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Things are hopping with new fuel economy legislation on The Hill, new hybrids at the auto shows, new testimonials on “Who’s Got Hybrids?” and new questions about hybrids past, present, and future. So let’s “Spring forward!”
Scott Nathanson
UCS National Field Organizer &
HybridCenter.org Administrator
In this issue:
As you know, we at UCS see hybrid vehicles not as an end unto itself, but as a leading edge in the mix of technologies available right now to reduce U.S. oil dependence and global warming pollution on a fleet-wide basis. We are therefore quite excited about the renewed interest in meaningful changes to our long-dormant Corporate Average Fuel Economy (CAFE) system. UCS Washington Representative Eli Hopson spoke at the press conference for the launch of one of the most promising initiatives. Here’s his report back:
 Last week, I spoke at a press conference around the introduction of the Fuel Economy Reform Act, H.R. 1506, which would dramatically improve the fuel economy of the cars and trucks on America’s roads. Bill sponsors Ed Markey (D-MA) and Todd Platts (R-PA) were joined in support by a remarkably bipartisan list of 37 original cosponsors including Representatives Hilda Solis (D-CA), Mike Castle (R-DE), and Chris Shays (R-CT). Also speaking in support of the bill were James Woolsey, former director of the CIA, William Odom, a former director of the National Security Agency, as well as representatives from the Consumer Federation of America and the National Council of Churches.
The broad-based constituencies coming together created a palpable feeling of optimism (though standing outside in a gorgeous March day in Washington didn’t hurt either) that the political will was finally present to increase the fuel economy of the nation’s cars and trucks after 20 years of delay. This sense of optimism on fuel economy has been growing in Washington recently. The November elections brought in a host of new members who may have a different viewpoint on energy security and global warming than their predecessors, President Bush announced in his State of the Union his goal to cut gasoline consumption, and long-time opponents of fuel economy increases are now signing on in support of strong legislation!
Before you think this is going to be a cakewalk, however, let’s remember that the White House’s words can be full of sound and fury, and as Congressman Markey points out, signify nothing. And we have other obstacles we’re up against as well. The House Energy and Commerce committee Chairman John Dingell (D-MI)recently held his own fuel economy hearing. Dingell, long-time friend of the auto industry, seems to be stuck in 1955, long before the first oil crisis when cities were ripping up trolley tracks to put in GM buses, and the argument of the day was whether requiring seat belts would put the auto industry out of business. Friends of the industry trotted out tired arguments against increasing fuel economy, disregarding the benefits to consumers from saving money on gasoline, to the environment from reduced emissions, and to our national security from reducing our dependence on oil.
With no witnesses from outside the industry, the discussion was mostly self-congratulatory. Would automakers be willing to work with the Committee on regulating carbon? Yes, the witnesses said, absolutely, as long as the burden was placed “upstream” and was tradeable across sectors (this is executive-speak for “let someone else do it”). Hasn’t the auto industry already done so much to reduce carbon emissions and increase fuel economy? Again the witnesses said yes, pointing to their investments in flex-fuel vehicles (which today actually allow the manufacturers to decrease their fuel economy) and hydrogen fuel cell vehicles (an investment highly subsidized by the government, and not likely to be available to consumers anytime soon).
Yet, even in this alternate reality, there were signs that the façade is cracking. Chairman Dingell himself said that it is no longer good enough for the automakers to say what they cannot do, they must also offer solutions. Hopefully those solutions will actually reduce our oil dependence, reduce global warming emissions, and save consumers money. We are letting congressional representatives know that support for the Fuel Economy Reform Act is a good place to start.
If you want to learn more about the Fuel Economy Reform Act, and take action to urge your representative to support the bill, click here.
Instead of our usual DCN Newsbytes, I wanted to actually go into a little more depth on some of the stories our great Program Assistant Lindsay Vidal hunted down for our Hybrid News section. This past week, there were a few articles I thought were worth some off-the-cuff comments:
 Whoops, these hybrid things really are for real: Very interesting article in BusinessWeek about just how badly the Germans dropped the ball on hybrid technology. Not only did they not see the emerging market soon enough, but then they pulled a, “How hard can this be?” when Japanese companies warned them about the complexity of pulling off a full hybrid system. The end result, German hybrids getting on the road a full decade late, with a lot of technical and PR ground to make up.
Another late entry will be the Koreans, and this interesting inside look at Hyundai’s hybrid development facility notes that at first they, too were skeptical of the commercial viability of hybrids, because they thought it was a short-term stepping stone to fuel cells. Now they’re caught with one key stumbling block: cost. Hyundai knows it’s made its reputation on solid vehicles as lower prices, so the up-front costs of getting started on hybrids on a small scale can be a challenge for a company with that business model.
Is it time to buy a hybrid, or not? A recent evaluation by Edmunds suggests yes, and right now. With production finally catching up with demand, automakers are discounting the vehicles on top of the federal tax credits already in place (and remember, the Toyota credits fall from 50 percent to 25 percent of their calculated value at the end of March). Not to mention all the other perks available in many states, this does seem like a great time to jump in (just a shout-out here that Lindsay and I have done a recent freshening of our Hybrid Incentives page, and a number of new incentive initiatives and states are in play).
