Despite recent excitement about a type of electric car called a plug-in hybrid, such vehicles are unlikely to arrive in meaningful numbers for a few more decades, according to new analysis by the National Research Council.

The study, released on Monday, also found that the next generation of plug-in hybrids could require hundreds of billions of dollars in government subsidies to take off.

Even then, plug-in hybrids would not have a significant impact on the nation’s oil consumption or carbon emissions before 2030, the report estimated. Savings in oil imports would also be modest, according to the report, which was financed by the Energy Department.

Several carmakers, including Toyota and General Motors, are developing plug-in hybrid models, which will appear in showrooms next year. Toyota just announced on Monday that it planned to begin selling “tens of thousands” of plug-in hybrid Priuses in two years.

Plug-in hybrids are cars that would be built to run primarily on an electric battery, but if extra power were needed for a long drive, a gasoline engine would kick in. Users would recharge the cars by hooking them to electric power outlets at home or work, meaning they could cover most or all of a daily commute on battery power, not gasoline.

The report found that plug-in electric vehicles could number 40 million by 2030 — provided that rapid progress was made in battery technology, and that the government provided large subsidies and incentives. However, the study suggested that a “more realistic” number would be closer to 13 million vehicles. That would represent 4 percent of the 300 million vehicles projected to be on the road by then.

The main reason for the slow rollout is the potential cost of batteries. Manufacturers are betting on lithium-ion battery technology similar to that in laptops and cellphones. While the technology has evolved rapidly, the report noted that declines in cost would not be steep enough over the next few decades to crowd out other types of cars.

Under the report’s most optimistic assumptions, 6.5 million plug-in hybrids could be sold annually in the United States by 2030, out of total sales of 19.4 million vehicles. Under the more realistic assumptions, 1.8 million plug-in hybrids would be sold that year.

Michael P. Ramage, who headed the study, said that its assumptions — and results — were more conservative than other studies. “Over the next 20 years, we felt that a 50 percent reduction in battery costs would take place,” he said in a telephone interview. “Other people have assumed a lot greater battery cost reductions.”

Building a plug-in hybrid electric vehicle that could run for 40 miles on electricity would cost $18,000 more than for a similar conventional car, including a $14,000 battery pack, according to the report. While each mile driven on electricity costs less than a mile powered by gasoline, “it is likely to be several decades before lifetime fuel savings start to balance the higher first cost of the vehicles,” the report stated.

More recharging outlets, as well as other infrastructure improvements, must also be in place for plug-in hybrids to reach large numbers of American households, the report said.

The National Research Council, in Washington, provides scientific and technical advice to the federal government under a Congressional charter.

SOURCE: New York Times

Mercedes entered the entry level luxury vehicle category years ago with it C230 Kompressor coupe.  The vehicle was a capable model with strong performance, solid handling and a refined driving experience.  Mercedes buyers showed little interest and sales were unexpectedly low.  Then BMW entered the same segment with its recent 1 Series.  A capable performer on all fronts with a price that undercut the 3 Series by thousands and according to sales numbers, the model is a hit.

Why is the BMW a success and the Mercedes a failure?  It could easily be a result of the economic times right now and Mercedes seems to think so too as they are now considering a second go around at the entry level luxury segment.  The company is expected to offer a 2 door C-Class to compete with BMW’s 1 Series, but this time around Mercedes will offer a hybrid option as a a fuel efficient alternative to competitors.

The hybrid is rumored to be powered by a V6 engine from the Mercedes lineup.  It will be naturally aspirated and is expected to be the most efficient vehicle in its class.   Along with the hybrid option, Mercedes is considering a twin turbo V6, a 5.5 liter twin turbo V8 AMG model, and a DOHC V6 as the base engine.  Interestingly, no diesel option has been reported.

The C-Class coupe is expected to go on sale in 2011.  There is no word if the hybrid option will be available immediately at launch and pricing has yet to be announced.  Stay with us for more details as they emerge.

SOURCE: All Cars Electric

Hello hybrid, this is your driver calling.

In a move that makes remote car starters seem so – well, last decade – Chevrolet will be giving owners of its new Volt hybrid a direct line to their new cars via their smartphones.

Chevrolet and OnStar announced the new smartphone application in Las Vegas, where the Consumer Electronics Show is getting underway.

The application lets drivers carry out of a range of tasks, using Motorola’s Droid, Apple’s iPhone or the Blackberry Storm. Besides the usual open doors remotely, it displays the charge status of the car, lets drivers start charging or schedule charge timing, shows the miles per gallon usage and other monitoring info.

