Honda Fit Hybrid Challenges Toyota Prius Leadership

Honda Fit Outsells Prius

In January, the Honda Fit outsold the Prius in Japan. Prius had been the number one selling car in Japan for 20 months. Half of the Fits sold were the new Fit Hybrid, which delivers 71 miles per gallon (MPG) using the Japanese JC08 test cycle. In 2012, both the Fit Hybrid and new Fit EV are expected to start selling in the U.S.

The Honda Fit has been a popular small hatchback, with over 3.5 million sold globally. With five doors, seating for five, and flexible cargo space it is big enough for most, yet small enough to fit in those precious city parking spaces. Drivers like the sport fill and handling. Starting at around $15,000, the Honda Fit delivers 31 mpg, the mileage of many hybrids.

Honda Fit Hybrid 71 MPG

The Fit Hybrid removes pain at the pump with the 71 mpg in the Japanese test cycle which emphasises slow city driving at 16 mpg; by comparison the Prius is 77 mpg. Power is delivered from the IMA electric motor and from an efficient 1.3-liter i-VTEC engine. The battery for the hybrid system is located under the rear cargo and enables the Fit to share the same flexible seating configurations as the rest of the lineup without sacrificing interior comfort that is unique to Fit.

The Fit offers more room than outward appearances suggest. It has a B-segment exterior, but a larger C-segment interior. In the back is 20.6 cubic feet of cargo, but drop the back seat and you have 50.7 cubic feet. If that still is not enough for your ladder, home project, or surfboard, then you can flatten the front seat for added feet. In Japan, the passenger seat can even rotate for easy in-and-out or socializing with others.

Bigger and Better – Honda Fit Shuttle versus Toyota Prius

Toyota has no intention of letting Honda hold the number one spot in Japan, the U.S., or anywhere else. Toyota has expanded the popular Prius into a family of four models:

* 2011 Prius – world’s best selling hybrid
* 2012 Prius v –midsized wagon with 40 mpg goes on sale Summer 2011
* 2012 Prius c Concept – city car hybrid goes on sale by Summer 2012
* 2012 Prius Plug-in Hybrid – best mileage of any Prius goes on sale by Summer 2012

If you’ve been looking for great mileage from an SUV, crossover, or wagon, take a look at the new Prius v. It will share the current generation Prius’ platform and Hybrid Synergy Drive technology. Featuring a compact exterior yet spacious interior, the Prius v will feature over 50-percent more interior cargo space than the current Prius, while being almost as aerodynamic. The Prius v will compete with new crossover hybrids like the Ford C-MAX Hybrid. The Prius v will use NiMH batteries, just as the 2011 Prius. Next year, Ford will start delivering lithium batteries in all hybrids and electric cars.

Honda has countered by unveiling a longer Honda Fit Shuttle available with the current efficient ICE drive system and the new hybrid drive system. This compact wagon can be examined on Honda’s new Fit Shuttle Japanese website.  The wagon is expected to be unveiled at the Geneva Auto Show next month. Unfortunately, Honda is unlikely to offer this larger Fit in the U.S., at least for now.

Honda Fit EV

Honda unveiled the all-new Fit EV Concept electric vehicle at the LA Auto Show in November. In 2011 the Fit EV will be in fleet trials at at Google, Stanford University, and possibly others. In 2012, the car will no longer be a concept as customers go to dealers and buy the Fit EV. The Fit EV will compete with the larger Nissan LEAF, the Ford Focus Electric, and the Toyota FT-EV.

The Fit EV is designed to meet the daily driving needs of the average metropolitan commuter and utilizes the same 5-passenger layout found in the popular Fit hatchback. When the Fit EV production model is introduced, it will be powered by a lithium-ion battery and coaxial electric motor.

The high-density motor, derived from the FCX Clarity fuel cell electric vehicle, delivers excellent efficiency and power while remaining quiet at high speeds. The Fit EV will have a top speed of 90 mph.

The Fit EV will achieve an estimated 100-mile driving range per charge using the US EPA LA4* city cycle (70 miles when applying EPA’s adjustment factor). Driving range can be maximized by use of an innovative 3-mode electric drive system, adapted from the 2011 Honda CR-Z sport hybrid. The system allows the driver to select between Econ, Normal, and Sport to instantly and seamlessly change the driving experience to maximize efficiency or improve acceleration. While in Econ mode, practical driving range can increase by as much as 17 percent compared to driving in Normal mode, and up to 25 percent compared to driving in Sport mode. Acceleration improves significantly when in Sport mode, generating performance similar to a vehicle equipped with a 2.0-liter gasoline engine.

