Editorial: CAFE standards -- not a solution to the Detroit Three's Financial Problems

Posted on 29 June 2007 | 0 Comments

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James A. Croce, CEO NextEnergy Originally published in the Michigan Energy Report The massive controversy surrounding CAFE standards, or Corporate Average Fuel Economy Standards, is so intense that it’s difficult to escape the hype coming from all sides. The fundamental issue is whether an increase in CAFE standards is an effective means to drive the U.S. market towards a sustainable energy future. From the pro-CAFE standards camp; American automakers are losing market share to the more fuel-efficient vehicles produced by foreign automakers and need the “tough love” only CAFE standards can provide. Plus, CAFE standards will ultimately help force the U.S. to sever our ties to foreign oil, and CAFE standards will also help reduce harmful emissions from our vehicles by reducing the amount of petroleum we burn. It’s the first part of this argument, the “tough love” argument, which is most troubling to me. I don’t buy Congress’ contention that if the Detroit Three simply bought into CAFE sooner, they would be on a better financial footing today. There is no evidence to suggest that. And other huge and critical issues such as health care costs and unfair international trade agreements are not given due consideration in the CAFE logic. Only recently have we seen a migration among consumers towards energy efficient vehicles and yet, Detroit 3 market share has been on a steady decline for decades. The ailment goes far deeper than the cure CAFE can provide. Washington is frustrated with the Detroit automakers over their “just say no to CAFE” history and are determined to “help” by enacting an arbitrary set of CAFE mandates that, ultimately, will not lead Michigan’s auto industry to future prosperity. Michigan’s right-minded Congressional delegates are like voices in the D. C. wilderness arguing on behalf of the Detroit 3 and Toyota. They care for our state, understand the real issues, and are our strongest advocates. Not so with a majority of delegates from other states. I was invited to Washington D.C. on June 6th by Sen. Debbie Stabenow and Senate Majority Leader Harry Reid to a Senate Democrats “Manufacturing Summit” and heard their anger first hand. The Summit focused on three core issues: health care, trade, and energy. After much discussion, health care and trade issues emerged as far greater detriments to the Detroit 3’s prosperity than their track record of building fuel efficient cars and trucks. And yet, for now, it is far more expedient for Congress to “save” Detroit by rubber stamping CAFE than to accelerate resolution to the thornier issues of national health care and unfair trade practices. To Congress, it’s “win-win” for the country. But it does not help Michigan. And only exacerbates our problems. Furthermore, the perception of Michigan as a “clean technology” innovation leader greatly suffers as our incumbent automotive industry and Congressional delegation struggle for reason in the CAFE debate. There is no silver bullet solution to fix Detroit’s automotive market share decline and there’s certainly no silver bullet solution to address our nation’s energy woes. However, it is in our nation’s national security interest to prod consumers towards adopting fuel efficient vehicles as well as a diverse portfolio of domestically-derived alternative fuels. But it’s a mistake for us Michiganders to expect CAFE to fix the economic woes resulting from a decades-long decline in our manufacturing sector. And, by itself, CAFE isn’t enough to drive our nation’s energy security either. The better solution is a sustained commitment to funding alternative energy innovation (a la the Manhattan Project or the Apollo program), and a demonstration of real political will to “just say no” to large corporate fossil fuel interests. That’s when real progress will occur. That’s when we will really make a dent in fossil fuel imports. Only then will our nation and the State of Michigan achieve economic security through energy diversity. Sign up for a free subscription to the Michigan Energy Report e-newsletter.

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Prius redo could be held up due to battery issues

Posted on 28 June 2007 | 0 Comments

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Thursday June 28th, 2007 Toyota Motor Corp. might postpone the launch of the third-generation Prius gas/electric hybrid model by six months -- to the spring of 2009 -- Japanese industrial daily newspaper Nikkan Kogyo Shimbun reported. According to the newspaper, Toyota is delaying the launch to ensure quality after it decided to forego replacing the nickel-metal hydride battery used in the hybrid gas/electric system with a lithium-ion battery for the first version of the upcoming model. Toyota and battery partner Matsushita Electric Industrial Co. are developing a lithium-ion battery that many expected would find its way into the next Prius. The newspaper reported last month that those plans were also delayed due to safety concerns. Toyota is boosting production of the Prius by 40 per cent this year to 280,000 units. Toyota sold 186,000 Prius sedans in 2006 and 313,000 hybrid gas/electric vehicles in total. Read more on canadaeast.com.

