Friday Update

I haven't had a whole lot of time lately to update this blog with articles as much as I'd like to... but there are a few in the past few days that I'd like to touch on briefly.

First, I really want to redo my "How Much Does That Hybrid Really Cost" article that I wrote up a few months ago. With the current fuel prices being so low, that article would take on a whole new dimension. The amortization period for a brand new hybrid now must be astronomically high! The huge premium that hybrid buyers were suckered into paying earlier this year when their popularity skyrocketed must be a very painful pill to swallow right now.

Secondly, the 2 most economical hybrids that were sold in the USA are now not elligible for the hybrid tax credit. Yes, the Toyota Prius (which was bumped last year) and Honda Civic Hybrid (which will be axed from the list at the end of 2008) have sold enough cars to be considered mainstream enough to not need any tax credit incentives to sell. What about the cars that are left? Of the 16 still elligible for the credit, only ONE gets better than 33 miles per gallon.

That's laughable!

In fact, 13 of the 16 vehicles left on the list are large, low-mileage SUVs! It's a joke... a totally, hypocritical joke! Half those huge hybrids won't even be around showrooms in a year or two because they aren't selling, even as "fuel efficient" hybrids.

Lastly, some good news!

While GM and Chrysler are busy scrambling to sell their models that nobody wants, Ford is busy looking ahead instead of behind and are continuing to develop their small cars for North America! For anyone that keeps an eye on what they produce at Ford in Europe, this is exciting news! Personally I can't want to see some ST and RS models of the new Focus, Fiesta, and possible even Ka come to showrooms here.

Rallye R.E.A.L.

What: Rallye Énergie Alternative des Laurentides 2008 (or in English: Alternative Energy Rally of the Laurentians 2008) (A "regularity rally" run over open roads with scoring being based on precision of timing and speed, not outright, full-throttle craziness!)

Website: http://www.rallyereal.com/

When: October 2nd, 3rd, & 4th, 2008

Where: Alma, Quebec City, & St-Jerome - Quebec, Canada

Climate change has became a subject of concern whose stake is on the scale of planet. One cannot ignore it, which is why the promotion of alternative means of transport are from now on of crucial importance. The consequences of the massive use of the car in our cities is well known: air pollution, sound pollution, congestion of the downtown areas, accidents, deterioration of the quality of life of the citizens, to name only a few.

Rallye Énergie Alternative des Laurentides 2008 represents the ideal occasion to see various vehicles driven by alternative energies in action at the time of this exclusive rally open to the general public and to help promote other types of energies that that of gasoline.

The rally comprises two stages, over a 2 day period and adding up more than 800 km. The pilots and copilots will have to navigate, and drive their car conscientiously under optimal conditions to obtain minimal fuel consumption while traveling the splendid panoramic route, and to respect the speeds imposed during each test of regularity.

(Translation courtesy of WorldLingo.com & yours truly)

Unfortunately, the 2007 edition was almost exclusively a hybrid affair. There were 2 electric vehicles... one production based, and one home-brew Chevy Cavalier. The rest of the field was made up of Priuses, hybrid Civics & Insights, and 2 hybrid SUVs... a Highlander and an Escape. (Interesting side note: my strictly gas powered, 175 horsepower, sedan can get better highway mileage then either of the EPA ratings for the hybrid SUVs entered.)

This year the event is open to hybrids (yawn - what else?), electrics (Tesla, anyone? Yes please!) as well as vehicles powered by alternative fuels, including biodiesel, natural gas, LPG, etc.

I'm curious how many smarts might be entered this year. The cdi smart can be run on biodiesel, and it puts out a mere 88 g of CO2/km, which is well under the event's regulated limit for biodiesel vehicles of 100 g of CO2/km. And while they don't have a class for gasoline powered high-efficiency vehicles, the regulations state that any car using more than 30% fossil fuels will be limited to 120 g of CO2/km. The petrol powered smart falls under that limit as well.

Sadly I don't own a smart of either type, I can't even come close to affording a Tesla... and since I'll never be caught dead driving a hybrid, I can't enter this event. However if you own a smart cdi and would be willing to hand over the keys and spend the 2 days as a copilot I'd be more than happy to team up. (I'm not holding my breath...)

I'll try to make it into St-Jerome in a few weeks to catch the end of the event and see if anything besides the jellybean snob-mobiles showed up!

50 Liter Challenge

CanadianDriver.com in association with Motoring 2008 held their second 50-Liter Challenge earlier this year. The first was held back in 2005... the good ol' days, back when gas was $0.50/L less than it is now.

