Toyota Prius Tops May Auto Sales in Japan; Hybrid Sales Soar in Japan, Despite Downturn

June 5, 2009 at 10:52 am
This post is sponsored by LemonFree.com 

(Source:  Wall Street Journal, Green Car Congress & Tree Hugger)

Jadaprius

Image Courtesy: Green Car Congress - Prius sales in Japan by month since January 2007. Data: JADA.

Last month (May 2009), the Toyota Prius was the top selling model in the world’s second-largest economy; the rival Honda Insight hybrid came in third, according to new car sales rankings—excluding minicars with displacements of less than 660 cc—released by the Japan Automobile Dealers Association (JADA).   

In April HondaScryve Corporate Social Responsibility Rating was quite happy to report that its new Insight hybrid was both the best selling car in Japan for that month (outselling the Toyota Priusand the first hybrid car to have that honor with 10,481 units. (Earlier post.) In May, the Insight dropped to third place with 8,183 units, behind the Prius and the Honda Fit, with 8,859 units.Toyota’s May performance was all the more surprising, since the third-generation Prius didn’t go on sale until May 18.  

The Prius posted 10,915 units in May, in Japan more than twice the 5,079 units sold in May 2008 and compared to 1,952 units in April 2009, according to the JADA data. (In the US, Toyota reported 10,091 units of the Prius sold in May.)

Why are these fuel-sippers speeding out of Japanese dealer lots, when sales of the more-expensive hybrid cars are still in the doldrums in the U.S.,  Japan’s economy isn’t doing any better—indeed, its first-quarter contraction was the biggest since World War II.

There are several possible explanations—beyond the fact that both Toyota and Honda have cut prices to make hybrids a little less niche and a little more mass market. First, generous government incentives: Japan’s stimulus package included a range of tax breaks for buyers of hybrid (and electric) vehicles which can knock thousands of dollars off the price tag. Japan has tougher mileage standards—but that affects what kind of cars manufacturers turn out, not what kind of cars consumers flock to. One huge difference is the price of gasoline—which automatically makes the hybrids more attractive, especially in a recession. Japan, like many European countries, slaps a hefty national tax on gas. Right now, Japanese pump prices work out to $4.61 a gallon. That compares to a U.S. national average of about $2.50 a gallon.

Over 1.8 Million new and used cars

‘Cash for Clunkers’ stalls in Senate; California’s Feinstein clashes with carmakers

June 4, 2009 at 12:17 pm

(Source:  The Detroit News & SFGate.com)

Supporters have dropped an attempt to add “cash for clunkers” legislation to a tobacco regulation bill now before the Senate, a setback in efforts to boost car sales with federal subsidies.

“There are technical details to work out and the senator continues to look for a vehicle to pass this very important piece of legislation,” said Brad Carroll, a spokesman for Sen. Debbie Stabenow, a co-sponsor of the bill.

Two congressional aides said the measure was derailed by objections from the Senate Appropriations Committee to using money from the $787 billion economic stimulus package for the measure, which would offer up to $4,500 credits for consumers trading in older, low-gas-mileage vehicles.

In January, Sen. Dianne Feinstein, D-Calif., introduced a bill, S247, that would give vouchers to people who turn in a car or truck that gets 15 or fewer miles per gallon to a dealer that scraps it.

Rep. Betty Sutton, D-Ohio, introduced one in the House, HR1550. A compromise version was attached to the 900-page energy bill that was passed last month by the House Energy and Commerce Committee.

Sen. Debbie Stabenow, D-Mich., introduced an almost identical one in the Senate. Her bill, S1135, would provide vouchers of $3,500 or $4,500, depending on the difference in gas mileage between the clunker and the new vehicle. The vouchers could only be used to buy or lease new vehicles, not for used vehicles or mass transit.

Environmentalists oppose the two industry-supported bills because they would provide vouchers to people who scrap more fuel-efficient vehicles (18 mpg or less) than under the Feinstein proposal (15 mpg or less).

Industry officials said they were optimistic the dispute could be resolved and that the plan — which has White House backing — would win passage, as a stand-alone bill or attached to other legislation.  An identical cash for clunkers bill in the House has also failed.  So far, legislators have been unsuccessful in separating that legislation from a massive energy and climate bill that could take months to finalize.

