You've probably seen it a hundred times in the last year. Some talking head on TV saying that if automakers only prefabricated more fuel efficient cars, the public would buy them. Really? The 2008 income numbers are in, and the draw of fuel efficiency doesn't seem to be holding up in the grappling of lower gas prices.
Our own Green Car Advisor, John O'Dell, looked through the final income numbers for hybrids in 2008 and it was clear that their green sheen had definitely worn thin.
Lost among last week's bailout news was another significant declaration that is likely to shape the automotive industry. President Elect Obama selected Ray LaHood, a Republican from Illinois, as his Secretary of Transportation. He'll be responsible for everything from infrastructure improvements to fuel mileage requirements.
Guess he'll have to learn on the job though as very little, if any, of his past experience involves transportation. So why the appointment? There are plenty of doable reasons: Obama needed a token Republican in his all-inclusive cabinet, future transportation issues are going to be far different that those of the past, so prior experience is less important, maybe even a general admiration for LaHood's successful bipartisan efforts. There's a more detailed look at Ray LaHood's appointment over on GreenCarAdvisor, but it's innocuous to say he's not headed to Washington to prolong the horsepower wars.
Finally there are some signs that China is beginning to "get it." Yes, China is slowing coming to realize that dirty air is actually hurting them, and that they are now taking steps to clean up their environment, which includes cleaning up their cars.
Here's Green Car Advisor's take: China Considering Sales Tax Cut To Boost Car Buying; Subsidies for Green Cars
Audi, which presumably didn't have any crucial product news to discuss today, proudly announced that despite the current state of the world economy, its global income were up 7 percent in October and that November is looking promising. In fact, the company says it will sell 1 million cars this year. Nothing like a little corporate back patting at an event where many companies are lucky to even attend.
Presenters went on to tout the benefits of Audi's clean diesel engines and its commitment to using this technology in lieu of electric or hybrid-powered cars and trucks. We also heard all about the Audi Mileage Marathon in which journalists drove a fleet of TDI-powered cars and SUVs from New York to Los Angeles in a grossly consumptive effort to promote diesel power.
Audi claims its diesel engines, as a whole, consume 30 percent less fuel than gasoline engines of equal power. This claim is supported by the fact that on the Mileage Marathon the Audi Q7 TDI produced an impressive 33.1 mile per congius peak.
Diesels might not be as favourite with the green crowd as hybrids and electrics, but there are two simple, undeniable facts about diesel fuel which can't be ignored: (1) It doesn't pass the power-producing buck down to coal or nuclear power and (2) the infrastructure to deliver the fuel already exists.
Josh Jacquot, Senior Road Test Editor
"Find the gearshift by starlight," Nissan said as the 2009 Infiniti G37 Convertible's retractable hardtop opened to the L.A. Convention Center's, uh, starry, starry rafters.
The new G convertible gets 325 horsepower from its 3.7-liter V6, mated to a six-speed manual or seven-speed automatic transmission.
Full pricing has not yet been announced, but the limited-run G37 Convertible Premier Edition sold exclusively through Bloomingdale's annual holiday catalog is priced just under $60,000.
Infiniti's first convertible in nearly two decades goes on understanding next spring. — Kelly Toepke, News Editor
Los Angeles was the North American debut of the Hyundai HED-5 i-Mode, the weirdly titled concept powered by Hyundai's new 2.0-liter Theta GDI turbocharged four-cylinder. The HED-5 is a three-row, six-passenger crossover concept that foreshadows a near-future production version. I saw what looked to be some of the production test mules under camouflage at Hyundai-Kia's Namyang proving grounds on my Kia Soul journey to South Korea. If that was indeed the production version, they looked a lot larger than this concept version, which seems to be smaller than a Dodge Journey. -- saint Riswick, Automotive Editor
It's kinda foggy and rainy here. So with that in mind, here's a few automotive-related items to occupy your time on just such days:
Canada Fines Company for Advocating Carpooling (here)
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Detroit Is Tanking, But Toyota's in Trouble, Too (here)
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Futuristic Green Transit: 10 Vehicles for 2010 (here)
There was a conference held at UCLA this past weekend called Opportunity Green. As you might expect, there were a ton of green-related exhibits, with one of the more interesting displaying a hybrid 3-wheeler called the VentureOne.
