Honda’s Civic Hybrid has always been something of an afterthought in the marketplace, as Honda’s “mild” hybrid system consistently fell behind the Toyota Prius in terms of mileage, electric-only range and green street-cred. Then, late last year, Honda settled a class action lawsuit alleging that the Civic Hybrid couldn’t hit its EPA numbers. And though the weak-selling Insight has replaced the Civic Hybrid as Honda’s problem hybrid of the moment, the Civic Hybrid woes are still piling up. The latest bad news comes from the LA TImes, which reports that Civic Hybrid batteries have been dying before their time, and that Honda’s software “fix” for the problem reduces mileage from 45 MPG to 33 MPG. Since the standard Civic is rated at 30 MPG, a number of Civic Hybrid owners are wondering why they paid extra for what amounts to a 3 MPG improvement on the highway… and they’re accusing Honda of refusing to replace batteries under warranty. In other words, this looks to be one of the first major battery warranty-related fiascos of the hybrid era… and it’s shaping up to be a nasty one. Electric car makers, take notice.

It’s difficult to compete globally when governments try to pick the winning technologies and the direction changes from administration to administration… the U.S. government is going a bit too far in trying to dictate the powertrain technologies of the future.

BorgWarner CEO Tim Manganello tells Green Car Advisor what he really thinks of the billions of government dollars that have gone into the electric car industry of late. And though the supplier boss clearly has a personal interest in non-EV efficiency solutions (namely dual-clutch transmissions which require some kind of combustion engine), he’s also got a point. Why is the government lavishing unproven (luxury) startups like Tesla and Fisker with hundreds of millions in federal largess, while doing next to nothing to increase the market penetration of proven technologies like clean diesel or natural gas?

The Honda Civic Type R has become the latest casualty of the new Euro V emissions standard, reports Autocar, and it will be discontinued for the European market at the end of this year. Weirdly though, production of the British-built Civic Type R will continue, and the two-liter “touring car with number plates” will be exported to the South African and Australian markets. To which we say, the Type R is a low-volume model anyway… why not send a few to the US? Sure, if you directly convert the UK price to dollars, a top-spec Mugen Type R costs a whisker under $40k… and we’d guess more Americans would spring for a Volt at that price. And yes, it would certainly suck some enthusiasm out of the all-important CR-Z launch. Still, Honda needs to stop making sense and do something that proves it hasn’t forgotten its roots in the US market. Sending a few hundred Type Rs to the US is worth a thought… or is the whole idea as silly as testing a Type R against an Audi R8?

Earlier this week, Tesla reported a $38.5m Q2 net loss, up from its $29.5m in the first quarter of the year. The good news was that revenue rose by about $8m over Q1, to $28.45m, but development and selling/general expenses rose countering the higher receipts. Other good news came on the Model S front, as Tesla claims that body and powertrain development is complete for the forthcoming sedan. But with the company losing about $5 per share (currently valued at $19.70 each), there’s more bad news coming. In a piece at Wired Autopia, Tesla’s former PR boss Darryl Siry points out that a key revenue stream for Tesla is being closed.

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Prior to going on television on Monday, I spoke to a GM spokesman in hopes of better understanding the business case for the Volt. Perhaps the most interesting thing he told me was that a major impetus for developing the Volt as an Extended-Range Electric concept was GM’s failure to achieve success with three alt-energy concepts (EV-1, Hydrogen, and yes, E-85 ethanol) due to their need for fueling infrastructure. As we talked, it occurred to me that three other less-than-entirely-successful GM “green car” projects might have helped lead The General down the primrose path to the Volt: GM’s BAS “Mild Hybrid,” the Parallel Hybrid Truck system (PHT), and the V8-based “Two-Mode” hybrid drivetrains. He admitted (somewhat grudgingly) that GM’s hybrid sales had been “disappointing” and that the ambitious Volt project was to some extent motivated by this lack of market success. What he didn’t tell me: GM is bringing back the discontinued mild-hybrid BAS system for 2011.

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The idea behind the Automotive X-Prize was to prove that 100 MPGe (miles per gallon equivalent) is attainable in practical, daily-driver-type cars. And with competition moving into the final stage, 15 cars are still in the running. But how good are those cars actually? With only $10m in prize money, the X-Prize attracted few established OEMs to the competition, and as a result only a single car has made it through to the finals in the Mainstream class. This class was the main focus of the competition, as its requirement that each car “must seat at least four passengers, have four wheels, and have a minimum 200 mile range” meant Mainstream entries could be alternatives to “real cars.” Instead, the competition is being dominated by the “Alternative” class (two passengers, 100 miles range and any amount of wheels), which was included to open the competition smaller teams. And despite the fact that most of the entries had few restrictions on their designs, you might assume that they have performed impressively. The numbers, however, paint a very different picture.
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With Chevy’s Volt priced at an eye-popping $41k before tax breaks, those tax breaks are now more important than ever. The first 200k Volts will qualify for up to $7,500 in federal credits, but Chevrolet had to be hoping for state incentives on top of the federal credit, especially in the key launch state of California. For a number of reasons though, the Volt doesn’t meet California’s requirements for Advanced Technology-Partial Zero Emissions Vehicles, and will lose out on a $5,000 tax credit that’s available to its cheaper competitor, the Nissan Leaf. As a result, the Leaf will cost Californians who qualify for both full credits about $20k, while the Volt will cost about $33,500. Moreover, the Leaf will have full access to California’s High Occupancy Vehicle lanes while the Volt will not, unless a pending bill before California’s state Senate passes. Together, these developments represent a serious advantage for the Leaf over the Volt in what is almost certain to be the world’s largest market for electric cars in the short-to-medium term. So how did GM let this happen?
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The Chevrolet Volt began life as a marketing concept: “what if,” GM’s finest minds asked themselves, “we could sell a car that could go 40 miles without burning any gasoline?” That goal was achievable (although how easily and regularly remains to be seen), but it came at a cost: if you check out GM’s just-released standard equipment sheet (click on “standard equipment”), you’ll find that the Volt’s gasoline range extender requires premium fuel. What’s strange about this is that the Volt’s 1.4 liter range extender is hardly an overstressed buzz-bomb, making only 80 hp at the crank and 74 hp at the generator. Why then does it need premium? Considering that the Volt would have struggled to pay off its premium over the Toyota Prius anyway, the decision to require premium fuel makes no sense at all.

