Mahindra’s abortive plans to bring its rugged diesel-powered pickups to the US began back in 2007, just as gas prices were starting to run out of control. Now, after years of delays, steadily-increasing prices and general neglect of the compact pickup market have served only to whet our appetite for efficient little developing world-style trucks. Throughout the the last several years, Mahindra has battled with its US distributor, pulled out of other US efforts and generally failed to deliver… all while dangling the dream of a 30 MPG diesel pickup at hopeful enthusiasts. But, as it turns out, Mahindra’s problems don’t end with distribution: though its diesel engine was approved by the EPA, we hadn’t seen EPA confirmation for the long-held 30 MPG goal. Well, the EPA just released the window sticker for the Mahindra TR40 [via MahindraPlanet], a 4X4 four-door version of its 2.2 liter diesel pickup… and it gets nowhere close to 30 MPG.

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Mike Jackson, CEO of AutoNation, one of the biggest auto retail chains in the country, argues [via Bloomberg] that lower inventories and more-efficient offerings have prepared the US auto industry for higher gas prices. As a result

Consumers are signaling it will take higher gasoline prices than the worst of 2008 to curb new- vehicle sales… The “freak-out number” at the gas pump is likely about $4.50 a gallon for unleaded regular

“A dramatic spike is not good for economy and not good for our industry, but we’re better prepared for it than we were in summer 2008,” said Jackson, 61. “Even though we’ve moved 40 to 60 cents higher at the pump in the past three months, we haven’t seen any change in consumer behavior.”

Interesting theory… but does it hold up for you? What are your “freak-out numbers,” and what will you do when gas prices hit them?

Hydrogen Fuel Cell vehicles (FCVs) are enjoying something of a comeback lately, as everyone from Hyundai and Honda to GM and Daimler are talking about forthcoming production versions of test-fleet FCVs. And with EVs poised to both dominate the short-term green-car game and inevitably disappoint consumers, it’s no surprise that the perennial “fuel of the future” is enjoying a fresh look from automakers. But if high cost and range anxiety are the flies in the EV ointment, the FCV-boosters are finding their hydrogen cars tend to suffer from the same problems. Daimler says

By 2015, we think a fuel cell car will not cost more than a four-cylinder diesel hybrid that meets the Euro 6 emissions standard.

but that by no means guarantees its Mercedes FCV will be truly “affordable” by any reasonable standard, as diesel-electrics are considered one of the most expensive applications of internal combustion power. And then there’s the whole range issue. Yes, FCVs refuel faster than EVs, but even the most ambitious of Hydrogen-boosters, Daimler, are only pushing vehicles with a 250-mile range. Which is why we puzzled a bit over The Globe And Mail‘s assesment that

Three Mercedes-Benz B-Class F-CELL models will make [a 125-day] global trek, which will seek to highlight the real-world benefits of fuel cells versus EVs – mainly their much further range

Flipping over to AutoMotorundSport, we find that the irony which completely escaped the G&M is threatening to overwhelm Daimler’s entire demonstration. And, as is only natural when things like this occur, there’s a bizarre TTAC connection…

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Hyundai’s sales were up 22 percent last month, driven by huge growth for Sonata (13,261 units) and Elantra (9,659 units). But, rather than spend the whole press release [PDF here] trumpeting sales data alone, Hyundai upped the transparency bar on its competitors by announcing it would

begin reporting monthly sales-weighted Corporate Average Fuel Economy (CAFE) results to provide journalists, policy-makers and consumers with additional data to promote more meaningful dialogue on the feasibility of future fuel efficiency targets for the industry…

For January 2011, Hyundai’s sales-weighted CAFE level was 34.7 miles per gallon, with a model year mix for the month of 86 percent 2011 and 14 percent 2010 model year vehicles. This is a significant increase from Hyundai’s most recent official CAFE level for the 2009 model year of 31.7 mpg.

By publishing both its fleet mix (12%) and CAFE average, Hyundai is proving that marketing is a million times easier when the facts fit the message. At 34.7 CAFE, Hyundai is a single MPG away from complying with the 35.5 MPG 2016 proposed CAFE standard, and just a whisker away from meeting its corporate commitment to meet 35 MPG fleet by 2015. Which is all fine and dandy, but as a blog that’s forever digging for obscure information about the car industry, we’re even more excited about Hyundai’s decision to take the lead on transparency. TTAC encourages all automakers to release both sales-weighted CAFE numbers and full fleet-mix numbers (and any other relevant data) with their monthly sales reports. The truth, as we say around here, must out! [Hyundai and Kia sales breakouts after the jump]

