Hybrid Updates

I know that GM is selling their Hybrid system in a joint venture to Chrysler and others, here Toyota is doing something similair with Nissan.


RUMBLE SEAT / DAN NEIL
The beast with two brands
Couple Toyota's battery and support hardware with a four-cylinder Nissan and you get the 2007 Altima hybrid. It's alive! It's alive!
DAN NEIL
December 20, 2006

YOU know that horror movie where the mad scientist straps two victims to tilted gurneys, lowers the metal skull caps on them and, by dint of some Ray Harryhausen special effects — the sparking dynamo, the climbing plasma of a Jacob's ladder — the victims' personalities are switched?

The 2007 Nissan Altima hybrid is like that, except without the smoking hair. The company's first effort at a gas-electric, using parts and technology licensed from Toyota, drives like a Nissan with a Prius soul transplant: The same ninja-in-the-night silence as the car trundles along at low speeds; the same faint tremble when the gas engine lights up; the same bubbly, torque-infused acceleration as the gas and electric motors pull on the oars, only quite a bit more so.

Anybody who has driven a hybridized Toyota Camry will recognize the company's power-management graphics displayed on the Altima's center-dash LCD screen. In fact, the Altima hybrid — nearly a numerical dead ringer for the Camry hybrid (wheelbase, height, weight, horsepower, acceleration) — might be thought of as a Camry hybrid with sex appeal. Let us not underestimate the magnitude of that achievement.

This is not a car that Nissan wanted to build, particularly. Nissan chief Carlos Ghosn has long argued that hybrid cars were a money-losing proposition with little consumer demand — of course, this was before Toyota started selling more than 100,000 Priuses annually.

Earlier this month, Nissan exec Dominique Thormann admitted the company was building the Altima hybrid at a loss only to comply with California's partial zero emission vehicle mandate, which has been adopted by seven Northeastern states as well.

And yet, collectively, Nissan — like GM — seems to have had a come-to-Jesus moment on hybrids. Recently Nissan announced its "Green Program 2010," which — in addition to looking for across-the-board cuts in carbon emissions from its factories — will develop a hybrid vehicle using in-house technology, as well as pursue plug-in hybrid and all-electric technology. Nissan also announced it would create its own company to produce and market advanced lithium-ion batteries, which are the critical component to make hybrids, plug-ins and electric vehicles work.

Let's bookmark this moment in the history of cars, because what is emerging is something like consensus. Hybrid doubters — who once railed that the batteries were sketchy, the costs of the so-called hybrid premium unrecoverable, the mileage gains overstated, and so on — are beginning to look like the Flat Earth Society. As underscored last month when GM announced it would build a plug-in hybrid version of its Saturn Vue, the logic of electric propulsion is compelling. Electric motors are clean, lightweight, maintenance-free and powerful. The latest lithium-ion batteries are energy-dense, durable, compact and recyclable. Putting these components together opens a world of oil- and carbon-saving possibilities.

Run this through your wetware: What about a car that uses a powerful electric motor to drive the wheels, that you would charge overnight like a cordless phone, that would deliver per-mile costs at a fraction of gasoline? And if the car should need to exceed its all-electric range, a small, hyper-clean gas-powered generator would be aboard to charge the battery. Such a widget, known as a serial hybrid, could get over 100 miles per gallon. Fantasy? Let's talk after next month's Detroit auto show.

In the meantime, we have the Altima hybrid, which is the result of a deal Nissan signed with Toyota way back in 2002. Toyota supplies the 244V nickel metal hydride battery, the electric motor/transaxle, the inverter and controller, while Nissan uses its 2.5-liter four-cylinder engine and continuously variable transmission (CVT). The DOHC, 16-valve gas engine serves up 158 hp at 5,200 rpm, while the permanent magnet AC synchronous motor imparts another 40 hp, for a nominal net of 198 hp. This thrust is pitted against 3,448 pounds of mass, which is 264 pounds heavier than the regular four-cylinder, 175-hp Altima.

The Altima hybrid also surrenders some trunk space to the hybrid batteries and controllers: The regular Altima has a 15.3-cubic-foot trunk while the Altima's bootie makes do with 9.1 cubic feet.

Functionally, the Altima hybrid powertrain feels very familiar. From idle to about 10 mph, the car moves in all-electric mode, pulled along by the electric motor's husky 199 pound-feet of torque (between 0-1,500 rpm). Above stop-and-go speeds and depending on throttle demand, the gas engine kicks in with a slight low-frequency flutter. In keeping with the brand's sportier vibe, Nissan's engineers gave the Altima hybrid a slightly huskier exhaust note — though the effect is just slightly like having someone in the trunk making motorboat sounds (BBBBBRRRR!!!!).

In straight-line acceleration, the Altima pours out a nice, syrupy torque below 60 mph, where the gas and electric power plants are most effective. Zero-to-60 mph is about 9 seconds. At interstate highway speeds, the Altima starts to feel a little starved for electrons, and floor-to-the-mat requests for acceleration are met with a major kick-down whine from the CVT.

Overall, though, the hybrid's performance should be roughly on par with the Altima four-banger. Though who desire more boot-scoot may be interested in the 3.5-liter, 270-hp Altima SE.

As for fuel economy, the hybrid's official numbers are 41 city, 36 highway — or about 25% better than the four-cylinder Altima (26/34 mpg). While pricing won't be announced until late January, close to the time the vehicle goes on sale, the base Altima hybrid should come in at around $25,500. (Because it's a loss-leader proposition anyway, it's only a matter of how much the company wants to eat on each unit.) A car like our all-in tester — with navigation, rearview camera, leather and wood, satellite radio with Bose sound system and a slew of other conveniences and amenities — would likely run to about $32,000. Currently, the federal tax credit on the Altima hybrid is $2,350, according to Nissan.

It's worth noting, incidentally, that the recent downturn in Toyota hybrid sales is probably due to the shrinking tax credit on them, because Toyota was the first manufacturer to hit the 60,000-unit mark, after which by rule the tax credit decreases. The Altima hybrid seems like a good way to get a Camry hybrid-esque car and still get the full credit.

Except, of course, that it's not a Camry, with all the bourgeois burden the nameplate implies. The Altima has been restyled for the 2007 model year, an effort that has merely refined the car's well loved, cleanly architectural styling: the perfect-arch roofline, the raked windshield, the close-fitting wheel openings and glassine details at the corners. The Altima also shares Nissan's affection for crisper ride and handling and more vivid steering. The Camry hybrid drives a little bit like the world's most sophisticated hearse.

If this is what it takes to put Toyota efficiency in a sleek, stylish sedan, then I say, Doctor, throw the switch.

[email protected]
 
more:

Wednesday, November 01, 2006

Anita and Paul Lienert

Saturn walks the Green Line

While the Vue hybrid performs well, the small SUV needs additional updating

GM / Saturn

2007 Saturn Vue Green Line offers an excellent hybrid powertrain but could update its interior and exterior design. See full image

2007 Saturn Vue Green Line

Type: Front-engine, front-wheel drive, five-passenger utility vehicle.
Price: Base, $22,995 (inc. $625 shipping charge); as tested, $23,750.
Engine: 2.4-liter I-4; 170-hp; 162 lb-ft torque.
EPA fuel economy: 27 mpg city/32 mpg highway.
Where built: Spring Hill, Tenn.
Estimated 12-month insurance cost, according to AAA Michigan : $1,184


Anita
Rating: 4

Likes: Great for the budget-minded hybrid shopper. Attractive, clean-looking exterior styling. Standard traction control and ABS. Roomy cabin. Driving feel is close to conventional Vue. Ample cargo space, even with batteries under rear floor.
Dislikes: No spare tire. No 4WD model. No side air bags. Side curtains cost extra, and only come bundled in $1,125 option package.


