Hyundai offers lifetime guarantee for battery pack on Sonata Hybrid

Hyundai is offering a lifetime guarantee for the lithium polymer battery pack in its Sonata Hybrid.

If a Sonata Hybrid’s battery pack fails during the life expectancy of the vehicle, Hyundai will replace the battery for free and pay to have the battery recycled.

The announcement, made today on the sidelines of the Detroit auto show, comes soon after other vehicles powered by advanced battery systems have drawn scrutiny from regulators for possible safety and quality problems.

General Motors has voluntarily offered to add more protection for the lithium ion battery pack in the hybrid Chevy Volt after fires took place in the days or weeks following certain crash tests.  The Fisker also recalled 239 Karma plug-in hybrids because of a problem in its cooling system last month.

“We can do that because in our testing, we found really extraordinary battery life -- at least 275,000 miles with a very low failure rate,” John Krafcik, CEO of Hyundai Motor America, said on the sidelines of the Detroit auto show today. “We have a lot of confidence in our ability to back that at relatively low cost.”

Hyundai says its lithium ion batteries are the next-generation of lithium ion battery technology powering many advanced vehicles made by competitors.

Chevy to market Spark mini EV in U.S.

General Motors said today that it will introduce an electric version of its Chevrolet Spark minicar in 2013, one of several announcements touting small, fuel-saving technologies.

The Spark EV will be the first all-electric vehicle for GM, which became a leader in electrification with its electric EV-1 in the 1990s and the 2010 debut of its plug-in hybrid Chevy Volt.

The EV will come after the gasoline version of the Spark, which is slated for a U.S. launch "mid-year" 2012, Chevy spokesman Michael Albano said.

The gas-powered Spark is now sold in Korea, China and Latin America, will be slotted in Chevy's U.S. lineup below the subcompact Sonic, which went on sale in August. It will get a 1.2-liter, four-cylinder engine.

GM unveiled its EV plans to hundreds of international journalists in Detroit this week in advance of Chevy's 100th anniversary celebration on Nov. 3.

Two other announcements underscored how the Chevy brand is transcending its trucks-and-SUVs image as GM looks to grow sales globally:

• Chevrolet will introduce a new family of small-displacement gasoline engines through the end of this decade. The family will include three- and four-cylinder engines ranging from 1.0- to 1.5-liters in size. The three-cylinder versions are not currently planned for sale in the United States.

• GM said that its personal mobility concept, the EN-V, will get a Chevy badge. GM said it has begun work on the second generation of the two-seat, electric EN-V, which is short for Electric Networked-Vehicle. GM envisions the podlike concept as a long-range solution for traffic-clogged megacities.

Spark competition

GM is joining several automakers with plans to market all-electric vehicles as the U.S. government prepares to finalize tougher fuel economy requirements for light vehicles through 2025.

Tesla Motors and Nissan Motor Co. are already marketing electric vehicles.

Ford Motor Co. plans an all-electric version of the Focus compact car beginning in 2012. Toyota Motor Corp., Mitsubishi Motors Corp. and Kia Motors Corp. are also readying all-electric vehicles for sale in the United States.

In January, GM CEO Dan Akerson said the automaker was developing an all-electric vehicle for the United States, giving GM another 'green' model to complement the Chevrolet Volt.

The Volt is an extended-range sedan with a gasoline engine designed to run primarily on battery power. When the battery is depleted, the gas engine recharges the battery. It went on sale in December.

In August, GM said the Cadillac Converj concept, a luxury coupe with extended-range electric vehicle technology, would be produced and marketed as the ELR. The automaker said the ELR program was just getting underway and declined to provide a timetable for its U.S. rollout.

GM's electric menu

Jim Federico, head of global electric vehicles for Chevrolet, said the Spark EV would be rolled out in key countries and urban markets where low speeds and shorter distances dominate driving habits. California will be focal point in the U.S., he said.

He said GM's strategy is to offer a wide menu of electrified vehicles, ranging from pure EVs to the extended-range Volt and the light hybrid e-Assist technology, launched this summer on the Buick LaCrosse.

"We understand the path to electrification includes a full range of technologies," he said.

The small-displacement Ecotec engines that GM plans to introduce in coming years will use direct injection and turbocharging to boost fuel economy. The new family of engines will replace three engine families currently in use, Federico said.

GM said it aims to eventually sell more than 2 million of the new engines a year worldwide by the end of the decade.

When you do the math, promoter extraordinaire Terry McAuliffe's grand hybrid vehicle plan just doesn't add up

Terry McAuliffe, the former head of the Democratic National Committee and political ally of Bill and Hillary Clinton, has bold and beautiful plans to hire U.S. workers to produce hybrids and electrics.

McAuliffe says he can develop hybrid powertrains, assemble highway-ready vehicles that meet all federal safety and emissions standards, and employ 5,000 U.S. workers. He even plans to export advanced parts to a planned joint-venture auto-assembly plant in China.

"The powertrains, batteries, will be made here and shipped" to China, McAuliffe said Aug. 8 on "The Daily Rundown," a talk show on MSNBC.

But even casual scrutiny of his vision reveals overwhelming obstacles. Let's be plain: His plan is dead on arrival.

He casts himself and his company as part of the solution for a country struggling with 9 percent unemployment, unsparing global competition and gridlocked politics.

But McAuliffe, a born promoter who set eye-popping records as the Democratic Party's fund-raiser in chief, glosses over the sheer magnitude of the task.

To understand the challenge, take General Motors. It invested more than $1 billion in the Chevrolet Volt plug-in hybrid and its technologies, which will be spread over other upcoming vehicles.

In recent years GM has added nearly 2,000 engineers to support its various hybrid and electric-vehicle technologies. And it has spent $700 million in Michigan alone to support vehicle electrification, including test facilities, a battery manufacturing lab and special equipment at its Detroit-Hamtramck assembly plant.

And what does McAuliffe's company, GreenTech Automotive, have? About 50 employees, says Alan Himelfarb, executive vice president for strategic planning. Not even 50 engineers. Fifty total employees.

What keeps the vision alive is McAuliffe's audacity. With confidence and verve, he spells out his job-creating optimism on friendly national cable shows such as "The Daily Rundown" and "The Ed Show," also on MSNBC.

And he wraps his goals in feel-good hot buttons: cleaning up the environment and taking on the growing economic might of China.

"We can achieve two important goals at once. We can provide China with clean technology and help reduce carbon emissions in the country," said McAuliffe, chairman of GreenTech, in an Aug. 6 press release about the China factory. The China project will create 2,000 jobs for Americans, he said.

Superb fundraiser

Political pro Terry McAuliffe has a track record raising big money -- but can he put hybrids on the road?

McAuliffe, a high-energy speaker with a quick and charming smile, is a superb fundraiser. His biography on the GreenTech Web site says that under his leadership the Democratic National Committee set party records by raising more than $535 million.

After a four-year stint at chairman of the committee from 2001 to 2005, he was chairman of Hillary Clinton's presidential campaign. In 2009 he ran unsuccessfully for governor of Virginia.

In the auto industry, though, he's a newcomer. Bold auto visions are fine. But they require staggering amounts of money and manpower. And there's no tangible indication that McAuliffe has either.

That hasn't slowed McAuliffe's promotional machinery. Most recently, GreenTech said on Aug. 6 that it had signed a deal to construct a joint-venture factory in China to assemble 300,000 vehicles a year for the Chinese market.

The Chinese partner is Shengyang Zhong-Rui Investment Co., which GreenTech says has investments in banking, commercial real estate and Chinese airlines. But no investments in automotive operations are listed in the GreenTech press release.