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During the government’s bailout of General Motors, the UAW agreed to a number of concessions, including management’s ability to use “Innovative Labor Practices” in order to build a fuel-efficient subcompact car in the US. As a result, the 1,600 workers at the firm’s Lake Orion plant had a choice: the 800 most senior workers would return at the $28 “tier one” wage, while another 500 workers would be able to return only if they accepted a 50% pay cut, pushing them into the union’s “second tier” of wages. Workers forced into the tier two, which typically applies only to new hires, were not allowed to transfer to other Michigan plants, and could neither vote on the agreement, nor strike because of it. After all, the bailout’s green-tinged sales pitch meant that building a subcompact in the US was a politically necessary move, even if it went against every UAW principle… which is why it’s awfully ironic that the safety valve for this deteriorating situation is a factory building trucks.
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The Fiat 500 faces an interesting challenge in the US Market. Yes, it offers the fashion-nugget flair of a MINI Cooper at a lower price… but it’s also smaller, less powerful and not all that much more efficient. Automotive News [sub] reports that the new 500, which offers 101 HP from its 1.4 MultiAir engine, will be rated at 38 MPG Highway/30 MPG City with a manual transmission, and 34 MPG Highway/27 MPG City with an automatic. Compared to a 120 HP MINI Cooper, the manual 500 enjoys a 1 MPG advantage on both city and highway ratings, but with the popular automatic transmission, it actually gets worse mileage than the 36/28 MPG slushbox Cooper. Why the big discrepancy in the 500’s manual-versus-autobox efficiency? Probably because the European-spec 500 doesn’t offer an automatic, which was added to the vehicle (along with retuned suspension and more sound deadening material) just for the US market.

So, while the 500 starts some $5k lower than the MINI, and it’s not all that much smaller on the inside (front legroom is down about an inch compared to the MINI, while rear headroom is short by some 2.5 inches… but the 500 wins on other measures), the efficiency with an autobox leaves quite a bit to be desired… especially for a 100 HP, 98 lb-ft car.  And with the Fiesta offering a less flashy but larger 40 MPG option (with a self-swapping gearbox) at a similar price point, the 500 has some serious charming to do.

With California’s Air Resource Board and the EPA set to unleash new 2016-2025 CAFE standards, the Alliance of Automotive Manuacturers, which represents foreign and domestic automakers, is lashing out, telling Automotive News [sub]

We all want to put the most fuel-efficient vehicles as possible on the road, but for the 2017 rulemaking, policymakers still need to gather and analyze much data to determine the maximum feasible fuel economy standards that avoid negative impacts on affordability, safety, jobs and vehicle choice. No one knows what the 2025 target should be yet, and the data needs to drive the rulemaking.

But not everyone in the industry is on board with the AAM’s CAFE-skepticism. Already, Hyundai Motors USA CEO John Krafcik tells TTAC his firm plans to “Overcomply” with the coming CAFE standards, and now Toyota is joining Hyundai in breaking ranks, with Jim Colon, VP for Product Communications saying

The administration is engaged. That’s the direction Toyota is already going. Whatever goal they establish, Toyota will be prepared to meet. If it’s 62 miles a gallon, we’ll be able to achieve that.

Volkswagen’s 2002 “One Liter Car” was a classic project of the firm’s legendary chairman Ferdinand Piech. The grandson of Ferdinand Porsche was taken to setting staggering tasks for his engineers, who dutifully turned out such mechanical wonders as the world’s fastest car (Bugatti Veyron), the first car to achieve 1 liter per 100km fuel economy (the so-called “One Liter Car”), and the world’s most unnecessarily expensive Volkswagen (the Phaeton). Though it was never introduced for production, the One Liter Car convinced VW that diesels could be as efficient as any hybrid, and became a point of great pride for the company. A few years ago, there was even a rumor that a limited number would be made for sale to the public, but only an updated concept and vague talk of 2013 production ever materialized. And now, VW has introduced a new One Liter Car, called the XL1, in Qatar of all oil-rich places.

This time, the XL1 seats two side-by-side and has a plug-in hybrid drivetrain featuring a two-cylinder diesel making 47 HP and a 26 HP electric motor hooked to a Li-ion pack with up to 22 miles of EV range. The concept can reportedly hit 62 MPH in 11.6 seconds and has a top speed of 99 MPH. A 2.6 gallon tank gives the XL1 a 341 mile range, thanks in part to the low overall weight of 1,753 lbs. And with its larger, more conventional layout, VW isn’t being shy about the fact that this One Liter car represents a step closer to production.

Hard on the heels of yesterday’s story on Hyundai’s preparation for CAFE standard ramp-ups comes this counterpoint, courtesy of the Detroit Free Press. Walter McManus, director of automotive analysis at the University of Michigan’s Transportation Research Institute, did his own study on a possible 43 MPG 2020 standard and his findings, as presented at a Citi Investment Research conference call, seem quite positive for American-based automakers. McManus’s research took several  basic assumptions for granted in order to reach his conclusions, namely that

• Gas prices will average $4 a gallon between now and 2020.

• Industry sales will be 16.3 million vehicles in 2020.

• Every manufacturer complies with 2016 CAFÉ standard.

• Plug-in hybrids and electric vehicles will be less profitable than gas-engine vehicles.