OnStar features like unlocking doors and remote operation of the horn and lights, which have only been available by calling the OnStar call centre, will be available through the smartphone application.

While production of the Volt isn’t due to begin until late this year, demonstration applications for the Motorola Droid and Blackberry Storm and the iPhone are available now. A car that you plug in overnight to recharge, the Volt is an electric hybrid designed to drive up to 64 kilometres (40 miles) on electricity, after which an engine/generator kicks in to extend the driving range to about 480 kilometres or 300 miles.

SOURCE: Vancouver Sun

Biodiesel technology is low on the list of priorities for auto industry research, according to a global survey of 200 senior auto executives conducted by KPMG that was released Thursday.

When asked to rate which were the most important alternative fuel technologies to the auto industry over the next five years, hybrid systems were ranked first followed by battery electric power, fuel cell electric power, and biodiesel, respectively.

Fuel efficiency was ranked as the feature auto executives believed makes the biggest impact on customers’ purchasing decisions, while “environmental friendliness” was second followed by safety innovation in third.

A car’s style and looks came in last on the list of factors auto executives thought customers looked at these days when deciding which car to buy. They’re likely right. The information follows news that Ford Motor announced in December it saw record sales for its hybrid cars in 2009 compared to hybrid car sales in other years.

“Automotive manufacturers are in the challenging position of being asked to compete on both technology and cost. With global consumers still feeling the pinch of the recession, those OEMs who can deliver on this equation will be in the driver’s seat,” Gary Silberg, national automotive industry leader for KPMG, said in a statement.

The survey was conducted September through November 2009.

SOURCE: Cnet

Hyundai plans to show off its Blue-Will hybrid concept to North America during the 2010 Detroit auto show next week. The Blue-Will debuted in Seoul last March, but the visit to Detroit will be the first time we’ve seen the concept in person.

“Blue-Will’s bold character lines and innovative design language give the perfect expression to the advanced eco-friendly technologies found beneath the skin,” said Oh Suk-Geun, executive vice president of design for Hyundai. “At a time of rising concern about the environment and our energy future, Blue-Will demonstrates to eco-conscious car buyers everywhere that Hyundai has practical hybrid solutions that will appear on the next generation of vehicles.”

The Blue-Will, also known as the HND-4, features a host of alternative energy and eco-friendly technologies including recycled materials and solar panels integrated into the all-glass roof. Other tricks include a thermal generator to turn exhaust gas heat into electricity and a new Lithium Polymer battery, the first to be used in a car. It powers a 100 kW electric motor that’s mated to Hyundai’s new 152-hp 1.6L direct-injected four-cylinder engine, both of which send power to the ground via a continuously variable transmission. As a parallel hybrid, the Blue-Will can be powered be either motor alone or any combination of the two as driving conditions dictate. This new hybrid architecture is more than just a science experiment – it will be the basis of the new Sonata Hybrid that will debut in the U.S. later this year.

Not all of the Blue-Will sleek technology is under the skin. All the lighting up front is LED to save power, and it only gets better inside. Transparent Organic LEDs create a high-resolution, ultra-thin color screen in place of the traditional gauge cluster, while a touchscreen replaces the traditional center stack and takes over all of its duties, including climate control, stereo control, navigation, and even the transmission gear selection. Topping off the green creds is the Eco-Coach, a graphic-based program designed to teach you to be a more economical driver.

SOURCE: Automobile Magazine

The automotive show circuit is in full swing and many new concepts and production models are being unveiled around the world. Several of the new concepts and unveilings are hybrid or electric vehicles designed for better fuel economy.

Toyota recently unveiled the concept for a new subcompact hybrid vehicle selling for less than the Prius and promising better fuel economy. The new subcompact is expected to hit showroom floors in 2012 with production set to start in late 2011. Audi has also confirmed its first hybrid vehicle is coming to market in the first part of 2011.

The hybrid is the Q5 and the vehicle is a 4-door “crossover” SUV. The hybrid is expected to debut officially at the 2010 L.A. Auto Show and then hit dealers in early 2011. Audi isn’t offering much detail on the Q5 other than to say the vehicle is coming.

Autoblog figures that the Q5 will use components from the hybrid versions of the VW Touareg and Porsche Cayenne. The vehicle is expected to use a lithium-ion battery pack.

Along with the official Q5 announcement, Audi also announced that it plans to expand its line from 34 vehicles to 42 by 2015. Among the notable new models coming in 2010 are the A1, A7, an all-new A8, and a convertible version of the R8 called the R8 Spyder.

