Is the EPA Setting Us Up?

The EPA is currently working out the EPA standards on electric and plug-in electric vehicles and there's been quite a lot of debate on how, why, who, what, etc... But this is the first time I've seen the values being labeled as outright fraudulence:<br /><blockquote>Using the DOE’s apples to apples methodology, the MPGe of the Nissan Leaf is not 99 but 36! Now, 36 is a good mileage number, but it is pretty pedestrian compared to the overblown expectations for electric vehicles, and is actually lower than the EPA calculated mileage of a number of hybrids and even a few traditional gasoline-powered vehicles like the Honda CR-Z. (Source: <a href="http://blogs.forbes.com/warrenmeyer/2010/11/24/the-epas-electric-vehicle-mileage-fraud/">Forbes blog</a>)</blockquote>I don't agree with his argument at the end on tailpipe emissions, although I understand it. But in the long run, it's actually easier to mandate the power sources for emissions than it is each car.  And the analogy he uses for the main subject matter is definitely stretching things...<br /><br />So is the EPA setting us up for a long term failure? Are we being fooled by the electric dream?

Is the EPA Setting Us Up?

The EPA is currently working out the EPA standards on electric and plug-in electric vehicles and there's been quite a lot of debate on h...

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Would You Buy a Car That Gets 62 MPG?

The Obamam administration is working on the new fuel efficiency guidelines starting in 2017. By then, the fuel economy average is supposed to be 35.5 mpg under the most recent guidelines adopted by the government over the past couple of years. <br /><br />From 2017-2025, the discussion has continued on how much more can the US force out of the vehicle manufacturers. Administrative leaks have the goal for automakers being set anywhere from 47 to 62 mpg. That's an annual increase of 3 to 6 percent.<br /><br />Environmentalist and other interested parties are pushing hard for at least 60 mpg by 2025. They argue the higher goals will force innovation and create new jobs in the automotive industry. The automotive industry says the new rules will cost consumers greatly when they go to buy their new cars.<br /><br />The new proposals are expected in September, 2011, with the final ruling set in July 2012.<br /><br />What's remarkable about these proposals is how few cars now meet or exceed these limits. The Prius, for instance is rated at 50 mpg. Although it should be pointed out the CAFE rules being revised are different from the ratings you see on the side of your car. The numbers can be wildly different under the two rating systems. Also, the rules require a fleet-wide average, not on individual cars. Plus, the rules are different based on the type of car being built (cars vs trucks, for instance).<br /><br />Some groups, like the NRDC, are pushing hard for the higher standards:<br /><i>"The Obama Administration is on the right path in recognizing the need to use the Clean Air Act to improve emission efficiency standards, but it should pursue the best option possible," Natural Resources Defense Council Transportation Program Director Roland Hwang said. "The problem with setting the bar at just a 3 percent improvement per year is that it puts the U.S. auto industry on a path towards mediocrity. A 6 percent improvement, which translates into a 62 miles-per-gallon fuel efficiency standard, will really encourage innovative ideas, create more jobs, and do more to put the country’s auto industry back in a leadership role. But beyond the jobs and economic benefits, a stronger standard will help break our crippling dependence on oil."</i>

Would You Buy a Car That Gets 62 MPG?

The Obamam administration is working on the new fuel efficiency guidelines starting in 2017. By then, the fuel economy average is supposed ...

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Report Card for Cars, What Grade Will Your Car Get?

<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgSLqKDz9929QrSGcyqYnoiZhKphDpBaRKMagPuMECfAEKaIDuQyc6SPS_c05v6wIw0pyV04TKC5xO0-fXQSNPz9OIYumRl7GjzxI9lcSPhHDmwv8zu7LA5i2t8Yazoy9r6F0QwUqDM0BI/s1600/fueleconomystickersforPHEV.JPG" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="239" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgSLqKDz9929QrSGcyqYnoiZhKphDpBaRKMagPuMECfAEKaIDuQyc6SPS_c05v6wIw0pyV04TKC5xO0-fXQSNPz9OIYumRl7GjzxI9lcSPhHDmwv8zu7LA5i2t8Yazoy9r6F0QwUqDM0BI/s320/fueleconomystickersforPHEV.JPG" width="320" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">New Fuel Economy Sticker for Plug-in Hybrid Electric Vehicles</td></tr></tbody></table>The EPA and DOT are working together to create a <a href="http://www.epa.gov/fueleconomy/label/label-designs.pdf">new fuel economy sticker</a> to be placed on new cars. They have proposed two different labels, which while different, are both designed to let the buyer know just what kind of car they are buying.<br /><br />The first label gives a letter grade to the car, based on its fuel economy. Electric cars would get A+ ratings, while no van would get over a C+. Plug-in hybrid vehicles would fall in the A- range.<br /><br />The second label focuses in on the miles per gallon and the estimated fuel costs. This allows for greater comparison between vehicles, especially given the big differences that are happening with new cars. <br /><br />Both label have MPG and GPM (gallons per 100 miles) ratings along with greenhouse gas emissions. They will also give an estimate of annual fuel costs, plus more information comparing the fuel economy of this car to that of other like vehicles. Smart phone owners will be able to scan in the QRR code and get additional information.<br /><table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhIHjMUBnGzKUGmgbuGIZeW1zBxxSG1U2hl7F87Z_KMA-RrJ2gVqS3Vtcco4bWpiEJrosknXx6zG9umZAWHnz22KYIgF54X9AxRNzfcBWpCCQAzc5JO4joIG8h1pROTzGNoDL8AKCpRGiE/s1600/fueleconomystickerEV.JPG" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhIHjMUBnGzKUGmgbuGIZeW1zBxxSG1U2hl7F87Z_KMA-RrJ2gVqS3Vtcco4bWpiEJrosknXx6zG9umZAWHnz22KYIgF54X9AxRNzfcBWpCCQAzc5JO4joIG8h1pROTzGNoDL8AKCpRGiE/s320/fueleconomystickerEV.JPG" width="146" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Electric Vehicles Get an A+</td></tr></tbody></table><br />The exciting part for those who are following the new types of cars (electric, plug-in hybrid, E-REV, etc...) is the new labeling system. Vehicles like the Volt are supposed to drive for 40 miles or so on all electric power, then go hybrid. After that initial electric range, you need gas to go, so the fuel efficiency figure is important to know.<br /><br />That type of information will now be found on the sticker. The new sticker is designed to let you know the estimated fuel economy in each different mode (electric, hybrid, or gas-only).<br /><br />The only problem I have with the new sticker is its emphasis on 'energy consumption measurement' where the energy consumption (in this case, electricity) is in MPGe, or Miles Per Gallon equivalent. That sort of measurement is confusing to people. The KiloWatt hours is shown on the electric vehicles, but not on the plug-in hybrid vehicles. <a href="http://www.plugincars.com/expert-dont-dumb-down-window-stickers-plug-cars-52510.html">That's less informative than it could be</a>.

