Fri 30 Mar 2007
Japanese automakers are far ahead of their US counterparts in the green car segment
Blame it on the surge in the fuel prices or the increased consciousness among the consumers about environmental pollution caused by auto emissions…the last year saw an unprecedented fall in the performance of the three US automobile giants, Ford, General Motors (GM) and Chrysler.
Consider these stats:
Total sales of Ford fell by 8%, GM’s 8.7% and Chrysler’s 5%. On a contrasting note the Japanese duo the Toyota and Honda turned out to be the winners with 12.9% and 3.5% annual rise in their sales respectively.
In order to maintain the rate of profitability, both Ford and GM resorted to huge restructuring: in an unprecedented move, GM sold off a majority stake in its GMAC finance unit to counter its financial losses. In addition to that GM plans to cut 30,000 jobs and close several factories by 2008, while Ford plans to cut around 38,000 jobs.
In an contrasting move, Toyota however announced plans to establish six more factories around the world by the end of the 2010.
In the world auto market, Ford has recently been defeated by Toyota. The 2007 is also expected to belong to Toyota as the crown of leading automaker of the world is expected to go down to Toyota from GM. Toyota and other Asian car companies are also expected to grab increased share of the pie in US domestic market… industry experts predict.
Although GM has emphasized on the improvements of battery technology, industry experts are not actually convinced that GM could do much to give a close competition to the hybrid giants like Honda and Toyota.
Toyota is already making profits by selling its hybrid cars; the profits on its Prius hybrid are believed to fall between 3 percent and 5 percent. For the models like the Lexus RX 400h, margins are expected to be even higher.
But Toyota is not content with its success so far; Toyota undergoes a constant upgradation…in late 2008 or early 2009, it is expected to unveil the third-generation hybrid system using the Li-ion batteries instead of the current nickel metal hydride cells. The new hybrids will be smaller and also cheaper by half the current price. Fuel efficiency is also expected to improve by 20 percent to 30 percent.
Honda is not much far behind…in gas-electric hybrids segment, a new subcompact model is on the way to make appearance as early as 2009. The plug-in hybrids of its own are also on the anvil.
The key factor for the coming years is going to be the breakthrough in the Li-ion battery technology. However, the American auto giants are also lobbying for getting governmental subsidies for battery researches. Even then it is the Japanese hybrid leaders that are predicted to start the first commercialized production of li-ion batteries for their hybrid cars.
So it can be safely predicted that it is the Japanese auto leaders that are going to dominate the hybrid market in the coming years.
July 1st, 2008 at 9:48 pm
Keeping things on an even playing field regarding the infusion of hybrid vehicles into the American market I thought I might share my experience purchasing one. 6/14/08 I purchased a ‘08 Saturn Vue Greenline Partial Hybrid. My company car is a ‘07 Prius HSD full Hybrid. I have spent many years researching and using this technology and with the rising cost of fuel in the US and my personal need to replace my aging 2001 Pontiac Grand AM 4 cyl with 145K miles it was time. The Toyota Prius was a great choice but the cost and availability were hurdles. Ultimately the ride comfort and cargo capcity were the deciding factors for my choosing the Saturn Vue. After only 600 miles this is a decision I am regreting. I am writing to the New York New Jersey Attorny Generals about this matter for possible “Lemon Law” enforcement.
Do not invest in this company’s product. Saturn Engineers and Technicians are out of touch with the American people and the customers they presumably design these cars for. There is a critical unexplained programing glitch in the software controling the many modules that communicate their information to the main computer control unit. When the modules don’t communicate to the main computer the system starts to disable certain functions including safety functions and sends error codes and lights flashing on the dashboard. Dealership mechanics go through their service tree and ruling out physical causes resolves the issue by reprogramming each module. Then they must reestablish the hand shake between the module and computer.
As a consumer my question is why is this happening and can it happen again? No one has called me to explain those things to me. A vehicle is a major investment and it behooves Saturn engineers to step up to the plate, come out of their ivory tower and explain to customers what is going on. It is no wonder American car manufacturers can’t compete. They want to make junk and expect Americans to buy it while they peddle other wares in countires like China. I don’t have sympathy when manufacturers like Honda, Toyota, Mitsubishi and Hyundai beat the pants off of the Big Three.