Paul
Rating: 3

Likes: Industry's least expensive hybrid SUV -- $3,300 less than a Ford Escape Hybrid. Significant increase in fuel economy. Comfortable front seats. Better-than-average materials and build quality. Carlike ride.
Dislikes: Front passenger door poorly sealed, with lots of wind noise. Massive windshield pillars block vision.

G eneral Motors' first hybrid utility vehicle, the 2007 Saturn Vue Green Line, elicited a mixed reaction from us. But there is no denying the gas-electric Vue's key selling points -- great fuel economy at an attractive price.

We tested a modestly equipped Vue Green Line with a sticker price of $23,750.

HE: GM was smart to make Saturn the lead brand in rolling out a hybrid SUV. Saturn continues to have a great reputation and positive image among owners. They should really appreciate the virtues of the Vue Green Line, including the fact that it's the industry's least expensive hybrid SUV -- more than $3,000 less than a Ford Escape Hybrid.

SHE: The Vue Green Line may be the perfect vehicle to get you to transition out of a conventional gasoline-powered SUV. It gets 20 percent better fuel economy than the standard four-cylinder Vue, with EPA ratings of 27 miles per gallon in city driving and 32 on the highway. Plus it's quicker than the standard gas-engine model, accelerating from 0-60 in just over 10 seconds.

HE: I have no complaints concerning hybrid powertrain, which is very impressive. I'm less taken with the Vue itself, which is starting to look and feel a bit long in the tooth, despite a facelift last year. I had a number of issues with our test vehicle, and none of them involved the hybrid system. A huge problem was a right front door that was not properly sealed, which enabled wind to come whistling through the passenger compartment at speeds over 40 miles per hour. The Vue also has massive windshield pillars that block the driver's view; in fact, I almost plowed into two pedestrians crossing the street as I was turning left at a local intersection because I never saw them.

SHE: You're right. There's very little to criticize about the hybrid system, which in the Saturn is fairly simple and straightforward. The Vue Green Line uses the same 2.4-liter four-cylinder engine that's in the Saturn Sky roadster. It makes 170 horsepower and comes with a standard four-speed automatic transmission. The electric motor is used mainly to supplement the gas engine; about the only time it runs by itself is at very low speeds. The gas engine also shuts itself off automatically at stoplights to save fuel, then starts itself up automatically when you step on the throttle.

HE: It's clear that GM engineers put a lot of time and effort into getting the hybrid system right. I just wish the driveline had a little more muscle. Sometimes the Vue feels like it's taking forever to get up to cruising speed when you're entering the freeway.

SHE: My concerns about the Vue Green Line center around safety. Sure, traction control and antilock brakes are standard. But there is no stability control and no side air bags. Side curtains, which protect the heads of all outboard passengers, are available at extra cost, but only come bundled in a $1,125 option package. I also am a little uncomfortable with the fact that there's no spare tire -- the battery pack takes up that space under the rear cargo floor. Granted, there's an inflator kit in case you get a flat.

HE: Hmmm. Does that mean you're the wrong demographic for a hybrid vehicle? I think we still need to applaud Saturn and GM for making hybrid technology accessible to more consumers. Now they need to replace the Vue with a more modern vehicle if they really want to get the attention of the rest of us.

He drove, she drove Anita and Paul Lienert are partners in Lienert & Lienert, a Detroit-based automotive information services company.
 
New Fuel Economy Regulations coming in Japan

Japan: New rules demand massive fuel efficiency improvements
By Andrew Mollet
21 December, 2006
Source: Automotive World

Japanese OEMs would be required to boost the fuel efficiency of their passenger cars by an average of 23.5% by fiscal 2015 under new regulatory proposals just unveiled by the Ministry of Economy, Trade and Industry and the Ministry of Transport.

Under the new rules, which are expected to go into effect next spring, the target consumption will be 22.5km per litre for cars in the lowest weight class of 600kg or less, and 7.4km per litre in the top weight class of 2,271kg and above. The new rules will also require that the gas consumption of small buses and cargo trucks be improved by 7.2% and 12.6%, respectively.

Currently, separate rules govern diesel and gasoline vehicles, while the new regulations will band them together. The requirements will be set according to 16 different categories depending on the vehicle's weight. The new rules will also modify how fuel economy is gauged to include heavy traffic and other driving conditions. Because the new method will more accurately reflect fuel efficiency under actual driving conditions, published figures are expected to decline 10-20%.

Fuel-efficiency regulations were first introduced in fiscal 1999, mandating OEMs to boost mileage by up to 23% by fiscal 2010 compared to levels in fiscal 1995. However, most OEMs have already cleared that hurdle thanks to the introduction of hybrid electric cars and other innovations. As a result, the government deemed that tougher rules were necessary to spur OEMs to continue developing new technologies.

The challenge now will be developing new technologies, allowing them to raise average fuel efficiency to 16.8km per litre, up from 13.6km per litre for passenger cars sold in the domestic market in fiscal 2004.
 
Honda May Build Hybrids In N America: President Fukui

Tuesday, December 26, 2006
Honda May Build Hybrids In N America: President Fukui

TOKYO (Nikkei)--Honda Motor Co. (7267) may produce hybrid vehicles in North America, President Takeo Fukui said Monday in an interview with The Nihon Keizai Shimbun.

The new U.S. factory "will produce mainly small models, which are seeing strong demand," Fukui said in reference to the plant in the state of Indiana, which is slated to begin operations in 2008 with an annual output capacity of 200,000 units.

According to Fukui, the Civic and the Fit may be made at the new plant. He added that Honda is considering building there its small hybrid-only model, which is due out in 2009.

Honda now sells hybrid versions of the Civic and the Accord, building these vehicles in Japan. The start of hybrid production in North America would be the first time it manufactures such vehicles overseas.

But Honda plans to continue domestic production of motors and other key components that require advanced technologies, so hybrid production in North America will likely involve mainly assembly.

Separately, Fukui indicated that the automaker plans to expand its lineup of minivehicles in order to tap growing demand in Japan. Honda currently has six minivehicles: four passenger models, including the Life and the Zest, and two commercial models.

"Our current lineup is too small," he said. "We will increase the number of models in order to get serious about minivehicles."

Although the time frame for introducing new models is not known, the automaker is expected to add one or two passenger minivehicles to its lineup.

Honda also has plans to turn Yachiyo Industry Co. (7298), to which it outsources production of minicars, into a subsidiary Wednesday via a tender offer.

"We will promote personnel exchanges, including technicians," with Yachiyo Industry, Fukui said, indicating that the unit in the future will not just handle outsourced production, but be able to take on everything from development and purchasing to production.

On Yachiyo Industry, with its plants currently operating at full capacity, Fukui said output capacity "must be increased through such steps as improving production efficiency or acquiring more land."

(The Nihon Keizai Shimbun Tuesday morning edition)
 
I know that GM is selling their Hybrid system in a joint venture to Chrysler and others, here Toyota is doing something similair with Nissan.

It looks like Toyota and Ford are in discussions as well.

Wednesday, December 27, 2006
Toyota Chairman Meets Ford's Mulally For Possible Tie-Up

NAGOYA (Nikkei)--Toyota Motor Corp. (7203) Chairman Fujio Cho and Ford Motor Co. President and Chief Executive Officer Alan Mulally met last week in Tokyo, The Nihon Keizai Shimbun learned Tuesday.