GreenTech says the vehicles, "subcompact, compact, midsize and sports," will be powered by "U.S.-made high-efficiency combustion engines, hybrid powertrains and pure electrical drivetrain" and sold only in China.

Hybrid powertrains, which combine an internal combustion engine, an electric motor, regenerative braking, a large propulsion battery and other advanced components, require millions of lines of software code and world-class engineering and manufacturing.

Meanwhile, GreenTech's Web site also says is has a line of vehicles in development that will be "fully NHTSA- and EPA-certified, full-speed, all-road vehicles." The autos will be assembled in a plant in Mississippi that the company acknowledges is still in the planning stages.

GreenTech, along with suppliers, will invest $1 billion in the Mississippi assembly complex, the company says. A 2010 press release says the cars will go on sale around 2013-14.

And the Web site of the Ordos provincial government in China says GreenTech pledged to start production of hybrids and electrics at its plant in 2013.

But last week the company scaled back those estimates.

"Our expanding product portfolio, including hybrid and electric full-speed vehicle will come in due time and we have not yet set a timetable for the next product introduction" after this year's neighborhood electric vehicle, the company said in a statement. "We fully understand the challenges in time, money, and technical expertise to produce a quality hybrid or electric vehicle."

Even without a timetable, it is not credible that a company with 50 employees now can develop, even with help from major suppliers, a full line of vehicles, master hybrid powertrains, construct an assembly plant and put together a dealer network.

"We are very realistic'
Last week, GreenTech's Himelfarb acknowledged skepticism about starting an auto company from scratch. But he said, "We are very realistic about the challenge."

He made these points about the gap between the vision and reality:

-- Staffing. GreenTech's staff is small now, but it is hiring and plans to have 100 employees by year end, Himelfarb said. And it plans to use major global suppliers and engineering firms with the talent and resources to develop vehicles and powertrains. So the jobs promised by GreenTech could be at suppliers. Himelfarb declined to name those suppliers.

-- Money. Himelfarb insisted GreenTech has money to meet its business plan. "We are very well financed," he said. He declined to reveal the source of the company's funds.

-- Mississippi assembly plant. Site preparation has started in Tunica County, he said, but GreenTech has not yet hired major contractors capable of building and equipping an assembly plant.

-- Neighborhood electric vehicles. To "get its feet wet" in autos, Himelfarb said, the company is gearing up to produce low-speed electrics, which are mainly suitable for resorts and retirement villages. They have turn signals, seat belts and other safety features but are not legal on roads with speed limits above 35 mph.

It plans to start modest production of the MyCar electric at a former elevator factory in Horn Lake, Miss., also in Tunica County, 15 miles south of Memphis, Tenn., in the third quarter. MyCar was designed by a Hong Kong company GreenTech acquired in 2010.

GreenTech says it has signed Greenabout, a Danish company, to distribute American-made MyCars in Denmark.

In expansive tones typical of its press releases, GreenTech makes over-the-top forecasts for the MyCar. A press release says: "We will make the first 100,000 U.S.-built MyCars available to consumers for $10,000 apiece."

But the entire market for low-speed vehicles in the United States last year was only 25,650, says International Market Solutions, a market research firm in Cortlandt Manor, N.Y., that specializes in what it calls small, task-oriented vehicles. Low-speed vehicles include golf carts and most vehicles that generally are called neighborhood electrics.

In a written statement to Automotive News, GreenTech said neighborhood electrics "are a small market for sure, at least right now. We have a few ideas on how to create some awareness and build that market. Our goal of 100,000 units is a cumulative sales figure over time. We look forward to achieving that."

Like all of GreenTech's projects, its neighborhood electrics are long on promotion and short on credibility. And road cars are a lot tougher to make and sell than golf carts.

Audi to unveil production version of A8 hybrid

Audi will unveil a production version of the A8 hybrid sedan at the Frankfurt auto show.

Audi said the A8 hybrid uses a four-cylinder gasoline engine for the first time in the A8 range. The 245hp 2.0-liter unit is combined with a 54hp electric motor powered by a lithium ion battery pack weighing 37kg.

The car has a range of 3km while driven on battery power alone.

Audi says the A8 hybrid will reach 0-100kph (62 mph) in 7.7 seconds and it has a top speed of 235kph (146mph). It uses 6.4 liters of fuel per 100km (44 UK mpg; 36.5 U.S. mpg) and has CO2 emissions of below 148g/km.

The hybrid has an aluminum construction, which Audi says will make it one of the lightest sedans in its category, weighing 231kg, about 40 percent lighter than a comparable steel construction.

The car will go on sale in Europe in late 2012.

Ford, Toyota to jointly develop hybrids for light trucks

Ford Motor Co. and Toyota Motor Corp., by partnering to build a hybrid system for light trucks, hope to cross one of the auto industry’s biggest hurdles – significantly boosting the fuel economy of large pickups and SUVs.

The two automakers plan to jointly develop hybrid technology for light trucks as U.S. regulators finalize plans to toughen fuel economy requirements for pickups later this decade.

Ford sells the nation’s best-selling large pickup – the F series. Toyota is the world’s biggest marketer of gasoline-electric hybrid vehicles for front-wheel based light vehicles, with sales of 3.3 million since introducing the Prius in 1997.

"We expect to create exciting and socially beneficial technologies with Ford, and we can do so because our two companies have enough experience to create a synergy effect in hybrid technology," said Takeshi Uchiyamada, a Toyota executive vice president.

The new hybrid system will be introduced in Ford and Toyota rear-wheel drive SUVs and light trucks later this decade.

It's the first time the automakers have collaborated on product development.

The companies have signed a memorandum of understanding and expect a formal agreement to be signed next year.

By that time, it should be clear how the Obama administration will formalize a proposal to hike corporate average fuel-economy standards to 54.5 mpg by the 2025 model year -- doubling the current requirement.

The new standard requires a 5 percent annual increase in fuel economy for cars starting with the 2017 model year through the 2025 model year. Under current law, automakers’ fleets must improve to 35.5 mpg in the 2016 model year, up from 27.3 mpg now.

Pickups exempt

The plan for 5 percent annual increases could be changed if a midcourse review, planned to begin in 2018, determines that it would adversely affect industry costs and vehicle sales.

The Obama administration's current CAFE proposal, details of which still must be worked out, will exclude full-sized pickups from any increases from the 2017 model year through the 2019 model year.

Beyond 2019, annual increases would begin at a rate still to be determined, until they reach an annual rate of 5 percent a year in the 2022-2025 model years.

Light trucks other than full-sized pickups would have to achieve 3.5 percent annual increases in mileage standards in the 2017-21 model years and 5 percent increases in the 2022-25 model years.

The sharp hike in fleet mpg will force automakers to make vehicles smaller and lighter, offer more hybrids and enhance powertrains to include such technologies as turbochargers and direct injection.

Detroit automakers dominate the full-sized pickup market, with the F series and General Motors' Chevrolet Silverado ranking as the top-selling vehicles in the nation.

Some Toyota Tundra and Nissan Titan models also might be considered full-sized pickups under federal criteria to be determined.

Credits for hybrids

Under the current White House plan, which is to be proposed formally in September and become final in July 2012, Detroit automakers would receive credits for meeting CAFE targets by increasing the use of hybrid technology in pickups.

The exemption for full-sized pickups was opposed by some overseas automakers -- notably Volkswagen AG and Daimler AG -- that make SUVs and crossovers that are classified as light trucks but would not be treated the same.

Administration official say one reason for the special treatment of full-sized pickups is that they were "significantly challenged" to meet the 2012-16 mileage targets.