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Ford, Chrysler join greenhouse gas group

Posted on 28 June 2007 | 0 Comments

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Another sign of the green tech revolution sweeping the auto industry: Ford Motor Co. and the Chrysler Group have followed General Motors Corp. in joining the United States Climate Action Partnership, a coalition that wants to reduce greenhouse gases tied to global warming. The alliance of big business and environmental groups told President Bush in January that mandatory emissions caps are needed to reduce the flow of carbon dioxide and other heat-trapping gases into the atmosphere. Ford and Chrysler on Wednesday announced their membership in the coalition. "We are at a critical stage in the conversation on climate change, energy consumption and environmental protection," Ford President and CEO Alan Mulally said in a statement. "We all recognize it is time for action." Mulally and Tom LaSorda, Chrysler Group president and CEO, both said their companies support the partnership's push for cost-effective, but quick, new technologies. "We have been actively developing a range of advanced technology vehicles to address the climate change issue, reducing our energy consumption on a global basis and working to create vehicles with the environmental innovation our customers desire," Mulally said. Read more on the Great Lakes IT Report website.

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India's "people's cars" spur green nightmare fear

Posted on 27 June 2007 | 0 Comments

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By Alistair Scrutton, Reuters, June 27, 2007 NEW DELHI - It may be an Indian consumer's dream -- cheap cars for $2,500-$3,000 within reach of millions of a swelling middle class. But it could also prove to be a traffic and environmental disaster. Nissan Motor Co.and Renault SA announced last week they were studying a $3,000 car to compete in India against Tata Motors Ltd.'s planned low-cost "People's Car" targeted at around $2,500 to hit the market next year. For its supporters, cheap cars like these are what the Volkswagen Beetle was to Germany or the Mini to England -- the spoils of an economic boom for aspiring middle classes. To its detractors, India will see an explosion in traffic and pollution on its already clogged roads from its more than 1.1 billion inhabitants. It will add to India's CO2 output just as many Western nations push the Asian giant to control emissions. "India just can't cope with this kind of pace of expansion," said Anumita Roychowdhury, associate director at the New Delhi-based Centre for Science and Environment. "It's just not sustainable, whether from an environmental point of view or in terms of congestion." Read more of the Reuters article on alertnet.org. [Airhybridblog Editor's Note: Scuderi Group executives have been in discussions with major OEMs in India about potential licensing opportunities. The low production costs and sharply lower emissions of the Scuderi Engine provide special advantages to fast-growing, developing markets like India. To read about our most recent trip to India, click here.]

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New Scuderi Group channel on YouTube

Posted on 27 June 2007 | 0 Comments

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YouTube The Scuderi Group's award-winning DVD informational series now has a home -- a channel on YouTube. The Scuderi Group's YouTube channel name is "ScuderiGroup". The company will keep the channel current with new video as news develops. The Scuderi video channel URL is www.youtube.com/user/ScuderiGroup.

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Energy bill promotes ethanol, electric cars

Posted on 25 June 2007 | 0 Comments

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By THE ASSOCIATED PRESS June 23, 2007 WASHINGTON — The cars, SUVS and pickups people will buy in the years ahead are likely to use less fuel, and many will rely on ethanol or household electricity instead of gasoline. The energy legislation pushed through the Senate this week provides a road map to the future, demanding higher automobile fuel economy, mandating huge increases in ethanol as a motor fuel and supporting more research into building "plug-in" hybrid-electric vehicles. While Senate Republicans complained that the bill does nothing to increase domestic oil production, Democrats said that's because the nation must move energy policy away from its heavy reliance on oil. The Senate bill requires automakers to increase fuel economy to 35 mpg, about a 40 percent increase over what cars, SUVs and small trucks are required to achieve now. Read the whole story on www.capecodonline.com.