The meeting, held at Ford's request, is widely seen as a first step for the world's second- and third-largest automakers to explore potential partnerships in, among other areas, environmentally friendly technologies. Executive Vice President Mark Fields, who is in charge of Ford's North American operations, also attended the meeting.

"At this point in time," said a senior Toyota official, "we're at a stage where we're just talking over what (the two companies) could do together," suggesting that Toyota is willing to hold discussions with the U.S. automaker.

Mulally may visit Japan again in January to meet with Toyota executives.

According to sources familiar with last week's talks, Ford has shown an interest in Toyota's eco-friendly technologies, such as hybrid and fuel-cell-powered vehicles, as well as its highly efficient manufacturing methods and know-how in trimming procurement costs.

Ford lags behind in the rapidly growing hybrid segment and is currently buying parts for such vehicles from Toyota's affiliated autoparts suppliers. The U.S. carmaker is now believed to be looking for an opportunity to strike broad partnership deals with Toyota, including tapping the latter's hybrid-related technologies.

For Toyota, a tie-up could help it ease potential friction with the U.S. auto industry as it stands poised to dislodge General Motors Corp. as the world's largest automaker as soon as 2007.

Toyota recently expanded its partnerships with industry peers, including capital alliances with Fuji Heavy Industries Ltd. (7270) and Isuzu Motors Ltd. (7202). In the U.S., Toyota produces compact cars with General Motors.

(The Nihon Keizai Shimbun Wednesday morning edition)
 
Toyota Exec says it not all the fault of GM for ending the Electric car.

December 20. 2006 3:00AM
Mark Phelan
MARK PHELAN: Electric car killer?

Don't blame GM, Toyota exec says

December 20, 2006

BY MARK PHELAN

FREE PRESS COLUMNIST

"We let Toyota off the hook for how they subverted the program."

Chris Paine, director of the movie "Who Killed the Electric Car?" Toyota denies it subverted the program.

GM got a raw deal.

It's the kind of thing you hear over dinner every week in Detroit, but it comes as a surprise when a top executive with Toyota leans across the table to make the point.

"The movie 'Who Killed the Electric Car?' was terribly one-sided," Ernest Bastien, Toyota Motor Sales vice president for vehicle operations, said intensely. "It was not balanced at all."

We were talking in Charlotte, N.C., a couple of weeks ago. I was there to drive Toyota's new 2007 Tundra pickup, and the change in topic was completely unexpected.

If it's not surprising enough to hear Toyota defending GM, try this on for size: The film's director pretty much agrees.

"We let Toyota off the hook for how they subverted the program" to sell electric cars because GM had a higher profile, director Chris Paine told me over the phone Sunday.

The automakers, of course, don't think they subverted anything.

GM's Saturn EV1 electric car and Toyota's RAV4-EV electric SUV failed for the same reason -- customers didn't want them -- said Bastien, who was point man for Toyota's short-lived effort to sell the RAV4-EV in California.

GM delivered about 800 EV1s to customers from 1996 through 2000, while Toyota delivered 342 RAV4-EVs in 2002-03.

The film, which suggested GM sabotaged a promising technology that could reduce fuel consumption and pollution, caused a furor when it was released earlier this year.

The movie also intentionally ignored Toyota's experience to make its case, Bastien said.

"We shared all our experience with the RAV4-EV," but the filmmakers intentionally omitted it, he said.

He said the movie's suggestion that GM "chose not to make money on a car people wanted to buy in California" is ridiculous.

"They spent a huge amount of money advertising that car in California," Bastien said. "People wouldn't buy them."

Toyota did everything it could to attract buyers to the RAV4-EV, too. It subsidized the price, so customers paid $279 a month -- the same price as the company's hit Prius hybrid. The price included an expensive home charging station.

Toyota used the same savvy Internet-intensive marketing model that fueled the Prius craze. It even gave its dealers a sweetheart deal so they could make twice as much selling a RAV4-EV as a Prius.

To no avail. Toyota sold about 300 RAV4-EVs in 2002, compared with 20,119 Priuses. Buyers waited in line for the hybrid. They avoided the electric car like it was a downed power line and Toyota, like GM, pulled the plug on the project.

"Customers are not willing to compromise on things they need," Bastien said. "They need cruising range. They don't want to worry about running out of fuel, and they don't want to wait five hours to recharge. The movie didn't give any consideration to that fact."

Filmmaker Paine bought a RAV4-EV, but he's not buying Toyota's explanation.

"I don't agree that they made a good-faith effort to sell the car," he said. "Their priority was the Prius. The EV1 and RAV4-EV were never properly marketed.

"Toyota was no better than GM."

Which brings us back to the original question: Why was the movie so much harder on GM?

It made a better target.

"GM handled it so poorly," Paine said.

His crew filmed protesters outside Toyota's offices, but the company's security guards came out and gave them bottled water and Toyota key chains.

GM, Paine said, turned the water sprinklers on protesters. GM insists they were timed sprinklers, and the protesters just happened to be there at the wrong moment.

Whatever the case, the GM footage was more dramatic, entertaining video. It made it into the movie. Toyota wound up on the cutting-room floor."I don't want to say that we picked on GM," Paine said. "The EV1 was the iconic electric vehicle. That's why we focused on GM."

Let me translate that: GM ended up in the crosshairs because it invested the most time and effort into its electric vehicle. The futuristic EV1 was designed from the start to be a revolution. It was the poster child for electric vehicles. The sedate RAV4-EV looked like just another small SUV.

GM declined to comment.

The nail that sticks up will be hammered down, as they say. GM was the nail. "Who Killed the Electric Car?" was the hammer.

And Ernest Bastien deserves credit for sticking up for the truth, regardless of hammers.

Contact MARK PHELAN at 313-222-6731 or [email protected].
 
A Ford Update:

Future intense

Ford is already trumpeting its success with the 2008 Escape

05:38 PM PST on Friday, December 29, 2006

By PETER BOHR
The Press-Enterprise

What do you do for an encore? Ford Motor Company's Escape is America's best-selling compact sport utility vehicle, and has been for six years running. When you've got a hit, and it's time for a sequel, it had better be good.

And it is. Ford jumped the gun by unveiling the second-generation 2008 Escape at this month's Los Angeles Auto Show. You read right -- 2008, when 2007 hasn't even begun.

Though the revamped Escape won't be in showrooms for a few months, the automaker already is revving up its public relations machine just to make sure everyone knows the new SUV is coming. After all, there are some newly introduced competitors -- Honda's CR-V and Saturn's Outlook, to name two -- ready to steal Escape sales.

Right after the show, I managed to snag a pre-production '08 Escape Hybrid for a long weekend. And I can report that it does show solid improvement over last year's -- I mean, this year's, '07 ... whatever -- model.

Consider its styling. Gen One Escape was easy enough on the eyes, but blended into the crowd. Gen Two is hunkier, with a much more dramatic grille and a "power bulge" in its hood. The new Escape carries a strong family resemblance to its larger siblings, the midsize Explorer and full-size Expedition. Ford stylists also raised the Escape's beltline -- the portion running just below the windows -- making it look like the sides are higher relative to the glass area. It's an effort to give the new Escape "a more Ford Tough Truck appearance," said Ford officials at the LA Auto Show.

The verdict among onlookers that I queried? It's a handsome vehicle.

Inside, the '08 Escape gets a makeover, too. Besides a reworked center stack that puts outside-air temperature, radio and climate-control readouts in a single, easy-to-read display at the top of the dash, the center console is now roomy enough to hold a laptop or purse.

