Hybrid vehicles posts
FeedPosted Sep 16th 2008 3:00PM by Brian White (RSS feed)
Filed under: Products and Services, Ford Motor (F)
Ford Motor Co. (NYSE:
F) won't be rolling out hybrid vehicles at the pace of the competition, the company said recently. Instead, the troubled automaker is taking a "deliberate pace" introducing hybrids to ensure there is enough mass-market appeal for the vehicles. Ford wants to avoid spending hundreds of millions on hybrid technology that exceeds what the population wants.
The competition is chomping at the bit to get hybrids of all shapes and sizes into the hands of consumers -- but do consumers really want to switch to more fuel efficient hybrids so quickly? Smaller cars like the Ford Focus are selling like hotcakes, which indicates that consumers are interested in fuel efficiency -- but not necessarily hybrids, which tend to have less space and cost thousands more. Think consumers interested in hybrids are doing it to be green? I would disagree -- they're looking for lower gas bills, plain and simple.
Ford
hybrid marketing manager David Finnegan said, "We don't believe in making cars for hundreds of people or thousands of people . . . they have to be affordable to our customers and capable of sustaining millions (of vehicles) in sales volume." Well said. Until there is more actual demand, Ford's decision to develop hybrid vehicles in a delayed and deliberate fashion is a sound choice.
Posted Feb 7th 2008 6:30AM by Douglas McIntyre (RSS feed)
Filed under: Forecasts, Launches, Consumer Experience, Competitive Strategy, General Motors (GM)
General Motors (NYSE: GM) plans to have 50% of its cars in the US running on ethanol by 2012. Reuters says that "GM will have 11 ethanol-capable vehicles on the market this year and 15 in 2009."
The move may help keep oil and gas prices down and it may cut dangerous emissions, but it also may not save the consumer a dime. CNN Money reports that "corn and soybean prices soared in 2007 due largely to demand for the alternative fuel ethanol." That means the fuel is likely to get much more expensive.
At this point, the cost of an alternative energy car is several thousand dollars higher than the price of a gas-powered car. Increased production volume may solve that over time, but those savings may not hit the consumer for several years.
Being "green" may come with a high cost. If the economy stays weak, that may not sell.
Douglas A. McIntyre is an editor at 247wallst.com.
Posted Jan 6th 2008 12:40PM by Douglas McIntyre (RSS feed)
Filed under: Forecasts, Industry, Consumer Experience, Competitive Strategy, Ford Motor (F), General Motors (GM), Toyota Motor Corp. (TM)
The number of announcements about hybrids and other fuel efficient cars is picking up speed. Over the last several days, General Motors' (NYSE: GM) Saturn has said it will come out with a Vue Green Line two-mode hybrid. According to The New York Times, "two-mode Vues will operate in electric-only mode at low speeds or with a mix of the 3.6 liter V-6 gas engine and electric assistance at higher speeds."
Ford Motor (NYSE: F) will probably introduce a lighter version of its Explorer SUV. The model will also have a smaller engine. The new vehicles probably will be introduced at the North American International Auto Show in Detroit.
That is not all Ford has up its sleeve. The Associated Press writes that Ford will release its new EcoBoost engine. It works with "direct injection so fuel is injected into each cylinder of the engine in small, precise amounts, which improves fuel economy and power. The turbocharger uses waste energy from the exhaust gas to drive the turbine."
Undoubtedly all of this new technology works, although it is not clear how much it will add to the cost of any given car model.
The tech may also be coming a bit late, at least for Ford. With its sales off 12% in the U.S. last year, it is now in third place in its domestic market behind both GM and Toyota (NYSE: TM). A poor economy could push vehicle sales to multidecade lows this year. The plans to keep Ford on the road to recovery may simply not cut costs fast enough to outpace falling sales.
Ford's shares are back around $6. They have not been there for 20 years. Hybrids are not going to solve that.
Douglas A. McIntyre is an editor at 247wallst.com.
Posted Dec 3rd 2007 1:55PM by Brian White (RSS feed)
Filed under: Products and Services, Ford Motor (F), General Motors (GM), Toyota Motor Corp. (TM)

When
Toyota Motor Co. (NYSE:
TM) unveiled the Prius hybrid passenger vehicle way back when, the automaker was hailed as being at the forefront of eco-friendly carmaking. Although the Prius has become a best seller in the hybrid category, other automakers have chimed in recently and have begun making competitive vehicles. At the same time, Toyota has continued to make gas-hungry vehicles in the same vein. The newer Toyota Tundra and Sequoia are two examples.
