The Price of Saving Fuel

We may soon see more “green” vehicles on the road. According to Kiplinger.com, a survey by Capital One Auto Finance found that a third of their participants would likely purchase a green vehicle as their next auto purchase. People are considering one of the alternative-energy vehicles for a number of reasons, including the high price of gas. Some also want to do their part to help the environment, such as our air quality. But no matter the reason, most green vehicles qualify for tax deductions—and this alone is a great reason to buy one. However, you should know you'll pay an average of $5,500 more for a 2010 hybrid than for its gasoline-engine counterpart.

One way to see whether it pays to buy a green vehicle is to calculate the five-year ownership costs. What are your long-term savings at the pump as well as tax credits for the many green vehicles? When we compared the ownership costs of hybrids versus conventional vehicles in early 2009, gas prices we’re hovering just above $2 a gallon, and few hybrids earned back their extra cost with savings at the pump. But with gas now closer to $3 and with more eco-friendly vehicles on the market, you can more often save green by buying green.

The Kiplinger.com article updated calculations, pitting 19 hybrids and 11 diesels against comparable gas-engine vehicles. The numbers assume that you drive 15,000 miles a year and that regular gasoline is $2.85, premium is $3.15 and diesel is $3.08, with a 3.5% annual increase for each fuel. The math also includes depreciation, maintenance and repairs, and it assumes you finance the vehicle with a five-year loan after a 15% down payment. Don’t forget to account for federal tax credits for vehicles that still qualify for them; they've expired for Ford, Honda, Lexus and Toyota hybrids. (If you're hit by the alternative minimum tax, the credit won't help you, so your payback time will be a bit longer.)

Winners and losers according to Kiplinger.com: Diesels pay back their premium more often than hybrids do. Over five years, every diesel except one -- Volkswagen's Golf TDI -- costs less to own than the comparable gas-engine model. The savings range from $307 on the BMW X5 35d to $6,082 on the Mercedes-Benz GL350 Blue-Tec (the $60,825 diesel GL is priced $1,000 below the gas-engine GL450 and has a tax credit of $1,800). Among hybrids, you're more likely to be on the losing end of the deal as long as a gallon of gas still costs about $3. You'll save the most buying the super luxury Mercedes-Benz S400 hybrid ($92,475). It beats the S550 by $6,764 over five years -- mainly because it costs $3,650 less than the S550 and carries a tax credit of $1,150. But in general, the more expensive a hybrid, the less likely it will save money over its gas-engine sibling. For example, the biggest losers are the Chevrolet Tahoe and GMC Yukon hybrids (both about $52,000) -- which would cost you $10,000 more than their gas-engine comparables over five years -- and the Lexus LS 600h L ($109,675), which would cost a whopping $41,428 more to own.

I recently wrote a blog on the topic, 10 Vehicles that Still Qualify for a Federal Tax Credit. Check it at http://ronideutch.blogspot.com/.

Ford to Move Hybrid and Electric-Car Jobs to Michigan

Great news for Michigan! Recently, Ford Motor Company has announced that they are investing $135 million to design, engineer and produce key components for its next-generation hybrid-electric vehicles in Michigan. These vehicles will go into production in 2012. Ford states that Michigan will become its “center of excellence for vehicle electrification” and will add 170 combined green technology jobs at the Rawsonville and Van Dyke Transmission plants, as well as 50 electric vehicle engineer jobs. In an article posted on the Ford website, Michigan Governor Jennifer M. Granholm stated, “Today’s announcement by Ford represents another step forward in moving Michigan from the Rust Belt to the Green Belt by investing in green technology and creating green jobs.”

Ford’s Van Dyke Transmission plant will produce a new electric-drive trans-axle for the new hybrids; this will move work to Michigan that is currently performed by a supplier in Japan. Ford’s Rawsonville Plant in Ypsilanti, Michigan will begin to assemble the battery packs in 2012—moving work to Michigan that is currently performed in Mexico.

The new hybrids are part of Ford’s plan to launch five electric vehicle models in the United States by 2012 and in Europe by 2013. I will be looking forward to the impact on our environment as well as our economy in the coming years.

Read the full article here.

San Francisco Sets U.S. Example by Using Property Taxes to Finance Green Upgrades

San Francisco Mayor Gavin Newsom signed new legislation yesterday allowing homeowners and businesses to finance eco-friendly upgrades through their property taxes. It is reported that the program is the largest of its kind, and the Mayor hopes it will start a trend among local government agencies. Supporters of the program hope it will create jobs in the San Francisco area as well.

"This green financing program is going to create green jobs and prompt the next wave of energy and water efficiency as well as renewable energy development in San Francisco," Newsom said in a statement. "It helps home and property owners overcome the large up-front costs of major environmental improvements."

Beginning in March, San Franciscans will be able to seek financing from the Property Assessed Clean Energy (PACE) program, which will make $150 million in bonds available, according to Renewable Funding, a private group that will put up the capital and administer the program at no cost to the city.