But the most innovative new feature is the '08 Escape's upholstery material, "the first U.S. automotive application of seating surfaces made from 100 percent post-industrial materials," say Ford literature. Translation: The stuff is made of recycled junk -- plastic bottles, old clothes and such.

There are environmental advantages to this. For one, it makes use of trash that might otherwise add to landfills. For another, Ford calculates that its use of the material in its vehicles will annually save 600,000 gallons of water and seven million kilowatt hours of electricity that otherwise would have gone into the production of virgin fibers for upholstery.

Not only that, the material looks nice and is supposedly waterproof. Though my test Escape had optional leather upholstery, I can attest that after examining the recycled material at the LA Auto Show, it doesn't smell like something out of a trash dump.

It will also give those who buy an Escape Hybrid another reason to feel that they're driving green. The '08 Escape will be available with two-wheel drive or four-wheel drive, and with a variety of powerplants that carry over from the first generation. The list includes two gasoline engines -- a 153-horsepower inline-4, plus a 200-horsepower V-6 -- and the hybrid that combines a 133-horsepower gasoline inline-4 with a 22-horsepower electric motor. Ford says the hybrid gives acceleration comparable to the V-6, but with a 75 percent improvement in city-driving fuel economy.

My test Escape certainly didn't lack for power. Even going uphill with four folks aboard, acceleration was strong. After piloting the SUV for several hundred miles skewed towards high-speed highway rather than city driving, I averaged 28 mpg -- not bad for a vehicle of its size. It probably would have done better had I driven more in town. Many hybrids use less gasoline in city driving because at lower speeds they can run on the electric motor alone; the Escape can run on 100 percent battery power up to about 25 mph before the gasoline engine turns on.

Ford engineers adjusted the '08 hybrid's control system to improve the transition between gasoline and electric operation. Indeed, it was pretty much seamless, except for a barely noticeable stutter when the gasoline engine came on.

The new Escape's ride and handling are typical of an SUV. Toss it around curves, and body roll is noticeable. On most surfaces, the ride is comfy. But the suspension is firm; hit a pothole and it kicks you in the rear.

Though a strong wind was blowing through the Beaumont-Banning pass as I cruised along Interstate 10 at a steady speed, the Escape's cabin remained admirably quiet.

Only when I goosed the accelerator hard, and the little gasoline engine hit nearly 5,000 rpm, did things get a little noisy inside.

No surprise, it's too soon for the National Highway Traffic Safety Administration to post crash-test ratings for the '08 Escape.

The first-generation Escape earned good scores, and the new version may do better. Side curtain air bags providing head protection and side-impact air bags that protect the upper and lower torso are standard equipment.

So, too, is a stability control system that can help prevent roll-overs.

As I said, the '08 Escape makes a worthy sequel to the original.

Contact Peter Bohr at [email protected]
 
An Update on Plug-ins from Toyota

Toyota President Sees Continued Research on Plug-in Hybrids

Source: Toyota
[Jan 03, 2007]


SYNOPSIS: Katsuaki Watanabe's New Year letter to Toyota employees includes support for plug-in hybrid research, as well as pledge to continue to improve conventional hybrid model line up.



First of all, allow me to wish everyone a Happy New Year.

Entering the new year, I would like to describe some of the measures we are planning for 2007.

Looking at the automobile markets worldwide, there are a number of regions where we can expect increased automobile use in the future, and in those regions where automobile use has already reached high levels, we can look forward to the introduction of vehicles with new technologies and concepts. As a result, we expect the automobile market to continue growing over the medium- to long-term.

At the same time, however, it is certain that global competition will become increasingly fierce. Under these circumstances, I believe that it is more important than ever to be aware that without improvements, Toyota cannot expect to grow. To that end, Toyota must not only focus its technology development on the environment, safety and energy, but must also remain an exemplary manufacturing company that implements thorough measures concerning quality, cost competitiveness and human resources development. I also want Toyota to be a company imbued with vitality and dignity.

Based on this thinking, we will position 2007 as a year for building a stronger foundation toward great advances in the future and will implement a wide range of different projects.

First, concerning products, in the spring we will launch a hybrid version of the Lexus LS, starting with sales in Japan and gradually going global. As for the new-generation Corolla, in addition to launching it in Japan last year, this year we plan to introduce it globally, starting with China.

In Japan, we will introduce even more new vehicles than last year to respond accurately to the needs of customers, who as a group possess a diverse range of values, and to make some contribution, small though it may be, to expanding markets and stimulating the domestic economy. In autumn, the Tokyo Motor Show will feature both passenger and commercial vehicles for the first time in eight years. Toyota plans to display attractive concept vehicles that generate feelings of excitement and anticipation among the visitors to the show.

Next, in the area of production, we will begin producing the Camry in the spring at SIA (Subaru of Indiana Automotive), Fuji Heavy Industries' North American production base. Our new plant in Russia will begin operations at the end of 2007, and we also plan to begin production at new plants in both Thailand and China.

In Japan, upgrading of the production lines at the Takaoka Plant will be completed. We are positioning the plant to become Toyota's base for innovative manufacturing in Japan, employing Toyota's most-advanced technologies and leading other plants around the world.

As our overseas business continues to expand, it is necessary for us to reinforce the foundations of manufacturing. To this end, we will implement additional localization measures, including human resources development from a global perspective and further support for local affiliates to operate autonomously.

With respect to research and development, we will continue to devote our full energies to projects related to the environment, safety and energy.

Concerning the environment, Toyota has positioned hybrid technologies as core technologies that can contribute to resolving environmental issues, and we will undertake development with a commitment to leading the advancement of such technologies. We will continue to enhance our hybrid vehicle lineup and also actively engage in research and development for plug-in hybrids. In response to the diversification of energy sources, we intend to introduce in the spring in Brazil a flexible fuel vehicle (FFV) that can run on 100 percent bioethanol fuel.

Based on the concept of "the right vehicle for the right place at the right time," Toyota is committed to developing environmental technologies and rolling out environmentally considerate vehicles that are suited to the infrastructure of each region and meet the needs of customers.

This year, we will mark a number of key milestones. We will celebrate the 70th anniversary of the establishment of Toyota Motor Corporation as well as the 50th anniversary of the foundation of Toyota Motor Sales, USA. It will also be the 50th year of our international participation in motorsports, and we are looking forward to the start of F1 racing at Fuji Speedway in Japan.

"Be contributive to the development and welfare of the country by working together, regardless of position, in faithfully fulfilling your duties." "Be at the vanguard of the times through endless creativity, inquisitiveness and pursuit of improvement." These are the words of Sakichi Toyoda, founder of the Toyota Group. In this milestone year, each employee should consider the significance of these words, always bear in mind a sense of gratitude toward all stakeholders, and do their very best in their work to provide customers and society with a sense of safety and happiness.

Finally, I would like to take this opportunity today to call on your further support and guidance in the future.

Thank you very much.
 
An update on GM and suppliers with new batteries:

US: GM awards new hybrid battery design contracts

4 January 2007| Source: just-auto.com editorial team

General Motors has awarded advanced battery development contracts to two suppliers to design and test lithium-ion batteries for use in the Saturn Vue Green Line plug-in hybrid SUV.

One contract has been awarded a Johnson_Controls – Saft Advanced Power Solutions joint venture.

Another agreement was signed with Cobasys, based in Orion, Michigan, a joint venture between Chevron Technology Ventures, a subsidiary of Chevron Corp., and Energy Conversion Devices. Cobasys will work in partnership with A123Systems, a privately held company based in Watertown, Mass., to develop lithium-ion battery technology.

