Latest Articles by Joejoe

How Cerberus Enticed DaimlerChrysler

Thu, 14 Jun 2007 00:00:00 -0500

DaimlerChrysler AG’s sale of its American luxury division Chrysler Group for $7.4 billion would mark an epic event in the evolution of the global auto realm. Though the transaction is construed as the end of a great international merger, investors showed enthusiasm to bet billions on the ailing company with an uncertain future.

On February 14 last year, the bomb of selling Chrysler exploded. "No option is being excluded," said Dieter Zetsche Chairman and CEO of Daimler. He added, "In the interest of arriving at the best possible solution for the Chrysler Group and DaimlerChrysler as a whole." Zetsche evaded dozens of queries about the potential sale of Chrysler nine years after it was acquired by Daimler-Benz. "Please understand that we cannot provide you with any more details at this point," he said.

The decision seemed abrupt, almost bizarre. But in reality, Daimler had been preparing for the moment for weeks. The German automaker had hired investment bank J.P. Morgan Chase & Co. to examine its options for Chrysler. Larry Slaughter, a senior executive in the firm's London office who had negotiated previous deals for Daimler, led the project. Inside Daimler, chief strategist Rüdiger Grube was tapped as the Daimler's point man on the deal.

Over the next ninety days, Daimler engaged in a whirlwind auction played out in secret meetings in Auburn Hills, New York, London and Stuttgart. Chrysler suitors include the Blackstone Group, Cerberus and Kohlberg, Kravis, Roberts & Co., General Motors Corp., and Magna International Inc.

The German automaker had no interest in an exposed bidding battle. Instead, Zetsche instructed J.P. Morgan to choose bidders with the financial means and capability to do a deal quickly and decisively. "The three criteria were value, speed and certainty," said one person familiar with the process. "Daimler wanted to move very fast on this."

Secrecy was a principal concern. On the fifth of March, Cerberus senior executive Lenard Tessler and his aides arrived at the Walter P. Chrysler Museum. They were then shuttled to Chrysler's "design dome," which has been transformed into a virtual showroom.

Eventually, Cerberus trumped the powerful rivals to win the bidding for the ailing American division of Daimler. Cerberus was willing to invest billions into Chrysler's operations and assume all of its union liabilities. "Cerberus came forward and said, we really like this business (and) we hear all your requirements," said one source close to Daimler. When Cerberus approved to a mid-May deadline, the deal was all but clinched.

On May 12, Tom LaSorda, Chrysler CEO, flew to Stuttgart with Ron Gettelfinger, the chief of the United Auto Workers union. Gettelfinger had opposed the sale of Chrysler from the very beginning. But after meeting with LaSorda and Zetsche, he agreed to support Cerberus as the new owner of Chrysler.

On May 14 in Stuttgart, Zetsche announced the "solution" to a nine-year marriage that was beyond repair. For $7.4 billion, Cerberus would acquire 80.1 percent of Chrysler and relieve Daimler of all responsibility for its former American partner. "With this transaction," Zetsche said, "we have created the right conditions for a new start for Chrysler and Daimler."

Cerberus Chairman John Snow vowed that his firm would offer a "good home" for Chrysler. "We believe in Chrysler," he said. After the announcement, Zetsche flew to Auburn Hills for one final meeting at Chrysler. In a poignant "town hall" gathering, the German executive said his goodbyes to the troops in Auburn Hills.

Like the repair manuals, Cerberus will aid Chrysler to patch up the mistakes in the past. Chrysler is counting on its turnaround plan to return to profitability.

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Joe Thompson is the owner of a successful auto body shop in Ferndale, California. This 38 year old is also a prolific writer, contributing automotive related articles to various publications.

Source: http://www.articletrader.com

New Technology Turns Hybrids To Plug-in Hybrids

Wed, 13 Jun 2007 00:00:00 -0500

There are already numerous hybrid cars and trucks available in the auto market. These vehicles use an internal combustion engine and an electric motor. The presence of the electric motor translates to fuel economy as the engine will be relieved of its duty on low-power operation when the electric motor takes over. The electric motor in a hybrid vehicle is powered by a battery pack which is recharged by a regenerative braking system and the internal combustion engine.

Meanwhile, plug-in hybrid vehicles are hybrid vehicles which have a battery pack which can be charged via an ordinary household socket. A new technology developed by the Central Vermont Public Service can convert hybrid vehicles into plug-in hybrid electric vehicles. The new technology is called as the CVPS plug ‘n go™ system.

