Wednesday, June 27, 2007

Ford Hybrid Plan Beyond 2008 Still Unclear

By Lauren Woods

Ford Canada recently insisted that they are still in the process of preparing the Oakville plant for the production of hybrid versions of two crossover SUVs. The announcement came after Ford indicated that they have already abandoned the plan for producing hybrid versions of the Ford Edge and the Lincoln MKX.

The Canadian arm of the Dearborn-based car manufacturer also announced that the production of the Ford Edge and the Lincoln MKX Hybrids will commence by 2010. Ford Canada also denied that its parent company has scrapped the plan entirely.

“Nothing has changed on Edge and MKX, which we announced a while ago to be hybrid versions,” says Lauren More, Ford Canada’s vice president for public affairs. “Those plans remain in place and on track,” More pointed out.

FoMoCo, on the other hand, kept mum about the announcement from Ford Canada. “We're not going to confirm anything beyond that,” said Jennifer Moore, a spokesperson for the Ford Motor Company.

It can be remembered that Ford announced in early 2006 that they are planning to produce hybrid versions of the Ford Edge and the Lincoln MKX at the Oakville assembly facility. During the announcement though, Ford declined to set a date when the production of the hybrid crossovers will commence.

The production of hybrid vehicles for Ford is part of its turnaround plan to bring the company back to profitability. The demand for fuel efficient and environment friendly vehicles has been increasing and by providing car buyers with what they want, Ford hopes to generate substantial profit. Last year, the company posted a loss of $12.7 billion - the most that it has lost in its lengthy history.

Talks about the cancellation of the production of the crossover hybrids surfaced after a source commented that Bill Ford backpedaled on his pledge to produce 250,000 hybrid vehicles before the turn of the decade. The company chairman was quoted to have saying that the goal is “too narrow” for the company to achieve its ultimate goal of protecting the environment. Hybrid vehicles consume less fuel and produce less greenhouse gas.

According to the source, it is Ford’s decision that the company focus instead on the development of engines that will run on alternative fuels. Common alternative fuels being developed today as substitute to petroleum fuels are ethanol, hydrogen and biodiesel. These alternative fuels are cleaner than petroleum fuels and came from renewable resources. “Our strategy going forward is not to wed ourselves to a single technology,” said Ford.

While the production of the hybrid Ford Edge and the Lincoln MKX are still in question, Ford announced that they will be pushing through with the production of the Ford Fusion and the Mercury Milan Hybrids. The hybrid versions of the sedans will be produced starting this fall. The company previously introduced the Ford Escape Hybrid in 2004.

Ford shifting its focus on the development of vehicles with alternative fuel capability means that the vehicles they have planned with a hybrid version will be put on hold. This development if it is indeed true would mean that a version of the MKX with better fuel efficiency than a Lincoln cold air intake-equipped gasoline MKX would be put off indefinitely.

But if Ford is shifting its focus on the development of alternative fuel-powered vehicle means that they are still committed to the production of environment friendly vehicles.

Tuesday, June 26, 2007

Senate Fuel Bill Would ‘Kill' Michigan

By Anthony Fontanelle

Automakers and Michigan lawmakers were regrouping Friday in the wake of the approval of a Senate bill that increases corporate average fuel economy mandates by 40 percent by 2025.
The passage of the Senate bill would gravely injure Detroit automakers. This is why the automakers had lobbied hard against the new fuel mandates. They had supported a compromise proposed by Michigan Sen. Carl Levin, D-Detroit, Mark Pryor, D-Ark., and Christopher Bond, R-Mo., among others, that would have raised CAFE rules, but less onerously than the Senate bill.

Nearly the whole Michigan congressional delegation earlier met to tackle how to continue with the struggle. "The bill would mean the death of Michigan," said U.S. Rep. Mike Rogers, D-Brighton. "We owe it to a lot of families who rely on the auto industry to get this right." Added Rep. Bart Stupak, D-Menominee: "You think things are bad now in Michigan? You haven't seen anything yet if that bill became law." Rogers and Stupak said that automakers need to emphasize their advanced technology efforts and push for more assistance to make vehicles like the Chevy Volt a reality.

But Sen. Majority Leader Harry Reid, fuming like Eagle spark plugs, said that senators did not find automakers credible for they have "misrepresented the facts" at time. "We don't believe you anymore,'" Reid said. "The answer is we've had enough. It's time the American automobile manufacturers join with the rest of the world in recognizing that people want to buy more fuel efficient cars."