Because of the wide choice of engines, transmissions, drivetrains, bed sizes and towing capacity available, automakers have struggled to meet higher fuel-economy requirements for large pickups without sacrificing consumer preferences.

That challenge is the primary reason Ford and Toyota have decided to pair up, analysts say.

GM has marketed mild-hybrid full-sized pickups and SUVs for several years under a technology partnership with BMW and Chrysler, but sales have been lackluster because of higher sticker prices and reduced performance, such as limited towing capacity.

“To some extent, this agreement allows Ford to cost-effectively catch up and potentially surpass GM, who arguably has a head start on light-truck hybrids and mild hybrids,” Barclays Capital analyst Brian Johnson said in a report today.

Global challenges

Ford and Toyota expect the partnership to reduce costs and bring hybrid technology to the marketplace sooner and at a lower price. The companies plan to develop components as equal partners but integrate the new hybrid system in future trucks and SUVs separately.

"By working together we will be able to serve our customers with the very best affordable, advanced powertrains, delivering even better fuel economy," Ford CEO Alan Mulally said in a statement. "This is the kind of collaborative effort that is required to address the big global challenges of energy independence and environmental sustainability."

The two automakers also agreed to work together on developing next-generation telematics and other in-vehicle Internet-based services.

"This agreement brings together the capability of two global leaders in hybrid vehicles and hybrid technology to develop a better solution more quickly and affordably for our customers," said Derrick Kuzak, Ford's vice president of product development.

The companies did not release financial details or identify which vehicles will be involved.

But investors seemed to welcome the news, pushing Ford shares higher in New York Stock Exchange trading today while shares in other automakers slumped. Ford shares closed up 1 cent at 10.01. GM shares fell 44 cents, or 2 percent, to close at $21.72.

The Ford and Toyota product development teams first met in April, Kuzak said.

The next step of the project is a feasibility study, which will begin soon, to determine the scope of the collaboration, he said.

Uchiyamada, speaking through a translator, said both companies are eager to start. While they "would like to know the timing now," they must take the appropriate steps before full development can begin.

They play to begin development work next year.

Ford and Toyota previously collaborated in 2004 when the two companies agreed to a patent-sharing deal where Toyota licensed some of its hybrid technology to Ford.

Ford used the licensed technology in the Escape Hybrid and the now-defunct Mercury Mariner Hybrid. In return, Toyota obtained the use of Ford's diesel and direct-injection engine technology.

This time, GM takes low-key approach to mild-hybrid technology

Stroll around the soon-to-launch 2012 Buick LaCrosse and look for the shiny logo that touts General Motors' latest gas-saving technology, eAssist.

You won't find one.

There's no badge. No attempt to brand eAssist as a breakthrough green technology -- even though the hybrid seems worthy of at least its own little green decal.

eAssist combines an electric motor-generator, brake regeneration and a menu of other little tricks to boost fuel economy by 25 percent, to 25 mpg in city driving and 36 mpg on the highway.

But Buick executives want to keep the focus on the car and let the technology sit quietly in the background.

"The focus isn't 'Come in and buy this new technology,'" Roger McCormack, Buick's product marketing director, said during a media event here. "It's 'Come in and experience all the same great things about the LaCrosse. And oh, by the way, here's a big boost in fuel economy."

It seems GM has learned from its mistakes.

Five years ago, GM rolled out "Hybrid" versions of the Chevrolet Malibu and Saturn Aura, based on an earlier, weaker version of the eAssist technology. Shoppers thought "Toyota Prius" -- until they found that the technology only eked out a few extra mpg.

Sales flopped.

This time, the term "hybrid" won't appear on the vehicle or in any of the upcoming LaCrosse advertising.

The 2012 LaCrosse goes on sale this summer with eAssist as the standard powertrain, along with a 2.4-liter, direct-injected 4-cylinder engine and six-speed transmission. Buyers can get a new, more powerful version of the LaCrosse's 3.6-liter V-6 (17 city, 27 highway) for the same price ($30,820, including freight).

Noticing the mpg

Sure, eAssist will get plenty of play when national ads roll out this fall. And GM will use dealer tutorial videos and live demos so sales folks can negotiate those "It's-not-exactly-a-hybrid" discussions with customers.

But I'll bet most buyers will pay only passing heed to how the technology works -- and will stare long and hard at that difference in mpg.

eAssist uses regenerative braking to charge a small lithium-ion battery stored in the trunk. The battery provides extra power to an electric motor-generator that takes the place of an alternator. It assists the engine with up to 15 hp when the car is accelerating onto the highway, for example.

The electric motor in the so-called mild-hybrid system never powers the car all on its own, unlike the electric motor in a full hybrid such as the Prius. In the LaCrosse, the motor only assists the gasoline engine.

That's why the LaCrosse's city mpg rating trails that of luxury competitors like the Lincoln MKZ hybrid (41 city, 36 highway) or the Lexus HS hybrid (35 city, 34 highway).

But the LaCrosse with eAssist also costs $4,000 to $6,000 less than those vehicles. Buick is betting that buyers will like their return on investment.

Evolving industry

There's one more reason why GM isn't making a "hybrid" fuss.

With the Obama administration mulling a 56.2 mpg requirement by 2025, these sorts of fuel-economy advances simply are becoming the cost of doing business.

Sheri Hickok, GM's vehicle chief engineer for mid-sized and full-size vehicles, puts it this way: "The industry is evolving to where fuel economy itself is becoming the message, not some special technology."

Toyota sees Prius beating 2010 U.S. sales as supply grows

Toyota Motor Corp., with as little as one day's worth of Prius cars on dealers' lots after the March earthquake, says sales of the hybrid will still beat 2010.

Asia's largest automaker is racing to replenish supply after the lack of inventory led to a 61 percent drop in Prius deliveries in the U.S. in June, to the lowest level since September 2004. Almost half of Prius models are sold in the U.S., where the car accounts for more than 60 percent of hybrids sold since 1999, according to data supplied by automakers.

Prius, the company's No. 3 selling car after the Corolla and Camry, is the fastest-growing Toyota nameplate this year, even with the quake-depleted inventories. Demand for efficient cars has increased this year with higher fuel prices.

General Motors Co.'s Chevrolet Cruze was June's top-selling car in the U.S., while deliveries of Ford Motor Co.'s Focus rose 41 percent.

"Dealers simply cannot get their hands on them quick enough," said Ivan Drury, an analyst for Edmunds.com, an industry pricing and data Web site. The model "is easily the poster child for inventory issues."

Prior to the quake, Toyota targeted Prius sales in 2011 that would top the car's 2007 peak of 181,221. While that level may be out of reach for now, Toyota can still exceed 2010's deliveries of 140,928, said Donald Esmond, Toyota's senior vice president for U.S. sales.

Output increasing

Production of Prius and two Lexus hybrids is rebounding faster than Toyota first estimated after the 9-magnitude quake in March. The company expects to be back at full output by September, rather than its earlier target of late 2011.

The lack of available hybrids from Toyota has held the segment to 2.1 percent of industrywide U.S. sales so far this year. Even though Prius isn't among the automaker's most profitable lines, Toyota sees it as the best opportunity to win new customers in the next few years, said Jim Lentz, president of Toyota's U.S. sales unit.

The nameplate will be expanded to include the Prius v wagon, Prius c subcompact and plug-in Prius.

"By the end of this decade, the Prius nameplate will be the No. 1 passenger car nameplate in the industry," Lentz said in a July 6 phone interview. Boosting Prius supply, along with the introduction of the wagon version and a revamped Camry sedan later this year, gives the automaker a shot at making up for some sales lost in May and June.

