Green Cars: A Tough Sell

  • Hybrid cars like this Honda Insight look good to consumers at first...until they see the price tag. (Photo courtesy of the National Park Service)

We’re hearing a lot more from automakers these days about new
technologies that will save you gas. Most of the technologies they talk about
are not in showrooms yet. So when will they be? And which technologies
will find their way to your car first? Dustin Dwyer has some answers:

Transcript

We’re hearing a lot more from automakers these days about new
technologies that will save you gas. Most of the technologies they talk about
are not in showrooms yet. So when will they be? And which technologies
will find their way to your car first? Dustin Dwyer has some answers:


There is already one kind of car out there that will save you a lot of gas. You’ve heard of
it before. It’s a hybrid. And it seems like everyone says they want one. They say they do:


“I live in the world where I don’t deal with what people say they think, or what they give
to a survey. I live in the world where they write the check.”


That’s Mike Jackson. He’s the head of the country’s largest chain of car dealerships –
Autonation. Jackson is pretty much the prototypical, no-nonsense businessman. He’s also
somewhat of an unlikely environmentalist, but Jackson doesn’t have much faith in today’s
hybrids:


“70% of our customers want to talk about hybrids when they walk through the door.
They’re aware of it. They think it’s a great idea. And they’re predisposed to buy hybrids.
You then get them at the table.”


Jackson says that’s when the customer asks how much extra the hybrid costs, and how
long it takes to make that money up by saving at the pump. That’s when the deal falls
apart:


“And we have a two percent closing rate.”


Jackson says, plain and simple, most people just aren’t willing to pay the extra money to
get a hybrid. So he says to really cut gas use, the industry still needs mass market
solutions, and the first technology that he’s looking out for is something that Ford
announced earlier this year. Ford’s chief marketing guy, Jim Farley calls it Ecoboost:


“Which uses direct fuel injection and turbocharging to get big engine power and all that
low end torque we love from smaller, inherently more fuel efficient engines.”


Direct injection and turbocharging have been around,
but mostly as a way to make cars go faster. Now the idea is to use them on small engines
so that when a customer comes in and wants a big powerful engine, Ford can give them
Ecoboost, which promises the same power with 20 percent less gas, and 15 percent fewer
CO2 emissions. Ford plans to put Ecoboost in more than half a million cars per year
within the next five years.


In that same time frame, you can also expect to see more diesel engines coming out from
all the automakers. Diesel will get you better mileage, and it’s now cleaner in some ways
than gasoline. But it can create more smog-forming gases such as nitrous oxide.


Ethanol is also still out there. But at best, most people say today’s corn ethanol really
doesn’t save any fossil fuels when you look at what it takes to raise the corn. So the big
hope is cellulosic ethanol, which can be made from grasses, or even used tires.


Nobody’s found a good way to make it yet and Mike Jackson, the no-nonsense car
salesman, says he’s not holding his breath. Instead, he’s looking for the real game
changer – hybrid vehicles that can be charged through a wall socket and run on electricity
alone for miles before a gas engine has to kick in. Jackson expects those plug-in hybrids
on the road within five years:


“The cost-benefit ratio is going to be so compelling, and people are going to be so
enthralled at the idea they don’t have to go to the gas station, just go home and plug it into
the socket, this idea will win over American consumers.”


The auto companies are scrambling to make a plug in hybrid. Right now the race is
basically between General Motors and Toyota. Both say they might be able to build a
plug in hybrid by 2010.


The problem is the battery. To get the higher charge, hybrids need a new kind of battery –
something called a lithium ion battery. It’s the same kind of battery, it turns out, that’s
used in your cell phone, but there are some challenges scaling that up for an automobile.
Lithium ion batteries can overheat, and right now they’re more expensive than the
batteries in today’s hybrids.


But Bob Lutz at General Motors says you can bet those problems will be solved:


“Every manufacturer in the world is hot on the trail of lithium ion technology, and the
battery manufacturers all say it’s going to work.”


And once you have viable lithium ion batteries, you’re talking about cars that can get
more than 100 miles to the gallon or better.


Most people say the next step is hydrogen fuel cells. With the fuel cells, you put
hydrogen in, and the only thing that comes out of the tail pipe is water vapor.
Some in the industry say fuel cells could be ready for the mass market in the 2020s.
Mike Jackson isn’t so sure. He pegs the arrival of fuel cells at somewhere between not in
our lifetime and never.


For the Environment Report, I’m Dustin Dwyer.

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