JD Powers is reporting through their Power Information Network (PIN) rising gas prices are moving some owners of large and midsize trucks into smaller vehicles. They are also seeing a similar pattern for hybrid electric cars. As gas prices increase, so do hybrid car sales.
The study shows that from February to April, as gas prices rose to all time highs ($3.10 a gallon nationwide average), owner loyalty is being affected. Midsize and large utility vehicle owners have moved into smaller vehicles. At the same time, owner loyalty within small vehicles segment has increased. The small vehicle segment includes cars and light trucks.
There have been increased sales seen in four cylinder engines from 27.5 percent to 35.7 percent from April 2004 to April 2007. Time to turn (the number of days a car spends on a dealership lot before being sold) has also decreased for new and used small vehicles as gas price rise.
It should be noted that large and midsize cars, small crossovers and small SUVS have remained relatively unchanged.
These patterns are very similar to those seen in 2006 when gas prices rose.
Wednesday, 16 May 2007
Small Vehicle and Hybrid Sales Are Benefitting From the Rise in Gas Price
JD Powers is reporting through their Power Information Network (PIN) rising gas prices are moving some owners of large and midsize trucks into smaller vehicles. They are also seeing a similar pattern for hybrid electric cars. As gas prices increase, so do hybrid car sales.
The study shows that from February to April, as gas prices rose to all time highs ($3.10 a gallon nationwide average), owner loyalty is being affected. Midsize and large utility vehicle owners have moved into smaller vehicles. At the same time, owner loyalty within small vehicles segment has increased. The small vehicle segment includes cars and light trucks.
There have been increased sales seen in four cylinder engines from 27.5 percent to 35.7 percent from April 2004 to April 2007. Time to turn (the number of days a car spends on a dealership lot before being sold) has also decreased for new and used small vehicles as gas price rise.
It should be noted that large and midsize cars, small crossovers and small SUVS have remained relatively unchanged.
These patterns are very similar to those seen in 2006 when gas prices rose.
The study shows that from February to April, as gas prices rose to all time highs ($3.10 a gallon nationwide average), owner loyalty is being affected. Midsize and large utility vehicle owners have moved into smaller vehicles. At the same time, owner loyalty within small vehicles segment has increased. The small vehicle segment includes cars and light trucks.
There have been increased sales seen in four cylinder engines from 27.5 percent to 35.7 percent from April 2004 to April 2007. Time to turn (the number of days a car spends on a dealership lot before being sold) has also decreased for new and used small vehicles as gas price rise.
It should be noted that large and midsize cars, small crossovers and small SUVS have remained relatively unchanged.
These patterns are very similar to those seen in 2006 when gas prices rose.
Tuesday, 15 May 2007
20 in 10 Proposal
President Bush, in his State of the Union speech, outlined a "Twenty in Ten" plan in which the the US would cut gasoline consumption by twenty percent over the next ten years.
The Twenty in Ten plan has so far consisted of two Legislative Proposals
1. Increasing The Supply Of Renewable And Other Alternative Fuels By Setting A Mandatory Fuels Standard To Require The Equivalent Of 35 Billion Gallons Of Renewable And Other Alternative Fuels In 2017 – Nearly Five Times The 2012 Target Now In Law. In 2017, this will displace 15 percent of projected annual gasoline use.
2. Reforming And Modernizing Corporate Average Fuel Economy (CAFE) Standards For Cars And Extending The Current Light Truck Rule. In 2017, this will reduce projected annual gasoline use by up to 8.5 billion gallons, a further 5 percent reduction that, in combination with increasing the supply of renewable and other alternative fuels, will bring the total reduction in projected annual gasoline use to 20 percent.
Back in April, the Supreme Court ruled the EPA must take action under the Clean Air Act regarding greenhouse Gas emissions from motor vehicles. And so President Bush took the first step today towards such regulation by issuing an Executive Order for the U.S. Environmental Protection Agency (EPA) And The U.S. Departments Of Energy (DOE), Transportation (DOT), And Agriculture (USDA).
