Toyota to boost production of 2010 Lexus HS 250h to meet demand

The brand new Lexus HS 250h, which just made its debut last month in Japan and the U.S., is selling like hot-cakes. According to Japan’s Nikkei, Toyota was targeting 500 sales per month, but has already received close to 9,000 orders.

Toyota, which produced 2,000 units of the HS 250h in July, in now looking to nearly triple production of the dedicated hybrid Lexus model by October. Officials said that employees has been working overtime to keep up with the demand of the HS 250h.

The 2010 Lexus HS 250h gets an EPA-estimated ratings of 35 mpg city and 34 mpg on the highway for a combined 35 mpg on regular 87-octane gasoline. Prices start at $34,200 for the standard model and $36,970 for the Premium model.

Source: egmCarTech

In U.S. hybrid battle, Insight starts slowly while Prius gains steam

It's a good thing the redesigned Honda Insight is surpassing sales expectations in Japan, because its debut in the United States has been a disappointment.

Despite a major advertising campaign and the Insight's $2,000 price advantage over the redesigned Toyota Prius, U.S. consumers are not embracing Honda's new hybrid.

"Both are great cars [but] Prius is greenspeak for 'hybrid,'" said David Wilson, president of Wilson Automotive Group in Orange, Calif., which has both Honda and Toyota franchises.

Honda had hoped to sell 90,000 Insights a year in the United States, but the sour economy forced a revision at the time of the hybrid's March launch, to 60,000 units. So far Honda is off that pace, with only 7,524 sales through June. By contrast, Toyota sold 55,751 Priuses from January 1 through June.

TNS Compete, a marketing consulting firm in Boston, says it tracked 70,700 Prius shoppers in June and found that about 13,000 bought a Prius. Lincoln Merrihew, TNS' managing director, described the 18 percent conversion rate as healthy.

By contrast, TNS reported that about 40,000 Insight shoppers in June bought only 2,079 vehicles, a conversion rate of about 5 percent. Merrihew called that a typical ratio for a new-vehicle launch.

Wilson said: "Prius is also the most visually hybrid-looking of the two. If you are trying to make that environmentally conscious statement, Prius will be your first choice."

Another multiline dealer with Honda and Toyota stores said: "There is no cross-shop between Prius and Insight. Prius buyers come in on the Prius and buy a Prius. Honda buyers come in on Insight, find it a bit small and move to a Civic Hybrid. It will take time for Insight to catch up with the level of awareness and purchase intention that Prius has built up over several years."

Still, the dealer said, at least one of his Honda stores is "selling every Insight they get and needing more. I think relatively low gas prices and the low level of awareness are the biggest issues for Insight right now."

While the Insight is struggling to find its footing in the United States, its Japanese launch has gone well. The original Japanese sales target was 60,000 a year. But Koichi Kondo, an executive vice president at Honda Motor, said the Insight is on pace to reach 100,000 sales in the fiscal year that ends next March 31. Honda sold 36,457 Insights in Japan from its February 6 launch through June.

The third-generation Toyota Prius hit the Japanese market on May 18. Toyota sold 21,200 Priuses in June in Japan.

Honda Motor spokeswoman Yasuko Matsuura said the company is not deliberately holding back exports of the Japan-made Insight. She blamed disappointing U.S. demand on overall market conditions, not competition with the Prius.

Sage Marie, a spokesman for American Honda Motor, said it is too early to call the Insight a hit or a flop in the United States.

"We're still building awareness," Marie said. "We're just a few months into a launch of an all-new product. We still want to sell 90,000 Insights. Are we going to do this the first year? Probably not."

Source: Automotive News via The Car Tech blog

Nissan retailing of the Leaf electric vehicle starts next year in five markets

Just days after pulling the wraps off of its prototype Leaf electric vehicle in Japan, Nissan Motor Co. says it has committed to an early launch of 5,000 sales in the United States, starting late next year.

The plan will require Nissan North America to begin retailing the Leaf at U.S. dealerships two years ahead of the schedule outlined by Nissan CEO Carlos Ghosn.

The first 5,000 U.S. Leafs will take part in a five-market study of electric-vehicle driving habits. Nissan and various public utilities and government agencies want to make sure they understand how consumers recharge their vehicles.

Mark Perry, Nissan's director of product planning and strategy, says it is not merely a market test but rather the bona fide launch of mass electric-vehicle retailing.

"We're moving fast," Perry says. "This is not a test to determine whether or not it's going to work. This is the beginning of mass marketing."

Buy them

Customers will buy the cars from dealerships. But they must agree to have their recharging habits monitored through an onboard black box for their first two years of ownership.

Nissan will qualify which consumers get to purchase the first 5,000 Leafs. Perry says there will be some screening to make sure the cars are purchased by consumers who can provide meaningful data.

"We don't want these first cars going to somebody who commutes 150 miles a day or who lives a great distance from a recharging station," he says.

Nissan has said the Leaf will be affordable, but it has not revealed the price.

DOE money

The catalyst behind the early startup is a $99.8 million grant from the U.S. Department of Energy to Electric Transportation Engineering Corp., a Phoenix technology supplier. That firm must install 12,500 recharging stations in Nissan's first five markets: the Phoenix-Tucson corridor of Arizona; Oregon; San Diego; Seattle and Tennessee.

Matching funds are being provided by the cities and states, for a total investment of $199.6 million.

The recharging data will be turned over to the Department of Energy, which required Nissan to have 1,000 vehicles on the road in everyday use to make the data valid.

Nissan originally said it would launch electric-vehicle fleet sales in the United States in 2010 and start retail sales through its dealerships in 2012. But Perry has maintained that retail sales could start earlier than 2012 if individual markets and dealers were ready.

Perry says Nissan still intends to launch U.S. fleet sales of the electric car next year. Those sales will be in addition to the 5,000 cars participating in the data collection.