"San Francisco is once again leading the way by establishing the largest PACE program in the nation to date," said Cisco DeVries, president of Renewable Funding, based in Oakland.

Studies show that up-front costs are often the main barrier that keeps property owners from making green upgrades. PACE programs aim to remove that barrier.

Continue reading at USA Today.com…

$60,000 Electric Sedan from Tesla

A few weeks ago Arnold Schwarzenegger, Governor of California, announced his support of Tesla Motors, who plan to produce a fully-electric, five passenger sports sedan that is expected to sell for $60,000. The vehicle is expected to run 225 miles on a full charge, and will be produced at a manufacturing plant in opening in Northern California. For more information check out Engadget.com.

7 Green Cars of the Future

With rising fossil fuel costs and global warming getting more attention in the media, environmentally friendly cars were all the rage at the Detroit Auto Show last week. At these auto shows, car manufactures usually present out-of-this world concept cars. This year, nearly every company showed off new environmentally-friendly cars.

The biggest trend at the show was new range-extended electric vehicle (REEV) concepts that run on an electric motor that powers the car 100% of the time. The vehicles plug into power outlets that charge the batteries for a 20 – 60 mile driving range. After they pass that range, a generator kicks in which recharges the batteries using any popular fuel. This includes gasoline, ethanol, or even hydrogen.

However, there were dozens of other energy efficient concept cars introduced besides REEVs. Enjoy the following list of 7 green cars of the future.

New Toyota Prius

At the Detroit auto show, Toyota's President, Katsuaki Watanabe announced that he would unveil two new hybrid models at next year’s show. One is suspected to be a Lexus hybrid, while the other is known to be the replacement for the Toyota Prius. Not much is known about what the new Prius will feature, but it is predicted to be more energy efficient with a lower price tag. Some speculate the new version could feature new plug in hybrid technology.

Volvo ReCharge

Volvo’s ReCharge concept car truly takes the phrase "green car" to the next level. Why? Because the vehicle even features green wheels. The car is a plug-in series hybrid with a battery with sufficient capacity for 62 miles of electric driving. After that, the car’s battery begins to recharge the battery. It is expected to average 124 mpg.

Chrysler ecoVoyager

Chrysler’s ecoVoyager takes the idea of plug-in hybrids to the next level. It relies on a fuel cell rather then gasoline or diesel. The vehicle features the modern "skateboard" design, which allows for a roomy cabin and low center of gravity. It weighs less than 3,000 pounds and Chrysler claims it gets a 12.9-second quarter mile. The car looks futuristic with its smooth design and vertical skylights.

Do not expect to see them on the road any time soon. Chrysler has not yet confirmed they are working on electric hybrid technology, but it certainly did not stop them from putting together an attractive concept car.

ASF Trinity Vehicles

AFS Trinity vehicles are actually not a new brand of car, but rather a working plug-in hybrid system. The company modified a regular Saturn Vue Hybrid by adding a powerful battery capable of running 40 miles on only electric power. Trinity is one of the first companies to successfully produce a REEV and is years ahead of the major automakers.

However, the technology is still going to need improvement before it will be ready to hit the market. The system likely requires large areas of storage space for the huge batteries required to run the car. Trinity has not yet released specific pricing information.

Chevy Volt

The Volt is Chevrolet’s concept of their future REEVs. General Motors has made great strides in environmentally friendly vehicles over the past few years and plans to have the first street-ready editions on sale by late 2010. The car is expected to be able to go 40 miles on 120-kW electric motor. GM hopes to have upwards of 60,000 of the vehicles ready for its first year on the market and plans for a base price of between $30,000 and $40,000.

Opel Flextreme

The Opel Flextreme is essentially a European version of the Chevy Volt. It features many of the same features as the Volt with a slightly different looking exterior. However, one major difference is that the Flextreme comes with a rear storage space specifically designed to fit a pair of Segways that can charge off the car’s batteries. Unfortunately, this extra storage space means less room for fuel, which reduces the car’s range from 640 to 444 miles.

Fisker Karma

The Fisker Karma represents the future of luxury sports cars. The vehicle has a sporty and attractive design but maintains maximum fuel efficiency. It features a lithium ion battery pack that can power the car for 50 miles before needing fuel. According to Fisker it can go from zero to sixty in 5.8 seconds and reach a top speed of 125 mph.

Images curtosy of AutoBlogGreen.com

Green Car of the Year: Chevy Tahoe Hybrid

Green Car Journal founder Ron Cogan announced yesterday that this year’s Green Car of the Year Award is the Chevy Tahoe Hybrid. It received the award for demonstrating that a large vehicle with could still offer fuel economy equivalent to that of a much smaller car. Five cars were nominated for this award including the Saturn Aura Green Line, Chevy Malibu Hybrid, Nissan Altima Hybrid and Mazda Tribute Hybrid.