Automakers talk to Congress

Congress wants to increase the CAFE numbers by 4%, automakers don't want them to. So, Congress called in the heads of Toyota, GM, Honda, Ford and DaimlerChrysler to discuss the possibilities.

Automakers pressed for incentives instead of mandates. Saying they want to encourage consumers to use ethanol and bio-fuels. This would cut back on our dependence on foreign oil, they said. Otherwise, the cost of upgrading to CAFE standards would be too high. Toyota was the only company not sticking to that particular line.

Instead, they pushed for removing the federal tax credit limit. Toyota being the only company to pass that mark, however, means no other car makers are willing to support them.

Afterwards Jim Press, the North American president, said Toyota would be interested in making an hybrid capable of running with ethanol. While no timetable was set for a more general mating, the Toyota Tundra is scheduled to come out with an E85 option in 2009.

Source: Bloomberg.com: Japan

DaimlerChrysler will have a hybrid option on all cars?

According to Motor Authority » All DaimlerChrysler cars will come with hybrid option, which is a pretty tall order. Ford once made the same promise, but backed off on it. Toyota looks like they are going about making this happen, although they are doing it with full hybrid technology. I wonder which way DCX will go?

DaimlerChrysler is looking to create the mild hybrid option on all cars. Mild hybrids have basic start-stop, regenerative breaking and their electric motors can assist the gas engine, but cannot power the car by itself. This gives the car higher fuel economy at less cost.

GM has mild hybrid technology in the Saturn Vue Green Line, but is switching to the two-mode hybrid system next year. BMW and DaimlerChrysler co-operated in developing the dual-mode system, and will have their own full hybrids on the road in the next couple of years.

There doesn't seem to be any timeline attached to the hybrid option on all DCX cars.

Now May Be the Best Time to Buy a Hybrid

Edmunds thinks now would be the best time to buy a hybrid.

1. According to Edmunds.com True Market Value(R) (TMV(R)) pricing system, average transaction prices of most hybrid vehicle models are at their lowest levels in history because the supply is finally beginning to exceed the demand.
2. For the first time ever, incentives are being offered on many popular hybrids.
3. Certain hybrid tax credits will be lower for those who purchase later in the spring, after automakers reach specific hybrid sales targets.
4. Gas prices have begun their seasonal rise. AAA recently reported that unleaded fuel is up 32 cents per gallon compared with one month ago.

It should be noted that these benefits depend on which hybrid you buy. Although the last point applies to all cars, only Toyota is currently being affected by the federal tax credit phase out period. Honda (which is most likely to cross over the 60,000 car limit) probably won't be affected until next year.

Also, to be fair, the press release mentions solo access to HOV lanes being one of the perks of owning a hybrid. California, being one of the states that offers that perk, has run out. So, if you buy a hybrid today, you won't be able to get into the HOV lane as a solo driver in CA.

Press Release from Edmunds follows:

SANTA MONICA, Calif.--(BUSINESS WIRE)--Considering a hybrid vehicle? Now is the time to buy, according to Edmunds.com, the premier online resource for automotive information. There are four key reasons:

1. According to Edmunds.com True Market Value(R) (TMV(R)) pricing
system, average transaction prices of most hybrid vehicle
models are at their lowest levels in history because the supply
is finally beginning to exceed the demand.

2. For the first time ever, incentives are being offered on many
popular hybrids.

3. Certain hybrid tax credits will be lower for those who purchase
later in the spring, after automakers reach specific hybrid
sales targets.

4. Gas prices have begun their seasonal rise. AAA recently
reported that unleaded fuel is up 32 cents per gallon compared
with one month ago.

“In the past, our research showed that the True Cost to OwnSM a hybrid vehicle was exorbitant,” said Alex Rosten, Manager of Pricing and Market Analysis for Edmunds’ AutoObserver.com. “However, our latest analysis indicates that, considering current hybrid price trends and rising gas prices, it is financially sound to purchase a new hybrid vehicle within the next few weeks, before the tax credits are further reduced.”



“Hybrid vehicles have always been a compelling choice for drivers who want to save fuel and to drive an environmentally friendly car,” said Philip Reed, Senior Consumer Advice Editor at Edmunds.com. “While buyers used to pay a premium for hybrids, now the vehicles are more affordable and there are a number of additional benefits.”