The newer Tundra is Toyota's largest truck ever, and it has a gas engine that's just as meaty as many large truck engines have ever been. So, the pioneer of marketing what is arguable the world's most popular hybrid is now being chastised to making such energy-hungry engines in its newer, larger 8-cylinder engines.
While Toyota is busy placating both the rain forest crown and the 'power at all costs' crowd, rival
General Motors Corp. (NYSE:
GM) is rolling out the new Chevrolet Tahoe SUV, powered by a gas-electric hybrid. Generally, it's quite an oxymoron to hear that an SUV has a hybrid engine. But, GM's claim of up to 50% better gas mileage in city driving is nothing to sneeze at. GM's not the only one --
Ford Motor Co.'s (NYSE:
F) smaller Escape SUV has had a hybrid option for quite some time, and all other manufacturers are starting to realize that making an eco-friendly vehicle is becoming more important than horsepower ratings to the average customer.
Toyota certainly is not out, but it's increasingly becoming the target of environmentalists
who claim double-talk by the Japanese automaker when it comes to making eco-friendly vehicles. Toyota certainly does not need
any more problems than it has had this year.
Posted Nov 28th 2007 4:39AM by Douglas McIntyre (RSS feed)
Filed under: Launches, Industry, General Motors (GM), Marketing and Advertising, China
It may not solve the air pollution problem all by itself, but GM (NYSE: GM) will begin to make hybrid cars in China in time for the Olympics.
But the No.1 US car company may have trouble selling the vehicles. According to Reuters "Demand for hybrids is negligible in China, where fuel economy figures little in consumers' purchasing decisions." With oil trading above $90 and China driving much of the global demand, that dynamic could change quickly.
The GM move seems to be a PR stunt as much as anything else. The automaker knows that putting out a hybrid in the world's second-largest car market will get it coverage as foreign press flood China for the 2008 Olympics. One can just see all of the US athletes being driven to and from the Games in their shiny new GM hybrids. Made in China. Driven in China.
But the fuel problem in the world's most populated country is severe. Last month, the government had to ration diesel and, at high prices, the Chinese government is paying a huge premium to keep its GDP rising by underwriting energy costs.
Perhaps some of the senior members of the Communist Party will be in hybrids next year as well.
Douglas A. McIntyre is an editor at 247wallst.com.
Posted Aug 29th 2007 2:37PM by Tom Barlow (RSS feed)
Filed under: Products and Services, Launches, General Motors (GM), Toyota Motor Corp. (TM), Next Big Thing, Japan

Last week I wrote about
GM's plans to bring its hybrid Volt to market in 2010. As I mentioned in that post, the competitors won't be standing around waiting for
General Motors (NYSE:
GM) to catch up. In fact,
Honda (NYSE:
HMC) and
Toyota (NYSE:
TM) are already preparing for a 2009 green-on-green smackdown.
According to
Newsweek, both corporations have
big plans to grab a lion's share of the green market. Honda, still licking its wounds over the failure of the hybrid Accord, is pulling that model out of their green lineup. To take its place, the company will introduce an entirely new marquee, one that will (hopefully) outrun the Prius in fuel efficiency and price. The company hopes to sell 100,000 of this model a year, a quantum leap beyond its current hybrid sales.
Toyota, the clear leader in the field to date, is treating its Prius as a new brand, much as it did with the Scion line. By 2009, look for compact, midsized and crossover models under the Prius moniker.
J.D. Powers estimates that by 2011 there will be 75 hybrid models in America's showrooms. And I'm betting every one of them will be better looking than Honda's original ugly mutt hybrid, the discontinued Insight.
Posted Aug 22nd 2007 12:05PM by Tom Barlow (RSS feed)
Filed under: Forecasts, Products and Services, Competitive Strategy, General Motors (GM)
Bloomberg.com reported today that unnamed sources privy to Chevrolet's plans for their version of the hybrid, the Volt, say that
General Motors (NYSE:
GM) hopes to build as many as 60,000 of the vehicle in the first year of production, 2010-11.
In its current iteration, the
car would be capable of traveling up to 40 miles on its lithium-ion battery alone, or 640 miles between gasoline fillups. A (much more expensive) fuel cell version is also in the works for the Chinese market.
