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Toyota Confirms US Launch of Compact Lexus Hybrid -
Toyota officials last week confirmed that the Lexus CT 200h, a premium hybrid hatchback, is coming to the United States, according to a report in Automotive News. The Lexus CT 200h would be Lexus’s first compact car, and the first compact hybrid sold by Toyota in the US.
The car was unveiled at the Geneva Motor Show last week, but until recently the company insisted that the compact hybrid would only be sold in Europe. According to Automotive News, Lexus executives pleaded with Japan to bring to the car to the US—partly in hopes that the smaller Lexus would appeal to a younger demographic. "When the all-new Lexus CT 200h enters the market it will be the only hybrid vehicle in the emerging premium compact segment," said Mark Templin, Lexus Division group vice president and general manager.
The Lexus CT 200h will make its US debut at the 2010 New York Auto Show later this month. Production begins in late 2010. The car could go on sale in the US sometime in 2011.
Small Luxury Compact Hybrid Hatchback
The recipe for the CT 200h is to place a Prius-type hybrid system—featuring a 1.8-liter gas engine with variable valve timing, and energy storage with a nickel-metal hydride battery pack—into small relatively affordable premium compact car. Lexus said the CT 200h will ride on a new front-wheel-drive platform with a MacPherson strut front suspension and double wishbones at the rear. read more
Tax Credits Shift from Hybrids to Plug-in Cars -
In a few weeks, Ford will become the third auto company to see federal incentives for its hybrid gas-electric cars completely vanish. Tax credits for Honda hybrids bit the dust at the beginning of last year, and Toyota hybrid credits completely phased out in late 2007.
The clean vehicle incentives instated in 2005 provided tax credits, as much as $3,400, for 60,000 buyers per each automaker before a phase-out period of 16 months. Ford reached the 60,000 hybrid mark before April 1, 2009—so beginning on April 1, 2010, there are zero tax credits for a Ford Fusion Hybrid or Ford Escape Hybrid. Tax credits remain for hybrids and clean diesel vehicles from General Motors, Volkswagen, Mercedes and BMW—but with the exception of the VW Jetta TDI, these are low volume vehicles.
Mission Accomplished or Not?
With hybrids remaining below 3 percent of the new car market, green car analysts and advocates are wondering if the hybrid tax credits have vanished too soon. After a decade in the market, hybrids have become more commonplace and therefore, with tax credits and other incentives, could reach a much larger part of the mainstream market. Incentives could encourage automakers and consumers to put millions of high-mpg low-emission hybrids on the road—the original goal of the tax credits.
Instead, legislators have jumped to the next technology breakthrough: tax credits for plug-in hybrids and electric cars. A combination of local and national credits—up to $7,500 at the federal level, plus a $2,000 credit for charging equipment installation, plus state-based incentives— represent so far the largest bundle of incentives for private purchasers of green electric-drive vehicles.
Yet, these grid-enabled vehicles are not yet available—and when they arrive in later 2010, they will be expensive (even with tax credits) and available in limited supply. This is a good argument for generous tax credits to jumpstart the market. However, the first wave of buyers of plug-in cars will be highly motivated early adopters—a group likely to buy regardless with or without large tax credits. Meanwhile, there won’t be an incentive for some mainstream buyers who need a slight nudge to go hybrid. read more
Infiniti M35 Hybrid -
In October 2009, Nissan announced that it will produce a hybrid gas-electric version of its Infiniti M luxury performance sedan, to go on sale in Europe in 2011. It will likely be sold in the United States as well, although no date has been set for North American distribution. The Infiniti M35 Hybrid represents the brand's first hybrid—and provides one more example of the curious relationship between luxury and hybrid vehicles.
Nissan unveiled the Infiniti M35 Hybrid at the 2010 Geneva Motor Show in early March.
Nissan’s leadership has repeatedly made the argument that hybrids are not the answer to the environmental challenges facing the automobile industry—and that only pure all-electric cars represent the necessary shift to oil- and emissions-free motoring. The company’s small all-electric Nissan Leaf will debut in late 2010.
However, the use of a gas and electric power combo is apparently Nissan’s solution for luxury buyers unwilling to sacrifice horsepower and high-end features, but no longer wanting to guzzle gas. As Infiniti’s press release states, “The M35 Hybrid has been designed and engineered to add to, not take away from, the driving experience, a key part of any Infiniti's appeal.” [Subtext: Most hybrids take away from the driving experience.]
Technology Innovation
The M35 Hybrid’s engine, borrowed from the conventional M sedan, is a 3.5-liter V6, with the addition of a 68 horsepower electric motor and hybrid drive system. The Infiniti M35 hybrid uses a front-engine rear-wheel-drive approach—with a one motor-two clutch system. The first clutch is installed between the engine and the electric motor. This clutch allows the full decoupling of the V6 when running in electric modes—in order to reduce mechanical drag and boost the efficiency of the electric motor.
