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3 MILLION SMALL CARS TO BE SOLD IN ‘08
August 14, 2008: If your Hummer or Expedition seems even more ridiculously out of scale on the road today, there's a reason. High gas prices are making 2008 a banner year for small car sales, according to USA Today. Sales of small cars this year may hit a level not seen since the 1980s. Ford and GM are saying small car sales may reach 3 million this year, a strong increase of more than 10 percent from last year. We look forward to the trend continuing, which will ease our dependence on oil and help decrease emissions which contribute to global warming ... Diesel fuel from "e. coli poop"? In the annals of unusual sources for alternative fuels, this is one for the records. Scientists are using a genetically-altered form of the e. coli to create diesel fuel from the bacteria's waste. The re-engineered bacteria are fed plant material and their poo yields diesel fuel. Although it may be a while before it can be produced in a large enough quantities to make a dent in our demand, it's promising to see a focus on plant material that is not going to drive up the cost of an edible food stuff, such as corn ... And if you are looking to buy a new vehicle and are interested in small cars and hybrids that get you the most bang for your buck, check out this list from Cars.com. It zeroes in on the top-10 gas-only vehicles and the top five hybrids for penny pinchers ...
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OIL PRICES DOWN ... FOR HOW LONG?
August 7, 2008: You can forgive American motorists for being skeptical that the recent dip in oil prices will last for very long. Even with the national average for unleaded regular down to $3.87 -- the lowest price in 11 weeks -- gas prices are still at extremely high levels. Oil may down about 30 bucks a barrel from the record of $147.27 on July 11th, but all bets are off if another major event, such as attack by Israel on Iran, shakes up world markets again. Translation: $4 gasoline will be back soon enough, with a $5-a-gallon average price not far behind it ... The folks at Sloan Auto Lab are now on the same page as 40MPG.org! "We have concluded that a 30ᇆ% reduction in fuel consumption is feasible over the next 30 years. In the short-term, this will come as a result of improved gasoline and diesel engines and transmissions, gasoline hybrids, and reductions in vehicle weight and drag." ... We are intrigued by reports of the new "ECO Pedal" from Nissan that will calculate the most efficient rate of acceleration and then push back as lead-foot drivers try to waste gasoline. Savings of 5-10 percent in fuel efficiency are claimed for this technological advance ... Looking for 40 mpg and planning to spend on the low side of $10,000 to get it? It's not impossible, according to Consumer Reports, which reports that you can snap up a used 2000 Honda Insight (51 mpg) or a 2001-2002 Toyota Prius (42 mpg) for $10,000 or less ...
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WHY LOW-MPG DETROIT WON’T GET A BAILOUT
July 31, 2008: With GM, Ford and Chrysler closing plants, laying off workers and cutting expenses as sales number continue to drop, lawmakers from Michigan are trying to get the automakers $27 billion in federal aid over the next five years. Of course, if they had paid attention to the handwriting on the wall and started focusing on alternative fuel technologies and manufacturing smaller cars several years ago, they would not be in the bind they are now. As George Magliano, an analyst with Global Insight Inc., points out in a Cox News story: "Providing low-interest loans could help domestic automakers survive because they now have very poor credit ratings, making it more expensive for them to borrow and invest in new technologies. Still, Magliano doubts Congress will offer such help. If he had to guess the outcome, 'I would bet against it,' he said. 'The industry just doesn't have the political clout it used to have.' Automakers are getting a cold shoulder because 'there is a feeling the industry brought on its problems itself by staying with big trucks for too long' rather than moving towards more fuel-efficient vehicles, he said." Exactly! ... Here's an eye-opening stat: The U.S. Federal Highway Administration is now reporting that Americans drive 9.6 billion fewer miles in May 2008 ... the biggest drop in 66 years. ... And - big surprise! - Toyota had the highest Corporate Average Fuel Economy (CAFE) for any car line sold in the U.S. for the 2007 model year. Honda and Hyundai were next in line, with domestic automakers GM, Ford and Chrysler much further down the list ...
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VW JETTA TDI CLEAN DIESEL: NEXT UP FOR DEALER PRICE GOUGING?