Source: Autoweek

Insight sales down 25% since 2010 Prius release

It looks like the new Honda Insight is in for some hard times, sales-wise. Honda sales figures for June show that Insight sales dropped 25% from 2,780 units in May to 2,079 units in June. Over the same period the Prius' sales have risen from 10,091 units to 12,998. It's hard not to point out that the Prius' increase from May to June was greater than the number of Insights sold in June.

At this rate, it's going to be tough for Honda to reach their 90,000 sales goal by the end of the first model year.

Launched in April with great initial reviews, the Insight has been a tough sell with dealerships already offering discounts to move them off the lot. Reviewers have also come out considerably negative against the Insight including benchmark Consumer Reports who found it "the most disappointing Honda Consumer Reports has tested in a long time."

Source: PriusChat

Toyota said to consider οffering version of Prius hybrid to GM

Toyota Motor Corp. may offer to supply a version of its Prius hybrid car to General Motors Corp. during a meeting between the companies’ chief executives, two people familiar with the plan said.

Toyota President Akio Toyoda and GM’s Fritz Henderson will meet in Michigan in August said the people, who asked not to be identified because the plan isn’t public. A GM-badged car based on the Prius is among the options for new products at a jointly owned factory in California after GM said it would end assembly of the Pontiac Vibe at the plant earlier than planned.

A version of the world’s top-selling hybrid car may help bankrupt GM win U.S. customers and would give it an incentive to keep open the joint-venture factory. Toyota is also considering the plant as a Prius production site after shelving plans to make the gasoline-electric car in Mississippi, two people familiar with the matter told Bloomberg earlier this month.

“Having a stronger line-up is an urgent matter for GM,” said Yoshihiro Okumura, who helps oversee the equivalent of $365 million at Tokyo-based Chiba-gin Asset Management Co. “Demand will continue to shift to small cars.”

GM currently has eight hybrid models, two of which are Saturns, a brand that GM is selling to Penske Automotive Group Inc. Of GM’s remaining six hybrids, only one, the Chevy Malibu, is a car, according to its web site.

Pat Morrissey, a spokesman for GM, declined to comment on any technology-sharing relationship with Toyota.

GM will launch the plug-in electric Chevrolet Volt next year and plans to have 14 hybrid models in 2012, the automaker said June 1 as part of its bankruptcy filing.

Nummi’s Fate

GM said earlier this month it will stop building Vibes in August at New United Motor Manufacturing Inc., the only large auto-assembly plant on the U.S. west coast, ahead of the Detroit-based company’s initial plan to cut the hatchback in 2010. Toyota, the world’s largest automaker, and GM, the second largest, have shared the factory, known as Nummi, since 1984.

“We have been in discussions with Toyota about potential future products. We have not figured out a product that meets the needs of Toyota or ourselves,” Troy Clarke, president of GM North America, said during a June 26 conference call. “That dialogue continues.”

Clarke told reporters on June 19 that GM is not in current talks to license Toyota’s hybrid system.

“Nothing has been decided other than halting the production of the Vibe at Nummi,” said Hideaki Homma, a Tokyo- based spokesman for the company. “A meeting of the executives is also not under consideration.”

Ford Arrangement

Ford Motor Co. licenses Toyota patents as part of its hybrid program, while GM has turned down those opportunities in the past, said Jim Hall, principal of 2953 Analytics auto- consulting firm in Birmingham, Michigan. It might make sense if GM also shares component development for its sedans with Toyota, he said.

“Toyota is not normally in the practice of giving away the crown jewels,” Hall said.

It probably doesn’t make sense to put a hybrid vehicle in Nummi, Hall said. For GM, it would make more sense to share mid- sized pickups such as the Chevrolet Colorado with the Toyota Tacoma, which is built in Nummi now, he said.

Toyota and GM have shared the Fremont, California, plant since 1984. While GM owns half of the plant, Toyota models accounted for 76 percent of output through June 27, according to trade publication Automotive News.

The factory has capacity to make 420,000 cars and trucks a year and employs about 5,400 people, according to the plant’s Web site. In addition to Vibe, which is a version of Toyota’s Matrix hatchback, Nummi builds Corolla small cars and Tacoma pickups.

Toyota on Dec. 15 said it would halt work on the $1.3 billion Blue Springs, Mississippi, factory after plunging U.S. sales created excess capacity at its North American plants. The company early this year said it would pay the interest on bonds issued by Mississippi for plant-related infrastructure.

Source: Bloomberg

Toyota, Honda slash production as car demand falls

Toyota Motor Corp. and Honda Motor Co., Japan’s two largest carmakers, reduced production last month as rising unemployment in the U.S. has hammered car sales.

Toyota’s output dropped 39 percent to 442,621 vehicles in May from a year earlier, the company said in an e-mailed release today. The decline is the company’s 10th straight. Honda, the country’s second-biggest carmaker, cut global production by 38 percent to 195,085 units, it said. Nissan’s global output fell 27 percent.

Japanese automakers slashed production in North America last month to reduce inventories as overall sales in the U.S. plunged 34 percent. Sliding demand in the U.S. has led Nissan Motor Co. to cut 20,000 jobs this fiscal year and pushed General Motors Corp. and Chrysler LLC into bankruptcy.

“Recovery will come only after the U.S. returns to health because Japanese carmakers rely on that market,” said Masatoshi Nishimoto, an analyst at CSM Worldwide in Tokyo.

CSM predicts sales in the U.S. will fall to 9.7 million units this year from 13.2 million a year ago and then rise to 11 million in 2010. The jobless rate in the world’s largest economy jumped to 9.4 percent in May, the highest in more than 25 years.

The Japan Automobile Manufacturers Association said June 18 that domestic sales are lagging behind its forecast for the fiscal year, already expected to be the worst in three decades. The group predicts Japan industrywide sales will drop 8.5 percent to 4.3 million in the year ending March.

Toyota’s production in Japan fell 42 percent to 192,637 in May and exports dropped 51 percent, the company said. That doesn’t include its Hino and Daihatsu units.

Honda built 52,663 vehicles domestically, down 43 percent, the company said. Its exports slumped by 65 percent to 18,156 vehicles. Total production at Nissan fell to 201,340 vehicles, while domestic output fell 36 percent and exports fell 56 percent, it said in a statement.

