to $3.2 million with a DOE share of up to $1.6 million, project to develop hybrid nano carbon fiber/graphene platelet-based high-capacity anodes for lithium batteries.
  • EnerDel Inc. of Indianapolis, Indiana, has been selected for negotiation of an award for up to $3.3 million for a project to develop a chemical shuttle agent that will eliminate the danger of overcharging lithium ion batteries developed for plug in hybrid electric vehicles, hybrid electric vehicles, and electric vehicles.
  • MaxPower Inc. of Harleysville, Pennsylvania, has been selected for negotiation of an award for up to $500,000 for a project aimed at adapting MaxPower's present battery management systems (BMS) for lithium-ion batteries to recognize the imminent appearance of an internal short and to take action to operate the battery in a safe state.
  • North Carolina State University of Raleigh, North Carolina, teamed with American Lithium Energy LLC of San Marcos, California, has been selected for negotiation of an award for up to $1.35 million for a project to develop high-energy composite nanofiber anodes for materials for lithium ion batteries.
  • SION Power Corporation of Tucson, Arizona, has been selected for negotiation of an award for up to $800,000 for a project aimed at demonstrating the viability of their lithium sulfur (Li-S) rechargeable battery chemistry for electric drive vehicles.
  • TIAX LLC of Cambridge, Massachusetts, has been selected for negotiation of an award for up to $2.36 million for a project aimed at understanding and preventing internal short circuits in lithium ion cells. Results from the proposed program will help develop guidelines to enable development of technologies for safe battery packs, guidelines that will permit original equipment manufacturers to develop their own proprietary technologies for mitigating short-circuit induced safety incidents.

$240 Million for High-Efficiency Trucks and Passenger Vehicles
The DOE is funding (for $240 million) the development of high-efficiency trucks and passenger vehicles. $110 million will come from the American Recovery and Reinvestment Act and $130 million from DOE annual appropriations.

The goal is three-fold: increase vehicle freight efficiency by 50% in Class 8 trucks and to improve fuel economy by 25% compared to today's typical vehicles and 40% in diesel-fueled vehicles.

Applications are due on September 9

GSA Orders 17,205 Fuel-Efficient Vehicles, Including 3,100 Hybrids
The U.S. General Services Administration (GSA) spent $287 million from the American Recovery and Reinvestment Act on purchasing 14,105 fuel efficient vehicles. Each of the new vehicles will replace one with lower fuel economy.

3,100 of the new vehicles will be hybrid sedans.  Chrysler, Ford and GM will all benefit from the purchase.

      2,933 Chrysler vehicles for $53 million;
      7,924 Ford vehicles for $129 million; and
      6,348 General Motors vehicles for $105 million.

By September 30, the GSA will spend another $15 million to order advanced technology buses and electric vehicles for use in the federal fleet.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Prius Still Set to be Built in Mississippi

Toyota still has plans to build the Prius at the plant in Mississippi, not in Fremont, CA.  But it doesn't matter anyways, since Toyota is not going to start building the Prius anywhere in the US in the near term.

According to a story in Bloomberg, Toyota was considering moving their production to Fremont, CA, to a plant they share with GM. But Edmunds followed up with an official from Toyota who denied the story.

Toyota is considering making Priuses at a California plant it shares with General Motors, not a factory in Mississippi where production of the popular hybrid had been planned, Bloomberg reported today, citing two unnamed sources.

But Mike Goss, external affairs manager with Toyota Motor Engineering & Manufacturing North America, or TEMA, said "we haven't changed our plans to build Prius in Mississippi. Nothing's changed."
The Bloomberg story also quoted a Wiseman who stated there was no plans to build the Prius in California.
“The plan is still to build Prius in Mississippi as soon as demand and this economy turn around,” said Jim Wiseman, vice president of external affairs for Toyota’s North American manufacturing unit. Wiseman said he’s unaware of discussion within Toyota to produce the hybrid in California.
So, it looks like California is out, Mississippi is in.  But it doesn't really matter since demand for the Prius has been off (just like every other car in the US) since the recession hit.  According to the spokesman from Toyota, it's only if demand picks up again that Toyota will begin producing the Prius inside the US.

But I would guess there's another possibility.  If the demand in Japan continues to be strong, they might begin production in the US so that they can move more Prius in Japan. They've already increased production there by 25% (going from 400K to 500K).  If the Prius remains at the top of the sales ladder, plus continues to receive pre-orders at the same rate as they have been... But that's a couple of big ifs.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Wednesday, June 17, 2009

Hyundai LPI Elantra Hybrid

Hyundai has begun receiving pre-launch orders for its Elantra LPI Hybrid Electric Vehicle, its first commercial hybrid in South Korea. Pre-orders will end July 7, a day before it officially introduces the car in the Korea domestic market.

The hybrid electric vehicle is powered by a Liquefied Petroleum Injected (LPI) engine. The LPI Gamma engine has a displacement of 1.6 liters, a 15kW (105 Nm) electric motor and a Continuously Variable Transmission (CVT).