Last month, Sen. Feinstein proposed an alternative that is less stringent than her original bill but stricter than Stabenow’s. For details, see links.sfgate.com/ZHHC.

It’s not clear whether the Senate will back the Stabenow bill, the new Feinstein approach or a compromise.

“Fiscal conservatives and environmentalists oppose the more permissive Stabenow bill as an expensive subsidy for the ailing auto industry, while union and manufacturing interests oppose the stricter Feinstein approach, which would likely favor fuel-efficient imported vehicles,” said Benjamin Salisbury, an analyst with FBR Capital Markets, in a report.

“The Senate could vote on both amendments and add the most popular one to unrelated legislation giving the Food and Drug Administration regulatory authority over tobacco products,” Salisbury wrote.

Idea likely to stick around

That didn’t happen Wednesday, as many expected. But with President Obama in favor of cash for clunkers, the idea is not likely to die.

Becker hopes Congress will not rush into passing a bill without enough research and debate to determine how much the program will cost and who will benefit most. “Somebody might come along and do clunker dating,” matching up people who want to buy new cars with people who have clunkers, he says.

He adds that Germany started a 1.5 billion euro cash-for-clunkers program this year and it has already swelled into a 5 billion euro program.

Consumers waiting to buy a new car until a bill passes should first figure out if their existing car would qualify under the scrapping plan. If so, the next question is whether the voucher would be worth more than the price they would get if they sold or traded in their car. If so, they should figure out whether the new car they want to buy would qualify. With so many unknowns remaining, it’s hard to reach a conclusion.

South Korea to Boost Vehicle Fuel Economy Standards

June 4, 2009 at 11:32 am

(Source: Green Car Congress & R744.com)

 South Korea plans to raise the fuel economy of locally-made vehicles to surpass future requirements being by the US and Japan, according to the Ministry of Knowledge Economy (MKE). Korea’s fuel efficiency standards are already slated to increase 16.5% in 2012 from the current levels. 

New passenger cars sold within the country in 2008 ran an average of 11.47 kilometers per liter of fuel (27 mpg US, 8.7 L/100km)—up from 11.04 km/L (26 mpg US, 9.1 L/100km) recorded in 2007.

South Korea enacted fuel economy standards in 2006 for domestic cars and in 2009 for imported cars with sales of less than 10,000 vehicles. Companies manufacturing or importing more than 10,000 vehicles per year are subject to US CAFE standards.  Standards as strict as those of advanced countries are likely to be in place by 2015 and 2020, MKE said.More importantly, a shift in purchasing habits to favor greener and more fuel-efficient vehicles will put Korea on the right path to the realization of its national vision—low carbon, green growth.

At present, Korean standards are at 12.4 km/l (29 mpg U.S.) for vehicles with engine displacements of 1.5 litres or less, and 9.6 km/l (22.6 mpg) for those above 1.5 litres. However, as a report from the International Council on Clean Transportation (ICCT) found last year, South Korea is the only nation in the world where fleet average fuel economy is projected to decline over the next five years due to a sharp increase of large engine sized cars. A 15% increase would thus raise the standards to about 14.3 l/km (33.6 mpg) and 11 km/l (25.9 mpg) respectively by 2012. By comparison, the U.S. fuel economy standards have been raised to 35 mpg by 2020. 

South Korea first developing country to set GHG emission targets under Kyoto
South Korea could become the first nation not obliged by the Kyoto Protocol to set a national GHG emissions target. The country will thus freeze its greenhouse gas (GHG) emissions at 2005 levels, or 591 million tons of carbon dioxide, over the next five years, Environment Minister Lee Maan-Ee announced on 21 March. Korea’s first governmental scheme to tackle global warming will encourage the development of environmentally friendly vehicles, and initiate nationwide energy-saving campaigns in non-manufacturing sectors including households and commercial buildings. The freeze of GHG emissions until 2012 will actually be a small reduction as South Korea’s emissions have increased by an average of 2.2 percent annually in recent years.

The unprecedented move follows the United Nations climate change conference in Bali last December, where South Korea pledged to take concrete steps to curb emissions along with 130 other countries. Currently, South Korea is classified as a developing country not facing any emission targets under the Kyoto Protocol. However, as it is likely to be given the status of a developed country in a post-Kyoto agreement after 2012, the latest plan is seen by many as a preparation for even tougher targets in the future.

