Tag: auto executives

Autos Part 1: Making Green Mainstream

  • Fisker Automotive plans to sell 16,000 of its Karma plug-in hybrid sports cars beginning in 2009. (Photo courtesy of Fisker Automotive)

For a lot of people, the words “hybrid vehicle” bring to mind dinky little
commuter cars that would get creamed in the fast lane. But red-blooded
horsepower fans might soon be able to get speed, performance, and fuel
efficiency in the same car. In the first of a two-part series on green cars, Sarah Hulett brings us this story about the marriage of
mean and green:

Transcript

For a lot of people, the words “hybrid vehicle” bring to mind dinky little
commuter cars that would get creamed in the fast lane. But red-blooded
horsepower fans might soon be able to get speed, performance, and fuel
efficiency in the same car. In the first of a two-part series on green cars, Sarah Hulett brings us this story about the marriage of
mean and green:


Tougher fuel economy standards are on the horizon, and record oil prices are
already here. So it’s no surprise to hear auto executives talking up the green
virtues of their products.


(Montage:) “GM will continue to drive the development of electrically-
driven vehicles…It’s Chrysler’s mission more environmentally responsible…plug-in hybrid…Saturn has a green
heritage…more fuel efficient, more environmentally-friendly vehicles.”


But typically, performance has taken a back seat to fuel efficiency, and vice
versa.


David Cole is president of the Center for Automotive Research. He says in
the past, the auto industry has taken a bipolar view of the car-buying public:


“One pole was fun, people want to have fun in a car, and another pole was
green, and if you’re green you’re probably not going to have a lot of fun. But
I think what we’ve seen is that they’ve come together.”


(Eric Merkle:) “That was the most unusual thing I saw at this year’s auto show: a biofuel
Ferrari, a Ferrari that runs on corn.”


Erich Merkle is an auto analyst with IRN. That’s a car industry consulting
firm. Merkle is talking about the recent Detroit auto show where Ferrari
showed an F430 Spider with a biofuel engine:


“It just seems so… odd, I guess, to see a vehicle like an F430 running on
ethanol. But Ferrari’s trying to put their hat in, throw their hat into the ring
too, and trying to do their part.”


Ferrari officials say the biofuel sports car is part of the company’s effort to
cut its emissions by 40% over the next five years, and Ferrari’s not the only
luxury performance car company offering wealthy car buyers a greener
option.


Fisker Automotive has a plug-in hybrid it plans to put on the market by the
end of next year. The Karma sports car has batteries that can power the car
for 50 miles. It also has a high-performance, four-cylinder engine for
backup:


“This re-defines performance. It’s performance that doesn’t hurt the
environment.”


Vic Doolan is the former president of BMW North America, and he now sits
on the board at Fisker. He says the Karma can do zero to 60 in under six
seconds:


“The person buying this car will want to drive a nice car, want to be seen in
the right circles, but on the other hand, they want to do something that not
only feels good to drive, but feels good to the heart. It’s to my mind a car
with a conscience, and I think it’s for people with a conscience – about the
environment, at least.”


A Fisker Karma could be yours for 80,000 dollars.


But analyst Erich Merkle says he’s not overly optimistic about the greening
of the luxury, high-performance car market:


“I still don’t think it’s the customer that’s really asking for that. And the other
thing you have to ask yourself is what kind of a difference can a company
like Fisker actually make. Sure, it’s nice, it’s something to see, and
something to kind of ooh and aah over. But at the end of the day, it’s still a very,
very low-volume vehicle, if it even makes it to market.”


Fisker plans to make 16,000 of the sports cars. That’s not a lot of volume.
But the big companies are also looking to sell efficient performance vehicles
to the masses.


Chrysler design chief Trevor Creed says the company had a certain customer
in mind when it created its Dodge concept sports wagon:


“They want to be environmentally responsible, but they also have a need for
speed. We can meet all of those needs, by combining our shared electric
motor with a lightweight aluminum structure to create a future performance
vehicle like this. Ladies and gentlemen: the Dodge ZEO.”


You’re probably not going to see the electric-only ZEO in your local Dodge
dealer lot any time soon, but another big car company is making
turbocharged engines that’ll be available in some cars as soon as this year.
Ford’s EcoBoost powertrain promises 20% better fuel economy, without
sacrificing performance. So Ford says its new cars will be fast, and efficient.


And if you’re looking for a cool, green car for your mid-life crisis but the
Ferarri’s out of your reach, the sporty plug-in Chevy Volt is expected to be
available in 2010.


For the Environment Report, I’m Sarah Hulett.

