Hey everyone, I hope this sizzling summer hasn’t been too unbearable for you. My family and I are about to fuel up the Prius and head for our August vacation up in Vermont. Here’s hoping our old ’05 hybrid can set a new mileage record. We’ve got some hot topics lined up for you this month, so let’s get to it.

Stay cool,

Scott Nathanson
UCS National Field Organizer &
HybridCenter.org Administrator

In this issue: 

• Are hybrids being squeezed out of the market…by the internal combustion engine?
• DCN Newsbytes
• Is conversion the answer?
• "Who's Got Hybrids" Now?

Are hybrids being squeezed out of the market…by the internal combustion engine?

Ezra Dyer, an editor at Automobile magazine, just wrote an interesting and provocative editorial that began with “The hybrid age is coming to an end.” This, of course, came as news to me, as I’m sure it will be to most of you.

His point, however, is an interesting one, as in essence, he is making the case that today’s hybrid vehicles are going to get squeezed out from both sides.

On the one side, you’ll see those looking for the most efficient car they can drive pay a premium for more advanced technology vehicles—plug-in hybrids and full electric vehicles (EVs). There seems to be some evidence of this, as a great number of those who have put money down for the new Nissan Leaf EV are currently Prius owners.

On the flip side, the automakers have finally started making the changes to their conventional vehicles that we at UCS have been suggesting for so long. Dyer mentions the Chevy Cruze Eco, a vehicle our own senior engineer Jim Kliesch praised during his tour of the New York Auto Show. Indeed, Ford is so impressed with its new small gas sipper, the Fiesta, that its ads actually tout its 40-mpg highway fuel economy as beating 21 other hybrids—which includes its own models.

From a UCS perspective, the greatest irony of them all now comes with the newly remodeled 2011 Ford Explorer SUV. Our friends over at HybridCars.com headlined their recent article “New Ford Explorer, Not A Hybrid, Boosts Fuel Economy By 30 Percent.” USA Today gives more details, talking about the wonders of their Ecoboost 4-cylinder 2.0 liter engine that has the power of a Toyota Camry’s V6. The ironic thing is that this 2011 Explorer is taking more than one page out of the 2003 UCS Guardian, where we detailed how the baseline improvements in body and engine design could net a—you guessed it—30 percent improvement in SUV fuel economy compared to the Ford Explorer.

And we may very well continue to see innovations to the good old internal combustion engine. While the Obama administration encourages investments in batteries as the path to the future, another major American employer, Bill Gates, has gone in with entrepreneur Vinod Khosla, to pump $23.5 million into EcoMotors, a 2-year-old venture that promises a smaller, lighter, equally as powerful gasoline engine that improves fuel economy by 50 percent. That’s a significant private investment by a couple of serious investors.

So, is Dyer right? Wither the hybrid? I’m not so sure. I think the most recent piece of automaker evidence that runs contrary to the stated case is the upcoming Lincoln MKZ Hybrid. While its sister, the Mercury Milan Hybrid, strattled the line between luxury and practicality, Lincoln is really Ford’s version of a Lexus—it’s luxury line. So it was with some surprise that the word came down that the MKZ Hybrid would be getting the exact same MSRP as its conventional equivalent—something that Ford did not do either for the Fusion or Milan Hybrids. Now, combine that with the fact that the Mercedes S400 Hybrid is priced below its conventional equivalent, primarily because it uses the hybrid drivetrain to downsize the gasoline engine, and the fact that Honda’s new hybrids have come in at under $20k. I think those make a strong case for the efficacy and value of hybrid technology actually increasing with the improvements in gasoline engines, rather than being squeezed out by them. Indeed, it’s interesting that Nissan, who has been so bullish on EVs and bearish on hybrids, is really pushing its first independent hybrid vehicle, the Infiniti M35 Hybrid, noting that you will be able to get a luxury sedan with the same fuel economy as its little Nissan Versa.

