The U.S. House of Representatives is considering loaning at least $25 billion to GM, Ford, and Chrysler, possibly as part of a second economic stimulus package. If so, they'll have to move fast. Congress will go on break at the end of this month and may not reconvene for the rest of the year.

"House leadership weighs loans for automakers" [Reuters]
(Photo: Getty)

"Anywhere you want to look, credit conditions, the job market, stock market, you can see the consumers are getting hammered," Schnorbus said. "If there was ever a time when you want to sit back and wait out the storm, now is the time to do it."

But automakers also suggested some of the weakness in car sales could be due to the short supply of many fuel-efficient models after a rush to buy those vehicles in May.

"That limited supply we believed had an impact," said George Pipas, the director of sales analysis for Ford

Automakers are rushing to increase production on cars like the Prius in order to catch up with demand. Do you want a Prius or are you waiting for something even better? Or are you just, you know, already upside down on your current car loan and barely able to find the money to drive to the grocery store — let alone buy rapidly shrinking food?

Auto sales plunge [CNNMoney]
(Photo: Fast Fords )

The article says,

Among the first customers are actress Jamie Lee Curtis and filmmaker husband Christopher Guest, actress Laura Harris, film producer Ron Yerxa, as well as businessmen Jon Spallino and Jim Salomon.

"It's so smooth," said Harris, who played villainness Marie Warner on the hit TV show "24." "It's like a future machine, but it's not."

Harris, Spallino and Yerxa were flown to the ceremony, courtesy of Honda. Yerxa says he's excited to show off the car and believes there's "a lot of interest."

The biggest obstacles standing in the way of wider adoption of fuel cell vehicles are cost and the dearth of hydrogen fuel stations. For the Clarity's release in California, Honda said it received 50,000 applications through its Web site but considered only buyers living near hydrogen fuel stations in Torrance, Santa Monica and Irvine.

We're not yet sure how much it will cost to fuel this car once it is available. But whatever the initial cost is, we imagine that we will happier spending our money on hydrogen rather than gasoline.

Honda rolls out fuel cell car [CNN Money]
2009 Honda FCX Clarity [Business Week]

* Hybrids hold their value better than non-hybrid cars.
* Some lenders — typically credit unions — offer discounted loan rates for hybrids.
* Some insurance companies — including Geico, the Travelers, and Farmers — offer discounted premiums.
* The federal government is also offering tax credits of up to $3,400 for hybrids — but only for the first 60,000 vehicles, which means that Toyota and Honda models are no longer eligible. Some employers offer incentives for hybrid vehicles as well.
* And, of course, hybrids cost much less to fuel up.

In the end, the analysis shows a Honda Accord being 45% more costly and a Honda Civic 16% more costly than a Toyota Prius.
Of course the calculations are highly sensitive to assumptions, but to most reasonable observers, it appears that conventional wisdom has taken another hit.

Rethinking the cost of hybrid cars [Yahoo Green]

— FREE MONEY FINANCE

(Photo: geognerd)

2000 Honda Insight MPG: 51
Estimated cost: $4,760 - $6,350

2004 - '06 Toyota Prius MPG: 44
Estimated cost: $15,000 - $20,775

2001 - '03 Toyota Prius MPG: 41
Estimated cost: $6,700 - $13,225

2000 - '05 Toyota Echo MPG: 38
Estimated cost: $3,260 - $10,325

2003 Honda Civic Hybrid MPG: 37
Estimated cost: N/A

2006 Honda Civic Hybrid/EX MPG: 37/31
Estimated cost: $12,270 - $20,350

2007 Honda Fit Sport (manual) MPG: 34
Estimated cost: N/A

2007 Toyota Yaris Liftback and sedan MPG: 34/33
Estimated cost: N/A

1998 - 2002 Chevrolet Prizm MPG: 32
Estimated cost: $2,475 - $2,475

1998 Mazda Protege LX MPG: 32
Estimated cost: $1,690 - $3,925

1998 - 2000 Toyota Corolla CE/LE MPG: 32/31
Estimated cost: $2,245 - $5,900


1991 - 2001 Acura Integra MPG: 32
Estimated cost: $3,255 - $14,700

2005 - '06 Scion xB (manual/auto) MPG: 32/30
Estimated cost: $8,250 - $14,175

2004 - '05 Scion xA (auto/manual) MPG: 31/30
Estimated cost: $7,725 - $11,200


2004 - '07 Mazda3 (manual) MPG: 30
Estimated cost: $10,085 - $20,025

2006 Mini Cooper (manual) MPG: 30
Estimated cost: $16,660 - $24,7500

16 sweet used fuel sippers [CNN Money]

"Hybrids" are vehicles that use an electric power motor which assists a more traditional gasoline-fueled combustion engine. Unlike traditional vehicles, hybrids need to move a large amount of electricity near the driver which cause electromagnetic fields or EMFs. Many drivers are in their cars for hours at a time, making this exposure is prolonged, thus increasing the health risk. This has many drivers concerned. The article says,

Their concern is not without merit; agencies including the National Institutes of Health and the National Cancer Institute acknowledge the potential hazards of long-term exposure to a strong electromagnetic field, or E.M.F., and have done studies on the association of cancer risks with living near high-voltage utility lines.

EMFs are a byproduct of electricity, therefore, virtually every device that uses electricity produces some level of EMF. Generally, the more electricity that is involved, the stronger the EMF will be. However, there is no general agreement or federal standard that says what level of EMF's are hazardous. Currently the government does not do safety tests on the strength of EMF's in hybrid vehicles.