“CVPS plug ‘n go™ gives our customers the opportunity to be on the cutting edge of reducing automobile emissions and extending vehicle mileage, and the next generation of highly efficient cars and trucks,” says CVPS President Bob Young. “Just as CVPS Cow Power™ is creating a new market for energy produced by dairy farmers, CVPS plug ‘n go will demonstrate that plug-in hybrid-electric vehicles are commercially viable and provide tremendous benefits to car owners and society at large,” he added further.

The CVPS has found a partner in the promotion of the said system in Green Mountain College, a leader in environmental studies. According to the partnership, GMC officials will drive one of the two plug-in hybrid electric vehicles purchased by CVPS. The college will then lead the collection of data concerning the performance and cost of the vehicles. The college will also analyze the data gathered.

“By converting hybrid vehicles to PHEVs, one can significantly reduce auto emissions by using cleaner, more efficient grid energy, and vastly extend fuel efficiency,” says Dr. Steven Letendre, a professor and energy economist for Green Mountain College. Letendre is one of the country’s leading experts on plug-in hybrids and other vehicles which are intended to be connected to the power grid.

“This is the next generation of vehicles, and CVPS plug ‘n go™ gives Vermonters an opportunity to be among the first to enjoy their benefits. It is important to demonstrate now the potential that new vehicle technology can play to tackle the global warming issue. This initiative, and CVPS' Cow Power™ program, demonstrates a strong commitment by CVPS to provide national leadership on this important issue,” says Letendre.

Plug-in hybrid vehicles are already being developed for production by major car manufacturers. One example is General Motors’ Chevy Volt which is expected to be produced by the turn of the decade. Conversion kits are already being offered to hybrid car owners to give their hybrid vehicles plug-in capabilities. These vehicles are known to be more fuel efficient than conventional fuel-efficient engines equipped with knock sensors.

Dan Mackey, CVPS’ garage fleet supervisor, is looking to promote PHEVs since these are more beneficial to the consumer and to the environment. He also pointed out that: “We also want to gain experience with the vehicles ourselves to see how they can benefit the electrical system by using idle capacity in the electric system at night, using low-cost service, and potentially even providing back-up power to consumers or even backup to the grid.”

The Fall Of A Dream Merger

Wed, 13 Jun 2007 00:00:00 -0500

Back in 1998, experts called Daimler and Chrysler’s union a marriage ‘made in heaven.’ But about a decade after, the perfect union has reached a critical juncture. How did the union hit the rocks?

On Sept. 15, DaimlerChrysler AG’s CEO stunned the world by forecasting a $1.5 billion third-quarter loss for the Chrysler Group. The executives know they are all in trouble but nobody has ever imagined how grave the trouble could be.

After a number of profitable quarters, Chrysler had collapsed inwardly. Its erratic sales performance triggered Daimler’s decision to sell it off before it capsizes the whole company. Chrysler would be sold for $7.4 billion to private-equity giant Cerberus Capital Management.

But with the said decision, pressure intensified. It does not only mark the failure of a merger but also includes a bunch of other struggles. Inventories of unsold product lines were suffocating the dealers. Also, negotiations on the new company policies are choking workers. "It shows the problems of the fusions of big companies," said Willi Diez, the head of the Germany-based Auto Industry Institute. "You have cultural differences. You have the problem of who really runs the company."

In interviews with a number of individuals close to Daimler to reconstruct pivotal events leading up to the May 14 sale of Chrysler, most spoke on the condition of anonymity.

When Zetsche became Daimler’s CEO, no one thought he would sell Chrysler. Like power antennas, Zetsche was famed for efficiently leading Chrysler’s path to solidify the merger. But Zetsche became ultimately disappointed by the lack of synergies between Chrysler's mass-market vehicles and the luxury product lines built by Mercedes-Benz. As a result, Chrysler inventories became bloated and heavy incentives failed to push vehicles off dealer lots. The warning on Sept. 15 turned concerns about Chrysler into a full-scale predicament.

People close to Zetsche said that he truly believed that Daimler could become an integrated powerhouse if Mercedes and Chrysler shared more engineering costs and high-volume parts. He strived hard for more cooperation, and initiated the development of common platforms for small-car and SUV product lines. Nonetheless, the joint projects only underscored the huge differences between a Mercedes and a Chrysler. While engineers could unite, they could not change the fact that a small Mercedes car sells for double the price of a Chrysler compact.