Bush directed the above agencies to require coordination between the agencies when developing any regulations regarding greenhouse emissions from "motor vehicles, nonroad vehicles, and nonroad engines proceed in a manner consistent with sound science, analysis of benefits and costs, public safety, and economic growth." Such regulation should be developed by the end of 2008.
References: The Presidents Executive Order and Twenty in Ten Fact Sheet
Steve Johnson, Administrator of the EPA had the following to say in response to the Executive Order (source: Green Car Congress and the following transcript)
The Alliance represents 9 manufacturers including BMW, DaimlerChrsysler, Ford, GM, Mazda, Mitsubishi, Porsche, Toyota and Volkswagen.
The Twenty in Ten plan has so far consisted of two Legislative Proposals
1. Increasing The Supply Of Renewable And Other Alternative Fuels By Setting A Mandatory Fuels Standard To Require The Equivalent Of 35 Billion Gallons Of Renewable And Other Alternative Fuels In 2017 – Nearly Five Times The 2012 Target Now In Law. In 2017, this will displace 15 percent of projected annual gasoline use.
2. Reforming And Modernizing Corporate Average Fuel Economy (CAFE) Standards For Cars And Extending The Current Light Truck Rule. In 2017, this will reduce projected annual gasoline use by up to 8.5 billion gallons, a further 5 percent reduction that, in combination with increasing the supply of renewable and other alternative fuels, will bring the total reduction in projected annual gasoline use to 20 percent.
Back in April, the Supreme Court ruled the EPA must take action under the Clean Air Act regarding greenhouse Gas emissions from motor vehicles. And so President Bush took the first step today towards such regulation by issuing an Executive Order for the U.S. Environmental Protection Agency (EPA) And The U.S. Departments Of Energy (DOE), Transportation (DOT), And Agriculture (USDA).
Bush directed the above agencies to require coordination between the agencies when developing any regulations regarding greenhouse emissions from "motor vehicles, nonroad vehicles, and nonroad engines proceed in a manner consistent with sound science, analysis of benefits and costs, public safety, and economic growth." Such regulation should be developed by the end of 2008.
References: The Presidents Executive Order and Twenty in Ten Fact Sheet
Steve Johnson, Administrator of the EPA had the following to say in response to the Executive Order (source: Green Car Congress and the following transcript)
We will solicit comments on a proposed rule from a broad array of stakeholders and other interested members of the public. Our ultimate decision must reflect a thorough consideration of public comments and an evaluation of how it fits within the scope of the Clean Air Act. Only after EPA has issued a proposal and considered public comments can it finalize a regulation.Dave McCurdy, President & CEO of the Alliance, released the following press release in response to President Bush
"Automakers support reforming and raising car fuel economy standards, consistent with the need to preserve jobs and consumer choice. Determining the right level for the future will require sound science and engineering, in an open process that involves everyone. Automakers support DOT and NHTSA continuing to set fuel economy standards, and we believe that NHTSA should begin a rulemaking now to implement the President’s plan.
"The Alliance pledges to work constructively with Congress and the administration to help reduce oil consumption and carbon dioxide, while at the same time preserving the diverse range of automobiles that consumers require today."
"Automakers have put more than 10 million alternative fuel autos, including hybrids, diesel and ethanol-capable vehicles, U.S. roads, and we need more alternative fuels to power them."
Background on CAFE and CO2
· Automakers join policymakers in wanting to accelerate the introduction of fuel-efficient technologies on our roads, and Alliance members support raising fuel economy standards to the maximum feasible level that balances technological feasibility, affordability, jobs and safety.
· Extreme, unrealistic CAFE increases could force manufacturers into offering vehicles for sale that do not match up with consumer demand for versatility, performance, affordability, and passenger and cargo space. If higher standards make vehicles less attractive to consumers, vehicle sales will drop, negatively impacting auto dealers, suppliers, automakers, and the U.S. economy.