According to Denise Gray, GM’s newly appointed director of hybrid energy storage systems, the companies will be challenged to prove the durability, reliability and potential cost at mass volumes of their technology.

“Thanks to critical relationships with the US government, collaborative research with Ford and DaimlerChrysler under the United States Advanced Battery Consortium (USABC), significant progress has been made in battery research,” said Gray.

“But a lot of testing and development is still needed. Together, with our suppliers, we intend to address the issues relating to thermal management, storage capacity, recharge times, driving range and cost reduction.”

The two test batteries, one from Cobasys – A123Systems and the other from Johnson Controls – Saft, will be evaluated in prototype Saturn Vue Green Line plug-in hybrids beginning later this year. While both are lithium-ion batteries, the chemistry differs significantly. The suppliers also use unique methods in the design and assembling of the battery packs.

GM will be looking for more partners to bring lithium-ion technology to production. “It’s important to point out that these two agreements are by no means the only avenues we’re pursuing,” Gray said.

“We are fully committed to forging the necessary partnerships to produce battery solutions that will meet our aggressive vehicle programme targets.”

GM announced at the 2006 Los Angeles motor show last November its intention to produce a Saturn Vue Green Line plug-in hybrid that has the potential to achieve double the fuel efficiency of any current SUV.

In addition to plug-in technology and a lithium-ion battery pack when ready, the Vue Green Line will use a modified version of GM’s 2-mode hybrid system, powerful electric motors and highly efficient electronics to achieve significant increases in fuel economy.

GM is co-developing the two-mode hybrid system with DaimlerChrysler and BMW for use in front-, rear- and four-wheel drive applications in an array of car and truck models.

The two-mode system debuts later this year in the Chevrolet Tahoe/GMC Yukon Hybrid SUVs.
 
And more detail from one of the supplier mentioned in the above post:

Cobasys, A123 Partner to Develop Lithium Ion Hybrid Vehicle Battery

Source: PR Newswire
[Jan 03, 2007]


SYNOPSIS: This initiative will complement Cobasys' strong current production battery system product offerings with A123Systems lithium technology allowing its customers expanded choices for hybrid electric vehicle programs.



Cobasys and A123Systems announced today that they have signed a memorandum of understanding to enter into a partnership to develop, manufacture, sell, and service lithium ion energy storage systems for hybrid electric vehicle (HEV) applications. The scope of the agreement will include joint development, marketing and supply of A123Systems nanophosphate lithium batteries and Cobasys systems integration and manufacturing of battery systems for HEV markets.

To support customer programs in transportation markets, Cobasys will act as the tier one supplier providing the technical assistance and expertise for the design and development of battery system products including: packaging, thermal management, wiring, electronics and control algorithms. Cobasys will help develop the requirements and specifications to meet the integration needs of customers and partners and will provide the validation testing of fully integrated lithium battery systems. A123Systems will manufacture and supply its automotive-class nanophosphate lithium ion cells and technology.

"We are excited to have A123Systems as a partner," stated Thomas S. Neslage, Cobasys President & CEO. "The agreement to unite Cobasys system expertise with A123Systems lithium technology further exemplifies our vision to be recognized as the world's most admired energy storage integration solutions company."

This initiative will complement Cobasys' strong current production battery system product offerings with A123Systems lithium technology allowing its customers expanded choices for hybrid electric vehicle programs.

"We look forward to working with Cobasys to introduce lithium ion into the automotive market," said David Vieau, A123Systems President and CEO. "This partnership will provide the market with game changing performance to further accelerate the adoption of hybrid electric vehicles."

"Our partnership presents an enormous range of potential benefits for the rapidly growing HEV market. We look forward to working closely with A123Systems to provide leading edge solutions to maximize the opportunity afforded by the synergy of the two companies," said Ivan Menjak, Cobasys General Manager for Planning and Business Strategy.

About Cobasys

Cobasys designs, manufactures and integrates advanced battery system solutions for transportation markets, including Hybrid Electric Vehicles (HEV), Electric Vehicles (EV) and 36/42 Volt applications and to stationary markets, including Back-Up power supply systems for Uninterruptible Power Supply (UPS), Telecom and Distributed Generation markets.

Cobasys is a joint venture between Chevron Technology Ventures LLC, a subsidiary of Chevron Corporation (NYSE:CVX) and Energy Conversion Devices, Inc. (NASDAQ:ENER) .

For more information about Cobasys visit their website at www.cobasys.com .

About A123Systems

A123Systems has quickly become one of the World's largest suppliers of high-power lithium-ion batteries. Based on the Company's patented nanophosphate technology, the batteries deliver previously unattainable levels of power, safety and life. Applicable to a wide range of industries, A123Systems' products allow OEMs expanded flexibility in system design, removing many traditional technology constraints. Founded in 2001, A123Systems' proprietary nanoscale electrode technology is built on initial developments from the Massachusetts Institute of Technology.
 
An article on Honda:

Highlights include that Honda could take over number two from Nissan in Japan and also looking for antoehr global car that coudl be a Hybrid.

INTERVIEW - Honda wants one more global car to step up growth
Tue Dec 26, 2006 4:46 PM IST

By Chang-Ran Kim, Asia auto correspondent

TOKYO (Reuters) - The head of Honda Motor Co. said on Tuesday he wanted one more global car in the auto maker's line-up to reach the next level of growth, rather than rely on many low-volume models catered to specific regions.

Honda, which could nudge past Nissan Motor Co. as Japan's second-biggest auto maker this year, is known for its lean product line-up, especially compared with domestic rivals Toyota Motor Corp. and Nissan.

The Civic and Accord sedans, the Fit hatchback and the CR-V crossover -- the four models Honda considers "global", or sold in at least three distinct regions -- last year accounted for 60 percent of its total sales combined.

"If we had one more global model, we should see stepped-up growth," Chief Executive Officer Takeo Fukui told Reuters in an interview at Honda's headquarters. "That's the next step for us."

Honda this year mapped out plans to catapult car sales to at least 4.5 million units in 2010, or up 34 percent from 2005.

Fukui said he didn't envisage a fall in the number of models, but added he didn't want to expand Honda's line-up too much -- a move that would decrease production efficiencies and raise per-unit costs.

One example of that model could be the next-generation, low-cost hybrid car that Honda has promised for a 2009 launch, he said. Honda has said that car would be built on a new platform, with a sales target of 200,000 units a year globally.

Although Honda expects to sell half of that in North America, Fukui said building the model there was not a good idea because it would lower the local procurement level of its components from the targeted 80 percent. Toyota began building its Camry hybrid in Kentucky this year, but imports the main hybrid system components from Japan.

"More important than building a hybrid car in North America is to keep the level of local content at a minimum 80 percent, and not depend on exports," he said. "In that sense, hybrids aren't an appropriate choice for localisation."

In a somewhat contradictory move, Honda is also looking to beef up its offering of 660cc minivehicles, which are only sold in Japan, as the cheap, lower-tax cars expand their share of the domestic market.

Fukui conceded this was not ideal for boosting efficiencies, but said it was conceivable that a new minivehicle platform could become the base for a small global car to fill the segments below the Fit subcompact.

"We need to think about how to apply the technologies we develop in Japan for our overseas expansion," he said.

MORE ACQUISITIONS ON RADAR

To strengthen its minivehicle business, Honda last week turned auto parts and minivehicle maker Yachiyo Industry Co. into a subsidiary, raising its stake to over half from 34.5 percent.