Together, the engine emits just 99 g/km of CO2 and 90 percent fewer emissions than an equivalent standard gasoline powered Elantra to qualify as a Super Ultra Low Emission Vehicle (SULEV).

Liquefied Petroleum Gas (LPG), often referred to as auto gas, is a low carbon emitting hydrocarbon fuel which burns more cleanly than gasoline or diesel and is especially free of the particulates associated with the latter.

The hybrid engine is a mild (assist) hybrid, which should attain 17.8km/l (or gasoline equivalent of 22.2km/l). That's a 47 percent increase over the conventional 1.6L Elantra. Hyundai points out LPG in Korea is 50% less than that of gasoline, making it an even better option.

The electric motor will be powered by a lithium-ion battery pack, the first hybrid in the world according to Hyundai to adopt the lithium-ion polymer battery cells. The technology and all key components in the LPI HEV have been developed by Hyundai and its local partners including the motor, battery and low DC/DC converter.

Elantra LPI HEV Specifications

Hybrid Type
Flywheel-mounted motor-generator
parallel type (mild)
Length
4505
Width
1775
Height
1490
Wheelbase
2650
Tires
Low-Rolling Resistance
Engine
In-line 4, 1.6L Gamma All-Aluminum
(Atkinson Cycle)
Bore x Stroke
77.0mm x 85.44mm
Compression Ratio
12:1
Head
DOHC 16-Valve
CVVT
Single-Type (Intake)
Maximum Power
114ps @ 6000rpm
Maximum Torque
15.1kg m @ 4500rpm
Acceleration 0-100km/h
11.5 sec
Transmission
CVT with Metal V-Belt &
Multi-Disc Wet Clutches for Start-Up
Motor
Interior Permanent Magnet Synchronous Motor
Maximum Power
15kW
Maximum Torque
105Nm
Maximum Speed
6000rpm
Batteries
Lithium Ion Polymer Forced Air Cooling
Voltage
180V
Capacity
5.3Ah
Tires
185/65 R15 (STD) 195/65 R15 (OPT) Low-Friction
Fuel Economy
17.8km/l  (22.2km/l gasoline equivalent)
CO2 Emissions
99 g/km
Emissions Classification
SULEV
Top Speed
188km/h
Steering
Motor-Driven Power Steering
Weight
1297kg
Fuel Tank (L)
45.2
Suspension
(F) McPherson Strut
(R) Multi-Link

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Mack Hybrids on Capitol Hill

The Mack TerraPro Cabover was displayed on Capitol HIll as part of the "Hybrid on the Hill Day" organized by the Hybrid Truck Users Forum (HTUF) of CALSTART. The diesel-electric hybrid truck promises 30% fuel economy improvement in the stop-and-go environment of refuse collection.

The parallel hybrid engine is designed for Class 8 heavy-duty applications and meets the EPA'10 emission regulations.

"Our hybrid technology will be commercially viable, yet it will take time to establish a robust hybrid market for heavy vehicles that will enable us to invest in large scale production," said Dennis Slagle, Mack president and CEO. "Incentives will accelerate the adoption of Class 8 hybrids and bring forward the positive environmental changes."

Until the economies of scale are met, howver, the hybrid technology is only available right now at a 'very high premium' compared to non-hybrids. It won't be until the production volumes increase substantially, that the savings from fuel and reduced maintenance will allow for the technology to 'pay for itself.'

In the meantime Tom Kelly, Mack senior vice president, wants government to make up the difference to encourage the market to transition.

"Government incentives are necessary to establish a market for these vehicles with environmental benefits, similar to the incentives offered for hybrid passenger vehicles," said Kelly. "The public benefit of these incentives will be reduced environmental impact as hybrid heavy-duty trucks become more common."

In order to meet those goals, Kelly would like Congress to continue their efforts to encourage hybrid vehicles.

"For example, we’d like to see Congress extend the federal Alternative Motor Vehicle Credit, enacted by the Energy Policy Act of 2005, which expires at the end of 2009," Kelly said.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Tuesday, June 16, 2009

John McCain Opts For Ford Fusion Hybrid

So, even John McCain is opting for a Ford Fusion Hybrid.  That's more good news for Ford, as the press has already jumped onto the news

Of course, it's hard to ignore given how McCain announced it via Twitter.

Ford has to love how they are the choice for all politicians who want the US  public to know they drive a hybrid made from an American car company.

Like when Obama talked about his Ford Hybrid Escape ("By the way, I just want to mention, I think I still have my Ford parked in Chicago," Obama said. "It's a Ford hybrid, it runs great, you guys should take a look.").

Makes me wonder if the same thing will happen this time next year.  Will we be hearing from Obama et. al. on how they are opting for the Chevy Volt?  Or if GM is still owned by the government, will that be seen as a no-no?  I wonder if the pollsters are already talking to people about that one?

I'm betting the Republicans won't be buying from Chevy (GM) anytime soon, but the Democrats probably will.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Monday, June 15, 2009

Honda Insight May Not Hit Sales Goal

Vice President John Mendel of Honda believes Honda will not meet it's sales goal of 90,000 for the Honda Insight.