Report Card for Cars, What Grade Will Your Car Get?

New Fuel Economy Sticker for Plug-in Hybrid Electric Vehicles The EPA and DOT are working together to create a new fuel economy sticker to ...

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President Obama Praises the Chevy Volt

<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjh4pVQtcVy85xUNSt8rDuAYywjm5TkfwO-k5pc-rSReodboLoIUFSjlntRrwOs-ohW-E24zgWJvzlvsx8M5BF3w0emyjARXHDQF9Chc9BAOqvU0HyHWhcOq_N0Qh6DbPdXq-OrMq3Dkog/s1600/president+obama+gets+out+of+Chevy+Volt.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="195" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjh4pVQtcVy85xUNSt8rDuAYywjm5TkfwO-k5pc-rSReodboLoIUFSjlntRrwOs-ohW-E24zgWJvzlvsx8M5BF3w0emyjARXHDQF9Chc9BAOqvU0HyHWhcOq_N0Qh6DbPdXq-OrMq3Dkog/s320/president+obama+gets+out+of+Chevy+Volt.jpg" width="320" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">President Obama Next to Chevy Volt</td></tr></tbody></table>President Obama, even as BP finally cuts off the flow of oil into the Gulf (maybe!), was visiting the ground breaking of a battery plant in Holland, MI. The Compact Power (Compact Power is a subsidiary of LG Chem) battery plant will make the battery cells for the Chevy Volt. The Chevy Volt will be the first of it's kind, an Extended Range Electric Vehicle (E-REV). <br /><br />The battery plant was partially built using federal funds of $151 million and matched by the company. The plant will create several hundred jobs over the next few years as construction finishes and workers are hired.<br /><br />Powered by electricity, the battery pack can be recharged by a small gas engine designed only to recharge the battery. So, you can travel for up to 40 miles on electric power, then you can keep on going as gas engine kicks in.<br /><br />The Volt goes on sale later this year in select states.<br /><br />According to Obama, the US will have the capacity to build 40 percent of the world's batteries by 2015.<br /><br />Ford will also be purchasing batteries from the Compact Power plant.

President Obama Praises the Chevy Volt

President Obama Next to Chevy Volt President Obama, even as BP finally cuts off the flow of oil into the Gulf (maybe!), was visiting the gro...

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NHTSA Will Add Sound to Hybrids

<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_58Pzv47nvmko44im4-jXi8TxOltCqOlQBsrNyckZPqxoOUhYrITT_-JREkk-D9UGnsOcO0R5lloWzeHZyz-D1PD4HyUvBQA6rjTpsYF-pLOwfSGtmGYgZdA1MdeGlAjHbHgbUCNYIbo/s1600/Blind+Man+and+Car.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_58Pzv47nvmko44im4-jXi8TxOltCqOlQBsrNyckZPqxoOUhYrITT_-JREkk-D9UGnsOcO0R5lloWzeHZyz-D1PD4HyUvBQA6rjTpsYF-pLOwfSGtmGYgZdA1MdeGlAjHbHgbUCNYIbo/s320/Blind+Man+and+Car.jpg" width="320" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Photo from <a href="http://www.flickr.com/photos/travelho/677145358/">flickr</a></td></tr></tbody></table>The National Highway Traffic Safety Administration (NHTSA) will begin writing legislation to set requirements "for an alert sound that allows blind and other pedestrians to reasonably detect a nearby electric or hybrid vehicle" within 18 months and must finalize the rules within three years (Source: <a href="http://www.detnews.com/article/20100519/AUTO01/5190401/1148/auto01/+Quiet+cars++to+get+alert+sounds#ixzz0oUSNARGr">Detroit News</a>, <a href="http://www.autoalliance.org/index.cfm?objectid=B239CDD7-C296-BA16-3395C290238C0BA9">Alliance of Automobile Manufacturers</a>).<br /><br />The sound will be activated automatically and drivers will not be allowed to turn off the sound.  The NHTSA still has to decide how loud and what type of noise the cars need to make in order to alert blind or other pedestrians.  They also have to consider the overall community noise impact.<br /><br />There has been recent study data indicating hybrids have a higher rate of pedestrian impacts, although there is <a href="http://www.npr.org/blogs/health/2010/04/hybrid_cars_silence_just_one_f.html">some controversy</a> over the results.<br /><br />The legislation will impact hybrid cars and electric vehicles which can run 'silently' at low speeds.  The concern is for blind pedestrians who listen for oncoming cars and will not realize a car running on electricity is there.  Two major auto manufacturing groups, the <a href="http://www.autoalliance.org/index.cfm?objectid=B239CDD7-C296-BA16-3395C290238C0BA9">Alliance of Automobile Manufacturers</a> and the Association of International Automobile Manufacturers, sent a letter supporting the move by the legislation.<br /><br />"Good policy is a collaborative effort, and this is a good approach for pedestrians and automakers," said Alliance President and CEO Dave McCurdy in a statement. "This encourages an innovative solution."