Toyota also wants to ease a backlog for Prius that's pushed the wait time for consumers to as long as three months in some parts of the U.S. from none at the start of the year, said Jesse Toprak, an industry analyst.

'Least-available'

"At the moment, it's the least available of any mass- produced vehicle," said Toprak, with Truecar.com, an industry pricing and data company.

U.S. demand for fuel economy is up this year as gasoline prices approach 2008's record of $4.114 a gallon. While the fuel cost an average of $3.569 per gallon on July 5, down from $3.985 on May 4, the price is up 30 percent from a year ago, according to AAA's Daily Fuel Gauge Web site.

Higher prices at the pump buoyed sales of subcompacts and small cars, with such vehicles rising 21 percent this year through June, according to Autodata Corp. That compares with an 11 percent gain for midsize cars and a 4.7 percent drop for the large sedans, Autodata said.

High appeal

Prius' fuel-economy appeal has never been higher, said Bob Carter, Toyota's group vice president for U.S. sales. Interest in the car was up 36 percent in June from a year ago, based on consumer visits to Toyota's Prius Web site, according to Edmunds.com.

"I have extremely high demand, and the outlook is continuing to improve," Carter said in a June 22 interview. Failure to ramp up supply quick enough may blunt Toyota's goal to notch its first U.S. annual sales gain since 2007.

It also risks driving some buyers to models such as Ford's hybrid Fusion sedan and Hyundai Motor Co.'s new Sonata Hybrid, said Toprak. The growing selection of highly fuel-efficient, gasoline- engine small cars also threatens to lure away potential Prius buyers, said Edmunds.com's Drury.

"Some consumers might be willing to wait, but as time goes on and awareness of the many redesigned compact cars becomes higher, Toyota could suffer," Drury said.

Sales of the Prius in the first half were 66,520, little changed from 66,039 a year ago, when recalls of Toyota and Lexus models temporarily damped demand. Prius accounted for 8.2 percent of the company's U.S. sales during the period, while Camry deliveries were 18 percent and Corolla sales were 16.8 percent.

Prius inventory

Toyota's U.S. sales in the second quarter "slowed as inventories dropped and as a result, we find ourselves at virtually the same position we were a year ago on July 1," Esmond said on a July 1 conference call.

"We won't finish the year that way." While Toyota's Tsutsumi, Japan, plant that makes Prius and its Kyushu factory that builds hybrid Lexus CT200 hatchbacks and HS250 sedans weren't damaged by the March 11 disaster, parts needed for the cars grew scarce because of damages to suppliers' operation.

The automaker prioritized production of the three gasoline- electric cars after determining they were in the highest demand, said Shiori Hashimoto, a spokeswoman for the company.

"We worked hard to find out which components were critical, conditions of the supply chain, and how the limited car parts should be delivered to which assembly lines," said Hashimoto.

Speeding production

To restore Prius production as fast as possible after the quake, Toyota began sending about 150 workers from other factories in Japan to the Tsutsumi plant in late March, said Tomotaka Yagai, a spokesman at Toyota Motor Workers' Union in Toyota City.

Hashimoto declined to confirm the figure. So far, Toyota has only confirmed the U.S. will get a shipment of 36,000 Priuses that will arrive this month, with more on the way, Carter said.

"I can't give you a specific number, but it will improve significantly," he said, without elaborating.

Billy Rinker, general sales manager at Toyota Santa Monica, said a fresh supply of the cars has been arriving since late June. The Los Angeles-area dealership claims to be the largest seller of Prius in the U.S., with average monthly sales of 100 to 150 of the hybrids, he said.

Waiting list

"We only had 30 to sell last month, but July looks like we'll be back to about 80 percent of normal," Rinker said.

He estimates the dealership will sell about 100 this month. That won't eliminate the dealership's backlog. "We're still keeping a list and taking deposits for the car," Rinker said.

With the Prius v wagon, followed in 2012 by the subcompact Prius c and plug-in Prius, Toyota expects its "Prius family" to become its top-selling line within the decade, Carter said.

"A lot of our future plans are centered around the Prius and that goes into vehicle launches next fall," he said. Toyota said July 1 a new Camry and Camry Hybrid, Scion iQ minicar and revamped Yaris subcompact will arrive this year along with the v wagon.

The company is counting on those models, together with the jump in Prius supply and rebounding inventory of all its Toyota, Lexus and Scion products, to reverse a 4 percent slide in U.S. sales through June.

"It's coming back quicker than any of us expected," said Atkinson, who spoke by phone after attending Toyota's annual dealer meeting in Las Vegas last week. "Now it's time to go out and sell like hell."

GM takes low-key approach to mild-hybrid technology

Stroll around the soon-to-launch 2012 Buick LaCrosse and look for the shiny logo that touts General Motors' latest gas-saving technology, eAssist.

You won't find one.

There's no badge. No attempt to brand eAssist as a breakthrough green technology -- even though the hybrid seems worthy of at least its own little green decal.

eAssist combines an electric motor-generator, brake regeneration and a menu of other little tricks to boost fuel economy by 25 percent, to 25 mpg in city driving and 36 mpg on the highway.

But Buick executives want to keep the focus on the car and let the technology sit quietly in the background.

"The focus isn't 'Come in and buy this new technology,'" Roger McCormack, Buick's product marketing director, said during a media event here. "It's 'Come in and experience all the same great things about the LaCrosse. And oh, by the way, here's a big boost in fuel economy."

It seems GM has learned from its mistakes.

Five years ago, GM rolled out "Hybrid" versions of the Chevrolet Malibu and Saturn Aura, based on an earlier, weaker version of the eAssist technology. Shoppers thought "Toyota Prius" -- until they found that the technology only eked out a few extra mpg.

Sales flopped.

This time, the term "hybrid" won't appear on the vehicle or in any of the upcoming LaCrosse advertising.

The 2012 LaCrosse goes on sale this summer with eAssist as the standard powertrain, along with a 2.4-liter, direct-injected 4-cylinder engine and six-speed transmission. Buyers can get a new, more powerful version of the LaCrosse's 3.6-liter V-6 (17 city, 27 highway) for the same price ($30,820, including freight).

Noticing the mpg

Sure, eAssist will get plenty of play when national ads roll out this fall. And GM will use dealer tutorial videos and live demos so sales folks can negotiate those "It's-not-exactly-a-hybrid" discussions with customers.

But I'll bet most buyers will pay only passing heed to how the technology works -- and will stare long and hard at that difference in mpg.

eAssist uses regenerative braking to charge a small lithium-ion battery stored in the trunk. The battery provides extra power to an electric motor-generator that takes the place of an alternator. It assists the engine with up to 15 hp when the car is accelerating onto the highway, for example.

The electric motor in the so-called mild-hybrid system never powers the car all on its own, unlike the electric motor in a full hybrid such as the Prius. In the LaCrosse, the motor only assists the gasoline engine.

That's why the LaCrosse's city mpg rating trails that of luxury competitors like the Lincoln MKZ hybrid (41 city, 36 highway) or the Lexus HS hybrid (35 city, 34 highway).

But the LaCrosse with eAssist also costs $4,000 to $6,000 less than those vehicles. Buick is betting that buyers will like their return on investment.

Evolving industry

There's one more reason why GM isn't making a "hybrid" fuss.

With the Obama administration mulling a 56.2 mpg requirement by 2025, these sorts of fuel-economy advances simply are becoming the cost of doing business.

Sheri Hickok, GM's vehicle chief engineer for mid-sized and full-size vehicles, puts it this way: "The industry is evolving to where fuel economy itself is becoming the message, not some special technology."

Ford plans hybrid-only models

Ford, like Toyota, aims to create a family of hybrid-only vehicles. But Ford and its dealers have to decide who will sell them.