July 25, 2008: We wonder - is this the next high-MPG car to which auto dealers will be tacking on a premium in order to gouge consumers? There has been a lot of news this week about the soon-to-be-released 2009 Volkswagen Jetta TDI clean diesel. A reviewer at the Hartford Courant concluded: "Here's my bottom-line take on it: This is the car that will probably end up being the most affordable and most economical diesel available in the coming year. Clean and green, the new Jetta TDI should make converts of even the most stubborn diesel doubters. It is hard not to be smitten by its comfort, its performance - and real-world economy results that trounce the EPA estimates. Interested parties should get in line now." Making the TDI even more appealing: it will be eligible for a $1,300 tax credit from the IRS under the Advanced Lean Burn Technology Motor Vehicle income tax credit. ... Does a car company only have to put out green vehicles to get credit for being environmentally-friendly or can additional activities get them the sought-after green approval? We've talked before about how Subaru went greener by achieving no-landfill status. Now it looks like, in addition to developing electric vehicles, Nissan is also trying to be greener than green at its headquarters in Franklin, Tenn. ... And the BBB is issuing a warning to consumers: Scammers are ramping up claims that they have just the right device or additive to supercharge your fuel economy. Just remember: if it sounds too good to be true, it probably is ...
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BEST CASE FOR HIGHER MPG: NO GAS PRICE FIX
July 18, 2008: What's the best argument for the highest possible MPG standard right now? Experts agree: There is no easy gas price fix. U.S. Senate Republicans and Democrats gathered for a one day energy summit this week and heard from two world renowned experts on global energy that there is no easy quick fix to the high gas prices being suffered by Americans. As you may expect, this was not what they wanted to hear. As Fox News reports: "Sky high gas prices are not caused by any one reason, but rather a complex puzzle of events that are all interconnected. ... Dr. Dan Yergin and Roger Diwan were pushed and pulled in all directions, as each senator tried to get either expert to provide information that gave credence to their cause. Yergin, a Pulitzer prize-winning author and chairman of Cambridge Energy Research Associates, implored members not to look for 'either, or' solutions. But that was not what most had in mind. Diwan, an energy markets expert, urged members to look at a constantly changing range of connected events. ... Yergin outlined what he saw as the reasons for sky high gas prices: speculation, the weak dollar, geopolitics or volatile world events, like Iran's nuclear ambitions, and a 'shortage psychology.'" ... Massive subsidies from the U.S. federal government will be required to make hydrogen fuel cell vehicles a large part of our transportation future, according to a report from the National Research Council released this week. In order to make hydrogen vehicles cost competitive with conventional cars and truck, subsidies totaling $55 billion over the next 15 years would be required. If the investment were made and number of hydrogen vehicles were to increase to nearly 60 million by 2035 and to 200 million by 2050, U.S. oil consumption from transportation could be reduced by 60 to 70 percent. Gee, wouldn't it just be cheaper to buy everyone one of those James Bond jetpacks? ... A recent piece from Huffington Post begs the question - are the Detroit Three making any relevant cars or trucks today? Good question ...
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STICKERING IT TO GLOBAL WARMING
July 10, 2008: Look for this idea to catch on in other states: Beginning in 2009, every vehicle sold in California will be required to have a window sticker showing the vehicle's global warming score. The scores will rate smog and greenhouse gases on a scale of 0 to 10, with 10 the highest and 0 the lowest. It looks like New York state may be next, putting a similar rule on its books by 2010. ... There are all sorts of devices and fuel tank additives out there that claim to improve fuel economy, but many of these higher-MPG schemes are just flat-out scams. But you can find a few good new wrinkles out there. We came across an interesting piece of technology that uses your car's computer to show how your driving style affects fuel economy, thus allowing you to adjust certain habits to improve fuel efficiency. "The (PLX) Kiwi is a small dashboard computer that plugs into your car's on board computer through the diagnostic port (called an OBDII/CAN port) which is typically located under the steering wheel. ... The Kiwi displays all the real-time information available from your car's computer, such as miles per gallon, speed and trip information. It can also tell you why that pesky check engine light has come on and turn it off for you if it turns out not to be a problem." Gas 2.0 says the device should be available later this month ... According to the AAA Fuel Gauge Report, gas has sold at or above $4 a gallon for the last 30 days. And consumers have paid $3 a gallon or more at the pump for the last year. We already know that Americans expect to pay $5 a gallon for gas by Labor Day. So much for summer fun! ...