NHTSA Will Add Sound to Hybrids

Photo from flickr The National Highway Traffic Safety Administration (NHTSA) will begin writing legislation to set requirements "for an...

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Government Will Buy Over 5,000 Hybrid Cars This Year

The White House will announce today the government will be buying 5,603 more hybrid vehicles to replace the same number of older, less fuel efficient vehicles. The government estimates the new fleet of cars will reduce petroleum consumption by the equivalent of an estimated 7.7 million gallons of gas, or 385,000 barrels of oil.<br /><br />The new 5,000 hybrids and plug-in hybrid electric vehicles (PHEV) will double the federal hybrid car fleet. The purchases are made through the US General Service Administration. The hybrid cars will be bought this year, while the PHEVs will be purchased in 2011.<br /><br />The general goal is to cut petroleum use by 30 percent by 2020.<br /><br />“President Obama has called on the Federal Government to lead by example in sustainability and our efforts to build a clean energy economy. By doubling the hybrids in the Federal fleet, agencies are answering that call by reducing petroleum consumption and increasing fuel efficiency,” said Nancy Sutley, Chair of the White House Council on Environmental Quality. “These types of clean energy investments will help create new private-sector jobs, drive long-term savings, build market capacity, and foster innovation in clean energy industries.”<br /><br />“By doubling the hybrid fleet and committing to purchasing plug-in hybrid electric vehicles, GSA is leveraging our position as the government’s centralized supplier to invest in emerging clean energy technologies, increase the government fleet’s fuel economy, and decrease the cost of government operations,” said Martha N. Johnson, Administrator of General Services. “GSA is committed to delivering solutions that help agencies deliver on the President’s call to increase sustainability and energy security.”<br /><br />“The Department of Energy is committed to expanding the use of hybrids even as we reduce our fleet overall, saving gasoline and money for taxpayers,” said Secretary Chu.

Government Will Buy Over 5,000 Hybrid Cars This Year

The White House will announce today the government will be buying 5,603 more hybrid vehicles to replace the same number of older, less fuel ...

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Ford Plans to Electrify Michigan

Ford will be building hybrid and electric vehicles in Michigan according to Bill Ford Jr., Ford's executive chairma. In a follow-up to yesterday's teaser, Bill Ford Jr, along with Gov. Jennifer Granholm, announced Ford will be investing $450 million in the Michigan Assembly Plant in Wayne.<br /><br />"This investment underscores how serious we are about delivering a range of electrified vehicles to customers -- including hybrids, plug-in hybrids and pure electric vehicles," said Bill Ford Jr., Ford's executive chairman. "Our industry is at the intersection of three critical global issues -- the economy, energy and the environment. The winning companies will be those that address these issues with vehicles that are also exciting and fun to drive, without compromises."<br /><br />Michigan granted Ford $188 million in tax incentives to insure Ford's investment in the state. the Michigan Economic Growth Authority board approved Phase II incremental job retention credits valued at $110 million and battery pack tax credits valued at $78 million, for a total incentive package valued at $188 million, to help win Ford’s investment over competing states, China, Europe and Mexico. <br /><br />“Ford continues to demonstrate its commitment to Michigan by bringing together world-class products, advanced technology applications and our talented workforce to build the next generation of vehicles that will help reduce our nation’s dependence on foreign oil,” Granholm said.<br /><br />Ford expects production to begin in 2012, and the hybrid, plug-in hybrid and electric vehicles will be built on the global C-car platform (same as the Ford Focus).<br /><br />Ford is also planning on moving battery pack production and development to Michigan, and out of Mexico. The pack manufacturing will include design and in-house assembly, which is currently done in Mexico. The investment will impact several Michigan Ford facilities, including Michigan Assembly, Wayne Stamping, Van Dyke Transmission in Sterling Heights and the Product Development Center in Dearborn, among others.<br /><br />Sources: <a bitly="BITLY_PROCESSED" href="http://thegovmonitor.com/world_news/united_states/ford-to-invest-450-million-in-michigan-for-hybrid-vehicles-and-retain-34490-jobs-20929.html">govmonitor</a>, <a bitly="BITLY_PROCESSED" href="http://www.reuters.com/article/idUSN1117303320100111?type=marketsNews">reuters</a>, and <a bitly="BITLY_PROCESSED" href="http://www.freep.com/article/20100111/BUSINESS03/100111101/1016/Ford-to-invest-additional-450M-in-Michigan">Detroit free press</a>.

Ford Plans to Electrify Michigan

Ford will be building hybrid and electric vehicles in Michigan according to Bill Ford Jr., Ford's executive chairma. In a follow-up to ...

