Oil Prices Inch Up to $62.87

Oil prices rose Friday after falling more than $1 in the previous session as shipments returned to normal in the U.S. Gulf Coast region.

Still, signs of an economic slowdown in the United States and forecasts of continued mild temperatures for the U.S. Northeast put a relatively low ceiling on prices.
Crude Oil rose 21 cents to $62.87 a barrel. The contract on Thursday fell US$1.06 to settle at US$62.66 a barrel.

Brent crude was fetching US$62.80, up 34 cents.

Shipping operations along the Gulf of Mexico Coast returned to normal after more than a week of disruptions due to dense fog. The delivery problem helped to create a big draw down in last week's oil stocks.

Oil prices could remain under pressure after the National Weather Service forecast Thursday that temperatures in the Northeast - an area of high demand for heating fuel and gasoline - will remain above normal through the first days of January.

Oil Prices Fall

Oil prices fell Thursday after U.S. weekly petroleum supply data showed an increase in inventories of gasoline and distillate fuels, including heating oil.
Crude oil supplies fell more than expected. Continued mild weather in America also contributed to prices falling as did the dissipation of fog in the Gulf Coast region that had hampered shipments.

The market also appeared to have factored in continued violence in Nigeria, where Total SA officials said about a dozen gunmen attacked a oil pumping station early Thursday, killing three police guards and shutting down the facility. Meanwhile, Royal Dutch Shell PLC began evacuating all family members of foreign workers as a precaution.

Light, sweet crude for February delivery fell 35 cents to $63.37 a barrel. February Brent crude at London's ICE Futures exchange slipped 36 cents to $62.87 a barrel.

The Nymex crude contract had risen 26 cents Wednesday to settle at $63.72 a barrel, a three-month closing high, after the U.S. Department of Energy said that crude inventories plunged by 6.3 million barrels last week from the previous week.

The decline was much greater than analysts' expectations of a drop between 1.8 million barrels and 2 million barrels.

However, there were expectations that stocks will rebound once fog lifts in the U.S. Gulf Coast region and shipping there returns to normal.

Since Dec. 11, the Gulf Coast region has been engulfed in dense fog, which has significantly disrupted shipments in and out of the ports, according to the Port of Houston Authority. The fog, however, appeared to be moving out Thursday.

Meanwhile, unleaded gas inventories posted an increase last week, rising by 1 million barrels but still lower than average.

Oil Steady Over $63

Oil prices held above $63 on Wednesday ahead of data expected to show a fall in U.S. crude stocks, adding to perception that high inventory levels that hit prices in the third quarter have been reversed.

Delays to U.S. oil imports due to dense fog along the Gulf of Mexico coast forced refiners to draw on inventories last week. The fog disruptions exacerbated an overall tightening inventory picture.

Tempering gains, mild weather was expected to last in most of the United States until at least early January, continuing a warm spell that has cut into heating demand.

Oil Prices Rise, Led Higher By Gasoline

Oil prices rose above $63 a barrel, led higher by gasoline and on a recent decision by the Organization of Petroleum Exporting Countries (OPEC) to cut output early next year.

Crude had less of a fall than heating oil, continuing to trade between $60 and $64 a barrel, a range it has been stuck in since the end of November.

Oil prices down, $62.21 a barrel

Oil prices retreated from highs reached last week due to balmy weather, but stayed above $62 a barrel as blasts tore through two oil-company facilities in southern Nigeria.

Prices had risen steadily last week on renewed supply concerns as U.S. inventories fell and after the Organization of Petroleum Exporting Countries (OPEC) decided to cut output in February.

But mild weather in the continental U.S. and forecasts calling for more of it through the remainder of December weighed heavily on heating oil and natural gas futures, dragging crude-oil futures lower, too.

The decline was moderated by events in Nigeria, where the militant group the Movement for the Emancipation of the Niger Delta claimed responsibility for the blasts, warning before the explosions that it had planted three car bombs in the region of creeks and swamps where most of Nigeria's petroleum is pumped.

Two separate private security contractors, speaking on condition of anonymity citing prohibitions on speaking to reporters, said a blast hit an Agip residential compound in Port Harcourt and Shell oil reported an explosion at company facilities in the city where many foreign oil workers live.

Nigeria is the world's 12th largest oil producer and the fifth-largest supplier to the United States.

Some analysts have suggested the post-OPEC announcement surge could be the impetus that brings oil prices back above $70 a barrel. In mid-July, crude surpassed $78 a barrel, but then dropped back. The contract has been trading between $58 and $64 a barrel since early October.

Global crude oil inventories are still abundant, but many energy traders see any potential decline in supplies as a reason to bid up prices — especially against the backdrop of resilient consumer demand.

OPEC pledged to cut production in February by half a million barrels a day. By delaying action until 2007, OPEC left itself a window to decide against a cut, should demand spike higher due to a colder-than-expected winter or stronger-than-expected economy.

In its official statement, the cartel said it expects non-OPEC supplies to grow by 1.8 million barrels a day in 2007, the biggest one-year jump since 1984, and about 500,000 barrels per day more than anticipated global demand growth of 1.3 million barrels.

OPEC's decision followed the U.S. government's weekly report on Wednesday, which showed that inventories of crude oil, heating oil and gasoline fell last week. Crude oil inventories remain well above last year's level, but heating oil and gasoline inventories are now lower than where they were a year ago.

Petro-Canada Expects Higher Production

Petro Canada is raising production next year 2007 and boosting their dividends but moving in opposite directions on their capital spending plans.

Petro-Canada said late Thursday it plans to grow production 15 % next year 2007 and will raise capital spending by 15 % to $4.1 billion as the company increases its quarterly dividend by nearly a 3rd.

At Petro-Canada, the company expects to boost oil and gas production significantly in 2007 to about 420,000 barrels of oil equivalent output a day from 390,000 barrels now.

Opec to Cut Output

The Organisation of the Petroleum Exporting Countries (OPEC) moved to reassert its power over oil prices by agreeing to cut production early next year (February 2007) in spite of rising concerns over tightening world crude markets.

Ottawa and Gatineau Police Investigate Tree Stabbings

Ottawa City and Gatineau police are investigating tree separate stabbing incidents that happened overnight and last week.

Just before 10 p.m. yesterday, police were called to an area near Bayshore Mall where a 19-year-old man had been stabbed. He was taken to hospital with non-life-threatening injuries.

Then, at abut 1 a.m., police were called to a parking lot on Merivale Rd., south of Hunt Club Rd., where a 16-year-old man was found to have been stabbed. He was also taken to hospital with non-life-threatening injuries.

Before, police found evidence in a creek in Gatineau, QC, they believe is linked to the attack on a woman found naked, bleeding and barely conscious in Gatineau Park last Sunday.

Kelly Morrisseau, the 27-year-old mother of three children who was pregnant with a fourth, died in hospital shortly after she was found by a man walking his dog early Sunday morning.

Autopsy results showed she was stabbed more than a dozen times and died of massive blood loss.

Gatineau police Lieut. Jean-Paul LeMay said investigators seized evidence from the creek near Rue Des Frênes, close to the southwest corner of Gatineau Park.

A canine unit and police divers were sent to search the creek after police received a tip from the public and a mobile command post was set up near the park.

Imperial Oil Charged $469K for Fouling

Imperial Oil has received a hefty fine after 62,000 litres of fuel leaked from a gas station near Kingston, Ont., and contaminated residential wells three years ago.

An Ontario judge ruled that the company must pay $375,000, along with a victim surcharge of about $94,000, after pleading guilty to permitting the discharge of fuel into the natural environment.

The gas, which leaked from one of the company's Esso stations along Highway 401, contaminated the groundwater used by eight homes near Odessa, Ont., about 25 kilometres west of Kingston.

The company has been responsible for supplying the affected residents with drinking water and cleaning up the contamination.

Ottawa May Lose Electric Light Rail

Mayor Larry O'Brien says he is launching a six-month review of mass transit in Ottawa, and electric light rail may not be part of the city's future at all.

O'Brien voted Thursday — along with 12 city councillors — to kill both possible proposals for a north-south light rail line running from Barrhaven toward downtown Ottawa.

That means the city forgoes for now $400 million in federal and provincial funding originally committed to the project, and must also back out of a contract with the companies slated to design, build and maintain the rail line.

But in an interview with CBC after the vote, O'Brien said the decision was the right one for the city.

He added that voters spoke out against the light rail project when they chose a mayor and council opposed to it.

"Forty-seven per cent of the people said that they wanted a different definition of mass transit and we gave that to them today," he said, "and we'll take six months now to identify what that really means."

O'Brien insisted the federal and provincial funding remains on the table for Ottawa's transportation projects, but as of Friday morning, that had not been verified by the higher governments themselves.
O'Brien unfazed by threat of legal action

Nor was O'Brien worried about legal action from Siemens-PCL/Dufferin, whose $778.2-million light rail contract with the city was approved by the previous city council in July. The group sent a letter Wednesday informing the city that it "will pursue any and all legal actions" if the city scrapped the deal. Company officials refused to comment after council's decision was announced.

But city staff earlier in the day estimated that the companies' claim would likely be $250 million to $300 million.

When asked about the threat, O'Brien responded, "Anyone can sue anyone in today's world."

He added that most lawsuits are settled out of court for a fraction of the amount in the original claim, and it's in the Siemens consortium's best interests to keep a good working relationship with the city "because we have a big need for mass transit."

