When it comes to the PR efforts of the big automakers, there's often a fine line between creativity and just more of the same old BS.

On the one hand, we have the Automotive X Prize competition (more on that below), whose stated challenge is to put a vehicle into production that gets 100 mpg.

And on the other hand, at the New York International Auto Show on Wednesday, GM participated in a town hall-style meeting where its personnel discussed the progress on the Volt--GM's new Plug-In Hybrid Electric Vehicle (PHEV) that it plans to launch commercially in just a few years.

Unfortunately, while touting the new PHEV, they also did something that smells a bit fishy. Here's what happened:

During the meeting, Frank Weber, the global vehicle chief engineer for the E-Flex system (the Volt's propulsion system) said the following in reference to the Volt:

"With new technology, there are always risks."

What risk is he talking about?

• Is it that they might actually build a real fuel-efficient vehicle worth something?
• Is it that they might actually help hard-working Americans save a few bucks at the pump?
• Or is it that this could disrupt the long-held belief that we Americans are toothless and stupid and will continue to buy anything they crank out, so long as there's an American flag waving in the background of their commercials?

To be fair, Mr. Weber also stated that the more they look at their data, the more they think this technology will fundamentally change oil consumption.

Well, of course it will. More than half the population driving a PHEV with an all-electric range of 40 miles will never have to fill up. That's a change that we love, but OPEC hates. And heaven forbid we upset those guys!

Yet the question remains, why is it that GM is peppering their PR with stuff like, "There are always risks?"

How many times in the past has GM warned of "risk" when showcasing a new vehicle?

Of all the new cars they showcase every year, why is it this one that's a "risk"?

Instead of telling us about all these so-called risks, I want to know why they don't just do what any smart capitalist does--give the consumer what he wants.

I'm not saying Americans want to get rid of their SUVs. They just want them to get better mileage. And that's not out of the realm of possibilities for any major car manufacturer.

They know it, too!

And while I'm on this soapbox, I'm also calling these guys out on something else that came out of the GM camp recently.

On Tuesday, vice chairman of product development for GM Bob Lutz said that around 2015 they're going to have to sell a ton of hybrids whether people want them or not, because of new U.S. fuel economy standards.

Whether they want them or not?

I'm guessing since Toyota hit the one million mark on hybrid sales back in June, 2007-they want them!

I tell ya: Based on the way this guy talks, it's quite obvious that he really hates the fact that he's being dragged to this party kicking and screaming.

And blaming new U.S. fuel economy standards is a crock too.

The law requires a 35 mpg average.

You don't need a hybrid for that.

Hell, the Toyota Corolla (not a hybrid) gets 37 mpg right now. The Mini Cooper gets 37, and the Toyota Yaris gets 36. Both of these are also not hybrids.

And here's one you've probably never even heard of.

Running on a gasoline engine, but reconfigured to run on fumes, a small company from British Columbia called FuelVapor Technologies has been able to greatly increase fuel economy, delivering roughly 90 miles per gallon with its vehicle--which also is NOT a hybrid.

This company is just one of those that have entered the Automotive X PRIZE competition, where participants will vie for a $10 million prize.

100 MPG... in the Automotive X Prize

The challenge in the Automotive X Prize: make a production-ready vehicle that gets 100 miles per gallon or more.

The purse is to be split between two categories.

The first is mainstream, where vehicles must be able to carry four or more passengers, have a climate control system, have four or more wheels, an audio system and 10 cubic feet of cargo space.

These vehicles must also hit 60 miles per hour in less than 12 seconds and have a minimum top speed of 100 miles per hour with a range of 200 miles.

The second category in the Automotive X Prize is alternative. These vehicles have to:

• carry two or more passengers
• have five cubic feet of cargo, and
• have a top speed of at least 80 miles per hour with a minimum range of 100 miles.

Call My Bluff

Listen, I hope GM succeeds and proves me to be nothing more than a loudmouth with too many opinions. And this is not entirely out of the question. For all his questionable moves, I must applaud Bob Lutz for telling folks at the auto show that not making a hybrid car like the Prius was a mistake. He even went on to say that the company will not make that mistake again. We'll see.

But in the meantime, I'm putting my money on these little start-ups that, despite an uphill battle all the way, are embarrassing the majors with the kind of technology that Detroit decided to shelve decades ago.

Admittedly I'm still a bigger fan of PHEVs in comparison to more fuel-efficient gasoline engines. And this is simply because no one wants to rely upon foreign oil anymore. Not with all the economic, social, political, health, and security issues that come with it.

And we've already made a boatload in some of the companies that are supporting the PHEV movement.

Most notably the high-performance battery companies that are helping PHEVs deliver double and triple the miles per gallon required by that pathetic "upgrade" of CAFE (corporate average fuel economy) standards.

In fact, one high-performance battery company that we highlighted in our Plugged-In Profits report last year, Ener1, Inc. (OTCBB:ENEI) has delivered gains in excess of 300% since that report was published.