Many Mercedes auto parts were simply too expensive to be part of a Chrysler vehicle. Still, Zetsche insisted. One German exec recalled challenging the idea that integration could work. "Thank you for your opinion," Zetsche told him. "I have a different one. We will go on with the cooperation."

While Daimler struggled to solve its Chrysler problem, the company's shareholders were swiftly losing patience. Influential shareholders pressed Zetsche and Bodo Uebber, DaimlerChrysler's chief financial officer, to sell Chrysler. "Zetsche's pressure comes from so many different constituencies telling him they're sick to death of Chrysler," said John Lawson, a London-based analyst at Citigroup.

In private, Zetsche was ratcheting up the pressure on LaSorda and his team. No one felt the pressure more than Joe Eberhardt, a former Mercedes exec who was in charge of Chrysler sales and marketing. Eberhardt had alienated many Chrysler dealers with his autocratic style during the terrible summer of 2006. He resigned on Dec. 5.

Early this year, Zetsche appeared reconciled that a sale was the best option. "It took him awhile to get to this decision, that it was right for Daimler and Chrysler to separate," said a person close to Zetsche. Valentine's Day 2007 was supposed to mark a fresh start for Chrysler simply because the marriage was officially headed for a divorce.

Skoda Launch Octavia in China

Tue, 12 Jun 2007 00:00:00 -0500

In Shanghai, Czech car manufacturer Skoda launched the sale of the Skoda vehicles which are manufactured in China. The first offering of the car manufacturer is the Skoda Octavia and some of which have already been purchased and now owned by Chinese car buyers.

The Chinese auto market is currently the second largest automobile market in the world and Skoda sees it fit that they manufacture and sell Skoda vehicles in the said country. The Chinese auto market is continually growing with sales increasing by two digits. Last year alone, more than 4 million new vehicles were sold in the country. For this year, experts expect sales to reach 4.9 million.

Skoda reported that they have already received more than 10,000 orders for the Skoda Octavia. The company started accepting orders for the small family car in April 20 of this year.

At the launching of the Octavias, Fred Kappler, the Auto BOD Member responsible for sales and marketing for Skoda, has this to say: “China has become a key market in Škoda Auto's global strategy and plays a substantial role in the future development of our brand. The launch of the Octavia marks the beginning of a new era at Škoda. The Octavia has won many awards in Europe, offers top-class quality and a unique design and is distinctive for its timeless elegance and attractive appearance.”

The Octavia is designed to attract the attention of car buyers with its unique styling cues like the billet grille that is accented by the Skoda logo. Kappler extolled the Octavia’s virtues saying: “Using state-of-the-art technology, the vehicle as been developed to meet the requirements of modern clients and be environmentally friendly. I believe this car will surpass the expectations of our Chinese customers and will continue the success story that it has started in Europe. Moreover, we have built an exclusive sales and service network in China to be where our customers are and to guarantee our high quality of service also in this part of the world.”

The Skoda vehicles launched recently by the Czech car manufacturer are built in the Shanghai Volkswagen plant. The company will then sell the China-made Skoda vehicles using their new sales network in the country. Skoda’s sales network is currently comprised of more than 50 exclusive dealerships across the world.

In the global market, the Skoda Octavia is offered with a wide range of gasoline and diesel engines. The company is yet to announce whether they will be offering the six gasoline and five diesel engines for the Octavia in China. Aside from the wide range of engine choices, trim level choice for the Octavia is also numerous. The trim level for the Skoda Octavia is compose of the Classic, Ambiente, 4x4, Sport, Elegance, Scout, Laurin&Klement, and the vRS.

Optional features for the Octavia includes acoustic front and rear parking sensors and a tire pressure monitoring system. Active headrests are also offered as optional features although it is a standard feature for the Laurin&Klement. Curtain airbags for passenger safety is an option for all trim level of the Octavia. An electronic sunroof is also an optional feature. All in all, the Octavia is a family car with lots to offer to the increasing number of Chinese car buyers.

Gas Saving Invention Granted U.S. Patent

Sat, 09 Jun 2007 00:00:00 -0500

In 1975, Honda was granted the U.S. Patent 3878826 for instructions on how to manufacture an engine with a third manifold. The patent was secured because the CVCC engine for the Honda Civic has a second intake manifold. This technology is now being put to reduce fuel consumption by National Fuelsaver Corp. based in Boston.