· Automakers have long been contributing solutions on energy security, vehicle efficiency, and climate change. The CAFE program has regulated the amount of carbon emissions from cars and trucks for the past 30 years – unlike any other part of the transportation sector.
· As Congress focuses on climate change, it should consider a broader set of policies beyond just CAFE to reduce CO2. The transport sector comprises a complex system of fuel providers, automobiles, and consumers, and each has a role to play if we are to meaningfully reduce oil consumption and CO2 emissions.
Background on Alternative Fuels
· Automakers commend President Bush for encouraging the development of alternative fuel automobiles and alternative fuels. Currently automakers are selling 60 models of alternative fuel automobiles including ethanol-capable E-85, hybrid electric, clean diesel and more. (A list of vehicles can be found at www.DiscoverAlternatives.com.)
· The Alliance supports improved energy conservation and energy security, and automakers advocate developing U.S. transportation energy policy that is comprehensive involving all sectors of the economy. Reducing petroleum consumption is a shared responsibility.
· Automakers are working with the energy industry to develop a range of alternative fuels capable of sustaining mobility while ensuring more secure energy sources. Alliance members have forged more than 25 partnerships, joint ventures or research and development projects with energy producers to expand the fueling infrastructure for fuels such as ethanol, biomass and hydrogen.
The Alliance represents 9 manufacturers including BMW, DaimlerChrsysler, Ford, GM, Mazda, Mitsubishi, Porsche, Toyota and Volkswagen.
20 in 10 Proposal
President Bush, in his State of the Union speech, outlined a "Twenty in Ten" plan in which the the US would cut gasoline consumption by twenty percent over the next ten years.
The Twenty in Ten plan has so far consisted of two Legislative Proposals
1. Increasing The Supply Of Renewable And Other Alternative Fuels By Setting A Mandatory Fuels Standard To Require The Equivalent Of 35 Billion Gallons Of Renewable And Other Alternative Fuels In 2017 – Nearly Five Times The 2012 Target Now In Law. In 2017, this will displace 15 percent of projected annual gasoline use.
2. Reforming And Modernizing Corporate Average Fuel Economy (CAFE) Standards For Cars And Extending The Current Light Truck Rule. In 2017, this will reduce projected annual gasoline use by up to 8.5 billion gallons, a further 5 percent reduction that, in combination with increasing the supply of renewable and other alternative fuels, will bring the total reduction in projected annual gasoline use to 20 percent.
Back in April, the Supreme Court ruled the EPA must take action under the Clean Air Act regarding greenhouse Gas emissions from motor vehicles. And so President Bush took the first step today towards such regulation by issuing an Executive Order for the U.S. Environmental Protection Agency (EPA) And The U.S. Departments Of Energy (DOE), Transportation (DOT), And Agriculture (USDA).
Bush directed the above agencies to require coordination between the agencies when developing any regulations regarding greenhouse emissions from "motor vehicles, nonroad vehicles, and nonroad engines proceed in a manner consistent with sound science, analysis of benefits and costs, public safety, and economic growth." Such regulation should be developed by the end of 2008.
References: The Presidents Executive Order and Twenty in Ten Fact Sheet
Steve Johnson, Administrator of the EPA had the following to say in response to the Executive Order (source: Green Car Congress and the following transcript)
The Alliance represents 9 manufacturers including BMW, DaimlerChrsysler, Ford, GM, Mazda, Mitsubishi, Porsche, Toyota and Volkswagen.
The Twenty in Ten plan has so far consisted of two Legislative Proposals
1. Increasing The Supply Of Renewable And Other Alternative Fuels By Setting A Mandatory Fuels Standard To Require The Equivalent Of 35 Billion Gallons Of Renewable And Other Alternative Fuels In 2017 – Nearly Five Times The 2012 Target Now In Law. In 2017, this will displace 15 percent of projected annual gasoline use.
