Although Detroit's big automakers have been whining about the potential negative impact of higher fuel efficiency standards might have on their business, a report issued this week says they could actually profit from stiffer regulations.
The study, conducted by Citi and Investor Network on Climate Risk studied a proposal in the U.S. senate to raise the CAFÉ standards. Most car makers would be unaffected in any changes through 2012. General Motors, however, could see an increase of 25 cents a share in earnings as a result of the changes. Chrysler would benefit the least.
The gains would come from netting business now going to foreign manufacturers. Toyota is now the world's largest auto maker, thanks to its Prius hybrid.
Suppliers of turbochargers, transmissions and diesel engine fuel injectors, meanwhile, could gain $4.3 billion in revenue by 2012 and even more by 2020.
Washington is pondering legislation that would raise fuel economy standards for passenger vehicles to 35 miles per gallon by 2020, about 10 miles per gallon above today?s levels. The CAFE standard have been kept relatively static for 32 years.
Honda is upping its production of gas-electric hybrid cars, but has no immediate plans to develop the kind of hybrid that would recharge from an electrical outlet, the company announced Tuesday.
Honda CEO Takeo Fukui also publicly criticized General Motors for its pursuit of the Chevy Volt at a press conference on Tuesday in Japan.
If that kind of high-performance battery power is possible then carmakers would be better served making a completely electric vehicle from an environmental standpoint, said Fukui, according to the The Wall Street Journal (subscription required).
Honda is scheduled to release several environmentally friendly vehicles at the 2007 Tokyo auto show this week. Among them may be a hybrid sports car and a diesel-engine car that gets 60 mpg.
GM has been touring its Chevy Volt, a plug-in hybrid electric car that it plans to make available to consumers by 2010, across the U.S. since its debut at the Detroit auto show. The Volt could possibly run off lithium-ion battery power alone for about 40 miles, according to GM.
Many critics have raised questions as to whether that battery type, more commonly used in laptops, could be cost effective and energy efficient for car use. GM has said it's developing the necessary technology to make a lithium-ion battery hybrid successful and plans to test out the Volt as soon as spring 2008.
The news follows statements made Monday by Toyota that it's taking its time to develop a plug-in hybrid to address questions of cost, efficiency and consumer interest.
Questions about expense, reliability and profitability are good reasons for Toyota to take its time on a plug-in electric hybrid, a company executive said Monday.
Yoshitaka Asakura, project general manager in Toyota's hybrid vehicle system-engineering division, said Monday in an article in The Wall Street Journal that Toyota is taking into account that not all consumers, despite vocal environmentalist groups, may be interested in a car that has to be re-charged daily.
Toyota executives spoke at several break-out sessions on emissions reduction, battery technology and design strategy on Monday at the 2007 Tokyo International Automotive Conference, of which Toyota and The Wall Street Journal are sponsors.
Katsuaki Watanabe, Toyota's president, is scheduled to give a speech at the conference Tuesday to outline his company's goals.
The company's attitude toward plug-in electric hybrids is noticeably more conservative than the one that rival General Motors has put forth.
GM has promised that its Chevy Volt, a plug-in electric hybrid car that will run on lithium-ion batteries, will be tested in spring 2008 and available for purchase in 2010. The company has been touring the concept Chevy Volt car around the U.S. to promote its future sale.
Toyota has not given a timetable for when its plug-in electric car will be available to consumers, though it has been working on pilot projects with household plug-in cars in Japan.
The company has also said in the past that current battery technology may be too expensive at this point to make a plug-in electric commercially viable. Some have estimated that it costs about .
In answer to critics' questions of battery expense, GM has said a new business model of leasing a car's battery may be introduced to release its car at an affordable price.
All the rhetoric comes amid an ongoing battle of some automakers against new Corporate Average Fuel Economy standards that would require them to raise the average mpg per product line from the current 25 mpg to 35 mpg by 2020. The bill requires automakers to either improve the mileage of trucks and sport utility vehicles and/or introduce more efficient cars in their lineup to bring down their overall fleet average.
Will a new anti-theft tool from General Motors and OnStar be enough to make your car not worth the hassle of stealing?
The Stolen Vehicle Slowdown, a new feature added to OnStar, takes away the ability to use a car's gas pedal, while allowing braking and steering controls to work.