Additional benefits of hybrid ownership include:

* Government Tax Credits and Rebates - Federal, state and local governments provide various incentives for consumers to purchase hybrid vehicles.
* HOV/Carpool Lane Driving - Some state governments permit hybrid vehicles in High Occupancy Vehicle (HOV) lanes and carpool lanes even if the driver is alone in the car.
* Free Parking – Some local governments and other organizations (such as the Fairmont Hotel in San Jose, Calif.) provide free or reduced parking for hybrid vehicles.
* Corporate Cash-Back – Bank of America, My Organic Market and other companies offer cash incentives to any employee who purchases a hybrid vehicle.
* Insurance Discounts – Insurance companies such as Farmers Insurance Group and Travelers Insurance offer special discounts to drivers of hybrid cars.

10.5 Million Alternative Fuel Vehicles

There are now 10.5 million alternative fuel vehicles on the road today according to R.L. Polk and Co. That includes hybrids, ethanol-capable E-85, and clean diesel autos. There are 60 models available today, as opposed to only 12 in 2000.

"We are happy to see that consumers are, in fact, discovering the alternatives that are available to them on dealership lots nationwide," said Dave McCurdy, president of the Alliance of Automobile Manufacturers.

Some alternatives are better than others, though. Most people think the alternatives are better, but consumers should be careful to look at each one carefully. The Honda Accord Hybrid, for instance, was built for performance, not for fuel economy. Also, having E85 is great for those who have an E85 pump nearby, but otherwise, it really doesn't help all that much.

But overall, having more alternatives out there makes it better for everyone.

Press Release from the auto alliance follows:

Consumers are Discovering the Alternatives: 2006 Sales of Alternative Fuel Autos Exceed Automakers’ Expectations by 50%

Washington, DC – Automakers kicked off National Alternative Fuel Autos Week by announcing that there are 10.5 million Alternative Fuel Autos on the nation’s roads today, according to 2006 sales data from R.L. Polk and Co.

The Polk sales figures also reveal that an unprecedented 1.5 million Alternative Fuel Autos were sold in 2006, surpassing automakers’ sales expectations by 50 percent. Currently manufacturers are offering 60 models of Alternative Fuel Automobiles for sale including hybrid electric, ethanol-capable E-85, and clean diesel, up from just 12 models for sale in 2000. A complete list of available autos can be found at www.DiscoverAlternatives.com.

“There are 10.5 million Alternative Fuel Autos on the roads and highways of every state across the country. We are happy to see that consumers are, in fact, discovering the alternatives that are available to them on dealership lots nationwide,” said Dave McCurdy, president of the Alliance of Automobile Manufacturers. “We believe that the numbers of Alternative Fuel Autos on the roads continues to rise because consumers can choose from a variety of autos that reduce fuel use while still providing the utility, safety, performance and comfort they seek.”

In addition to the 60 Alternative Fuel Autos currently being offered, auto engineers are working to include a diverse range of highly fuel-efficient technologies in new vehicles. Today, every model for sale is available with some kind of fuel-efficient technology, such as fuel injectors, four-cylinder engines, variable valve timing, continuously variable transmissions, cylinder deactivation and more.

Automakers are also working with the energy industry to develop a range of alternative fuels capable of sustaining mobility while ensuring more secure energy sources. In fact, Alliance members have forged more than 25 partnerships, joint ventures or research and development projects with energy producers to expand the fueling infrastructure for fuels such as ethanol, biomass and hydrogen. Automakers are also working with the government, fuel providers and fuel retailers to help grow the E-85 ethanol fueling infrastructure. Since mid-2005, the industry has helped add 200 fueling stations in 13 states.

McCurdy added, “Having exceeded our sales expectations in 2006, we hope that 2007 will be another banner year for sales of Alternative Fuel Autos. This year marks the first-ever National Alternative Fuel Autos Week and automakers hope to draw more attention to the availability of these autos currently for sale.”

The Alliance of Automobile Manufacturers is a trade association of 9 car and light truck manufacturers including BMW Group, DaimlerChrysler, Ford Motor Company, General Motors, Mazda, Mitsubishi Motors, Porsche, Toyota and Volkswagen. For more information on advanced fuel-savings technology, visit the Alliance website at www.autoalliance.org.