City staff say it will take at least four years to hammer out another major transit plan.
Decision 'so colossally stupid': councillor

O'Brien's outlook was in sharp contrast to that of city councillors Diane Deans (Ward 10, Gloucester-Southgate) and Clive Doucet (Ward 17, Capital), two of the 11 councillors who voted to go ahead with the line and ended up on the losing side of the decision.

Doucet said the outcome was "devastating."

"It's nine years for me of work," he said. "Our new vision for Ottawa has just gone down the drain. And it's so colossally stupid it's hard to put into words."

Barrhaven residents disappointed

Meanwhile, many residents of Barrhaven in Ottawa's south end were similarly disappointed with the news.

Kathleen Currie, who works for the Canadian Forces, said the rail line would have cut her commute time.

"I am very disappointed because I work downtown in Ottawa and I was looking forward to using the light rail," she said.

Michelle Hope, who works in Barrhaven, said right now it can take more than an hour to take the bus downtown from the expanding community.

"There's so many people in Barrhaven and it's growing every day so we need something like that [light rail] so people can get around."

But even some Barrhaven residents, such as Anne Deschamps, thought council's decision was the right one.

"To spend that amount of money on north-south seems like a lot to me," said Deschamps, who says she rarely leaves Barrhaven and wouldn't have used the line.

"I think east-west [transit] needs a lot more consideration than it's been given."

Chunk of Concrete Fell From the Rail Bridge Onto an SUV in Ottawa

CN officials said the Riverside Dr. rail bridge is "structurally sound," and measures have been taken to prevent further damage.

“We removed some of the loose concrete,” said CN spokesman Mark Hallman. “We’ve looked at potentially installing wire mesh to maintain the structure.”

CN officials conducted an emergency inspection of the bridge on Monday after a chunk of concrete fell from the bridge onto an SUV. The 44-year-old driver was not injured. Hallman said the inspection yielded no sign of structural damage.

VIA Rail is the sole user of the tracks, running 12 passenger trains along the line every day on the Ottawa-Toronto corridor. The main terminal of the Ottawa train station lies just east of the Riverside bridge. Spokesman Malcolm Andrews said VIA has stayed in close contact with its counterparts at CN.

“We’ve received assurances that the line is maintained and that it is safe,” said Andrews.

There are no plans to examine other structures in the capital region beyond the regularly scheduled visual inspections conducted on all CN Rail bridges.

Concerned motorists alerted the Sun today of other potentially hazardous train overpasses in the city, including badly weathered structures near the intersection of Prince of Wales and Colonnade Rd., and another spanning Merivale Rd.

Meanwhile, ownership of the bridge remains unresolved, as do questions of legal liability for damages or injury.

“We’re still going through the debate, going through documents to establish ownership of the bridge, as that has not yet been determined,” said Hallman.

According to the NCC, the overpasses were constructed in the 1960s and ownership of the property was transferred to CN/CP Rail 1972.

City spokesman Eric Collard said the municipality’s role is limited to removal of the debris and aiding with traffic management.

“The city is responsible for the roads below, but maintenance (of the bridge) falls to CN,” said Collard. Representatives for the NCC agreed, insisting that responsibility for inspection and maintenance is strictly CN’s.

Mercury Mariner Hybrid

With the Escape Hybrid under its belt, Ford released its second hybrid, the Mercury Mariner SUV Hybrid, in July 2005.

The Mariner, a stylized version of the Ford Escape, made news for two reasons. The vehicle was sold almost exclusively online, and the introduction of the Mariner was applauded by the Sierra Club. The San Francisco-based organization, which has been critical of Ford’s dismal overall record on fuel efficiency, told its members about the vehicle and offered test drives at its annual summit. Other environmental organizations remain critical of Ford, and point to the fact that only 2,000 Mariner Hybrids are produced every year.

Toyota sold nearly 150,000 hybrids in North America in 2006. Ford tallied less than 16,000 hybrid sales.

Over the years, environmentalists have accused Ford of "greenwashing" or throwing a lot of marketing dollars at its relatively lackluster hybrid program. Why did the Sierra Club would use the introduction of the Mariner Hybrid as the opportunity to change their position? In an exclusive interview , Carl Pope, executive director of the Sierra Club, said, "We actually think it is our job to try to encourage automotive innovation. The public perception is that we are all 'stick,' always beating up on the auto industry. Actually, we have a robust history of trying to offer financial carrots to innovate, all of which have been rebuffed."

The encouragement from the Sierra Club did not prove successful in the long run. At the time of the release of the Mariner Hybrid, Ford chief Bill Ford said, “We have our own patented hybrid technology and proprietary drive system and electronic controls, and by the time many of our competitors offer a hybrid, we’ll be on to the next generation.” A year later, other car makers are entering the hybrid fray while Ford is backing away from its hybrid goals.

An Undiscovered Gem
It's unfortunate that Ford hasn't fully backed its hybrids. The Escape and Mariner are arguably the most robust hybrid gas-electric system available today. The Mariner's shape is square and muscular, but with stylized flourishes like taillight accent grilles and edged instrument panels. It's technically a crossover but feels upright and solid, like a real SUV. In our test drive of the four-wheel drive version, the vehicle stood its ground on tight corners at high speeds.

The right instrumentation is critical to the hybrid experience, because the fun of driving a hybrid is in using all the tools provided to maximize mileage. In our view, Ford's hybrid system beat Toyota's hands-down in its ability to stay in all-electric mode for extended periods. The Mariner Hybrid, like the Escape Hybrid, offers an expanded opportunity to use the gas pedal, brakes, and gears to juggle energy into and out of the rechargeable batteries.

Certainly, few Escape/Mariner hybrid owners take the time to learn all the tricks, but even the most absent-minded driver is constantly reminded that they are piloting some seriously geeky cool technology. The Mariner, with its creature comforts and relatively modest price, seems like the great American hybrid hit that never was. Do you think that Ford is only producing 2,000 Mariner Hybrids a year might have something to do with the vehicle's lack of notoriety? Hmm.

The Mariner Hybrid could be compared to one of those out-of-the way restaurants that only has a few tables, little ambiance, no marketing—but great food. When you discover one of these hidden gems, meals are even more enjoyable because you feel like you lucked out. Every meal there should be savored. More often than not, those sweet discoveries quickly go out of business, closing doors before finding a clientele that would have enjoyed what it had to offer.

G.M. Hybrid Pickup Trucks

The Low-Cost Approach to Hybrids
What’s the most common argument against hybrids? Hybrid vehicles cost more than conventional vehicles—somewhere between three and thousand bucks more—and you’ll never “make back” that money through savings at the pumps.

If you accept that argument (and not everybody does), then what would happen if you produced a less expensive hybrid, which produced at least some of the fuel-saving benefits—and you placed that system in the largest most fuel-consuming vehicles? Wouldn’t that tell a more compelling cost-benefit story? This is what General Motors has in mind with their pickup trucks.

The Chevrolet Silverado Hybrid and GMC Sierra Hybrid are now available in all 50 states. These hybrid pick-up trucks are designed to:

• Cost only $1,500 more than their conventional counterparts
• Produce a 10 percent improvement in fuel economy
• Sacrifice not one iota of power

Except for fuel economy, the specs for the hybrid and non-hybrid Silverado/Sierra are identical: V8 engine, 295 horsepower, and a towing capacity of up to 7,700 pounds.

Pick-up truck drivers can easily use 1,000 gallons of fuel per year. At three dollars-per-gallon, the savings from the hybrid system would add up to $300 per year. With potential tax incentives of about $250, strong resale value, and gas prices heading north from three bucks, the payback equation begins to make sense.

Never mind that the 10 percent jump may only take the real-world mpg from about 16 to 18. “This is the part where the market hasn’t quite adjusted. They think hybrids should get 50 miles per gallon,” said Steve Poulos, G.M.’s chief engineer of belt alternator starter hybrid system and flywheel alternator starter hybrid systems. “The reality is you have to look by class of vehicle. We’re talking about full size trucks. Truck drivers tend to drive fairly high mileage. A lot of times, they drive loaded. They consume a lot of fuel. You go for a fill-up on one of these trucks and you can spend upwards of 50 bucks on a regular basis, if not closer to $100.”

The End of Idle
The 2006 G.M. pickup trucks have what the auto company calls a "flywheel alternator starter hybrid system (FAS)." When the trucks are slowing down or come to a stop, the fuel is shut off. Instead of a conventional starter motor and alternator, the hybrid truck features a compact electric motor integrated between the engine and transmission. The electric motor provides fast, quiet starting power and the ability to generate up to 14,000 watts of continuous electric power. The electricity generated by the system can be stored temporarily in the 42-volt battery pack and used later to enable auto-starts. The system does not power the truck forward at lower speeds, or provide any extra oomph for passing—the way Honda’s power assist system works or the way future G.M. hybrids will work.

The Christian Science Monitor says, “The Sierra shows that no new car should idle anymore.” If these trucks prove that every car can and should stop spewing pollution when sitting in a traffic jam, it would serve a noble purpose. Furthermore, the flywheel alternator system used in the G.M. trucks is a calibrated to turn off the engine more often and more consistently than idle-stop systems utilized in most of the smaller hybrids, suggesting that all hybrid-makers might have room to be more aggressive in their idle-stop functions.