First-year Sales of Honda’s gasoline-electric Insight, which debuted at U.S. dealerships in late March, may be between 50,000 and 60,000 units, John Mendel, the company’s U.S. executive vice president, said in a June 11 interview at Honda’s U.S. headquarters in Torrance. “I don’t think we’ll get to 90,000,” he said.

Image from Wikipedia
Which seems to bear out when you examine the sales so far in the US (2,780 in May, 5,445 in 2009 so far). That probably doesn't worry Honda executives too much right now. With sales of the Insight going so well in Japan, they're basically shifting production to sell more in Japan right now.

If gas prices go up or the recession ends, I would bet the sales goal would be revised again. Just don't expect them to up the numbers being produced.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Friday, June 12, 2009

Oregon State Hybrid Car Tax Credit Ending

Looks like the Oregon state tax credit for hybrid cars is about to end.  The House has passed a bill that would set a deadline of January 1, 2010 to qualify for the $1,500 tax credit.

The Senate is expected to pass the bill as well.  Oregon Governor Ted Kulongoski wants a new bill to create a tax credit on plug-in hybrid vehicles to replace the credit that's about to be expired.  The Bill is House Bill 2180.

Source: Statesman Journal

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Thursday, June 11, 2009

Chevy Equinox Will Not Get Two-Mode Hybrid

Despite all the speculation, it seems GM is not interested in turning the Equinox into a Vue replacement. After deciding to sell Saturn, it was clear GM would not be following through with their plans to introduce the two-mode hybrid Vue.

There was a lot of speculation that GM would move instead try their full hybrid engine out on the Chevy Equinox, since the two CUVs share the same Theta Epsilon II platform. But that is not to be.

According to a Ward's Auto story,

"There are no plans for a hybrid at this point," Ed Peper, GM North America vice president-Chevrolet, tells journalists at a preview of the new Equinox here.
Which is pretty clear cut. But there's a little more detail on why the Equinox has been taken out of the loop.
But Peper (Ed Peper, GM North America vice president-Chevrolet) pours water on the Equinox-hybrid speculation, saying fuel economy from the ’10 model’s new 4-cyl. surpasses what the auto maker could have achieved with a hybrid.

Front-wheel-drive models deliver 32 mpg (7.4 L/100 km) highway, which GM anticipates to be segment-leading, with a cruising range of more than 550 miles (805 km).
2008 Equinox LTZ picture taken by me outside t...Image via Wikipedia


Consumers aren’t terribly interested in paying the premium for a hybrid, especially if a conventionally powered vehicle delivers comparable fuel economy, Peper says. In the city cycle, the Equinox 4-cyl. delivers 22 mpg (11 L/100 km) with front-wheel drive.

GM is continuing to test the two-mode hybrid system using the Saturn Vue, however. GM wants to build a plug-in hybrid vehicle using the technology.

GM has said the two-mode hybrid system that was due for the Vue will be moved to another product.  If the Equinox is out, then the question becomes what's in?

And with the Malibu Hybrid done along with the Saturn hybrids, what does that leave GM with?  The oversized SUVs with the two-mode hybrid technology (Tahoe, Yukon and Escalade) along with their hybrid trucks (Sierra and Silverado).  Those haven't been big sellers so far (combined sales under 1,000 units last month. In comparison, Ford sold 3,906 hybrids last month, while Honda sold over 4,800 and  Toyota moved more than 14,000 hybrids).

I'd say GM had decided to stop competing in the hybrid field, but the Chevy Volt is still coming.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

Malibu Hybrid is Dead

Chevrolet Malibu HybridImage by geognerd via Flickr
GM has pulled the plug on their mild hybrid Malibu, citing "slow sales that has led to a backlog of inventory on dealer lots." (Source: WSJ)

A GM spokesman said the company made the decision because of a "sufficient stock of 2009s," and said starting up production in the near future is "possible, but not likely." The company will continue to make hybrid versions of the Malibu for fleet buyers, but it is uncertain if GM will ever produce the Malibu hybrid for retail consumers ever again.
...
A base Malibu, carrying a four-cylinder engine, costs about $22,300, and a hybrid version, which uses a battery to help propel the vehicle, is about $4,000 more. Both models achieve 34 miles-per-gallon in highway driving, according to GM.


The comparison they are making is a bit unfair, since the Malibu hybrid does have more options and is more comparable to the six cylinder Malibu.  But people who think fuel efficiency is a priority are going to make this comparison.  But more importantly, they are going to look at the Prius (or Civic Hybrid or even the new Insight).  When you can get a Prius or Insight for a similar price, and get 10-20 mpg more, which car are you going to select?


And that's the problem with mild hybrids. Too expensive for what they deliver. Would you pay even $1,000 more for a car that only gives you a couple mpgs in the city? For some reason, GM thought they could compete with the full hybrids from Toyota and Honda by making mild hybrids. It just doesn't work.

I suppose they could stand back and say they were making hybrids, but no one was buying it. Not when they could walk down the street to the Honda or Toyota dealership and see the results they were getting with their full hybrid technology.

Get Four Free Price Quotes From Yahoo! Autos Hybrid Research and Pricing at Edmunds.com

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