An internal combustion engine commonly has only two manifolds - the intake and the exhaust manifold. These manifolds facilitate the entry of fuel to the engine as well as provide the exit of exhaust gases.

According to the abstract of the patented three-manifold engine: “A four-cycle internal combustion engine has eight cylinders each provided with a main combustion chamber and an auxiliary combustion chamber connected by a torch nozzle. A carburetor has a Venturi throat supplying rich mixture to each of the auxiliary chambers and other carburetor throats supplying a lean mixture to each of the main chambers. Although the effective cross sectional area of the Venturi throat for the rich mixture need not be larger than the effective cross sectional area of a single torch nozzle when the engine has four cylinders or six cylinders, an eight cylinder engine requires that the Venturi throat for the rich mixture be smaller than 1.4 times as large in effective cross sectional area as each of the torch nozzles.”

According to the National Fuelsaver Corp., the third manifold can be used to increase the gas mileage of an engine by injecting platinum vapor into the combustion chamber. The platinum particles allow fuels to be burned almost completely. Conventional engines only burns about 70 percent of the fuel introduced into the combustion chamber. With the new patented technology, an additional 22 percent of the fuel can be burned.

According to the abstract of the patented gas saving technology: “An Elevated Expansion-Ratio Internal Combustion Engine has a substantially standard repeating four-stroke sequence for each cylinder, and the Engine includes for each cylinder: an intake valve, a combustion-gas exhaust valve, and a vapor return valve. A return manifold for vapor connects from the return valves of respective ones of the cylinders back into a passage ahead of a beginning portion of an intake manifold. Substantially during a predetermined part of each compression stroke in the sequence of strokes, the return valve opens after a closing of the intake valve, and thereafter closes at a time within the compression stroke corresponding to a predetermined position of the piston in the cylinder.”

According to the developer of the gas saving technology, the use of platinum is already used on catalytic converters. What they just did is bring the platinum to the engine so that the unburned fuel will not be wasted.

According to Jack Leopold, the West Coast distributor for National Fuelsaver Corp., “The Gasaver injects a platinum vapor directly into the engine where the catalytic action of the platinum promotes faster and more complete combustion - with 15 to 25 percent savings in gasoline.” Joel Robinson, the inventor of Gasaver, added that, “We're not doing anything new chemically; we're simply changing the location of where the process occurs.”

With the increasing price of gasoline, a product such as that would surely be welcomed by many fuel-concerned individuals. With the money saved on fuel consumption, they can spend on upgrading the body parts of their daily drivers.

‘Practice Pays Off’ – Corvette Racing

Sat, 09 Jun 2007 00:00:00 -0500

Corvette Racing etched a good name series. This is because of one thing - PRACTICE. Rigorous practice makes the team one of the most sought-after in today’s time. Despite little outside competition for the team, Corvette Racing has taken the early portion of this year’s season to test every aspect of the cars in preparation for the Le Mans, France race as well as the world's premier endurance race.

The most famous car race in the world will include highly-sophisticated sports cars with the 15 competitors in GT1, including five Corvettes. The 2007 Le Mans race entertained both an upgrade in quality and an increase in quantity. "We think we'll win for the fourth time at Le Mans because we have the best team. They know the car inside and out," said Oliver Gavin of Corvette Racing. "The crew will be well-drilled."

Corvette Racing has known all along that the upcoming race will be stiff with rivals from Aston Martin, Saleen and other Corvettes. Preparation is paramount and the team has taken the five races in the American Le Mans Series season to fine tune the elements of the team.

"Aston Martin will be there and we beat them last year. Everyone is waiting for that," said Olivier Beretta. "It's difficult to know what the other competition is like at Le Mans. We have very good preparation and have a very good team with Michelin."

From the beginning of the season, the drivers of the Corvettes have flaunted their excellence as the two C6.Rs fought for the top spot in every race. "It was a very important day for us because it was the last practice before Le Mans," said Beretta. "We had to finish with the car in one piece. We went through three street races without any accidents and now we've completed a successful Michelin tire test. We are ready to go to the big one now."

