Is GM's Green Tech Better Than Toyota's?

[mawilson 2,133]

In the next 24 months, General Motors (GM), Chrysler, Daimler (DAI) and BMW (BMWG)

will collectively bring out at least nine hybrid trucks and sport-utility vehicles, including the

Chevrolet Tahoe and Chrysler's Aspen and Dodge Durango, which are being unveiled this

week at the Los Angeles Auto Show. But for the conditions of a joint technology agreement

among the companies, each vehicle might have a badge on its side-panel that says "GM Inside."

That's right, GM, once a laggard in fuel efficiency technology, is making its nemesis

Toyota —the undisputed image leader in fuel-efficient transportation—take notice by

starting a new and legitimate rivalry for the next generation of hybrid trucks and SUVs,

as well as plug-in vehicles. Chrysler, Mercedes-Benz, and BMW all opted in 2005 to adopt

GM's hybrid technology in a four-company venture, rather than to license Toyota's hybrid

hardware.

Hybrid Trucks Ready to Roll

GM launched the Chevy Tahoe hybrid last month, while the rest of the companies are

rolling their hybrids out in 2008 and 2009. The Durango and Aspen hybrids are expected to

increase fuel efficiency by 20% to 25% over their gas-only counterparts, or about

18 city/23 highway. The SUVs will come with 5.7-liter HEMI V-8 engines with Multi-Displacement

System (MDS), also known as "cylinder deactivation," as well as a feature that allows the

engine to stop at traffic lights. That means, under highway cruising conditions, only four

cylinders will push the SUV down the road unless it's packing a huge load. The improvement

in city driving fuel economy, though, is 40% over the gas-only version.

Mercedes is using the same two-mode, hybrid transmission technology in the ML450 Hybrid,

set to launch in 2009. BMW showed its first vehicle utilizing the technology from the venture

in the X6 ActiveHybrid concept vehicle it showed last September at the Frankfurt Auto Show.

The X6, scheduled to go on sale in the fourth quarter of 2009, can be driven on electric

power only, on the combustion engine alone, or with a combination of both power sources.

It may surprise many consumers that companies as historically finicky and image-conscious

as Mercedes-Benz and BMW would opt for GM's hybrid technology over Toyota's. After all,

an internal study by GM last year showed that 70% of the consumers the automaker polled

described GM as "part of the problem" when it comes to climate change and the impact of

automobiles on the environment, whereas 70% of the same group described Toyota as

"part of the solution."

GM's Solution Packs More Power

GM began its hybrid technology program in the shadow of Toyota. The Japanese automaker

introduced the Prius hybrid in 1998 in the face of GM skepticism that there was a market for

such a vehicle, or that it was the right sort of vehicle to carry a hybrid system. GM was

developing a system for diesel-electric hybrid city buses with technology it planned to

leverage into pickup trucks and SUVs. Toyota was clearly successful in terms of tapping

into consumer desires and in developing a green halo that serves it well today. "There is

no question that we [GM] underestimated the marketing power of the technology," says

Larry Burns, GM's executive vice-president for research and development.

However, Toyota's hybrid system does not work well for towing or pulling heavy loads

associated with pickups and SUVs. That's why Toyota has yet to introduce a hybrid version

of its Tundra pickup (BusinessWeek, 1/30/07), or of SUVs such as the Sequoia and the

Land Cruiser.

Because Chrysler, BMW, and Mercedes-Benz were interested in creating hybrid versions

of its SUVs, it turned to GM's technology. Chrysler executives estimate the venture with

GM saved it at least six to nine months of replicating work that GM had already done.

"The GM technology was very sound and very adaptable to BMW's desire for high-performance

in the vehicles we develop," says Wolfgang Epple, who led BMW's involvement in the venture.

The advantage of GM's so-called two-mode system, points out GM's Larry Nitz, who has

headed the automaker's venture with the other three companies, is that the engine speed

remains constant when the gears of the vehicle are changing. This is extremely important

in the performance of a pickup or SUV when it is carrying loads or going uphill. The power

is sent to the wheels mechanically through a series of clutches and gears. In a conventional

hybrid, such as Toyota's, power is sent to the wheels electrically, which is less effective

for bigger vehicles.

Greening GM's Image

GM may not be known yet for "green" vehicles. But it is on a mission to change that.

David Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich., says that

automakers developing hybrid or electric vehicles invariably stumble over patents or

intellectual property held by either Toyota or GM.

It was GM, after all, that developed the EV-1 electric vehicle, though it suffered a

tremendous public-relations backlash when it killed the vehicle, bought back all the models

it had already sold and then destroyed them. Nevertheless, says Cole, "In a few years GM

will probably be earning more than a half-billion a year from other car companies licensing

its technology, a big portion of which will be related to hybrids and plug-ins."

Will Truck Drivers Care?

The big question, of course, is whether buyers of pickups and SUVs will buy the more

expensive hybrid versions of these vehicles at anything like the rate at which car buyers

have bought Toyota's hybrids. The marketplace is not a laboratory. Toyota has sold more

than one million hybrid vehicles since 1998, mostly Prius sedans. A Prius today costs about

$23,500, according to Edmunds.com, and gets 46 mpg. Compare that with a comparable

four-cylinder Camry costing around $23,000, which gets 21/31 mpg. The fuel economy

numbers on the Prius are compelling and consumers who buy the car, which has a unique

design and a model name synonymous with hybrids, clearly enjoy having their neighbors

and peers know they bought a hybrid.

The truck and SUV market is different for hybrids. Ford has had difficulty selling its

Escape hybrid (BusinessWeek, 12/27/05)>, despite its fuel economy of 32 mpg (front-wheel

drive), compared with 18/24 mpg (six cylinder) for the regular gas version. GM's Tahoe

gets 21/22 mpg, about 25% higher than the gas version, but still low for a car buyer

looking to make a big move in fuel economy. The Tahoe Hybrid price is not yet set, but

the arithmetic had better be compelling to impress whatever green-minded pickup and

SUV buyers are out there.

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[Hilarious Clinton 452]

Making SUVs slightly more fuel efficient? What a waste of technology.

[one...two...tree 2,762]

Making SUVs slightly more fuel efficient? What a waste of technology.

No kidding. Why don't they just make the behemoth ones run on nuclear power?

[almaty 19]

i aGREE...IMAGINE THE ISSUE WITH SPENT RODS

[one...two...tree 2,762]

i aGREE...IMAGINE THE ISSUE WITH SPENT RODS

I wouldn't offer to jump start that.

[mawilson 2,133]

Making SUVs slightly more fuel efficient? What a waste of technology.

Why? Some people will always drive SUVs and big trucks - why not make them more fuel-efficient?

Every little helps.

[one...two...tree 2,762]

Making SUVs slightly more fuel efficient? What a waste of technology.

Why? Some people will always drive SUVs and big trucks - why not make them more fuel-efficient?

Every little helps.

That's true. Many people want/need space. The SUV's of today vary widely...and many of them come in compact size (Honda CRV, Toyota RAV4)

[mawilson 2,133]

Making SUVs slightly more fuel efficient? What a waste of technology.

Why? Some people will always drive SUVs and big trucks - why not make them more fuel-efficient?

Every little helps.

That's true. Many people want/need space. The SUV's of today vary widely...and many of them come in compact size (Honda CRV, Toyota RAV4)

Yeah - they are not true SUVs though - the official name is "crossover".

[Hilarious Clinton 452]

Making SUVs slightly more fuel efficient? What a waste of technology.

No kidding. Why don't they just make the behemoth ones run on nuclear power?

Just as silly.

(while I support nuclear power... I don't support it for personal use)