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Department of Defense Funding Next Generation of Research

The $636 billion Department of Defense appropriations bill has set million aside to develop hybrids, hydraulic hybrids, batteries, plug-in hybrids, etc... (Source: <a bitly="BITLY_PROCESSED" href="http://www.detnews.com/article/20091220/POLITICS03/912200301/1409/METRO">Det News</a>).  From Lithium-ion battery production to all terrain hybrid vehicles, the appropriations bill is set to fund years of research into the electrification of America.<br /><br /><br /><b>Funds Are Being Set Aside For</b><br />$27 million for domestic lithium ion battery production. These funds will be used for a competitive program to develop domestic industrial sources of advanced battery technologies for use in military applications. Lithium ion batteries also have dual-use applications in the commercial automotive industry for hybrid electric vehicles. The availability of domestically manufactured lithium ion batteries is critical to both the DoD and to the ability of our automotive manufacturers to produce the next generation of ground vehicles.<br /><br />$9 million for an advanced battery development program. These funds would initiate a new advanced battery technology development program at TARDEC. Advanced battery technology offers tremendous potential to significantly improve the near-term operational performance and capability for military vehicles to generate, distribute and store electrical power. Advanced batteries are also recognized as a critical component of developing military hybrid vehicles.<br /><br />$3.2 million to continue a coordinated hybrid engine development program at TARDEC. This merit-based program focuses on both basic and applied research in engine technology, power electronics, control technology and other areas. Research areas include theoretical analysis, computational design and analysis, and experimental verification components.<br /><br />$3.28 million for the development and testing of advanced plug-in hybrid vehicle technologies. This project seeks to develop and deploy plug-in hybrid vehicle (PHEV) technologies that will reduce DoD fuel consumption using conventional generation, renewable generation, and vehicles with exportable electric power.<br /><br />$2.8 million for hydraulic hybrid vehicle technology. This research seeks to produce a new line of advanced, highly efficient, hydraulic pump and motor products, which will replace conventional automatic transmissions and could significantly improve overall drivetrain efficiency in military ground vehicles. <br /><br />$2.4 million to continue development of lightweight, rechargeable lithium ion batteries using nanomaterials technology. Lithium ion batteries could be considerably lighter, much more capable, and more affordable than currently available battery systems.<br /><br />$2 million for the development of a digital hydraulic hybrid system. The goal of this project is to develop a series hybrid hydraulic system that achieves significant weight and volume reduction while also gaining a 50 percent improvement in fuel efficiency over current technology. It is intended that the hybrid hydraulic system resulting from this research will be demonstrated on a High Mobility Multipurpose Wheeled Vehicle (HMMWV).<br /><br />$1.6 million for the development of a lightweight hybrid transmission for military ground vehicles. This project seeks to develop a hybrid transmission for military ground vehicles that will result in improved reliability, reduced weight, and increased fuel savings.<br /><br />$1.6 million for the development of all-terrain hybrid electric vehicle technology.

Department of Defense Funding Next Generation of Research

The $636 billion Department of Defense appropriations bill has set million aside to develop hybrids, hydraulic hybrids, batteries, plug-in h...

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Lawmakers Offer $220 Million in Tax Credits to Build Batteries in Michigan

Car makers <a href="http://www.detnews.com/apps/pbcs.dll/article?AID=2009912180406">are set to receive $220 million in tax credits </a>for building and developing battery packs in Michigan. State officials believe 1,000 jobs will be created because of the offer.<br /><br />FM, Ford and Dow Chemical are the companies the tax credits will benefit. According to Sen. Jason Allen, R-Traverse City, the credits are based on production and jobs created. He estimates the jobs created will be more than 2,000.<br /><br /><a href="http://hybridreview.blogspot.com/2009/12/ford-spending-500-million-in-michigan.html">Ford and GM were pushing for the tax credits</a> as they plan on building plants for assembling hybrids, plug-in hybrids and battery packs in Michigan. <br /><br />GM is investing $700 million to build the Volt (plus others), while Ford is planning on investing $500 million.

Lawmakers Offer $220 Million in Tax Credits to Build Batteries in Michigan

Car makers are set to receive $220 million in tax credits for building and developing battery packs in Michigan. State officials believe 1,...

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Audi Says Not So Fast to Plug-in

Audi of American President Johan de Nysschen <a bitly="BITLY_PROCESSED" href="http://www.detnews.com/apps/pbcs.dll/article?AID=2009912150320">brought the fight for diesel vs plugs to the forefront once again</a>. Not surprisingly, given their success in Europe with diesels, Audi is a proponent of diesel technology.  And they would like it if the federal government would stop encouraging plug-ins so much.  He'd prefer it if they let the 'marketplace decide.'  <br /><br />But other car makers and the Obama administration seem to disagree with him.<br /><br />Johan de Nysschen points out that if 1/3 of Americans drove diesels, "America would save 1.5 million barrels of oil a day."<br /><br />"I understand why political leaders have fallen in love with hybrids and electrics. But this may be the one time you'll hear someone in Washington say it shouldn't be a monogamous relationship," de Nysschen said.<br /><br />But that's not enough for some. With oil dependence and environmental issues coming to the forefront, gas and diesel are taking the backseat to electricity right now. <br /><br />The Obama administration has given $2.4 billion in cash grants to help develop battery technology and electric vehicles. Congress has set up $7,500 in tax breaks to those who buy cars like the Volt or plug-in Prius in the coming years. And Obama hopes to have 3 electric vehicle plants and 30 advanced battery factories running by 2015. That sort of production could lead to the production of 500,000 plug-in hybrid vehicles a year by 2015.<br /><br />Those sort of federal incentives will allow plug-ins and electric vehicles to compete at first, given the head start diesels and gas only engines have.

Audi Says Not So Fast to Plug-in

Audi of American President Johan de Nysschen brought the fight for diesel vs plugs to the forefront once again . Not surprisingly, given th...