Hybrid and Electric Car Battle with Toyota and Ford

In their battle for hybrid and electric car leadership, both Honda and Toyota are learning a lesson from Ford – price matters and therefore manufacturing cost matters. Ford is offering 10 to 14 new models on a global C-car platform  with many chassis and components being common across a range of cars, SUVs, and crossovers. Ford will lower manufacturing costs, use high-volume common parts, and improve efficiency. Ford will increasingly enable customers to select a vehicle, such as the Focus, with powertrain options ranging from efficient engine to hybrid to plug-in hybrid to pure battery electric.

C-MAX Energi and C-MAX Hybrid are two of 10 to 14 new models that Ford will launch around the world based on its new global C-car platform – Ford’s first truly global One Ford platform. Ford’s new generation of C-segment vehicles will be sold in more than 120 markets and will account for more than 2 million units annually. The C-segment accounts for one in four cars sold worldwide today and, in conjunction with the B-segment, Ford expects it to rise to 50 percent of all cars sold globally by 2013.

Honda is wise to expand its popular Fit into a family that includes a larger wagon, a 71-mpg hybrid, and an exciting electric car with the potential to become the EV price leader. In a growing battle for fuel-efficient family offerings with Toyota and Ford there will be one clear winner – the customer.

Nissan Takes EV Lead with Charged Partnerships

By John Addison (11/24/08). Nissan is serious about being the leader in electric vehicles by taking a three-step approach: (1) developing a charging infrastructure, (2) seeding the market with EVs in 2010, and (3) leading in EV manufacturing volume in 2012. The initial vehicles show-off a new body design, be freeway speed, and have a 100-mile range.

In August, Nissan unveiled all-electric and hybrid electric prototype vehicles, both powered by advanced lithium-ion batteries from the Nissan-NEC joint-venture, Automotive Energy Supply Corporation.

Friday, at a Nissan reception, I discussed product strategy with Mark Perry, Nissan Director of Product Planning, and with Alan Buddendeck, Vice President of Corporate Communications. Nissan is serious about being the leader in electric vehicles. Nissan will be ready with exciting electric vehicles in 2010. They expect the market to take only two years from that point to be ready for volume buying. A public charging infrastructure will be important to many buyers.

Nissan will face serious electric vehicle and plug-in hybrid competition from Toyota, GM, BMW, Mercedes, Think, Tesla, and a number of exciting smaller innovators. Nissan plans on lead by focusing on zero emission vehicles (ZEV), rather than focus on plug-in hybrids. Longer term, Nissan expects to see many urban centers, such as London, where only ZEV will be exempt from expensive daily congestion fees.

The Renault-Nissan Alliance has begun ZEV initiatives in Europe and Asia including Israel, Denmark, Portugal, Monaco, Japan, and with French electric utility company EDF. Now they are forging alliances in the United States.

With Nissan USA located in Tennessee, it is seeing strong support there for a statewide charging infrastructure. Tennessee Governor Phil Bredesen stated, “Our clean-energy future depends on our ability to find real strategies for encouraging Tennesseans to adopt a zero-emission mindset.” The state is focused on heavily trafficked Interstate 24 and Interstate 65 corridors.

“As the nation’s largest public power supplier, TVA is looking forward to being part of this project to explore the potential of electric vehicles,” said TVA Chairman William Sansom in joining the Tennessee initiative. “Electric vehicles could put electricity to work overnight, or off-peak, when other power needs are lower.”

Across the nation, Oregon is one of 17 states that is addressing growing climate problems by implementing carbon emission cap-and-trade. Oregon is part of the West Coast Governors Global Warming Initiative. Nissan has committed to supply ZEVs to the state of Oregon and to help promote an EV Charging Network. Active in the Oregon initiative is Portland General Electric (PGE), which has installed six charging stations this year.

California is also a member of West Coast Governors Global Warming Initiative. California, as the world’s third largest consumer of petroleum, has a compelling need to expand the use of zero-emission vehicles.

The mayors of San Francisco, San Jose and Oakland announced a $1 billion project to build a regional network of electric car charging stations. An important part of the regional network is the promotion of harmonized standards across the region, which should encourage the participation of many automakers and charging infrastructure providers. The Bay Area initiative will include expedited permits, financial incentives, and a roll-out plan for charging equipment. Although the network investment is estimated to ultimately reach $1 billion, the process of developing public and private investment is just beginning.

