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Hey there everyone, hope your spring breaks were relaxing. As we celebrate our third anniversary of the Driving Change Network, our intrepid Outreach Assistant Leah Rose did a little hybrid shopping this month, and her story is certainly an interesting, and in some ways, cautionary tale. UCS Washington Representative Eli Hopson has been busy too, as he’s been watchdogging the latest car craze on Capitol Hill – “cash for clunkers” (say that sentence three times fast).
Let’s see what they have to say,
Scott Nathanson
UCS National Field Organizer &
HybridCenter.org Administrator
In this issue:
Last month, we talked about state hybrid incentives and whether they might work better if government support for cleaner cars wasn’t limited to a particular technology and, instead, focused on overall performance. Of course, the federal government has been spending a lot of time—and a lot of our money—just to bail out the automakers directly. This has led to more attention to ways the government might help consumers get in on the action, trying to best leverage government dollars while stimulating consumer spending.
It’s a great concept, but, if incentive programs aren't done right, it’s also an invitation for taxpayer dollars to be spent on gas-guzzlers. Especially with high-efficiency vehicles—including many fuel-efficient hybrid models—still sitting on showroom floors, now is the time to make sure that any government-backed surge in new car sales is focused on maximizing our oil savings and emissions reductions.
 One idea gaining steam in Congress is a program called “cash for clunkers,” in which the government helps owners of older vehicles replace them with newer, more efficient models. UCS Clean Vehicles Washington Representative has been tracking this new automotive policy “it girl” on Capitol Hill and has written the latest Hybrid Watchdog on the issue.
He cautions that while this program has shown some promise in other countries, the success has been in stimulating overall auto sales; the environmental benefits of those programs have been much harder to determine. Eli suggests some guiding principles to give a “cash for clunkers” program any chance for true success. Some highlights include:
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In order to be eligible for purchase through the program, a vehicle should be in at least the top 25 percent of its class on carbon emissions or fuel economy. In the current economy, even the top-of-the-line fuel efficient vehicles—including fuel-efficient hybrids—are sitting on the lot. There is no reason to provide taxpayer funds for purchase of vehicles that do not help maximize environmental and oil security benefits.
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A vehicle being junked should get at least 25 percent worse fuel economy than today’s average vehicle—about 18 miles per gallon on CAFE tests. Because U.S. fuel economy standards have not significantly increased over the past 20 years, an older vehicle is not necessarily less efficient than a newer model.
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A vehicle being junked must be at least 8 years old, roughly the median age of vehicles on the road today. Making a new vehicle takes energy and creates pollution, so junking a relatively new vehicle and replacing it with a brand new one could cancel out much of the energy and environmental benefits of the program.
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People who junk their vehicles should be given the option of using the “cash for clunkers” incentive for purchase of transit fares and bicycling equipment. Even greater oil savings and environmental benefits can be achieved by encouraging drivers to get out of their cars and take more trips under their own power or on public transportation.
Eli notes that none of the proposals that are currently before Congress are perfect, but some are better than others. The bill introduced by Rep. Betty Sutton (D-OH) has fairly low standards for new vehicles being purchased, subsidizing vehicles that are below today’s market average for fuel economy, and thus would have no clear benefit on fuel use or global warming pollution reductions. An earlier bill introduced by Sen. Diane Feinstein (D-CA) and Congressman Steve Israel (D-NY) would require that any new vehicles being purchased exceed the fuel economy of its replacement by 25 percent, providing more guaranteed global warming pollution benefits.
While “cash for clunkers” has a nice ring, in reality a simple consumer incentives program focused on highly fuel efficient vehicles might offer similar levels of benefits, if not better, with less of a chance to game the system. So, while it would be great for the consumer to see some direct benefit to government efforts to revive the auto industry, it should be done based on clear benefits, not just catchy names. For more, head over to the Hybrid Watchdog.