Reid said that he had spoken to House Speaker Nancy Pelosi, who told him fuel economy legislation would be passed "in the near future." Automakers now are anxious that the fuel bill may be on a much faster track than previously thought. But Pelosi meant September by the words "near future," said spokesman Brendan Daley.

The House Energy and Commerce Committee, led by U.S. Rep. John Dingell, D-Dearborn, was not expected to take up the fuel economy provisions until September. Dingell said that he was against accelerating consideration. I am not sympathetic to that, he added. Dingell met with Pelosi on the house floor Friday and had a "good conversation," said Daly. “Pelosi and Dingell are to meet again on Monday.”

Senate Democrats held a press conference yesterday to "take a bow" in the wake of the conquest. The mandate, which requires automakers to raise fuel economy to a fleet average of 35 miles per gallon for passenger cars and light trucks combined, was added to a broad energy bill the Senate approved. Senators have turned down a less stringent fuel proposal by Levin and others that would have required 36 miles per gallon for passenger cars by 2022 and 30 miles per gallon for light trucks by 2025.

Dave McCurdy, the president and CEO of the Alliance of Automobile Manufacturers, the trade group that represents the Detroit Three, Toyota and BMW among nine automakers, offered an assuaging statement. "Automakers support improving national fuel economy standards," McCurdy said. "This is a long process, and we are continuing to work constructively to develop reasonable fuel economy standards that are affordable and preserve the cars and light trucks that farmers, tradesmen, business owners, outdoor enthusiasts and families need every day."

General Motors Corp. spokesman Greg Martin expressed the automaker's disappointment. "In their rush to do something, Congress should take the same oath as doctors: 'First, do no harm,'" Martin said. "We'll continue to press our case hard that we can work with them to get improved fuel economy levels without the unintended costs to the industry and consumers." Ford and Chrysler as well as other Japanese automakers expressed the same views.

Monday, June 25, 2007

Google Turns Green, Launches RechargeIT

By Evander Klum

In an effort to reduce greenhouse gas emissions and global dependence on oil, internet giant Google has launched its new RechargeIT initiative to promote the development of plug-in hybrid electric cars. Under the guidance of Google’s own philanthropic Google.org team, the new initiative will award $1 million in grants and a further $10 million to fund the development and eventual commercialization of plug-in hybrids.

According to the company’s press release, this is how the first million will be spent: * Brookings Institution: $200,000 to support a spring 2008 conference on federal policy to promote plug-ins * CalCars: $200,000 to support its work to educate the public about plug-ins * Electrical Power Research Institute (EPRI): $200,000 to support its plug-in research and development program; * Plug-In America: $100,000 to raise public awareness and advocate for plug-in transportation; * Rocky Mountain Institute (RMI): $200,000 to enable RMI to launch the design of a practical plug-in hybrid electric vehicle, with additional support and collaboration by Alcoa, Johnson Controls, and the Turner Foundation; * Dr. Willett Kempton, University of Delaware: $150,000 for megawatt scale vehicle-to-grid research and implementation planning.
Too Not only is Google interested in creating a reliable plug-in hybrid, its new initiative will also support the development of a sustainable electricity grid. Under the proposal, owners would be able to sell back unused energy when power across the grid is running low.

Partnering with A123Systems-Hymotion, Google has already tested a fleet of Toyota Prius vehicles that were converted into plug-in hybrids. In the initial tests, the fleet’s fuel efficiency averaged 74mpg, stark contrast to the 41mpg for the test fleet of non-plug-in Prius cars.
Google also announced the start-up of the solar panel installation at Google HQ to power the plug-in vehicles it already has. The new solar panel installation at its Mountain View headquarters in California should develop up to 1.6 megawatts of power – enough to power roughly 1,000 homes.

Google employees will also be able to get free car sharing through Google Fleet. This fleet will get 100 PHEVs when they're available.

Too bad Honda (maker of quality Honda car bra) has decided to discontinue its Honda Accord hybrids.

Auto Lobby Hits The Senate

By Mike Bartley

Auto executives and dealers aggressively lobbied undecided senators last Tuesday with a significant vote on increasing fuel economy regulations expected as early as today. The act is expected to bolster support for a compromise proposal that would mitigate legislation moving through the Senate that calls for noteworthy increases in the Corporate Average Fuel Economy or CAFÉ.

A vote on the compromise mileage bill sponsored by a half-dozen lawmakers spearheaded by Sens. Carl Levin, D-Detroit, Mark Pryor, D-Ark., and Kit Bond, R-Mo., is expected today, despite the fact that some supporters were pushing for more time to round up votes or strike a compromise.