The Bay Area initiative is endorsed by innovators such as Better Place, which has raised over $100 million to provide a charging infrastructure and to provide batteries using a subscription model.

Governor Arnold Schwarzenegger supported the project, “This type of public-private partnership is exactly what I envisioned when we created the first-ever low carbon fuel standard and when the state enacted the zero emissions vehicle program.”

The Mayors’ announcement could create a national model. Speaker of the House Nancy Pelosi supported the announcement, “Promoting the use of electric vehicles will help forward our nation’s goals to achieve energy independence, to protect the environment by reducing greenhouse gas emissions and to boost the economy by providing jobs in an emerging manufacturing sector.”

John Addison publishes the Clean Fleet Report. In March 2009 his new book, Save Gas, Save the Planet, will be published.

General Motors Bailout

Op-Ed by John Addison (11/17/08). On September 24, Congress approved a $25 billion bailout for GM, Ford, and Chrysler. “It seemed like a lot when we first started pushing this,” says Democratic Sen. Debbie Stabenow of Michigan, one of the bill’s sponsors. “Suddenly, it seems so small.” The three troubled automakers are already back in Washington D.C. asking for another $25 billion.

A couple of weeks ago, GM said that the future of our nation depended on it getting added billions so that it could buy Chrysler. GM has changed its mind. It just wants taxpayers to give the Detroit three another $25 billion. The problem is that the total of $50 billion is paid by taxpayers like you and me.

Congress would do well to have some national goals for the $50 billion, not goals set by auto lobbyists. Goals include America’s need to become competitive with the world if we hope to create more jobs and end this recession. Workers need help by either keeping their jobs or by getting new jobs. Americans need cars that cost less at the pump and better alternatives to always using a car. America needs to be energy secure, not desperately dependent on oil. To meet these goals, several alternatives are being considered:

  • Another $25 billion with no strings attached.
  • Let GM reorganize under Chapter 11 bankruptcy.
  • Boost consumer auto purchases with tax credits for buying vehicles with excellent fuel economy.
  • Invest the $25 billion in rail and transit.

When Chrysler got its 1980 loan guarantee, Lee Iacocca cut his annual salary to a dollar and slashed the wages of other top workers by 10 percent. The tax payers never paid a cent. It was a $1.5 billion loan guarantee.

This time around, Chrysler will be fine. Chrysler President Jim Press, when talking in September at a Western Automotive Journalist meeting, stated, “We need a new business model based on one word – Reality.” The new management team at Chrysler inherited a 4 million car per year overhead with sales falling to one million per year. Chrysler is privately owned by Cerberus Capital Management. Chrysler has been actively downsizing to be smaller, agile and profitable.

Ford is also moving to a business model that matches the name of its best selling car – Focus. In recently discussing its third quarter results, Ford stated that it remains on track to achieve $5 billion in cost reductions in North America by the end of 2008 compared with 2005. After a quarterly pre-tax loss of $2.7 billion, Ford had overall liquidity of $29.6 billion. The company promised shareholders further cost cuts and cash improvements.

In his November 17 Wall Street Journal article, Michael Levine discusses why Chapter 11 bankruptcy is the best option for GM. Chapter 11 would allow GM to be more competitive with Toyota, which now has now the world leader in market share. Over the years, GM has lost about two-thirds of its market share. Only with bankruptcy can GM be free of restrictions that prevent it from being competitive. It has 7,000 dealers compared to Toyota’s 1,500 successful dealers. GM has enormous pension and health care costs that add thousands to the cost of cars. The burden is so great, that GM needs SUVs to make money and sees no margin in fuel efficient cars. Yet, it is fuel efficient cars that customers are now buying. If GM reorganizes under bankruptcy, creditors will be forced to give it breathing room and paralyzing restrictions will be removed.

Robert Reich, former Labor Secretary, wrote on November 11, “When a big company that gets into trouble is more valuable living than dead, there used to be a well-established legal process for reorganizing it – called chapter 11 of the bankruptcy code. Under it, creditors took some losses, shareholders even bigger ones, some managers’ heads rolled. Companies cleaned up their books and got a fresh start. And taxpayers didn’t pay a penny. In exchange for government aid, the Big Three’s creditors, shareholders, and executives should be required to accept losses as large as they’d endure under chapter 11, and the UAW should agree to some across-the-board wage and benefit cuts.”

Al Gore, in his November 9 NY Times Op-Ed identifies a major opportunity, “We should help America’s automobile industry (not only the Big Three but the innovative new startup companies as well) to convert quickly to plug-in hybrids that can run on the renewable electricity that will be available as the rest of this plan matures. In combination with the unified grid, a nationwide fleet of plug-in hybrids would also help to solve the problem of electricity storage.”