Honda rose 3.3 percent to 2,650 yen as of 1:45 p.m. on the Tokyo Stock Exchange. Toyota gained 2.5 percent to 3,710 yen. Nissan rose 3.5 percent to 590 yen.

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Toyota Slashing Costs

The automaker is slashing costs by at least 800 billion yen this year as it expects global sales to plummet by 1.07 million vehicles to 6.5 million units this fiscal year.

Toyoda said today he hopes to cut beyond that target calling the goal “only a starting line.” He added that his salary will be reduced by 30 percent for one year and board members will also return part of their salaries.

Toyota is likely to begin cutting costs in Japan first, analysts said. Toyoda may slash the automaker’s domestic capacity and workforce by at least 10 percent, reducing its 20 platforms and 70 model types by 10 percent and consolidating its rural dealer network in Japan, according to Koji Endo, an analyst at Credit Suisse Securities (Japan) Ltd.

Prius

Toyota, which introduced a new version of its Prius hybrid on May 18, is reviewing its product line up to focus on regional offerings, Toyoda said.

Toyota will form a market research, planning and advertising unit that will report to Toyoda. The unit, which will merge existing departments, will be formed in January.

Toyota said it has now booked 200,000 domestic orders for the new Prius gasoline-electric hybrid.

The company had set a sales target of 10,000 units a month in Japan. The tally includes 80,000 orders placed before the car went on sale.

The third-generation Prius was Japan’s bestselling car last month, surpassing Honda Motor Co.’s Insight. Hybrid sales have surged on the introduction of new models and government incentives.

Source: Bloomberg

Nissan gets $1.6 billion to produce EVs and lithium-ion batteries in Smyrna

Nissan North America, Inc. (NNA) said it has been conditionally approved by the U.S. Department of Energy for a $1.6 billion loan to modify its Smyrna, Tenn., manufacturing plant to produce zero-emissions vehicles and state-of-the-art lithium-ion battery packs to power them.

The loan, announced by the U.S. Department of Energy, is among the first three loans under the Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP), a $25-billion program authorized by Congress under Section 136 of the Energy Independence and Security Act of 2007. The loan will help Nissan produce electric vehicles, which emit no gases and are powered only by electricity.

“This loan is an investment in America. It will help us put high-quality, affordable zero-emissions vehicles on our roads,” said Dominique Thormann, senior vice president, Administration and Finance for NNA. “This project will expand our Smyrna plant and that’s great economic news.”

The ATVMLP is designed to accelerate the development of vehicles and technologies that increase U.S. energy independence, create cleaner means of transportation and stimulate the American economy. Companies receiving the loans go through a rigorous financial and technical qualification process and must put collateral in place before approval.

Construction at Smyrna is scheduled to begin by the end of this year, after an environmental assessment is completed. Production is planned to start in late 2012.

Nissan is committed to being a leader in zero-emissions mobility. It will offer electric vehicles in the United States and Japan beginning in 2010. The first vehicles for the U.S. market will be built in Japan before production is shifted to Smyrna.

“Nissan is confident that the Smyrna employees have the skill and dedication to take on this critical role in Nissan’s future by launching a new form of transportation in the United States,” said Susan Brennan, vice president, in charge of manufacturing at Smyrna. “This opens a new chapter in Nissan’s 26-year manufacturing history in America.”

The modifications of the Smyrna manufacturing plant include a new battery plant and changes in the existing structure for electric-vehicle assembly. When fully operational, the vehicle assembly plant will have the capacity to build 150,000 zero-emissions vehicles a year and the new plant will have an annual capacity of 200,000 batteries.

Nissan’s electric vehicle will comfortably seat five people, drive on any American road or highway and have an initial range of 100 miles before recharging.

To help ensure that infrastructure is in place to support zero-emissions vehicles, during the past year, Nissan has been involved in establishing partnerships with governments, municipalities, utility companies, and public and private organizations aimed at creating conditions that will support the market for zero-emissions vehicles.

In the United States, Nissan is working with the State of Tennessee, the State of Oregon, Sonoma County and San Diego in California, Phoenix, Tucson, Seattle, Raleigh, and Washington, D.C. Globally, Nissan, with its Alliance partner Renault has begun ZEV initiatives in Kanagawa Prefecture and Yokohama in Japan, as well as in Israel, Denmark, Portugal, Monaco, the United Kingdom, France, Switzerland, Ireland, China and Hong Kong.

Source: egmCarTech

Toyota-GM U.S. plant said to be considered for Prius

Toyota Motor Corp., after shelving plans to build Prius hatchbacks at a factory in Mississippi, is considering making the hybrid at a California plant shared with General Motors Corp., two people familiar with the plan said.

Toyota expects strong demand in the U.S., where the new model went on sale this month and is raising output in Japan. Given the time and cost to finish the half-built Mississippi facility, it may be easier to make the car at New United Motor Manufacturing Inc., known as Nummi, said the people who asked not to be identified because the discussions aren’t public.

“Toyota put Mississippi in mothballs and as they look around at capacity already in place, Nummi might make sense,” said Jim Womack, chairman and founder of Lean Enterprise Institute in Brookline, Massachusetts. “Nummi builds Corollas, and now that Prius comes off the same underbody pan, it wouldn’t be much of a stretch to build it on the same line.”

Toyota’s outgoing President Katsuaki Watanabe called Prius a “savior” for the world’s largest automaker after it drew more than 80,000 consumer orders before going on sale, a rare bright spot as the company reels from its worst earnings slump in six decades. Prius was Japan’s top-selling model in May.

“The plan is still to build Prius in Mississippi as soon as demand and this economy turn around,” said Jim Wiseman, vice president of external affairs for Toyota’s North American manufacturing unit. Wiseman said he’s unaware of discussion within Toyota to build Prius in California.

Toyota shares gained 0.5 percent to 3,720 yen at the close of trading in Tokyo today.

