TheFutureofCars.net

Quote for the day: “Chicken Little can rest easy tonight knowing that the sky is not falling.” 

Fire Engineering, explaining that electric vehicles have no more risk of fire than gas-powered vehicles.  

Fuel economy rules rule the news:  Regulatory hearings are often sleepy affairs — but not when the subject is cars and the location is Detroit.  EPA/NHTSA hearings on new 54.5 mpg fuel economy standards on Jan. 17thattracted a dozen or more news organizations.NY Times is impressed with the broad consensus among manufacturers, labor and enviros backing the new rules, leading with:  “New Gas Economy Rules Generate Wide Support.”  WWJ, Michigan Radio and AutoBlogGreen have a similar take; Detroit Free Press and Detroit News lead with endorsement of new rules by UAW President Bob King.

WSJ (sub) leads its coverage with the auto dealers, the lone industry stakeholder to oppose the new rules, citing concerns about increased cost of vehicles.  So did the Automotive News (sub) – not a surprise since auto dealers make up the bulk of its readership.  A bit more surprising to see HybridCars.com, whose readers are fans of advanced tech vehicles, lead with “CAFE hearings focus opposing viewpoints.”  Actually, aside from the dealers, there weren’t many opposing viewpoints in evidence.

Auto News tells dealers to play ball:  On the opinion front, an intriguing development was an Automotive News editorial (sub) in advance of the Detroit hearings, suggesting that the National Association of Auto Dealers “reconsider its opposition” to 54.5 mpg rules; as noted above, dealers make up a substantial chunk of AN readers.

The Free Press editorial page continues its supportive take with an op-ed from Oakland University transportation expert Walter McManus, calling the new fuel rules “ambitious but doable.”  Nolan Finley, the conservative editorial page editor at the Detroit News, is quite underwhelmed, claiming the Feds have “tamed” Detroit with an “arrogant disregard for the marketplace.”

Hoover Institution’s Paul Gregory takes the Times to task for “dishonest” reporting, claiming“wide support” for new rules comes only from “bailout recipients, GM and Chrysler, and the UAW.”  Er, no.   Automakers Ford, Honda, Toyota, Nissan, Hyundai, KIA and BMW –none of whom received a penny of TARP money – also voiced support for the new standards.

Volt gets a clean bill of health:    NHTSA released its report on post-crash test battery fires on Chevy’s high-profile electric Volt this past Friday, gathering wide press coverage over the weekend. NHTSA’s full 135-page report here; GM (and EV advocates) have to be happy with NHTSA’s statement that “no discernible defect trend exists” and that that the agency is “unaware of any real-world crashes that have resulted in a battery-related fire involving the Chevy Volt or any other electric vehicle.”

Not so happy, perhaps with a pic of a burned out vehicle on the front page of the NYT Saturday business section (tho no pic in the online version of the story.)  Detroit Free Press uses a foto of a fully intact, unburned Volt to illustrate its story, as do the LA Times and Bloomberg.

Green Car Reports shows a pic of an actual crash test: a huge battering ram smashing into a vehicle.  Real-life consumers can be reassured, perhaps, that no such thing will ever happen to a car driven by a real person.  Last month, the safety experts at Fire Engineering pointed out that any car, however powered is at risk of fire after a crash:

Electric and hybrid vehicles are at no increased risk. We have confidence that the manufacturers of these excellently engineered vehicles will come up with an executable and reasonable response plan to deal with any battery issues. Chicken Little can rest easy tonight knowing that the sky is not falling.

Volt gets vote from consumers:  Bloomberg follows up on Monday with a look at how Chevy can rebuild the Volt’s image after the controversy.  Oddly missing from the story is that no rebuilding may be necessary:  In December – just as the fire stories were sparking – the Volt had its best sales month ever, up 34% over November.   Cautionary note:  Automotive News (sub only) reports today that some Chevy dealers are not taking GM’s full allocation of the EVs.   Less cautionary:  Germany-based Continental AG, one of the world’s largest auto suppliers, is betting the market for EVs and hybrids will grow, joining with South Korea’s SK Innovation to build electric batteries.

Torque News remains bullish on EVs, pointing out – as Randy Essex did last week in the Freep – that first-year Leaf and Volt sales of 17,000 + outpaced first-year sales of hybrids in 2000.  Energy Secretary Steven Chu, a nuclear physicist, predicts a sharp drop in battery prices, which will reduce the overall price of EVs.   And USA Today, CBS, Business Week, CNet and others flag a Deloitte and Touche study which says 60% of Gen Y consumers – 80 million people born in the 80s and 90s – “would prefer to buy a hybrid or electric car over any of kind of car or truck.”

Wrapping up this year’s Detroit Auto Show, NY Times details automakers’ various approaches to higher mileage, which include not only electrics and hybrids, but various improvements to conventionally-powered internal combustion vehicles:  lighter materials, diesel engines, direct fuel injection, advanced transmissions, and turbocharging, which yields more power out of smaller engines.  EPA and NHTSA project that to reach 54.5 mpg by 2025, more than 80% cars and trucks will still have internal combustion engines, so improvements in conventional vehicles will actually be where most of the action is.

It ain’t over ‘til it’s over:  GOP Rep. Darrell Issa, chair of the House Oversight and Investigations Committee, is probing the Volt safety probe, looking for evidence that politics played a role in the investigation.  He thinks he’s got a new Watergate, calling the Wed. Jan. 25 session: “What did NHTSA know and when did they know it?”  But GM is not stonewalling; Detroit News reports CEO Daniel Akerson will testify.  So will NHTSA chief David Strickland.  Stay tuned.

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