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Bush Calls for Lower Emissions

President Bush has called on federal
agencies to develop an energy plan. He wants
them to cut oil use and reduce vehicle emissions
before he leaves office. But as Dustin Dwyer
reports, some environmentalists are
not impressed:

Transcript

President Bush has called on federal
agencies to develop an energy plan. He wants
them to cut oil use and reduce vehicle emissions
before he leaves office. But as Dustin Dwyer
reports, some environmentalists are
not impressed:


The president says he wants to cut oil use 20% in the next ten years.
The question is how to get that done. He prefers that Congress pass
new laws to make the cut happen.


While they debate the issue, the president has ordered the
Environmental Protection Agency to work with the Departments of
Transportation, Energy and Agriculture to finalize their own approach
by the end of 2008.


But the Sierra Club says the president could get his plan done right
now by raising federal fuel economy standards. The President has
already called for raising the current standards by four percent per
year.


But right now, the standards are at the same level they’ve been at for
the past 17 years.


For their part, auto executives have opposed any plan to raise the
standards. They say the regulations could cost them billions of dollars
to implement.


For the Environment Report, I’m Dustin Dwyer.

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Co2 “Upstream” Battle

There’s a lot of talk these days in Washington about creating new laws
to cut greenhouse gas emissions. One major question right now is how
the government will handle carbon dioxide emissions from vehicles. Any
new regulation is expected to have some financial impact on automakers.
And, as Dustin Dwyer reports, the carmakers are looking to share the
burden:

Transcript

There’s a lot of talk these days in Washington about creating new laws
to cut greenhouse gas emissions. One major question right now is how
the government will handle carbon dioxide emissions from vehicles. Any
new regulation is expected to have some financial impact on automakers.
And, as Dustin Dwyer reports, the carmakers are looking to share the
burden:


Back in March, the House Energy and Commerce Committee held a hearing
on how the auto industry could help fight global warming. All the
bigwigs in the U.S. auto industry were there: the heads of Ford,
General Motors and Chrysler, the North American president of Toyota and
the head of the United Auto Workers.


At the hearing, all of them agreed they would support a cap on CO2
emissions from vehicles, but they had a sort of caveat:


“We believe that there’s a lot of merit to it. And we believe if it’s
upstream…”


“For Cap and Trade, I think the further upstream you go, the more
efficient you’re going to be.”


“I’d just echo the upstream part.”


“The upstream as I stated earlier and the rest is absolutely critical.”


That was Ron Gettlefinger of the UAW, Jim Press of Toyota, Alan Mulally
of Ford, and Tom Lasorda of Chrysler.


So what do they mean by “upstream”? Here’s Ford spokesman Mike Moran:


“Lower carbon fuels, so that it’s just not what comes out of the
tailpipe, but you’re moving upstream and including the fuels that would
be included in the equation in the transportation sector.”


Basically the idea is, if you have less carbon in the fuel, you’ll pump
less carbon dioxide into the air.


But car companies really can’t take the carbon out of fuel. That’s
really more of a job for the oil industry. So are auto executives just
passing the buck?


David Friedman of the Union of Concerned Scientists says yeah, they’re
dodging the issue:


“The auto companies are basically finding more creative ways to say,
‘No,’ they won’t do anything to improve their products.”


Auto executives would say they’re already working to improve their
products, with millions of ethanol-capable vehicles on the road, and a
growing number of gas-electric hybrids. And many in the auto industry feel that they’ve been singled out for
regulation in the past.


The carmakers main lobbying group, the Alliance of Automobile
Manufacturers says that for the past 30 years, the auto industry has
been the only industry subject to carbon dioxide regulations. Though
most people try to avoid saying so in public, there is clearly some
tension between the auto industry and the oil industry.


Louis Burke is with Conoco Phillips. He says his company is willing to
do more to cut greenhouse gas emissions. In fact, the oil company just
came out in favor of setting up mandatory federal rules. Those include a
possible system that caps carbon dioxide emissions, and allows
companies to trade carbon credits as if they were commodities:


“You can cap and trade at some point down within the value chain,
whether it’s all the way upstream, or whether it’s pretty far downstream. You
can also apply a carbon tax throughout the whole value chain. The whole
idea is it’s gotta be transparent, it can’t penalize any one group.”


So upstream, downstream, the point is something needs to be done.


David Friedman of the Union of Concerned Scientists says everyone can
do a little more:


“Everyone has to do their part. That means car companies have to
produce vehicles to get more miles to the gallon. Oil companies need to
have lower carbon fuels and yes, even consumers need to find ways to
drive less.”


It’s still not clear what exactly what approach Congress will take
toward cutting auto emissions, but while leaders in Washington try to
settle on a plan, local and state officials across the country are
coming up with their own plans.


California and 10 other states have their own plans to regulate
tailpipe emissions. Those plans are being challenged in court by the
auto industry. And California has also gone forward with the nation’s first low carbon
standard for fuels.


That “upstream” plan has the support of both auto and oil companies.


For the Environment Report, I’m Dustin Dwyer.

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