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Edmunds and Obama Fight it Out Over Cash for Clunkers

The Cash for Clunkers Program is over and done, but the overall benefit and cost is still being debated.  On Wednesday, <a bitly="BITLY_PROCESSED" href="http://www.edmunds.com/help/about/press/159446/article.html">Edmunds laid out a study</a> showing it cost taxpayers $24,000 per vehicle sold under the Cash for Clunkers Program.<br /><br /><b>Edmunds Lays Out the Cost</b><br />What it boils down to, for Edmunds, is despite 690,000 sales being made under the Cash for Clunkers Program, they believe only 129,000 would not have been made otherwise.  They based it on what the prediction for sales was, plus the 'hangover' affect slowing sales before and after the program<br /><blockquote><i>"Our research indicates that without the Cash for Clunkers program, many customers would not have traded in an old vehicle when making a new purchase," Edmunds.com Senior Analyst David Tompkins, PhD told <a bitly="BITLY_PROCESSED" href="http://www.autoobserver.com/2009/10/cash-for-clunkers-tab-24000-per-vehicle-of-taxpayer-cash.html" onclick="s_objectID="http://www.autoobserver.com/2009/10/cash-for-clunkers-tab-24000-per-vehicle-of-taxpayer-cash.html_1";return this.s_oc?this.s_oc(e):true">AutoObserver.com</a>. "That may give some credence to the environmental claims, but unfortunately the economic claims have been rendered quite weak."</i><br /></blockquote><b>The White House Gets Angry <br /></b><br />That analysis seems to have ticked off the whitehouse.  Waxing on the sarcastic side, <a bitly="BITLY_PROCESSED" href="http://www.whitehouse.gov/blog/2009/10/29/busy-covering-car-sales-mars-edmundscom-gets-it-wrong-again-cash-clunkers">the Whitehouse blog accuses Edmunds of attempting to grab headlines</a> (which they did: <a bitly="BITLY_PROCESSED" href="http://money.cnn.com/2009/10/28/autos/clunkers_analysis/index.htm">CNN</a>).  The White House went on to say Edmunds was saying "<i>all the other cars were being sold on Mars.</i>"<br /><br />I think their counter was strong enough not to need the sarcasm, but that's just me.<br /><br />Anyways, the White House points out that "<i>people were drawn into dealerships by the Cash for Clunkers program and ended up buying cars even though their old car was not eligible for the program.</i>"  And 2) "<i>Major automakers including GM, Ford, Honda and Chrysler all increased their production through the end of the year as a result of this program, which will help boost growth beyond the third quarter.</i>"<br /><br />The White House points to <a bitly="BITLY_PROCESSED" href="http://www.whitehouse.gov/assets/documents/CEA_Cash_for_Clunkers_Report_FINAL.pdf">a CEA report</a>, which estimates the number of sales made as a result of the CARS program at being 3-4X higher than that of Edmunds.  There's a lot of fuzziness around both numbers, but that's the problem with these analysis.<br /><br />The report cited by the White House says exactly that in the first sentence of their conclusion: "<i>The analysis contained here is necessarily speculative, because little can be said with confidence about two key questions: what is the time frame over which the “payback” effect will occur, and what would the pace of clunker-replacement-induced demand for new cars have been in the absence of the program?</i>"<br /><br /><b>Edmunds Reply</b><br /><a bitly="BITLY_PROCESSED" href="http://www.edmunds.com/help/about/press/159486/article.html">Edmunds has fired back</a> saying "<i>The truth is that consumer incentive programs are always hugely expensive when calculated by incremental sales — always in the tens of thousands of dollars. Cash for Clunkers was no exception.</i>"  They also point out the claim for drawing potential customers in was "<i>widely supported by anecdote but by little analysis.</i>"  And finally <i>"the economy is recovering accompanied by improved car sales. No manufacturer increases production -- a decision with long-term consequences -- based on the 30-day sales blip triggered by an event like Cash for Clunkers.</i>"<br /><br />As an aside: One wonders if, like the banks, the auto makers started increasing production so quickly based on pressure from the government.   The banks were told to take the loans being offered, and GM and Chrysler are still the major beneficiaries of government 'aid.'  It's fair to suppose the production increases may have been political decisions, even if they weren't asked to do so.<br /><br /><b>Who Wins? </b><br />So, who's right?  I'd say they both were.  Certainly, when Edmunds focused in tightly on what the cost per vehicle was, that cost is going to be high.  And they are certainly right to say that most of the sales during the program would have happened anyways.  The number they use may be low, but sales would have happened with or without the CARS program.<br /><br />I would argue the Dept of Transportation and the Whitehouse did not need to be sarcastic in their counter, but they definitely were correct in pointing out the bigger picture.  But that picture is not as black and white as they say.  The long term economic recovery is what is driving the car makers to increase production, not the C4C program.<br /><br />Was the program helpful at a low point for the manufacturers? Absolutely. Although it was harder on the dealers than the administration would probably want to talk about, Edmunds figures show at least an increase of over 100K sales. That's not nothing. <br /><br />But the high cost per vehicle is also a key reminder that such programs, while helpful for the overall economy, do cost a lot to run and the tax payers paid it. Was there a payback? Was it worth it? These, unfortunately, aren't answerable. Not in the real world, which is too fluid and when either direction can find indicators for it.<br /><br /><b>Follow Up</b><br />It seems that Detroit News writer David Shepardson is siding with the White House in their argument with Edmunds. He points out (See <br /><a bitly="BITLY_PROCESSED" href="http://www.detnews.com/article/20091029/AUTO01/910290491/1148/White-House--Edmunds-in-war-of-words-over--clunkers-">detnews.com</a>) the different estimates: Ford says 30-40 percent of the sales were from the Cash for Clunkers (CARS) program (210,000-280,000), GM thought it was 500,000 and Moody estimated the difference at 60 percent (420,000). <br /><br />That's quite a range of numbers to deal with.  Edmunds is clearly on the more pessimistic side, while GM is clearly the most optimistic about the affect, although both the government and the Moody figures are obviously on the more 'optimistic' side.<br /><br />But most damaging to Edmunds is the quote from Mike Jackson, chairman and CEO of AutoNation.<br /><blockquote>While Edmunds is usually highly respected within the automotive industry for its accuracy and reliability, he said, its analysis of the cash for clunkers program is "shoddy."<br /><br />"Simply put, they've misrepresented the facts, and the White House is completely justified in calling them out on it," Jackson said, adding that it appears "Edmunds' political views have tainted their usual rigorous approach to research." <br /></blockquote>Ouch! The shoddy remark in particular was pretty harsh. None of those involved in the argument can truly be treated as disinterested parties, however. Any estimate from Ford or GM, especially, have to be taken with a grain of salt. The same can be said of AutoNation, Moody's and Edmunds. And certainly the White House has a stake in how the program is perceived.