"It was a perfectly executed race and we learned a tremendous amount. I think we've made a very good tire selection for Le Mans. The last compound we had on looked really good, so we're excited about that. We'll be as prepared as possible," said Doug Fehan, the Corvette Racing program manager. With engines roaring, headlights shining bright, and hood left widely open, the pool of engineers significantly made improvements.

"Corvette has made a lot of improvements to the cars as far as driver cooling and driver comfort with the new cooling system and that should pay dividends in a 24-hour race," said Johnny O'Connell. The improvements and the consistent testing have paid dividends for the team. Those efforts were apparent in the first test session at the Circuit des 24 Heures du Mans.

"Some people wondered why we were racing in the American Le Mans Series even though we had little competition, and I think the test day result provides a clear answer," said Fehan. "We've done a tremendous amount of work over the winter and early this season, and the testing that we've done with Michelin has been outstanding. The drivers, engineers and mechanics did another exceptional job, and that's one of the reasons why Corvette Racing is successful."

"When we look at things, this will probably be our most difficult Le Mans. Every year our cars have finished the race and finished on the podium. We won't be the fastest but we'll be the toughest," concluded O'Connell.

The 75th running of the 24 Hours of Le Mans is scheduled for three in the afternoon CET on Saturday, June 16 from the Circuit de la Sarthe.

TomTom Releases New TomTom GO

Fri, 08 Jun 2007 00:00:00 -0500

The Netherlands-based navigation system manufacturer TomTom is known for coming up with the most advanced in-car navigation system. And recently the company added another product to their lineup with the TomTom GO 720 United States and Canada Edition.

The said navigational gadget features daily map improvements which mean that users of this product will be given the accurate information each and every day. It can also record driving instructions. All of the advanced features of the TomTom GO are combined in a compact product which makes it a convenient gadget to use. It also provides a five-day weather forecast.

“The new TomTom GO 720 sets the standard in smart car navigation,” says Jocelyn Vigreux, the president of TomTom Inc. “With this introduction, we are making unique new features and technologies available to our users to deliver the highest performing, most cutting-edge satellite navigation solutions available on the market today. Our unique TomTom Map Share™ technology harnesses the power of our large installed user base for the benefit of all our users.”

The TomTom GO weighs only 0.68 lbs which makes it easy to handle and bring anywhere. The plastic body material does not give it a cheap aura but a practicality that it can be used as a reliable too without flashy design cues. According to TomTom, the TomTom GO 720 can work even on temperature as cold as 14 degrees Fahrenheit. Its maximum operating temperature is at 131 degrees Fahrenheit according to its manufacturer.

Aside from the many features that the TomTom GO 720 has, it also comes along with other GPS accessories which include a carrying case, a PC cable, and an AC adapter. It also comes with a mounting bracket for the convenience of the driver and a car power adapter in case it runs out of charge while the user is still on the road. It has an antenna which is built into the compact package. It also has a built-in speaker and an internal angular rate sensor.

Because it has a built-in speaker, the car’s audio system can be connected to the TomTom GO 720 to heighten the acoustic performance of a car audio system. The TomTom GO is also a great complement to iPods since it has a built-in FM transmitter which can be used with an iPod. This product can greatly enhance the overall value of a car. While a car may have all the finest engine components like the auto gaskets used in its cylinder heads, its value can be enhanced with products as practical and as cutting-edge as the TomTom Go 720.

Thilo Koslowski, the vice president and lead automotive analyst for Gartner Inc., has this to say about the introduction of the TomTom GO 720 and the demand for such products: “Next generation navigation users are looking for navigation offerings that provide more than simple directions. These consumers want solutions that improve their individual driving experience and provide daily relevance via innovative personalization options, seamless communication functionality, intelligent safety features and dynamically updated content including map data.”

Ford Bags Most Quality Awards In J.D. Power Survey

Fri, 08 Jun 2007 00:00:00 -0500

The Ford Motor Co. bagged five top category awards in an annual survey of new car quality, more than any other automaker, according to J.D. Power and Associates. Ford overthrown the Toyota Motor Corp. and has become the winner of the most category honors in the previous year’s survey.

Toyota dropped to 7th place from 4th place last year in the overall nameplate ranking. Porsche led the overall list, followed by Lexus and Lincoln. The Mercury brand placed 8th and the Ford brand was 7th.

Neal Oddes, the director of product research and analysis for J.D. Power, said that it is the first in a number of years that all three of Ford's nameplates - Ford, Lincoln and Mercury - surpassed the industry average. None of the General Motors Corp. or the Chrysler Group brands ranked above industry average, although some individual brands made gains compared to the 2006 survey.

