The buzz around electric sports-car-maker Tesla Motors is sparking something akin to what happened in California 150 years ago—this time the rush is toward plug-in electric and hybrid vehicles. Undaunted by Tesla’s difficulties in delivering on early promises, small companies are charging forward with a “if they can build a car, why not us” attitude. Many claim that 2010 will be their year.
According to the Center for Responsive Politics, the automobile industry spent a record $70.3 million lobbying Washington in 2007. The $70.3 million figure represents nearly a 20 percent increase over 2006 numbers, and comes in a year when the industry faced the most dramatic increase in fuel efficiency standards in years.
Ford plans to use diesel engine technology to keep its big trucks competitive with rivals using a mix of hybrids and diesels. The auto industry’s shift to greater efficiency is occurring throughout entire product lines—including the largest vehicles on the market.
One out of every eight American carbuyers opted for a full-sized pickup last year, but as fuel costs rise and CAFE standards tighten, this segment will shrink unless the pickup evolves. That means hybrid pickup trucks are on the way.
Despite a big marketing push, hybrid sales for General Motors have been extremely low in the first quarter of 2008. Even if GM were to increase production and distribution of its hybrids, it’s unclear if the company has a winning formula for its hybrids.
Volkswagen grabbed headlines when it unveiled the diesel-electric VW Golf Hybrid—a vehicle that promises 70 miles to the gallon—at the 2008 Geneva Motor Show. But based on candid talk from German engineers, Volkswagen, BMW and Porsche are not serious about hybrids. Currently, there is not a single German-made hybrid available to American car buyers.
Later this month, General Motors will begin real-world testing a fleet of Chevrolet Malibus outfitted with lithium ion battery technology—as part of a push to bring the Chevrolet Volt concept vehicle to market.
When Jim Press was the top executive for Toyota USA, he said that the Japanese government never directly aided the company in the development of the Toyota Prius. Now, as president of Chrysler, he says that the Prius had 100 percent government backing. Why would Mr. Press flip-flop?
Ad campaigns from Ford and General Motors are increasing interest in hybrids. But the companies are not producing enough hybrid vehicles to meet customer demand. Ford and GM representatives point to lack of manufacturing capacity and insufficient supply of hybrid batteries. The result is high dealer markup for hybrid SUVs, according to a report from National Public Radio.
Enjoying the success of the Chevrolet Spark, a small $7,000 car for India, GM now plans a second small car offering. The big global push toward small and very affordable has been influenced by the $2,500 Tata Nano.