The premise is very simple. They took 13 cars - all with a fuel tank capacity of at least 50 liters, and all under $20,000 - filled each one up with exactly 50 liters of fuel, and then drove them until they ran dry. The route chosen took them all over eastern Ontario and even into south-western Quebec over a variety of roads ranging from flat highways in the morning rush-hour to steep hills and forested rural roads in the afternoon. I've driven many of those roads myself and I can say they definitely covered a variety of driving conditions. The only thing not included in the test was stop-and-go city traffic.

So which of the 13 went the furthest on 50 liters? And how far did it manage to go? The most fuel efficient of the group didn't come as much of a surprise to me... but the distance it covered was quite impressive. Over one thousand kilometers on just 50 liters!

You can read about the entire test HERE.

Edmunds.com: Hybrids Aren't the Best Value Over Time

Edmunds.com published THIS article earlier this week, thus confirming what I've been telling people for quite some time... much longer than I've been writing this blog.

Hybrids are over-priced underachievers. There's no two ways about it. They cost far too much and deliver far too little. Or, if we're talking L/100km, then not little enough!

At the current average price across the US, the best value hybrid (Honda Civic) doesn't even make the top 10 is "lowest cost to own". While it's true that hybrids become a better economical choice as gas prices rise, even at a price of $6/gallon the Civic hybrid still doesn't make the top 5. Everybody's darling, the Prius doesn't even make the top 30 at current prices, and only ranks 18th if gas were to cost $6/gallon.

I'm very surprised that all this hasn't been brought up sooner.

Car Buyers More Interested in Gadgets Than Fuel Efficiency

According to the results of a J.D. Power & Associates study released yesterday, hybrid technology vehicles rank pretty high among consumers interest. In fact, 72% of people asked said they were "definitely/probably" interested in hybrid technology. However, once they were told that this technology would add about $5000 to the price of their vehicle, the number if still interested buyers dropped to 58%.

What ranked higher than the fuel efficiency of a hybrid though? Blind-spot detection technology at 76%, and back-up assist at 74%.

Oh great, that's just what the world needs... technology to help incompetent drivers pay even less attention to what they're doing behind the wheel.

Here's what I think of that:


Unless they're installing KITT in my dash, I don't not want my car thinking for me.

But I digress.

I have to wonder where they got the $5000 "average" from though. When I first read the report it seemed awfully cheap compared to the hybrid premiums I've seen, but I figured those were the price differences in American dollars for the American sold cars. So, I did a quick check across a few of the cheaper hybrids in Canadian dollars and came up with the following:

-Honda Civic Sedan:
Conventional: $19,490.00 (w/AC+automatic)
Hybrid: $26,350.00
Difference: $6860.00

-Toyota Camry:
Conventional: $23,400.00 (w/AC+automatic)
Hybrid: $30,660.00
Difference: $7260.00

-Toyota Prius vs Toyota Corolla: (since the Prius doesn't have a conventionally propelled equivalent I'm comparing it against the Corolla, which is Toyota's closest offering)
Corolla LE: $19,900.00 (w/AC+automatic)
Prius: $29,500.00
Difference: $9600.00

Toyota Highlander:
Conventional: $36,900.00
Hybrid: $41,075.00
Difference: $4175.00

Chevrolet Malibu:
Conventional: $22,995.00
Hybrid: $26,995.00
Difference: $4000.00

Chevrolet Tahoe LT:
Conventional: $47,155.00
Hybrid: $66,125.00
Difference: $18,970.00

That's an average premium of nearly $8500.00. While the MSRP for cars in Canada is always higher than in the US, their estimated $5000.00 for the added cost of a hybrid still seems a little low.

One interesting detail I noted while compiling those numbers was that while a Civic Hybrid costs nearly $7000 more than a similarly equipped conventional Civic, the fuel savings are in the range of 30%. If a Civic owner drives 25000 kms per year (~15000 miles) that's nearly $1000 in savings each year at current fuel prices. The Chevy Malibu, on the other hand, only costs $4000 more for the hybrid, but the fuel efficiency is less than 8% better. That's only about $250 per year saved. Honda's hybrid premium pays for itself in 7 years, while Chevrolet's takes about 16 years. (I really hope those buyers are choosing a hybrid to "make a statement", and not to save money...)

Sadly, of all the different features and options mentioned in the survey, clean diesel ranked last. Why? I'm not sure. I mean, who wouldn't want 50+mpg from a conventional (read: simple & uncomplicated) drivetrain?

As Mike Marshall, J.D. Power & Associates director of automotive emerging technologies, said:

One explanation for this may derive from a lack of education with the technology. Many consumers cannot differentiate between clean diesel and traditional diesel fuel—which in the past had a negative connotation with unpleasant vehicle emissions. As consumers become more educated in the benefits of clean diesel through increased product offers launching later this year, interest in the technology may increase.

I suppose the European companies that are starting to make this technology available in North America have along road of re-education ahead of them. The masses are still stuck on the old stereotype of diesels being noisy, smelly, and generally a nuisance. It's a stigma that may take a while to be rid of.