- Is a price war brewing on new hybrids? While the new Honda Insight doesn’t quite meet the impressive fuel economy of the 2010 Toyota Prius, Honda does beat Toyota with its price. The new Honda Insight went on sale this month with a starting price of $19,800 while the 2010 Toyota Prius will go on sale in May with a starting price of $22,750 (essentially unchanged from the 2009 model, despite notable improvements). In this economy, the price difference isn’t trivial and has the potential to sway consumers toward buying the Insight. But Toyota just announced they will release a less expensive Prius in October, priced at $21,000. Both companies claim there won’t be a price war, but consumers will be happy to see more and more affordable hybrids go on sale. To learn more, visit the Hybrid News Center.
 United States puts in a $285-million order for Detroit-made vehicles: President Obama expects to spend $285 billion from the Stimulus Bill on fuel-efficient vehicles for the federal fleet. The detailed plans are for the federal government to purchase 17,600 new vehicles under existing contracts with General Motors, Ford, and Chrysler, swapping out older vehicles that get fewer miles per gallon for more fuel efficient automobiles. Of those vehicles, 2,500 will be hybrids. While this large purchase won’t save Detroit, it is a strong symbol of commitment to America’s auto industry and fuel-efficient vehicles. For more, visit the Hybrid News Center.
- Race for lithium-ion batteries continues: The likelihood that the next generation of hybrids will have greater electric-only operation depends in large part upon successful development of batteries that take up less room and hold greater charge. Most automakers have their sights firmly planted on lithium-ion batteries to do that job. China, Korea, and Japan all seem to have a jump start, but the United States is trying to push their way into this very important, potentially lucrative game. Battery maker A123 just won a crucial deal with Chrysler to co-develop batteries for their plug-in hybrid and electric vehicles (they recently lost out on a bid to help with the GM Volt system). The Michigan government is itself offering more than $50 million in incentives to get advanced battery plants going in the state. And in Kentucky, the state will spend between $5 million and $8 million to convert an office into a new Battery Manufacturing Research and Development Center. More battery stories can be found on the Hybrid News Center.
As I mentioned up top, Leah Rose headed out over the weekend to take a consumer-eye view at two of the new hybrid models on the street—the Ford Fusion Hybrid and the Honda Insight. Her experience was quite illuminating. Here’s how it all went:
On a sunny Saturday morning, I eagerly set out to test drive the two brand new hybrid models: the Ford Fusion Hybrid and the new Honda Insight. I figured not all dealerships would have them quite yet, so I called ahead to make sure my local dealers had the hybrids available. After a few phone calls, I had two appointments set.
 First I headed to the Ford dealership, excited to see if the Fusion Hybrid could really go up to 47 mph without using any gas. But it turned out they didn’t actually have any Fusion Hybrids. I bit my tongue about the fact that someone on the phone had assured me I would be able to drive one—they had won the “victory” in getting me to their lot.
The two of us went inside anyway to discuss my options. Once inside, I was quickly handed off to a much slicker salesman who assured me the Fusion and the Fusion Hybrid drove exactly the same. Despite my furrowed eyebrows and confused look, the next thing I knew I was driving a Ford Fusion. Once we returned to the dealership, I was greeted by another salesman who wanted to hear all about my drive in the Fusion.
I tried to focus his attention back to the hybrid and that’s when he dropped a bomb. The surest way for me to get a Fusion Hybrid was to put a few thousand dollars down as a deposit and they would order one “specially made for me;” however, they were adding a $3,000 to $4,000 mark-up to the MSRP. That put the price above $30,000. Yikes. But then, with a gleam in his eye, he asked me what was more important: fuel economy or a hybrid. Confused once again, I said a hybrid. The salesman was one step ahead of me and whisked me over to the Ford Escape Hybrid. It was time for me to go.
I left the Ford dealership feeling extremely disappointed. The dealership lied to me and gave me the run-around. But the worst part was the tone and body language when telling me about how to get a Fusion Hybrid. He made it sound like it would be a huge hassle to order the car. And then, as if he was letting me in on a secret, he had the gall to tell me the Fusion Hybrid cost too much. It was clear none of them had any intention of selling me the hybrid; they all wanted me to drive off in a Fusion or Escape Hybrid. Granted those were cars sitting on the lot at that moment, but I left feeling frustrated and in no mood to buy a car.
