ARCHIVED  March 19, 2004

Hybrid vehicles move into new markets

For those drivers ready for the hydrogen fuel-cell evolution, don’t hold your breath. The U.S. Department of Energy estimates that mass-produced, fuel-cell vehicles will not be available for at least another decade.

But environmentalists take heed: The hybrid electric vehicle, or HEV, is inching its way into the mass market, and many in the industry view the gas/electric combination as an interim solution to the reality of fuel-cell-powered vehicles.

Hybrid electric vehicles combine an internal-combustion engine with an electric motor, allowing the electric motor to assist the engine when accelerating, hill climbing and in stop-and-go traffic, thereby reducing fuel consumption and harmful emissions.

SPONSORED CONTENT

The new wave of HEVs does not need to be plugged into anything to be recharged and promises horsepower and acceleration levels to be similar — if not better — than standard vehicles.

Turning point

“It’s a great turning point in history,´ said Ron Lewis, hybrid specialist for Pedersen Toyota in Fort Collins. “We’ve gone from 1903 to today using the same combustion engine. Fuel-cell power will be our future, but the hybrid is the bridge that’ll take us from what we’re driving now to the fuel cell.”

Currently, only three mass-produced HEV models are available: Honda’s compact Civic hybrid and its two-seat Insight, and Toyota’s mid-sized Prius.

Pedersen Toyota is the second-largest Prius dealership in the region, Lewis said, noting that there is already a five- to six-month wait for the 2004 model, which has a base price of $20,510.

Previous year’s sales were so successful that Toyota increased production levels for the 2004 Prius by nearly 40 percent.

“Toyota’s really made a firm commitment to open this line up,” Lewis said.

In fact, the company’s Lexus line will debut its hybrid SUV model, the RX 400H, sometime this summer, with the Toyota Highland hybrid following close behind with an anticipated market release in early 2005.

Toyota engineers took the single-hybrid system used in the Prius and basically doubled it, allowing for front- to all-wheel-drive capabilities in the SUV lines. The company has been using the dual-hybrid system for nearly two years in Japan in the Estima, a seven-passenger van. Lewis said he expects Toyota to introduce a hybrid Sienna, which is the American counterpart to the Estima, sometime in late 2005.

Hybrid SUVs on way

The popularity of the SUV can’t be denied, and Ford Motor Co., a leader in truck and SUV sales, makes its first debut in the HEV market this summer with a hybrid model of its Escape SUV.

In general, HEVs are expected to perform twice as well as their strictly gas-powered counterparts. While neither Toyota nor Ford has released specific performance figures on their new SUV hybrids, both manufacturers provide hints of expected performance. The Escape promises a 55 percent to 60 percent improvement in fuel economy over the average V6; the Highlander is expected to get 600 miles on one tank of gas; and the RX 400H promises “fuel economy significantly better than the current average compact sedan rating of 27.6 miles-per-gallon.” The vehicles are also expected to earn Super Ultra Low Emission Vehicle status.

Information on the currently available HEVs shows great improvement over comparable standard models. For example, Honda’s automatic Civic gets 35 miles per gallon in the city, but its hybrid model racks up 48. The Prius averages 60 miles per gallon in the city, while the comparable Toyota Camry gets only 23.

The U.S. Department of Energy says buying the most fuel-efficient vehicle in a particular class could save up to $500 in fuel costs each year. With gas prices recently hitting record highs in some states, that could be a conservative number.

In addition to upfront savings in gasoline costs, there are other financial benefits as well. In Colorado, purchasing a 2004 automatic hybrid Civic earns a $5,810 deduction in taxes, including the $1,500 federal deduction. But the deductions are applicable only in the first year of ownership, and the federal deductions are scheduled to be phased out after 2006.

Drop in the bucket?

Even though some manufacturers are making great strides in HEVs, some see it as a drop in the bucket.

“We’re concerned with the whole picture,´ said John DeCicco, senior fellow with the environmental advocacy group Environmental Defense, “and the whole picture is more and more big and powerful trucks.” DeCicco, who drives a Honda Civic hybrid, said that while a few manufacturers, such as Toyota and Honda, have embraced the HEV, overall, the industry’s fuel efficiency is decreasing.

In fact, the industry average for 2003 models was just 20.8 miles per gallon, or about 6 percent below the highest levels of efficiency reported in 1988, according to the Environmental Protection Agency.

In 1993, the U.S. Department of Energy teamed with the “Big Three” American auto manufacturers — General Motors, Ford and DaimlerChrysler — to form the Hybrid Electric Vehicle Program. Investing a total of $320 million — half of it from the DOE — the stated goal was to produce commercially available HEV’s by 2003.

Ford’s 2004 Escape hybrid nearly meets the mark, and GM is leasing a limited number of hybrid pickup trucks to commercial customers but has no firm plan for a mass-market release. DaimlerChrysler seems to have taken a wait-and-see attitude towards the hybrid, instead pursuing diesel fuel as a more-efficient option with its 2004 launch of diesel-run versions of its Jeep Liberty and Mercedes-Benz E-Class.

For those drivers ready for the hydrogen fuel-cell evolution, don’t hold your breath. The U.S. Department of Energy estimates that mass-produced, fuel-cell vehicles will not be available for at least another decade.

But environmentalists take heed: The hybrid electric vehicle, or HEV, is inching its way into the mass market, and many in the industry view the gas/electric combination as an interim solution to the reality of fuel-cell-powered vehicles.

Hybrid electric vehicles combine an internal-combustion engine with an electric motor, allowing the electric motor to assist the engine when accelerating, hill climbing and in stop-and-go traffic, thereby reducing fuel consumption and…

Categories:
Sign up for BizWest Daily Alerts