Hybrid News

More proof Congress is inept?

In my opinion, Congress was very motivated by the Chevy Volt when it came up with its tax credit plan for battery-powered vehicles. GM is an important American company, so this protectionism isn’t surprising.

Original post by Dahcredyns

Fight foreign oil dependency and invest in electrification

Not long ago I suggested new tax credits for non-plug-in hybrid vehicles, but with higher fuel economy standards. Since it’s going to take decades before everyone is driving a plug-in, if ever, America needs other fuel efficient choices in the interim, especially cheaper solutions.

But, instead of raising the fuel economy requirements for a new hybrid tax credit, how about tax credits for natural gas hybrids, including plug-in hybrids?

Elevate the battle against foreign oil dependency, and invest in the electrification of the automobile. Isn’t it time for tax credits for natural gas hybrid vehicles?

Original post by Dahcredyns

Tax credits helped drive the Prius

There is no doubt that tax credits for hybrid cars, especially the Toyota Prius, helped sell these vehicles. But, are new tax credits needed to keep moving these vehicles?

Probably not, considering that most hybrid dealers have been adding massive dealer markups to these vehicles. Of course, if the economy keeps tanking all car sales will suffer.

Still, what about a tax credit for non-plug-in hybrids that rewards significantly higher fuel economy - say for hybrids that achieve at least 60 or 70 mpg combined fuel economy? Or, at least a tax credit for plug-in conversions?

If Congress truly wants to end foreign oil dependency, isn’t a more aggressive, comprehensive incentive program required?

Original post by Dahcredyns

Will a Prius plug-in qualify?

Tax credits for plug-ins are now a done deal, as the President has promised to pass the bailout bill that Congress has now approved. Plug-ins with at least a four-kilowatt battery pack will qualify for a credit ranging from $4,168 to $7,500 depending on the number of kWh’s in the battery pack.

It is know that the Chevy Volt will qualify for the entire $7,500.

Originally, Toyota was against this bill, but the company seemed to change its tune when the kWh battery requirement was reduced. So, it appears plug-in hybrids, such as the Toyota Prius, will also qualify for this credit.

Original post by Dahcredyns

What’s the value of plugging in?

When tax credits for plug-ins become available, neither electric range nor fuel economy will matter, only battery capacity - a move that appears to strongly favor GM’s Chevy Volt versus the Toyota Prius.

However, when it comes to the EPA and CAFE, it’s fuel economy that will matter. And that is the standard that Congress will judge automaker fleet fuel economy.

So why the double standard? Shouldn’t there be just one way to judge plug-ins?

Dan Foley, of the Automotive X-Prize has been suggesting MPGe as a better rating “MPGe is a measure that expresses fuel economy in terms of the energy content of a gallon of gasoline, asking how much energy was delivered to the vehicle, and how far did it go.”

Original post by Dahcredyns

Only about battery capacity, not actual EV range, nor real world fuel economy?

The Senate has passed a new tax bill that will provide tax credits for plug-in hybrid vehicles ranging from $2,500 - $7,500, depending on the vehicle’s battery capacity. To be eligible for the credit, such plug-in vehicles must store at least 6 kWh’s of electricity.

So, battery capacity, not actual EV range nor real world fuel economy, is how Congress judges plug-in quality? Does that really make sense?

Finish: $7,500 plug-in hybrid tax credit passes Senate - Too favorable to Volt?

Original post by Dahcredyns

$3000 - $5000

The House of Representatives has passed a tax credit for plug-in hybrid vehicles as part of H.R 6899. The credit offers $3000 for 5 kWh plug-ins. For every kWh above 5, the credit offers an additional $200 up to a maximum of $5000. Like the same tax credit system that gave Toyota a $3,000 credit for the Prius, the total full credits would be 60,000, then the credit would be cut in half and then quartered.

Still, no reason to get too excited about the details yet. The Senate has yet to put its finger prints on this bill.

Original post by Dahcredyns

To offer less than 6 kWh of electricity?

Yesterday, Robert Wimmer, the National Manager of Energy and Environmental Research for Toyota Motor North America, lobbied the Senate Energy and National Resources committee not to pass new legislation that will give tax breaks to the Chevrolet Volt, or other plug-in hybrids with batteries that hold at least six kilowatt-hours of electricity.

“Toyota believes this approach is counterproductive,” said Wimmer in a statement before the committee. “It will discourage manufacturers from developing and consumers from purchasing ‘blended’ plug-ins that are affordable to the greatest number of consumers.”

So, the plug-in Prius won’t offer 6 kWh worth of electricity? Is it even worth it to make a plug-in hybrid if it doesn’t offer at least 6 kWh? Has GM’s Volt actually rattled Toyota?

Original post by Dahcredyns

Tax credits have helped Altima hybrid sales

The Toyota Prius has not qualified for a tax credit in some time, yet demand far outweighs supply. The demand supply ratio is so out of whack that dealers are adding as much as $5,000 to the MSRP, in addition to thousands worth of dealer add-ons - and they are still selling.

Many other hybrid cars, such as the Honda Civic hybrid and the Toyota Camry hybrid, are selling as fast as they can be produced - also with dealer markups. While a few hundred thousand new hybrids will be added to the hybrid supply starting some time in 2009, if gas prices remain high, these hybrids will probably not just sell easily, but many will sell with dealer markups.

So, are hybrid tax credits still necessary? For what, to help justify dealer markups?

Hybridcarblog has been an advocate of hybrid tax credits for years, but isn’t new thinking required? For example, perhaps the focus should be on plug-in conversions, EVs, or vehicles that achieve at least 80 mpg. Of course, it’s hard arguing against hybrid tax credits when, unbelievably, gas guzzlers STILL qualify for small business tax incentives.

