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Battle of the Hybrids Begins

honda-insight1We suspected it would happen, and it has: Toyota dropped its price on the 2010 Prius for the Japanese market after Honda’s Insight (left) became the country’s best-selling car. The Big H sold 10,481 of these 1.3-liter, CVT cars in April. Toyota claims 80,000 preorders for the Prius while marking it down $3,100 to bring it in line with the Honda. So it looks like we’ve got a price war brewing.

The Prius will go on sale in the U.S. in about two weeks at $21,750 MSRP, $1,000 cheaper than the 2009 model. Honda grabbed the edge in Japan because it basically copied the Prius, used a cheaper (some would say inferior) hybrid system, and jumped into a market hungry for cheap, fuel-efficient cars.

However, not everybody loves the Insight. Jeremy Clarkson crucified it, calling the car

terrible. Biblically terrible. Possibly the worst new car money can buy. It’s the first car I’ve ever considered crashing into a tree, on purpose, so I didn’t have to drive it any more.

The biggest problem, and it’s taken me a while to work this out, because all the other problems are so vast and so cancerous, is the gearbox. For reasons known only to itself, Honda has fitted the Insight with something called constantly variable transmission (CVT).

It doesn’t work. Put your foot down in a normal car and the revs climb in tandem with the speed. In a CVT car, the revs spool up quickly and then the speed rises to match them. It feels like the clutch is slipping. It feels horrid. And the sound is worse.

He goes on: That sound is like sitting “a dog on a ham slicer.” The car feels like it’s been “made from steel so thin, you could read through it.” And so on. The rant continues, with Jeremy properly questioning, I think, the whole hybrid mentality. In the quest for every last mile per gallon, have we overlooked the considerable costs of production? The battery problems? The fact that we can get comparable mileage from a Golf diesel that’s built better and performs better should give the tree-huggers pause.

And look at this dippy commercial from Toyota:

Sure, there are trade-offs in all this controversy, and some of this hybrid pie in the sky is being baked by the government. Ford today announced a partnership with Xcel Energy to bring 66 electrics and hybrids to the Twin Cities. The project would require federal stimulus money to set up charging stations.

Similarly, hybrid sales are being fueled by government incentives in Germany, France, China, and Japan—some in the form of clunker trade-in bonuses, which have happened in the U.K. and maybe will here. So some of this interest is coming from artificial demand and industry supports.

A buoyant view of our green, plug-in future was also part of Fritz Henderson’s pitch in his last press conference. “I promise you,” he said, “that we have new vehicles that will blow you away,” and he mentioned some. Well and good. Let’s hope GM doesn’t get blown away before they can produce them.

Would you consider buying a new Prius or Insight? Are you hot on the hybrid concept, or do you share some of our skepticism?

—jgoods



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Geneva Auto Show: Expect new models even as sales plunge

Fiat 500 Cabrio

Fiat 500 Cabrio

With the latest news about the continuing free-fall of auto sales, the Geneva Auto Show is happening at a time of definitive change in the worldwide auto industry.

Still, expect to see around 30 exciting world debuts, including the long-awaited Mercedes-Benz E-class coupe, Fiat’s 500 Cabriolet, Audi’s TT RS (with a stunning 2.5-liter, 300-hp turbocharged engine) and the BMW 5-series GT.
 
Porsche will show their new 911 GT3 and Cayenne diesel SUV.

ford-ranger-geneva

Ford Ranger diesel

We’ll finally get a good look at the intriguing Aston Martin V12 Vantage, while Ford plans on showing their new European Ranger; which will offer fuel-efficient 2.5- and 3.0-liter turbo diesel engines.

Perhaps my early favorite is Maserati’s new GranTurismo S, which is equipped with a 4.7-liter V8 engine with a six-speed automatic transmission. iPod interface included.

If that’s not enough extravagance or luxury for you, keep an eye on the 2010 Bentley Continental Supersports, the 2.5-ton beast that’ll run to 60 in 3.6 seconds.

Yeah, the auto market stinks. But seeing new models and feeling the excitement that goes with them provides a glimmer of hope that things will turn out OK.

Are there any debuts at this year’s Geneva Auto Show that excite you?

-tgriffith



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The re-branding of the Toyota Prius is a great offer that might be too ...

About a week ago, General Motors denied that it will be licensing the Synergy Drive hybrid system of Toyota. Over the weekend, there are rumors that Toyota might be pushing the Prius over to the GM camp and be re-branded wearing a GM badge.

The picture is not that clear especially when one considers the effort of GM in developing the Volt and the Buick crossover. But with the announcement of General Motors that it will be withdrawing from its partnership with Toyota at the NUMMI or New United Motor Manufacturing Incorporated, the move of re-branding the Prius may be a logical move.

The withdrawal was made after a final agreement as to which future product line up should be developed cannot be made between the two parties.

A spokesperson from GM North America informed the press that the joint venture between Toyota and their company has no future units planned for production.

The Prius though is already set for production at the California NUMMI plant since the plans of doing it at Mississippi did not materialize. The production at the NUMMI factory will also allow Prius to meet the increasing demand for hybrid vehicles.

The re-branding of the Toyota Prius is a great offer that might be too good to decline. Some worry though that with all the paper works, approval, and production, the re-branding of the Prius as a GM product may intersect with the timeline of the Volt which is due for release by late 2010. Toyota on the other hand is sure to be very happy with this development… ;-)



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Hydrogen, natural gas and ethanol (in its many forms) are top contenders ...

 

Grow corn for food or fuel?

Grow corn for food or fuel?

Oil prices are in a free fall right now.

While it’s a refreshing change at the fuel pump, it’s not a free pass to forget about alternate fuel sources. Hydrogen, natural gas and ethanol (in its many forms) are top contenders right now.

We’ve all heard about the much hyped Honda GX and FCX Clarity, the company’s dip into natural gas and hydrogen-powered vehicles. What’s a little less known is their work on ethanol-powered vehicles.

In 2006, Honda announced that they’d be releasing vehicles in Brazil able to run on either gasoline or a 100% bioethanol, derived from sugar cane.

Ethanol as a fuel source is nothing new. For a number of years now, Ford has offered vehicles with a cute little leaf icon on the front fender, symbolizing that the vehicle can run on E85, a corn-based ethanol fuel. There’s been a pretty heavy PR push behind that leaf, but it seems a pitiful attempt at claiming to be at the forefront of the alternative fuel race.

The controversy with E85 is that it means growing corn for fuel rather than food, resulting in soaring prices. Plus, E85 delivers fuel economy that’s about 30% less than gasoline. (Honda’s ethanol vehicles deliver equal MPG to gas.)

Compare with Honda, who has stepped up and brought hydrogen, natural gas, hybrid and bioethanol to the table. The U.S. automakers have given us: corn.

It’s tragic, really. I’d like to see ethanol as a fuel source abandoned, and focus our collective resources on more promising long term solutions, such as hydrogen and electricity.

Have you driven an E85 vehicle? What do you think?

-tgriffith



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