Edmunds and Obama Fight it Out Over Cash for Clunkers

The Cash for Clunkers Program is over and done, but the overall benefit and cost is still being debated.  On Wednesday, Edmunds laid out a s...

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Not Everyone Gets TARP Funds for Hybrids

With all the press releases from towns, counties and states that have gotten federal money to buy hybrids lately, it's interesting to note those who don't.<br /><br />In Oregon, a $15 million application to provide hybrid vehicles and electric recharging stations along Interstate 5 and Interstate 84 was not approved.  Oregon had hoped to use the funds to help purchase 800 vehicles that use partial or all electric power, as well as 1,250 recharging stations.<br /><br />"Oregon's project was unfortunately not selected for funding under this opportunity. We are currently trying to identify other sources of funds or other ways to accomplish the objectives of the project," said Oregon Business Development Department Clean Tech Industry Strategist Mark Brady.<br /><br />Source:<a bitly="BITLY_PROCESSED" href="http://www.mailtribune.com/apps/pbcs.dll/article?AID=/20091014/NEWS07/910140339/-1/NEWSMAP#STS=g0tnyukb.1le1">State loses on hybrid money | MailTribune.com</a>

Not Everyone Gets TARP Funds for Hybrids

With all the press releases from towns, counties and states that have gotten federal money to buy hybrids lately, it's interesting to no...

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Senator Kerry Introduces Green Taxis Act of 2009

<a bitly="BITLY_PROCESSED" href="http://hybridreview.blogspot.com/2009/08/boston-blocked-from-turning-taxis-into.html">Boston</a>, <a bitly="BITLY_PROCESSED" href="http://hybridreview.blogspot.com/2009/06/new-york-city-loses-again-in-bid-to.html">New York</a> and Seattle have all tried and failed to force their taxi fleets to go hybrid over the past couple of years. Each time, the local taxi fleet owners have challenged and beaten the local lawmakers ability to set rules about their fuel efficiency.<br /><br />Fleet owners don't want to change over because hybrid taxis are more expensive to purchase.  Drivers like hybrid taxis because they have to pay for the gas, which allows them to make more even when the fleet owners are allowed to charge more for driving them. <br /><br />Judges would tell the city officials their new rules would go against the Energy Policy and Conservation Act of 1975, which allows the federal government to set fuel economy standards.<br /><br />While states could petition for exemptions (see California et. al. working hard to do just that), local governments could not.<br /><br />Senator Kerry (D-MA) <a bitly="BITLY_PROCESSED" href="http://www.boston.com/news/nation/washington/articles/2009/10/02/us_bill_could_pave_way_for_hybrid_taxi_fleets/">has introduced a bill</a> (on behalf of Boston) to ammend that law. The ammendment would allow local governments to set fuel efficiency standards for taxicabs.<br /><br />The bill is being dubbed the Green Taxis Act of 2009. It is part of the overall climate change bill. It will allow local government would be allowed to set taxi fleet fuel efficiency based on their own needs and policies.<br /><br />"This legislation will help empower cities and towns across the nation, including Boston, to improve air quality, lower carbon emissions, and save cab drivers and passengers money," Kerry said in a prepared statement. "We know we must reinvent the way America uses energy and once again Boston is leading the way."<br /><br />Mayor Thomas M. Menino added "Hybrid taxis make sense for taxi drivers, for consumers, and for the health of all Bostonians."

Senator Kerry Introduces Green Taxis Act of 2009

Boston , New York and Seattle have all tried and failed to force their taxi fleets to go hybrid over the past couple of years. Each time, ...