Nonetheless, should Congress create new hybrid tax incentives and, if so, what should be the focus?

Original post by Dahcredyns

Just let Congress manage our economy?

Yesterday, I blogged on how the city of Flint is providing millions in tax breaks to GM to help fund the Chevy Volt, and GM is also seeking millions from the state as well. Likewise, GM is also requesting part of $50 billion in low interest, government backed loans to help in the conversion to vehicles with better fuel economy, such as smaller vehicles and hybrid cars. And, when GM finally starts selling the Volt, it will probably need large tax incentives for consumers in order to make these vehicles affordable.

And, if Ford and Chrysler ever develop real plans to address fuel economy, they′ll need just as much help.

Yet, the pain doesn’t stop there. Automakers claim that CAFE will increase the price of all vehicles significantly. Thus, not only are tax payers committing billions in loans and tax breaks to Detroit, they′re also going to have to pay more for the products their tax dollars are helping to fund.

Without doubt, US automakers provide great jobs for many Americans, but how did things get so screwed up? More important, can the US auto industry really be saved, or are we just delaying the inevitable?

Original post by Dahcredyns

A $5 billion bond for clean energy

A few times per hour I′m seeing Yes on 10 commercials on CNBC. What is Yes on 10?

“Proposition 10 is a five billion dollar bond measure which will reduce California’s dependence on foreign oil; clean our air of asthma and cancer causing chemicals and create thousands of new green technology jobs in California.”

These objectives will be achieved with consumer rebates on hybrid cars, EVs and other vehicles capable of achieving 45 mpg. Additionally, it will help retire old diesel vehicles, add more renewables to the electric grid and fund research.

Hybridcarblog wants to support this measure, but with a $22 billion budget shortfall, we wonder if such a proposition good for California right now, or should bond measures be limited until this massive deficit is under better control?

Original post by Dahcredyns

Large gas-guzzlers still qualify for tax incentives

Democrats are the party for greens, right? So, why are solar tax credits set to expire? Why are tax credits for hybrid cars expiring while tax incentives for huge gas guzzlers are not?

We shouldn’t be surprised according to an interesting chart The Fast Report sent to Hybridcarblog. The chart shows a strong correlation between gas prices and the ratio of small to large vehicle sales. Overall, higher gas prices lead to less guzzler sales, more small car sales and greater US fuel economy. Great for greens, right?

And yet Democrats want to tap into oil reserves, grill oil executives and whatever else to try to lower gas prices, an event that will only lead to more gas-guzzler sales and decreased fuel economy. Contradictions?

Republicans couldn’t run Congress and now Democrats can’t either. Talk, talk, talk. Spend, spend, spend. Man, I gotta run for office. What a job!

Original post by Dahcredyns

America’s automotive “Apollo Project″?

A bipartisan group of US senators is proposing a $20 billion package to help automakers achieve “the goal of transitioning 85 percent of America’s new motor vehicles to non-petroleum-based fuels within 20 years.”

The bulk of the money goes to automakers to both retool and to develop new battery-orientated technologies, including hybrid cars and electric vehicles. Additionally, in the short term, the plan would also significantly increase tax credits for hybrids and hybrid conversions. Of course, the plan also offers a few billion more for biofuels.

While there is a dire need for such an “Apollo Project″, from where will the money come? Who is going to ensure that the tax money isn’t wasted on pork and boondoggles with few conclusive results - Congress? Perhaps I’m just grumpy from driving more than 2000 miles in the last 36 hours, but I can’t help but ask, do automakers deserve such a bailout?

Original post by Dahcredyns

How many years until everyone drives a plug-in?

It takes about 12 years to recycle through today’s fleet of automobiles. Thus, if everyone started buying $40,000 plug-in hybrid vehicles in 2010, it would be about 2022 before almost everyone in America was driving a plug-in.

Of course, if automakers sell even 100,000 plug-in hybrids, collectively, in 2010, or even 2011, I’ll be shocked.

On the other hand, by 2010, Toyota alone could be selling well over a million hybrid vehicles, hybrid vehicles that scale plug-in hybrid costs downward by standardizing electric motors and other electric drive supplies, in addition to helping fund battery technology.

Yet, most hybrid tax credits are now expired, and the only ones being talked about are for plug-in hybrids. However, if Honda comes out with a 50+ mpg hybrid for less than 20,000 next year, and a $3,000 tax credit were added, an under $17,000 hybrid would be affordable for almost everyone, unlike plug-in hybrids. And then there’s the competition.

Have plug-in hybrids become the new fuel cell vehicle - tons of potential, but a little too futuristic?

Original post by Dahcredyns

How many years until everyone drives a plug-in?

It takes about 12 years to recycle through today’s fleet of automobiles. Thus, if everyone started buying $40,000 plug-in hybrid vehicles in 2010, it would be about 2022 before almost everyone in America was driving a plug-in.

Of course, if automakers sell even 100,000 plug-in hybrids, collectively, in 2010, or even 2011, I’ll be shocked.

On the other hand, by 2010, Toyota alone could be selling well over a million hybrid vehicles, hybrid vehicles that scale plug-in hybrid costs downward by standardizing electric motors and other electric drive supplies, in addition to helping fund battery technology.

Yet, most hybrid tax credits are now expired, and the only ones being talked about are for plug-in hybrids. However, if Honda comes out with a 50+ mpg hybrid for less than 20,000 next year, and a $3,000 tax credit were added, an under $17,000 hybrid would be affordable for almost everyone, unlike plug-in hybrids. And then there’s the competition.

Have plug-in hybrids become the new fuel cell vehicle - tons of potential, but a little too futuristic?

Original post by Dahcredyns