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.
The Energy Department is projecting that domestic gasoline consumption will decline by about 190,000 barrels a day this year. Meanwhile, global oil demand is projected to rise by 1.2 million barrels per day. Where does that leave us?
In a personality shift that would make Madonna jealous, the hybrid gas-electric vehicle is being transformed from ecoweenie-mobile to lean green crime-fighting machine. Law enforcement departments across the country are considering the use of hybrid vehicles as police cruisers.
Facing pressure to improve efficiency and reduce emissions, the auto industry is responding by taking a page out of Europe’s playbook—where smaller cars and smaller engines rule, but driving fun has not been banished from the equation. Smaller yet powerful engines are possible due to advances in supercharging, turbocharging, and direct injection.
Paul Roberts, author of The End of Oil, calls the notion of energy independence a “populist charade masquerading as energy strategy?” In the latest issue of Mother Jones magazine, Roberts write that energy independence is primarily being used as a political trick by ethanol cheerleaders, electric utilities pushing coal and nuclear, and supporters of drilling in the Arctic Wildlife Refuge. Roberts delivers a reality check: We don’t stand a chance of quickly becoming energy independent.
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.
April sales figures for cars and trucks sent a clear and resounding message to the auto industry: Make smaller more fuel-efficient cars or die. “It’s easily the most dramatic segment shift I have witnessed in the market in my 31 years here,” said George Pipas, chief sales analyst for the Ford Motor Company. The New York Times warned, “Automakers ignore the move to smaller vehicles at their own peril.”
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.
After speaking with a “well-placed Toyota source,” Edmunds’s Auto Observer is reporting a few details about the third-generation Prius, due out in 2009. The quintessential hybrid will be bigger, faster, and more fuel-efficient.