An interesting contrary view comes from BusinessWeek, that does a pro and con on hybrids. The “anti-hybrid” side makes a bit of an overstated point (how long an average hybrid takes to pay back its premium in reduced fuel costs—not taking into account other important factors like resale value), but a valid one, about the lack of real fuel-saving hybrids on the market. Of new models made, the Prius, Civic Hybrid, Camry Hybrid, Altima Hybrid, Escape Hybrid, and Mariner Hybrid are considered real fuel savers. The Accord Hybrid, the two Lexus Hybrids, and the Highlander Hybrid all focus to a lesser or greater degree on muscle rather than maxing-out the miles per gallon. With the Tahoe, Yukon, and Durango Hybrids solidly in the muscle hybrid camp, and the new Lexus V8 Hybrid sedan ready to zoom into showrooms, the fuel economy-focused hybrids will actually be in the minority of models offered in ’07—a bit of a disturbing trend.
There are a number of other articles of interest, so check them out if you want some interesting reading.
Green was the word once again at this month’s Geneva Auto Show. Here are some highlights:
 Lotus: Lotus made major waves at the Geneva Auto Show, revealing the EVE (“Efficient, Viable, Environmental”) Hybrid concept. Lotus touted this full parallel hybrid sedan at an estimated 50.2 mpg (EU). The concept is a part of the company’s larger hybrid development program focused on integrating hybrid technology into existing conventional models.- Toyota: With the premiere of the Hybrid X concept, Toyota seems to be indicating a trend toward differentiating its hybrids from the rest of their fleet. The name of the concept comes from the “X” shape, due to the double U-shape styling, seen when the vehicle is viewed from above. Much like the Generation 2 Prius, it looks like Toyota is trying to combine sleek styling with attention to spaciousness, as the “X” is touted as having “conventional family car” interior space.
- Kia: Kia Motors showcased the new 44 mpg Rio Hybrid. Using a combination of technologies and lightweight components, Kia says they were able to achieve a 37 percent reduction in tailpipe emissions and a 44 percent improvement in fuel efficiency over the conventional gasoline model. The vehicle will be used in the South Korea Ministry of the Environment’s hybrid testing program later this year.
- Honda: Honda is clearly working hard to design a small hybrid that will be affordable and appealing to a wider audience than the discontinued Insight. At the Geneva Auto Show, Honda premiered its stylish new Small Hybrid Sports Concept. While the name is not exactly a thrill, the fact that it’s a sports car based on a four-cylinder engine could make it an attractive style/substance combination if it hits the market.
- Saab: Saab announced plans to produce a hybrid vehicle based on the full-hybrid technology currently being developed through the General Motors, Daimler-Chrysler, and BMW alliance. Although there is no word about when Saab will begin selling its first hybrid, the company is expected to show the concept hybrid at April’s Stockholm Motor Show.
- DaimlerChrysler: The Mercedes-Benz Car Group is developing a rear-drive, luxury-based mild hybrid in cooperation with BMW. The hybrid, perhaps a version of the S320, is expected to begin production in 2009. Mercedes may also introduce a second, full hybrid vehicle around the same time, based on the technology developed by the GM-DC-BMW alliance.
We continue to receive great new submissions for our “Who’s Got Hybrids?” feature. Here are a few highlights:
 Now that spring is officially here, we thankfully won’t have to shovel our hybrids out from under a foot of white stuff until next winter. Jason Koontz of Rock Island, IL submitted a picture of his Prius Gen. 2 after a snowstorm this winter in Syracuse, NY. In his testimonial, Jason explains that he chose the Prius because he wanted to set an example by getting a fuel-efficient car. He notes that his mpg decreases due to Rock Island’s hilly terrain, though he achieves over 50 mpg in Chicago's stop-and-go traffic.
 Ed Fremouw of Ashland, OR wrote in that his Honda Insight has averaged 50.0 mpg in mostly city driving. Ed also notes that his wife and he have taken several road trips “in comfort and with plenty of storage space.” I wish them many safe and happy road trips as the spring/summer travel season begins.
 I just had to include this somewhat startling picture submitted by Seth Downs of Anchorage, AK of his Prius Gen. 2 in the Utah dessert. (Look out below!)
I encourage you to check out all the new pictures and testimonials when you get the chance. Of course, we’re always looking for new people, so please encourage your hybrid-owning friends to come join us!
I recently got an interesting query I thought I’d share:
Q: Why is there no outrage about the Honda Insight production being discontinued? I know it's good that Bush is finally 'seeing the light' and maybe they'll give up on hydrogen and build more hybrids immediately—but why couldn't more support be thrown behind this wonderful little car?
 A: There’s no doubt that the Insight, the first hybrid in America, was a nice little model (though the smog forming emissions, especially on the stick model, left something to be desired). But I think the business decision to focus hybrid technologies on other models may pay off for Honda. If rumor is true, the Insight’s drivetrain will not die, but be put into their Fit model as soon as this year. I think that would be great news as the Fit is a popular model and the 5-seat capacity gives them a broader audience to target with a subcompact.
They are also looking toward a lower-cost new model for 2008. Moreover, Honda’s new two-seat hybrid sportscar concept that I mentioned from the Geneva Auto Show could be an indicator that they plan to try and update the Insight and make it appeal more toward the traditional two-seat coupe crowd. The fact that the concept has a four-cylinder engine shows some hope that Honda will continue to shift its focus toward expanding its hybrids with a focus on fuel-efficiency.
So, looking at Honda’s big picture, and the fact that their Insight sales have been dwindling, it is hard to muster up outrage at Honda for shifting directions. If their shift includes more muscle hybrids like their Accord Hybrid, however, we’ll have no problem working ourselves up into a lather.
Happy Spring to everyone, and remember Earth Day is right around the corner (and you know we have something in mind)!
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