Much of this new concern over EMFs has stemmed from the use of inexpensive field-strength detectors such as the "TriField" meter which sells for $145. The article says,

The TriField meter is made by AlphaLab in Salt Lake City. The company’s president, Bill Lee, defends its use for automotive testing even though the meter is set up to test alternating current fields, whereas the power moving to and from a hybrid vehicle’s battery is direct current. “Generally, an A.C. meter is accurate in detecting large electromagnetic fields or microwaves,” he said.

Automakers argue that such instruments cannot make consistent and meaningful readings, however, there is anecdotal evidence of hybrid vehicle EMFs causing health problems. Neysa Linzer, 58, says that since she bought her Honda Civic Hybrid her blood pressure has increased and that she has fallen asleep at the wheel 3 times. She believes her hybrid is causing her health problems, "I never had a sleepiness problem before," she said. She requested that Honda provide her with shielding material to protect her from the fields but Honda declined.

Driver, Brian Collins decided to test his Honda Insight with a Trifield meter. He received readings of 135 milligauss at the hip and 100 milligauss at the upper torso. Considering his VW Van only measures between 1-2 milligauss, he decided to sell his hybrid at a $7000 loss. The article says,

Lawrence Gust of Ventura, Calif., a consultant with a specialty in E.M.F.’s and electrical sensitivity, was one of the electrical engineers who tested Mr. Collins’s Insight in 2001. He agreed that the readings were high but did not want to speculate on whether they were harmful. “There are big blocks of high-amp power being moved around in a hybrid, the equivalent of horsepower,” he said. “I get a lot of clients who ask if they should buy hybrid electric cars, and I say the jury is still out.”

New technology often comes with new risks. Naturally, reduced gasoline consumption is a good thing but we should not ignore possible risks as these vehicles gain popularity. We encourage the government and automakers to be more forthcoming with thorough EMF research so that we don't end up paying a higher price down the road.

Fear, but Few Facts, on Hybrid Risk [NY Times] (Thanks to Justin!)
(Photo: Getty)

The lawsuit claims American Honda Motor Co. has misled consumers in its advertisements and on its Web site. The suit notes that while the Environmental Protection Agency and automobile window stickers say "mileage will vary," some Honda advertisements read "mileage may vary." That implies that it's possible to get the mileage advertised, said William H. Anderson, a Washington, D.C., attorney for True.

If John True did any research before plopping down the extra $7,000, he would have known that the EPA estimates are rarely accurate; Consumer Reports found that the actual performance of the Honda Civic Hybrid was 26 mpg, 46% below the EPA estimates. The EPA tests are based on outdated standards that always present overly optimistic estimates. The test will be tweaked to simulate realistic driving conditions starting with the 2008 model year.

Hybrid owner sues Honda over mileage claims [The Detroit News]
(Photo: billselak)

Qualifying vehicles would need to be at least 25% more fuel-efficient than comparable gas-powered cars. Four manufacturers - Toyota, Honda, Ford, and Mazda - offer eleven models that would qualify, including two powered by natural gas.

The eleven qualifying vehicles, inside...

• 2004-07 Toyota Prius
• 2006-07 Toyota Highlander Hybrid
• 2006-07 Lexus RX400h
• 2006 Mazda Tribute Hybrid
• 2006-07 Mercury Mariner Hybrid
• 2005-07 Ford Escape Hybrid
• 2003-2004 Ford Crown Victoria (natural gas)
• 2003-07 Honda Civic Hybrid
• 2003-06 Honda Insight
• 2005, 2007 Honda Accord Hybrid
• 2003-05 Honda Civic (natural gas)

  States worried about anti-carpool yokels clogging their HOV lanes can propose stricter standards; California won't let a solo hybrid driver onto their HOV lanes unless their car gets 45 mpg. — CAREY GREENBERG-BERGER

  EPA Pushes Pool Lane Rules for Hybrids [Washington Post]

The credit has already begun to phase out for Toyota and Lexus hybrids purchased after September 30, 2006, and others will follow suit as they reach the sales volume target. The 2006 Prius' tax break, for instance, dropped in half to $1,575 if it was purchased after that date, and it will split again to $788 between April and the end of September, 2007. After that, the Prius rebate disappears altogether.

Hybrid Cars and the Vanishing Tax Credit [Consumer Reports]
Hybrid Cars and Alternative Motor Vehicles [IRS]

"Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter." Got all that?

The credit amount for the hybrid vehicle certification of the 2007 Nissan Altima Hybrid is $2,350. Not to mention all the money you'll save on gas. Hybrids are neat-o. —MEGHANN MARCO

2007 Nissan Altima Certified as Qualified Hybrid Vehicle [IRS]

What's his beef? Well, these vehicles ain't green. There are no offered hybrids. And there aren't even non-hybrids with decent gas mileage.

Consider the Buick LaCrosse, which gets a whooping 27 mph. HIGHWAY. 19 in the city. As Better Miles notes, "Nine-frickin'-teen miles per gallon is not green. This is a pathetic attempt to appeal to Americans' increasing unease about the price of gas. A real green offering would be welcome, but this isn't it." Nope.

Hertz insults our environmental intelligence with their "Green" collection [Upgrade Travel]

Although the vehicles tended to score quite well on performance and fuel efficiency, the bad news is that the price premium on these vehicles is prohibitively high. Consumer Reports notes that after five years, the average owner of a hybrid has not recouped the premium on gasoline savings, and this holds true even if you push out the time line to ten years.

This was all based upon the forecast that US gas prices may very well rise to $3 and $4 a gallon... if the price of gasoline stays lower, it would be even longer. Which means that the only reason to own one of these cars right now is as a statement, either political, environmental or social, but certainly not for good consumer value. It appears the hybrid isn't quite all the way there yet.

Link: Consumer Reports Sizes Up Hybrid Costs