Ford Motor Co. plans to offer the C-Max vehicles in hybrid-only versions, with no gasoline-powered version. The two vehicles -- the C-Max hybrid five-seat hatchback and the C-Max Energi plug-in hybrid -- will join the Transit Connect Electric commercial van, Focus electric and an unidentified fifth vehicle that will arrive in 2012.

Ford now sells hybrid versions of the Ford Fusion and Escape and the Lincoln MKZ.

Speaking last week about the C-Max models, Jim Farley, Ford's global marketing chief, said, "I am convinced that customers will appreciate that Ford now offers a dedicated body style for electric vehicle choices."

He announced that Ford had cancelled plans to sell the European-engineered seven-seat gasoline-powered C-Max in the United States.

The C-Max plan appears to mimic Toyota Motor Corp.'s plan for a family of Prius hybrid vehicles. The Toyota Prius and Honda Insight are the only hybrids that are not derivatives of gasoline-powered models.

Ford plans to triple North American production of electric vehicles and hybrids to more than 100,000 units by 2013.

While all Ford brand dealers are expected to sell the C-Max hatchback hybrid, dealers can choose not to sell the C-Max Energi. They will have to decide by the end of this summer whether to commit to investing in service-department training and meeting other requirements to get the Energi.

Both vehicles will go on sale in 2012, but Farley would not say whether they will go on sale nationwide or whether Ford will launch them in a few markets, as was true for the Chevrolet Volt plug-in hybrid and the Nissan Leaf electric car.

"Dealers will have to do different things, in terms of financing, arranging for the installation of the plug-in at the customer's house" and handling service, Farley said.

Best Buy will install the charging stations, he said.

Ford C-Max minivan to be offered only as a hybrid

Automaker will triple electrified vehicle production to 100,000 a year
Ford says the upcoming C-Max compact minivan will be a dedicated hybrid when U.S. sales begin next year.

Ford Motor Co., in a move to compete with hybrid and electric vehicles produced by Toyota, GM, and Nissan, said today that its upcoming C-Max compact minivan will be a dedicated hybrid when U.S. sales begin next year.

And Ford has cancelled plans to offer a version of the C-Max with a four-cylinder gasoline engine.

Ford said it has been able to reduce the cost of hybrid technology, which will make the vehicle more attractive to buyers. Ford announced this year that a plug-in hybrid C-Max Energi also is planned.

Today's move will put the C-Max in competition with Toyota Motor Corp.'s Prius hybrid, General Motors' Chevrolet Volt plug-in hybrid and Nissan Motor Co.'s all-electric Leaf.

The C-Max is a five-passenger minivan based on the Ford Focus platform.

Ford executives, during an event today in Sterling Heights, Mich., said they plan to triple North American production of electric vehicles and hybrids to more than 100,000 models by 2013 as they work to make a quarter of their vehicles run at least partly on electricity.

Ford is investing $135 million and adding 220 jobs at three Michigan plants to produce five "electrified" models. Besides the C-Max and C-Max Energi, the automaker is building an electric version of its Transit Connect van and will start making a battery-powered Focus compact this year. Ford has not yet announced the fifth vehicle.

Automakers are developing models powered at least partly by electricity as U.S. fuel-economy standards rise. The company said it currently sells about 35,000 electrified vehicles a year, which includes the Fusion Hybrid and Escape Hybrid.

Jim Farley, Ford's group vice president of marketing, sales and service, said in a statement: "Whether people want a hybrid, a plug-in hybrid or full battery electric vehicle, we have a family of vehicles for them to consider, providing a range of options to best meet their needs and support their driving habits and lifestyles."

Cost down

Ford said this year that it expects the cost of hybrid systems it begins offering next year will be 30 percent less expensive than the system that was introduced on the 2010 Ford Fusion.

Ford said it will be able to keep C-Max prices down because much of the hybrid system has been designed and engineered by Ford. The company also will assemble the system.

For example, an upcoming hybrid transmission was designed and engineered by Ford and will be assembled beginning in the first quarter of 2012 in a suburban Detroit Ford plant.

The hybrid transmission in its 2011 Ford Fusion and 2011 Escape and the 2011 Lincoln MKZ are supplied by Japan's Aisin Seiki Co.

The new Ford transmission will be used globally and sourced from Michigan.

Hybrid loyalty rates 'very high'

In an April nterview, Sherif Marakby, Ford's director of electrification programs and engineering, said, "When we first launched a hybrid six years ago, many customers were concerned" about the battery. Customers asked: "'How long would the battery last?' 'How much does it cost to replace it?'" he said.

But batteries have proven to be long-lasting, Marakby said. It's now imperative to lower the cost of its hybrid system, he said, so Ford can cut hybrid prices and boost sales.

"We're seeing that the loyalty rate on hybrids is very high," he said in April. "We just need people to get used to the technology, bring the cost down and the price down for consumers, and we believe it's only going to go up in terms of sales volume."

Ford has been cutting costs by bringing many technologies in-house, such as the hybrid transmission, Marakby said in April.

"By developing the hybrid system's design in-house and sourcing individual components to suppliers, Ford can use less people and less time to get the job done in an efficient manner," he said.

Additionally, Ford has developed in-house a battery system that will be manufactured at a suburban Detroit Ford plant next year.

Marakby's goal is to cut the cost of the next-generation Ford hybrid system another 30 percent.

As automakers hunt for ways to boost fuel economy, many systems in gasoline-powered vehicles shift to electricity

2012 Buick Lacrosse Regenerative Braking

The lines separating electric vehicles, hybrids and conventional gasoline-powered vehicles are blurring as automakers add similar electric-powered features to all three.
Electric power steering, stop-start engine systems and electric-powered oil pumps are among the features originally intended for EVs and hybrids that are being adapted to gasoline-powered vehicles.
The goal: Improve fuel economy by cutting parasitic energy loss that occurs when vehicle accessories are powered by belt drives connected to the engine.
Gasoline-powered vehicles also are starting to get regenerative brakes, which convert kinetic energy into electricity to recharge the starter battery.
Among the leaders in the effort is BMW AG, which is rolling out these and other technologies under its EfficientDynamics fuel-saving program.
BMW has introduced electric-powered oil pumps, engine coolant pumps and steering systems. Now it plans to add regenerative brakes and stop-start systems to all its vehicles, and it is developing some gee-whiz computer controls to improve vehicle efficiency.
GM's approach
Mass-market automakers are taking a similar approach. General Motors, for instance, has improved its mild hybrid technology and reintroduced it as eAssist.
Features of eAssist, which will be available on the 2012 Buick LaCrosse and Regal and 2013 Chevrolet Malibu, include stop-start systems, and regenerative brakes that recharge a small lithium ion battery.
The lithium ion battery, in turn, provides power to the stop-start system, reducing the starter battery's workload. The separate starter battery on the three cars is a traditional 12-volt lead-acid unit.
When the vehicle accelerates, the lithium ion battery provides extra power to the wheels via a motor that doubles as the car's alternator and starter motor. A drive belt connects the alternator-starter to the crankshaft. The battery and alternator-starter alone cannot power the wheels; they only provide an assist.
To GM, eAssist is attractive because it is much cheaper to produce than a hybrid powertrain.

"Consumers want fuel economy," says Buick spokesman Nick Richards. "But the cost [of a full hybrid] holds them back. So we didn't redesign the entire vehicle around the powertrain."
The 2013 Malibu with eAssist gets an estimated 38 mpg on the highway, vs. 33 for the standard 2011 base Malibu.