But That’s Not All. Act Now and Get a Free Clean-Burning Generator.
While the 10 percent gain in fuel economy is the main selling point, the Silverado and Sierra hybrids have a bonus feature: they act as power generators, with two conventional, three-prong plug-ins under the rear seat, and two more in the back of the bed. The four 120-volt, 20 amp electrical auxiliary power outlets can provide power to electric saws, grinders, hairdryers or laptops. The juice is activated while the truck is running. And with the shifter in PARK, the driver can choose to turn the truck into a stationary generator and walk away with the keys in his pocket. The power supply circuits are protected by a ground fault detection system so overloads and short circuits can be avoided. According to G.M., the new hybrid pickups could maintain power for up to 32 hours non-stop before needing to fill the tank. (They shut off before the gas tank is completely drained, so drivers won’t be stranded.)

“You’re getting a 2,400 watt generator built into the truck, covered by the powertrain warranty,” said Poulos. “It’s clean, because it’s using the engine to drive it, and it’s going through the catalyst system. From an emissions standpoint, it’s miles ahead of any generator you’re going to find out there.”

Silverado or Sierra?
As for the differences between the Silverado and Sierra: Popular Mechanics says, "G.M. would have you think these trucks aren't twins. But the fact is, the only difference between these trucks is front sheet metal and badging. Pick the styling you like better, or play the GMC and Chevy dealers against each other."

Lessons For Future G.M. Hybrids
The flywheel alternator starter hybrid pickups are just a stop along the way for General Motors. The Saturn VUE Hybrid, available in 2006, and the Chevy Malibu, available in 2007, will use G.M.’s belt alternator starter system. Also, in 2007, GM will launch a two-mode full hybrid system in its full-size SUVs, the Chevrolet Tahoe and GMC Yukon.

At that point, G.M. will have offered the FAS for four model years (in a slow evolving rollout beginning in 2004 with fleets, in 2005 to retail outlets in six-states only, and with the 2006 model to all 50 states.) Poulos said, “It’s been an incredible learning experience. It’s been the way that we’ve developed our engineering structure inside the company, to learn how to handle a hybrid powertrain. If you look at what Toyota did, they started small and local in Japan. They learned, and went to another generation with similar products. They upgraded their system. We’re doing a similar thing in full-size trucks.”

Toyota Highlander Hybrid

Henny Youngman, the king of the one-liners, had a routine in which a man walks up to an acquaintance and asks, "How's your wife?" Whereupon the other replies, "Compared to what?" (Hit the snare drum.)

The same reply might be given to the question, “How’s the 2006 Toyota Highlander Hybrid?” The HH is the seventh hybrid to hit the market, and the third hybrid SUV. So, it’s difficult to weigh the pros and cons of the Highlander Hybrid without comparing it to other hybrids, or to the non-hybrid Highlander.

Compared to the Toyota Prius - Approx. $10,000 more for the Highlander Hybrid
It’s not fair to compare a mid-size coupe to a mid-size SUV, but let’s do it anyhow, as a way to establish a point of reference for just how far the hybrid options have come. The first point of comparison between the Highlander and Prius is one of scale. The Prius uses a modest 1.5-liter, four-cylinder, 106-horsepower gas engine versus the Highlander Hybrid’s beefy 3.3-liter six-cylinder 208-horsepower gas engine. When combined with the power of the electric motors, the total power of the Highlander is 268, compared to the Prius’s 110 hp.

Motor Trend calls the Highlander Hybrid “a bullet.” But for some hybrid shoppers, the pride of the Prius’s 60-mpg city rating far outweighs the thrill of the moving from zero-to-sixty in less than eight seconds in the Highlander Hybrid.

A Prius looks and feels like a hybrid. When you drive one, you scream, “I’m a geeky enviro-weenie” from a mile away. The Prius’s geekiness is carried inside, with its use of a funny-looking key (Toyota calls it a “fob”) and a “start” button. In a Highlander Hybrid, nobody will really know that you’re driving a hybrid. The Highlander starts up with a regular old key.

The speed and normal-ness of the Highlander should take its appeal beyond the most ardent supporters of hybrid technology. If you must have an SUV, you must.

Compared to the Conventional Highlander - Approx. $5,000 more for the Highlander Hybrid
Depending on your selection of a two-wheel drive or four-wheel drive Highlander, and your selection of the base model or the limited edition, you are likely to spend somewhere between $3,000 and $5,000 more for the hybrid version.

* Base 2wd - $33,030
* Base 4wd - $34,430
* Limited 2wd - $37,890
* Limited 4wd - $39,290

If you want to get to an exact price difference, it’s important to compare apples-to-apples. Considering how Toyota packages different add-on features and options, the comparison is not always obvious, and the hybrid premium is frequently exaggerated in auto reviews.

Why spend the extra dough? In a nutshell, the hybrid version delivers 30 horsepower over the conventional Highlander, about ten more miles to the gallon, and reduced tailpipe emissions. (Visit our Gas Mileage Impact Calculator to see how much money, gas, and pollution you might save.)

In the all-wheel drive version, you’ll also get an enhanced safety system, which Toyota calls “4WD-i.” In the system, Toyota adds a rear-mounted third motor-generator that can apply extra power and traction when the system detects that the wheels are slipping. For safety freaks, the 4WD-i might be worth the price of admission.

The only difference in exterior looks between the conventional and hybrid Highlanders is a revised front grille and bumper, rear LED taillights (which use less power, have a longer life, and illuminate more quickly), extra chrome trim, 17-inch alloy wheels, and a tiny hybrid badge in rear.

Compared to the Lexus Rx400h - Approx. $10,000 less for the Highlander Hybrid
The Toyota Highlander shares the most in common with the Lexus Rx400h. The two vehicles feature the same hybrid system, same performance, same horsepower, same fuel economy, and were created by the same chief engineer.

The Highlander Hybrid allows shoppers to hedge on cost by opting for cloth upholstery, a CD player without the changer, and no sunroof. You can purchase additional luxury features from an a la carte menu, or pick them up all at once in the limited edition. With the 2wd Highlander, available in base and limited packages, you receive the added benefit of a few more miles to the gallon.

The Rx400h is only offered in all-wheel drive, and only with the full array of luxury features and finishes—but lacks a third-row seating option.

If your primary interest is the powerful hybrid system and the additional passenger space, then the extra $10,000 or more seems hardly worth the additional Lexus styling. How much are you willing to pay for "brushed aluminum accents?" Some image-conscious buyers want Lexus bragging rights, and might think of the Highlander as too plain.

Compared to the Ford Escape Hybrid - Approx. $5,000 more for the Highlander Hybrid
The Ford Escape Hybrid also offers two-wheel drive and four-wheel drive versions. The Escape’s only advantage over the Highlander is a five percent increase in fuel economy. Other than that, the extra money for the Highlander seems like a bargain, especially considering Toyota’s leadership role in hybrid technology. Also consider:

* The Escape Hybrid offers 155 hp, compared to the Highlander’s 268
* The Highlander can tow up to 3,500 pounds, while the Escape is limited to 1,000 pounds
* And, once again, the Highlander seats seven

One caveat about the third-row seating: don’t expect to put Uncle Harry back there. The third-row seat will only comfortably seat small adults and children. And when the third-row is put into service, you’ll lose about 30 cubic feet of cargo space. It’s either seven humans (some of them small) and a couple of duffel bags, or keep the third-row seat down to allow for all your travel gear.

With the introduction of the Highlander Hybrid, Toyota has once again blown past its competitors, and leaves Ford—which for some time held bragging rights for offering the only hybrid SUV—in the dust. Perhaps this is why the Detroit News said the Highlander Hybrid is “more than just a smart buy for environmentally conscious drivers; it may also help raise the bar for the whole industry.” That's a bit overstated, considering that none of the hybrid SUVs have proved to be a hit in their segment, the way that the Prius has been a smash for the sedan category. Nonetheless, the Highlander is the top-selling SUV hybrid, and is likely to remain so for quite a while.

Lexus RX 400h Hybrid

Math, Lexus-style: Luxury, AWD, and 30 MPG Equal $48K
When the first Lexus RX 400h hybrid SUVs arrived in the United States in April 2005, they rattled the automotive industry the same way Toyota’s Prius did four years earler.

Toyota pre-sold a staggering 12,000 Lexus RX 400h hybrid SUVs before a single one hit American pavement. And some of the most respected automotive journalists in the country heaped plenty of early praise on the first luxury hybrid.

Dan Neil wrote in the Los Angeles Times that the RX 400h “feels like a masterpiece of both engineering and accounting.” It’s faster to 60 mph than the conventional Lexus RX 330, yet gets better gas mileage because of the thrust of not one, not two, but three electric motors.

(It doesn’t hurt that Neil lobs a barb or two at General Motors’ Bob Lutz while explaining why/how he thinks Toyota can afford its super-aggressive hybrid manufacturing roadmap.)

Edmunds.com was equally laudatory, noting that the RX 400h is certified as a Super Ultra Low Emissions Vehicle (SULEV) and accelerates as quickly to 60 mph as a Mercedes-Benz ML500 SUV, which demands a gallon of unleaded premium for every 14 miles trod in the city.

Then, the tide started to turn. In a July 2005 piece entitled "“The Hybrid Emperor’s New Clothes,” the New York Times cast doubt on the strategy of using hybrid technology to boost performance. Why? Because their tests of the RX 400h and Highlander Hybrid produced mileage nearly identical to the conventional Lexus and Toyota SUVs. Despite protest from a loyal cadre of RX 400h owners who accused the Times drivers of not knowing how to drive a hybrid for maximum mileage, the story—and others like it—made a valid point: Just because a vehicle is a hybrid doesn’t mean that it gets great mileage.