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Cash For Clunkers Top 20

I know about how statistics can lie, but it seems that numbers can mislead just as badly. The government, when it released its numbers on the Cash for Clunkers program, kept touting the top 10 vehicles being sold. <br /><br />Too bad they didn't emphasize they were splitting up the two-wheel or four-wheel drive models. To be fair, the lists released did have FWD on them, but it's still misleading.<br /><br />The choice they made to split up FWD and AWD tended to keep any trucks, as opposed to cars that don't have the options, down the list. Well, the numbers were released and the Detroit Free Press put together the list for us to see.<br /><br />Top 20 models sold under the U.S. government’s cash-for-clunkers program, according to <a bitly="BITLY_PROCESSED" href="http://www.freep.com/article/20090921/BUSINESS01/90921033/1319/SUVs--pickups-among-best-sellers-under-clunker-deal">a Free Press analysis of data</a> released this weekend.<br /><ol><li>Toyota Corolla 29,488</li><li>Honda Civic 28,456</li><li>Toyota Camry 27,137</li><li>Ford Focus 22,388</li><li>Ford Escape 21,894</li><li>Honda CR-V 20,106</li><li>Hyundai Elantra 19,797</li><li>Chevrolet Cobalt 16,724</li><li>Chevrolet Silverado 16,330</li><li>Nissan Versa 16,300</li><li>Ford F150 16,263</li><li>Honda Accord 15,922</li><li>Nissan Altima 15,426</li><li>Toyota RAV4 15,255</li><li>Toyota Prius 15,013</li><li>Ford Fusion 13,415</li><li>Honda Fit 12,361</li><li>Nissan Sentra 12,158</li><li>Chevrolet Aveo 11,557</li><li>Toyota Tacoma 10,692 </li></ol>As you can see, the Prius, <a bitly="BITLY_PROCESSED" href="http://hybridreview.blogspot.com/2009/08/final-cash-for-clunkers-numbers.html">which the government had at number 7</a>, is actually number 15.  And the top 10 vehicles purchased using government money includes the Escape, CR-V, and Silverado.  And don't forget the F150 sitting at number 11.<br /><br />Fuel economy definitely went up for the trade-ins, although the long term impact of the program will probably be minimal from a national standpoint.  But it's little things like this that make you wonder why<a bitly="BITLY_PROCESSED" href="http://hybridreview.blogspot.com/2009/08/ap-claims-obama-will-not-release-cash.html"> they couldn't just release the numbers as the program was progressing</a>?

Cash For Clunkers Top 20

I know about how statistics can lie, but it seems that numbers can mislead just as badly. The government, when it released its numbers on t...

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Stimulus Funds for Diesel-Electric Hybrid Buses

Chicago and Albany will soon be getting hybrid buses, courtesy of the Stimulus package. <br /><br />Chicago is receiving another $3.5 million in funds to help purchase 20 diesel hybrid buses. The Capital District Transportation Authority (CDTA) in Albany, N.Y. had already received $2 million back in May. The overall cost is expected to reach $10.6 million.<br /><br />The Chicago Transit Authority (CTA) received and have already placed in service 58 hybrid buses. That brings their total up to 208 'articulated hybrid buses' in their fleet. $50 million (out of a total of $241 million in stimulus money) was used to buy the buses.<br /><br />The CTA expects to save over $7 million in parts, labor and fuel from their hybrid buses.<br /><br />According to the press release, the 60 foot buses can transport 125 riders and are 30 percent more fuel efficient and emit 60 percent fewer emissions. They are also replacing smaller buses, which could only transport 80 riders.<br /><br />The buses can be plugged in overnight to keep the batteries charged. The batteries also keep the auxiliary heater running, eliminating the need to idle buses for startup.

Stimulus Funds for Diesel-Electric Hybrid Buses

Chicago and Albany will soon be getting hybrid buses, courtesy of the Stimulus package. Chicago is receiving another $3.5 million in funds ...

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Automakers Promise Fuel Cell Vehicles by 2015

Filed under 'interesting but vague,' automakers released a joint statement promising electric vehicles with fuel cell development and market introduction through a Letter of Understanding (LoU).<br /><br />The automakers are Daimler, Ford, GM/Opel, Honda, Hyundai/Kia, Renault, Nissan and Toyota. "These companies have built up remarkable know-how in fuel cell technology and thus, the signing marks a major step towards the serial production of such locally emission-free vehicles."<br /><br />The automakers believe that from 2015, 'a quite significant number' of electric vehicles powered by fuel cells will be commercialized. Of course, the timeline could be even earlier, based on the individual automakers development.<br /><br />The whole statement is very vague and certainly hard to interpret. Some have pointed to the possible reduction in funding for fuel cell vehicle development as the impetus for the statement.

Automakers Promise Fuel Cell Vehicles by 2015

Filed under 'interesting but vague,' automakers released a joint statement promising electric vehicles with fuel cell development an...

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Hybrid Truck Research Bill

The house has passed a bill to create a grant program targeted at heavy duty hybrid trucks. The Senate has introduced a companion bill.<br /><br />"Hopefully we can get some movement on this measure this time around," said Paul Tonko , D-N.Y. "By enhancing the Department of Energy’s research program in heavy duty hybrid trucks, this bill draws much-needed focus to a very critical component of the transportation sector — that being commercial trucks."<br /><br />Source: <a bitly="BITLY_PROCESSED" href="http://www.cqpolitics.com/wmspage.cfm?docID=cqmidday-000003198657">CQ Politics | House Passes Bill to Encourage Hybrid Trucks</a><br /><br />$3 million a year would be set aside for the research program. The first phase would allow one year for the recipients to produce an advanced heavy-duty hybrid vehicle, while the second/third year would be used to produce 50 trucks.<br /><br />The heavy duty hybrids would have a gross weight of 14,000 - 33,000 pounds.

Hybrid Truck Research Bill

The house has passed a bill to create a grant program targeted at heavy duty hybrid trucks. The Senate has introduced a companion bill. ...