Take a look:

This, my friends, is why we love PHEVs.

Well, that and the fact that very soon many of us will be driving these PHEVs, and not spending a single dime on gasoline.

Profits AND a gas-free vehicle?!

Not a bad way to live.

To a new way of life, and a new generation of wealth,

Jeff

 

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Nuclear power and electric/hydrogen fuel cell cars are the long term answer.

100 Miles per gallon is fine but don't you think we should be thinking about breaking our dependence on cars? There might not be gasoline to put in those high effeciency autos... Then what?

As recent as November '07 GM's Rick West stated the battery technology would have to improve to make the Volt run. Plug-in cars? People can't seem to change their oil or rotate tires when they are supposed to, you really think they will plug in a car every night? Hydrogen is the best answer. And Washington should take it and shove it down Detroit's throat and make big oil tow the infrastructure line. There is a company in Scandinavia that builds hydrogen sedans and builds a fueling station that makes hydrogen on the site from water. Remember when America use to lead the way in technology? Once again Detroit is asleep at the wheel. Its time we demanded they respond. After all, if they don't, they're doomed to eventual complete failure.

Greetings from Johannesburg, South Africa.
Great article, gets you thinking that this is going to be the decade of change for many things we currently take as granted. There is no public transport in SA, so the petrol price increases have hit us all!
Unfortunately Opec needs to accept this change as they have profited from us for way too long now. Anyway we still need lubrication for gearboxes and engines, factories and mining operations so they dont have too much to fear over the next 10 years or so whilst people convert to greener transport. Another South African specific dilemma is there may not be enough electricity (from state supplier ESKOM) to power our PHEV's!

Jeff, you think that 35 mpg AVERAGE is quite do-able?? Wake up. America still loves its big pick ups and SUVs. And there's no way we're going to see 35 mpg out of a 4- to 5000 pound vehicle. Ain't happening. They're struggling to make 20 mpg with hybrids now. Remember, we're talking AVERAGE.

With the big vehicles hitting 20 if they're lucky, I'm just guessing that we're talking numbers somewhere around 50 mpg or so for normal cars like Malibus, Camrys, Accords, etc.

Ain't happenin.

For you to think gm or ford is not working on ways to get more miles per gallon is just stupid and if you are so smart why dont you fix it MR.KNOWITALL but for congress to mandate it that is just going to get us lighter cars that more people will die in I mean look at the facts people are willing to pay a little more for gas to insure that their families are safer than riding in some little econo box hey here is an idea lets build more nuke power like they have in france its safe they have been using it for 40 years we cant even drill for our own oil off our own coast thats progress and wasnt it just a couple of years ago that democrats were saying it was unfair that we werent paying the same price for gas that they are well they got their wish so shut up already what will they wish on us next more taxes to late so quit your whinning and look for an answer

Nothing wrong that that GM works on something as long as they still have some cash to spend! They are only 10 years late and still searching for an idea.

The American technology is already proven to the rest of the world but NIH is a powerful deterrent. Anyhow Toyata Prius uses the American technology inside all cars sold in America.

GM could use the same even fairly if they could ever think outside their NIH box.

The tiny Florida company is claiming that Toyota is infringing their patents. And for all legal humbug untrained engineer's brain can recognize the difference between what Prius has and the US patent of this tiny company has. As always when a dirt speck meets a giant the first round in court favors the giant. Somehow this tiny company has found further support and round two is on the way...

Years ago this company invented it all. NASA boys got so excited that they finalized all designs for free to get the rights to use this technology - ON PLANET MARS. For NASA guys it was clear that it all would work. And as they said the little marvels have been roaming ever since. One of them has lately generated some problems but not because of the engines but because the sand storms that make the solar cells dirty. NASA forgot the cleaning lady as the project was to last only for a few months.

You there in energyandcapital are missing one point a big time. Your claims of fututre with all electric car without oil in a few years is lunacy. If you really believe that then start cranking as you have promised to replace all the electricity generated by the oil, coal and nukes. The net must have some juice or the lights do not shine so brightly!

The renewables will not be there to help. In a couple of decades they will have an impact but they still can not replace this old and dirty stuff. Get used to it!

PHEVs are a great idea if we can get enough electricity for all of them. It will take about 18KWhours of juice to go 40 miles.
It can be done but all the can't be done people will need to let us get to work building more power plants that use the sun for heat.

