Business Week: Is GM's Green Tech Better Than Toyota's?

[Chrome]

In the next 24 months, General Motors (GM), Chrysler, Daimler (DAI) and BMW (BMWG) will collectively bring out at least nine hybrid trucks and sport-utility vehicles, including the Chevrolet Tahoe and Chrysler's Aspen and Dodge Durango, which are being unveiled this week at the Los Angeles Auto Show. But for the conditions of a joint technology agreement among the companies, each vehicle might have a badge on its side-panel that says "GM Inside."

That's right, GM, once a laggard in fuel efficiency technology, is making its nemesis Toyota ™—the undisputed image leader in fuel-efficient transportation—take notice by starting a new and legitimate rivalry for the next generation of hybrid trucks and SUVs, as well as plug-in vehicles. Chrysler, Mercedes-Benz, and BMW all opted in 2005 to adopt GM's hybrid technology in a four-company venture, rather than to license Toyota's hybrid hardware.

Hybrid Trucks Ready to Roll
GM launched the Chevy Tahoe hybrid last month, while the rest of the companies are rolling their hybrids out in 2008 and 2009. The Durango and Aspen hybrids are expected to increase fuel efficiency by 20% to 25% over their gas-only counterparts, or about 18 city/23 highway. The SUVs will come with 5.7-liter HEMI V-8 engines with Multi-Displacement System (MDS), also known as "cylinder deactivation," as well as a feature that allows the engine to stop at traffic lights. That means, under highway cruising conditions, only four cylinders will push the SUV down the road unless it's packing a huge load. The improvement in city driving fuel economy, though, is 40% over the gas-only version.

Mercedes is using the same two-mode, hybrid transmission technology in the ML450 Hybrid, set to launch in 2009. BMW showed its first vehicle utilizing the technology from the venture in the X6 ActiveHybrid concept vehicle it showed last September at the Frankfurt Auto Show. The X6, scheduled to go on sale in the fourth quarter of 2009, can be driven on electric power only, on the combustion engine alone, or with a combination of both power sources.

It may surprise many consumers that companies as historically finicky and image-conscious as Mercedes-Benz and BMW would opt for GM's hybrid technology over Toyota's. After all, an internal study by GM last year showed that 70% of the consumers the automaker polled described GM as "part of the problem" when it comes to climate change and the impact of automobiles on the environment, whereas 70% of the same group described Toyota as "part of the solution."

GM's Solution Packs More Power
GM began its hybrid technology program in the shadow of Toyota. The Japanese automaker introduced the Prius hybrid in 1998 in the face of GM skepticism that there was a market for such a vehicle, or that it was the right sort of vehicle to carry a hybrid system. GM was developing a system for diesel-electric hybrid city buses with technology it planned to leverage into pickup trucks and SUVs. Toyota was clearly successful in terms of tapping into consumer desires and in developing a green halo that serves it well today. "There is no question that we [GM] underestimated the marketing power of the technology," says Larry Burns, GM's executive vice-president for research and development.

However, Toyota's hybrid system does not work well for towing or pulling heavy loads associated with pickups and SUVs. That's why Toyota has yet to introduce a hybrid version of its Tundra pickup (BusinessWeek, 1/30/07), or of SUVs such as the Sequoia and the Land Cruiser.

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[F8L]

Looks like more scrambling and talk to me. Especially from Chrysler and their huge marketing of the Hemi garbage that has been coming out in the last few years.

Just like when Walmart gave 20million to the Katrina victims, it's all market positioning and a drop in the bucket for them. Toyota is not exempt either. Put out as few "lost leaders" yet continue to sell garbage.

[F8L]

Grr, sorry for my negative response to this news.

It's better than them denouncing fuel efficiency altogether and coming out with more vehicles with less MPG and emissions equipment.

[Tideland Prius]

That's probably b/c Toyota's charging a premium for their HSD licence so BMW/Chrysler/MB decided to pair with GM and spread the cost over a larger no. of vehicles in hopes they can lower the hybrid "premium" and be competitive with Toyota.

[Earthling]

"There is no question that we [GM] underestimated the marketing power of the technology," says Larry Burns, GM's executive vice-president for research and development.

Translation: we make our highest profits on SUV's and large pickup trucks, and we will do everything possible to keep right on doing that, even if it destroys the planet.

Hey GM, how about offering a high mpg vehicle, instead of a gas-hog?

A hybrid gas-hog is still a gas-hog. And most of these vehicles are simply unnecessary and irresponsible, and damaging to our country and our planet.

Harry

[kenmce]

OK, so they have big plans. Wake me up when they have some product.

[Chrome]

<div class='quotetop'>QUOTE(Earthling @ Nov 14 2007, 06:05 PM) [snapback]539696[/snapback]</div>

"There is no question that we [GM] underestimated the marketing power of the technology," says Larry Burns, GM's executive vice-president for research and development.

Translation: we make our highest profits on SUV's and large pickup trucks, and we will do everything possible to keep right on doing that, even if it destroys the planet.

Hey GM, how about offering a high mpg vehicle, instead of a gas-hog?

A hybrid gas-hog is still a gas-hog. And most of these vehicles are simply unnecessary and irresponsible, and damaging to our country and our planet.

Harry
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Same old rhetoric. The fuel saved by a Hybrid Tahoe over a regular Tahoe is immense, and if someone's not going to give up a full-size SUV, then at least this provides them a more fuel efficient option. Everyone wins.

[pbsriniv]

No, it is not any significant savings..

For instance if the tahoe fuel consumption is 15 miles a gallon.. A 40% improvement (thats quoted in the press release, expect a lot less in reality) would imply just an extra 6 miles per gallon..

a 21 miles/gallon is still not fuel efficent IMHO..

<div class='quotetop'>QUOTE(Chrome @ Nov 14 2007, 06:45 PM) [snapback]539704[/snapback]</div>

Same old rhetoric. The fuel saved by a Hybrid Tahoe over a regular Tahoe is immense, and if someone's not going to give up a full-size SUV, then at least this provides them a more fuel efficient option. Everyone wins.
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[F8L]

<div class='quotetop'>QUOTE(pbsriniv @ Nov 14 2007, 04:36 PM) [snapback]539716[/snapback]</div>

No, it is not any significant savings..

For instance if the tahoe fuel consumption is 15 miles a gallon.. A 40% improvement (thats quoted in the press release, expect a lot less in reality) would imply just an extra 6 miles per gallon..

a 21 miles/gallon is still not fuel efficent IMHO..
[/b]

It is not a significant number for sure but when that increase is from 15mpg tro 21mpg then the actual gallons of fuel saved is quite immense. More so than the 6mpg gain from 45 to 51mpg. Try the math yourself, it really changd my opinion of milage increases on the gas guzzlers.

I agree that it is not enough but I disagree that it is insignificant. Getting those gas guzzlers to increase by 6mpg is actually better for us than getting the new Prius to go 75mpg.

[Earthling]

What would be better is to have the numbskulls who feel that they need Tahoes to make a social statement @15 mpg switch right now to a luxury car that gets 30 mpg. No technology necessary, just switch, and get double the fuel economy.

And if we can't get SUV drivers to switch, then let's switch the vehicles out from under them, and require reasonable fuel economy. If that means outlawing SUV's as we now know them, so be it.

Harry