GM’s Bankruptcy

Toyota and GM have shared the Fremont, California, plant since 1984, running it as a joint-venture equally owned by the two largest carmakers. On June 1, the day GM filed for bankruptcy, Chief Executive Fritz Henderson said his company had no plan yet to get vehicles from Nummi after the Pontiac Vibe goes out of production there next year.

“We’ve talked to them about what we might do and whether or not we have any interest in going forward in even being part of it,” said Henderson.

The factory’s future was called into question by GM’s bankruptcy, which includes closing 12 more plants by the end of 2011 under an accelerated plan to shutter 30 percent of its U.S. assembly sites. Along with the Vibe, derived from Toyota’s Matrix model, Nummi builds Toyota’s Tacoma pickups and Corolla small cars.

Blue Springs

While Detroit-based GM owns half of the plant, Toyota models accounted for 76 percent of output through June 13, according to trade publication Automotive News. GM is dropping Pontiac as part of its plan to shed four of eight U.S. brands.

The factory is California’s only large auto-assembly plant and the only such facility on North America’s West Coast. It has the capacity to make 420,000 cars and trucks a year and employs about 5,400 people, according to the plant’s Web site.

Toyota on Dec. 15 halted work on the $1.3 billion Blue Springs, Mississippi factory after plunging U.S. sales created excess capacity at its North American plants. The company early this year said it would pay the interest on bonds issued by Mississippi for plant-related infrastructure.

The Mississippi facility was to produce Highlander SUVs before Toyota said in July 2008 the factory would make Prius hatchbacks by 2010. In March, Jim Lentz, Toyota’s U.S. sales chief, said “it’s conceivable” that another model could be built there.

California is a costly place to make cars and auto parts, limiting Toyota’s ability to set up a North American supply base for batteries, electric motors and other components needed for gasoline-electric models, said economist Kim Hill, with the Center for Automotive Research in Ann Arbor, Michigan.

Still, Nummi is already supplied with parts shipped across the Pacific from Japan, so it wouldn’t be difficult to keep the factory stocked with the batteries, motors and other components needed for Prius, said John Shook, a University of Michigan management instructor and former Toyota engineer.

“Given how popular Prius is in California, and the push there for plug-in and electric vehicles, there’d certainly seem to be local support to build it there,” Shook said.

Source: Bloomberg

Honda’s hybrid Insight may miss U.S. sales forecast

Honda Motor Co.’s Insight hybrid may fall 33 percent short of its U.S. sales goal as cheap fuel, the economic slump and competition from Toyota Motor Corp.’s Prius undermine demand for the model.

First-year Sales of Honda’s gasoline-electric Insight, which debuted at U.S. dealerships in late March, may be between 50,000 and 60,000 units, John Mendel, the company’s U.S. executive vice president, said in a June 11 interview at Honda’s U.S. headquarters in Torrance. “I don’t think we’ll get to 90,000,” he said.

Gasoline prices in the U.S. have fallen 35 percent over the past year, eroding demand for fuel-efficient cars, even as the overall market has plunged 37 percent due to the recession. Toyota has cut the base price of the Prius by $1,000 to compete with the Insight

“Sales of hybrids have a strong correlation to gasoline prices, especially in the U.S. and Toyota’s Prius has had more customers in the past, so it’s a tough competition for Honda,” said Koji Endo, an analyst at Credit Suisse　Securities (Japan） Ltd.

The lower-than-expected demand in the U.S. contrasts with sales of the car in Japan where fuel prices are 78 percent higher than in the U.S. The Insight was the top-selling car in Japan in April and was overtaken by the Prius last month.

Honda fell 2 percent to 2,780 yen as of 1:44 p.m. in Tokyo. The shares have gained 46 percent so far this year.

Gas Prices

Retail prices for gasoline in Japan are $4.69 a gallon, the Tokyo-based Oil Information Center said on its Web site on June 10. By comparison, U.S. consumers paid an average of $2.64 for a gallon of gasoline on June 12, 35 percent less than a year ago, according to AAA’s Daily Fuel Gauge Report.

The Insight, rated by the U.S. as getting 41 miles per gallon in city and highway driving, is priced from $19,800 to $23,100. By comparison, Toyota’s 2010 Prius, which averages 50 mpg, sells for between $22,000 and $31,770.

Hybrid sales in the U.S. fell 38 percent through May to 100,337 units, just ahead of the market’s overall 37 percent drop, based on data compiled by Bloomberg News. Slack demand for fuel-saving models led General Motors Corp. to announce June 11 that it’s discontinuing the hybrid version of its Malibu sedan.

Toyota aims to sell 180,000 units of its new Prius in the car’s first 12 months, matching the model’s U.S. volume record reached in 2007. Prius sales this year through May fell 46 percent.

Demand for Insight should pick up later in the year as the recession eases and fuel prices increase, Mendel said.

U.S. dealer inventory of Japan-built Insights is “good” given current market conditions and sales could be as high as 4,000 units this month, up from 2,098 in May, he said.

Source: Bloomberg

Lexus anticipates selling 25,000 HS 250h lux hybrids in first year

Toyota may be struggling to make money and keep up sales right now, but the Japanese automaker is still cruising along when it comes to hybrids. The Prius is a big reason why Toyota has secured 75% of the hybrid market, and the company is expecting its upmarket sibling, the Lexus HS 250h to do the same for its luxury division.

Automotive News is quoting Toyota execs who say that the company is expecting 25,000 HS250 sales in the first 12 months on the market. That's a piffling number compared to the 180,000 units the company expects to sell of its third-generation Prius, but that would still be more hybrid sales than any other luxury brand.

While Lexus has hybrid versions of the RX, GS, and LS models, only the HS will be a dedicated hybrid-only proposition. In fact, the HS 250h will be the sole dedicated gas-electric vehicle in the entire luxury automotive segment. While the hybrid market has dried up somewhat along with the rest of the industry in 2009, Toyota sees signs that the market will soon improve. Mark Templin, group vice president of the Lexus Division, told AN that 60% of Lexus buyers are willing to consider a hybrid.