2. Reforming And Modernizing Corporate Average Fuel Economy (CAFE) Standards For Cars And Extending The Current Light Truck Rule. In 2017, this will reduce projected annual gasoline use by up to 8.5 billion gallons, a further 5 percent reduction that, in combination with increasing the supply of renewable and other alternative fuels, will bring the total reduction in projected annual gasoline use to 20 percent.
Back in April, the Supreme Court ruled the EPA must take action under the Clean Air Act regarding greenhouse Gas emissions from motor vehicles. And so President Bush took the first step today towards such regulation by issuing an Executive Order for the U.S. Environmental Protection Agency (EPA) And The U.S. Departments Of Energy (DOE), Transportation (DOT), And Agriculture (USDA).
Bush directed the above agencies to require coordination between the agencies when developing any regulations regarding greenhouse emissions from "motor vehicles, nonroad vehicles, and nonroad engines proceed in a manner consistent with sound science, analysis of benefits and costs, public safety, and economic growth." Such regulation should be developed by the end of 2008.
References: The Presidents Executive Order and Twenty in Ten Fact Sheet
Steve Johnson, Administrator of the EPA had the following to say in response to the Executive Order (source: Green Car Congress and the following transcript)
We will solicit comments on a proposed rule from a broad array of stakeholders and other interested members of the public. Our ultimate decision must reflect a thorough consideration of public comments and an evaluation of how it fits within the scope of the Clean Air Act. Only after EPA has issued a proposal and considered public comments can it finalize a regulation.Dave McCurdy, President & CEO of the Alliance, released the following press release in response to President Bush
"Automakers support reforming and raising car fuel economy standards, consistent with the need to preserve jobs and consumer choice. Determining the right level for the future will require sound science and engineering, in an open process that involves everyone. Automakers support DOT and NHTSA continuing to set fuel economy standards, and we believe that NHTSA should begin a rulemaking now to implement the President’s plan.
"The Alliance pledges to work constructively with Congress and the administration to help reduce oil consumption and carbon dioxide, while at the same time preserving the diverse range of automobiles that consumers require today."
"Automakers have put more than 10 million alternative fuel autos, including hybrids, diesel and ethanol-capable vehicles, U.S. roads, and we need more alternative fuels to power them."
Background on CAFE and CO2
· Automakers join policymakers in wanting to accelerate the introduction of fuel-efficient technologies on our roads, and Alliance members support raising fuel economy standards to the maximum feasible level that balances technological feasibility, affordability, jobs and safety.
· Extreme, unrealistic CAFE increases could force manufacturers into offering vehicles for sale that do not match up with consumer demand for versatility, performance, affordability, and passenger and cargo space. If higher standards make vehicles less attractive to consumers, vehicle sales will drop, negatively impacting auto dealers, suppliers, automakers, and the U.S. economy.
· Automakers have long been contributing solutions on energy security, vehicle efficiency, and climate change. The CAFE program has regulated the amount of carbon emissions from cars and trucks for the past 30 years – unlike any other part of the transportation sector.
· As Congress focuses on climate change, it should consider a broader set of policies beyond just CAFE to reduce CO2. The transport sector comprises a complex system of fuel providers, automobiles, and consumers, and each has a role to play if we are to meaningfully reduce oil consumption and CO2 emissions.
Background on Alternative Fuels
· Automakers commend President Bush for encouraging the development of alternative fuel automobiles and alternative fuels. Currently automakers are selling 60 models of alternative fuel automobiles including ethanol-capable E-85, hybrid electric, clean diesel and more. (A list of vehicles can be found at www.DiscoverAlternatives.com.)
· The Alliance supports improved energy conservation and energy security, and automakers advocate developing U.S. transportation energy policy that is comprehensive involving all sectors of the economy. Reducing petroleum consumption is a shared responsibility.
· Automakers are working with the energy industry to develop a range of alternative fuels capable of sustaining mobility while ensuring more secure energy sources. Alliance members have forged more than 25 partnerships, joint ventures or research and development projects with energy producers to expand the fueling infrastructure for fuels such as ethanol, biomass and hydrogen.
