Sunday, January 9, 2005

GM Sequel concept

Hybrids reach show's front line

Environmentally conscious will find venue is rich with new model debuts.

By Jeff Plungis / Detroit News Washington Bureau

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The flurry of new hybrids, fuel-cell vehicles and other earth-friendly cars and trucks debuting at this week's North American International Auto Show opens another front on an emerging battlefield: the hearts and minds of the environmentally conscious car shopper.

Graphite

Sequel

Astra

The stunning success of the Toyota Prius hybrid and strong initial demand for gasoline-electric hybrid versions of the Ford Escape SUV and Honda Accord sedan are helping prove that hybrids are a bonafide product. By combining a gas engine with an electric motor, hybrids can boost fuel efficiency as much as 30 percent while reducing emissions.

Ford Motor Co. will announce plans today to expand its hybrid lineup to five vehicles within the next three years.

The Escape hybrid's popularity has prompted the automaker to sell a hybrid version of the Mercury Mariner starting later this year -- earlier than planned.

Mazda, Ford's Japanese partner, will test a Tribute hybrid this year, with plans for full-scale output within two years. And hybrid versions of the new Ford Fusion and Mercury Milan sedans will debut within three years.

"It's a very competitive environment," said Mary Anne Wright, director of hybrid vehicle programs at Ford. "But it's a friendly competition, because we all know it's something we have to do."

General Motors Corp.'s latest entries are two strikingly different concept vehicles -- a diesel-electric Opel Astra sedan geared for the European market and the full-size GMC Graphyte SUV. The vehicles feature a scaled-down version of the gasoline-electric powertrain -- known as the Advanced Hybrid System 2 -- used in city buses GM and its Allison Transmission unit have sold in 18 cities.

The Graphyte and diesel-electric Astra rely on advanced hybrid technology to deliver benefits beyond enhanced fuel economy that distinguish hybrids. For the Astra, the added benefit is better driving characteristics; for the Graphyte, it's more towing capacity.

Toyota Motor Co.p. will show final versions of its next two hybrids: the Lexus RX400h and the Toyota Highlander SUV. It also will announce plans for another hybrid -- its fourth -- the Lexus GS 450h, a luxury sport sedan.

Toyota's latest hybrids offer improved fuel economy on top of better performance to offset the higher price of hybrid technology.

"Customers are willing to do the environmentally correct thing only if they don't have to sacrifice," said David Hermance, Toyota's executive engineer for environmental engineering. "They're not willing to wear a hair shirt. If you bring fuel economy and performance to the table, they may pay for that."

Honda Motor Co., which marketed the first hybrid car in the United States, the 66-miles-per-gallon Insight, says its next hybrid will be a "truck" -- or an SUV, minivan or pickup.

"We are treading very carefully," said Gunnar Lindstrom, senior manager of Honda's alternative fuels group. "The market is coming to us because of the cost of fuel."

The latest hybrids will share some of the spotlight this week.

With the Sequel, GM's latest fuel-cell prototype, and Ford's plan to introduce hydrogen-powered buses, automakers hope to demonstrate new advances toward developing other alternative fuel sources.

Advances in hydrogen storage enable the Sequel to travel 300 miles before refueling. It is less futuristic than the Hy-Wire or Autonomy concept vehicles that GM has shown in recent years, but that is because it is closer to road readiness and affordability, GM says.

"This is a real car with real range," said Larry Burns, GM's vice-president of research, development and planning.

Many automakers believe hydrogen is the key alternative fuel of the future.

Ford will announce today that the state of Florida will be the first customer to use eight hydrogen-powered Ford E-450 buses that will be introduced in 2006. And in February, Ford will begin testing a fleet of 30 fuel cell-powered Focus models in Taylor, Mich., Orlando, Fla., Sacramento, Calif., and Vancouver, British Columbia.

The latest models suggest automakers are becoming more sophisticated about selling hybrids and advancing fuel-cell research, analysts say.

But price is still a hurdle. Automakers are typically charging a $3,000 premium for the hybrid option, but the costs to automakers are actually higher. Toyota and Ford say growing demand is mitigating losses. Toyota has become a supplier as well, selling its technology to Nissan Motor Co. for a planned Altima hybrid.The cost of engineering and developing hybrids is expected to fall as volumes rise across the industry and automakers pair up to share resources. GM and DaimlerChrysler AG's Chrysler Group recently paired up to jointly research hybrid technology.

John DeCicco of Environmental Defense says the industry's latest efforts are similar to the initial steps companies took to promote safety advances years ago. For years, some industry executives insisted expensive new safety features wouldn't sell. But as engineering advances and higher volumes have helped lower costs, automakers have rushed to add features like side-curtain air bags and electronic stability control to differentiate their product.

"What's really promising is the advent of competition for environmental consumers," DeCicco said. "My hope is that this can become a kind of virtuous circle, and it becomes another aspect of competition."

You can reach Jeff Plungis at (202) 906-8204 or jplungis@detnews.com.