The EV and plug-in hybrid market is about to arrive, and it is only going to grow. But I see the improvements in the conventional gasoline engine more as a wonderful step towards the mainstreaming of today’s hybrid technology than as its replacement. Through reducing price points while improving efficiency and maintaining power, I see hybrid technology increasingly being used as the technology of rule, rather than the exception. One can already see some signs of this, as Honda and VW are not rolling out ambitious hybrid expansion plans, and Honda has announced that in Japan, all of its Civics will be hybrids by 2011.

All of this suggests that as we move to the suite of technological solutions that take us beyond the 35mpg standard set for 2015, hybrids will play a central role in making the cuts in oil use and global warming emissions we need from the transportation sector. It seems the Chinese are already realizing this, as the government is mandating that all private cars sold after 2012 have idle-off capability. I for one will be happy when I go to the dealership in the not too distant future and hear “you want just a gas engine? Well I think we could special order one for you, but let me tell you why you’re better off with a hybrid…”

DCN Newsbytes

• Progress in the Toyota/Tesla Partnership: While the announcement of the partnership between Toyota and Tesla was initially received with some raised eyebrows and skepticism, recent developments in the alliance prove that the partnership is serious. First, Tesla said it will deliver two prototypes to Toyota by the end of July, which Toyota will then release for test runs to a small group of clients. These prototypes will be based on current Toyota vehicles and equipped with Tesla battery packs and motors. A second announcement from the two companies also highlights the progress already made as a result of the partnership. Toyota and Tesla said an electric version of the Toyota Rav4 is in the works to go on sale two years from now. The e-Rav4 could help expand the market for electric vehicles and provide an alternative to the much smaller electric cars currently in production. It appears that Toyota saw some real, practical value in Tesla’s technology—far more than just green PR for the company. More in the Hybrid News Center.
• Hybrids Get the Boot from CA HOV Lanes: California is making room for the next generation of electric vehicles, which is good news for electric car owners, but unwelcome news for hybrid car owners. Governor Arnold Schwarzenegger signed Assembly Bill 1500, allowing owners of electric vehicles and cars running on compressed natural gas to use California carpool lanes until January 1, 2015. Hybrid vehicle owners, who have enjoyed this perk since 2004, will no longer be allowed to use these lanes when the current law expires on January 1, 2011. Senate Bill 535, if passed by the Senate and signed by the governor, would extend the deadline to July 31, 2011 and also offer the perk to plug-in hybrids. Even so, hybrid benefits seem to be on the decline as new technology is on the horizon. Several other states, including Colorado, Florida, New Jersey, New York, Virginia, Tennessee, and Utah, might also follow California’s lead.  More details in the Hybrid News Center.
• Honda’s Hybrid Push: Honda is revamping its hybrid strategy in hopes of re-establishing itself as a leader in fuel efficient vehicles. Although the company took an early lead in hybrid development about a decade ago with the Gen. 1 Honda Insight, it has since fallen behind. Now, Honda President Takanobu Ito said the company plans to release a plug-in hybrid vehicle and an all-electric vehicle in 2013. In addition, Ito has been pushing his engineers to have the next generation Insight surpass the Toyota Prius’ fuel economy numbers. More evidence of the shift in Honda’s overall strategy can be seen in the company’s decision to discontinue production of the gas model Civic in Japan. Instead, only Civic Hybrid models will be available to Japanese consumers. Lastly, Honda also announced that it will dedicate its Yorii factory in Japan to producing hybrid SUVs and minivans. No hybrid minivans are available yet to U.S. customers. If Honda can get a hybrid minivan on the market and produce a hybrid that beats the miles-per-gallon of the Prius, it could find itself back on top of the hybrid vehicle market. More on Honda and other automakers' plans in the Hybrid News Center. 

Is conversion the answer?

Whether it’s intermarriage or turning a Prius into a plug-in, conversion is a tricky question. Our Program and Outreach Assistant Leah Parker has spent a little time pondering the latter part of the dilemma, and here’s what she’s come up with.