Now law, the Emergency Economic Stabilization Act of 2008 gives tax credits exceeding $7,000 for the purchase of plug-in hybrids. President-elect Obama, when campaigning, favored expanded use of tax credits to speed the transition to a competitive auto industry that makes clean cars. Consumer vehicle spending could be boosted now by expanding the offering to include a $2,000 tax credit for vehicles getting over 35 miles per gallon and up to $10,000 for zero-emission vehicles. Auto industry sales would immediately jump without a $25 billion give away.

In the seventies, I left my job with a major Detroit corporation, Burroughs, then the second largest computer firm. At the time, all makers of mainframe computers were in trouble, including IBM. If the government had done a massive bailout and protected their businesses, the United States would not have transitioned into the global giant of information technology. Lacking a bailout, IBM reinvented themselves into a global leader in IT services with a deep new patent portfolio. Burroughs became Unisys. Honeywell redefined itself. GE exited the computer field. An industry thrived instead of died. The transition made the United States the global leader in the Internet and technology innovation, creating millions of jobs.

Big corporations resist change, yet change they must. To grow and be profitable, the United States transportation industry must be innovative and responsive to customers.

Car customers are voting with their pocketbooks. The average car owner spends $8,000 on their car. The average household with two cars spends $16,000. People are demanding fuel economy. They have stopped buying vehicles with lousy mileage. They want hybrids that deliver over 40 miles per gallon. There is a pent-up demand for millions of electric vehicles and plug-in hybrids.

Only a smaller innovative customer-oriented GM can create permanent jobs. Yes, a GM bankruptcy reorganization could lead to the short-term loss of over 100,000 jobs at GM, its suppliers, and some of its dealers. These laid-off workers, however, could be part of a million new workers. Federal government tax credits could be given to any company hiring laid-off auto workers. Community colleges could be funded in Michigan and other states to retrain workers for jobs of the future.

$25 billion invested in public transportation would create over one million new jobs in the United States. The America Public Transportation Association has learned that every $1 billion invested in public transit capital projects generates 30,000 jobs, and the same amount invested in transit operations generates 60,000 jobs.

U.S. citizens want better public transportation as ridership soars to 11 billion this year. This November, voters across the country in 16 states approved 23 measures out of 32 state and local public transit ballot initiatives, authorizing expenditures approximating $75 billion. Clean Fleet Report

Senate Majority Leader Harry Reid plans to move forward with a bill that would give the auto industry access to the $700 billion Troubled Asset Relief Program set up by the government in October to help ailing banks and other financial firms.

As Ben Franklin observed, “Great haste makes great waste.”

Congress may release the total $50 billion by Thanksgiving. Such haste sends all taxpayers a message, “Enjoy this turkey. You can pay for it later with interest.”

John Addison publishes the Clean Fleet Report.

Chrysler to Make Plug-in SUV, Minivan and New EVs

By John Addison (9/24/08). Chrysler builds on the success of its 38,000 GEM EVs that are currently on the road in the U.S. with new battery-electric vehicle and plug-in hybrid announcements. Any time I visit university towns, corporate and government fleets, I see these GEM electric vehicles being used for practical transportation and hauling. Often, they are powered by solar roofs and carports.

The new GEM Peapod will be available for purchase in 2009, with more models to come. Eco-friendliness gets a fresh face with the GEM Peapod. The GEM Peapod brings beautiful aerodynamic style to a gas-free, emission-free vehicle. This light electric vehicle has a maximum speed of 25 miles per hour and a range of 30 miles before requiring at least 6 hours for an adequate recharge of its lead-acid batteries. Peapod Specs

Three freeway-speed vehicle electric vehicle announcements were also made this September 24 by Chrysler’s ENVI – Dodge EV, Jeep EV and Chrysler EV. The development of Chrysler’s Electric Vehicles and Range-extended Electric Vehicles is led by ENVI – representing the first four letters of “environmental” – the Company’s in-house organization that was formed to focus on electric-drive production vehicles and related advanced technologies. Discussions are taking place with several lithium battery suppliers including A123.

The Jeep EV is a plug-in hybrid Jeep Wrangler SUV with an estimated 40 mile range in electric mode, before a small gasoline engine is engaged. The vehicle may give record fuel efficiency for customers that want SUVs, from families hauling kids and trailers to fleets. The Jeep EV will compete with the plug-in hybrid offering from Saturn VEU.