The 2007 Initial Quality Study rates overall brand quality and also ranks vehicles within specific segments or categories. Top model segment honors went to the Ford Mustang, Lincoln Mark LT, Lincoln MKZ, Mazda MX-5 Miata and the Mercury Milan.

The Mustang, based on the Falcon compact, is one of the landmark vehicles in the Ford lineup. As a fact, it remains in production after significant revisions. The Lincoln Mark LT, a luxury pickup, is the successor of the Blackwood. The Mark LT, based on the Ford F-150, is built at Ford's River Rouge Plant. The Lincoln MKZ, on the other hand, is the replacement of the Zephyr. Sales of the MKZ started in September in the previous year.

The Mazda MX-5, also called the Miata, is a sports car that revived the roadster segment of the automaker. The Miata is the world's best-selling sports car, with over 800,000 units sold. The Mercury Milan, a midsize sedan built on the Ford CD3 platform, is the upscale version of the Ford Fusion. The vehicle features unique front and rear fascia styling, distinctive LED tail lights, modified suspension, enhanced auto interior, projector head lamps and fog lamps, and huge rear doors.

Overall, fourteen Ford product lines placed in the top three of their respective categories. Other top category finishers were Mercedes-Benz and Toyota, which each earned three segment awards. Ford had some excellent product launches for the 2007 model year, Oddes said. Most of the automaker's improvement came by overcoming defects. The Ford Edge, for example, garnered high marks in the study.

The Edge, a midsize crossover SUV, is based on the Ford CD3 platform, originally introduced on the Mazda 6. The platform is shared with the Lincoln MKX, and the Mazda CX-9 crossovers, the Ford Fusion, Mercury Milan, and the Lincoln MKZ sedans. The Edge made its public debut at the 2006 North American International Auto Show. The delivery of the Edge was delayed due to supplier glitches as well as to check on the quality of the vehicle. Now, the crossover SUV is reaping good feedback from consumers.

The J.D. Powers survey measures design quality and production defects or malfunctions at the 90-day point of ownership and is considered a major automotive quality gauge. Some 97,000 owners and lessees responded to the 228-question surveys. Vehicles were evaluated between November 2006 and January of this year.

In a separate survey Ford's Wixom assembly plant, shuttered last week, won the Platinum Plant Quality Award for producing vehicles with the fewest defects. It is the first time since 1999 a North American plant garnered that award, J.D. Powers said.

J.D. Power and Associates' marketing research consists primarily of consumer surveys. Its ratings are based on the survey responses of randomly selected or pre-determined auto purchasers.

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Joe Thompson is the owner of a successful auto body shop in Ferndale, California. This 48 year old is also a prolific writer, contributing automotive related articles to various publications.

Source: http://www.articletrader.com

Honda To Discontinue Accord Hybrid

Thu, 07 Jun 2007 00:00:00 -0500

In September this year, the new 2008 Honda Accord will hit showrooms. The hybrid version of the popular midsize sedan though will not be making an appearance as Honda announced that it will be discontinuing the production of its Honda Accord Hybrid units. A spokesman for the company announced the news following the sales report of the company in the United States which reflected the dwindling sales figures of the hybrid.

“We have found that our hybrid system works better on smaller cars,” says Chris Naughton speaking for the second largest Japanese car manufacturer.

The use of hybrid technology became popular when the price of gasoline started skyrocketing. Hybrid cars use an electric motor to provide assistance to an internal combustion engine. For smaller cars, the use of electric motors means that during low-power operation, the engine is turned off while the electric motor powers the car. This translates to increased fuel economy as the electric motor gets its power from a high power output battery pack.

For larger cars though, the use of a hybrid powertrain is mainly to give the car a better performance. The additional power provided by an electric motor increases the power and torque output of a car. But with this application, the electric motor is not used alone. This means that the fuel savings is less than when a hybrid powertrain is used on a smaller car.

The slight increase in fuel economy led Honda car buyers to opt for the conventional Accord than the Accord Hybrid. Owing to the added electric motor, battery pack and modified engine parts, the Honda Accord Hybrid is priced more than the conventional Accord. With a difference of 6 miles in terms of gas mileage rating, the higher price of the Accord Hybrid does not justify its fuel economy according to Honda car buyers.