Industry experts are skeptical of the company's ability to reach such lofty goals. The process will be expensive -- GM expects to spend a least half a billion dollars in bringing the vehicle to market. The plan compresses GM's normal development cycle, and will test its corporate flexibility. The projected quantities also represent a real gamble on the car's popularity.
Chevy is also
depending on the timely development of a new type of battery to power the E-Flex system. This system would allow the car to cruise at highway speed on battery alone, and could be recharged via house current, overcoming the limitations of current hybrids from
Toyota Motor Corp. (NYSE:
TM) and
Honda Motor Ltd. (NYSE:
HMC).
Posted Aug 9th 2007 2:00PM by Kevin Shult (RSS feed)
Filed under: Launches, Industry, Competitive Strategy, Daimler (DAI), General Motors (GM), Toyota Motor Corp. (TM), Sony Corp ADR (SNE), Oil

Due to
potential safety problems,
Toyota (NYSE:
TM) has decided to delay the launch of new high-mileage hybrids with lithium-ion battery technology by one to two years, according to
The Wall Street Journal, which cited people familiar with the strategy. The decision destroys any chance of Toyota meeting its goal of selling 600,000 hybrids a year by early next decade, up from almost 200,000 in 2006. The move allows
General Motors (NYSE:
GM) and others the opportunity to narrow the gap of future vehicle technology.
Toyota has also postponed its plans for the hybrid versions of the Sequoia SUV and the Tundra pickup until 2013-2014. That puts Toyota way behind General Motors and Chrysler's
plans to launch hybrid SUVs in 2008.
The "potential safety problem" Toyota says, is the development of lithium cobalt oxide particles in its batteries, which have a tendency to overheat, catch fire or even explode. According to the company, similar problems have been seen in
Sony Corp. (NYSE:
SNE) lithium-ion batteries in laptops -- mostly because the chemistry of Sony's batteries was similar to that of batteries they were attempting to use in future hybrids.
The next-generation Prius will instead use the conventional nickel-metal-hydride batteries for its launch in early 2009. The first Toyota hybrid with lithium-ion battery technology will not arrive in the U.S. until 2011.
GM will have an opportunity to launch its first lithium-ion hybrid, the Saturn VUE Green Line model, as soon as late 2009, and before any competitors. Toyota's delays also give
Honda Motors (NYSE:
HMC) the opportunity to highlight its launch of a subcompact hybrid with improved nickel-metal-hydride batteries in 2009.
Volkswagen (OTC:
VLKAY), BMW and
DaimlerChrysler (NYSE:
DAI) all plan to create clean diesel engines for U.S. cars starting in 2009. The automakers say they now have obtained the technology to meet tough American clean-air standards.
Regardless of which company produces the first lithium-ion hybrid, Toyota's delays push back
J.D. Power's estimates on future hybrid sales. Hybrid sales totaled 2.3% of all auto sales this year and were expected to reach 5% by 2010.
Posted Jun 27th 2007 1:14PM by Brian White (RSS feed)
Filed under: Products and Services, Competitive Strategy, Ford Motor (F), General Motors (GM)
Ford Motor Co. (NYSE:
F) CEO Alan Mulally sees the future -- and it's full of hybrid vehicles. Well, at least that is what he
stated this week while attending an auto repair competition. Mulally stated that "the hybrids we're looking at now are petrol and electricity. But over time, I can also see hybrids with diesel and electricity, and also hydrogen and electricity and petrol." Interesting words from Ford, even though it is one of the larger domestic proponents of hybrid automotive technology.
In fact, the head of
General Motors Corp.'s (NYSE:
GM) Cadillac division
said Tuesday that the promotion of more hybrid technology in the powertrains of more vehicles makes sense as gas prices hover near $3 a gallon. Although that is quite obvious, the question that was probably on the minds of many as these two auto executives spoke about hybrids was: when will the market see new products? John Howell, the Cadillac exec, stated that "pretty much every program I am looking at going forward has got a hybrid as part of it." The 2009 Cadillac Escalade will most likely be the division's first hybrid vehicle.
Are GM and Ford behind the times? I would not go that far, but all the recent talk that automotive propulsion technology is heading towards many different hybrid options seems to have escaped the automakers even as competitors like Toyota and Honda have scurried ahead. Ford's Escape was the first hybrid SUV (with licensing help from Toyota). However, in terms of cars, the overseas competitors have a leg up, at least for now. Ford's recent withdrawal on its commitment to hybrid -- backing off a prior decision to produce 250,000 hybrid vehicles by 2010 -- shows that the automaker may not be ready to attack the market. Bad news for Ford, but good news for the competitors.