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THE SMALL CAR IS THE NEW KING OF THE ROAD
July 3, 2008: With truck sales in the toilet and small cars just about the only things moving off of car dealership lots, U.S. auto sales are now down 18.3 percent from the same point last year. Two of the three domestic automakers have taken the largest hit, with Chrysler down 35.9 percent and Ford down 27.8 percent. The only carmaker to improve in sales was Honda, with an increase of 1.1 percent, likely due to its stable of affordable, fuel-efficient vehicles. The Detroit News reports: "The amount of time it takes to sell a Toyota Prius, the world's best-selling hybrid, is down to one day. The Yaris subcompact is at seven days and the compact Corolla is at 15." And although Jim Lentz, president of Toyota Motor Sales, says his company is unable to boost production of the Prius, they do have plans to crank out more non-hybrid subcompacts ... Even as they see sales of light trucks down significantly and smaller, fuel efficient cars flying out the doors, U.S. automakers are still complaining that the 4.5 percent yearly increase between 2011-2015 that is in the works for a rule by the Transportation Department's National Highway Traffic Safety Administration (NHTSA) is too aggressive. Much research has been done showing that even more significant gains in fuel efficiency are possible than what the government will require yet still, the automakers whine. If they had paid attention back in 2002 when the National Academies of Science concluded that existing technologies would add as much as 12-14 mpg for cars and 11-13 mpg for trucks, they could have started shifting away from gas guzzlers then ... And although sales of hybrids like the Prius and Civic Hybrid have not been hurt by the loss of tax incentives, a recent LA Times article wonders about the logic behind removing hybrid tax incentives. Good question! ...
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$5 GAS: THE TIPPING POINT FOR VOTERS?
June 27, 2008: Americans are increasingly angry and anxious about high gas prices and favor far-reaching action on energy and climate issues. About three out of four Americans (76 percent) and a similar percentage of likely voters (74 percent) expect gasoline prices to reach $5 a gallon by Labor Day, according to a major new national opinion survey of 1,005 adults conducted for the nonprofit and nonpartisan Civil Society Institute (CSI) think tank and its Citizens Lead for Energy Action Now (CLEAN) project by Opinion Research Corporation (ORC). The level of Americans braced for more bad news on gas prices by the end of the summer is up from the 71 percent of Americans who correctly forecast in a January 2008 CSI survey that gas prices would reach $4 a gallon this summer. Three out of four Americans (74 percent) and 73 percent of likely voters - including a bipartisan 73 percent of Republicans, 74 percent of Democrats and 74 percent of Independents - say that they already are "very angry" (40 percent) or "somewhat angry" (33 percent) about gasoline prices. The result of all of this growing anger and anxiety is a political climate in which Americans favor far-reaching energy and climate solutions of the sort reflected in the CLEAN agenda, including higher federal MPG standards and more hybrids on the road ...
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HYDROGEN = HOT AIR?
June 18, 2008: Honda just announced the impending release of their new "zero emission" hydrogen car, the FCX Clarity. While we're happy to see the field of alternative fuel vehicles expand, we also wonder how much of this is hot air ... at least so far. And we're not the only skeptical ones. First off, Honda only plans to lease a few dozen of the vehicles in specific areas in California this year and plans to get up to the whopping number of 200 within three years. Second, there is no large scale distribution system in the U.S. for hydrogen fuel, which would be necessary for large-scale commercial rollout of the FCX Clarity. On the other hand, we are intrigued by the whole back to the future idea of a "home refueling station". It reminded one of us of our childhood in rural Minnesota, living with that natural gas tank right outside our bedroom window ... With high gas prices now the norm and unlikely to fall in a big way any time soon, most Americans have had to change their driving habits. Carpooling, driving less and using mass transit are a few of the options they've been taking up to avoid that sharp pain at the gas pump. As NPR reports, for some Americans, "hypermiling" has helped them get more bang for their buck at the pump. ... And several consumer groups want federal regulators to increase proposed fuel economy regulations and hold federal hearings this summer before putting rules into place ...