The Legislature appears determined to produce a more stringent fuel economy mandate because of the growing concerns about global warming and dependence on foreign oil. The current Senate fuel economy proposal, part of an intensive energy bill, calls for increasing standards 40 percent to 35 miles per gallon for cars and trucks combined by 2020, followed by four percent annual raises through 2030 to 52 mpg. Detroit's automakers said that the bill would cripple the industry. But this stand is dismissed by supporters of the bill and environmentalists as alarmist.

The Levin-Pryor-Bond compromise bill supported by automakers would set minimum CAFE requirements at 36 mpg for passenger cars by 2022 and 30 mpg for light trucks by 2025. Compared to the Senate bill, the compromise proposal is far more lenient. While automakers, including the Toyota Motor Corp., said that it would be difficult and costly to meet that standard, they are reluctantly backing it.

Tom LaSorda, the CEO of DaimlerChrysler AG's Chrysler Group, made a surprise visit last Tuesday to Capitol Hill. LaSorda joined Ford Motor Co.'s president of the Americas Mark Fields; General Motors Corp. sales chief Mark LaNeve; GM environmental executive Beth Lowery; and dozens of auto dealers. "The bottom line is we are counting votes," said Sen. Debbie Stabenow, D-Lansing, also a sponsor of the compromise bill. "It is very, very close."

Even Steve Feinberg, the head of the private equity firm Cerberus Capital Management LP, met with Sen. Jon Tester, D-Mont. last week to solicit timely support for the compromise bill. "They talked about CAFE," said Matt McKenna, Tester's spokesman. Feinberg was joined by a Cerberus lobbyist, former Louisiana Sen. John Breaux.

Chrysler may have the most to lose from a stringent mandate because its lineup is 70 percent trucks. In a letter to employees last week, LaSorda said that the alternative legislation "will cost our company $11.2 billion over the first five years," but that would be "far less than the tougher bill." The current energy bill "puts us out of business," LaSorda wrote. "For the first five years alone, it's estimated to add up to a staggering $6,700, almost a 40 percent increase, to the cost of every Chrysler vehicle."

Auto executives zeroed in on undecided senators such as Tester, Mary Landrieu, D-La., and David Vitter, R-La. "Frankly, if the head of GM wanted a meeting this week he probably wouldn't have gotten it," said McKenna, a spokesman for Tester. "But since they were with Montana GM dealers, they got in the door."

LaNeve said that his meetings with senators, including Tester, Landrieu and Vitter, went well. "We need to be better on CAFE," he said. "We need it done in a reasonable way that still provides customer choice. You can't provide towing capability, people-hauling capability, off-road capability off a vehicle built on a car chassis."

The compromise bill got solid support among Republicans. They said that the compromise bill has gained support, but were not confident. The events unfold like Lebra and more are expected to be unraveled in the coming weeks.

Sunday, June 24, 2007

1-800-GOT-JUNK? And Isuzu Truck Partners To Test Biodiesel Fuel

By Lauren Woods

The largest junk removal company in Vancouver, British Columbia, 1-800-GOT-JUNK?, partnered with Japanese commercial vehicle and heavy truck manufacturer Isuzu to test vehicles on the use of biodiesel. The Isuzu Commercial Truck of America recently announced that 1-800-GOT-JUNK? will be the first fleet in the country to test biodiesel in its fleet.

The biodiesel test program will run for six months, after which, the two companies will study the effect of using biodiesel on 1-800-GOT-JUNK?’s truck fleet. Ten junk removal trucks were selected to use biodiesel for six months on different climate areas across the United States and Canada.

As early as today though, both companies expect that the outcome will be positive and the junk removal company will permanently switch to using biodiesel on their trucks instead of petroleum diesel. According to the junk removal company, they have over 1,000 Isuzu N Series and GMC W Series trucks in their fleet.

1-800-GOT-JUNK?’s founder and Chief Executive Officer, Brian Scudamore, pointed out that their effort to test biodiesel on their trucks is an indication of their dedication to help protect the environment. “This test will launch our new Green Emissions Program,” says Scudamore. “We have always had a strong environmental conscience and have prided ourselves on cutting-edge recycling efforts. The growth of our business means it's time to take environmental initiatives to the next level,” he added.

Biodiesel is an equivalent to petroleum diesel but is made from biological sources such as vegetable oils. One clear advantage of using biodiesel is that it comes from a renewable source of energy. The widespread use of biodiesel can also reduces the energy dependence of the United States and Canada on foreign oil.

Due to the fact that it comes from virgin oil feedstock like rapeseed and soybean, it can be produced domestically. Another advantage of using biodiesel is that it is priced lower than petroleum diesel while providing the same amount of power output which can be enhanced further with the use of the Isuzu cold air intake system for the Isuzu trucks operated by the junk removal company.

