Ford Motor Company [NYSE: F] today reported 2011 full year pre-tax operating profit of $8.8 billion, an increase of $463 million from a year ago, as strong performance in North America and Ford Credit offset challenges in other parts of the world. This marks the company’s third year in a row of improving annual operating profits.
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A good long term hedge against higher gasoline prices? But I sure wish it was easier to sell the Civic hybrid“Get with the program.” That’s what an advertising agency friend told me once regarding Hybridcarblog. I’m too critical, he rightly pointed out. Instead, he suggested that I sell every hybrid and plug-in that I cover. That, he assured me, would drive ad revenues higher. Besides, he scoffed, modern journalism isn’t about selling the truth, it’s about selling ad space. So, how do you sell a car like the Honda Civic hybrid? Don’t get me wrong. I respect anyone that buys a hybrid or a plug-in, but my goal isn’t really to sell cars. Sure I first got into this game to promote hybrid and plug-in technologies, but only as a means to a better environment and greater national security — and those two issues, particularly the later one, are at the foundation of every word I write. That makes covering this space tough for me, because I know how full of crap is the auto industry. I’ve been inside their game, and their use of halo products — which most hybrids and plug-ins are today — drives me, literally, towards insanity. Their ability to use perception and deception to obscure reality is impressive. But let’s get back to Honda and the Civic hybrid. On the plus side, Honda has offered some of the best fleet fuel economy in the industry, although that’s largely because they’ve simply avoided the truck segment. Likewise, Honda was an early adopter of hybrid cars. So, why isn’t Honda’s hybrid program further along? Why isn’t the Civic hybrid, for example, more of a compelling purchase after more than 10 years in this space? What do I mean? According to Honda there is a $4,495 cost difference between the Honda Civic hybrid and the Honda Civic HF. Based on average fuel economy that means that Civic hybrid provides a $385 gasoline savings advantage per years according to government estimated fuel efficiency. Thus, it takes 11.67 years for the Civic hybrid to recover its hybrid premium compared to the Civic HF. Why even sell a Civic hybrid? I mean, it’s not just the premium. That extra $4,495 also requires extra financing costs, extending this premium further. Add in the questionable reliability of Honda’s battery technologies thus far, and why take the hybrid risk? That’s the way all hybrids are, right? Wrong. According to Forbes the Toyota Camry hybrid, for instance, recovers its hybrid premium within 5 years compared to comparably equipped non-hybrid Camry. If you’re a hardcore city driver, the hybrid premium can be recovered even sooner. Consequently, 5 years ago, I could understand this Honda hybrid price differential, but after nearly 1 million hybrid sales, Honda still hasn’t figured out a way to improve cost-effectiveness? But, I digress. I need to sell the Honda Civic hybrid. So, why should you buy a Civic hybrid? The best reason is probably because you’re a huge Honda and Civic fan and you want to make a statement, especially since limited demand might result in a great Civic hybrid deal that can help drive down the Honda hybrid premium. And, if you’re a hardcore city driver, you can probably reduce the Civic hybrid premium even more. Plus, the Honda Civic hybrid offers pretty solid resale value. Even better, take the above, and consider your Civic hybrid purchase a hedge against future gasoline prices. If gas prices spike in the next decade — assuming you’re an average buy-and-hold car buyer — you could actually come out ahead long term. Unfortunately, that’s a tough sell for most Americans, but if you’re a hardcore Civic fan, I think it’s worth the risk considering the last few years of gasoline prices. So, think long term and buy the hybrid version of the Honda Civic. Sure, Honda’s hybrid technology offers little in the battle against foreign oil dependence, but it can at least take the scare out of gasoline spikes for Civic fans. 