Luxury and Speed
So why do a couple of thousand car shoppers happily plunk down 50 large for the RX 400h every month? Because, essentially, it has everything a luxury SUV buyer seeks—rugged exterior, leather-swaddled creature-comfort interior— in a super-green package that promises 28 mph on the highway and 30 mpg around town. And with a 0-to-60 performance in less than 8 seconds, it appeals to those who have the occasional urge to merge—on the freeway—with un-hybrid-like alacrity.

Consider some of its selling points:

• All-wheel-drive featuring a rear-drive electric motor, for quicker acceleration and safer handling.
• The auto industry’s first Vehicle Dynamic Integrated Management (VDIM) system, which monitors a variety of sensors to anticipate and correct a vehicle slid or skid—by getting “panic assist brakes” ready for maximum stopping effort, while modulating the throttle. During these situations, the VDIM also will remove the slack in the front seat belts.
• Extra safety equipment such as side curtain airbags and knee airbags to compliment the top-rated crash safety scores the RX 330 already enjoys.
• An exceptionally smooth and quiet ride, like you find in today’s current hybrids.
• The same craftsmanship and attention to details found in the RX330, plus brushed aluminum accents that convey a high-tech look.
• In place of a tachometer, the RX 400h will have an illuminated, 18-centimeter touch panel screen that displays the level of power generated by the gas engine or electric motor. The screen is similar to the one found in the 2004 Prius.

"The Pleasures of Hybrid Life" at a Cost
Denny Clements, Lexus group vice president and general manager, sums it up, saying, “the RX 400h exceeds the expectations of luxury vehicle buyers and establishes a premium market for performance-oriented, fuel efficient gas-electric hybrids.” The fuel economy is a far cry from the upper 40s and 50s of the compact sedan hybrids, but the Lexus SUV hybrid gives an opportunity for a new segment of drivers to the pleasures of hybrid life. Will this segment of driver ever give up a little size, speed, and luxury in exchange for more miles-per-gallon on their next car? Perhaps not. But at least, the RX 400h starts the process of eroding the myth that hybrids require sacrifice. In fact, the Lexus SUV hybrid beats conventional luxury SUVs at their own game of self-indulgence: owners of the RX 400h can give in to their desire for creature comforts and their self-satisfaction of driving a vehicle that burns a little less gas and spits out less pollution. Moreover, it begins to show that "green" is a luxury feature worth paying for.

Ford Escape Hybrid

The Ford Escape hybrid had its day in the limelight, when it debuted in mid-2004 as the first American-made hybrid and the first SUV hybrid.

A SUV that could boast more than 30 mpg was certainly deserving of recognition. Never mind that actual mileage has been running in the mid 20s for many owners, that Ford is only producing 20,000 units, or that the company abandoned its commitment to significantly bump up the fuel economy of its fleet. They were indeed the first to produce a SUV hybrid, and they deserve a pat on the back. And it did win the "Truck of the Year Award" at the 2005 International Auto Show in Detroit.

More than two years later, the SUV hybrid category is starting to get crowded. The Lexus Rx400h and Toyota Highlander Hybrid—essentially the same hybrid system in two different skins—have stolen the Escape’s thunder. The Escape lacks the luxury features of the Rx400h, and lacks the power and seating capacity of the Highlander Hybrid.

The motivations of the earliest Escape drivers, especially the fact that the wait for a Toyota SUV hybrid was too long, are no longer relevant. However, if you can look beyond the razzle dazzle of Toyota's marketing and the Lexus luxury features, and if maximizing MPG is your goal—wasn't that supposed to be the point of hybrids in the first place?—then the Escape Hybrid is certainly worth a test drive. Another often overlooked factor is the ability for the Escape to stay in all-electric mode longer than any other hybrid on the road, including the Toyota Prius. Getting into all-electric "stealth" mode, and staying there for long stretches as you weave silently past all those gas-burning engines, is a very satisfying experience.

Other considerations:

• The price tag is likely to be $5,000 less than a Highlander Hybrid, and $20,000 less than the Lexus SUV.
• The Escape nudges out the other two SUVs in terms of fuel economy.
• The 155 horsepower system, while slower than the 270 hp systems, is plenty enough power for our congested roads.
• The towing capacity rating of 1,000 pounds looks weak compared to the 3,500 pound capacity of the others.

Toyota continues to bury Ford in the marketing arena. The Japanese company started manufacturing the Camry hybrid in Kentucky, thereby removing the Escape's remaining distinction as the only American-made hybrid. Forget about that. Bottom line: The Escape Hybrid is fun to drive, and leads the SUV pack in fuel efficiency.

Chevy Malibu Hybrid

The only specific word out about the Malibu is that it will share the same hybrid system as the Saturn VUE Green Line and the Saturn Aura Green Line. The hybridized Malibu sedan, like the Saturns, is targeted for a 10–15% increase in fuel economy and will focus its hybrid benefits instead on maintaining power and handling--and keeping the price of the electric system, components, and instrumentation as low as possible. Built in Kansas City, the hybrid Malibu will have a four-cylinder, 2.4-liter engine with front-wheel drive and automatic transmission.

The first announcements about a hybrid version of the Malibu came well before the smash success of the Toyota Prius, and rollercoaster gas prices in 2005 and 2006. Back in those days, GM executives offered the idea of a future Malibu hybrid as evidence that they had a hybrid something-or-other in the works. GM's product guru Bob Lutz repeatedly argued that hybrid didn't make economic sense, especially in a sedan. The company emphasized that the real fuel savings would come from using hybrids on the largest gas-guzzling vehicles.

Plans for a Malibu hybrid survived that lukewarm period at GM, and have emerged into a new era of enthusiasm for all kinds of automobile alternatives. GM is apparently racing toward hybrids, fuel cells, flex-fuel, and battery electrics--all at the same time. (And while trying to figure out what to do with their full-size SUVs that are languishing on dealership lots.) From now until late 2007--when GM's two-mode full hybrids are introduced, the only thing tangible result reaching showroom floors will be the mild hybrid technology known as a "belt alternator starter." Critics say that the BAS is a nice improvement in conventional technology, but lowers the bar on what consumers should expect from a hybrid. In other words, it's such a mild flavor of hybrid that it's not really a hybrid in a way that counts: a big jump on fuel economy and cool high-tech instrumentation. Somewhere along the line, GM's marketing folks decided that the BAS fit best with the Saturn brand. The introduction of a Malibu hybrid, a vestige from the down-on-hybrids days, is shoe-horned between the release of the Saturn Green Line VUE and Aura, and the two-mode Yukon and Tahoe.

GM claims that the hybrid Malibu will be at least 10% more fuel-efficient than its purely gas-powered counterpart. That version is rated by the Environmental Protection Agency at 35 miles per gallon on the highway and 24 in the city. Using that math, the hybrid version of the Malibu will buy you another two to three miles per gallon. It's still early for pricing, but with those numbers, maybe Bob Lutz was right after all.

Toyota Camry Hybrid

A Common Sense Hybrid
You'll never get accused of recklessness for buying a Toyota Camry. It's safe, comfortable, dependable, relatively attractive and altogether predictable. And based on the sales numbers—more than 430,000 sold in the United States in 2005—Americans are happy with a reliable and affordable set of wheels for the family. The Camry has been America's top-selling passenger vehicle for eight of the past nine years.


As long as you're being practical, then why not invest a few extra dollars for the Camry with a hybrid drive that offers an EPA rating of 40 miles to the gallon, and gives you around 700 miles between visits to the gas station?

In the Toyota Prius, the hybrid system was a bold move into unknown technology. The hybrid option on the Camry seems like a common sense choice for an era when one storm—meteorological or political—could send gas prices even further past $3.

The Camry is not the first attempt at offering a hybrid in an ultra-popular model. In late 2004, Honda introduced a hybrid version of the Accord—America's second most popular car behind the Camry. Honda fell short on its push for hybrids into the mainstream by using the hybrid technology for performance rather than fuel economy.

In the Accord lineup, the hybrid is the fastest and the priciest. The Camry Hybrid is neither. Those dubious honors go to the fully loaded sporty Camry SE—with a 3.5-liter engine delivering 268 horsepower, a 40 percent jump in acceleration over the 2006 model. The choice between speed and fuel economy is quite clear. Consumers who care about fuel economy can choose between the standard Camry's four-cylinder combined highway/city mpg rating of 28 mpg; the V6's mpg rating of 26; or the hybrid's 40 mpg.

Hybrid Details
The first half of the Camry Hybrid drivetrain is a 147 horsepower version of the standard 2.4-liter four-cylinder gasoline engine. The second half is a 105-kW electric motor and 244-volt battery pack that delivers a peak of 45 hp. The battery pack consists of 34 nickel metal hydride modules, each of which contains six 1.2-volt cells. Run it all through a continuously variable transmission, and it adds up to 192 horsepower, versus the standard Camry's 158 hp. For a point of comparison, the Camry Hybrid moves from 0 – 60 in about 8.9 seconds, nearly a second faster than the Toyota Prius.

The Camry Hybrid is loaded with cool standard features including a tire-pressure monitoring system (very helpful for optimizing fuel economy), halogen headlamps, Bluetooth connectivity, a 440-watt premium audio system (MP3 and WMA compatible, with auxiliary input for iPod), smart keyless entry, push-button starting, and dual climate control. The list of options includes a moonroof, voice-activated navigation system, leather-trimmed interior, and heated seats. The in-dash multi-function trip computer display is standard on the hybrid.