Now, right off the bat it’s possible to take exception to some of those assumptions. If gas doesn’t crack four dollars per gallon before 2020, for example, this blogger will be one confused student of history. Also, predicting over 16m units of new car sales is by no means a sure thing. Though a comfortable industry assumption based on the “old normal,” there aren’t many indications that 16m+ annual new car sales was a sustainable level for the US economy. Still, Mr McManus has been doing this for a while, so we’ll give him the benefit of the doubt. So, given his assumptions, what does he foresee for Detroit as it moves to meet a 43 MPG standard by 2020? In two words: great success.

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Remember how the government bailout team forgot to make sure its “Irrevocable Ecological Commitment” from Fiat was measured in “adjusted” Miles Per Gallon, using the EPA test cycle that provides your window sticker number? Well, the same “unadjusted” MPG number Sergio Marchionne used to his advantage is used to calculate the CAFE ratings that have the industry in such an tizzy. Well, the official lobbying parts of the industry, anyway [see also, here]. Hyundai has been saying for some time that it is targeting a 50 MPG fleet average by 2025, although CEO John Krafcik said as recently as August that he didn’t know how the automaker would reach that goal.  Now, however, it looks like he’s found a way to bring 50 MPG within reach: use CAFE’s “unadjusted” standard. Just like Sergio. Follow along as Hyundai shows that 50 MPG isn’t as far off as many seem to believe.

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California, the perennial thorn in the side of the EPA’s emissions-regulation scheme, has bowed to federal pressure and will wait until September of this year to release its 2017-2025 Model Year emissions standard proposal, by which time the EPA will be ready to announce its own national scheme. Prior to today’s announcement, California’s Air Resources Board (CARB) had “announced its intention” to release its proposal in March, a move which had automakers scrambling to complain to congress of the apparent lack of unity on emissions standards. GM and Chrysler even endured a (somewhat predictable) Naderite drubbing in the WaPo in order to to join the howls against the emerging “patchwork of state and national standards!”

Luckily for the automakers, CARB was willing to play ball. Per the WSJ:

Stanley Young, a spokesman for the California Air Resources Board, said the state agreed to the White House’s timetable after being assured the new fuel-economy targets would be based on studies currently being done on the feasibility of the proposed 62-mpg [by 2025] standard.

The studies are examining the technological and financial ramifications of the proposed standard, he said.

“We’re looking forward to seeing the results of the final data from the engineering studies,” Mr. Young said. He added that the board has always cooperated with the EPA and DOT and plans to continue to do so.

Then why stir up the pot by telling the world that you’ll create a de facto standard while the EPA is still looking at the engineering studies? If CARB was looking for ways to add to its resume of ill-advised overreaches, it succeeded admirably. If, on the other hand, it wanted to be seen as the lead partner in a national standard, it would have agreed to a joint announcement in the first place. Regardless of where the standards are set, surely even CARB understands that a truly national standard is the single most important achievement to be won in this process. Oh, and “making sure all the evidence was duly reviewed before ruling” should probably be the second most important.

If the British empire was built on cups of tea, the rise of the Korean automakers might just as well be chalked up to the restorative properties of spicy breakfast foods. There’s nothing like facing the day with sizzling tastebuds and clear sinuses to give a third-tier auto manufacturing nation the perspective needed to steal a march on its Japanese, European and American rivals. Possibly in deference to the healing powers of breakfast kimchi, Kia has named its newest city car the Morning for the Korean market and the Picanto everywhere else… and it’s sure to spice up Kia’s European sales, further extending Hyundai-Kia’s lead as the top Asian brand on the Old Continent.

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Though not technically a new debut at this year’s Detroit Auto Show, the “Prius C” concept was probably the most interesting vehicle Toyota showed at Cobo Hall this year. If nothing else, it certainly shows the promise of an expanded Prius brand far better than the “Prius V.” And if there’s a single market where this “baby Prius” can give Toyota’s eco-brand spin-off a boost it would be Europe, where small, efficient cars rule. But, it seems, this is not to be. Autocar reports

The strength of the Japanese yen seems almost certain to keep a production version of Toyota’s near-80mpg hybrid supermini based on the Prius C Concept hatch out of Europe. (Read More…)

When Chrysler let slip at the Detroit Auto Show that it would be offering a hybrid version of its 300 sedan by 2013, we automatically assumed that the Pentastar was going back to its Hemi-based Two-Mode V8 hybrid system, jointly developed by GM, Chrysler, BMW and Mercedes. Not so, it turns out. That billion-dollar drivetrain has been relegated to poor-selling hybrid SUVs, and it’s already being considered a dead-end by at least the German firms who helped develop it. Instead, it seems that Chrysler has gone to the government for a hybrid system, and will adapt a hydraulic hybrid system developed by the EPA.
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Porsche’s planned “Baby Boxster” has been a divisive issue for fans of the Zuffenhausen brand: on the one hand it holds the promise of a pure, low-cost entry to the Porsche driving experience; on the other, it’s a neo-914, a Volkswagen first. And with VW and Audi versions planned as well, what on earth would be the point of Porsche offering a third version of a mid-mounted, inline-four-powered roadster? Luckily that’s not a problem Porsche will have to worry about, as the firm’s R&D boss has confirmed to Autocar that

We have a four-cylinder boxer engine under development.

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