The Alliance represents 9 manufacturers including BMW, DaimlerChrsysler, Ford, GM, Mazda, Mitsubishi, Porsche, Toyota and Volkswagen.
Nissan Technology Center Will Focus on Hybrid Engine
Nissan opened up a technology center in Atsugi, just west of Tokyo. Nissan has said it expects to have its own hybrid engine by 2010.
Nissan Chief Executive Carlos Ghosn has been cautious in his approach to hybrid cars. And so Nissans first hybrid, the Altima Hybrid, was built using technology from Toyota. But Nissan wants to go their own way.
Part of that reluctance has been a lack of funds to do research since their near total collapse in 1999. Only their partnership with Renault SA saved them.
Nissan is also developing a "three-liter car" capable of traveling 100 kilometers, or 60 miles, on just three liters -- or about three quarts -- of gasoline. The company hopes to unveil a new model in Japan in 2010.
Source:Nissan opens technology center
Nissan Chief Executive Carlos Ghosn has been cautious in his approach to hybrid cars. And so Nissans first hybrid, the Altima Hybrid, was built using technology from Toyota. But Nissan wants to go their own way.
Part of that reluctance has been a lack of funds to do research since their near total collapse in 1999. Only their partnership with Renault SA saved them.
Nissan is also developing a "three-liter car" capable of traveling 100 kilometers, or 60 miles, on just three liters -- or about three quarts -- of gasoline. The company hopes to unveil a new model in Japan in 2010.
Source:Nissan opens technology center
Nissan Technology Center Will Focus on Hybrid Engine
Nissan opened up a technology center in Atsugi, just west of Tokyo. Nissan has said it expects to have its own hybrid engine by 2010.
Nissan Chief Executive Carlos Ghosn has been cautious in his approach to hybrid cars. And so Nissans first hybrid, the Altima Hybrid, was built using technology from Toyota. But Nissan wants to go their own way.
Part of that reluctance has been a lack of funds to do research since their near total collapse in 1999. Only their partnership with Renault SA saved them.
Nissan is also developing a "three-liter car" capable of traveling 100 kilometers, or 60 miles, on just three liters -- or about three quarts -- of gasoline. The company hopes to unveil a new model in Japan in 2010.
Source:Nissan opens technology center
Nissan Chief Executive Carlos Ghosn has been cautious in his approach to hybrid cars. And so Nissans first hybrid, the Altima Hybrid, was built using technology from Toyota. But Nissan wants to go their own way.
Part of that reluctance has been a lack of funds to do research since their near total collapse in 1999. Only their partnership with Renault SA saved them.
Nissan is also developing a "three-liter car" capable of traveling 100 kilometers, or 60 miles, on just three liters -- or about three quarts -- of gasoline. The company hopes to unveil a new model in Japan in 2010.
Source:Nissan opens technology center
Toyota Looks to Increase Profits on Hybrids
According to a Reuters report, Toyota vice president Masatami Takimoto was quoted as predicting Toyota will be making just as much money on a hybrid car as they do on a conventional gas-only engine by 2010. They are also hoping Toyota will be selling only hybrids by 2020.
By making the Prius a mainstream vehicle, they are that much closer to their sales goal of one million hybrids annually by 2010. By doing so, they will be able to cut down on construction costs.
Rumors are circulating lately that Toyota is looking to split the Prius into three types. By building a hybrid compact, midsize and fullsize sedan under the Prius name, they are hoping to capitalize on the brand.
By making the Prius a mainstream vehicle, they are that much closer to their sales goal of one million hybrids annually by 2010. By doing so, they will be able to cut down on construction costs.
Rumors are circulating lately that Toyota is looking to split the Prius into three types. By building a hybrid compact, midsize and fullsize sedan under the Prius name, they are hoping to capitalize on the brand.
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