These small vehicles will be great for people that live within 30 miles of their work, in other words live and work in the same Quadrant of a large city. They will not do a thing for the rest of us, I choose not to live near a city and have no use for them, I can see and smell the smog 10 miles out. Still everything consumed today depends on diesel fuel; for production and delivery to retailers. The alternative is a return to small farms and each of us will produce enough for our family, not necessarily good for the city-dweller. Luckily my grandfather taught us how to plow with a 2 horse hitch, but I won't be contributing much to sale after feeding horses, livestock, and chickens for our use.
Seems to me that the food chain is being ignored in all this special interest hype. A tractor today consumes $20.00 worth of diesel/hr. (with prices at $3.50) and the fields must be worked 4-5 times before the seed is planted. Somebody is going to starve, if it were going to be me rather than ethonol for gas make it good corn liquor. Still starving but drunk enough not to care!

opec should not fear phev vehicles because some of the vehicles being tested require a recharge overnight from an electrical outlet and the electricity in that outlet comes from a power plant that may be burning petroleum to generate the electricity

I enjoyed the article. I found it educational and very interesting. I saw a program on the History Channel about a car that could run on compressed air.
I enjoyed all of the different articles on using our Resources wisely published by you folks. Thank You. Lead on.

The only thing I can figure is that big oil controls the auto industry and this even includes ones like Toyota because I think they could be doing a lot better than they are. From what I have heard on the street the fuel mileage in regard to their trucks is no better than the rest. GM is actually going backwards in regard to the fuel mileage of their autos(I have children driving mid 90's cars that are getting better gas mileage than the junk they are making today(its a sad world).

JUST HOW IS OUR STATE AND FEDERAL GOVERNMENTS GOING TO COLLECT ROAD USE TAXES..... I DREAD TO THINK OF HOW THEY COULD START TO SCREW US. YOU KNOW THEY WILL THROW A LITTLE EXTRA IN FOR THEMSELVES AT THAT TIME. ONE OTHER THING, WITH A 40 MILE RANGE HOW DOES THAT WORK FOR A PERSON WHO LIVES 50 MILES FROM WORK WITH NO CHARGING SYSTEM AT WORK... DO WE PUSH THE LAST 10 MILES TO WORK AND THE FULL 50 HOME?
AFTER ALL WE ARE THE ONES WHO ARE SUFFERING THE MOST WITH HIGH GASOLINE PRICES.... PEOPLE WHO LIVE 2 TO 10 MILES FROM WORK ARE GETTING TO BE A THING OF THE PAST. I ENJOY LIVING IN THE COUNTRY... THERE ARE A LOT OF QUESTIONS TO BE ASKED.... AND ANSWERED....

SINCERELY, HANK AUGER
FREMONT, MICHIGAN

When there were no Auto Imports, employment was in abundance, people could buy homes and cars, if there were home foreclosures, they were few and far between.

All of Japan's manufacturers of Cameras, binoculars, radios, television, watches and clocks, almost everything decided to destroy the American Auto Industry, and that wasn't really hard to do when you look at who the CEOs of American Companies were, and still are; they couldn't find their own butt with both hands.
I am a retired Tool and Die Maker. I witnessed stupidity to the Nth degree at the Ford Stamping Plant where I was employed, and
this was only the tip of the iceberg.
I saw the results of the "bright" boys at the Ford World Headquarters in Dearborn "saving" money by purchasing tooling from Japan, Brazil, and Argentina, tooling that was absolute junk and had to be TOTALLY reworked.
Instead of sending Tool and Die Makers to check on what was being made, they sent clowns; I bet the Japs and the others were laughing their arses off.
Then the jokers at World Headquarters tried to copy the Japs with the 'As needed' system, in other words,only produce enough parts as needed with no stock in reserve: suckered again! The Japs had back alley shops churning out the smaller details such as headlights, taillights, hand brakes, and hundreds of other items, these in turn were delivered to the assembly plants. The 'yokels' from Dearborn were told that what they were looking at was all from automation.
Every manufacture in Japan initially subsidized the Jap Automotive Industry to kill the Big Three. Now we have you, and such as you rushing in to help give the Coup de Grace. Thank you.

The subject title was "120 MPG"
I understand that the Ford Mo.Co. will have such a vehicle on the market very soon.

Alexander McNeilly

I have never liked GM, obviously they are not up with the Times. The EV1 was a BIG mistake on their part, the comments in the above article are definitely other smart remarks! My opinion, hybrids are really a "nothing", they get very little extra mileage, except for the Prius. If you check ZAAP Motors in partnership with [parden the word] China, will probably have a good ELECTRIC called the Detroit Electric very soon.

It continues to amaze me that the green investment wonks fail to sell all that they have, develop alternative energies to their hearts content, and OWN THE WORLD with their huge profits. Or am I missing something? Is it possible that they are like the bumblebee who makes a lot of noise hoping another will take the risk, since the outcome is so uncertain?

Hi,

Could the risk the PR flak was talking about be the lithium batteries that these modern plug-in hybrids will have to use to achieve 40 miles per chargeup? And the fact that lithium used for little cellphone batteries and lithium used for a big car battery pack could be two different animals? (bigger chance of fires?) Perhaps, there is also an issue of whether the world has enough lithium for the all the required car batteries for plug-in hybrids (there isn't a lot of lithium available even now). Maybe?

Thanks for the article!