I receive a variety of questions to the HybridCenter email box about converting a conventional car into a hybrid or a hybrid into a plug-in hybrid. Questions often include where can I get my car converted? How much does it cost? What will be the improvement in fuel economy? How does the conversion affect my warranty? Adding to these, the question that we ask ourselves here at the Union of Concerned Scientists is: can car conversions play a significant role in our clean car future? As more and more companies are starting to build and install hybrid and plug-in hybrid conversion kits, it’s time to dig in deep to find out what’s out there.

Where can I get my car converted*?

• Poulsen Hybrid will convert your conventional car to a hybrid at their headquarters in Shelton, Connecticut for $8,600. The installation includes two electric motors mounted onto the rear wheels of your car, adapter plates, motor controllers, regenerative braking, a 4.3 KWh Lithium-ion battery pack, and an on-board charger. The total weight added to your car is 208 pounds. Poulsen Hybrid is currently in the process of setting up an authorized network of dealerships and auto repair facilities around the country to do the conventional to hybrid conversion.
• Luscious Garage in San Francisco, CA will convert your 2004-2009 Toyota Prius to a plug-in hybrid for $13,500. According to their web site, the plug-in conversion will allow the vehicle to run on electricity only for the first 25 miles, and then it will operate like a standard Prius. So far, Luscious Garage has done seven conversions.
• Green Gears in San Francisco, CA also converts the Toyota Prius to a plug-in hybrid for $10,000. According to the company, they have converted nearly 700 hybrids in their San Francisco shop, for both individuals and fleet owners. Green Gears is joining forces with Pro Auto Care in Denver, Colorado to take advantage of the Colorado Conversion Tax Credit, which gives residents a $6,000 tax credit to convert their Prius to a plug-in hybrid. As part of the promotion, they are offering the conversion for $3,995 for the first 50 customers. According to their web site, converted plug-in hybrids will achieve up to 100 miles per gallon for the first 30-40 miles of driving on a single charge. After that, the vehicle will operate like a standard hybrid.
• 3ProngPower in Berkeley, CA installs plug-in conversion kits into all three Prius generations and plans on starting Ford Escape Hybrid plug-in conversions in 2010. 3ProngPower charges $3,499 for installation plus the cost of the kit ranges from $3,699 to $12,699. 3ProngPower is considering setting up shop in Boulder, Colorado to also take advantage of the plug-in conversion state tax credit. With their system, they admit the new mileage will vary depending on road conditions and driving habits, but the company claims consumers who drive 20-40 miles a day will see 60-85 miles per gallon.
• A123 Systems is a company that builds and distributes plug-in hybrid conversion kits to Toyota dealers and auto repair shops around the country, including Green Gears. Their kits are only for the Toyota Prius. It adds a 187-pound lithium-ion battery pack and a 100-volt charging port to the hybrid. The battery pack is put in place of the spare tire which is moved to the trunk, resulting in lost cargo space. When the plug-in hybrid is operating like a standard hybrid (i.e., after you’ve driven beyond the electric range), A123 notes the fuel economy does drop two miles per gallon below regular Prius levels due to the added weight of the battery pack.
• Enginer Green Tech Co. Ltd builds kits for all three generations of the Prius, Ford Escape Hybrid, Fusion Hybrid, and Honda Insight. Kits range from $1,995-$5,495 (add an extra $1,000 for CA residents for the 5 year warranty per CARB’s requirements). Their web site includes a list of installers around the world (30 are in the United States).

What about the warranty?

The big question facing hybrid owners who are considering converting to a plug-in hybrid is how the conversion will affect the car’s warranty. In short, the conversion does not necessarily automatically void your warranty. Toyota, however, will not cover any problems caused by the conversion, and will take each claim on a converted hybrid on a case-by-case basis. A123 Systems says they will cover any needed repairs to the conversion components for up to three years. Before deciding to convert your hybrid to a plug-in, be sure to ask for more information about the warranty.