The first of the ten biodiesel powered junk removal trucks was unveiled last month at the Pacific Economic Summit. During the unveiling of the vehicle, California Governor Arnold Schwarzenegger pointed out in his keynote address that the use of biodiesel by the truck “would cut greenhouse gas emission by thirty to forty percent”.

By using exhaust filtration technologies, the truck produces less carbon dioxide than trucks running on petroleum fuel. The use of diesel fuel in the United States has not been popular in decades due to its reputation of producing too much noise and too much black soot. New technologies though has made new diesel engines as smooth operating as gasoline engines. With the use of filtration devices and biodiesel, the production of greenhouse gas is significantly reduced compared to previous generations of diesel engines.

Isuzu is confident that the testing will promote the use of biodiesel not only on fleets but also on passenger diesel vehicles. “Isuzu is excited to participate with 1-800-GOT-JUNK? in this important test,” says Todd Bloom, the vice president for marketing at General Motors Isuzu Commercial Trucks. “We feel that biodiesel fuel has the potential to play an important role in lowering emissions, as well as reducing our dependence on foreign oil.”

Senators Offer New Fuel Economy Proposal

By Anthony Fontanelle

Senators backing the automakers drafted a new compromise fuel economy proposal late last Wednesday in an effort to avoid a massive fuel economy raise from being approved.
Michigan Democrats Carl Levin and Debbie Stabenow said that they offered a new proposal to Sen. Dianne Feinstein, D-Calif. - a key supporter of a Senate energy bill that calls for notable increases in corporate average fuel economy (CAFÉ). Levin and Stabenow declined to tackle the details of their new plan. But they said that they would vote to block the full energy bill if a compromise was not reached. "We're going to run the numbers on it tonight," Feinstein said.

Earlier, supporters backing the energy bill agreed to scale back CAFE increases after 2020 - a move automakers called inadequate. The current Senate fuel bill requires automakers to average 35 miles per gallon for cars and trucks combined by 2020 and then face annual four percent increases through 2030, ending up with a 52 mpg standard. Automakers have called the proposed standards "wildly extreme," adding that it would cost them tens of billions of dollars to comply.

A bunch of senators, including Levin and Stabenow, had proposed the "Pryor-Bond-Levin" amendment for its sponsors, which would increase passenger car CAFE mandates to 36 mpg by 2022 and trucks to 30 mpg by 2025. Lawmakers are now trying to come up with an alternative that would mend the Senate fuel bill and the Pryor-Bond-Levin proposal, which had won the support of automakers.

"Any fuel economy increase has to be responsible, and it's got to comprehend the fundamental differences between cars and light trucks," said Gloria Bergquist, a spokeswoman for the Alliance of Automobile Manufacturers, which represents Detroit's Big Three, the Toyota Motor Corp. and BMW among others.

In addition to Levin's revised compromise, a group of senators led by Ted Stevens, R-Alaska, filed a 38-page amendment to the energy bill that includes slashing the four percent increases after 2020. The said amendment also would get rid of a requirement that automakers make 80 percent of their fleet capable of running on flexible fuels like E85 ethanol by 2015. The Nissan Motor Co. wanted that provision. The same would also benefit the Saturn fuel filter and auto parts in case GM pushes its plan to produce flex-fuel vehicles.

The Pryor-Bond-Levin proposal requires 50 percent of vehicles to run on alternative fuels and allows automakers to count hybrids as alternative vehicles. But the Pryor-Bond-Levin bill appears in grave trouble and Nissan's opposition to key aspects of it may be one reason it fails, officials from other automakers said. Both Tennessee senators intended to vote against the alternative and both Mississippi senators were leaning against it. Nissan has a plant in Canton, Miss., where it builds the Altima and the Quest.

On Wednesday, Levin met with Sen. Mark Pryor, D-Ark. to try to strike a further compromise. "We're putting all the options on the table and talking about them as they come up to see if we find something that people can live with," Pryor said in an interview late Wednesday. "It's very close, and both sides agree the outcome is uncertain."

Automakers were not pacified by the Stevens amendment. "This is a ploy to show, 'Look how generous we are.' The bill is still unattainable," said one senior domestic auto official. Senate Majority Leader Harry Reid, D-Nev., referring to Detroit automakers, has this to say: "The time has come to speak for the American people, not three car manufacturers that are closing plants and laying off people."

Sen. Barbara Boxer, D-Calif., said talks were under way to "meld the two approaches" to produce efficient fuel mandate.