Toyota employs the full regimen of safety features for the Camry Hybrid, from the standard Vehicle Dynamic Integrated Management (VDIM) system, which orchestrates antilock brakes, traction control, stability control, and steering boost—to the Whiplash Injury Lessening (WIL) seat design found in the Prius.

2007 Camry Redesigned
On the outside, the redesigned 2007 Camry trades a conservative image for what Toyota calls "a more stylish, athletic, modern image." That means a pinch of Lexus styling added to the same old Camry: a sleeker shape, two-inch longer wheelbase, fancier instrument panel, and other features like a tilting-telescoping steering wheel. The hybrid gets dressed up a bit more with a matte-chrome grille, blue-tinted headlight reflectors, LED tail lamps, and the hybrid badges.

Toyota earned its reputation for quality by its attention to detail. Expect the same with the engineering and layout of the 2007 Camry. For example, they reduced internal friction and enhanced the Camry engine block's rigidity to improve fuel economy and reduce noise and vibration. In the hybrid version, they added wheel spats and underbelly pans to improve the aerodynamics (down to an impressive 0.27 drag of coefficient.) They also managed to retain the 60/40 rear-seat folding split, which is lost in Honda hybrids to make room for the extra hybrid components.

The 15th Percentile
Toyota set the price for the Camry Hybrid at $25,900. The first set of Camry Hybrids were all produced in Japan. In October, Toyota's began producing approximately 4,000 Camry Hybrids per month in its Georgetown, KY, plant, where it currently turns out Camrys at the rate of 30,000 per month.
Toyota plans to sell 60,000 Camry Hybrids, or 15 percent of all Camry sales. Naysayers believe gas-electric hybrids will reach the limit of their market potential when the East Coast and West Coast fringe have bought their Priuses. The Camry Hybrid will test that premise like never before. Are 15 percent of mainstream American buyers willing to invest in a technology that will help the United States wean itself off oil, reduce our environmental impact, and protect us against price shocks at the pumps? Are you in the 15th percentile?

Nissan Altima Hybrid

For some time, Nissan Chief Executive Carlos Ghosn has maintained that hybrids are "not a good business story yet because the value is lower than their costs." That's why Nissan broke ranks from most automakers by not developing a hybrid program of its own. In September 2007, Japanese sources revealed that Nissan is reversing that direction, and will release a compact hybrid model--using its own technology--by 2010. That leaves a number of years for Nissan to decide exactly what it has in mind, but for the time being, the company is on track for a release of its first hybrid, the Nissan Altima in early 2007.

According to Ghosn, the introduction of a hybrid Altima is intended to help Nissan comply with fuel economy and emissions standards in states like California, not because he expects the hybrid model to make money or to fulfill any kind of corporate environmental goals. In fact, when the Altima first rolls out, it will be sold only in the eight states certified to meet California emissions requirements: California, New York, Massachusetts, Connecticut, Vermont, Rhode Island, Maine and New Jersey. These states also are among the strongest markets for hybrid vehicles.

To produce the Altima, Nissan is buying Toyota’s hybrid technology rather than developing its own. The second largest Japanese automaker will base the hybrid offering on its best-selling Altima, giving buyers another powertrain option on its popular model rather than creating an innovative new model. The September 2006 report indicated that Nissan will break ties with Toyota.

The redesigned 2007 Altima goes on sale in the fall of 2006, with the hybrid following in early 2007. Plans for the creation of the Altima Hybrid date back to 2002, when Nissan committed to producing 100,000 hybrid vehicles over five years using Toyota's transaxle, inverter, battery and control until with an engine developed by Nissan. The company will spend over $10 million to ready its Smyrna, Tennessee plan for the hybrid Altima assembly.

Instead of focusing primarily on fuel economy and reduced emissions, Nissan will try to match the performance and acceleration of non-hybrid models. “Most hybrids focus on smaller engines with environmental benefits like emitting cleaner exhaust fumes but Nissan’s hybrid will also have the same driver performance and speed as any Altima,” said Kyle Bazemore, Nissan communications senior manager.

The restrained rollout of the Altima Hybrid reflects Ghosn's skepticism over the viability of the hybrid as a solution. However, Nissan has stated that it has the capacity to manufacture up to 50,000 hybrids in the U.S.--much more than the expected demand in the eight states.

Lexus GS 450h Hybrid

Gearheads, take note: Formula 1 racing is talking quite seriously about permitting gas-electric hybrid technology in F1 competitions as early as the 2008 season. Picture for a moment a 20,000-rpm, 750-horsepower machine braking into a chicane...and zipping onto a straightaway on battery power.

Automobile shoppers can get a taste of the F1 gas-hybrid future today—by driving the new Lexus GS 450h sedan.

While it’ll never compare with Formula 1 cars for speed, this gas-electric hybrid provides race-car-like acceleration and luxurious appointments in the same package.

The Hermes of Hybrids
Slip behind the wheel of this $55,000 machine, and “hybrid” will be the first—and last—thoughts that come to mind. First you’ll note, with geeky chic, that the car has not a tachometer but a “kW” gauge for—that’s right—kilowatts. A display near the 160 mph speedometer shows a battery in various stages of charge. The center console’s screen will toggle to hybrid mode and display your energy consumption.

And consume you will. Ever so gently depress the accelerator and the GS will stalk silently to 15 mph on full electric mode. But mash the go pedal, and five Mississippi’s later you’re passing 60 mph—a fraction of this car’s top speed—and looking for gobs of open pavement ahead for decidedly un-environmental antics.

See, the GS 450h is perhaps the purest expression of power harnessed for the “no compromises” side of the hybrid ledger. Toyota mated a high-output, electric motor-generator rated at 197 horsepower with a 297-horsepower, 24-valve, 3.5-liter gasoline engine to yield the Hermes of hybrids, a 339-horsepower brute (don’t ask; Toyota wizardry at work here) that motivates this 4,100-pound luxury sedan.

Join the Club
There are too many superlatives to mention. This is the fastest mass-produced hybrid car on the planet. It’s the first purely rear-wheel-drive hybrid sedan. And yet it has superlatives that transcend hybrids. This car’s engine and continuously variable transmission (with modes for sport, snow, and normal), covered with Lexus’s typically decadent cockpit of leather and (Mark) Levinson, offers enough performance and prestige to make any upwardly mobile executive consider joining the hybrid club. The raw numbers—0-to-60 in 5.2 seconds, 60-to-zero braking in 123 feet, top speed of 131 mph, seating for five, 37.5 decibels at idle—add up to “luxury vehicle to be reckoned with,” as do expected luxury features such as satellite radio, voice-activated navigation system, Bluetooth technology, backup camera, leather...the list goes on.

The question, then, is will hybrid owners let this beast into the club? Its EPA highway rating is 28 mpg; however, several auto publications reported trip mileage more in line with 22 mpg— bordering on ghastly in the hybrid fraternity, but downright gaudy to buyers who expect this level of performance to consume a gallon of premium for every 12 to 15 miles of pleasure. Few, if any, high-horsepower luxury sedans in the world can boast the combination of speed and quasi-economy as the GS 450h. Fewer still boast, as this Lexus does, of being rated a Super Ultra-Low Emissions Vehicle (SULEV) in California, which certifies a car’s emissions are 90 percent cleaner than the average new car offered in California in 2004.

The Lexus GS 450h may be rejected as self-indulgent by the Prius crowd, but 450h drivers can turn those tables by flaunting its SULEV status and 28-mpg highway rating to their luxury-sportcar brethren.

Hyundai Accent Hybrid

Hyundai Goes Hybrid Long shunning the technology in favor of fuel cells, the Korean carmaker has made a U-turn, thanks in part to subsidies from Seoul.

Can Hyundai Motor catch up in the hybrid race? In the past five years, the Korean company has emerged as the fastest growing of the major auto makers by channeling its energies into closing the gap with industry leaders, particularly the Japanese. Now, with gasoline prices staying in the stratosphere, Hyundai is jumping on the hybrid-engine bandwagon.

At a Dec. 20 meeting of Korea's Cabinet ministers to discuss the development of vehicles using cleaner fuels, Hyundai confirmed that it will begin a commercial rollout of a hybrid version of its Accent sedan within a year in Korea and later in export markets, including the U.S. "By the end of 2006, customers will be able to go into any local Hyundai showroom and buy a hybrid Accent," says Hyundai spokesman Oles Roman Gadacz.

Hyundai's firm commitment to hybrids is a shift. Until a few months ago, the Korean auto maker was a skeptic on the technology, arguing that in terms of improving fuel economy, diesel vehicles held greater potential than hybrids, which combine electric motors with gasoline-powered engines. "We've maintained a slow pedal on hybrids because we doubted this was the way," Gadacz says.

GREEN PROGRAM. Instead, the Koreans had placed most of their bets on fuel-cell engines, which spew out nothing more harmful than water. Hyundai, which began working on fuel-cell vehicles in 1999 in collaboration with United Technologies' (UTX) Fuel Cells in South Windsor, Conn., remains confident it will be among the first auto makers to commercialize fuel-cell vehicles, beginning around 2010



Hyundai has already begun shipping a small number of fuel-cell versions of its Tucson SUVs to the U.S., as part of an Energy Dept. program for testing such vehicles. The Tucsons can run 300 kilometers (186 miles) on a tank of fuel at a top speed of 150 km (93 miles) an hour.