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PREDICTING HIGH GAS PRICES: EXPERTS 0, AMERICAN PUBLIC 1
June 10, 2008: While some experts scoffed back in January when 40MPG.org released its survey on the expectations of Americans for summer gas prices, we now find ourselves in the unfortunate position of being proven correct. All too correct, in fact. Gas prices rose six cents in the last week and now at an average of $4.04 a gallon for unleaded. We reported back in January that 71 percent of Americans thought gas would reach $4 a gallon this summer and almost half (48 percent) thought they would exceed $4 a gallon. We also reported that over half of Americans would cut back on summer travel if prices did reach this level and 58 percent said they would cut back on personal spending. This is all happening now and in addition, the Washington Post reports: "In a society nurtured on cheap gasoline, the high fuel prices are having disparate effects: the end of free pizza deliveries at major franchises, a plunge in the sales of sport-utility vehicles, a steep drop in the price of houses that are far from jobs or mass transit." On the solution side, an editorial from the Baltimore Sun points out that lowering our speed can significantly help with fuel economy performance. Many suggest public transportation or walking or biking when possible to help ease the pain American wallets. As it turns out, you can also gain a few "MPGs" by losing a few "LBs". ...
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TEETERING ON THE EDGE OF $4 GAS
June 3, 2008: Gas prices are now at $3.98 per gallon, the highest price ever recorded, according to the Energy Department. And that's just the national average. Gas in 12 states and Washington, D.C. has already surpassed the $4 per gallon mark. Not surprisingly, public transportation ridership levels are surging in such cities as Washington, D.C., Boston, Seattle, WA and Fresno ... Amid reports of GM being forced to shutter plants that make SUV and trucks, it's not surprising that they are also looking to offload the most-fuelish brand that they have - the Hummer. It remains to be seen who will want a Hummer in the future ... When claims are made that cars can (or will soon) run on compressed air, organic waste or even water, do you write off such claims as fiction? If necessity truly is the mother of invention, such schemes now stand a much greater likelihood of coming to pass. As gas prices continue to rise, smaller companies are breaking from the standard hybrid/electric space and looking elsewhere to get a piece of the alternative fuel pie. ...
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GAS UP 15 CENTS … IN ONE WEEK!
May 28, 2008: "Sticker shock" just doesn't cut it anymore. We need to come up with a whole new phrase to describe the kick in the gut that happens when the price of gas soars 15 cents in just one week and hits a record high national average for unleaded regular of $3.94 a gallon .... How bad are things for consumers in the U.S.? As the Times of London notes, we are abandoning gas guzzlers in droves and Ford has even reintroduced to U.S. shores the Fiesta - last seen in the 1970 oil embargo period ... OK, we will admit that we watch that Boomerang cartoon channel as much as the next guy (and then some), but what's with all the Jetsons-related auto coverage lately? The Dallas Morning News writes of auto designers who allegedly are channeling George, Jane, Elroy and the whole crew. And the Boston Herald even took the flying-car bait. As Astro might say: Ruh-roh! ... On a more serious note, USA Today has an interesting story on how automakers are now focused on better tires as a way to squeeze out a few more MPG ...
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LIQUID PAIN: SUBPRIME MEMORIAL DAY VACATION?
May 20, 2008: Expect to see a lot more people hanging around your neighborhood than is typical for a Memorial Day holiday weekend. From around the country, we're hearing stories of record gas prices approaching $4 a gallon, and in some cases over $4 a gallon. The result? Americans are scaling back on their travel plans over Memorial Day weekend. Some places are offering incentives to get travelers to visit. Unfortunately, we've already seen our predictions of national gas prices at or above $3.50 per gallon coming true and expect a $4 per gallon national average to be a reality all too soon ... Chrysler's offer to subsidize gas costs for new buyers of its vehicles for three years after their purchase may have some people seeing green (as in cash) but in reality, it's a counterproductive marketing hustle. "Golly, this seems like a great deal, American innovation at its finest. Buy a vehicle like a Dodge Ram truck (13 miles per gallon in the city, 18 on the highway), and Chrysler will make sure you don't pay more than $2.99 per gallon for the next three years. ... So swig away on that gas and don't worry about the hangover. ... And what happens when the three years end? Programs like this one have the perverse economic impact of making gas more expensive, said Jeroen Struben, a postdoctoral associate at the MIT Sloan School of Management. Stimulating people to buy more gas by disguising costs makes demand - and prices - go up in the long run, said Struben." Amen! ... More reports out there that that diesel is making a comeback. Volkswagen is predicting that by 2018, 30 percent of its U.S. sales will be for diesel vehicles. More than one of us here at 40MPG.org is already itching for a test drive! ...
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