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Why Gasoline-Blooded Enthusiasts Will Learn to Love Hybrids
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Friday, February 13, 2009 | 0 Comments
Prius or Pickups?
Here's one for all those dimbulbs in Washington who think running a car company ain't that hard: If you were in charge of Toyota, would you have halted work this week on the $1.3 billion factory near Tupelo, Mississippi, that was intended to build the new Prius hybrid? After all, the Prius is precisely the sort of fuel-efficient car you've said the Detroit automakers should be building, at labor costs you've said they should be paying.
Except there's one small problem: Sales of the Prius last month were about half the level they were in November 2007. Meantime, helped by deep discounts -- up to $6000 on some 2008 models -- Ford F-150 sales for November were down just 18.5% compared with November last year, while Chevy Silverado sales were down just 22%.
Obviously, the meltdown in the economy accounts for some of the fall-off in Prius sales: Toyota's total volume in November was down 32% as fearful, credit-crunched customers stayed away from dealerships in droves. But the fact that gas in the U.S. now costs, on average, less than half as much as it did in the summer, is undoubtedly having an effect. The 8660 Priuses Toyota sold last month compares starkly with the 21,000-plus it sold in April as gas raced toward the $4/gallon mark. It also compares starkly with the 37,911 F-150s and 29,534 Silverados shifted by Ford and Chevy dealers in November despite frozen credit and swirling rumors of bankruptcy.
The Prius problem highlights the major challenge facing any bailout of the Detroit Three. If Toyota, allegedly the smartest guys in the room when it comes to the auto biz, can't figure out what American consumers want one month to the next (as of a few months back the Tupelo plant was actually slated to build Highlander SUVs) how on earth is Capitol Hill, or any so-called "car czar" for that matter, going to be able to figure out which direction Detroit's salvation lies? Building Prius clones? Or pickups? Which will give us the best chance of getting our loan money paid back?
There's no question gas prices will rise again once the global economy climbs out of the crater and demand for oil picks up. But as of right now, no one has any idea when that might happen and how fast gas prices might rise. Goldman Sachs recently forecast oil would slump to $30 a barrel, but these are the same geniuses who predicted it would hit $200 a barrel earlier this year. So it's anyone's guess, although futures for deliveries beyond 2013 are trading above $75 a barrel.
Against that background, full-size pickup trucks look like they could still be profitable business for a leaner, lower cost, slimmed-down Detroit for a few years yet.
As has been widely reported, it now looks likely President Bush will allow some of the TARP bank bailout funds to be used to throw GM and Chrysler a financial lifeline. The specter of a massive jump in unemployment -- and what that would do to an economy already reeling from a collapse in consumer confidence -- seems to have gotten the attention of even the hardliners in the White House. "If the auto industry goes belly up now," Vice President Dick Cheney told talk show host Rush Limbaugh, "there's a deep concern that would be a major shock to the system." D'oh...
Of course, any money doled out by the White House this week won't solve the problem. All it will do it buy time -- little more than three months -- to leave the freshly minted Obama administration between a rock (letting the Detroit Three fail and dealing with the grim social and economic cost of 12% unemployment within two years) and a hard place (pouring what has been estimated at $75 to $125 billion into creating a retooled Detroit that will almost certainly be composed of fewer companies making fewer vehicles).
President-elect Obama has said he won't let the American auto industry fail. But will he see pickup trucks as part of the solution? Or part of the problem that got Detroit in this mess in the first place.
Monday, December 22, 2008 | 0 Comments
Could the EPA cripple the Chevy Volt?
Word around Detroit is GM and the EPA are apparently duking it out over the Chevy Volt. The problem is this: Is the Volt an electric car or a hybrid? How you define the Volt is important, because it dictates how the official EPA fuel-economy numbers will be calculated.
Strictly speaking, the Volt is a hybrid in that it is an electric vehicle with an on-board internal-combustion engine (likely a version of GM's 1.4L Family Zero four). The internal-combustion engine, which is connected to a generator, acts as a range extender when the Volt's lithium-ion battery pack runs low on power.
The Volt's electric drive unit is designed to run 40 miles purely on the power from the battery pack. After that, then the internal-combustion engine kicks in, generating enough electricity to power the electric drive for what GM says is hundreds of miles more.
Unlike a hybrid like the Prius, which uses its electric motor, gas engine, or a combination of both to turn the wheels, the Volt's wheels are turned only by its electric drive unit.
Now, here's the rub: Reports suggest the Volt can make it through the EPA test cycle -- which from 2008 includes high-speed running, air-conditioning load, and cold-start tests in addition to the city and highway cycles -- with the internal-combustion engine running about 15% of the time.
The straightforward calculation gives the Volt an EPA fuel-consumption rating somewhere north of 100 mpg. But the EPA apparently wants to certify the Volt differently, insisting it finishes the test with the batteries close to full charge. That drops the calculated fuel consumption to just under 48 mpg, because the internal-combustion engine would have to be run essentially all the time to keep the batteries near full charge.
GM argues, with some justification, the EPA's methodology does not reflect the duty cycle for which the Volt was designed. Many consumers, insiders insist, may never have the internal-combustion engine come on at all if their total daily commute is 40 miles or less, or if they recharge the car at their workplace.
The problem is if the Volt goes to market with an EPA rating that is not substantially better than can be achieved by hybrids, diesels, or other small cars, GM insiders worry consumers may not see the value in the car's near-$40,000 price tag.
Wednesday, October 29, 2008 | 0 Comments
"Green Car" Guys Are Hot! (?)
From this month’s Playboy magazine: “88% of American women say they would be more attracted to a man who has a hot, new fuel-efficient car than a hot, new sports car.” There’s an interesting stat that could open up many a can of worms.
On one hand, I get it. A guy driving a fuel-efficient car is demonstrating that he’s smart. He doesn't waste money, doesn't want to pollute the atmosphere, is mindful of earth’s resources, and supports the need to get off the drug that is foreign oil. Yet, for better or worse, our rides make certain statements about who we are.
Many books have been written about what attracts one person to another. Several have suggested that humans use material possessions as forms of the mating call, much as do certain birds when they flash brightly colored feathers. I’m not suggesting that all it takes to capture the woman of your dreams or fantasies is an F430 Spider, but I’m wondering if 88% of attractive, single females would really get more steamed up by a beige Camry Hybrid, at least in terms of a first connection.
I read a study in a men’s magazine about appearances and attractiveness. They dressed a guy in a fast-food restaurant uniform and put him in a dumpy car, and showed the photos to a control group of women. Then they dressed him in a really sharp business suit and put him at the wheel of a German luxury car. Another similar group of women rated him twice more attractive than the first population did. Remember: same guy. Just different threads, wheels, and accoutrements. So, the notion that appearances make a difference isn't complete bunk.
I’m not advocating shallow relationships or saying that women are materialistic or gold diggers or any of that, so please save those responses for another time. But I’m not buying Playboy’s stat, which says that nearly nine of every 10 women would be more attracted -- at least initially -- to the dude in the fuel sipper than in something a little racier.
What do you think?
Tuesday, October 28, 2008 | 0 Comments