After the apocalyptic warning from the industry about a proposed 56.2 MPG 2025 CAFE standard, the auto industry seems to be backing the White House’s latest proposal, which reduces the 2025 target to 54.5 MPG, slows the rate of efficiency improvement for trucks and increases advanced technology credit loopholes. Another key consideration: the White House agreed to a mid-term review of the 2025 standards to ensure they reflect the market. Plus, the DetN points to a previously unheard-of compromise to keep big trucks cheap:

The plan is also carving out special rules for “work trucks” — heavier light duty vehicles used for construction.

As a result of these compromises, the WSJ [sub] reports:

As of Wednesday, Toyota Motor Corp., General Motors Co., Ford Motor Co., Chrysler Group LLC, Honda Motor Co., Hyundai Motor Co., Nissan Motor Co., BMW AG and Volvo had told the administration they would support the plan

With the industry now largely on board, the Obama Administration has a green light to announce its new standard at a ceremony planned for tomorrow. But not everyone is happy with the new proposal…

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Platform shared with the Evo + three rows of seating = the ideal vehicle for an enthusiast with kids? This formula encapsulates the promise of the second-generation Mitsubishi Outlander. But back when it was introduced, for the 2007 model year, the reality fell short, with too many rough edges in both the chassis and the interior. Last year the Outlander was freshened with a more Evo-like nose, an upgraded interior, and a new GT trim that added an active front differential. More than ever Mitsubishi was pitching the Outlander as the family hauler for enthusiasts. But do the tweaks go deep enough?

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After a lot of prototypes presented at Chinese car shows with hoods closed and long cables going to mock charging stations, EV development appears to get serious in China. Yesterday, Nissan announced that it is developing an EV for the Chinese market that will be sold under the Venucia brand by 2015. Daimler of all people could be further ahead. Read More >

Between Nissan’s Leaf racer and a new EV-only racing cup, electric auto racing has been coming along in recent months, although significant challenges remain. For one thing, batteries are still extremely heavy, and for another, they take a long time to recharge. Finally, thermal management issues conspire with both of these battery challenges to force EV races to be quite short. And in search of a solution, one team that’s entered into the EV Cup is looking to the original EV racers for inspiration: slot cars. Rather than getting hot and heavy with big batteries, figures Drayson Racing Technologies, why not charge the car as it’s racing at speeds upwards of 200 MPH? Luckily HaloIPT has come aboard the project, bringing its eponymous wireless Inductive Power Transfer technology to bear in order to create life-sized, wireless, slot-free slot cars.
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Research into environmentally sensitive ways of running a car, AKA “green patents” have been in the news lately and it’s been good news for GM’s image. The Detroit automakers in general are not seen as technology leaders, particularly in terms of alternative energy. Bob Lutz saw the Chevy Volt as a way of changing that perception, taking away some green luster from Toyota. Since there is usually considerable time between a patent’s filing and its granting, patents granted in the last 2 or 3 years are a good reflection of what a company has been doing for the past 4 or 5 years, and there’s evidence that Lutz’s strategy was not just a PR job but also a reflection of a very large amount of research and development at the automaker. Cleantech Group, of the Heslin Rothenberg Farley & Mesiti intellectual property law firm, publishes the Clean Energy Patent Growth Index. The CEPGI tracks the granting of U.S. patents for solar, wind, hybrid/electric vehicles, fuel cells, hydroelectric, tidal/wave, geothermal, biomass/biofuels and other clean renewable energy. The law firm publishes the CEPGI quarterly and then tabulates the annual results.

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The last time we looked at the Nissan Versa, in October of 2010, it was the cheapest car in America at under 10 grand. Unfortunately, the price for such a low sticker was dearer than its four-digit sticker. The lack of modern essentials like air conditioning, anti-lock brakes and automatic transmission were more than just a bummer, as adding them to the Versa made the car less than cheap. For the first redesign of Nissan’s smallest family hauler, the boffins in Japan decided to attack the sedan first for an update, an interesting decision as the sedan only accounts for a supposed 30-35% of all Versa sales on our shores. Surprised? I was, especially since hatchback sales in the US are finally on fire. Nissan graciously invited us to Seattle so we could get down and dirty with the Versa before it arrives on showroom floors in August.

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In fulfillment of my paparazzo duties, I stalked Nissan’s and Renault’s CEO all the way to China today. Easy for me to do: I could walk from where I live in Beijing. The walk was worth it. In the Grand Ballroom of the China World Tower 3, Ghosn and his Chinese joint venture partners announced an aggressive five year plan. Nissan and Dongfeng want to nearly double Nissan sales in China from 1.3 million in 2010 to 2.3 million in 2015. Read More >

At a press conference in Beijing’s tallest building, Nissan’s CEO Carlos Ghosn announced today that the Nissan-Dongfeng joint venture will build an EV in China, and that it will be ready by 2015. No, it will not be the Nissan Leaf. It will be a plug-in that will sail under Nissan-Dongfeng’s “Chinese” brand, Venucia. Said Ghosn: Read More >

Today is the day when the Japanese majors announce domestic and global data for June and the half year. A little more than three months ago, a massive earthquake, followed by a devastating tsunami, paralyzed much of Japan’s infrastructure. It could not have come at a more inopportune time. The Japanese auto industry was already suffering from weak markets at home and abroad, paired with a rising yen that destroyed profits from exports.  Three months later, how big was the hit? Read More >

After Saudi Arabia and Afghanistan over the last couple of weeks, by solidarity today we are visiting Norway and I will give you a short but rich overview of what cars Norwegians are most fond of.