Posted Jun 6th 2007 2:43PM by Jonathan Berr (RSS feed)
Filed under: Products and Services, Competitive Strategy, Daimler (DAI), Ford Motor (F), General Motors (GM), Toyota Motor Corp. (TM), Middle East, IAC/InterActiveCorp (IACI), Economic Data, Politics, Oil
General Motors Corp. (NYSE:
GM),
Ford Motor Co. (NYSE:
F),
DaimlerChrysler AG (NYSE:
DCX) and the United Auto Workers just can't stop complaining about new, tougher fuel-efficiency standards that the U.S. Congress likely will pass.
The companies and union are taking their case to Capital Hill today at a private luncheon with leaders of the U.S. Senate to convince them to reconsider an overhaul of Corporate Average Fuel Efficiency (CAFE) standards, according to the Associated Press.
Let's hope that Senate Majority Leader Harry Reed has the guts to tell them to pound sand. The public is fed up with high gas prices and the growing problem caused by global warming. Even GM Chief Executive Rick Wagoner has acknowleged this reality, though the AP quotes him cryptically saying "let's make sure that we also fix the real problems while we're doing that."
Continue reading Auto industry CAFE whining falling on deaf ears
Posted Feb 21st 2007 9:05AM by Jonathan Berr (RSS feed)
Filed under: Forecasts, Other Issues, Products and Services, Industry, Consumer Experience, Competitive Strategy, Daimler (DAI), Ford Motor (F), General Motors (GM), Economic Data
Hybrid vehicles are getting to be a tougher sell as gasoline prices fall.
Forecasters expect them to reach $2.35 per gallon this year, below last year's level of $2.58. They currently average $2.30 following three straight weeks of gains.
The ramifications of this decline are huge for Ford Motor Co. (NYSE:F), General Motors Co. (NYSE:GM) and DaimlerChrysler AG (NYSE:DCX). If people perceive that gasoline prices aren't that bad, they will only grumble slightly when they fill up their gas-guzzling SUVs. Only when prices reach what I call the "what the (insert explicative)" level will people decide that they need to do something drastic like buy a hybrid.
The tax breaks that encouraged people to buy hybrids are far more complicated than they used to be, according to USA Today, giving people yet another reason not to buy a hybrid.
Even under the most optimistic scenario, hybrid vehicles will remain a small niche for some time. Sales volumes of the vehicles are expected to rise 268 percent between 2005 and 2012, according to JD Power & Associates. By 2012, they will be about 4 percent of the market.
Environmentally conscious consumers interested buying hybrids there are deals galore, Ford and Toyota Motor Corp. (NYSE:TM) are offering deals such as 0 percent financing on some models and Honda Motor Co. (NYSE:HMC) is offering dealers discounts which may get parsed onto consumers, USA Today says.
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Posted Dec 11th 2006 6:00PM by Gary Sattler (RSS feed)
Filed under: Ford Motor (F), Best and Worst 2006
This post is written as part of AOL Money & Finance's Best & Worst 2006. If this post convinces you that Ford can make a comeback, cast your vote.
Recently I wrote a blog post about some of the nice things Ford Motor Company (NYSE: F) is doing. It was just an overview and the article was cursory at best. A member of our excellent editing staff suggested that I might have readers who want a bit more explanation of just what has happened with Ford's stock market value over the last year. I think that for an even better perspective, I'll need to take you back ... way, way back....
Ford Motor Company's stock value entered this decade at $29.30 (the actual per share value was $53.51 but there's a split adjustment factored in). By the end of 2000 Ford stock had slipped to $23.44. One year later the shares had deflated to $15.95 and by the end of 2002 investors were viewing in amazement a stock value of just $9.58. In 2003 Ford took an upswing and shares ended that year at $16.18. But 2004 ended at $14.80, 2005 nearly halved that value to $7.90, and 2006 is shaping up to finish with Ford Motor Company shares close to today's ending price of $8.13. Two factors that must be considered when viewing this historical trend are: In 2000 Ford's daily share trading volume was in the range of 3,300,000, whereas yesterday's trading volume for Ford was over ten times that much at 30,530,400 shares. How do total share availability and volume traded affect the overall price? I'll honestly tell you, that information is just plain "over my head."
Continue reading Best & Worst: Ford still America's family company, but the family is struggling