In a Sluggish Japan, Prius Sales Boom

May 31, 2009 at 12:00 pm

(Source: Time & Green Car Congress)

Orders in Japan for Toyota’s new Prius hybrid have topped a booming 110,000, a major dealership chain said Saturday, in what is turning out to be a rare bright spot in the gloomy auto market.

The third-generation Prius officially rolled out in Japan just two weeks ago. But dealers are already flooded with orders, including some placed weeks in advance, according to the dealership. (See TIME’s photos of General Motors factory-scapes)

Toyota Motor Corp., the world’s biggest automaker, said two weeks ago that it received 80,000 advance orders, and has not updated that number.

But the Toyota Tokyo Corolla dealer said Saturday that nationwide orders at Toyota dealerships in Japan, including those of rivals, have soared to 110,000. Dealers tally their customer orders differently from the way manufacturers do.

But any way you slice it, the Prius is a hit. Toyota has set its monthly sales target for Japan at 10,000 new Prius cars — a figure that should make it the top-selling car in the country.

As the orders stack up, the company looks on track to meet or even surpass its goal and take that crown — an astonishing accomplishment for a hybrid, although the Prius is fighting competition from another new hybrid, Honda Motor Co.’s Insight.

Hybrids are in demand partly because the Japanese government began offering tax exemptions for the cars to encourage their sales earlier this year.

The overall Japanese auto market has been languishing for years, with vehicle sales falling to their lowest level in more than three decades last year. Demand has worsened since the U.S. financial crisis sent this nation into a recession.  According to Green Car Congress, the Nikkei estimates that Japan passenger car production in fiscal 2009 will likely decrease to 1979 levels, mostly due to a plunge in exports. The projection, which was compiled based on automakers’ data and interviews with company officials, calls for the eight Japanese passenger car firms to assemble 8.21 million vehicles in the year ending in March 2010, 14% fewer than last year and the second consecutive annual decline, following a 15% fall in fiscal 2008.

U.S. Energy Secretary Steven Chu rules out raising petrol prices to European levels through increased taxes or regulation; says politically infeasible

May 28, 2009 at 11:10 pm

(Source: Financial Times)

Reducing America’s reliance on oil by raising petrol prices to European levels through increased taxes or regulation is not politically feasible, says Steven Chu, US secretary of energy.

The admission comes as Congress considers a cap- and-trade system that opponents say will substantially increase petrol prices just as oil prices soar to their highest level in six months.

In the past Mr Chu, a Nobel laureate, has argued that, if the US wanted to reduce its carbon emissions, policymakers would have to find a way to increase petrol prices to levels in Europe. But in an interview on Wednesday with the Financial Times, Mr Chu said: “At this moment, let me be frank, it is not politically feasible.”

Higher petrol prices are likely to be one of the biggest potential sticking points ofPresident Barack Obama’s cap-and-trade system when the bill moves from the Democrat-controlled House of Representatives to the more conservative Senate late this year.

Mr Chu’s move against using taxes to raise US petrol prices is likely to frustrate environmental advocates who believe that the only way seriously to change Americans’ consumption habits is through higher prices.

Unlike Europe, the US hardly taxes its fuel, leading to pump prices that are often one third of those in Europe and to the average American consuming double the amount of oil of his European counterpart.

But Mr Chu warns that Americans will have to learn to live with higher petrol prices even if Washington does not enact policy that boosts them.

“Regardless of what one does in any sort of taxation, I believe that prices of oil and natural gas will go up in the coming decades,” he said, adding: “They will naturally go up just because of fundamental supply and demand issues.”

Mr Chu was adamant that a cap-and-trade system would be necessary to cut emissions. “We need to begin to put a price on carbon. We need to ratchet down the carbon,” he said.

The bill currently under consideration in Congress would reduce emissions by about 2 per cent a year.

A key question, however, was “how to help the US make the transition”, he said. Many states are heavily dependent on coal, or have energy-intensive industries, and the administration will need to win over lawmakers from these states to have a chance of passing the legislation.

Click here to read the entire article.