Source: Autoblog

Software upgrade to Prius conversion kit enables 70-mph all-electric driving

Plug In Conversions Corp. has completed a breakthrough software upgrade to its plug-in conversion kit that for the first time will allow all-electric mode driving at speeds of up to 70 miles per hour in a converted Toyota Prius.

Previous Prius conversion kits have been limited by Toyota programming to a top speed of 34 mph in all-electric mode.

The software upgrade also will allow Prius drivers with PICC conversion kits to boost highway fuel efficiency to 170 miles per gallon until the rechargeable battery is depleted, as recently measured by Argonne National Laboratory.

Chicago-based Argonne reported even higher all-electric mileage in city driving tests of vehicles equipped with the software upgrade and PICC's nickel-metal hydride battery conversion kit.

"What we're essentially offering is all-electric performance for about 25 miles at highway speeds," PICC President Kim Adelman said Tuesday. "The car is no longer limited to 34 miles per hour, all-electric. This also allows a Prius to perform much like the Chevy Volt, but for a much lower cost."

Fuzzy Math

Not so fast. A 2010 Prius starts at $22,000. Add the cost of the conversion kit ($12,500) and the software upgrade ($2500) and the cost of this impressive Prius starts at $37,000.

The Volt, which won't be available for at least 18 months, is expected to carry a price of about $40,000 before a hefty $7,500 rebate from Uncle Sam, which would bring its price down to $32,500 - or $4,500 less than the modified Prius.

When GreenCarAdvisor reached Adelman by phone Tuesday afternoon to point out the discrepancy, he said that most Prius owners who convert their vehicles don't do so when they are new.

He said their Priuses are generally used and worth $14,000 to $15,000 at the time of conversion, but we don't see how that changes things if the owner paid $22,000 for it new. The car has decreaciated, but the out-of-pocket expense remains the same.

Adelman also said he believed that the conversion kit will soon be eligible for a 10 percent rebate, which would reduce it's price to $11,250. That would still make the converted Prius $3,250 more expensive than the Volt.

Show Stopper?

When reached him, Adelman as he was displaying a Prius equipped with PICC's third-generation NiMH conversion kit at the 2009 Advanced Automotive Battery and EC Capacitor Conference, through Friday in Long Beach, California.

The Poway, California, company's software upgrade is based upon patented technology developed by Chicago-based Ewert Energy Systems, which has granted PICC exclusive rights for its use in Prius conversion kits.

The software upgrade was designed with safety in mind. Some previous Prius plug-in conversion kits allowed motorists to go as fast as 52 mph using "forced stealth" mode, but that can force the electric motor to run above its recommended speed range, EES Vice President Andrew Ewert said.

Forced-stealth mode also requires drivers to stop and restart the vehicle before its gas engine can engage, which can cause safety issues and erase emissions data recorded for smog checks.

But according to Ewert, the software upgrade allows the gas engine to turn on instantly when needed and allows drivers to initiate a controlled engine warm-up at any time to meet strict emissions standards, thus eliminating the traditional problem of a cold start.

'Enhanced Hybrid Mode'

The software upgrade also allows PICC-converted cars to "operate in an enhanced hybrid mode at various speeds, with the vehicle heavily favoring the electric motor versus the gasoline engine in different modes," Ewert said.

The upgraded PICC kit reportedly boosts mileage while reducing emissions by maximizing use of the car's electric motor in all driving modes. The PICC system also can recoup more regenerative power from braking than a factory-installed Prius battery. When the PICC battery pack charge is depleted, the converted Prius reverts to its normal factory hybrid-electric-vehicle operating mode.

As for performance, a Prius equipped with the upgraded PICC conversion kit behaves just like a stock Prius, Adelman said. "You can't tell the difference."

The conversion kit adds about 220 pounds to the vehicle, but rear springs are upgraded to maintain the rear height at factory specifications.

The software upgrade will be made available for sale later this month to new and existing conversion kit customers. A free trial version of the software upgrade will later be introduced.

A One-day Job

PICC's conversion kit replaces Toyota's 1.3-kilowatt hour NiMH battery pack with a 6.1-kWh pack. Conversions can be completed in about one day and the kit is covered by a three-year warranty.

The batteries, which are expected to last 10 years, are manufactured by Gold Peak Industries North America, a subsidiary of GP Batteries International. Gold Peak purchased an equity stake in PICC late last year.

The conversion kit and software upgrade also were tested for emissions by Argonne National Laboratories, which determined that the PICC system meets the super ultra low emission vehicle, or SULEV, standard, the industry's strictest.

PICC's existing conversion kit allows Prius owners to recharge their vehicles in six hours using a regular 120-volt outlet, or in as little as two hours with an optional high-capacity charger.

PICC will begin California Air Resources Board emissions-control certification testing later this month. The company also intends to complete crash testing of PICC-converted vehicles so that future owners can qualify for green-vehicle tax credits.

PICC said it also intends to develop conversion kits with lithium-ion batteries manufactured by Gold Peak. PICC has three existing dealers with seven additional sites planned nationwide by year's end. The company plans to produce similar PHEV conversion kits and software for other hybrid electric vehicles.

Source: Edmunds

Lexus HS 250h luxury hybrid (first drive)

"When we first saw Lexus' new luxury hybrid, it was being revealed at the 2009 Detroit auto show. Recently we were given an opportunity to preview the new Lexus HS 250h, a vehicle that the automaker is calling the world's first luxury dedicated hybrid. It also calls the HS an economy luxury car, which to us seems like a bit of an oxymoron.

As I approached the vehicle, my first thought was, "Oh my, they've Lexusified and hybridized a Corolla! This is going to be a disaster." I couldn't have been more wrong.

True, the HS 250h looks like your run-of-the-mill, boring Toyota/Lexus econobox, but under the rather plain skin is a rather exceptional vehicle, particularly when it comes to cabin tech.

The HS 250h's dash is an ergonomic dream. Its floating center console lifts the climate and audio controls up to where they can be accessed without reaching. The flip-up navigation screen is moved up to the top of the dash, where it can be viewed in our periphery without taking our eyes off of the road.