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Fed Handing Out Grants for Hybrids

Seattle <a href="http://blog.seattlepi.com/transportation/archives/177526.asp">received</a> $1.4 million in federal grant money to purchase 15 diesel electric hybrid trucks.  The money will also go towards equipping city-owned properties with electric charging stations.  $500,000 of the grant will go towards the electric charging station, with the rest being used to pay for the trucks.<br /><br />It's estimated the diesel hybrids will save more than 10,000 gallons of fuel annually.<br /><br /><a alt="Hybrid Electric School Bus" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi4WtP3ezq04P_0USe_x2Dc6Y2Yk5g3TM-zjaAkcNUYRHUdCwJ9CxX2IhTPYHTp6jjMCNY85kpdskVXHmH0FvPC4h7dhfDBON-GM2ESJs32nZd19Q8NV59enapYNCUoWKlowtWmv0l7LV4/s1600-h/hybrid-school-bus-sign.gif" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;" title="Hybrid Electric School Bus"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi4WtP3ezq04P_0USe_x2Dc6Y2Yk5g3TM-zjaAkcNUYRHUdCwJ9CxX2IhTPYHTp6jjMCNY85kpdskVXHmH0FvPC4h7dhfDBON-GM2ESJs32nZd19Q8NV59enapYNCUoWKlowtWmv0l7LV4/s320/hybrid-school-bus-sign.gif" /></a>The Electric Transportation Engineering Corporation (eTec) is line to get $20 million in federal grant money, which will be used to install 2,550 charging systems for electric vehicles.<br /><br /><br />Maryland <a href="http://www.baltimoresun.com/features/green/bal-md.gr.hybrid27aug27,0,6850469.story">will be buying</a> 150 hybrid vehicles with $5.9 million in federal stimulus money.  The hybrids will be used by private companies.  Aramark, Efficiency Enterprises, Nestle Waters of North America, Sysco Corp. and UPS who are all part of the Maryland Hybrid Truck Good Movement Initiative.  The new fleets will cost $14.7 million, so the companies are paying almost two-thirds of the cost.<br /><br />Aramark alone is <a href="http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20090827005502&newsLang=en">expecting </a>to purchase 50 hybrid vehicles.<br /><br />The hybrids are estimated at reducing fuel consumption by 460,000 gallons a year.<br /><br />The Kentucky Clean Fuels Coalition <a href="http://www.kentucky.com/471/story/910808.html">will use</a> $12.9 million in federal stimulus funds to purchase hybrid electric school buses.  The money is coming through the Dept of Energy, which estimates the new buses will save 122,000 gallons of petroleum a year.

Fed Handing Out Grants for Hybrids

Seattle received $1.4 million in federal grant money to purchase 15 diesel electric hybrid trucks.  The money will also go towards equippin...

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Nissan Laughs at Chevy Volt 230 MPG Rating

Nissan, either to prove a point or to just steal GM's thunder, pointed out <a href="http://hybridreview.blogspot.com/2009/08/nissan-leaf.html">the Nissan Leaf</a>, their new electric vehicle due out in 2010, will get 367 mpg by the EPA rating.<br /><br />Too bad they're not going to use any gasoline.<br /><br />In the meantime, the EPA won't back up <a href="http://hybridreview.blogspot.com/2009/08/chevy-volt-gets-epa-rating-of-230-mpg.html">GM's claim to 230 mpg</a> since they haven't tested the Volt and won't for a while.<br /><br />Of course, <a href="http://hybridreview.blogspot.com/2009/05/electric-car-range-issues.html">both numbers are ridiculous</a> on the face of it. Rating an electric vehicle (which won't use any gasoline) or a plug-in hybrid (or E-REV which <i>may</i> never use any gasoline) for 230 mpg or 367 mpg is foolish in the extreme. <br /><br />The EPA needs to come up with a different rating system for the plug-in and electric vehicles that are coming. Whether it's 230, 367, or 99,999 mpg, they still aren't using fuel the way they used to and those numbers tell you absolutely nothing about what you're going to get from the vehicle.  How many people are going to buy the Chevy Volt and be really disappointed once they realize their car really gets only 40 mpg or less once the gas engine kicks in?

Nissan Laughs at Chevy Volt 230 MPG Rating

Nissan, either to prove a point or to just steal GM's thunder, pointed out the Nissan Leaf , their new electric vehicle due out in 2010,...

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Senate Passes Funding for Cash for Clunkers

As expected, the Senate has passed the funding bill for the Cash for Clunkers program. For another $2 billion, the CARS program is expected to last through September. President Obama is expected to sign the bill ASAP.<br /><br />The $2 billion is being transferred out of the money set aside for the Innovative Technology Loan Guarantee Program, which was part of the American Recovery and Reinvestment Act of 2009 (Stimulus Act).<br /><br />I would expect sales will slow after the initial rush, although dealers and the government are still working to clear all the claims already made. So it's hard to guess how long the CARS program will take to run through the next $2 billion. It only took a week to run through the first billion.<br /><br />The Senate vote 60-37 to pass the bill, after stripping out the seven amendments attached by some of the Senators. If they hadn't stripped out the amendments, the House would have had to get together with the Senate to work out the differences. Since the House was already in recess, that would have delayed it until September. Which probably would have ended the program, as the Obama administration had already warned the program was out of money and would probably be done on Friday without extra funding.<br /><br />The beginning text of the bill:<br /><i>For an additional amount for `Consumer Assistance to Recycle and Save Program' to carry out the Consumer Assistance to Recycle and Save Program established by the Consumer Assistance to Recycle and Save Act of 2009 (title XIII of Public Law 111-32), not to exceed $2,000,000,000, to remain available until September 30, 2010: Provided, That such amount shall be available for such purpose only to the extent directed by the President, and shall be derived by transfer from the amount made available for `Department of Energy--Energy Programs--Title 17--Innovative Technology Loan Guarantee Program' in title IV of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5): Provided further, That the amount under this heading is designated as an emergency requirement and necessary to meet emergency needs pursuant to sections 403 and 423(b) of S. Con. Res. 13 (111th Congress), the concurrent resolution on the budget for fiscal year 2010.</i>

Senate Passes Funding for Cash for Clunkers

As expected, the Senate has passed the funding bill for the Cash for Clunkers program. For another $2 billion, the CARS program is expected...

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