These electrical devices have created demand for improved engine control units and sophisticated software to manage the electrical system.
Electric power
Here's a quick tour of key components in the electrification of the vehicle:

-- Stop-start systems. When the motorist stops the vehicle, the engine control unit automatically stops the engine, then restarts it when the driver lifts his foot off the brake. Stop-start can improve fuel economy from 4 to 10 percent. These systems typically require an upgraded starter motor and a more durable battery. Robert Bosch GmbH, Denso Corp. and Continental AG have developed stop-start components.
-- Electric power steering. Conventional power steering uses a hydraulic piston to exert the force needed to turn the wheels. The hydraulic system draws its energy from a belt drive connected to the engine. Electric power steering replaces the hydraulics with an electric motor mounted on the steering column or in the engine bay. Unlike a hydraulic system, the electric motor uses power only when the vehicle is turning. Electric power steering can improve fuel economy as much as 4 percent. Major suppliers include ZF Friedrichshafen AG, TRW Automotive Holdings Corp., Nexteer Automotive, Mando Corp., NSK Ltd., Denso Corp. and JTEKT Corp.

-- Electric-powered oil pumps and engine coolant pumps. BMW has designed an engine management system that regulates operation of the coolant and oil pumps, depending on engine conditions. These pumps draw power from electric motors rather than belt drives connected to the engine.

-- Electric parking brakes. An electric parking brake eliminates the need for a parking brake lever or pedal.

-- Regenerative brakes. These systems, mainstays of electric vehicles and hybrids, are starting to appear in conventional vehicles. They recharge the battery when the motorist steps on the brakes.

-- Upgraded batteries. To handle the increased load of electrical accessories, automakers are installing more durable 12-volt lead-acid batteries.

Chevy: Eco version of Malibu targets 38 mpg on highway

General Motors today unveiled an Eco version of the next-generation Chevrolet Malibu that the automaker says will get an estimated 38 mpg on the highway, a level reached by many conventional hybrids.

The Malibu Eco will have GM's eAssist technology, a start-stop system to be introduced this year in the Buick LaCrosse and Regal sedans.

The redesigned Malibu, which goes on sale early next year as a 2013 model, will be the first Chevrolet to get the fuel-saving technology.

Mark Reuss, GM's North American president, said the relatively inexpensive technology gives buyers an affordable option to significantly boost fuel economy without having to buy a conventional hybrid or plug-in hybrid such as the Chevrolet Volt.

"Not everyone can afford those. We know that," Reuss told reporters today after unveiling the Eco version of the next-generation Malibu at the New York auto show.

The new mid-sized sedan was unveiled Monday at the Shanghai auto show.

"The customer base finds cars like this very attractive because they pay for themselves," Reuss said.

He said it will be the most fuel-efficient mid-sized car Chevrolet has ever made. Prices for the 2013 Malibu won't be announced until closer to its launch. GM estimates the Eco version will get 38 mpg highway/26 mpg city.

Reuss said the Malibu Eco will beat many conventional hybrids, including the Toyota Camry Hybrid and Ford Fusion Hybrid, based on GM's mpg estimates. An official EPA rating hasn't been assigned.

Sometimes called a "mild hybrid, the eAssist system uses power stored in a lithium ion battery and an electric motor generator to give a boost to the 2.4-liter, four-cylinder engine when the car accelerates.

A start-stop feature also saves fuel when the vehicle stops, while regenerative braking transfers electricity to the battery.

U.S. should install electric car charging stations, Nissan says

NEW YORK (Bloomberg) -- The Obama administration's goal of putting 1 million hybrid and electric vehicles on U.S. roads by 2015 is "reasonable" if the government builds hydrogen fueling and electric-charging stations nationwide, a Nissan Motor Co. executive said.

"Carmakers can't go and put hydrogen fueling and charging stations throughout the U.S., but the government can," Andy Palmer, a senior vice president at Nissan said in an interview at a conference in New York Wednesday.

There are 722 electric car charging stations in the U.S., with 60 percent of those in California, according to the Energy Department. There are 58 hydrogen fueling stations in the nation, again with the most in California than any other state. U.S. sales of hybrid and electric vehicles could reach 1.6 million by the end of the decade, or 9 percent of all cars, Albert Cheung, a Bloomberg New Energy Finance analyst said in a presentation at the conference.

By 2030, sales could reach 4 million vehicles, he said. Models available today include Nissan's all-electric Leaf, and General Motors Co.'s Chevrolet Volt, which uses a gasoline engine to charge a battery. Ford Motor Co. makes the Transit Connect, an electric delivery van. U.S. government purchases accounted for about a fourth of the Ford and GM hybrid vehicles sold since President Barack Obama took office, according to government data.

Government purchases 

The U.S. General Services Administration, which runs the government fleet, bought at least 14,584 hybrid vehicles in the past two fiscal years, or about 10 percent of 145,473 vehicles the agency purchased in that period, according to sales data obtained by Bloomberg under a Freedom of Information Act request.

That's up from fiscal 2008 when hybrids accounted for less than 1 percent of government purchases, the data showed.

"Government fleets create momentum, but they're not the be all and end all," Palmer said. "The more vehicles you get out into customer hands, the more people start to understand that an electric car is not the same as a golf cart."

This is especially important as Japan's Nissan, GM and other carmakers developing hybrid and electric vehicles are looking for ways to further develop technologies. Longer-lasting batteries would increase product reliability and help make prices more attractive to consumers, he said. Hybrid and electric vehicle models purchased by the government ranged from $23,072 to $47,079.

The government paid an average of $5,281 less for its hybrid vehicles than sticker prices, according to a comparison of the GSA purchase data with prices collected by Edmunds.com, a consumer information Web site.

Buick developing hybrid model using Volt technology

DETROIT (Bloomberg) -- General Motors Co. is developing a Buick brand car using the Chevrolet Volt's plug-in hybrid technology as the automaker expands its line of fuel-efficient vehicles, according to two people familiar with the project.

Designers and engineers are working on a version of the plug-in hybrid Opel Ampera, which was modeled after the Volt and scheduled for sale in Europe this year, with a Buick grille and front-end styling, said the people, who didn't want to be named because the plans are private.

Sales of the Buick version would begin in 2013 if it gets final approval, the people said.

The challenge for GM will be making the car different enough and adding amenities to justify selling it for a higher price under the Buick brand, said Jim Hall, principal of 2953 Analytics Inc., a consulting firm in Birmingham, Mich.

The Volt sells for $41,000 before a federal tax incentive of $7,500.

Reducing weight

"The Volt is already well-equipped," Hall said in an interview. "It's missing power seats and that's about it. What else can you add to make it a premium car?"

The plan could work if GM equips the Buick version with expensive advanced materials that reduce weight and improve the car's electric-only range or driving performance, Hall said.

GM CEO Dan Akerson has said he plans to sell a car using GM's Voltec gasoline-electric drive system among each of the automaker's four brands.

He told analysts at a conference in January that GM must continue developing new technology to prepare for higher fuel prices.

Rob Peterson, a GM spokesman, declined to comment on a possible plug-in hybrid Buick and reiterated Akerson's comments that GM wants to do more with its Voltec technology.

"We have talked about a variety of ways to leverage the Voltec drive system," Peterson said.

Buick, Opel

The Buick version of the car may not be drastically different than the Ampera or the Volt because GM wants to begin sales quickly, the people said.

GM already shares vehicles between Buick and Opel, with the new Buick Regal midsize sedan and the Opel Insignia featuring similar styling and platform.

If the new car is too similar to the Volt, some consumers may see it as only a look-alike version of another vehicle in GM's line, a practice referred as "badge engineering," said Rebecca Lindland, an analyst with IHS Automotive, a research firm based in Lexington, Mass.

