Obama Lauds Japanese for Plug-In Development, But U.S. Carmakers Came First
By John O'Dell April 30, 2009
Plug-in hybrid advocate Felix Kramer says he was heartened when President Obama, answering the final question of Wednesday evening's prime-time press conference "picked plug-in hybrids as the model for his hopes and expectations" for American industry.
Chevrolet was first to test plug-in technology with Volt concept in January 2007.
----------
We're happy, too, that the president sees plug-ins as a metaphor for progress, but we're concerned about his apparent belief that U.S. automakers are trailing the Japanese on this technology.
In responding to a reporter's question about government's role in rescuing troubled businesses, Obama said, in part, that he wants to get out of those businesses as soon as possible and without wasting taxpayer money.
Ford has been testing plug-in Escape hybrid for several years.
----------
We're not sure who has been briefing the president, but the Japanese haven't been leaders in designing an affordable plug-in hybrid.
True, the first plug-ins -- done by do-it-yourselfers such as Kramer -- used the Toyota Prius gas-electric hybrid as the base vehicle. But Toyota Motor Corp. spent a long time discouraging the converters and denegrating the value of a plug-in that would provide extended all-electric range by using a battery pack that could be charged up from the commercial power grid.
Indeed, it was General Motors Corp. and Ford Motor Co. that initially began developing and testing factory-built hybrids with batteries that could be recharged by plugging in to the grid.
GM's plug-in, the Chevrolet Volt, was a world's first when it was introduced as a concept car in January, 2007
, at the Detroit Auto Show It quickly was added to GM's future products list and has become the car on which the company has staked a big chunk of its future. The production Volt (left)
, looking a lot different than the concept of two years ago, is slated to hit the market at the end of next year.
Ford showed a similar technology at that same show and later introduced a plug-in version of its Escape hybrid. The plug-in is still in testing with a projected retail launch in 2012.
Toyota, meantime, didn't acknowledge until mid- 2007 that GM and Ford might be onto something and said it would push forward with a plug-in version of its top-selling Prius hybrid. testing has begin but the car isn't expected to begin offering it to retail customers until sometime after the Volt goes on sale.
And Honda Motor Co. has spent the bulk of its alternative fuel development dollars on a fuel-cell electric car, the FCX Clarity, that bypasses the plug altogether and uses hydrogen to create electricity in an on-board thermo-chemical reaction.
It was only this week that Honda gave a nod to plug-ins, saying it will now consider developing one, given the U.S. government's interest in the technology and the apparent lack of interest in developing a hydrogen fueling infrastructure that would make the Clarity a candidate for mass production anytime soon.
Nissan Motor Co., which has been late to the hybrid game, is jumping over the plug-in gas-electric system and going straight to a battery powered, all-electric vehicle which it says it will launch in the U.S. next year. It's a plug-in, although not a hybrid, and Nissan hasn't disclosed its design nor a price. The company also says now that it is likely to develop a plug-in hybrid to follow its EV.
Kramer, founder of the California Cars Initiative, said in a posting on his CalCars blog that he takes Obama's remarks as a signal that the administration intends to continue backing plug-in hybrid technology even after its automotive task force recently commented that the Volt is going to be too expensive (we're guesstimating $40,000-45,000 before a $7,500 federal tax credit) to be a commercial success in its first years on the market.
We, too, think that's the case and are delighted that the administration hasn't given up on Obama's campaign pledge to work to put a million plug-ins on the road by 2015.
But we wish, after all the bashing the U.S. auto industry gets - often with good cause - that GM and Ford would have gotten a pat on the back from the president for their pioneering work on mass-market plug-ins rather than being wrongfully chastised for lagging Japan on this particular technology.
John O'Dell, Senior Editor
LEAVE A COMMENT
To be fair, the distinction is minor. The Japanese have been leaders in bringing hybrid vehicles to market and Detroit has been trailing. While the American companies are trying to leapfrog to a new tech to regain the lead, no one has gotten a mass market plug-in to the public yet.
When it comes to automotive technology Obama has always shown a great deal of ignorance. I don't expect him to know everything about everything, but his advisers should. His recent history with advisers isn't all that good.
gwmort, I'd disagree with your point about Detroit lagging. Both GM (EV1) and Ford (Ranger EV) beat Toyota (Rav4 EV) to the punch with an electric vehicle. Ford developed their own Hybrid technology the same time Toyota did. They've just been running into constant roadblocks with a Toyota owned vendor. Funny that. Also, as the article indicates, Ford and GM a ahead of the game in plug-ins.
Contrary to popular belief, the Japanese are not usually the first to develop something. However, they are often the first to successfully market new tech.
brn is exactly right and John O Dell's point is especially important.
The President Obama Auto Task Force is very weak in talent - an especially scary consideration in view of the decisions they have made and will continue to make. Not only is there no real auto industry expertise, their general business and leadership qualities are subject to concern.
http://money.cnn.com/2009/04/23/news/economy/rattner.fortune/index.htm?postversion=2009042309
excerpts -
Rattner left behind a complicated situation at Quadrangle Group, a New York-based private equity firm that Rattner co-founded, thanks to less than stellar returns and some high-profile investment flops
Only one (not Rattner) of the key four founders men had actual experience making private equity investments.
Rattner's efforts to raise capital for a March 2005 fund have landed him in a recent SEC complaint about a "pay-to-play" scandal in New York State.
Rattner's connection to two former Quadrangle partners, Michael Weinstock and Andrew Herenstein. Weinstock and Herenstein had led Quadrangle's distressed investing team with great success before leaving last year to start their own firm called Monarch Alternative Capital LP., which has some $3 billion under management.
Presently, Monarch has ongoing financial dealings with several companies that Rattner may be overseeing as Car Czar. Most prominent among these investments is a debtor-in-possession loan facility provided to Delphi, the large auto-parts manufacturer. What is unclear is whether Rattner has any ongoing financial relationship with Monarch.
ADD A COMMENT