At the bottom of the console, Lexus' new remote-touch controller falls naturally into the drivers' hand. A sort of joystick/trackball hybrid, the remote-touch controller uses a control stick that is moved with your fingertip to select options from the HS' icon-based interface. Movements are 1:1 with where the pointer is on the screen, so there's never any issue with losing the cursor. Haptic-force feedback notifies you through touch when an option has been selected, which assists in navigation without you having to take eyes off of the road for too long.

We thought the system would be terribly distracting on the road, but once again we were mistaken. We were able to quickly fly through the menus to select audio sources and choose destinations. Some users will miss the touch-screen controls, but we think the haptic feedback of the remote-touch controller is a much better substitute.

We've heard the Mark Levinson stereo system previously in other Lexus vehicles, so we weren't surprised by the fantastic audio quality from our USB-connected iPod or A2DP-connected Bluetooth phone.

The Lexus HS 250h's power delivery didn't impress us as much as the level of cabin tech. The HS features four drive modes: a normal mode that accelerates with about the same gusto as a Toyota Prius, an ECO mode that decreases throttle inputs and climate control systems for more thrifty driving, a Power mode that is the opposite of ECO mode, and an EV mode that moves the vehicle under purely electric power up to 20 mph.

The Toyota-sourced Hybrid Synergy Drive is at its smoothest under the hood of the HS 250h. A 2.4-liter gasoline engine is paired with an electric engine to make a combined 187 horsepower. Fuel economy is an estimated 35 miles per gallon city and 34 mpg highway; we're assuming that's in ECO mode. Transition between electric and gasoline power trains is almost imperceptible thanks to the HS' quiet cabin keeping engine noise out.

An exhaust heat recovery system recaptures wasted heat from the combustion to reduce warm-up time and allow the engine to be shut off sooner and more often.

We didn't expect that a car with a mode that dumbs down the throttle response would place a high premium on handling and we were right. However, the HS is a capable vehicle; its road manners are predictable, safe, and controllable. Push it into a turn and the HS will deliver easily correctable understeer all day long. We have reason to believe that's just the kind of handling the HS' target audience wants.

While we can forgive the lackluster handing, the regenerative brakes had us clenching at each stop. It's difficult to tell when the regeneration/friction switch is going to occur, which made modulating the brakes difficult. Our vehicle was a preproduction model, so perhaps the gremlins will be worked out before the HS hits dealers this fall.

Lexus has also endowed the HS with numerous safety systems, such as radar-guided, active, cruise control and various levels of stability and traction control. At any given time, up to five cameras are working to keep the driver safe.

Lane Keep Assist (LKA) uses a camera to detect lane markers and a second camera to detect the driver's head movements. If the HS drifts out of its lane without using a turn signal and the system determines that the driver is distracted, LKA will nudge the steering wheel to correct the vehicle's course. Drivers can easily push through the LKA's inputs if, in fact, the lane change is intentional. We tested the system on a clear highway and, as promised, the HS will keep itself in its lane if allowed to drift. The feedback is gentle, but noticeable, and definitely got our attention, which we think is the point.

LKA only works when the HS is under active cruise control, when the driver's hand is on the steering wheel, and when the driver is not looking ahead. If these conditions aren't met, the system merely uses a lane-departure-warning steering-wheel buzz to alert the driver.

Intelligent High Beams (IHB) uses a camera to detect the headlamps and tail lights of oncoming vehicles and adjusts the high beams accordingly. While the wide-view front monitor uses a grill-mounted ultrawide-angle camera to peek around corners, the rear-view monitor is a wide-angle camera mounted on the trunk. The total camera count is five.

We're not sure if entry-level luxury buyers will respond to the HS' drab economy-car exterior, but a short stint in the driver's seat should win over at least the technophiles, as the HS 250h is packed to the gills with cutting-edge entertainment, convenience, and safety tech, as well as an advanced hybrid drivetrain."

Source: The Car Tech blog

High demand in Japan imperils U.S. Prius

Booming Japanese demand for the new-generation Prius could mean fewer U.S. deliveries of the popular hybrid vehicle when it goes on sale next month.

Toyota Motor Corp. booked 80,000 advance orders for the car in Japan before its Monday, May 18, sales debut. That nearly meets the local sales goal of 100,000 units for the year.

Incoming President Akio Toyoda said he wants to sell between 300,000 and 400,000 units worldwide by Jan. 1, about half to North America and roughly 17 percent to Europe.

But Yoshimasa Ishii, managing officer in charge of overseas marketing, said Toyota may have to reconsider planned shipments to North America so it can meet demand at home. Japanese customers placing an order today have to wait about four months for delivery.

"We have an initial allocation for the United States, according to the original annual plan. But because of the very strong demand from Japan, we may need to review this sales plan and reallocate the production plan," Ishii told Automotive News on the sidelines of the Prius launch here.

The key will be how fast Toyota can boost output at the two Japanese plants making the car.

Prius chief engineer Akihiko Otsuka said current capacity stands at more than 40,000 units a month. Toyota aims to lift output higher through overtime shifts, he said.

Toyota's companywide capacity for all hybrid vehicles is limited by battery availability to around 500,000 vehicles. But that will expand to 800,000 by year end, Otsuka said.

Toyota wants to sell between 500,000 and 600,000 Priuses globally in the car's first full 12 months on the market, he said. "We have to think about the appropriate ratio of allocating those vehicles," Otsuka said.

The first Prius shipment left for the United States in late April. They will go on sale as soon as they arrive at dealerships in late May or early June.

Further eating into Toyota's hybrid production capacity are plans to keep making the current-generation Prius as a fleet vehicle for sale only in Japan. That model will be rechristened the Prius EX and will have a monthly sales target of 2,000.

Source: The Car Tech blog

Top10 Green Cars for 2009 by KBB

The current sales slump is unfortunate for many reasons, one of which is that 2009 is shaping up to be a banner year for fuel efficiency. The year's arrivals include an all-new Toyota Prius that's even more fuel-efficient than its world-beating predecessor, a new Prius alternative in the Honda Insight and a range of new 50-state clean-diesel cars, among others.