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Audi Unveils A8 Hybrid and A1 Plug-in Hybrid Concepts - Both vehicles are still concepts, but Audi executives are promising to deliver on electric-drive vehicles.
Earlier this week at the 2010 Geneva Motor Show, Volkswagen promised to lift hybrids out of its niche status and to produce electric cars. Audi, Volkswagen’s luxury brand, echoed the sentiment, making a commitment to full hybrids, plug-in hybrids, and electric cars.
Rupert Stadler, Audi AG's chairman of the board of management, said, “We shall offer electric power in the best possible forms for a wide range of mobility needs. The hybrid driveline will be followed by all-electric vehicles." Michael Dick, Audi board member for technical development, added, “In due course plug-in hybrids will demonstrate their strong points when drivers expect to cover longer distances in the pure electric mode, in combination with a conventional engine."
Audi plans to use the name “e-tron” for electric-drive vehicles, much the way the company uses “Quattro” as a synonym for all-wheel drive. In Geneva, Audi gave shape to its new commitment to hybrids and plug-in cars by unveiling two concepts: a full hybrid version of its Audi A8 large flagship sedan, and the A1 e-tron, a plug-in hybrid subcompact.
First Up: Audi Q5 Hybrid SUV
Unfortunately, Audi provided no details about the company's first and only hybrid slated for production so far: the Q5 hybrid crossover SUV. It's due in the US in early 2011. The Q5 hybrid, like the BMW X6 Hybrid, will try to compete with the Lexus RX 450h, which in recent months has become the best-selling hybrid SUV on the market. Sorry, no news on price or other specs are available for the Q5 hybrid. read more
Geography, Oil and the Coda Electric Car -
The Coda all-electric sedan, due late this year, is the underdog in the race for an affordable mass-market pure electric car. As a start-up, it doesn’t have the financial and marketing resources that Nissan and General Motors are putting behind the Leaf and Volt. Unlike Tesla and Fisker, Coda hasn’t received big government loans. So, Coda is playing the role of a small, smart and scrappy start-up electric car company, using every means possible to bring a practical petroleum-free car to the United States
Fans of electric vehicles, and supporters of good old-fashioned American entrepreneurialism, might celebrate Coda’s rugged and independent approach—but that’s being undermined by questions about the manufacturing origins of the Coda sedan. Critics say the car is manufactured in China, so it’s a Chinese car. Full stop. Forget for a moment that nearly every manufactured good we use today comes from China. An analysis of the nationality of the Coda is complex—considering the global nature of the automotive industry. read more
Despite Recall, Prius Sales UP 10 Percent in February - Overall Toyota sales fell 8.7 percent in February, but Prius sales increased by more than 10 percent compared to February 2009. The ability for Prius sales to resist the avalanche of negative publicity—related to Toyota safety problem, including the recall of 2010 Priuses for brake issues—continues the long-standing trend of hybrid sales defying larger market forces, including the economic recession.
Toyota has been offering low lease rates for Prius, as well as Avalon, Camry, Corolla, Highlander, Matrix, RAV4, Tundra and Venza. Despite incentives, Corolla sales fell 6.1 percent in February.
March numbers for Prius sales could continue to rise. After disclosing February sales today, Toyota announced it will continue to offer deals. Dealers are also offering free premium maintenance programs.
Special pricing—which apply to vehicles under recall including Prius, Camry and Corolla— are "unprecedented in the history of Toyota," said Toyota brand manager Bob Carter.
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VW Promises to Lead on Hybrids and Electric Cars -
Hybrid Jetta Planned for 2012
After years of arguing that clean diesel is a better efficiency strategy compared to hybrids, Volkswagen is switching gears. In a statement issued on the eve of the 2010 Geneva Motor Show, Martin Winterkorn, VW chairman of the board, said, "We will take the hybrid out of its niche status with our high-volume models. In the future, the heart of the brand will also beat with electricity."
VW's Electric-Drive Roll Out
- A hybrid version of the Jetta will be offered in the US in 2012
- In August 2013, the Passat Hybrid will be introduced, followed by a Golf Hybrid two months later
- Starting in 2013, VW will begin rolling out pure electric cars, starting with the e-up! minicar, followed by an all-electric Golf, and other electric vehicles yet to be named
- VW's luxury brand Audi will also launch hybrids, beginning with an Audi Q5 Hybrid in early 2011, and a limited introduction of the electric e-tron in 2012
The Volkswagen press release states: “Starting in 2013, the high-volume Golf and Jetta models of the Volkswagen brand are expected to dominate the hybrid and electric vehicle market.”