Hey, Scott here. Just wanted to jump in for a second. Representatives at Ford really need to pay Leah’s story some attention. As you might remember, I had a similar experience when I tried to get a Prius a few years ago. But, back then, there was a major waiting list for the Prius, and it was pretty much the only game in town. With the Camry Hybrid already well in place, Ford is hardly in a position to have its dealers talking its own product down, much less having their dealers attempt to use price premiums to gouge the consumer.
 Next, I headed over to Honda with a feeling of dread that I was wasting gas and precious weekend time. Pulling up to the Honda dealership, I was relieved to see four Insights parked right in front. A salesman greeted me at the door and within five minutes I had the keys in my hands. I had done my research beforehand and immediately pushed the green “econ” button to the left of the steering wheel. With this option on, the car conserves energy changing the behavior of the engine, electric motor, transmission, and even the air conditioning and cruise control to maximize efficiency. I figured with my lead foot, I needed all the help I could get. I sped off the lot and was surprised by how quickly the car moved.
The first thing I noticed was the ambient light behind the speedometer became dark blue. Again, from my research, I knew that meant I wasn’t driving efficiently. I looked sheepishly at the salesman and eased off the gas. The ambient light turned green and I immediately felt better. While driving around I kept my eyes on the road but was more curious about what my braking and accelerating did to the light. There were also other indicators on the dash to let me know what was going on with the engine, battery, brakes, and fuel economy. It was a lot to take in during the short drive and I wasn’t ready for it to end when the salesman had me turn back into their lot. At the end of the drive, the Insight told me my average fuel economy for the trip and scored me based on my driving. I did just okay and was awarded two leaves out of a possible five. I bet if I drove it again, I could do better.
With the test drive over, I jumped out of the car to take it all in. At first glance, the Insight does look an awful lot like the Prius, but to me has a somewhat sleeker, sportier appearance. I then jumped into the backseat and was honestly amazed that I fit with room to spare. The only thing I didn’t like about the Insight was the back window. It’s tiny. Part of the problem is my current car has a huge back window, so it’s just something that I’d have to get used to. After my thorough inspection of the car, I turned to the salesman to give my thanks. He gave me his card and walked me to my car. I kept waiting for him to suggest we drive another car or to be greeted by another salesman or something else equally time-consuming to occur, but I got in my car and drove away in a much improved mood.
I had a blast driving the Insight and learning how to modify my driving habits to use the car more efficiently. If I needed a new car, the Insight would definitely be on my short list. I felt good driving it, and the model I drove—the EX—is available now and is well priced at $21,300.*
In honor of Leah’s test drive of the Generation 2 Insight, I thought we’d take a look back at a few of the loyal Honda hybrid enthusiasts who bought the original two-seater. If you have a Generation 1 or 2 Insight, or any other hybrid for that matter, please submit your testimonial here. Remember to get your hybrid owning friends to sign up too!
 William Kerr of Topanga, CA thinks every new car should be required to have a real-time fuel consumption display like the Insight. Having that continuous feedback directly in one's eyeline will influence even the most oblivious driver to pay attention to their fuel usage...a beginning.
 Jim Partin and Dave Haynes of Bedford, NH both own Insights. They happened to work at the same gas station during the Arab Oil Embargo in 1973, an event that left a lasting impression on them and this country's dependence upon foreign oil! (note the license plates) Jim is an airline pilot and drives 65 miles each way to the airport for work, one gallon of gas each way. He says that, compared to the car he previously owned, he saves three gallons of gas on each roundtrip commute to work.
 Katherine Cook of Bangor, ME loves her hybrid! It gets 50-60 miles to the gallon and handles like a dream. The winters in Maine can be severe with temps below zero and lots of snow. Not a problem for her Honda Insight!
 Douglas McNeill of Greenbelt, MD puts it succinctly: this car saves money and saves the planet.
That's it for this month. Enjoy your April!
* The views expressed by Ms. Rose are her own impressions and do not constitute a product endorsement by the Union of Concerned Scientists.
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