"Why are they badge engineering?" Lindland said. "The Ampera really is just the Volt."

GM is looking at putting the Voltec system in other future models, people familiar with the matter have said.

Using the system in larger models is a challenge because they need more battery power, which adds weight to the car and reduces the vehicle's pure electric driving range, Hall said.

Ford Focus is rated at 40 mpg, tying it with the Fiesta

DETROIT — The redesigned 2012 Ford Focus compact has been certified by the EPA at 40 mpg on the highway and 28 mpg in city driving, Ford Motor Co. said today. Those numbers are roughly the same as those for Ford's smaller Fiesta car, setting up a potential marketing problem for the automaker.

The Focus' fuel economy ratings are for the version with the Super Fuel Economy package and a six-speed automatic transmission. The Focus SE with that package carries a sticker price of $19,655, including destination.

The Ford Fiesta subcompact with the same package is rated at 40 mpg highway and 29 mpg city. The Fiesta SE sedan starts at $14,995, including transportation. The SFE Super Fuel Economy package adds $695 to the price tag, a Ford spokesman said.

Excluding the package, the Fiesta is rated at 38 mpg highway and 29 mpg city.

Higher gasoline prices ahead

The new Focus is debuting just as the Department of Energy is predicting higher gasoline prices at the pumps in the months ahead in part because of political unrest in Libya, a major oil exporter.

Gasoline prices could rise to $3.50 a gallon, and some pundits have predicted $5 a gallon. The current national average price for gasoline is $3.31 a gallon, according to nationalgasaverage.com.

The Focus joins a slew of new or redesigned small cars from Chevrolet, Hyundai and Honda that all promise higher fuel economy than their predecessors.

Last week, Honda said that this spring it will introduce a redesigned Civic HF model with a 1.8-liter gasoline engine that is expected to get 41 mpg in highway driving.

'Fortunate' timing

Jim Farley, Ford's global marketing chief, said the automaker is "fortunate" to be bringing out a redesigned compact car in the midst of rising gasoline prices.

"In 2008, when the fuel prices escalated, we were launching the F series. And many reporters asked me, 'Hey, Jim what's it like launching the F series in the face of $4 a gallon gas?" Farley laughingly said at an event in New York yesterday. "The segment that grew the most the last time gas prices escalated in the U.S. was the compact segment."

Farley said the Focus' competitive fuel economy -- when compared directly with the Fiesta -- won't usurp Fiesta sales.

He said it's "pretty typical" for subcompacts to trail compacts in fuel economy despite being smaller vehicles.

"There is more engine technology in (compact) cars than in the (subcompacts)," Farley said. "But the Fiesta is still the top fuel economy leader in its segment, and the Focus will be at the top of its segment."

Different buyers

Ford said the vehicles target two different buyers. The Fiesta tends to skew toward buyers in their 20s, and the Focus attracts an older set.

The 2012 Focus is expected to go on sale next month. It will come in two body styles: a four-door sedan that starts at $16,995 and a five-door hatchback that starts at $18,790. Both prices include shipping.

The fuel economy ranking of the Focus with the Super Fuel Economy package puts it neck-and-neck with its main competitor, the Hyundai Elantra, which is rated at 40 mpg highway and 29 mpg city.

The Focus is Ford's fourth vehicle with an EPA-certified rating of 40 mpg or more.

"Our customers tell us that fuel economy is the top reason for purchasing a Focus," said Derrick Kuzak, group vice president of Global Product Development, in a statement.

Ford's other models to achieve at least 40 mpg are the 2011 Fiesta SE with the fuel economy package, the Ford Fusion Hybrid and the Lincoln MKZ Hybrid. Both hybrids earn 41 mpg in the city.

Alternative-fuelers’ day is coming -- but not for a while

Again this year, auto show visitors are fascinated by electric cars, hybrids and all manner of alternative-fuel vehicles.

They check fit and finish. They climb inside and look closely at design, appointments, even carpets. They question salesmen about price, equipment, range and delivery time.

One thing most of the visitors don’t do: They don’t buy those vehicles.

Last year, Americans bought an estimated 275,000 alternative-fuelers, according to the National Renewable Energy Laboratory. That’s about 2.4 percent of the 11.6 million new vehicles sold in the United States in 2010. Not exactly a tidal wave of demand. And more than half (140,928) of those sales were Toyota Prius units.

But don’t write off the hybrids and others in that category. Their day is coming; it just hasn’t arrived yet. And it won’t arrive tomorrow or the next day. Price is a major obstacle; $41,000 for a Chevrolet Volt? You’ve got to be kidding.

And driving range is just as great a hurdle for the pure electrics. Would-be owners are afraid of being stranded out in the boondocks, far from an electrical outlet, or even on an expressway on the way home from work.

Manufacturers speak cautiously of a 100-mile range. Sure, on a flat, straight road with no air conditioning, no headlights, no radio or other energy-draining gadget. With air, headlights, etc., the range is likely to be closer to 60 miles, maybe less. And can you imagine being stuck in a traffic jam on a summer day with no air conditioning?

Someday, we may all be driving vehicles that don’t gulp imported oil, but don’t set your alarm or mark your calendar. I figure that day is at least a generation away. Until then, Americans will stick to their internal combustion engines.

Trucks are back again

U.S. sales of light vehicles are rising, and the reason is spelled t-r-u-c-k-s. Trucks.

Truck sales were unbelievably high in the1990s and the early years of this century. They reached their apex in 2004 with 9.2 million. That’s right; more than 9 million trucks were sold in a single year!

Trucks outsold cars from 2002 through 2007.

Then came the summer of 2008 and $4-a-gallon gasoline, and there went the truck boom.

And now trucks are roaring again. Not as loudly as before, but loud enough. They outsold cars in October, November and December and again in January.

Let’s look at some numbers. In January, sales of small cars were up 14 percent over last year. Mid-range cars (the industry’s best-selling segment) rose just 5 percent, and the near-luxury, luxury and highest-priced cars climbed 10 percent.

Small change compared with truck gains. SUV sales advanced 21 percent in January; pickups, 24 percent and crossovers, 30 percent. The big surprise was the minivan segment, which reported a sales increase of 59 percent for the month. Have soccer moms had a change of heart?

But as truck sales rise, so do gasoline prices. And now Middle East tensions are pushing prices up further. The average nationwide price for a gallon of regular today is $3.25, up from $3.15 last week and from $2.70 a year ago, according to gasoline price tracker gasbuddy.com.

In the last truck boom, the Detroit 3 virtually ignored cars and turned all their efforts toward trucks. Dealers had little or nothing to show shoppers when cars came back in style.

Forewarned is forearmed.

Stabenow reintroduces bill for $7,500 point-of-purchase rebate on EVs

DETROIT -- U.S. Sen. Debbie Stabenow today reintroduced a bill that would provide a $7,500 rebate to buyers of plug-in electric vehicles at the point of purchase.

Current EV buyers get the $7,500 incentive when they file their taxes, forcing them to wait as long as a year for the tax credit.

Stabenow, D-Mich., also wants tax credits for investments in charging stations for businesses that buy medium- and heavy-duty hybrid trucks. Depending on the truck's size, the credit could be worth between $15,000 and $100,000.

The proposal includes more funding to develop the U.S. advanced battery industry.

The Charging America Forward Act was introduced last August, but never passed into law.

Stabenow's revival of the proposal comes about two weeks after two other Michigan congressmen proposed expanding the number of electric vehicles and plug-in hybrids eligible for the federal tax credit.

