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Hi everyone, I hope all your cooking and travel plans are well in hand for Thanksgiving. I’m lucky because I’m reducing my personal carbon footprint by hosting the family festivities myself this year. Before I go pop that turkey in the oven, we should definitely talk turkey about the Detroit automakers asking for a $25-50 billion stocking stuffer loan from taxpayers. They claim they’ll go belly up without it.
So let’s get to it,
Scott Nathanson
UCS National Field Organizer &
HybridCenter.org Administrator
In this issue:
 Let’s face facts, the Detroit automakers are in trouble, and it’s not all their fault. The economic meltdown and credit crunch have pushed auto companies, most notably GM and Chrysler, from teetering on the brink of solvency, to hanging onto the fiscal cliff for dear life. Thirty years of pushing against fuel economy and safety innovation seemed to be leading these companies toward this day, but the financial crisis has brought the chickens home to roost sooner than expected.
Using the power of the retrospect-o-scope, it certainly looks like investment in hybrid and other fuel-saving technologies works well as an “insulator” for a slower market. For while hybrid sales did drop 10 percent in October, that was miniscule compared with the nearly 32 percent drop in the overall light duty vehicle market. Indeed, hybrids increased their overall market share during this period. And, continuing a trend toward greater demand on fuel economy, it was the Lexus hybrids that took some of the hardest sales hits.
Ford is readying their Fusion/Milan hybrid sedans for market next year, which could help give the company a solid building block. (Ford certainly seems to think the car will have broad appeal, making it the first hybrid to serve as the NASCAR pace car—more in the DCN newsbytes below) Chrysler’s only recent hybrid news was the closing of its Durango and Aspen hybrid production plant in Delaware. GM seems to have bet more heavily on a “leapfrog” approach, looking to the Volt and Vue plug-in hybrids as their market innovation. The Vue is being pushed back until at least 2011, and the Volt is still being scheduled for 2010. They do still have plans for their two-mode system, but even those are being delayed. (On a personal note, I hate to see them push back their planned two-mode hybrid crossover until at least next year—could it be the first 30mpg+ seven-seat vehicle in America that so many of us have been waiting for?)
 This rollback on hybrids is not just affecting American companies either. Carlos Ghosn, head of Nissan and Renault, says that they are saving their cash to weather the sales storm, and greener cars will be one of the items taking a hit. Toyota is considering delaying the opening of its Prius plant in Mississippi. So while fuel efficiency is still considered of paramount importance to an American public concerned with climate change and oil dependence, the opportunities for more options sooner is certainly at risk.
As the fiscal rubber meets the road for all three Detroit companies, their executives have been running around Capitol Hill looking for their share of the bailout pie. Last December, Congress approved $25 billion in loans to help the auto industry build vehicles that exceed new, more stringent fuel economy standards. We felt those loans were a reasonable way to help Detroit automakers compete and retool their fleet as a complement to our success in enacting the first increase in Corporate Average Fuel Economy (CAFE) standards in more than 30 years.
The Detroit automakers now argue that the current fiscal crisis makes those forward-thinking loans insufficient. They need an immediate cash infusion from the American taxpayers or they may go under. The debate over this has been intense, with some, including President-elect Obama, feeling that we must act sooner rather than later to ensure these auto giants do not fail. But many members of Congress have been critical of the bail out, such as Rep. Michael E. Capuano (D-MA), who bluntly said, “My fear is you're going to take this money and continue the same stupid decisions you've made for 25 years.”
While we may not go so far as that, this statement by UCS Washington Representative Eli Hopson is fairly clear. We believe that Congress should link any financial assistance to U.S. automakers to continued fuel economy improvement for their vehicle fleets. Requiring public benefits for public dollars will help strengthen the industry, reduce our dependence on oil, and help prevent the worst consequences of global warming.
“Congress has an opportunity to make the auto industry stronger by adopting a rescue plan that helps it build vehicles consumers want and wean the country off of oil,” said Hopson.
 A sensible step would be to require assistance conditional on the automaker improving the average fuel economy of their vehicle fleets by 4 percent per year, a goal the next president endorsed in his “New Energy for America” plan. Such a fuel economy improvement would be roughly equivalent to California’s tailpipe standard for global warming pollution. That standard, which was blocked by the Bush administration, would require a 30 percent global warming pollution reduction from passenger vehicles by 2016.
The math is fairly simply. Consumers need to play a more significant role in ending oil dependence and curbing global warming pollution. So we invest in the automakers, but only if we, the taxpayers, are getting what we need. It’s “workfare” for the automakers, and it’s the smart path for us to choose. Because for $50 billion, we’ll all be stakeholders in Detroit, and we want a return on our investment.
- Ford Hybrids to Pace NASCAR Race: For the first time in NASCAR history, two 2010 Ford Fusion Hybrid models will be the pace cars at the NASCAR Sprint Cup during the championship weekend in Miami, Florida. Ford also unveiled the Fusion Hybrids at the L.A. Auto Show on November nineteenth. According to Ford, the Fusion Hybrid will get 700 miles of city driving on one tank of gas. To learn more, visit the Hybrid News Center.
- U.S. Sales of Hybrids Down, but Market Share Up: There isn’t much good news coming from the auto industry these days, especially when it comes to sales. October was particularly bad with overall new vehicles sales in the United States down 31.9 percent and hybrid sales down 10 percent—compared to October of last year. A thin silver lining is that hybrids accounted for a higher percentage of total new vehicle sales, rising from 1.98 percent to 2.26 percent of total new vehicle sales. Check out this article to see which hybrids are selling and which are not at the Hybrid News Center.
- Industry Gloom to Cast Shadow on L.A. Auto Show: The mood leading up to the L.A. Auto Show has been less than festive. Low sales, bailout hearings in Washington, D.C., and GM’s recent decision to not attend the show are all weighing down on the industry. Auto shows are typically full of dazzling lights and flashy cars, but the economic crisis has dampened the party. One shining light is the continued focus on fuel economy. The new Honda Insight will make its North American debut and Ford will show off its Fusion and Milan hybrid models. Next month we’ll fill you in on how the L.A. Auto Show went. For more now, head to the Hybrid News Center.
Every grade-schooler learns about the Pilgrims and Native Americans working together and sharing the first Thanksgiving feast in Plymouth, Massachusetts. The Driving Change Network has a number of members living in volatile gas prices, I bet they are all thankful for their hybrids--I know I am!
 Jesse Rudavsky has put more than 223,000 miles on his Toyota Prius, traveling across the country multiple times and even going all the way up to Alaska. Jesse vows to never buy another non-hybrid.
 His father, Benjamin Rudavsky, easily gets 50 miles per gallon in his Honda Civic Hybrid.
 Ken Read-Brown had environmental reasons in mind when he purchased his Toyota Prius. He says it’s the most enjoyable car he’s ever owned and thinks everyone should drive one!
If you own a Prius, a Civic Hybrid, or any other hybrid model, or know of anyone who does, please remember to tell them to submit their testimonials today!
Enjoy your Thanksgiving!
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