Now if you are already Norway’ed out with all the tragic news coming from there right now, that’s ok I understand, and there are 154 more countries to explore in my blog, so I’m sure you’ll find what you’re looking for there!

Norwegians are exposed to extreme (cold) temperatures pretty much every day of the year (OK not quite true but I was there in the middle of summer years ago and it was freezing!) and also to near-constant darkness about 6 months a year.

So their cars need to do one thing: work. Start in the morning by -30 degrees and not fail in the middle of a lonely snow-covered road in some remote part of the country… And that, Volkswagens and Toyotas can do…

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California has backed up its strict emissions standards for years now with a $5,000 tax credit for electric, hybrid and fuel cell vehicles, which when combined with a $7,000 federal tax credit can often make those vehicles nearly as affordable as “regular” cars. But, reports Automotive News [sub], that state credit has fallen victim to California’s budget woes and oversubscription, and has been cut in half from $5,000 to $2,500. According to the report:

high demand exhausted the program’s funding last month. The Los Angeles Times reported Thursday that about 500 consumers who bought electric cars such as the Nissan Leaf or Tesla Roadster are on a waiting list and will collect the $2,500 rebate.

To deal with growing demand, the pool of money to fund the rebates was increased to between $15 million and $21 million for CARB’s current fiscal year ending June 30, 2012, according to CARB’s announcement. A total of $11.1 million was allocated in the program’s first two years, according to CARB spokeswoman Mary Fricke.

The increased cash pool and lowered rebate amount are aimed at making the incentive available to more consumers, according to CARB’s Web site. The changes are projected to fund about 6,000 rebates for consumers who apply for the program on a first-come basis, Fricke said.

Now California “green car” intenders not only get a reduced tax credit, but they also don’t get free access to the HOV lane anymore. It’s almost as if California wants “green” vehicles to succeed or fail on their own terms…

The Michigan Congressional delegation’s letter, stating that the Detroit-based automakers are not technologically capable of serving the market while complying with a proposed 2025 CAFE standard seemed strange to me in light of the recent progress made by Ford and GM on fuel economy. Why, I wondered, would these firms boast of their fuel econmy efforts on the one hand while allowing their congressional representatives to portray them as unable to build a CAFE-compliant fleet on the other. Why, I wondered, don’t Ford and GM come out and angrily insist that they can build the most fuel efficient cars in the world? My guess: because they know that they can probably wheedle a loophole out of the feds if they keep pleading inability. Yes, everyone knows they can comply with CAFE… but even the UAW knows that when the government asks you to do something, you ask for something back. Which in turn made me wonder: what might the OEMs want? And, turning to the 2012-2016 CAFE Final Rule [go on, give it a read in PDF format here], I found a glaring loophole that all the manufacturers seemed to want, but which the feds turned down. I have no evidence that this is back on the table for 2017-2025, but I thought I’d put it out there to give a sense of what the OEMs may be pushing for by  pleading inability to comply with the proposed 2025 standard.

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When I was a very young and very green copywriter, Dr. Carl Hahn, at the time CEO of Continental Tires and later CEO of Volkswagen, said in an agency brief: “We lose 10 Deutschmarks on every tire we sell.”

“Then we better stop advertising them,” said I.

Hahn gave me a pained look. The look was followed by real and massive pain in my left foot, because my Creative Director had kicked me viciously.

“Ouch!” I said.

“You’ve got that right,” said Hahn.

That little story crossed my mind when I read in The Nikkei [sub] that “Mitsubishi Motors Corp.’s electric vehicles and other eco-friendly offerings are expected to begin contributing to the firm’s bottom line in two years.” Read More >

When we last saw the 1965 Impala Hell Project, it was the fall of 1990 and I was installing headers, dual exhaust, and a TH350 transmission in place of the original Powerglide. The car drove pretty well with those upgrades, but the fact that the entire instrument panel (except for the oil pressure idiot light) was kaput became quite an annoyance. Was the engine running hot? Was I going 80 in a 45 zone? How much gas do I have? Those questions remained mysteries, and finding functioning replacement parts for a then-26-year-old car in the junkyard would be tough. I had a solution, however; scavenging Pick-Your-Part for instrument-panel components on Half Price Day weekends and building my own instrument panel from scratch. Read More >

Why was Honda as much hit as Toyota by the March11 earthquake and tsunami? Doesn’t Honda have the bulk of its production outside of Japan? How could Nissan avoid most of the damage, even with an engine factory close to Fukushima?

It was a bit like a roulette game, and it involved a lot of chips.  According to industry talk in Japan, Nissan had taken a large supply of ECU chips before the quake. Honda and Toyota were waiting for their just-in-time delivery.  Honda and Toyota received most of their engine controller chips from one chipmaker, Renesas. Two weeks after the catastrophe, we had pointed out that Renesas and its damaged fab near the epicenter would turn into a major bottleneck. What’s more, Honda had no idea. Read More >