OnStar, which already communicates with a car's engine through software, will now use that platform to bypass a driver's foot on the gas pedal and automatically slow down a car by preventing any further acceleration.
OnStar said it will only enable the service if a situation meets a "required criteria," such as a police request while pursuing a stolen vehicle, or if a child has accidentally been kidnapped by a person stealing what they assumed was an empty idling car.
Protocol for activating the service will require a car owner to first report the vehicle stolen to the police, then call OnStar and request the Stolen Vehicle Slowdown service be activated. OnStar will then use GPS-tracking to first locate the vehicle and give police a chance to get in its vicinity. Once police have reported the vehicle in sight and requested a slow-down, OnStar will activate a signal that causes a car's powertrain system to reduce engine power and ignore acceleration from the gas pedal.
"Safeguards will be in place to ensure that the correct vehicle in slowed down," OnStar said in a statement.
The new feature, which will be implemented in about 1.7 million of GM's 2009 model year vehicles, is an extension of OnStar's pre-existing Stolen Vehicle Location Assistance feature that first came out in 1996.
OnStar is also giving owners the choice to opt out of the service if they don't want it on their car.
OnStar currently receives about 700 requests to activate the Stolen Vehicle Location Assistance feature each month and has used it on over 28,000 cars since 1996, according to a company statement.
Bob Lutz
(Credit: Ray Wert)Love him or hate him, Bob Lutz is somewhat of a celebrity in the automotive world. From GM to BMW to Ford and back again, Lutz has seen firsthand the growth, as well as the trials and tribulations, of the automotive industry over a span of more than four decades. Oh, and in his early days, he flew fighter planes in the Marine Corps.
When I told some of my colleagues I was invited along with a small group of bloggers to have dinner with "Maximum" Bob, some beamed in envy, others snarled in skepticism. After all, GM has had its share of bad publicity over the years. But Bob and company claim those days are over. General Motors is hoping to please the entire customer spectrum, from eco-minded conservationists to speed-loving gearheads.
On the "green" side of the scale, GM seems to realize what alternative-fuel experts have been saying for a long time: No single fuel can fully replace our dependency on petroleum-based oil. Fuel diversification--using different ways to power the various cars on the road--eases both ecological and economic strain on our resources. During the first half of our meeting, GM carted us over to Universal Studios and outlined some of the technologies they're either testing or currently employing:
Hybrid systems. GM is introducing two types of hybrid powertrains: a two-mode hybrid system that will soon be available on the Chevy Tahoe and GMC Yukon (as discussed in a previous post) and a "mild" hybrid system that will be incorporated into smaller cars like the Chevy Malibu. And yes, it looks like that two-mode hybrid Escalade will make its way onto the market in the next year or so.
Flex fuel. Several vehicles, including trucks and SUVs, have been modified to run on up to 85 percent ethanol (E85). Although not yet widely available to the public, GM uses lots of these cars internally; they're often transport vehicles during promotions and press events. Of course, vehicle availability is only part of the equation, as E85 fueling stations are hard to come by in many areas. California, for example, only has four E85 pump locations in the entire state.
Hydrogen fuel cells. Real-world testing will soon begin on fuel cell-powered Chevrolet Equinoxes in Los Angeles and New York. It will be the largest market test ever of electric vehicles powered by hydrogen. Cars will be driven by consumers, although no specific details are available yet.
Electric cars. The all-electric Chevy Volt concept was unveiled at the Detroit auto show in January of this year. The Volt uses lithium-ion batteries, which are less toxic than nickel-metal hydride. GM folks say they're getting closer to a production car, but, they say, the battery technology still needs to get better before these cars hit dealerships.
On the other end of the spectrum, Lutz admits there's a horsepower race going on between car manufacturers. He says, for example, that a new version of the Corvette will most likely be faster and more powerful than the C6 and Z06 models on the market today. And although such muscle cars might seem the antithesis to gas-saving Saturns, Bob said not to rule out the possibility of any fuel-saving technologies on those vehicles in the future, either, should regulations so require. Electric-powered 500 hp sports car, anyone?
Besides Toyota Motor and BMW, automakers haven't done a great job of building fleets that emit less carbon dioxide, according to an Environmental Defense report.