In addition to these newcomers, this year's list highlights some familiar faces, and it was again compiled to include a variety of vehicle shapes and sizes because not everyone who wants to get greener can go smaller. Just as buyers would, KBB considered characteristics like comfort, performance, utility and technology - not just fuel economy and price - in picking the winners.

Here, presented in order of combined EPA-estimated fuel economy, are Kelley Blue Book's Top 10 Green Cars for 2009:

1. 2010 Toyota Prius | 50 mpg (51 city, 48 highway)
2. 2010 Honda Insight | 41 mpg (40 city, 43 highway)
3. 2010 Ford Fusion Hybrid | 39 mpg (41 city, 36 highway)
4. 2009 VW Jetta SportWagen TDI | 34 mpg (30 city, 41 hwy)
5. 2009 MINI Cooper | 32 mpg (28 city, 37 highway)
6. 2009 Ford Escape Hybrid | 32 mpg (34 city, 31 highway)
7. 2009 Honda Fit | 31 mpg (28 city, 34 highway)
8. 2009 BMW 335d | 27 mpg (23 city/36 highway)
9. 2009 Toyota Highlander Hybrid | 26 mpg (27 city, 25 highway)
10. 2009 Chevrolet Silverado Hybrid | 21 mpg (21 city, 22 hwy)

Source: KBB Green

2010 Prius will have USB & iPod integration... In September

2010 Prius will have USB & iPod integration... In September

Toyota announces prices for 2010 Prius

Toyota Motor Sales (TMS), U.S.A., Inc., announced manufacturer’s suggested retail prices (MSRP) today for the all-new 2010 Prius midsize hybrid, scheduled to go on sale beginning in late May at Toyota dealers nationwide.

The third-generation Prius will be available in one grade with a starting MSRP of $21,000. The Prius will be offered with five levels of popular standard equipment combinations. “The 2010 Prius delivers outstanding mileage, performance and advanced technology at a great price,” said Bob Carter, group vice president and general manager of the Toyota Division.

Carter sees the most popular model starting at an MSRP of $22,000, equipped with a high level of standard features, “This model provides more than $2,000 added value, including the features most buyers want, at the same price as the current base model” he said.

A new base model with a lower level of standard equipment is scheduled to be available later this year. It is designed to appeal to the most cost-conscious businesses and consumers.

Celebrated as the benchmark for cars of the future, the Prius has delivered superior fuel economy and ultra-low emissions to more than 1.2 million owners worldwide for over 10 years. When it goes on sale, the 2010 Toyota Prius will once again set new standards for innovative hybrid design and technology, raising its level of convenience features and performance to new heights, including EPA fuel economy estimates of 51 mpg city, 48 mpg highway and 50 mpg combined (EPA MPG estimates, actual mileage will vary).

The third-generation 2010 Prius will offer enhanced performance and innovative design features. It will be quieter, roomier, and equipped with advanced standard and available features such as four driving modes, steering wheel touch controls that display on the instrument panel, a moonroof with solar panels, and Intelligent Parking Assist (IPA).

The Prius is equipped with Toyota’s industry-leading Hybrid Synergy Drive and certified as an Advanced Technology Partial Zero Emissions Vehicle (AT-PZEV), emitting over 70 percent fewer smog-forming emissions than the average new vehicle. A larger and more powerful yet more efficient 1.8-liter Atkinson-cycle, four-cylinder engine produces 98 horsepower at 5,200 rpm. Together with its electric motor the hybrid system in the new Prius will generate a combined net horsepower of 134, an increase of 24 horsepower over the previous generation.

All Prius models offer Toyota’s Star Safety System™ as standard equipment, which includes enhanced Vehicle Stability Control (VSC) and Traction Control (TRAC) Systems, Anti-lock Brake System (ABS) with Electronic Brake Force Distribution (EBD) and Brake Assist (BA). Other standard features include electric power steering and four-wheel disc brakes.

Starting fall 2009, select Prius models will include Toyota’s all-new telematics service, Safety Connect™, which will offer four safety and security features: Automatic Collision Notification, Stolen Vehicle Location, Emergency Assistance Button (SOS), and Roadside Assistance. Safety Connect will be available by subscription, with an included one-year trial subscription.

Adding to the appeal of Prius is an additional array of standard convenience features on most models that include automatic air conditioning equipped with an electric air compressor; AM/FM/MP3 CD player with six-speakers and satellite radio capability; driver door Smart Key system with Push Button Start and remote illuminated entry; a Multi-Informational Display with an energy monitor and fuel consumption history; six-way adjustable driver seat; power door locks; auto up/down on all windows with window jam protection; cruise control; tilt/telescopic adjustable steering wheel with audio and HVAC controls; color-keyed foldable power heated side mirrors; dual sun visors with vanity mirrors; and tonneau cover.

Prius also brings many new firsts to the Toyota lineup. To help increase fuel efficiency, the 1.8-liter engine is beltless, uses an electric water pump, a new exhaust gas recirculation (EGR) system, and an exhaust heat collection system.

Other Toyota firsts include a new Touch Tracer Display, which features touch sensors on the steering wheel switches that are designed to reduce driver eye movement for better concentration on the road; an available sliding glass moonroof is packaged with solar panels that power a new ventilation system; a remote air-conditioning system functions on battery-power alone, and allows remote operation so the driver can cool the interior temperature for comfort before getting in the car.

Also new to Toyota is an available Dynamic Radar Cruise Control system that uses advanced millimeter wave radar. The system also enables Lane Keep Assist, which helps the driver stay safely within the lane, and the Pre-Collision System, which retracts seatbelts and applies the brakes in certain conditions when a crash is unavoidable.

Base MSRPs do not include a delivery, processing, and handling (DPH) fee of $750. The DPH fee for vehicles distributed by Southeast Toyota (SET) and Gulf States Toyota (GST) may vary.