Even so, Hyundai hasn't totally ignored hybrids. In 2005, the company and its Kia Motors subsidiary supplied Korean state agencies with 350 hybrid cars under a government program that offers a hefty subsidy of $28,000 per car, or 76% of the sticker price, to promote environmentally friendly vehicles. This year, Korean state agencies are due to take delivery of 380 Hyundai Accent and Kia Rio hybrids. Kim Chul Soo, principal research engineer for Hyundai's hybrid project team, says the pilot program with the government will help gauge consumer interest and response to its hybrid cars.

Unlike auto makers General Motors (GM), DaimlerChrysler (DCX), BMW, and Ford (F), which have either partnered to develop hybrid technology or licensed it from competitors, Hyundai is going it alone. Both the Accent and Rio hybrids are powered by the Hyundai's Alpha II 1.4-liter, four-cylinder gasoline engine, plus an electric motor.

BIDDING FOR SHARE? It's not all Korea, all the time, though: The motor is run by a nickel-metal-hydride battery made by Panasonic EV Energy, a company controlled by Toyota (TM) that also supplies the batteries for the hot-selling Prius hybrid.

Hyundai has a long way to go on fuel economy. Its hybrid burns 5.3 liters for every 100 kilometers (44 miles per gallon) of city travel. That's better than the 8 liters per 100 km (29 miles per gallon) the gasoline-engine-powered Accent needs, but its worse than the low 4.7 liters (50 miles per gallon) the Honda Civic hybrid gets by on.

Performance-wise, the Accent hybrid's 98.2 horsepower and 121.7 pound-feet of torque also compares unfavorably with the Civic hybrid's 110 horsepower and 123 pound-feet of torque. The hybrid Accent's biggest shortfall may be its sticker price: at $36,700 -- the price charged to Korean government agencies. That's way more expensive than the hybrid Civic's $25,800.

Yet in some key markets, Hyundai may choose to sell its hybrids at a loss in a bid to gain market share. Ed Hellwig, senior editor at Edmunds.com, a Web site for car buyers, speculates that if Hyundai charged a $2,000 to $3,000 premium for the hybrid versions of the Accent and the Rio, the models would be the lowest-cost hybrids available on the U.S. market. The current best-seller, the Toyota Prius, starts at around $20,000.

INCENTIVE PACKAGE. Korean government incentives may remove the sticker shock, as will Hyundai's ramp-up to the mass production of hybrids. In December, the government approved a plan to invest $200 million over the next five years to help develop technologies needed for hybrids, fuel-cell vehicles, and advanced control systems for safety.

Seoul also envisions a commercial pilot project beginning in 2010, under which hybrid vehicles will be priced at no more than twice the level of a comparable car with a combustion engine. "We'll draw up a package of incentives, including tax breaks, subsidies, and privileges to use bus lanes for drivers of environmentally friendly vehicles," says Kim Jin, a deputy-director at the Commerce, Industry & Energy Ministry. With the government in its corner, Hyundai could someday realize its dream of joining Toyota and Honda as the auto industry's greenest companies.

Honda Insight Hybrid

If you really want to do your part to reduce greenhouse gases and air pollution, then ride a bike and take public transportation. The next best thing is to drive the Honda Insight. (After all, you might need a car. It’s America.)

But if you want a new Insight, you'll need to move quickly. Honda stopped making the two-seater Insight in Sept. 2006.

The latest wave of muscular and flashy hybrids have arrived. They each offer their own exciting new bells and whistles: luxury features, enhanced performance, three-prong outlets, and so on—but wasn’t the point of hybrids supposed to be great gas mileage? If saving the atmosphere and reducing our foreign oil dependency is the reason that you’re thinking about a hybrid—and you can live with a two-door car—the Insight may be just the ticket.

Released in 2000 as the first hybrid car to hit the mass market, the Honda Insight is the undisputed king of fuel efficiency and low emissions. How would you like to boast 70+ mpg to your friends?

Honda sold less than 2,000 Insights in 2005, and fewer than 1,000 units through September of 2006. With the introduction of a new small hybrid-specific car planned for 2009—a hybrid version of a Honda Fit or something like it — the company decided to discountinue production of the Insight.

So, if you want to have an absolute blast on the road by driving the hippest (tear-drop futuristic design) and smartest (ultra-light body with super efficient engine) hybrid on the road, then think about giving the Insight a try—while supplies last.

Honda Fit Hybrid

The Emergence of the Economy Hybrid
In an exclusive interview with HybridCars.com, an industry insider has confirmed that Honda will release a hybrid version of the Honda Fit subcompact. At least, that's what they told us. The source, who wished to remain anonymous, said:

If you take the measurement from the wheel hub to the wheel hub of the Fit and the Insight, they are the same to the millimeter. The Fit is going to get the Insight engine. It's already a proven powertrain. It will probably get fuel economy in the low to mid-50s.

We published the news right away, but quickly started to look like liars. A few weeks after the HybridCars.com interview, Honda announced that they would discontinue the Insight in Sept. 2006, and introduce a new hybrid-specific car in 2009. Dick Colliver, executive vice president of Honda's North American operation, said the new hybrid will be an entirely new model and will be built in Japan. Did the line about "entirely new model" mean that the Fit Hybrid was an illusion. Colliver did not comment, one way or the other, on a possible release of a hybrid version of the Honda Fit.

In the same interview, HybridCars.com was told that Honda would also produce a hybrid version of its CR-V mini-SUV. Honda has not publicly confirmed its plans for hybrid versions of the Fit or CR-V, and as time passes, the Fit and CR-V look more illusory.

The Rumor Mill
We weren't alone in our storytelling. Rumors about a hybrid Fit began in February when the Japanese newspaper Nihon Keizai Shimbum reported that the new hybrid was on its way. Honda introduced the conventional Fit subcompact hatchback to the U.S. market in April 2006. The Fit is one of Honda’s hottest selling models in Asia and Europe, where it is sold as the Jazz.

More excitement was stirred when Edmunds's Inside Line suggested that the Honda Fit Hybrid could mean an 80-mpg car selling for under $12,000. Hyperbole and gossip notwithstanding, the prospect of an affordable subcompact hybrid could restore Honda to its hybrid glory days when the company introduced the Honda Insight as the first hybrid on American roads in 1999. Hyundai has delayed their own plans for a subcompact hybrid in the form of an Accent/Rio. Otherwise, a new chapter in the hybrid saga would have begun: the entry-level or economy hybrid. Apparently, the emergence of super-efficient petite hybrids will have to wait until later in the decade.

The promise of subcompact hybrids gives encouragement to environmentalists who have criticized high-performance and SUV hybrids as a misuse of hybrid technology. They say that advances in automotive technology (including hybrid technology) over the past decades have been misplaced on larger and faster vehicles not well suited to increasingly crowded roadways—all with a big environmental cost.
A More Practical Insight

The debate will be settled by the marketplace. If gas prices continue to climb, maybe mainstream consumers will give up a few feet of legroom for maximum fuel economy. The Nihon Keizai Shumbum report said that Honda is targeting fuel economy for the Fit hybrid in the 60-mpg range. As a subcompact, the Fit is cute and small—but has over 90 cubic feet of passenger volume (only slightly less than the midsize Accord) and 21.3 cubic feet of cargo capacity, nearly as much room as a Honda Element. The 60/40-split folding rear seats even allow the Fit to do some minor hauling. In that light, the Honda Fit hybrid could be viewed as a more practical four-door version of the Honda Insight.

It's unlikely that a Fit hybrid would sell anywhere near $12,000. The new conventional Fit subcompact is priced starting between $13,000 and $14,000. Commonly, the hybrid version of vehicle sells for a couple of thousand dollars more than its conventional sibling. Even with the Fit's hybrid premium, its price will beat out the Civic Hybrid by approximately $5,000 and a Prius by $7,000 or more. The gas-only Fit is powered by a 109-horsepower 1.5-liter, four-cylinder VTEC engine. The hybrid version. according to the HybridCars.com interview, will utilize a 1.0-liter engine.

Honda Civic Hybrid

The 2006 Civic Hybrid destroys any notion that hybrids can't look cool. The reviews are unanimous:

• Autobytel: "Daring new styling."
• Automobile: "A real head-turner."
• USA Today: "Somewhere between engaging and gorgeous."
• Los Angles Times: "A handsome car."

Dan Neil of the Los Angeles Time identifies the Civic Hybrid's defining characteristic as its sloping windshield. He explained, "The slicked-back windshield look is often used on concept cars but is discarded in production cars because it creates an unmanageable flat space behind the steering wheel. Honda designers turned this space to their advantage, creating a beautiful two-tier instrument panel limned in organic shapes."

Looks and Smarts

By all accounts, Honda not only designed the heck out of the Civic, they engineered it to the extreme. The Civic hybrid breaks the 50-mark for both highway and city EPA numbers, and qualifies or Advanced Technology Partial Zero Emissions status in all 50 states.

How did Honda achieve more power and efficiency, and cleaner emissions, all at once?
Examples:

Deactivation down to zero: There are a few cars on the road that save gas by de-activating cylinders when they are not needed. The Civic Hybrid, in certain cruising modes, can deactivate ALL of its cylinders. During this time, the electric motor alone powers the vehicle. At other stages of acceleration and cruising, Honda’s variable valve system allows cylinders to open and close for the right mix of performance and efficiency.