The fun to drive "non-Prius-like" Toyota Prius At least according to some early Prius C reviewsAfter more than 10 years on the market, hybrid cars have sadly achieved very little in terms of real world impact. At less than 3 percent marketshare of total US auto sales, hybrids are still just scratching the surface of change. Ultimately, prices have to come down. That makes the sub-$19,000 smaller Toyota Prius C interesting, but now comes word that the Prius C isn’t even very Prius-like, except in terms of fuel economy. Instead, the new Prius C is “taut, sporty and, yes, even fun.” Did someone just say Prius and fun? Yes, the folks over at InsideLine certainly did. Like many children, the “un-Prius-like” Toyota Prius C is going to be a little more wild than its parents While I haven’t yet had the opportunity to drive the new Prius C I have been intrigued by its looks. I’m sure such a statement prompts many to clamor that the new C looks just like a Prius, only smaller. It does, but there is something about the smaller shape and the reduced dimensions that have made the new Prius seem less science experiment-like, and more like a regular old hatchback. From the back and sides, especially, the C definitely takes on a shape of its own. I’m still more of a fan of Toyota’s Lexus CT 200h design cues, however, but I definitely like the flow of the Prius C’s design language better than that of the conventional Prius. It even looks a little more sporty. But looks are one thing. To now learn that the new Prius C also handles better than the conventional Prius makes those smaller lines even more groovy. In fact, it’s going to be very interesting to see how the Prius C fares in the under $20,000 car segment. (For more on this angle check out, $19,000 Toyota Prius C: Why buy a Corolla or other compact?). Yesterday, Kipplingers named the Chevy Cruze Eco Manual, Best in Class for 2012 in this segment, but the Cruze’s numbers seem to fall short compared to this new Prius. For instance, the national average price of the Cruze comes in at $19,889, and the Cruze averages 28/42 mpg city/highway. With a promised sub-$19,000 price and a 53/46 mpg advantage, the Prius C already seems very compelling, particularly for urban commuters. But, assuming conventional Prius ride quality, one would imagine the Cruze would still have an advantage. However, now that it appears that the new Prius C will defy these ride quality expectations, the C might provide some real competition in this segment. In fact, maybe this is the hybrid that finally tops Prius sales, even though this un-Prius-like hybrid is still a Prius. 
Pistons are so last century An easy hybrid revolutionIn a few months Toyota promises to offer a new smaller Prius that will achieve 50 mpg and cost just under $19,000, a pretty compelling offering, right. Well, imagine if that new Prius instead cost $14,000 and achieved 65 mpg. That’s the potential of the wave disk generator according to its backers. Funded by the Advanced Research Project Agency less than 3 years ago, the new wave disk generator has overcome all major obstacles in the past couple years, consistently defying its critics, according to its developers at Michigan State University. By replacing pistons, camshafts and valves, this new small engine / generator cuts waste heat in half and converts it into electricity — a concept that works perfectly with hybrid cars. “We have proven the concept,” said Pablo Parraga, a doctoral student at MSU and research assistant on the project. “We have moved past the challenges and now things are really working.” While funding for the project will soon run out, several automakers have expressed interest in the technology. Likewise, ARPA might offer up a second round of funding. I’m sure there are still obstacles, but if you want to change what people drive, a 65 mpg $14,000 hybrid sure sounds like a good start. Perhaps there will be a wave disk generator hybrid car in your driveway one day soon. Source: Lansing City Pulse
 As it’s not a hybrid, the MINI Roadster might not seem like a car that shoppers for alternative energy vehicles would fancy. This was also said about the standard MINI Cooper, yet the Cooper’s most cross-shopped car is none other than the Toyota Prius. Could the Roadster continue this trend? Those who would consider a MINI vs. a Prius are probably less interested in the amazing fuel economy of the Prius (though it’s certainly a factor) and more impressed by the car’s look and the image it portrays. These “lifestyle buyers” are exactly the sort of shopper that would also consider purchasing a MINI Roadster. Fuel economy numbers have yet to be released for the Roadster, but if they’re anything like the Coupe, expect digits in the high 30s on the highway – not in Prius territory, but again, this unlikely competitor is not only about fuel efficiency. MotivationIn base form the Roadster is powered by a 1.6-liter 4-cylinder engine making 121 horsepower at 6000 rpm and 114 pound-feet of torque at 4250 rpm. It gets a 0-60 time of 8.7 seconds, but in true MINI fashion will likely feel faster. Despite some added weight, surprisingly, acceleration is improved over the convertible Cooper model, due in part to sportier gearing. Drivers of the all-new Ford Escape may be surprised to find out there is a plant inside the door. Ford Racing’s Focus ST-R will make its competition debut this Friday afternoon in the Grand-Am 200 at Daytona International Speedway in the Continental Tire Sports Car Challenge as part of the ST field during the Grand-Am weekend. |
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