British government gets a shock over its electric vehicle plan

May 28, 2009 at 10:35 pm

(Source: Autobloggreen & Royal Automobile Club Foundation)

A new study by the Royal Automobile Club Foundation found that as many as 6.75 million British drivers are thinking about or could consider buying an electric vehicle – once they become available, of course. RAC surveyed 1,000 motorists over two weekends this month and asked the question: “Would you consider or are you planning on purchasing an electric car within the next five years?” Twenty percent picked either “Yes, would consider” or “Yes, planning on purchasing an electric car.” We’re right there with you, says the UK government, which will offer incentives worth up to £5,000 for EVs starting in 2011.

Also, the RAC points out that 20 percent of 33.8 million drivers means there could be a lot of people who want but can’t buy an EV. They say, “The RAC Foundation has discovered that by the Government’s own reckoning electric vehicles won’t be available on the mass market until at least 2017, leaving millions of potential buyers frustrated.”

Commenting on the findings, the director of the RAC Foundation Professor Stephen Glaister had the following words:

  • “What the Government is in danger of doing is putting the cart before the horse. It is actively promoting the purchase of electric vehicles long before there is any chance of manufacturers making them widely available.”
  • “It has gone out of its way to encourage people to make green choices, yet these choices are not yet realistic.”
  • “Ministers’ thinking on green technology is all over the place. They talk of incentives of up to £5,000 for prospective buyers of electric cars from 2011. Yet at that stage there will be almost nothing in the showroom for people to purchase.”
  • “The RAC Foundation fully supports the introduction of green vehicles. But electric cars are not the short-term solution. What the Government should be doing is improving the road network and encouraging manufacturers to refine existing technology. That means increasing road capacity to cut congestion and CO2 emissions; focussing on producing leaner petrol and diesel engines; and making smaller and lighter cars.”
Here is the RAC press release:

Electric Car Infrastructure Trials: Some Progress, Long Road Ahead

May 26, 2009 at 11:47 am

(Source: earth2tech via Reuters)

Cities have thrown down the gauntlet for electric car charging in recent months, and utilities are increasingly eager to tout infrastructure efforts. Among automakers, the Renault-Nissan Alliance has been out in front working to coordinate governments, utilities and charge station companies to develop regional networks of hardware and services that drivers will need to make the automakers’ upcoming electric cars practical for daily use. But what steps follow a big partnership announcement, after a utility, a vendor or an automaker says it’s done a deal to ready the power grid for an EV rollout?

For at least one of the 26 partners that the Renault-Nissan Alliance has lined up so far — utility San Diego Gas & Electric — the vision for how to support plug-in vehicles at even a pilot scale is just beginning to take shape. In an interview last week, SDG&E’s Clean Transportation manager, Bill Zobel, gave us a glimpse of what the utility has accomplished so far, and what it has in the works.

At this point, Zobel said, the company is still in the process of assembling its internal team for the project. When that group is fully established next month, it will help develop milestones and oversee outreach to customers and “integration across the broader utility.” By September, SDG&E aims to have commitments from fleet operators in the San Diego area to trial at least 100 electric cars coming from Nissan next year. Zobel said the University of California, San Diego is “ecstatic” about the program. The city and county of San Diego, several nearby cities and the U.S. military may also sign up to try the vehicles. SDG&E plans to have at least 15 of the cars in its own fleet.

SDG&E has requested stimulus funds from both the state of California and the federal government (Zobel wouldn’t tell us how much) to help it expand the project more quickly than it might without the funds.   

For the long term, SDG&E is thinking about how to educate EV buyers about “circuitry, wiring and permitting requirements,” and other aspects of EV ownership. Typically when you buy a car now, Zobel said, “there’s instant gratification.” Put your money down, and you have a vehicle that you can refuel at any gas station. Pretty soon, however, the utility, car dealers, the local government and drivers will need to “understand the requirements for an owner walking off the lot with a plug-in car.” When electric cars hit California in the 1990s with GM’s now famously “killed” EV1, that understanding was missing, Zobel said. “We’ll be much more prepared than we were last time.”

Click here to read the entire article.

Want to save $1420/year & cut 4620 pounds of emissions? Try Carbuddy.com – Carpooling service helps manage costs while matching carpool partners for your commute

May 25, 2009 at 10:47 am

(Source: Autobloggreen)

With rising gas prices and often limited mass transit options in the United States, car pooling is often an excellent option for many urban commuters. However, finding people to car pool with can be problematic as can sharing costs fairly. The “creepiness” factor has often played against the willingness of many interested commuters to consider this as a viable option, at least until now.

