TPT May 2012

G lobal M arketplace

Hacker led to a surprising discovery. While costly hybrids did win on mileage, he could save more money by buying a car powered by a technology that has been around for 151 years: the internal combustion engine. “I was surprised to see that cars like the [Ford] Fiesta were actually about a nickel cheaper to run per mile than the Prius,” said Mr Hacker, who bought a Fiesta for $16,400 instead of a Prius for $23,015. He averages 37 mpg, which he claims is on par with the real-world mileage of those of his Prius-driving friends who don’t take extreme measures (such as “dressing like Eskimos” to avoid turning on the heat) to boost their mpgs. Bloomberg ’s Mr Naughton explained that everyday workhorse engines are being enhanced by modern technologies that allow gas to burn more efficiently, such as electronic controls, eight-speed transmissions that keep engines operating in their optimal range, and direct fuel injection. He wrote, “Combine those with tried-and-true technologies like turbo- chargers, and auto makers can improve mileage and horsepower simultaneously.” As auto makers use new and not-so-new technology to wring efficiency from traditional motors, gasoline-electric hybrids are falling out of favour. Consumers do not want to pay as much as $6,000 extra for a hybrid when they can get 40 mpg on the highway in a standard car such as a Chevrolet Cruze or Hyundai Elantra. And, Mr Naughton noted, advances that enable engines to burn fuel up to 20% more efficiently mean that some of the conventional cars coming this year will deliver hybrid-calibre mileage.

› Combustion’s comeback has large implications – mainly for the US auto industry’s ambitious plans to roll out an array of electrified vehicles to meet more stringent federal fuel economy regulations. According to industry forecasts, by 2020 the number of hybrids, plug-in hybrids and electric vehicles on the US market will nearly quadruple to 153 offerings from 40 last year. But, with buyers showing a preference for gas-sipping regular cars, auto makers may rethink the need to stock their showrooms with so many hybrids, which aren’t nearly as profitable because of their costly technology. › Mr Naughton noted that Ford Motor Co has picked up the warning signals. After seven years of slim sales, the auto maker is dropping the hybrid version of its Escape SUV. Instead, it will offer two fuel-efficient gasoline engines this year that nearly match the 34 mpg the gas-electric version gets in city driving. He explains: “Thirty- four miles per gallon is a great number,” Sherif Marakby, director of Ford’s electrification programmes and engineering, told Bloomberg News . “But people are really looking for something much higher in a hybrid. They’re looking for something in the forties. And now you can get 40 mpg highway without a hybrid.” Of related interest . . . › To reduce inventory of its Chevrolet Volt because dealers had more than they needed, General Motors announced a suspension in production of the plug-in hybrid for the period 19 March through 23 April – approximately five weeks. The decision meant

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M ay 2012