Smaller more powerful powertrain: Honda is on the fourth generation of its integrated engine/motor design. The '06 Civic combines a 1.3 liter iVTEC 4-cylinder engine with a 20-hp electric motor to deliver a total of 110 hp. The new powertrain is 20 percent more powerful and five percent lighter than the previous model.

Reduced friction: The Civic utilizes friction-reducing efficiency-boosting engine design, such as aluminum die-cast pistons, ion-plated piston rings, and smoother surfaces on the cylinder walls.

More efficient combustion: The Civic Hybrid uses eight spark plugs that operate in two modes: sometimes they fire one after the other, with the plug situated near the intake valve firing first and the exhaust plug firing later. Flexibility with the firing order allows for a more complete combustion of fuel in the cylinder.

More powerful electric motor: The Civic Hybrid uses an improved motor magnet design developed for the Accord Hybrid. The wire windings in the motor are now made with rectangular shaped wire instead of round wire, to provide larger wire surface area. And there's better integration of the electric motor and control units for more precise digital control. The result is increased output horsepower by 50 percent and improved maximum torque by 14 percent. When idling, the air-conditioning and accessories run exclusively off the electric motor. The AC and accessories can also run off the motor when the car is moving, depending on the driving conditions.

More powerful batteries and more of them: The new Civic Hybrid's rechargeable batteries, supplied by Sanyo, have a 25% increase in energy density. The vehicle uses 132 cells to store up to 158 volts of energy—up from 144 volts in the previous version. In both the 2005 and 2006 models, the batteries take up 1.6 cubic feet of storage behind the rear seats, which means the rear seats can't split and fold as in the other Civic models.

Improved regenerative braking: The 2006 Civic Hybrid is less reliant on traditional braking. A brake pedal sensor sends a signal to the car's computer, activating systems that proportion braking power between traditional hydraulic brakes and the electric motor. Also, because all the cylinders can deactivate during deceleration, pumping losses are greatly reduced. This allows more—170% more—of the braking energy to be sent to the batteries. The driver doesn't feel the difference, but new advanced hydraulic boosters provide a better brake pedal feel.

Safer: The Civic Hybrid uses multiple "load paths" to limit penetration of the car's structure by absorbing more of the crash energy. Whatever energy gets through is mitigated by the car's eight standard air bags. The 2006 Civic Hybrid has earned top safety rankings from NHTSA and IIHS.

More bells and whistles: Unique hybrid rims. Optional navigation system with voice control. Input jack for MP3 player. Telescopic steering wheel. Turn signals integrated into the sideview mirrors. Two exclusive paint colors: Opal Silver Blue and Magnetic Pearl. Etc.

The new and improved 2006 Civic Hybrid fetches a slightly higher price: $21,850 or $23,350 when equipped with Honda's optional satellite linked navigation system. That's still a very affordable car. With fuel efficiency above 50, a full-hybrid system, and a sleek new design—and a price thousands below the Prius—Honda might finally give Toyota a run for its money. Honda is targeting 28,000 sales for the 2006 model year.

Honda Accord Hybrid

Here’s the formula for the Honda Accord Hybrid: take the second best-selling car in the country, offer it with as many luxury features as possible, and soup it up to make it faster than any other family sedan on the market. This approach—using hybrid technology to boost performance and to only moderately improve fuel economy—caught car reviewers and hybrid fans by surprise when the Accord Hybrid was introduced in Nov. 2004. Aren't hybrids supposed to be small, underpowered, econoboxes with great fuel economy?

One headline read, "Sips Gas. Hauls Ass." Environmentalists pinned the term "muscle hybrid" on the Accord. David Welch of BusinessWeek, as if shocked, wrote, "The car bursts onto the road. Yea, this car—an environmentally friend and fuel-efficient hybrid—really did burn a little rubber.”

Another First for Honda

Honda was the first to introduce a hybrid in the U.S. market: Honda Insight. They were the first to offer a hybrid version of a conventional vehicle: Honda Civic Hybrid. And suddenly, they were the first to show that hybrids could offer more performance, more amenities, and better fuel efficiency than other vehicles in its class.

"Hybrid" wasn't the point. The point was that a Honda salesman could point Accord shoppers to an option with a 9 mpg boost in city mileage and a 15 horsepower boost in performance—all for a couple of thousand dollars more than the standard package. Honda set the realistic modest goal of selling 20,000 Accord Hybrids for the 2005 model year. The company seemed content to sell the premium hybrid option to relatively few customers—allowing Toyota to bask in the hybrid glory.

By the end of 2005, Honda sold more Accord Hybrids than Ford sold Escape Hybrids, and with a lot less fanfare (and green washing). The fact that sales were not nearly as brisk as the Prius's didn't mean that Accord Hybrid drivers aren't happy. By all reports, they are ecstatic. Dr. Oliver Sachs, who wrote The Man Who Mistook His Wife for a Hat, loves his. The Accord Hybrid converted auto economist Dr. Walter McManus (a blogger on this site) from a hybrid naysayer to a hybrid advocate. And Dr. Leon S.—he's not famous, but he is a doctor—who found the Prius and Civic short on power and amenities, finds his AH a pleasure to drive.

Comparison with Camry Hybrid

For more than a year, the Accord Hybrid stood alone as the only hybrid in the family sedan category. That changed in mid-2006 when the Camry Hybrid burst on the scene. The size and shape of the two vehicles will leave few surprising distinctions for shoppers. The real story is in the technology. The Camry uses a smaller engine with a more robust full-hybrid system to produce better fuel economy results in the city, but less overall power. The Accord utilizes a milder hybrid system with a larger engine (that allows three of the engine's six cylinders to shut down during highway cruising) to produce a lot of power, with respectable fuel economy.

In its first month, the Camry became the second best-selling hybrid behind the Prius—while the Accord languished on dealership lots. Apparently, Honda's fast six-cylinder family hybrid wasn't what the doctor ordered for the national ailment of high gas prices. But the Camry Hybrid, with its more modest four cylinders and more daring city mileage of 43 mpg, came just in time.

By the fall of 2006, Toyota was consistently selling ten times more Camry Hybrids than Honda was unloading Accord Hybrids. The experiment of using hybrid technology to boost performance, rather than improve fuel efficiency, backfired in the marketplace. Time will tell if Honda learned its lesson, and offers the next Accord Hybrid with four cylinders—and kick-ass gas mileage.

Oil Prices Steady at $61

Oil prices were steady Wednesday ahead of the release of a weekly U.S. petroleum supply snapshot expected to show higher inventories in gasoline and heating oil.

Oil prices rose just 2 cents to $61.04 a barrel.

Gasoline inventories are seen increasing by about 900,000 barrels, while inventories of distillates, which include diesel and heating oil, are forecast to rise by about 300,000 barrels.

The market was also awaiting a decision by OPEC this week on whether to make further production cuts to shore up prices. Ministers of the Organization of Petroleum Exporting Countries (OPEC) began gathering in Abuja, Nigeria, and continued to send mixed messages about their intent.

The disagreement over whether further reductions in output were needed reflected uncertainty over demand over the next four months, worries that inventories are too high and chafing over the shrinking U.S. dollar that makes each barrel of crude worth less than it was a year ago.

OPEC already agreed in October to cut crude output by 1.2 million barrels a day, more than 4 %of its previous production, although the actual reduction is estimated at no more than two-thirds of that maximum.

Oil Prices Hold Above $61 a Barrel

Oil prices held above $61 a barrel Tuesday as the market awaited OPEC's decision this week on whether to further cut production in order to shore up prices.

The market is somewhat uncertain what to expect from Thursday‘s meeting in Nigeria of the 11-member Organization of Petroleum Exporting Countries (OPEC).

It was premature to consider another production cut for OPEC.

Oil Prices Fall Ahead of OPEC Meeting

Oil prices fell in sluggish trading Monday amid mixed signals from OPEC officials about the possibility of production cuts when the organization meets later this week.

Crude oil dropped 33 cents to $61.70 a barrel.

Some OPEC officials have been pressing in recent days for a cut in output on top of the production cut of 1.2 million barrels a day approved in October, while others have indicated that with prices above US$60 a barrel, the cartel was likely to refrain from cutting output at the meeting.

Vienna‘s PVM Oil Associates also suggested that a weaker dollar could add to sentiment for production increases because crude is sold in dollars but much of the consumer goods purchased by OPEC nations is denominated in euros.

Expectations of milder temperatures in the United States also weighed on prices. Temperatures in the Northeast, the nation's largest heating oil market, were expected to moderate this week, with above-normal temperatures through most of the nation, according to the National Weather Service .

Quebec Drivers Face Higher Pump Prices

Quebec drivers could pay more at the pump next year as they get squeezed between the provincial government's fight against climate change and the oil industry’s attempts to protect the bottom line.

Canada’s major oil companies notified the Quebec government in November that consumers will be picking up most of the tab for the province’s new environmental plan.

The Canadian Petroleum Products Institute suggested oil companies will follow the lead of hydro and gas companies by passing along costs.

The proposed law facing a vote in the legislature this week would charge oil companies 1.3 cents per litre of gas in an effort to raise money for the government's so-called green fund.

It’s simply unrealistic to expect oil companies to absorb the tax.

Greenhouse gases account for more than 80 % of emissions related to consumption.

