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What Does the Future Hold for Hybrids?

Posted by admin On January - 16 - 2012
Hybrid

It wasn’t that long ago that virtually everyone was awaiting the car of the future; the hybrid. These vehicles were to run on gasoline and electricity, be rechargeable and deliver fuel economy that dusted the competition. However, just as fast as hybrids arrived, it seems now that their fate is uncertain. Many vehicle manufacturers seem to be turning their back on the technology, instead opting for more fuel efficient traditional cars, trucks and SUVs.

In fact, all one needs to do is take a look at the latest info coming out of the recent Detroit Auto Show. There, Cadillac introduced the new ATS sedan, which the company boasts can achieve up to 40 MPG using a traditional engine. Additionally, Ford has announced that it will stop producing its Escape hybrid. It seems the tide may be turning for hybrid enthusiasts and maybe for your wallet as well.

One of the biggest reasons for the recent shift is the cost of ownership of hybrid vehicles. Consumers that initially purchased these cars and trucks to save money on gas have quickly come to realize that the trade-off is higher energy costs elsewhere. What the general public is coming to see is that there is no reason for the extra expense if they can get a traditional vehicle for less money that delivers better fuel economy. If you save a few hundred dollars a year in gas costs, but end up spending many thousands of extra dollars for a hybrid, at what point does it stop making sense to own one?

When taking a look at the numbers, hybrid sales dropped from 2.4 percent of vehicle sales in 2010 to 2.2 percent in 2011. These figures may also be a reflection of the general public’s trust in hybrid models, and with good cause. The recent developments with Chevy’s Volt, in which batteries have been combusting, are a stark reminder that electric technology in vehicles has not been perfected, leaving most people with a wait-and-see attitude. It seems, however, that this has bought enough time for auto manufacturers to play catch up, as they have continued to find ways to reduce energy waste, reduce vehicle weight and develop more efficient technologies in gasoline engines.

Whether the future holds traditional filling stations or glowing electric hubs is uncertain at this moment. While the auto industry is in transition, it may be wise to join everyone else in sitting this one out until a clear winner is decided.

Fossil-Fuels

President Obama recently pushed the direction of government fleets into accepting a higher degree of hybrid and alternative-fuel vehicles. As of March 30, 2015 all vehicles bought for United States government fleets will need to be fuel-efficient or burn alternative fuels. This move is to decrease independence on foreign oil imports to maintain a high degree of productivity and extend the life of fossil fuels.

The problem arises of how exactly this kind of fleet will be supported. Many of these vehicles are equipped in such a way so as to allow either regular gasoline or more efficient fuels to be used. The gasoline portion of the system is in place to allow the vehicles to perform the heavier work that is sometimes required of them. The rest of the time, the vehicle should be drawing from the alternative fuel.

Switching to hybrids is well and good; but there is not a lot of infrastructure in place to support it. Only 1% of gas stations in the United States dispense ethanol blend E85. That 1% supplies fuel to nearly 86% of the alternative-fuel fleet. The rates of alternative-fuel pumps are not increasing to match the expected growth in alternative-fuel vehicles.

Those vehicles that feature the dual fuel set up are not efficient when it comes to running normal gasoline. They average approximately 20 miles per gallon in general. The low amount of alternative-fueling stations available in the United States means those vehicles are going to be driving on gasoline on a fairly frequent basis.

E85 ethanol is currently available at approximately 2,400 stations in the United States. A majority of those stations are primarily centralized in the Midwest. To meet the federal mandate of 36 billion gallons of renewable fuel in use by 2020; the United States needs to add 53,000 ethanol or alternative-fuel pumps.

The demand for hybrid and alternative-fuel automobiles is expected to stay low through as near as 2016. Sales are not likely to breach 10% even with rising fuel costs because of the concern of lack of infrastructure and expense for alternative-fuel vehicles. Other types of vehicle powered by such things as fuel cells and electricity are still being ushered into the market.

One should expect to see additional measures added to the current existing infrastructure to accommodate this attempted change in the United States’ overall direction. Without them, we will only see a greater increase in burnt fossil fuels.

J.D. Power Forecasts Limited Green Car Sales

Posted by admin On May - 4 - 2011
JD Power

A recent study by leading automotive forecaster J.D. Power and Associates revealed that the market for green cars still has a long way to go. It is likely that less than 10% of the market will be sales of hybrids or electric vehicles despite the fact that gas is $4.00 a gallon in many states across the country.

Alternative power train vehicles face a difficult and daunting task of trying to win over consumers that are concerned with their budget. The upfront additional cost of a green vehicle is generally in the thousands of dollars when compared to a standard petroleum burning automobile. That increase in price serves as a drastic turnoff to drivers that are otherwise interested in going green.

Car manufacturers are working to hit a comfortable medium between manufacturing and price. A car is simply not successful if the benefits it provides are not realized because the public is not buying the vehicle. The heavy investment that manufacturers put into green technology and subsequent development make it difficult to provide lower prices on hybrid or electric cars.

Small car sales are rising in the face of increases in gas prices. The smaller models are able to provide upwards of 35 miles per gallon or better so have quickly become a consumer favorite. They have captured much of the market attention because of this consumer interest.

Hybrid sales are currently increasing even though Congress let the tax credit on their purchase expire. The first quarter of 2011 saw an increase in sales by approximately 37%. Clean diesel automobiles are beginning to make a larger impact in the United States. Manufacturers have typically not offered diesel here due to high tax rates and poor public perception. The rates of normal petroleum are comparable or higher in many places.

Clean diesel vehicles also need to shed the negative stigma that diesel is somehow “dirtier” than standard fuel. Affecting this public perception is difficult for automobile manufacturers to invest in as the tangible benefit to the bottom line is simply not there versus the investment.

Regardless of the routes taken, it is projected that upwards of 68% of automobiles will be hybrids and nearly 15% will be electrics by 2025. Many automakers are expected to introduce diesel automobiles to the American market after the success of Volkswagen AG posting 24% of its first quarter sales being diesel.

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