SOURCE: Daily Tech

The Lexus 2010 HS 250h hybrid–i.e., “the world’s first dedicated luxury hybrid”–has a new claim to fame: it’s been awarded five out of five stars by the National Highway Traffic Safety Administration (NHTSA) for safety.

The New Car Assessment Program (NCAP), a consumer information program created by NHTSA, rates vehicles to determine crash and rollover safety, gathering info through controlled crash and rollover tests. Lexus says the body structure of the HS 250h plays a key role in its fundamental safety characteristics, citing high tension steel components located in the body structure, doors and other key areas to help absorb and distribute energy in the event of a crash.

The Lexus HS 250h’s five star rating takes into account both the front impact for the driver and front passenger positions as well as side impact for the driver and left rear passenger positions.

Of course, if you’re interested in actual gas mileage, the Lexus HS 250h only gets 35 mpg in the city, opposed to the Prius’ 48–but that’s still 80 percent better than ”the average near luxury [?] car,” according to Lexus.

SOURCE: Earth Techling

Volvo has now released more details of the all-electric C30 concept car it will launch at next week’s 2010 Detroit Auto Show. We covered early details a couple of weeks ago; here’s the rest of the story on the little electric hatchback with no tailpipe.

The electric C30 concept car will let the Swedish automaker assess the viability of a limited-range all-electric vehicle, and how it’s used under real-world driving conditions.

Volvo expects to release 50 of the cars to consumers around the world, starting late this year. Its plan follows the pattern used by BMW for its Mini E, which it plans to replicate with the ActiveE concept, an electric model of the 1-Series sedan it will show in Detroit as well.

90-mile range

Volvo quotes an eight-hour recharging time for its 24-kilowatt-hour lithium-ion battery, assuming standard European 230-Volt power. (That time could double using U.S. 110-Volt current; U.S. drivers will likely have to install a 240-Volt circuit, like those used for electric stoves and clothes driers.)

The pack is located in the tunnel between the seats and in the space formerly occupied by the gasoline tank. It powers an electric motor under the hood that drives the front wheels, just as on the standard 2010 Volvo C30.

Volvo quotes acceleration of “less than 11 seconds” from 0 to 62 mph. Top speed is limited to roughly 80 mph, and the range is approximately 90 miles–a distance that fewer than 10 percent of vehicles in Europe and the U.S. travel each day.

Plug-in hybrids to be “main track”

Lennart Stegland, Director of Volvo Cars Special Vehicles, says, the company expects electric cars “primarily to be used in and around cities and for daily commuting.”

Volvo also plans to introduce diesel and hybrid models that will be sold starting in 2012, although likely in small numbers at first. But it calls plug-in hybrids its “main electrification track” rather than battery electric vehicles.

From its point of view, plug-in hybrids offer long range and good environmental performance, but lower battery cost. The pack in the plug-in hybrid, says Volvo, will be just 12 kilowatt-hours.

SOURCE: Green Car Reports

Toyota will introduce a new hybrid next month that is smaller and more affordable than the Prius, reports the Detroit News. The hybrid-only subcompact is expected to go into production in 2011 and be in US showrooms by early 2012.

Toyota, which will offer a peek Jan. 11 at the North American International Auto Show, expects it to be a big seller. Prius currently rules the market: With a starting price of $22,400, about 417,000 had been sold through October.

“It’ll be interesting to see what they name it,” said an analyst at Edmunds.com. “The Prius name has such cachet in the marketplace.”

Score one for diesel hybrids.

The National Renewable Energy Laboratory got its hands on six hybrid vans that United Parcel Service is using, and after testing them nine ways from Sunday found diesel-electric technology improved fuel economy more than 28 percent. What’s more, it cost significantly less per mile to operate while delivering the same reliability and performance as conventional diesel vans.

The federal eggheads spent a year analyzing fuel economy, maintenance and vehicle performance data for six first-generation hybrid UPS vans developed by Eaton Corp. It’s no surprise a delivery service would be eager to give diesel-electric tech a try — UPS must spend money by the truckload on fuel — and the NREL joined UPS in putting the trucks through their paces in Phoenix.

So why’d they team up for the research?

Because the Eaton parallel hybrid system was developed in part under a $7.5 million, 33-month contract from the Department of Energy’s Advanced Heavy-Hybrid Propulsion System program. The feds like the technology because it increases fuel economy and reduces emissions, and they wanted to see what we got for the money.