Fukui said Honda was not considering other similar moves, stressing that Yachiyo was a special case since it assembles vehicles rather than just manufacturing components.

But he added that Honda was looking at the possibility of turning independent parts makers into affiliates by taking a stake of at least 25 percent as a way to pre-empt unwanted takeovers by investment funds or rivals.

"There are many (parts) companies that are crucial to us from a competitive standpoint and that we may have to acquire," Fukui said, referring to companies that supply key value-added parts or those that are the sole source of certain components.

"We need to consider the risk of having these companies acquired by someone else, or falling victim to an accident or disaster, which would stop the flow of supply," he said. He stopped short of identifying potential targets.

One key component likely to become a competitive tool in coming years are batteries for hybrid and other electric cars.

Noting that the market for hybrids was likely to grow as auto makers aim to meet stricter fuel-economy regulations around the world, Fukui said a strengthening of ties in some form was conceivable with embattled electronics maker Sanyo Electric Co., which makes batteries for hybrid cars.

Rival Nissan said this month it was considering a joint venture with electronics giant NEC Corp. to develop and produce lithium-ion batteries for hybrid and other electric cars. Toyota, the leader in gasoline-electric hybrids, has a similar venture with Matsushita Electric Industrial Co.
 
The Hottest Hybrids for 2007

The Hottest Hybrids for 2007

Hybrid vehicle sales catapulted more than 139 percent from 2004 to 2005 after increasing 81 percent from 2003 to 2004, according to R.L. Polk and Company. But they remain only slightly more than one 1 percent of the new-vehicle market.

California accounts for more than 26 percent of new hybrid registrations, with the L.A. area alone having 11.5 percent of 2005 registrations, according to R.L. Polk. It’s not just a West Coast trend, though: New York, Boston and Washington D.C. are also hybrid hot spots.

The 2007 model year promises further growth for hybrid vehicles — both in terms of the number of models and market share. General Motors will launch several hybrid SUVs, while Lexus debuts a range-topping large luxury sedan with a hybrid V8 to compete against other automakers’ V12s.

If these trends continue, gas/electric hybrid powertrains are destined to become options in plenty of popular vehicles over the next few years, which means drivers will get more power and better fuel economy. And isn’t that what we all want?

Here are the hottest hybrids for 2007:

2008 Ford Escape Hybrid
The redesigned Ford Escape boasts a higher hood and beltline for a more rugged look. The interior features seats made entirely of post-industrial, recycled materials and a suite of airbags. This is the first Ford to use the automaker's new Ice Blue dashboard lighting color scheme. The Hybrid carries a 2.3-liter four-cylinder engine and an electric motor, drawing 155 combined hp; the non-hybrid is a 2.3-liter V6 generating 153 hp.

2008 Lexus LS 600h L
While European luxury automakers put out increasingly powerful and gas-guzzling V12 engines, Lexus has opted for a hybrid powertrain in its new top model. The LS 600h L features the world's first full-hybrid V8, a 5.0-liter engine mated to two electric motors. Together they deliver 430 hp to all four wheels. The car debuts as a 2008 model and will only be sold in a long-wheelbase version.

Saturn Aura Green Line
The Aura Green Line will feature a 164-hp 2.4-liter four-cylinder gasoline engine paired with an electric motor/generator. This setup, which is the same as on the soon-to-be-replaced 2007 Saturn Vue Green Line compact SUV, cannot run on battery power alone. The system will boost fuel economy by 25 percent versus a Saturn Aura XE by shutting down the gasoline engine during temporary stops and upon deceleration, as well as by supplementing the gas engine during full-throttle acceleration. Production will likely begin in March.

Saturn Vue Green Line
While the Saturn Vue's basic design has been around for a while, the Vue Green Line's high-tech powertrain makes it considerably more attractive. With GM's Belt Alternator Starter (BAS) hybrid system, the Green Line pairs a frugal 2.4-liter four-cylinder engine with an electric motor/generator system, together making about 170 hp. Despite being a truncated hybrid system, preliminary EPA estimates of 27 mpg city/32 mpg highway are impressive, as is the $23,000 base price.

2008 Chevrolet Tahoe Hybrid / GMC Yukon Hybrid
A hybrid version of the Cadillac Escalade will go on sale sometime in the first half of 2007 as a 2008 model. It will likely use a smaller, more economical V8 than the Escalade's standard 6.2-liter unit, hooked up with a two-mode hybrid system that will also be used in the Chevrolet Tahoe and GMC Yukon. Fuel economy gains of 25 percent in city driving are likely, with smaller gains on the highway.

SOURCE: MSNBC.com
 
An Update on Nissan and US Tax credit

US: Nissan Altima Hybrid qualifies for tax credit
By Automotive World staff writer (ANK)
19 January, 2007
Source: Automotive World

The United States' Internal Revenue Service (IRS) has officially certified the new Nissan Altima Hybrid as a hybrid vehicle. This means that customers purchasing the vehicle this year qualify for a tax credit of US$2,350, according to The Associated Press.

The IRS says that if customers purchase the vehicle by the end of the first quarter, they will get a full credit. If the vehicle is purchased in the second and third quarters of the year, customers will get up to 50% of the amount, while they will get 25% back if the buy an Altima Hybrid in the fourth quarter.
 
Toyota Update

US: Toyota to unveil new Highlander and Highlander Hybrid at Chicago motor show
By Automotive World staff writer (ANK)
22 January, 2007
Source: Automotive World

Toyota will introduce the all-new 2008 US model year Highlander and Highlander Hybrid SUVs at the Chicago motor show on 7 February but has issued no other details.

The model debuted in Japan in 2000, where it is sold as the Kluger, with the Kluger Hybrid joining it in 2005. Both use the architecture of the fifth generation Camry. All Kluger and Highlander versions are built in Japan at Toyota's Kyushu plant.
 
Chrysler Update on Hybrid

Note: The Hyrbid Trans is from GM Powertrain it is not clear from this article.

Hybrid Durango Switched On
By Eric Mayne
WardsAuto.com, Jan 17, 2007 9:44 AM

DETROIT – Chrysler Group begins pilot production this month of the Durango Hybrid, its first gasoline-electric vehicle, Frank Klegon, executive vice president-product development, says.

Klegon also confirms the powertrain’s electric motors will be mated to Chrysler’s trademark 5.7L Hemi V-8. Factoring in the Hemi’s Multi-Displacement System that shuts down cylinders when not needed, the hybrid powertrain will offer a fuel economy improvement of up to 30%.

This portends combined city/highway performance of 20.6 mpg (11.4L/100 km) for the rear-wheel-drive Durango and 19.4 mpg (11.9L/100 km) for its 4-wheel-drive variant.

“Things are moving right along,” Klegon says of the hybrid’s development, adding its complexity requires a phase-in that is “a little bit longer” than a conventionally powered vehicle.

Series production is expected to begin in the fourth quarter of this year at Chrysler’s assembly plant in Newark, DE. Ironically, Newark is the plant mentioned most often in reports as a likely candidate to close when the auto maker reveals its latest restructuring initiative next month.

Klegon is mum on the subject.

Meanwhile, the jury still is out on plans to build a hybrid version of Durango’s platform-mate, the newly launched Chrysler Aspen.

“It’s a decision we haven’t made yet,” Klegon tells Ward’s. “But it’s something we can do easily. It depends on market conditions, not engineering.”

Chrysler’s hybrid system was developed in conjunction with a $310 million partnership involving General Motors Corp. and BMW AG. GM launches its first product, also a fullsize SUV, later this year, while BMW has not yet announced its intentions.