Honda though promised that they will be coming up with a hybrid vehicle which is not a version of their popular car models such as the Civic Hybrid. The company announced that the hybrid car will be released in 2009. According to Honda, the vehicle will be smaller and less expensive than the current Honda Civic Hybrid.

The Honda Accord is a bigger than the Civic and is equipped with a bigger engine than its direct competitor, the Toyota Camry Hybrid. The Accord hybrid uses a V6 engine unit with an electric motor which produces 253 horsepower. This increase in power though is second only to the consideration of car buyers as they are looking for fuel efficient cars which can justify the higher price of hybrid vehicles.

The Toyota Camry, on the other hand, is equipped with a smaller four-cylinder engine which returns more miles for a gallon of gasoline. This makes the Camry a better choice for many car buyers. Last month, 14 percent of all hybrid vehicles sold in the United States auto market were Camry Hybrids. The Honda Accord Hybrid only managed to corner 1.4 percent of the hybrid vehicle market.

After the announcement that the Accord Hybrid will be dropped from Honda’s lineup, there were speculations that Honda will be introducing a diesel version of the Accord. According to auto industry experts though, Honda will likely wait for Volkswagen or Mercedes-Benz to test the United States auto market for its reception of diesel cars.

Levin’s Bill Includes Hybrids

Wed, 06 Jun 2007 00:00:00 -0500

U.S. Sen. Carl Levin said that an alternative fuel efficiency proposal he is drafting will include at least $1 billion for advanced battery research to help auto companies make plug-in hybrids a reality. The proposal which will give car manufacturers the opportunity to comply with emission mandates will be introduced later this month.

The existing draft of the bill requires light trucks to hit 30 miles per gallon by 2025 and passenger cars 36 mpg by 2022. But Levin said that the dates and specific requirements could change before the plan is formally introduced. The announcement was made Friday at the Detroit Regional Chamber's Mackinac Policy Conference.

The growing heat on the emissions standards is expected when the Senate floor debate begins on a fuel economy proposal passed last month by the Senate Commerce Committee. Levin's bill, developed with fellow Michigan Democratic Sen. Debbie Stabenow, is an alternative to that plan. Levin and Stabenow also are working with two or three members of the Commerce Committee. "I don't want to identify them," Levin said in his first interview since it was disclosed he had circulated an alternative proposal. "They are working quietly with us."

Levin has been meeting with many of other representatives in recent weeks, trying to filter various proposals to increase fuel economy mandates. The alarming concerns about global warming have been linked to vehicle emissions. Also, rising gasoline prices has increased the pressure on the legislature to take action.

Automakers have fought increases in the mandates since corporate average fuel economy (CAFÉ) standards were adopted in 1975. Congress mandated automakers to increase passenger car fuel economy from an average of 13 mpg to 27.5 mpg. The standard has not been raised since. Automakers said changes that require fast, dramatic increases would cost tens of billions of dollars and perhaps force them to stop selling some of their larger, more profitable models. It is also anticipated to affect auto parts like automotive electrical bits, engines, radiators, filters and more. As such, prices of vehicles are expected to rise.

"We are fighting as hard as we can to get numbers that are realistically achievable," Levin said in the interview. "We are going to do the best we can to get it down to a number the auto industry thinks is achievable."

The proposal adopted by the Commerce Committee would require a 40 percent increase in fuel economy mandates by 2020 to 35 mpg and four percent increases each year after that. The Consumer Federation of America said in a report that the Senate bill "would pay for itself - not just over the vehicle lifetime but on a monthly basis for the majority of consumers who borrow to buy." "Our analysis proves a mandatory increase to 35 mpg in ten years passes both a consumer pocketbook test and a national cost-benefit test with flying colors," said Mark Cooper, the federation's director of research. But automakers say that the targets are unattainable.

Levin spoke at length about the work he has done in recent weeks trying to convince his colleagues that the committee's bill would dramatically harm domestic automakers. "There's almost a resentment, an anger," Levin said. "I spent hours trying to persuade colleagues, showing them mileage per gallon on vehicles of the same size. There's just an instinctive negative reaction to the domestic autos, and we have to overcome it the best we can. We are going to get the best we possibly can get.”

Charles Territo, the spokesman for the Alliance of Automobile Manufacturers, a trade group representing automakers, said that the proposal is more realistic than the Senate Commerce Committee bill.