Last week, the big news coming out of Ford was that the new Lincoln MKZ would be available with a hybrid drivetrain as a no-cost option. With Mercury on its way out, and Lincoln struggling to carve out a niche in the luxury space, that move made a certain amount of sense at the time. What we didn’t know until today is that the “free” hybrid option on the MKZ was only Ford’s opening salvo on the status quo of automotive drivetrain option pricing. Today, with the 2011 Explorer dominating the news cycle, Ford has announced its latest head-scratcher: making the four-cylinder “Ecoboost” engine option more expensive than the more powerful standard V6. Yes, really.

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After the watching the OPOC engine run and shooting some exclusive video for TTAC, I was introduced to CEO Don Runkle.
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What’s that? We still haven’t plumbed the depths of our bag-o-automotive-sales-data thoroughly enough to have published annual sales for the Toyota Prius? Well, here it is, my truth-starved friends: ten years of Prius sales, culminating in two consecutive years of falling sales. And granted, most nameplates are down over the last two years because the market has been down for a solid two years now. Also, if you think the downturn is due to gas prices, you’ve got a surprise waiting for you after the jump. So has the Prius lost its luster? Could the most culturally significant passenger car of the last ten years be running out of steam (or whatever it runs on), or is this just a natural drop in demand in line with a weak market?

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If you didn’t know, you might think it’s a Cobalt or a Camry. I don’t think there’s a lot of cachet in having the first one. It’s meant to be a people mover, not a people impresser. It’s not like when you pull into Bob’s Big Boy parking lot with the Volt, you’re going to open the hood.

I caught some flack from TTAC’s Best and Brightest for suggesting that Jay Leno was less than entirely impressed by the Chevy Volt when it showed up at his legendary garage back in December. Today though, Leno’s ambivalence towards GM’s wundercar hit the front page, when the auto-obsessed comic gave the Detroit News a withering reaction [above] to the extended-range electric car. Maybe next time GM will give Team Coco a try…
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Reuters reports that Honda has canceled plans to build a new minicar and diesel engine plant north of Tokyo, as the company focuses its product offerings ahead of worldwide emissions standards ramp-ups. Honda’s move away from diesel has been slowly building for years, and the strategy was all but confirmed by the cancellation of a US-market Acura TSX diesel, which was replaced by the V6 TSX. Instead of developing new oil-burners, Honda is focusing on a new hybrid drivetrain capable of powering its larger vehicles. Thus far Honda has kept a conservative approach to hybrids, refining its “mild hybrid” IMA system over several generations. As Honda seeks to improve its fleetwide emissions, this new system (which could be Honda’s first “full hybrid”) has taken on new importance. Honda will officially announce its medium-range plans next Tuesday… and don’t be surprised if it involves a new full hybrid system capable of going toe-to-toe with Toyota’s Synergy Drive.

Pity the automotive industry. With a minimum three-year lead time for new product development, timing vehicle launches to coincide with appropriate fuel price levels is never easy. Chevy’s Volt, for example, was developed and hyped during the gas price spike of 2008 when it seemed almost anyone would pay a hefty premium to ease some of the pinch at the pump. Now though, with gas prices holding steady at around $3, there’s reason to question whether consumers will flock to unproven, expensive vehicles like the Volt, absent a pressing economic incentive to reduce gas consumption. The Freep takes on this topic today, asking with gas prices so low, will anyone buy a Volt? And this is not mere media hype. Bob Lutz fretted about this possibility last year, when he said

If gasoline stays cheap, then the American public says, “I’m not interested in that; I will keep my Tahoe longer.” It puts us in the industry in a position where we are at war with the customer

This would be a depressingly familiar position for GM to find itself in, especially since it would be a product of The General striving to do something different. Gas prices are slowly beginning to go up again, but there’s no sign that this summer will see the kind of energy price volatility that will have the Volt and Cruze (let alone the Nissan Leaf) flying off dealer lots. Do you see gas prices going up soon? How expensive will gas need to be before Americans see cars like the Volt as a mainstream option? What happens to the Volt if gas prices stay level, or even drop? No only are these intrinsically interesting questions, but there’s also lots of money (including lots of taxpayer money) riding on the outcome. What say you?

Don’t worry my fellow Americans, your supercharged Elises and Exiges are safe. In Europe, however, the introduction of the new 1.6 liter Elise means the old 1.8 supercharged cars are on their way out, victims of the new Euro 5 standard.

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