Image Courtesy: Carbuddy

That’s where CarBuddy.com comes into play. When you sign up with CarBuddy, you enter information about your start and end points and whether you prefer to ride, drive or both. CarBuddy matches you up with ride partners that you can select from.

Participants also provide information about the car being driven and CarBuddy calculates fair costs for the trip being taken. The costs are updated weekly and based on more than fuel prices. CarBuddy also factors in wear and tear and depreciation on the car being driven. Based on distance traveled, a cost is calculated for each participant and passengers are charged each week and drivers reimbursed. CarBuddy takes 8 percent off the top of the transaction to pay for its services. Users can cancel at anytime or even switch car pool partners if they want.

The company will also pay for a cab service up to four times a year in the event a passenger gets stranded.

Lead is bad? Think again – Research shows pollution from leaded gasoline might have reduced the impact of greenhouse gases

May 24, 2009 at 7:40 pm

(Source:  Autobloggreen)

Before you think we’ve gone crazy, let’s make clear that this is a post about a serious report published in Nature Geoscience. According to this report, lead that was expelled to the atmosphere through exhaust gases stimulated the growth of clouds. Larger clouds imply less solar radiation, which has a definitive cool effect. In this EU funded study, investigators from Switzerland, Germany and the U.S. “captured” clouds on some mountains and compared them to artificial ones created in laboratories. Their conclusion: if the air has some lead suspended in it, temperature and humidity didn’t pay as significant a role in cloud formation.

The Notre-Planete observed “the major part of atmospheric lead comes from human activities, the main sources are coal combustion, gasoline lead, small aircraft flying at the altitude where the clouds form and construction that release lead from ground.

Emissions of greenhouse gases are the main cause of global warming, but the emission of small particles of substances such as lead may have the opposite effect by interacting with water vapor in the atmosphere to trigger the formation of clouds. Depending on their altitude and the thickness of the clouds can reflect sunlight into space or trap the heat radiated by the Earth.

What’s interesting is that their models show that between 1970 and 1980, before unleaded gasoline became common, most dust on the Earth’s suface had lead particles in it. This might have helped more clouds get created, and that reduced the impact of greenhouse gases accumulation in the atmosphere.  Though research has proved time and again the ill effects of lead on human health, it is surprising to see the “side effect” that has helpedin guarding the environment.

Suzuki gets ready to deliver its hydrogen fuel cell motorcycle

May 24, 2009 at 7:21 pm

(Source: Autobloggreen & Gizmag) & Mc24.no)

It’s been a little while since we last heard from Suzuki regarding its planned hydrogen fuel cell motorcycle, Crosscage, but apparently the Japanese company has been hard at work getting the machine ready for production. According to Ivar Kvadsheim over at MC24.no, teams from both Suzuki and Intelligent Energy were present at the EVS24 event in Stavanger, Norway, with their fuel cell-powered machines.

Image Courtesy: Autobloggreen

In the ENV and Cross Cage used tl cell to produce electricity to recharge the batteries, which in turn drive electric motor. On the prototype cell gives a power of 1 kW and delivers power to a motor that gives 8 horsepower. The new cell will be used in the production models are lighter and more efficient and delivers 1.8 kW, almost double the output. 

Over the last few years, Intelligent Energy has reportedly managed to increase the output of its fuel cell from 1 kW to 1.8 kW, and both its ENV bike and Suzuki Crosscage will use this same power source. That’s great, but the real issue holding up production is the bike’s hydrogen storage tank. It seems the two companies were planning to use a tank from BMW, but later found out that unit was only approved for automotive use and couldn’t be legally used in a motorcycle.  So we have to go through the entire process to create and get approved a new container, “explains Dennis Hayter of Intelligent Energy. 

This process will probably take about four months. Then both Suzuki and Intelligent Energy to run a few months of testing with an approved container, before they can be put into regular production.

It is expected that both ENV and Cross Cage arrive for sale in the course of next year, probably already in the spring. Bikes will have a range of 160 miles and Hayter estimates a price of around 8000 Euro.

According to Gizmag, Suzuki’s Crosscage will feature a single-sided suspension front AND rear. The brushless electric motor’s mounted inline with the rear wheel, and looks-wise it’s so far out there that it’s on its way back again. It was rumoured that Bridgestone’s even developed a special futuristic-looking tyre to match the bike’s oddly tesselated discs.