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Aviation Tries to Go Green

Posted on 20 June 2007 | 0 Comments

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By ANGELA CHARLTON, Associated Press, June 20, 2007 LE BOURGET, France — Boeing, Airbus, and dozens of airlines that fly their jets are jumping on the environmental bandwagon, touting "green" technology at the Paris Air Show and pledging to spew less noxious fumes into the planet's skies. So far, though, growth in worldwide air travel is outpacing industry progress in reducing aircraft emissions. And it was chiefly high fuel costs and fear of government-regulated emissions cuts _ not concerns about global warming _ that inspired the sector's efforts to pollute less. Air travel is growing at about 7 percent each year, according to industry trade groups. Meanwhile, technological developments are boosting airplanes' fuel efficiency by about 1 to 2 percent a year. Also, since airlines keep aircraft for decades, tomorrow's "clean planes" will be flying alongside fuel-guzzling craft of a generation ago. Environmental groups say the only solution is to fly less _ an alternative no one at the air show was eager to discuss. "Not flying is simply not an option," said Airbus chief operating officer, Fabrice Bregier. Instead, manufacturers are racing to make engines that burn less fuel more slowly, experimenting with ways to dilute fuel and reduce leakage, and trimming weight of hulking jets by using lighter composites instead of standard steel. Read the whole AP story on www.chron.com. Scuderi Technology Applicable for Airplane Engines In November 2006, the Scuderi Group secured patents for what promises to be the world’s first air-hybrid internal combustion airplane engine. The engine recaptures and stores energy in the form of compressed air. Through its design, the Scuderi Air-Hybrid Airplane Engine can recapture energy normally lost during cruising and deacceleration at landings. Read more about Scuderi airplane engine technology on airhybridblog.com.

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Dutch data shows China surpassed the US in 2006 carbon-dioxide emissions

Posted on 19 June 2007 | 0 Comments

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From TerraDaily.com THE HAGUE - Jun 19, 2007 - China for the first time spewed out more carbon-dioxide emissions last year than the United States, a Dutch government research body said Tuesday. "China's 2006 carbon dioxide emissions surpassed those of the USA by 8.0 percent," the Netherlands Environmental Assessment Agency (MNP) said. In 2005 US emissions were up 2.0 percent compared to China. The MNP said the figures were based on its own preliminary estimates derived from recent energy and cement production data. Industrial processes and the burning of fossil fuels -- oil, gas and coal -- are the main causes of carbon-dioxide emissions. Of the industrial processes, cement production is one of the principal sources of greenhouse gas, the MNP said. In 2006 China had a 44 percent share in global cement production, it added. Read the whole story on www.terradaily.com.

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RNCOS Report: Hybrid Cars Market Outlook

Posted on 19 June 2007 | 0 Comments

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Published in June 2007, "Hybrid Cars Market Outlook" provides extensive research and objective analysis of the global hybrid car industry. In 2006, hybrid vehicles had the limited presence in the world, but the technology has potential to register itself as the mainstream one. The only limiting factor in wide acceptance of hybrids is their high cost. Key Findings:
  • US remains the largest hybrid car market that accounted for nearly 70% of global hybrid sales in 2005 largely due to high oil prices & increased environmental awareness.
  • Mass adoption of hybrid cars especially in US will provide immense opportunities for the hybrid players.
  • Toyota & Honda are the leading players in the global hybrid market. In global hybrid car industry, strategies differ from player to player, Toyota, for example, aims to offer a full lineup of models by emphasizing on the output power of its hybrid system whereas Honda concentrates on the development of small cars.
  • Because of their higher initial cost, the market share of hybrids is likely to be limited to half or less than half of all light-duty vehicles even in the long-run, unless policy and market conditions change significantly in its favor. Learn more about the RNCOS report.
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    <i>Red Herring</i>: Reinventing the engine

    Posted on 19 June 2007 | 0 Comments

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    Red Herring Logo By Andrea Quong, June 15, 2007 Alternatively powered cars are hot, but Nevis Engine Company isn’t ready to give up on the dowdy—and dirty—internal combustion engine. The Italian startup, which said Thursday it raised seed funding, aims to reinvent the hundred-year-old engine with new technology it claims can nearly double the fuel efficiency of conventional engines and reduce emissions ... ... [M]aking the internal combustion engine to be ultra-efficient—and thus less gas-guzzling and polluting—is Sisyphean task that no one has yet been able to accomplish. Aside from the sheer cost of developing and testing a new engine, there are innumerable potential project-killers—everything from safety issues to reliability factors. Venrock-backed Transonic Combustion in Camarillo, California, and the West Springfield, Massachusetts-based Scuderi Group are also working to improve upon conventional engines. Read the whole story on www.redherring.com.

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