The Jeep EV uses an electric motor, an advanced lithium-ion battery system, and a small gasoline engine with an integrated electric generator to produce additional energy to power the electric-drive system when needed. The 200 kW (268 horsepower) electric motor generates 400 N•m (295 lb.-ft.) of torque. With approximately eight gallons of gasoline, the Jeep EV has a range of 400 miles, including 40 miles of zero fuel-consumption, zero-emissions, all-electric operation.

Minivan drivers have been longing for better mileage as the shuttle vans full of people and stuff. The new Chrysler Town and Country will use the same plug-in hybrid drive system as the Jeep EV.

Chrysler’s announcement should increase pressure on Toyota to announce a hybrid mini-van and for Honda to announce a more fuel efficient van using diesel.

For sports car enthusiasts, Tesla has new competition in the form of the Dodge EV, a hot two-seater with a body designed by Lotus. This battery-electric will have a range of 150 to 200 miles between charges – more miles, when driven with a feather touch; much less, with a lead-foot.

The electric-drive system consists of three primary components: a 200 kW (268 horsepower) electric motor, an advanced lithium-ion battery and an integrated power controller. The 200 kW electric-drive motor generates 650 N•m (480 lb.-ft.) of torque. The instant high torque of the electric-drive motor delivers outstanding performance, accelerating the Dodge EV to 60 mph in less than five seconds. The Dodge EV has a top speed of more than 120 mph.

Chrysler plans to have 100 of the new ENVI vehicles in fleets in 2009 and to start taking production consumer orders in 2010.

Three weeks ago, I had the chance to talk with Chrysler President Jim Press, an executive who is famous for staying in close touch with customer and dealer interests and issues. He knows how to make hybrid vehicles a success. He was President and COO of Toyota USA when Toyota made the Prius a best seller and when Toyota grew to global market leadership. After 37 years at Toyota, Mr. Press could have coasted into retirement. Instead he joined Chrysler as President and Vice Chairman, where he will be integral to building a new company.

In his travels, he notes a strong interest in EVs among younger people – he refers to this market segment as Millennials. Should Chrysler win with the new generation, they could be customers for decades. Look for Chrysler to extend the development of advanced, production-intent electric vehicles, and that it will apply electric-drive technology to its front-wheel-drive, rear-wheel-drive and body-on-frame four-wheel-drive platforms in the next several years.

Jim Press, when talking recently with the Western Automotive Journalist, stated, “We need a new business model based on one word – Reality.” The new management team inherited a 4 million car per year overhead with sales falling to one million per year in the new era of high gasoline prices. Mr. Press is cutting unprofitable sales such as rental car fleets. He is focusing on a future of vehicles that give customers a visceral emotional connection with their car, while using electric drive systems to address fuel economy and environmental concerns.

Jim Press continues to move aggressively. After talking into the evening with California journalists, he took off for a red-eye flight back to Detroit. He wants to see Chrysler moving at the speed of their new vehicles.

John Addison publishes the Clean Fleet Report

Electric Cars for 2010

By John Addison (6/4/08). With oil prices rocketing past $130 per barrel, a growing number of vehicle makers are planning to offer electric vehicles by 2010. Zero gasoline will be used.

Over 40,000 electric vehicles (EV) are currently used in the United States. Most are used in fleet applications, from maintenance to checking parking meters; these EVs are mostly limited to 25 mph speed and 20 mile range. A growing number of fleet EVs, however, are early trails of a new generation of freeway-speed EVs that will be available to the mass consumer market in 2010.

Mitsubishi is on target to sell its electric vehicle in the U.S. in 2010. The i-EV is a friendly looking sub-compact which easily handles freeway speeds. It’s expected 100 mile-plus range per charge will meet the needs of urban dwellers and most in suburbia. The drive system uses three permanent magnetic synchronous motors which receive power from a 16kWh lithium battery stack. Tokyo Electric Power is currently testing ten i-EV

Nissan’s and Renault’s famous CEO, Carlos Ghosn, plans to be selling electric vehicles in the U.S. market in 2010. He anticipates more cities following London’s model of expensive congestion fees, with fee exemptions and preferred parking for zero-emission vehicles. In many markets, Nissan will offer electric vehicles with permanently installed lithium batteries that will be trickle charged. Nissan owns 51% of Automotive Energy Supply Corporation, which plans to be producing lithium batteries for 10,000 vehicles annually by 2010. Plant expansion has begun to produce lithium batteries for 60,000 electric vehicles annually.

