Electric Car Blogging

Filed under: Hybrids/Alternative, Government/Legal, Green, Chrysler, LLC., Ford, GM

Remember the growing movement to caravan a few hundred of Detroit’s most fuel efficient vehicles to the automaker’s next meeting with Congress? Not happening. Interestingly, it wasn’t for lack of support. In fact, it was just the opposite. So many people had voiced their support and announced their intentions to join in that the event’s organizers just weren’t able to keep up. Talk about a logistical nightmare.

Organizers have not given up on the idea completely, launching a new website called TheEngineofDemocracy.com that’s supposed to drum up support for Detroit and fuel efficient cars in general. Along with an outpouring of support via the interwebs, a list of 51 people from various suppliers, dealership workers and Union officials will accompany the CEOs of General Motors, Ford and Chrysler to Washington - one from each state plus one from the capital itself - to prove that the loss of the American auto industry would affect everyone. At this point, we think it’s safe to say that Wagoner, Mulally and Nardelli will be, ya know, driving to the proceedings.

[Source: The Detroit News Photo by Mark Wilson/Getty]

Detroit to DC caravan cancelled originally appeared on Autoblog on Sat, 29 Nov 2008 13:22:00 EST. Please see our terms for use of feeds.

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The Saturn Vue hybrid at the LA Auto Show

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

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

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

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

Killing American fuel economy

Ethanol fans can’t talk enough about how ethanol has helped America. Yet, when Congress struck a deal in 1988 to promote ethanol, they devised a tax credit scheme enabling 16 mpg gas guzzlers to have a fuel economy rating of 24 mpg. Thus, through the ’90s, US automakers couldn’t roll out enough gas-guzzling SUVs.

Yeah, that sure has helped America, not!

So, how are plug-in tax credits similar to flex fuel credits? They are not. Yet, I’d bet the first generation of plug-in vehicles are more about meeting new CAFE requirements than they are about killing the conventional vehicle. And, with billions in free money available both in cash handouts and tax credits, why not use that money to roll out enough plug-ins to attain green marketing cred and to help achieve new CAFE requirements?

Money for nothing and CAFE for free?

I say, enough government regulation. Let’s make it easy. Increase oil taxes on gasoline, diesel, or any other petroleum products, and let consumers and innovators decide the winners. The flex fuel credit has proven that the government might have good intentions, but seldom do their intentions achieve intended results.

NiMH-only until fourth gen Prius?

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

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

Build more hybrids?

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

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

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

Tiny electric car has big price

Think is starting to sell the The City electric car in Norway. With a 112 miles per charge and a top speed of 62.5 miles per hour, the Think doesn’t pack a ton of WOW power. Still, it’s an environment-saving, oil-crushing electric vehicle.

Nonetheless, the economics of Think’s City cause some serious consumer thinking. The base price of the The City equates to ,690. That’s fair for a small, under-performing electric car, right?

Hold on. That doesn’t include the battery. The battery is leased for another 3 per month. After 5 years that would add an extra ,000 to the cost of the vehicle, totalling almost ,000 - and that doesn’t include charging costs.

Makes me think that either GM is going to take a big hit on the Volt, or that the close to ,000 price tag must not include the battery lease. Thank god for government tax incentives. We’re gonna need a lot of them if gas prices keep falling.

The ,000 plug-in

The Fisker Karma plug-in hybrid is a hot looking vehicle with an even hotter price tag. At ,000, the Karma is priced well above what the average consumer can afford, although a ,000 version is forthcoming. Nonetheless, it will offer the average driver at least 100 mpg according to the company. In fact, for many commutes, the Karma won’t use any gasoline, as it offers up to 50 miles of electric range.

Thus, Fisker believes it deserves some special attention if Congress is going to bail out US automakers according to CBS. If Fisker can produce a car equal to, or better than, GM’s Volt, doesn’t Fisker deserve some government investment?

I do have a bit of a problem with the idea of government help for luxury vehicles, such as the Karma, despite green credentials. To me, it seems a gas tax is the most cost-effective path to plug-ins, not government bailouts, loans and corporate tax incentives.

Anyway, check out this Karma road test.

Insight: More realistic than plug-ins?

When it comes to buying a car, sticker price is the most important issue for most consumers. Unfortunately, hybrid cars and plug-in vehicles cost more, which makes it harder for manufacturers to turn a profit on such vehicles.

Thus, while GM has hung its green PR hat on the Chevy Volt plug-in vehicle, the Volt isn’t going to help GM’s bottom line for many years.

“In 10 years are they [at GM] going to solve the technological problems with respect to the Volt? Sure,” says Maryann Keller, an automotive analyst and author of a book on GM. “But are they going to be able to stake their survival, which is really more of a now to five-year proposition, on it? I’d say they can’t. They have to stake their future on Malibus, the Chevy Cruze, and much more conventional technologies.”

Add .00 gas and how many consumers are really willing to pay a few thousand extra for a hybrid, or several thousand extra for a plug-in hybrid?

Is a mass conversion to plug-in vehicles possible in the next few decades without significantly higher gas prices? Isn’t it time to get serious about a new gas tax?