The organization's 80-page report, called "Automakers' Corporate Carbon Burdens" (PDF), evaluated the carbon dioxide emissions of vehicles from major automakers between 1990 and 2005. Companies graded were: Ford Motor, General Motors, DaimlerChrysler, Toyota, Honda Motor, Nissan Motor, Hyundai Motor, Kia Motors, Volkswagen, BMW, Subaru and Mitsubishi Motors.
"The rate of carbon dioxide emissions from new cars and light trucks in the U.S. dipped for the first time in two decades, but their overall contribution to global warming has continued to grow steadily since 1990," Environmental Defense said in a statement.
BMW achieved a 12 percent reduction in carbon dioxide emissions across its entire fleet of cars, more than any of the other car companies included in the study. Environmental Defense attributes the drop to the company's addition of the low carbon dioxide-emitting Mini Cooper to its lineup, as well as efficiency improvements made across its entire line of cars.
Toyota was rated the second best, reducing carbon dioxide emissions by 3 percent overall during that period, due in large part to its introduction of the Prius hybrid to its lineup and efficiency improvements made to the Corolla.
The report also rated the overall "carbon burden" that automakers placed on the environment, based on factors that included the emissions of their cars and the number of cars sold.
In this area, GM ranked No. 1, with a 6.5 percent reduction in overall carbon burden. Environmental Defense, however, attributed this to GM's loss of market share, not to the carbon dioxide emissions of its overall lineup, which actually rose 3 percent. In contrast, Toyota, while low in its 3 percent carbon dioxide emissions reduction rate, grew its carbon burden by 125 percent, due to an increase in overall sales.
Environmental Defense combined the average over an entire lineup of cars and light trucks from 1990 to 2005 to determine an automaker fleet's average carbon dioxide emissions rate:
• BMW, reduced 12.3 percent.
• Toyota, reduced 3 percent .
• Volkswagen, up 1.3 percent.
• Subaru, up 1.6 percent.
• General Motors, up 3 percent.
• Mitsubishi, up 4 percent.
• Honda, up 4.4 percent.
• Ford, up 4.7 percent.
• DaimlerChrysler, up 4.8 percent.
• Nissan, up 9.2 percent.
• Hyundai, up 17 percent.
• Kia, up 30 percent.
General Motors Chairman and CEO Rick Wagoner will be a keynote speaker at the 2008 International Consumer Electronics Show, the Consumer Electronic Association announced Monday.
This will be GM's first keynote at the trade show, which is known for attracting celebrities eager to see the latest in high-tech gadgets, as well as the world press.
Wagoner joins technology leaders Bill Gates of Microsoft, Paul Otellini of Intel, and Panasonic's Toshihiro Sakamoto, who have also confirmed as speakers for the international trade show that takes place annually in Las Vegas.
While Wagoner might seem like a stretch for a consumer electronics trade show, the choice makes sense given the increase in computer technology being implemented in cars.
The 2008 car model year is poised to be the year when things like touch screens, hands-free Bluetooth communications, entertainment centers and high-tech navigation go from after-market add-ons or high-end options in luxury models to optional or even standard equipment for entire car lineups, according to a recent report from the Telematics Research Group (see PDF).
GM has been struggling for market share with Asian competitors like Toyota, which recently surpassed GM as the world's largest automaker in terms of world sales. As part of its effort to move forward and stay competitive, the company has announced the Chevy Volt, an electric car it says will be ready for sale by 2010.
And while is hasn't named names, GM maintains that it's partnering with "top names in the software industry" to help it develop the tools for evolving its cars into computers on wheels.
"In fuel economy or safety or telematics, software plays a major role," Hans-Georg Frischkorn, executive director of global electrical systems, controls and software at GM, told CNET News.com.
Frishkorn said that GM sees software "as one of the next frontiers."
General Motors may lease the battery packs for its Chevy Volt electric car to make it more affordable, according to a news report.
The Volt is unveiled at the 2007 Detroit auto show.
(Credit: CNET Networks)GM's electric car will take lithium-ion batteries which are known to be expensive and have a limited lifespan compared with the life of a car.
Bob Lutz, GM's global product chief, has said that the company hopes to make the car available in the $30,000 price range.
While GM has several leading battery technology developers and manufacturers onboard in its effort to build an affordable, long-range rechargeable battery for the car, critics have pointed out that the price point could be a challenge given the technology needed to go into it.