By 2012, Ghosn plans to have a Renault-Nissan alliance offering a wide range of electric vehicles in many major markets, charging ahead of all competition. Economist Article

In Israel and Denmark, Renault and Nissan will partner with Project Better Place. to sell electric vehicles without batteries. Project Better Place will lease batteries that can be quickly exchanged at many locations. The exchange will take no longer than a traditional gasoline fill-up, appealing to motorists needing extended range. The battery lease will cost a fraction of what most now spend on gasoline.

Popular in Europe, Think will bring its electric vehicle to the U.S. Think city reaches a top speed of 65 miles per hour and can drive up to 110 miles on a single charge. Think city meets all European and US federal motor vehicle safety requirements. At the Geneva Motorshow earlier this year, Think announced a strategic partnership with energy giant General Electric, also an investor in Think. By 2011 look for a larger TH!NK Ox. Think has also established partnerships in the US with battery suppliers A123 and EnerDel. Think has established a U.S. headquarters and will begin sales in the U.S. before 2010. A123 Technology Review Article

In 2009, the smart ev may be available in the U.S. The cars 70/70 specs are appealing for city drivers: 70 mile range, 70 mile per hour freeway speed. Daimler’s smart ev is in trail in the UK with the Energy Saving Trust, Islington and Coventry Councils, Lloyds Pharmacy, EDF Energy, BT, and other fleets. To achieve a range of 72 miles, it is using the Zebra sodium-nickel-chloride battery which has caused maintenance difficulties in some U.S. fleets.

The cityZENN is planned for a top speed of 80 mph and a range of 250 miles. Powered by EEStor barium-titanate ceramic ultracapacitors, the cityZENN will be rechargeable in less than 5 minutes! Venture capitalists are betting that stealth EEStor is real. On Friday, May 30, ZENN Motor Company announced that it had raised another $15 million dollars.

Most major auto makers continue to believe that most U.S. customers will insist on ranges exceeding 250 miles and a national infrastructure of fuel refilling (or recharging) in five minutes. Even as GM announces factory closings and plummeting sales, CEO Richard Wagner states that GM is committed to bring the plug-in hybrid Chevy Volt to market by the end of 2010. If it can deliver at under $30,000, the vehicle will offer tough competition to some of the smaller EV players.

As Toyota solidifies its number one global market share leadership, it also remains on target to deliver a plug-in hybrid to the U.S. market by the end of 2010. It is likely to have an all-electric range of 40 miles and a gasoline range 10X that amount. Watch Toyota use an expanded line of hybrid vehicles to unset GM, making Toyota the market leader is the U.S.

May rained on every auto maker’s parade in the U.S., except Honda, which set sales records with its fuel efficient Civic. Honda is passing Chrysler to become the #4 seller in the U.S. Honda is rumored to be bringing a new hybrid to the U.S. next year priced in the mid-teens. This will give hybrids a big boost in market share from the current 3% of total vehicle sales.

While I was giving a speech at the Fuel Cell 2008 , Honda announced that it would lease 200 Clarity FCX hydrogen fuel cell cars for $600 per month, including maintenance. In June, it will start selecting from 50,000 who have expressed interest in the 270-mile range four-door sedan. The FCX Clarity is aerodynamic and beautifully styled. Honda’s new hybrid is likely to have a similar body style.

Some critics have dismissed electric vehicles as golf carts for retirees and sport car toys for millionaires. These critics have missed a fundamental market shift that started with the success of hybrid-electric cars, light electric vehicles, and with e-scooters. Customer enthusiasm for electric vehicles is the result of many factors:

  • Oil Prices
  • ZEV Cities & Congestion Tax
  • Electronic drive simplifies auto design
  • Vehicle weight reduction with electric accessories and components
  • Reduced maintenance because of few mechanical components
  • GHG Regulation
  • Battery technology advances that reduce cost and weight
  • Increased battery safety
  • Success of hybrid-electrics

At the FRA Renewable Energy Investor Conference (my presentation handouts), I led a panel discussion about electric vehicles and plug-in hybrids. Major private equity and project finance investors were optimistic in sessions about electric vehicles, solar power, wind power, and carbon trading. Many expressed discouragement in the biofuels sessions, but at the same time saw increased opportunities with bioenergy and bio-methane from landfills.

In a few years, millions will be driving full-featured freeway-speed four-door sedan electric vehicles. Look for a shift away from foreign oil to riding on local renewable energy.

John Addison publishes the Clean Fleet Report and speaks at transportation and energy conferences.