The problem we have is, Congress wants to pass a very robust transportation bill in the neighborhood of $400 billion or $500 billion, and we know the highway trust fund is just deficient in its ability to fund those kinds of projects. The highway trust fund was substantial at one time but now with people driving less, and driving more fuel-efficient cars, it has become deficient. To index the federal fuel tax, that’s something Congress is going to have to decide. As we get into the reauthorization bill, the debate will be how we fund all the things we want to do. You can raise a lot of money with tolling. Another means of funding can be the infrastructural bank. You can sell bonds and set aside money for big projects, multibillion-dollar projects. Another way is (charging a fee to motorists for) vehicle miles traveled. The idea of indexing the taxes that are collected at the gas pump is something I believe Congress will debate. When the gas tax was raised in 1992 or 1993, in the Clinton administration, there was a big debate whether it should be indexed. At that time, they thought there’d be a sufficient amount of money collected. Now we know that isn’t the case. That is one way to keep up with the decline in driving, and more fuel-efficient cars.
We’ve looked back at a boxy old International, so how about we gaze into the future? Aerodynamics is overarching key to improved transport fuel efficiency, since hybrid and other advance propulsion technologies have limited impact on long-haul trucks. This proposal by European truck maker MAN slips though the air with a 0.29 Cd (coefficient of drag), instead of the more typical 0.57 Cd. That represents a dramatic potential improvement in economy, but at the expense of an irregular-shaped cargo trailer. That’s going to be a big impediment to the trailer and cargo-handling standardization predominant in the industry. But it shows the potential available. More details on this and some early efforts at truck streamlining after the jump: Read More >
Today, on the last day of media access to the LA Auto show, the mystic powers that be continued VAGs green run by selecting the Audi A3 TDi as the 2010 Green Car of the Year (The Jetta TDi won last year). In the running this year were the Audi A3 TDI, Honda Insight, Mercury Milan Hybrid, Toyota Prius and Volkswagen Golf TDI. According to the LA Auto Show,
The Green Car of the Year® award is a program that honors environmental leadership in the automobile field and recognizes vehicles that are readily available to consumers during the award year. Green Car Journal/ editors perform an exhaustive review of vehicle models to identify the five finalists. The winner is ultimately decided by jurors such as Jay Leno, Jean-Michel Cousteau, Carroll Shelby, Matt Petersen of Global Green USA and the Sierra Club’s Carl Pope, along with Green Car Journal editors.
Interesting then that this same bunch of car czars chose the Chevy Tahoe two years ago for getting 1 MPG better than the gasoline version. Anyone feeling some Volt love in 2011?
In another example of Hyundai’s ability to meet goals it sets for itself, one year after announcing its intention to become the most fuel efficient manufacturer in the land, it has done so. The EPA has released its latest U.S. Environmental Protection Agency fuel economy report, and Hyundai passed all major manufacturers in Corporate Average Fuel Economy (CAFE) including traditional leaders like Honda and Toyota. And that’s for Model Year 2009, without the aid of new and expensive technology like hybrids and direct injection. A chart of of all the leading manufacturers’ CAFE numbers follows: Read More >
Former Tesla PR honcho Daryl Siry lays into the Department of Energy’s Advanced Technology Vehicle Manufacturing Loan program (ATVML) at Wired’s Autopia blog, taking the $25b program to task for “stifling innovation.” At its core, his argument is a simple one:
Startup companies that enjoy DOE support, most notably Tesla Motors and Fisker Automotive, have an extraordinary advantage over potential competitors since they have secured access to capital on very cheap terms. The magnitude of this advantage puts the DOE in the role of kingmaker with the power to vault a small startup with no product on the market -– as is the case with Fisker — into a potential global player on the back of government financial support.
As a result, the vibrant and competitive market for ideas chasing venture capital that has been the engine of innovation for decades in the United States is being subordinated to the judgments and political inclinations of a government bureaucracy that has never before wielded such market power.
All of which sounds very TTAC… in fact, our lengthy Bailout Watch series began with a similar analysis of the ATVML program (albeit with a Detroit-focused twist). Unfortunately, Siry’s intentions in this case are questionable… as are his conclusions.
All the hot air about the MDI air car may experience a sudden cold downdraft. Not that cool breezes questioning its efficiency weren’t already wafting in the air. But now there’s a genuine academic study questioning the questionable. The NYTWheels has mined a study by the University of California at Berkeley titled “The Economic and Environmental Evaluation of Compressed-Air Cars,” which concludes that the air car “fared worse than the battery-electric vehicle in primary energy required, greenhouse gas emissions and life-cycle costs, even under very optimistic assumptions about performance. Compressed-air-energy storage is a relatively inefficient technology at the scale of individual cars and would add additional greenhouse gas emissions with the current electricity mix.” Read More >
Ever get the feeling that the car game is dealing with some malaise? Dieter Zetsche sure seems to. “The definition of luxury will be somewhat different,” Doctor Z tells the Wall Street Journal. “It will be fewer CO2 emissions and more modesty in appearance.” And this from the company that sells cars on the back of a brand dripping with immodesty and ostentation. But no matter, the decision has been made: Zetsche wants to chase what the WSJ terms “Americans’ growing interest in downsized models that offer upscale features and finishes.” Wait, growing interest? The MINI sells decently, but the A3 (fewer than 3k units sold year-to-date) and 1 Series (fewer than 10k units year-to-date) are hardly setting the luxury segment on fire. Damn the torpedoes, people want green modesty, and Zetsche’s going to give it to them with four compact models planned for the US sometime after 2011.
For sure, there will be another B-class, which will be pretty similar, address the same customer as the B-class today. The three other body styles clearly intend to target additional and different segments from the one that we can target today, including gender barriers.
