Auto fuel efficiency is certainly going up and high-MPG auto sales are surging today, but a number of persistent myths continue to cloud the knowledge of some policymakers and members of the public, according to Go60MPG, a joint effort of Environment America, the National Wildlife Federation, natural Resources Defense Council, the Safe Climate Campaign, the Sierra Club, and the Union of Concerned Scientists. In front of the N.Y.C. International Auto Show being held April 22-May 1 in N.Y. City and the Electric Drive Transportation Association (EDTA) 2011 Conference being held April 19-21 in Washington, D.C., Go60MPG is releasing the following list of five myths and facts: 1. MYTH: Americans don't want high MPG cars . and aren't buying them. FACT: High MPG car sales are rising sharply. The market has spoken - and it wants high MPG cars. March sales figures point to surging demand for hybrids along with other fuel efficient cars. Michigan-based auto market expert Alan Baum's analysis shows sales of hybrids and clean diesels rose 46 percent from March 2010-March 2011, almost three times as quickly as the entire market. The Baum data also show small cars and hybrids are the most in demands in the car or truck market, using the rise in the value of the Toyota Prius hybrids exceeding other vehicles. With gasoline prices hovering at $4 gallon, the hybrid market might be reaching a tipping point. As USA Today reported in an article a week ago titled "Toyota Prius sales top 1M as pump prices spur interest in hybrids": "The first quarter this season, about 275,000 hybrids of all kinds were bought from the U.S., contributing to 141,000 of these were Priuses, says Kevin Riddell, auto analyst at consultant J.D. Power and Associates. His data reveal that hybrids - and a handful of pure electric cars - made up 2.4 percent of recent vehicle sales this past year, and that he forecasts they'll make up 4.5 percent in 2012, an easy pace driven by new models from Toyota and others within the interim. This is a strong showing, considering hybrids cost higher than similar gasoline cars." 2. MYTH: Detroit can't earn money selling high MPG cars. FACT: High MPG standards can be profitable for Detroit . and also help boost U.S. MPG technology innovation. A March 2011 Citi report released by Ceres and also the Investor Network on Climate Risk shows that stronger fuel efficiency and global warming pollution standards will boost variable profits and sales in 2020 for the auto industry worldwide, with the Detroit 3 seeing the largest financial benefits. The Detroit 3's variable profit gains would garner more than half of all increased profits. Walter McManus, an economist in the University of Michigan Transportation Research Institute (UMTRI) and Director from the Automotive Analysis Group, said: "Our research suggests that increasing industry average gas mileage to 42 miles per gallon by 2020 could raise industry variable gain $9.1 billion, or 8 percent. The majority of the added profit, $5.1 billion, could navigate to the Detroit 3." 3. MYTH: Automakers oppose high MPG cars and can impede any progress along those lines. FACT: Automakers understand that fuel efficiency has become driving auto consumer purchases. When asked to rate the importance of product attributes to consumer purchase decisions over the next 5 years, auto executives cite "fuel efficiency" probably the most frequently (91 percent) within the 2011 annual global automotive survey conducted by KPMG LLP survey, then safety innovation (82 percent), vehicle styling (77 percent), and environmental friendliness (75 percent). For the 12th annual survey, KPMG interviewed 200 global executives, representing vehicle manufacturers and suppliers, from October through November 2010. Automakers not just make changes, however admit that higher MPG standards helps their competiveness inside a realm of high gasoline prices, according to Automotive News: "Many automakers think that the job they've done since the last big price surge, as well as in anticipation of higher government fuel efficiency standards, leaves them better prepared this time around, with stables of more competitive small cars and crossovers." 4. MYTH: High MPG/low pollution car technology isn't ready for prime time. FACT: High-MPG technology has already been here - like turbochargers, direct injection, dual-clutch transmissions, lighter materials, and stop-start technology - and it is getting better every day. Dan Meszler of Meszler Engineering Services, that has analyzed transportation energy and quality of air issues since 1982, said: '". technology exists to address numerous continuing inefficiencies associated with internal combustion engines. Between now and 2020 much of this technology is expected to mature, so that a 2020 CAFE dependence on 42 miles per gallon should produce consumer savings starting at gas prices of $2.00 per gallon. Since current and expected future gasoline prices far exceed that price, these technologies driven fuel savings are incredibly economical and indicate that the 42 mile per gallon CAFE program won't reduce petroleum imports, but save consumers money." Suppliers of those technologies - from turbochargers to direct injection, dual-clutch transmissions and more - will benefit even more within new fuel economy standard requiring improvements of 6 percent annually between 2017 and 2025. Steven Plotkin, a researcher at Argonne National Laboratory, said most of the technologies for lowering CO2 emissions are already available from the same manufacturers which had once declared them to be impossible. Turbocharged four-cylinder engines, for instance, are able to replace six-cylinder power plants; without any decline in performance and with reduced emissions. Lithium ion cathode technology licensed from Argonne has been used to enhance the performance and boost the safety from the batteries being manufactured by South Korea's LG Chem for the Chevrolet Volt. Turbochargers are rapidly emerging as the choice for automakers that require moderately priced, off-the-shelf technology to satisfy corporate average fuel economy targets. By 2015, as much as A quarter of all light vehicles sold in america will be turbocharged, up from 8 percent this season, predicts J.D. Power and Associates. Turbochargers "will be utilised by almost all major carmakers," says Mike Omotoso, J.D. Power's senior manager of global power trains. "The technology has been around for a long time, and it is relatively cheap in contrast to hybrids" and electric vehicles. 5. MYTH: High MPG car price is too expensive for many consumers. FACT: Higher MPG standards and related incentives will make fuel-efficient cars even more affordable. New standards being considered by the Federal government would decrease fuel consumption for new vehicles up to 6 percent each year from 2017 through 2025, which would boost average fuel efficiency as much as about 60 MPG (about 48 MPG on road). This would be at a cost around $3200 per vehicle, which would be taken care of within 4 years through fuel savings. These clean car standards would save vehicle owners $7,500 over the lifetime of the automobile at a gas price of $3.50 per gallon, even after spending money on the additional cost of the cleanser vehicle. That's the same as a gasoline price cut in excess of a $1 per gallon compared to a vehicle with today's fuel efficiency. Automakers have claimed costs will be higher: "Automakers argue those estimates are "unrealistic" and indicate a Center for Automotive Research analysis that says hiking fuel efficiency to 60.1 mpg could boost vehicle prices 22 percent, cut sales 25 percent and trim as much as 220,000 auto sector jobs." Unfortunately for that automakers, that Michigan-based CAR report has already been discredited by the International Center for Clean Technologies (ICCT). Inside a stinging critique, the ICCT points out numerous flaws within the study which the consultants have yet to respond to. History also implies that automakers typically exaggerate the price of new clean car technology, therefore the recent CAR claims come as no real surprise to long-time observers from the auto industry.
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car fuel efficiency is going up and high-MPG car sales are surging today, but a handful of persistent myths continue to cloud the understanding of some policymakers and members of the general public.
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