The Eight-Year Goal
While Winterkorn’s announcements might impress future consumers interested in fuel efficiency, the VW Touareg Hybrid—its first hybrid offering, due in fall 2010—is likely to disappoint. Last month, Volkswagen unveiled a lighter leaner Touareg design, including a hybrid variant, ahead of the Geneva show. The Touareg indicates a move in the right direction, replacing the previous V8 gas-powered SUV with a lighter-weight version using a gas-electric six-cylinder powertrain with direct injection. The performance, size and towing capacity are impressive, but the expected fuel economy in the mid-20-mpg range, will fall in the middle of the Hybrid SUV pack.
"The goal is to become the market leader in E-mobility by the year 2018," said Martin Winterkorn. His goal is to make electric vehicle’s three percent of VW sales by 2018—a target which is surpassed only by Nissan which claims that electric cars will be 10 percent of the global auto market share by 2020.
The year 2018 is also when VW hopes to overtake Toyota to become the largest automaker in the world. read more
Report: GM Drops Cadillac Converj to Focus on Cheaper Plug-In Hybrids -
Bloomberg is reporting that General Motors stopped work on the Cadillac Converj, a sleek electric-drive coupe, to focus on cheaper plug-in hybrids for its luxury brand. The report is based on comments from two GM executives who asked not to be identified because the details aren’t public.
The decision, if verified by GM, represents an acknowledgement of the high cost of producing plug-in hybrids that run without using any gasoline for long distances—rather than the type of plug-in hybrids that can use smaller and therefore less expensive battery packs. The Cadillac Converj was intended to follow the design of the Chevy Volt—referred to as an extended-range electric vehicle or plug-in series hybrid—which runs up to 40 miles before the gas engine is used to maintain the vehicle’s range.
“The future lies in plug-in hybrids with smaller electric range,” said Eric Noble, president of CarLab, an Orange, California-based automotive consultant, told Bloomberg. Dropping the Converj is “a tacit admission from GM that they over-batteried the Volt.”
Right-Sizing Plug-in Hybrid Batteries
The three major categories of electric-drive vehicles are conventional hybrids, plug-in hybrids, and pure electric cars. Conventional hybrids, like the Toyota Prius, will continue to use relatively small battery packs—while pure electric cars require much larger batteries in order to deliver approximately 100 miles of range between charges. read more
Plans to Block EPA’s Greenhouse Gas Powers Won’t Derail Higher Fuel Efficiency Standards -
New proposals in the Senate and House to prevent the Environmental Protection Agency from regulating emissions of greenhouse gases have little chance of stopping higher fuel efficiency standards from going into effect.
Sen. Lisa Murkowski, R-Alaska, last week introduced a bill to block EPA's power under the Clean Air Act to limit emissions from motor vehicles and other sources. Two key House Democrats followed with a similar bill.
Murkowsk's efforts to block EPA from regulating greenhouse gas emissions started last fall. She first introduced an amendment in September 2009, saying the regulations would result in an “economic train wreck.” At that time, Murkowski said the block on EPA’s powers would only affect stationary emissions sources—like power plants, refineries and manufacturers—and that regulation of automobile emissions could continue. The Senate declined to take up Murkowski’s proposal.
The new proposals put vehicle emissions back into consideration. Yet, these plans have little hope because efforts to block the EPA would face a tough battle from a Democratic-led Congress and would face a veto from President Obama. read more
Requiem for Hummer -
General Motors is ready to shut down Hummer. That was the big news earlier this week after the company’s deal to sell the Hummer brand to Tengzhong, a Chinese machinery company, collapsed. The passing of Hummer gave opinion writers, pundits and bloggers—and the general public—an opportunity to reflect on the vehicle that perhaps best represents the excesses of the SUV era.
From the beginning, Hummer was a lightning rod, eliciting strong emotions from people who loved and hated the quintessential gas-guzzler. We collected final remembrances of the Hummer from across the web, and hope you will add your reflections and condolences.
GM Gives In To Good Taste, Closes Hummer Division
"Auto decal makers and window-tinters of the world are in mourning this afternoon...They're stopping production of the controversial phallic stand-ins…I propose that, at midnight ET tonight, all Hummer owners across the country pause their Girls Gone Wild DVDs and join me in a moment of silence for the fallen giant."
- From The Consumerist
Hummer, R.I.P.
"In response to GM's announcement, flags across oil-rich Saudi Arabia were lowered to half-mast while the entire Exxon/Mobil board of directors were seen at a group grief counseling session. On Wall Street, oil speculators were jumping from windows while in Michigan, some people were mourning the possibility of a world without Hummers."
- From Detroit Free Press
Hummer's Long Overdue Death
"Driving one of those militaristic behemoths used to be a status symbol, but after gas prices topped $4 a gallon in the summer of 2008, people began to rethink the excess. In 2008, GM sold 27,485 Hummers, down from 35,000 in 2003. In 2009, after announcing it was putting the brand up for sale, GM sold only 9,000."
- From Forbes read more
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