Smaller, greener and more identity-politics-y. That sounds like just what the luxury market has been begging for! And we haven’t even started in on the cost-cutting yet.
There’s all kinds of controversy over what makes a car “green” and what doesn’t. Some point to size and efficiency, crucifying Hummers and full-size trucks as criminals against the planet. Others point to lifecycle greenhouse gas emissions, battery-component mining pollution and other less-obvious measures to excoriate hybrids. In any case, TTAC’s scientific department isn’t well-funded enough to issue a comprehensive report on the subject. Forbes may not have tested cars itself, or dug into true “dust-to-dust” footprints, but it’s gone ahead and published a list of “America’s Dirtiest Vehicles” anyway. Let’s take a look, shall we?
As we noted in our rundown of the New New Chrysler’s powertrain plans, the Pentastar’s ENVI electrification task force wasn’t mentioned once during seven hours of presentation. Well, by name anyway. Weirdly though, as the slide above shows, Fiat is making Chrysler the focal point for the alliance’s hybrid and electric technology development. Wouldn’t that make the bailout-baiting, vaporware-hawking ENVI crew the go-to guys for both Chrysler and Fiat’s long-term powertrain plans? Er, no.
Some politicians who supported the Cash for Clunkers program didn’t want to be seen promoting a billion dollar (or three) bailout for car dealers, what with car dealers rating just above sex offenders as “people who I’d like to support with my taxes.” So, not surprisingly, the C4C bill was wrapped in a mantle of green; structured to reward buyers who traded gas guzzlers for [marginally] more fuel efficient vehicles. In practice, the “program mostly involved swaps of old Ford or Chevrolet pickups for new ones that got only marginally better gas mileage, according to an analysis of new federal data by The Associated Press. The single most common swap — which occurred more than 8,200 times — involved Ford F150 pickup owners who took advantage of a government rebate to trade their old trucks for new Ford F150s. They were 17 times more likely to buy a new F150 than, say, a Toyota Prius. The fuel economy for the new trucks ranged from 15 mpg to 17 mpg based on engine size and other factors, an improvement of just 1 mpg to 3 mpg over the clunkers.” It gets worse . . .
Never underestimate the impact of your choice of car, especially if you’re Leonardo DiCaprio, who I’m sure doesn’t. The high-profile early Prius adopter can now take credit for inspiring the creation of Fisker Motors. That comes straight from Henrik Fisker’s mouth. The former designer of gas-guzzling Aston Martins and BMWs told the Reuters Auto Summit this past week that he’s ready to be a star in the green revolution, thanks to the star in the Prius. Read More >
From the just-released GAO report (PDF) on the auto bailout:
Chrysler’s shareholders, including Treasury, have agreed that Fiat’s equity stake in Chrysler will increase if Chrysler meets certain benchmarks, such as producing a vehicle that achieves a fuel economy of 40 miles per gallon or producing a new engine in the United States. Treasury officials stated that they established such up-front conditions not solely to protect Treasury’s financial interests as a creditor and equity owner but also to reflect the Administration’s views on responsibly utilizing taxpayer resources for these companies. While Treasury has stated it does not plan to manage its stake in Chrysler or GM to achieve social policy goals, these requirements and covenants to which the companies are subject indicate the challenges Treasury has faced and likely will face in balancing its roles.
Pity Takanobu Ito. Like many (ok, some) of us, the CEO of Honda is torn between his love for speed and the desire to be perceived as environmentally responsible. On the one hand, he lambasted Toyota for building its $375k LF-A supercar, saying that to his mind the fuel-cell FCX clarity (once described by Jonny Lieberman as “exactly like a Honda Accord”) was his idea of a modern sports car. On the other, “I would like to make a sports car,” Ito tells Automotive News [sub]. “Once we have that technology and once we have cash on hand, I would like to see Honda have a sports car that symbolizes our technology.” Is he referring to the forthcoming CR-Z? Because, as cool as that car looks, it will hardly satisfy the LF-A jealousy we detect in Mr Ito’s voice. And you have to imagine that the creator of the NSX is as qualified as anyone else to design and develop the first 21st Century green sportscar. But what would that look like? Assume any price point up to the LF-A’s insane $375k sticker, and give us some specs. And remember, at this point, green is relative… and quantifiable only in terms of marketing.
Actually, that’s not the equivocal message we might have expected from a University of Michigan study on electric vehicle (EV) viability [via Green Car Congress]. Instead, the money quote reads:
The data provide strong evidence that a combination of economic and social incentives may be most effective in successfully introducing these vehicles.
The study’s baseline shows that, given no increase in fuel costs, 42 percent of those surveyed would consider buying an EV. But with every doubling of a hypothetical price premium, the probability of purchase fell by about 16 percent. At a $10k premium, only 14 percent said they would consider purchasing an EV. Which is enough to conclude that the “social incentives” of EV ownership are enough to create a certain level of demand for even uncompetitively-priced vehicles. And that seems to indicate that breathless green marketing is here to stay. In fact, if the image after the jump is anything to go on, this eco-toehold in the minds of some consumers will likely be exploited with ever-more breathtaking shamelessness.
We’ve looked back at a boxy old International, so how about we gaze into the future? Aerodynamics is overarching key to improved transport fuel efficiency, since hybrid and other advance propulsion technologies have limited impact on long-haul trucks. This proposal by European truck maker MAN slips though the air with a 0.29 Cd (coefficient of drag), instead of the more typical 0.57 Cd. That represents a dramatic potential improvement in economy, but at the expense of an irregular-shaped cargo trailer. That’s going to be a big impediment to the trailer and cargo-handling standardization predominant in the industry. But it shows the potential available. More details on this and some early efforts at truck streamlining after the jump: 
Recent Comments