You can read the full report HERE.

How Many Miles (or Kilometeres) Until That Hybrid Starts Paying Off?

As a follow up to the comparison article I wrote about the Toyota Camry last month, I present someone else's viewpoint. AutoblogGreen.com did some similar math with 15 different pairs of vehicles, ranging from the ultra-economic Prius, to the barely-worth-the-effort GMC Yukon.

Is going green worth your money? At best you'd have to drive 97,000 highway miles (over 156,000 kms) before your Civic Hybrid starts saving you some coin. Even driving in the city, where a hybrid supposedly shines, you'd have to drive that Civic over 86,000 miles (138,000 kms) before the hybrid premium was paid off.

What about the Camry? Three hundred thousand highway miles! That's nearly half a million kilometers... City driving is much better in this case at least. You'd only need to cover 70,000 miles (112,000 kms) to break even.

GM products like the Tahoe/Yukon hybrids are an utter joke in this test. You'd need to cover 180,000 miles (290,000 kms) in the city to pay off the extra cost of "going green". The funniest part of that joke is that GM is actually supremely proud of these hybrids and plans to start marketing them hardcore.

Read the rest of the article here.

The writing is on the wall...

I don't know whether to admire the blind tenacity with which the American auto-makers cling to the past, or simply shake my head with bewilderment.

The time when it was cool to drive the biggest, baddest SUV or truck is officially history! The proof is in the numbers. In May, the Ford F-150 was not the most sold vehicle in the United States for the first time in 17 years! Yes, every year since 1991 Ford has sold more F-150s than any other automaker has sold any model. Last month it was outsold by not one, not two... but four other vehicles, all of which are paragons of longevity, economy, and quality. Honda's Civic and Accord, as well as Toyota's Corolla and Camry all sold more in May than Ford's F-150.

And I say it's about time!

Finally, people have woken up and started to make responsible choices. People are slowly realizing that the 12mpg dinosaur in their driveway isn't making them "cool" any more. The average, intelligent consumer no longer admires those SUVs and full-size pickups that everyone wanted to drive to the grocery store just a few years ago.

And it wasn't only Ford that slipped up. All the brands that rely heavily on truck and SUV sales for their numbers had a horrible May. Chrysler, Ford, and General Motors all lost significants sales in May... 28%, 19%, and 30% respectively.

The biggest individual brand name loser? Hummer at -61.7%. GMC was close behind with a loss of over 38%.

That's a whole lot less SUVs we'll all be seeing on the road as time goes on. And eventually, that also means a whole lot less demand for gas, which is what the fuel companies keep telling us is the reason behind all the increases we've been subject to. A decade and a half of irresponsible vehicle buying habits is why we're now all paying between $4.50 and $5.50 per gallon of gas.

And here's where their "blindly clinging to the past" attitude really makes me wonder just how bright these people are. In an article titled "Asian Brands Outsell Big 3 In May" in the Detroit News I read this:

Floundering truck sales caused Ford's market share to fall to 15.6 percent, from 16.5 percent a year ago. The company hopes to boost demand for its trucks by offering employee pricing to everyone on F-150, F-250 and F-350 models this month, ahead of the introduction the redesigned F-150 later this year.

"We've been 31 years running the leading vehicle in that segment," Farley said. "We see this as an important merchandising strategy."

Sales of Ford's best-selling small car, the Focus, rose 53.2 percent in May to 32,579 vehicles, while sales of F-series pickups plummeted 30.6 percent to 42,973. Farley said the Focus outsold the F-series in dealer showrooms, but commercial and fleet sales gave the pickup more total sales.

Commercial and fleet sales (which are what I consider to be the only legitimate reasons to buy an F-150... not simply because someone feels a pickup is cool) are the only thing keeping the F-150 from being outsold by Ford's own economy car. And yet they don't realize that perhaps it's time to move on and start treating the North American automotive more like the rest of the world's markets? Leave the trucks to the contractors, the builders, the people that work with them, and start focusing on making quality cars instead.

And he's not the only ignorant one. From the same article:

May's sales results reflect consumers' general shift away from trucks, but the fact that four cars outsold the F-Series is mainly a reflection of record high gas prices, said Tom Libby, senior director of industry analysis at Power Information Network, a unit of J.D. Power and Associates in Troy.

"At the end of the year, the F-150 will still be the top-selling vehicle," he said. Libby added that high gas prices, which are likely near their peak for the year, encourage people to buy more fuel-efficient vehicles, such as the Civic, while truck buyers are more likely to buy when gas prices fall and incentives increase.

Get with the program man! Gas prices aren't going to be cut in half overnight.

As one writer put it... "gentlemen, that sound you just heard was the canary hitting the floor of your coal mine".