Chrysler can expect to generate some buzz for using its high-profile, performance-oriented Hemi as the foundation for its hybrid powertrain.

“Hemi is a great brand,” notes Global Insight analyst John Wolkonowicz. And it could pay dividends for Chrysler as a hybrid by offering – at least on the surface – the best of both worlds, performance and fuel economy.

Hybrids have become fashionable, Wolkonowicz says, adding: “Fashion is what the industry’s all about.”

And a hybridized Hemi would satisfy buyers concerned about image. For many consumers, Wolkonowicz says, “it’s not about being eco-friendly, it’s about looking (as if) you are.”

This year, for the third consecutive time, the 5.7L Hemi is on Ward’s 10 Best Engines list. The prodigious powerplant also is available in a 6.2L configuration.

George Murphy, Chrysler Group senior vice president-global marketing, says Hemi take rates have leveled off, but they remain strong.

“We were high at 65% when it launched,” Murphy says of the engine’s 2005 introduction. “Last year, we were around 50%. Now (in 2007), it will probably be around 40%.”
 
An article about electric vehicles

Electric car engineering center will bring jobs to Rochester Hills
Web-posted Jan 12, 2007

By JOSEPH SZCZESNY
Press Automotive Editor

DETROIT - A fledgling Silicon Valley company specifically created to revive the electric car is opening an engineering center in Rochester Hills.

Martin Eberhard, chief executive officer and founder of Tesla Motors, said Thursday his company has already hired a dozen engineers to staff the new technical center.

"I haven't even been there yet," Eberhard said after the third annual automotive breakfast sponsored in connection with the North American International Auto Show by Inforum, formerly the Women's Economic Club.

Eberhard, however, said he expects the staff in the new Rochester Hills center to grow to about 60 by the end of the year. Tesla is joining a network of relatively small, high-tech companies that has sprung up in the past couple of years along M-59.

Eberhard said the Rochester Hills staff is focused on Tesla's "White Star" program, which is expected to do the basic automotive engineering for a vehicle that can carry more than two people and would extend Tesla's product range into sedan/crossover territory.

"We're closing the deal on the building this week," he said. "We're deep into the engineering on White Star and staffing up like crazy. We're looking to hire chassis engineers, body engineers and suspension engineers, not so much on the power plant.

"If you want to hire good automotive engineers, you have to come here," said Eberhard, who made a fortune during the high-tech boom that flourished in California's Silicon Valley during the 1990s when he helped launch and manage two successful start-up companies.

"The governor's also making us think about manufacturing White Star in Michigan. She is very persuasive," he said. "To be honest, we weren't thinking about Michigan before this for a variety of reasons."

Eberhard said Tesla's goal is to produce an electric vehicle that will sell for around $50,000, or about half the price of the all-electric Tesla Roadster, which will retail for $92,000 when it goes into production in England next year.

The Tesla Roadster has already turned heads across the United States. Dan Neil, an auto critic for the Los Angeles Times, said, "The Tesla Roadster delivers on its promise, which might be summarized as stupid fun for smart people."

GM Vice Chairman Robert Lutz recently told reporters he would like to get one, and Time magazine named the car, which it described as pure California, as one of its "Best Inventions of 2006."

The electric Tesla goes from zero to 60 mph in four seconds and has a top speed of more than 130 mph while running on an array of lithium-ionbatteries. The electric car also has a range of 250 miles on the highway.

Lithium ion batteries, which are widely used in cell phones and laptop computers, extend the range of so-called plug-in electric vehicles that can be recharged from a standard, 110-volt wall socket.

Eberhard said during his presentation that electric vehicles already have attracted considerable interest both from people interested in protecting the environment and from people who are concerned about the U.S. dependence on imported oil.

The Toyota Prius hybrid has been successful because it makes a statement about values, Eberhard said. "People are buying these vehicles because they make a moral statement," he said.

Tesla, which was founded in 2003 and has about 140 employees in San Carlos, Calif., now has fully paid orders for 270 Roadsters, said Eberhard, who has raised $27 million from venture capitalists to finance the venture. Tesla will probably initiate a second round of fundraising later this year, he said.
 
Prius Updates

Toyota Adds Incentives to Boost U.S. Prius Sales 50% (Update3)

By Alan Ohnsman

Feb. 5 (Bloomberg) -- Toyota Motor Corp., the leading seller of hybrid autos in the U.S., is offering its first low-interest loan and lease incentives on the gasoline-electric Prius to boost sales by at least 50 percent this year.

Toyota is luring buyers with interest-free loans for 24 months and three-year leases as low as $219 a month, Ernest Bastien, vice president of U.S. vehicle operations for the Toyota City, Japan-based automaker, said in an interview today. The incentives began last month and will continue indefinitely.

``We're going to promote affordability and availability,'' Bastien said. Initial ads touting the deals will be expanded this month.

The incentives mark a shift in Toyota's strategy. For the past three years, months-long waiting lists have prompted some dealers to mark up prices by $1,000 or more. Now, additional manufacturing capacity has allowed Toyota to boosts its sales goal for the Prius to at least 160,000 this year, from 106,971 in 2006.

The premium charged by dealers over the suggested retail price ``is one of the biggest complaints for consumers about Prius,'' said Jesse Toprak, director of market forecasting for Edmunds.com, an automotive data Web site based in Santa Monica, California.

The move also reflects Toyota's effort to recast the Prius as a car for all drivers, not just those focused on the environment, Bastien said. He dismissed suggestions that the incentives reflected weakening demand.

Base Price

The 2007 model Prius has a base price of $22,175, excluding options such as a navigation system and rear-view camera.

Last month, the average Prius sale price fell to $25,340, from a peak of $26,473 in May 2006, according to Tom Libby, an analyst for research firm J.D. Power & Associates of Westlake Village, California.

Toyota has a sales goal of 430,000 hybrids worldwide in 2007, more than any other automaker. It wants to sell 1 million by early next decade.

Don Esmond, senior vice president of U.S. sales, told dealers today at the National Automobile Dealers Association in Las Vegas that the company's target for overall U.S. hybrid sales, including the Prius and Camry, is 260,000.

Toyota's U.S. sales unit is based in Torrance, California. The company's American depositary receipts fell 81 cents to $130.46 at 4:26 p.m. in New York Stock Exchange composite trading. They have risen 27 percent in the past 12 months.

Supply

The Prius supply at Toyota dealerships began growing in late 2006, based on an increase in the number of days needed to sell, or ``turn,'' a vehicle, Libby said. That figure was 24 days last month, up from seven days in October.

``There has been a softening in Prius prices already,'' Libby said in an interview.

Declining prices and a larger supply at dealers will sway consumers who were interested previously but didn't buy one, Bastien said.

``There is huge interest out there, and we think that better affordability and better selection at dealers is going to get a lot of people off the fence,'' he said.

Previous Lease Deal

Toyota in 2003 briefly offered a lease promotion on Prius to sustain sales of an outgoing model. A redesigned version went on sale the same year.

Critics of Toyota's hybrid strategy, including Nissan Motor Co.'s Chief Executive Officer Carlos Ghosn, have said the technology is too costly for manufacturers and offers too few benefits to consumers who have to pay at least $3,000 more for hybrids than equivalent models with only gasoline engines.

``I'd have to assume Toyota has managed to get economies of scale with production to get cost out of their hybrid system that no other company has at this point,'' said Libby. ``It really puts them much further ahead of the pack.''