	Standard Equipment	MSRP
Prius I	To be released at a later date	$21,000
Prius II	1.8-liter Atkinson cycle engine	$22,000
	P195/65 R15 all-season tires with alloy wheels & covers
	Smart Key (driver’s door) and Push Button start
	EV, Eco, and Power modes
	Multi-Informational Display with energy monitor and fuel consumption history
	AM/FM/MP3 CD player with six speakers and satellite radio capability and auxiliary audio jack
	Cruise control
	STAR Safety System and active front headrest
	Seven airbags including driver knee airbag
	Four-wheel disc brakes
	Tilt/telescopic steering wheel with audio and HVAC
	Controls with Touch Tracer Display
	Six-way adjustable driver seat
	Auto up/down on all windows
	Color-keyed foldable power heated side mirrors
Prius III	In addition to Prius II features:	$23,000
	JBL AM/FM/MP3 six-disc CD changer with eight speakers
	Integrated satellite radio capability
	Hands-free phone capability via Bluetooth® wireless technology
Prius IV	In addition to Prius III features:	$25,800
	Three-door Smart Key system
	Leather-trimmed interior
	Heated front seats with driver lumbar support
	Driver and front passenger water repellant windows
	Plasmacluster™ ionizer
	Auto dimming mirror with HomeLink®
Prius V	In addition to Prius IV features:	$27,270
	17-inch alloy wheels and P215/45 R17 tires
	LED headlamps with auto leveling and washers
	Integrated foglamps

Optional Equipment	MSRP	Prius II	Prius III	Prius IV	Prius V
Navigation Package	$1,800	NA	Available	Available	Available
Voice-actived touch-screen DVD navigation system with JBL AM/FM/MP3 four-disc CD changer, eight speakers, integrated satellite radio capability, XM NavTraffic capability, hands-free phone capability and music streaming via Bluetooth wireless technology and integrated backup camera
Solar Roof Package	$3,600	NA	Available	Available	NA
Includes Navigation Package equipment plus power tilt/slide moonroof with Solar Powered Ventilation System and Remote Air Conditioning System
Advanced Technology Package	$4,500	NA	NA	NA	Available
Includes Navigation Package equipment plus Dynamic Radar Cruise Control (DRCC), Pre-Collision System (PCS), Lane Keep Assist (LKA), Intelligent Parking Assist (IPA)

Source: Toyota USA Newsroom

Lexus prices RX 450h hybrid

Lexus announced pricing for two of its spotlight vehicles for 2010, the RX 450h hybrid ute and the IS convertible.

The RX 450h will start at $42,535 for the front-wheel-drive version and $44,125 for all-wheel drive. The vehicle reaches dealers mid-summer.

The RX 450h is powered by an updated hybrid system (earlier post), and it pumps out 295 hp, 27 more ponies that the RX 400h. Fuel economy is estimated to be 32 in the city and 28 on the highway for the front-wheel-drive version, while AWD drops to 30 mpg city and 28 highway.

Features include new hill-start assist and adaptive front lighting systems. Eighteen-inch aluminum alloy wheels are standard, and 19s are an optional upgrade. The ute is also fitted with an optional navigation system with voice recognition.

Source: AutoWeek

Nissan's EV to have a 100-mile range but no advanced-tech price premium

Nissan has unveiled a few more details this week about the electric vehicle it will launch in only 18 months.

Mark Perry, director of Product Planning and Strategy for Nissan Americas, said the EV will be a "real car" offering real-world practicality. It will be a five-door hatchback with a 100-mile range on a single charge and will be "aggressively priced."

That means, he said, no EV technology premium, unlike current hybrids that sometimes sell for 20 percent more than comparably priced cars.

Furthermore, the Nissan EV will be eligible for a $7,500 federal tax credit, he said, and there may be other state and local incentives to reduce the cost even more.

Perry discussed the upcoming EV with Green Car Advisor at a Southern California event introducing Nissan's electric drive system - although in a retrofitted Nissan Cube "mule" rather than in the car the company plans to put on sale.

The test car features the future EV's advanced lithium-ion battery pack and Perry said it provides enough power that that some journalists "lit up the tires" driving the test car on this nationwide tour being held to introduce the battery-electric powertrain.

On our tantalizingly short test-drive, the Cube test car was amazingly quiet and moved seamlessly - no whirring and of course, no shifting. The only apparent compromise is that the backseat of the Cube was raised to allow the installation of the battery pack beneath the floorboards.

Perry said the car could be recharged at three levels. Household current (110 volts) would require 14 hours for a full recharge while 220-volt power - available in most homes and businesses - would recharge it in four hours. At special 480 volt-recharging stations the car could be brought up to 80 percent of its capacity in about 20 minutes, which, he said, was the average amount of time Americans take when stopping at a fast food restaurant.

He pointed out that there are already 4,500 public and private recharging stations in California left from unsuccessful efforts in the 1990s to introduce a practical electric infrastructure.

Nissan's product planers determined the EV's 100-mile range to be both "rational and emotional" Perry said. An 88-mile range wouldn't impress people, but a triple-digit capability would be exciting. Besides that, he said, most Americans drive less than 40 miles a day and 98 percent drive less than 100 miles per day.

The car's range was measured on the "LA4 cycle" which mixes highway and city driving. Driver variations (lead or feather-footed drivers) would have a 10 to 15 percent impact on the 100-mile figure. The acceleration of the coming EV compares to that of a current compact car, Perry said.

While we were limited to the Cube, Perry said he has seen the actual EV that Nissan has designed and will introduce for sale in the fourth quarter next year in 12 to 15 U.S. markets.

"It is a dedicated all-new car, not the conversion of something we already offer," he said. He described the look of the car as "iconic" adding, "You need something that is different enough to let people know you are driving a special car."

It would cost about 90 cents to "fill the tank" on the EV - making the cost of its fuel less than a penny a mile.

Asked if America is ready for electric cars, Perry said that while not everyone is prepared to switch, "a significant number of people are eager to have a zero-emission car with a 100-mile range."

Source: Green Car Advisor