Responding to the Plug-In Hybrid Opportunity

If you ask, "have major auto-makers come around on PHEVs?", today's answer is "Yes -- but not yet."
None have committed to a schedule for production. As you can see in our collection of media reports, comments on PHEVs have been contradictory. They've evolved as awareness expands and interest grows, and as they get more pointed questions from journalists and customers. The objections they raised for years -- "no one is interested, no one would plug in, the benefits are minimal, it's just shifting the pollution from the tailpipe to the smokestack, there's no demand for these cars" -- still show up occasionally, but are by and large history.

What remains is "not yet viable." Their response to real and specific concerns about battery lifetime, up-front costs, and safety issues is to focus on engineering and testing for an unspecified number of years. We are working to find ways to address all these issues so they can get started now, putting demonstration fleets of "good-enough" PHEVs in the hands of eager fleet and early adopter customers, with better production PHEVs arriving as batteries steadily or rapidly improve.

Here's our quick summary:

• General Motors: intention to produce PHEV of Saturn Vue, but not for years. More announcements in January. Wants to be first.
• Toyota: "pursuing" plug-in hybrids, but not viable for years. Wants to be first.
• Ford: "keenly looking" but nothing to announce. Slowing down entire hybrid program.
• DaimlerChrysler: PHEV prototypes on 15-passenger Sprinter program, no commitment to production. No plans on passenger vehicles.
• Nissan: unconfirmed media report of a PHEV around 2010.
• Honda: federal research and development is all that's warranted at this stage.

Boeing Solar Cell Surpasses 40.7 % Efficiency

Boeing today announced that Spectrolab, has achieved a new world record in terrestrial concentrator solar cell efficiency. Using concentrated sunlight, Spectrolab demonstrated the ability of a photovoltaic cell to convert 40.7 % of the sun's energy into electricity.

This solar cell performance is the highest efficiency level any photovoltaic device has ever achieved. The terrestrial cell we have developed uses the same technology base as our space-based cells. So, once qualified, they can be manufactured in very high volumes with minimal impact to production flow.

High efficiency multijunction cells have a significant advantage over conventional silicon cells in concentrator systems because fewer solar cells are required to achieve the same power output. This technology will continue to dramatically reduce the cost of generating electricity from solar energy as well as the cost of materials used in high-power space satellites and terrestrial applications.

These results are particularly encouraging since they were achieved using a new class of metamorphic semiconductor materials, allowing much greater freedom in multijunction cell design for optimal conversion of the solar spectrum. The excellent performance of these materials hints at still higher efficiency in future solar cells.

Oil Prices Rise

Oil and gas prices rose Thursday after U.S. government data showed that domestic inventories of crude oil, gasoline and heating oil fell last week.

Also gas prices was the uncertainty ahead of a meeting next week of oil ministers from the Organization of Petroleum Exporting Countries (OPEC).
OPEC officials have been pressing in recent days for a cut in output on top of a production cut of 1.2 million barrels a day, approved in October.

Light, sweet crude for January delivery rose 21 cents to $62.40 a barrel . January Brent crude rose 30 cents to $63.37 a barrel.

The data comes amid expectations of milder temperatures in the United States and Canada. Temperatures in the Northeast, the nation's largest heating oil market, were expected to moderate later in the week, with the National Weather Service forecasting above-normal temperatures through most of the nation next week.

Oil Prices Were Little Changed

Oil prices were little changed Wednesday, Dec 6, 2006, ahead of the release of weekly U.S. petroleum inventory data, which is expected to show higher supplies.

But the possibility of more production cuts by the Organization of Petroleum Exporting Countries (OPEC) kept a floor under prices, as recent comments from key members of the cartel suggest it will push for another cut when it meets Dec 14, 2006 in Nigeria. OPEC says it is concerned about ballooning worldwide crude oil inventories.

Crude oil prices fell 1 cent to $63.31 a barrel.

Oil Prices Hover Around $62

Oil prices rose slightly in Tuesday as traders in Asia watched U.S. winter weather and anticipated further production cuts by OPEC.

Prices in the last week broke out of the $57 to $62 a barrel band that had held them for nearly two months. On Tuesday, light sweet crude for January delivery was up 16 cents midmorning to $62.60 a barrel in Asian electronic trading on the New York Mercantile Exchange.

The market would strengthen further as demand increased during the northern hemisphere winter. $60 a barrel was the new price floor.

In the short-term future, what's still going to move the market is the weather. Prices dropped a day before on a mild weather forecast for next week, but the winter season — when demand is typically highest — has not officially begun.

What drives oil at the end of the day is good old-fashioned demand.

Cold weather spurs demand for heating oil, pushing prices higher.

Prices were driven above $62 a barrel after a storm in the United States last week and comments from key members of the Organization of Petroleum Exporting Countries that suggest the cartel will push for further cuts in output when it meets Dec. 14 in Nigeria.

Auto Sales Have Best November in Canada

Auto dealers in Canada had their best November for sales in four years.

Total sales of cars and light trucks (including minivans and SUVs) came to 123,465 last month, up 2.7 % from the same month last year.

General Motors Canada reported the biggest sales drop among the major automakers. Its sales fell 13.7 % to 30,844 as it continued to scale back on low-margin fleet sales to car rental agencies. Its car sales numbers were down 18 %.

GM Canada retained its commanding sales lead, however. Ford of Canada regained the second spot as its sales jumped 15.4 % to 17,368. Chrysler's 17,200 Canadian sales were up 8.4 % from November 2005 — good enough for third spot.

Toyota Canada's sales dipped 2.4 % on a year-over-year basis — a rarity for an automaker that usually reports nothing but sales gains. Its November sales last year got a boost from the release of its new Yaris subcompact.

Toyota snuck into fourth spot, just ahead of Honda Canada, whose November sales jumped almost 16 %.

U.S. Retail Gas Prices Continue to Rise

Gas prices continued to rise during the holiday shopping season.

Gas prices rose about 4 cents per gallon nationwide compared to two weeks ago.

The national average for self-serve regular was $2.27 per gallon on Dec. 1.

The national average for mid-grade was $2.38, while premium was $2.48 per gallon.

The lowest average price in the nation for self-serve regular was in Tulsa, where a gallon cost $2.09. The highest average price in the nation for self-serve regular was Honolulu at $2.74.

Oil Settles Above $63

Oil prices finished above $63 a barrel on Friday (Dec 1, 2006), ending a bullish week as traders bet on blustery weather moving across the country and more production cuts from OPEC.

Prices ended higher for the same reasons we've been talking about all week — colder weather, output cuts and a report showing U.S. inventory falling pretty steadily for the past few weeks. The market continued to hold on and closed out on a positive note.

OPEC is likely to trim production again and he expects a cut of at least 500,000 barrels a day.

OPEC could cut production by half a million barrels a day when it meets Dec. 14, 2006 in Abuja.

Natutal gas settled at $8.422 per 1,000 cubic feet, down 42.2 cents. Prices were weighed down by the Institute of Supply Management‘s report showing that the U.S. manufacturing sector contracted in November,the first time the sector contracted since April 2003.

Chavez to Push OPEC for High Oil Prices

President Hugo Chavez will continue pressing the Organization of Petroleum Exporting Countries (OPEC) to defend high oil prices if he wins a second six-year term on Sunday, Venezuela's oil minister said.

Over the past 8 years Chavez has been one of OPEC's leading price hawks, consistently urging the group to cautiously manage oil supply to prevent prices from falling below $50 a barrel.

Venezuelans are choosing between leftist Chavez and Manuel Rosales, a moderate who favors free markets over socialism, in Sunday‘s presidential poll.

Venezuela, a major supplier of crude to the United States, is the world's fifth-largest exporter.

Aircraft Take-Offs And Landings Show Increase

Aircraft take-offs and landings at the 42 Canadian airports with NAV CANADA air traffic control towers was 1.9% higher in October 2006 compared with the same month in 2005.

This marks the 5th consecutive increase in year-over-year monthly comparisons.

Take-offs and landings reached 382,239 movements in October compared with 374,974 movements the same month a year earlier. Just over half of the airports reported increases in aircraft movements.

Railway Carloadings Drop

Canadian railways (CR) carried less tonnage in September than they did in August as loadings of several commodities declined, according to Statistics Canada records.

Railways loaded a total of 24.0 million metric tonnes of freight, down 4.4% from August 2006.

Loadings of wood by-products, chemicals and chemical by-products all fell as a result of several mill closures in these two industrial sectors.

The non-intermodal portion of goods totalled 21.7 million tonnes, down 4.5% from August 2006. Weaker loadings of iron ore were offset by strong loadings of grains as the harvest season produced a good yield.

Railways loaded 2.4 million tonnes of intermodal, or containerized, freight, down 2.5% from August.

Traffic received from the United States increased for the fourth consecutive month, setting an all-time high for September of 2.4 million tonnes.

On a year-over-year basis, non-intermodal tonnage in September was up 0.7% from the same month last year. Containerized freight in September was 0.9% higher, while traffic received from the United States jumped 14.9%.

Despite September's slowdown, loadings for the third quarter amounted to 73.0 million tonnes, the highest ever for a third quarter.

Intermodal (containerized) loadings between July and September hit nearly 7.1 million tonnes, up 2.4% from the same three months last year. Non-intermodal freight rose 1.7% to 65.9 million tonnes.

Third-quarter loadings rose 0.9% over the second quarter. Historically, loadings in the third quarter have been less than in the second quarter.