Toyota's share of the U.S. hybrid market in 2006 was 76 percent. It was followed by Tokyo-based Honda Motor Co. at 15 percent and Ford Motor Co., of Dearborn, Michigan, at 8.9 percent.

Prius is already Toyota's third best-selling car in the U.S., behind the Camry and Corolla.

To contact the reporter on this story: Alan Ohnsman in Los Angeles at [email protected]
 
Ford Escape Updates

RUMBLE SEAT / DAN NEIL
To the rescue
The revamped Escape hybrid gives Ford a much-needed victory. Perfect? No. Revitalizing? Definitely.
DAN NEIL
January 31, 2007

I anthropomorphize cars. I can't help it. Some overly empathetic fold in my brain wants to make a steel-and-glass thing into a character, a persona, an avatar, a material semblance of the people and the company that built it. If you've walked through as many car factories as I have, you won't forget that behind even the most unlovely and unloved vehicle there are 1,000 people pulling their guts out to make it great, and trying to keep their jobs besides. For a critic, all this is supposed to be inadmissible evidence — what matters is the thing itself — and yet, I'd have to be made of stone not to register the desperate circumstances from which some vehicles emerge.

I cry at puppy shows. I am not made of stone.

The redesigned 2008 Ford Escape now arriving in showrooms is not all it could have been. In the fastest-growing, most competitive segment in the market — that is, small SUVs/crossovers, including this-minute designs like the Toyota RAV4, Mazda CX-7, Hyundai Santa Fe, Honda CR-V and the coming-soon Saturn Vue — the Escape gets by with an exterior and interior remodeling, a fluffing of the equipment list, a slightly lower base price and bigger wheels. The powertrains and chassis bits remain fundamentally the same as when the Escape debuted six years ago.

Since then, the Escape has sold more than 1 million copies (that's the good news) but in those same years Ford Motor Co. has taken it in the neck, brutalized by rising gas prices and steep declines in sales of its cash livestock — full-size SUVs and trucks. In the shadow of a $12-billion loss in 2006 and a traumatic restructuring of its North American operations, Ford is in pretty sorry shape.

Inevitably, these travails have put a crimp in product development, and nowhere is that clearer than in the Ford Escape Hybrid. Three years ago when the gas-sipping variant debuted, I was assured by the powertrain engineers that — though the first generation shared patents and similar architecture with Toyota's Hybrid Synergy Drive (Prius) — the next generation would be more aggressively efficient and more distinctively Ford's own. That didn't happen, and I can only attribute that to an R&D dollar deficit.

And yet — here's where the anthropomorphizing comes in — the Escape Hybrid puts up a heroic fight against these lowered expectations. This is a likable, even lovable, little truck, one of the few SUVs that combine a decent ability to reach the great outdoors with some demonstrable concern for it. The Escape Hybrid is the most fuel-efficient SUV (or Compact Utility Vehicle, CUV) out there, with a combined EPA rating of 32 miles per gallon (with front-wheel drive) and 28 mpg (all-wheel drive). That translates to about a 30% advantage over the class as a whole. Depending on how you configure your personal values, that kind of advantage will likely trump whatever slights of refinement and elegance there might be.

Meanwhile, if sentiment doesn't convince you, perhaps hard cold cash will do the trick. Because Ford, unlike Toyota, has yet to reach the hybrid tax credit sales threshold of 60,000 vehicles, Escape Hybrid buyers can get a maximum $3,000 federal tax credit (on FWD models) and $2,200(on AWDs). California buyers also enjoy the vehicle's extended warranty: 10 years or 150,000 miles on the nickel metal-hydride battery.

And — though I realize I might be the last living soul to care about these things — the Escape also has excellent ground clearance (8.6 inches with AWD, second only to the Jeep Liberty) and respectable approach and departure angles. For me, the Escape Hybrid squares a circle that bedevils SUVs generally. If you, Mr. Nissan Pathfinder, bristling with kayaks and carbon-fiber mountain bikes, love nature so much, how come your truck only gets 18 miles per gallon?

Ford's designers turned up the machismo on the Escape, burnishing it with the same outdoorsy flannel as the Explorer and Expedition. The higher beltline, level hood line, oversized wheel wells, blacked-out B-pillar, serrated rocker panels and bluff grill — now with chrome orthodontia like the Explorer — all give the Escape a grittier, all-terrain mien. Roof racks, 16-inch cast-aluminum wheels, fog lights and smoked-out windows are standard on the Hybrid. The redesigned Escape bears a passing resemblance to Land Rover's upcoming LR2 (integrated front bumper clip, overall profile), but this cannot be a bad thing, except in aerodynamics.

The interior has likewise been given a corporate makeover. The soft lines and jelly-like buttons have been replaced by the strict, orthogonal design of the central console and Ford's tile-like switchgear. The LCD (nav/audio) screen, so small as to be unusable in the previous model, is larger and friendlier. On the top of the dash is a small LED info screen for climate/ambient/audio readout. That's new.

With its two-tone color scheme, richer neoprene-like surfaces, pistol-grip shifter and ice-blue instrument lighting, the Escape's interior represents a timely improvement over the 2007 model, though weighed against the competition, it still feels victimized by cost-cutting.

Ergonomically, though, the Escape cabin is spot on. The seats are comfortable and supportive, the outward views commanding. The rear seats are family- and car-seat-friendly. (And eco-friendly: According to Ford, the Escape is the first vehicle to use 100% recycled materials for its cloth seats.) Little betrays the hybrid-ness of the Escape Hybrid except the loss of a couple of cubic feet of cargo space behind the rear seat due to the placement of the 330-volt battery.

For 2008, the "strong" hybrid hardware remains virtually unchanged. The engine is a 2.3-liter inline four-cylinder, Atkinson-cycle engine producing 133 hp at 6,000 rpm. Under 25 miles per hour and depending on demand, the Escape Hybrid can glide along Flying Dutchman-style on its 94 hp (70 kW) electric motor. Put both power plants online through the Escape's planetary gearset transmission and they make a net 155 hp, enough to spirit the car to 60 mph in less than 10 seconds with a minor symphony of hums, warbles and burrs. The AWD-equipped Escape Hybrid pays a weight penalty of 324 pounds compared to the gas-powered model, and you can definitely feel it in acceleration or high-speed cornering.

Denied the chance to clean-sheet the vehicle, Ford focused on smaller refinements. The vehicle is loaded up with sound-deadening materials (thicker carpet, acoustic-laminate windshield glass) that make the Escape noticeably quieter — 15% quieter, says Ford.

The Hybrid's engineers also recoded the engine-transmission software to smooth out transitions between electric and gas power plants.

Curiously — and inexplicably, as far as I'm concerned — the gas-powered Escape has reverted to rear drum brakes. Fortunately, the Hybrid still uses rear disc brakes, and the brake performance is quite good, even if the pedal is a little touchy. Meanwhile, the Hybrid's all-electric power steering unit has migrated to the gas-powered models. Unfortunately, the Escape Hybrid doesn't have an all-electric air-conditioning system; for the A/C to stay on, the gas engine has to be kept running.

While we're surveying the equipment list, it's worth noting that Ford's Roll Stability Control — now standard on gas models — isn't available on the Hybrid, due to an incompatibility with the regenerative braking electronics. I hope Ford's pocket-protector squad sorts that out soon.

Plucky, over-achieving if under-funded, better than it ought to be but not quite as good as it might have been, the Escape Hybrid runs on gas, electricity and no small amount of charisma. Considering how up against it Ford is these days, it's hard to see this SUV as anything short of a triumph. The irony is that this is just the sort of vehicle that can ultimately save Ford.
 
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