To achieve that price point, GM may rent the battery packs needed to run the Chevy Volt, The Financial Times has reported.
GM announced in early August that the company will be ready to test the Chevy Volt in spring 2008 and is still on track for a late 2010 sales availability.
Chevy Tahoe hybrid
General Motors is banking on the increasing demand for fuel-efficient cars by launching hybrid versions of two of its full-size SUVs: the GMC Yukon and the Chevy Tahoe. And although the cars aren't slated to go on sale until this fall, GM is already busy building buzz.
The new models, available in both two- and four-wheel drive, use a "two-mode" powertrain designed jointly by GM with BMW and Daimler-Chrysler. This Hybrid Operating System (HOS) allows the car to operate either on electricity or gasoline, depending on the power needs of the car.
Allocation of electric power versus gasoline power is determined by a combination of factors, including driver input, speed and terrain. GM claims the Tahoe can run with gentle throttle input (that is, no punching down on the gas pedal) up to about 32 miles per hour purely on electric power. If the driver reaches higher speeds, accelerates quickly or starts up a steep grade, the internal combustion V8 engine will kick in to deliver more power. The two-mode system also provides enough juice to tow up to 6,200 pounds.
Like other hybrids, the Tahoe and Yukon use regenerative braking to help recharge the car's 300-volt nickel-metal-hydride battery when the car stops or slows down. Two electric motors power an electronically variable hybrid transmission.
GM hasn't released numbers in any detail yet, but the company claims the new hybrids are 40 percent more fuel-efficient in city driving alone, and 25 percent more fuel-efficient overall than their nonhybrid counterparts. The big discrepancy between city and overall performance is due, in part, to the fact that the car relies more heavily on electric power at slower speeds, and because city driving requires more braking, which charges the battery more often.
GMC Yukon hybrid
While the two-mode system seems to provide ample power, it's hard to believe the typical full-size-SUV owner would use these cars in a manner that would achieve maximum fuel efficiency. Passengers and cargo, as well as towing, affect gas mileage drastically. Even with a light load, fuel efficiency can vary greatly from driver to driver -- lead-footers will see that fuel gauge needle drop much faster.
Even under optimal driving conditions, a mere 25 percent overall improvement in fuel quality is a little disappointing. The 2007 nonhybrid models of the Tahoe and Yukon are rated between 15 and 22 miles per gallon, depending on the trim level. That means, at their best, the new hybrids will perform 3.75 to 5.5 miles per gallon better overall (although GM says city driving alone yields an improvement of 6 miles per gallon).
That said, continued consumer demand for horsepower and a simultaneous increase in environmental awareness must make it incredibly difficult for designers and engineers to strike a balance between fuel efficiency and performance, especially with vehicles this size. With these seemingly conflicting interests in mind, the Tahoe and Yukon do a fair job pleasing some without alienating others. And while GM's hybrid models are a step in the right direction, the reality is, at this point in time, gigantic SUVs still aren't good for the environment.
GM plans to unveil hybrid versions of other cars and trucks over the next couple of years, including hybrid Saturn and Cadillac models. Could a fuel-efficient Escalade be on its way?
General Motors announced Thursday that it will begin testing for its electric rechargeable car, the Chevy Volt, in spring 2008.
The lithium-ion battery packs planned for the
The company still maintains that the Chevy Volt it introduced at the 2007 Detroit Auto Show will be ready for sale by late 2010.
The company also announced Monday it has signed another contract with battery manufacturer A123Systems to help it develop the lithium-ion battery cells for its E-Flex electric drive train.
GM already has contracts with other major battery technology companies and suppliers.
Korean-based LG Chem is working on battery packs with cells provided from its subsidiary Compact Power. Continental Automotive Systems is working on a battery pack using the cells developed by GM and A123Systems. All four of the companies are working toward the goal of making GM an affordable, powerful and long-range rechargeable lithium-ion battery.
It's unknown at this point which battery technology will ultimately make it into the Chevy Volt.
GM's electric competitors have already announced their testing plans. Toyota's household plug-in has been approved for public road testing in Japan with plans to apply for U.S. approval. And Ford has started a program to test hybrid plug-in vehicles with Southern California Edison in California, the company announced in early July.