On Jan. 26, U.S. Rep. Sander Levin, D-Mich., proposed legislation in the House and on Jan. 31 his brother, U.S. Sen. Carl Levin, D-Mich., introduced a similar bill in the Senate that would increase the per-manufacturer cap on the $7,500 tax credit from 200,000 vehicles to 500,000.

The rebate was started as part of the Recovery Act of February 2009. It is available on five vehicles -- the Chevrolet Volt, the Tesla Roadster, the Nissan Leaf, the CODA sedan and the Wheego LiFe. It is phased out after a manufacturer sells 200,000 units.

General Motors Co. has said the cap could hinder future sales of the Chevrolet Volt, which sells for $41,000, with delivery, before the credit.

“We are pleased to see Senator Stabenow's legislation that integrates all of the components necessary for successful acceleration of electric vehicles in the marketplace,” GM spokesman Greg Martin said in a statement.

“We look forward to working with Congress on legislation that leads to widespread adoption of electric vehicles."

President Barack Obama has pledged to expand r&d in batteries and electric drivetrain technology, including a 30 percent increase in federal grants.

“With more research and incentives, we can break our dependence on oil with biofuels, and become the first country to have a million electric vehicles on the road by 2015,” Obama said Jan. 25 in his State of the Union address.

The administration also is extending initiatives to improve electric vehicle infrastructure in U.S. cities. As many as 30 communities across the country would be able to receive grants of up to $10 million each to install public charging stations, electrified parking space access and fleet conversions

Ford says hybrids, EVs could be a quarter of sales by 2020

In 10 years, one-quarter of Ford Motor Co.'s global sales could be electrified vehicles and hybrids, Derrick Kuzak, Ford's group vice president of global product development, said today at the International Consumer Electronics Show in Las Vegas.

Kuzak, CEO Alan Mulally, and other Ford executives discussed the automaker's electrification goals and plans this afternoon at the show.

By 2015, Ford plans for hybrid-electric, electric and plug-in hybrid vehicles to account for 2 to 5 percent of its global sales volume, Kuzak said. By 2020, that will rise to 10 to 25 percent, he said. Hybrids are projected to make up most of those sales.

In 2010, hybrid-electric vehicles made up about 1 percent of Ford's global unit sales.

Ford has electrified vehicles in the works on compact and mid-sized platforms. More electrified vehicles could be built on other platforms, Kuzak said during an earlier media briefing. Ford aims to offer consumers more vehicle choices as the automaker complies with lower carbon dioxide emission requirements, Kuzak said.

Affordable volume

“The real step that needs to be taken on electrification is to make electrified vehicles affordable. One way to make them affordable is to drive volume. That's really the whole basis of our strategy,” Kuzak said. “Our next generation of hybrids will be at an even lower cost.”

Kuzak said Ford set such a wide range -- 10 to 25 percent -- for its 2020 electrified vehicles target because those vehicles still require government subsidies, and the level of future subsidies is unclear. Ford also will watch the impact in China of that country's new energy vehicle policy.

In the short term, Ford will offer five electrified vehicles in the United States by 2012. One of those will be the Focus Electric, which Mulally showed today.

All of Ford's hybrid-electric, electric and plug-in hybrid vehicles due by 2012 will be on compact or mid-sized platforms, Kuzak said. He said a quarter of vehicles sold worldwide are those sizes.

Kuzak said Ford's electrified vehicle business model assumes U.S. gasoline prices of $3.50 to $4 per gallon.

Honda Fit EV Concept

“Honda’s long history with electromotive technologies has enabled us to understand customer requirements,” said Takanobu Ito, Honda's president and CEO. “In Honda’s view, an electric vehicle must offer great utility and be fun to drive. Fit EV’s urban commuting capability will be a perfect addition to the full-function mobility of the plug-in hybrid and the FCX Clarity fuel cell electric vehicle.”

The Honda Fit EV Concept has a claimed range of 70 to 100 miles. Power is supplied by a lithium-ion battery and coaxial electric motor. Top speed is projected at 90 miles per hour.

Inside, the Fit EV Concept looks to be as fit as the original gas powered model. An E-drive system, first introduced in the new Honda CR-Z, allows for three unique drive settings: Econ, Normal and Sport.

Econ is said to improve range by 17 percent over the Normal setting, and 25 percent compared to Sport. Acceleration is significantly quicker in Sport mode, but going fast isn’t the main reason for buying this vehicle; practicality and economy are.

Battery recharging takes up to 12 hours using a 120-volt outlet, half that with 240 volt. On a stand nearby, Honda also displayed their latest home charging system. Swipe a card in front of the main screen and plug in to begin the recharging process.

Additionally, Honda unveiled a new plug-in hybrid system designed specifically for midsize to larger vehicles. With big plans in the works for EV automobiles, Honda is once again leading the charge to reduce the use of fossil fuels and change the world one vehicle at a time.

GE to buy 25,000 electric vehicles from GM, rivals by 2015

DETROIT (Bloomberg) -- General Electric Co. will buy 25,000 electric vehicles, almost half of them from General Motors Co., by 2015 in the biggest such order ever.

Electric autos will make up at least half of GE's 30,000-car fleet, as well as leased vehicles from its GE Capital unit, the company said in a statement today. GM's portion of the order is for 12,000 vehicles including the 2011 Chevrolet Volt. Financial terms weren't disclosed.

GE's order is a boost for the Volt as GM prepares for an initial public offering after its 2009 restructuring in bankruptcy.

“Wide-scale adoption of electric vehicles will also drive clean-energy innovation, strengthen energy security and deliver economic value,” GE CEO Jeffrey Immelt said in the statement. GE's equipment generates one-third of the world's electricity.

“Electric vehicles are a real-world technology that can reduce both emissions and our dependence on oil,” GM CEO Dan Akerson said in the statement. The company plans to deliver Volts by the end of this year, he said. The sedan has an electric motor to drive the wheels and a gasoline engine to recharge the batteries once they're spent.

Immelt is positioning GE to benefit from more energy-efficient technologies by producing batteries, car-charging stations and smart-grid systems. GE said it's in a “strong position” to help 65,000 leasing customers convert to electric vehicles and sees the electric-car market adding as much as $500 million in sales in the next three years.

In the U.S., the Obama administration has committed more than $11 billion in taxpayer aid to help car and battery makers start producing electric vehicles.

Battery power

Other automakers preparing to sell vehicles powered solely by batteries in the next 18 months include Nissan Motor Co., which starts delivering Leaf hatchbacks late this year; Ford Motor Co., readying electric versions of its Transit Connect delivery van and Focus compact car; and Toyota Motor Corp., which will sell a rechargeable RAV4 SUV.

By buying so many vehicles, GE is helping drive down their price, which will spur production and increase demand for battery plants and other parts makers, Fred Smith, chairman of the Electrification Coalition, a Washington-based organization of transportation and energy executives, said in the statement. Smith is CEO of FedEx Corp.

The move will “make electric vehicles more visible and acceptable to the public at large,” Smith said. “This is good for GE, good for our economy and good for our nation.”

GE will open two customer centers to evaluate vehicle-charging, driver experience and maintenance requirements and to display an array of models and manufacturers. One will be near Detroit in Van Buren Township, Mich., as part of a new technology center GE announced last year, and the other in Eden Prairie, Minn., where GE Capital Fleet Services is based, according to the statement.

GE is investing $10 billion in the next five years in clean energy across its business lines. Its products include lithium ion batteries for cars and trucks via a venture with A123 Systems Inc. and sodium-based batteries for use in large vehicles such as locomotives.

GE Energy Infrastructure is the company's biggest industrial unit, accounting for $37 billion of the parent company's $157 billion in revenue last year. GE is also the world's largest maker of locomotives, jet engines, medical-imaging equipment and related information technology systems.