Of course, with the Chevy Volt coming to market this year, and a plug-in Prius not far away, plus the full electric Nissan Leaf, the conversions will now have to compete with new plug-in and EV models and the up-to $7,500 federal tax credit for those vehicles. It will be interesting to see how the conversion market develops once these options are available.

Can vehicle conversions play a significant role in our clean car future?

Perhaps. The vast majority of hybrid to plug-in conversions are being done on the Toyota Prius. That’s mainly because the Prius is by far the most popular hybrid on the road, making it commercially viable to design and build a system to convert it. Companies say they are building kits to convert the Ford Escape Hybrid, Honda Insight, and other hybrid models. What it really comes down to is price. Hybrids are currently more expensive, and some are squeamish about spending an extra $3,000-$5,000 premium for a hybrid. To purchase a hybrid and then be willing to spend an additional $10,000 to convert it to a plug-in has, to date, attracted a relatively small group of consumers. Plug-in conversion companies aren’t making an economic argument; over the lifetime of the vehicle, you are not going to make up the conversion costs through reduced expenditures at the pump. Instead, the targeted consumers are those who are willing to pay $10,000 for the satisfaction of knowing they are reducing their carbon footprint and their oil consumption.

Where conversions, both conventional to hybrid and hybrid to plug-in hybrid, may end up having a greater environmental impact is with vehicle fleets. Companies such a Google and PG&E, and local governments in California, are paying to convert their fleet hybrids into plug-in hybrids. Since companies and governments typically hold on to their vehicles for longer than individuals, and since their employees put a considerable amount of miles on them, the reduction in global warming emissions and oil consumption is even greater. Also, fleet vehicles can be converted en masse, which helps to lower the cost per unit. There’s a start-up company in Somerville, MA that charges just under $10,000 to convert conventional vehicles into hybrids, with a focus on delivery trucks and shuttle vans. Again, a significant number of miles are put on these types of vehicles, further reducing emissions and oil consumption.

You may have some lingering questions about hybrid conversions. If so, I recommend checking out the company web sites above. Most of them have an FAQ page that provides even more information. We’ll keep an eye on them as well, and revisit this subject to see how the market, and the technology, is developing.

* The purpose of this article is to provide information on companies who offer hybrid conversions. The Union of Concerned Scientists does not endorse any of the companies or conversions mentioned in this article.

"Who's Got Hybrids" Now?

We are still showcasing new hybrids added to our “Who’s Got Hybrid’s” community brought in by the Green Travel Challenge. Even with all of these new submissions, we’re always on the lookout for more testimonials. Please help us to expand this community even more by sending in a photo and telling your hybrid story. And please ask your hybrid-owning friends to join us.

Michael Krumper of North Bend, OR speaks highly of his Gen. 2 Honda Insight, exclaiming: it’s a GREAT car! He loves that it has room for four, cargo space, GPS, bluetooth, AC, and power windows. He’s averaged 50 mpg over the course of the 11 months he’s owned it!

Ellen Morrison of San Carlos, CA loves her Prius! She was bawling when she drove her convertible to the dealer to trade it in, but she has come to appreciate her decision to save the air instead of feeling it blow through her hair as she drives.

Irene Pruzek of Chippewa Falls, WI has a funny story about her Gen. 2 Prius. In their haste to board an E-Z Park Bus to get to the airport, she and her husband neglected to turn off their 2007 Prius. Luckily, they had just filled it up. When they returned, six and a half days later, their Prius welcomed them with snowless windows and a warm interior, while every other car was covered with at least 6 inches of snow and undoubtedly frosty interiors. They made it to the nearest gas station where it thirstily took 10 gallons of gas. She has since learned that her Prius was the talk of the parking lot, with bets wagered as to when it would quit. No one won! Go Prius! 

I'll let you know if we can break 50mpg again on the trip north.  Have a great August!