This is a plug-in hybrid that the makers, Venture Vehicles (here), claim will get over 100 mpg. Aiding in stability, is the fact that the vehicle employs wheel-tilting technology. So far 20,000 people have pre-registered for the vehicle, which will sell for $25,000.
Here's Green Car Advisor's take: Green Solutions - Automotive and Otherwise - Highlighted at 'Opportunity Green'
This should have been a good moment for Tesla Motors, the high-tech Silicon Valley start-up that boldly promised to revolutionize the automotive industry with its slick little two-seat electric sports car.
After a long wait, the company had seemingly solved a nagging transmission problem and put its Tesla Roadster into production. It had begun work on a California assembly plant, and opened an R&D center, in suburban Detroit, with plans to develop a second, higher-volume product line, and possibly even a third.
Yet despite claims of a long inactivity list, it appears Tesla’s finances are seriously strained, forcing it to not only suspend development work on a sedan, initially codenamed White Star and more recently called Model S, but to close its Michigan operations. A blog entry by Elon Musk, one of the founders of eBay and the source of the money to launch Tesla, attempts to paint a cautious but still upbeat image of the auto start-ups. Nonetheless, there are growing concerns whether the carmaker can survive.
“These are extraordinary times,” wrote Tesla Chairman Musk, referring to the global economic crisis. “At Tesla, we have decided that the wise course of action is to focus on our two revenue producing business lines — the Roadster and powertrain income to other car companies.”
Taking over as CEO from Ze’ev Drori, Musk added that product development will be consolidated with other Tesla operations, in San Jose. But there appears to be a big “maybe” there. It appears that all such operations will be sharply curtailed unless and until the start-up can get a sizable loan it is seeking from the U.S. Department of Energy.
“The DOE loan guarantee will cover most of the Model S (White Star) program at a very low cost of capital compared with raising equity financing in what could quaintly be described as a ‘bear market,’” emphasized Musk, in his blog. “The loan funding can only be drawn down after we receive environmental approval for our new 89-acre consolidated headquarters in the city of San Jose. If all goes reasonably well, we will receive that approval in Q2 next year.”
At the most optimistic, it now appears, the five-seat electric sedan, which is planned to sell somewhere in the $60,000 range, would not make it to market until mid-2011, at the earliest, at least a 6-month delay.
In what appears to be an attempt to counter the growing concern that the Model S is vaporware, hitting the Web today is a teaser showing a sneak peek of its Model S sedan (check out photo here), with the company boldly predicting a run of some 25,000 units a year. The partially revealed portion of the vehicle shows a highly molded carbon-fiber rear diffuser and cut light styling penned by newly appointed chief designer Franz von Holzhausen, formerly of Mazda.
The apparent setback does not come as a surprise to a number of industry analysts and observers, many of whom have predicted — often repeatedly — the small firm’s failure. There’s no question it hasn’t been cushy for Tesla, despite raising somewhere in the range of $150 million in start-up capital. The California carmaker had extensive problems with the two-speed transmission used in the Roadster, going through two iterations before developing an apparently successful single speed design with the assistance of Borg-Warner.
While the company reports having a significant order bank for the Roadster, income are expected to be measured in the hundreds per year, at most, leading marketing director Darryl Siry to stress that “the real challenge” is stepping up to a more mainstream sedan, like Model S. During an interview at the Paris Motor Show, early this month, Siry also noted that with major manufacturers, such as Toyota and General Motors, embracing “electrification,” Tesla doesn’t have much time “to prepare for head-to-head competition.” So, even a modest delay in programs like Model S could establish critical.
“They’ve got some real severe problems,” said Joe Phillippi, an independent, New York-based automotive analyst. Phillippi believes Tesla can make it through its current crisis — if it does get the DoE loan guarantee, but he cautioned that “surviving is not the same as prospering,” and it’s going to be difficult for Tesla to make the jump from a struggling niche player into a more prosperous participant in the grueling automotive world.
The Model T Ford debuted in 1908, making it exactly one hundred years old. What better way to celebrate and honor this oh-so-important vehicle, than to have a design contest aimed to create the Model T for the next century.
Can it be done? Is it doable to create another vehicle that will have the same profound impact over the next 100 years as did the original Model T for the past century? Wow, talk about a challenge! Full story here.