“Having provided funding for the development of the Eaton hybrid system, DOE was eager to participate in testing the system in a commercial fleet,” Lee Slezak, manager of the advanced heavy-hybrid program, said in a statement. “Our goal is to help develop more efficient vehicle technologies and then document their on-road performance.”

The feds compared six diesel-hybrid vans to six diesel vans. According to the lab’s report, the hybrids delivered 28.9 percent better fuel economy, averaging 13.1 mpg to the diesels’ 10.2 mpg. Maintenance costs were about the same, but the diesels showed slightly better reliability — a factor the researchers chalk up to “troubleshooting and recalibration issues” associated with prototype components.

The hybrids were driven 15 percent fewer miles per day, which the feds attribute to the fact the diesel-electrics were assigned to urban routes where they made more stops per mile and spent more time at low speeds or idling. Overall, the hybrids delivered a 15 percent improvement in total cost per mile.

UPS is, as you’d expect, quite pleased with the results.

“NREL’s report on the performance of our hybrid delivery vehicles is helping make this type of energy-efficient vehicle a standard in the industry,” said Robert Hall, the company’s director of maintenance and engineering. He’s hoping the findings speed up market acceptance of the technology.

Eaton supplied the hybrid propulsion systems for the vans, which were manufactured by Freightliner. The system uses an Eaton automated transmission with an integrated motor-generator and lithium-ion batteries. The electric bits are mated to a four-cylinder Mercedes-Benz diesel engine — the same one used in the conventional vans.

UPS must like what it sees, because the delivery company just ordered another 200 Eaton hybrid vans.

SOURCE: Wired

Who drives hybrid automobiles? If one were to watch the annals of the Hollywood elite then it would be a safe assumption that actors of all stripes who care about the environment drive them. Were a person to watch Fox News, then it would be a safe assumption that the Liberal elite drive hybrids. The real question is though, who does drive these cars and why?

For many, an automobile is the 2nd most important investment after their homes. A car takes one to and from work, as well as on various other trips that can potentially lead to a great and fulfilling life. It is fair to say that the automobile has replaced the dog as man’s best friend, at least in terms of economical practicality.

The question remains though, who buys hybrids? For many Americans the benefits of having a hybrid car do not outweigh the negatives of having such an auto. The amount of gas spent in a hybrid auto is certainly less (depending on driving style), but besides that, what do you really get? The amount of time it takes to get from 0-60 is often near to 10 seconds in most models, which doesn’t make a hybrid particularly practical for getting up to speed while entering the freeway. The initial cost of a hybrid is far higher than a normal internal combustion car, and the styling on hybrid cars is, without a doubt, some of the ugliest ever created. There are more benefits than previously stated, such as reduced emissions and other eco-friendly advertisement gold, but what does it all come down to? Is the hybrid car a luxury item, just like a fine bottle of wine (wine industry hurt by economic downturn), or perhaps taking a vacation (amount of traveling down due to economic downturn). The answer is, not surprisingly: yes.

The new Honda Insight Hybrid has failed to make any kind of significant dent in the hybrid market, and thus the general automobile market. When a car company tries to make a knock-off of a proven success, the chances of failure are quite high. This is the case with the Honda Insight, which clearly copied much of the Toyota Prius. This is lack of success is a bit surprising however, due to the fact that the Honda Insight is in the same echelon of ugliness as the Toyota Prius but costs $2,000 less than its rival. Yet, the Prius is still outselling the Insight nearly 6 to 1.

This strange development in the hybrid market has induced speculation as to how the General Motors Volt will fare. Due to its extreme amount of gas mileage (53 miles to the gallon), and its certain lack of driving pleasure it should capture a large portion of the hybrid market. Chevy is producing this car, which is set to cost about the same as a Toyota Prius, though it looks far better than the elongated excrement body styling that the Prius has relied on all these years.

Despite the hybrid market growing at a good clip, who is going to spend $32,000 on a car that doesn’t have a shred of performance, sex-appeal or jaw-dropping speed? More to the point, who is going to spend $32,000 on the Chevy Volt when they can spend $10,000 less on a brand new Camaro? Who is going to drive a car that gets 53 miles to the gallon for anything but the amount saved at the pump? The young crowd won’t go for it due to the initial price, the midlife crisis folks won’t go for it because it doesn’t induce any sort of adrenaline rush. Who will want to buy this car is all speculation at this point. But it’s not hard to guess that it will likely be eco-friendly folks with a lot of money who want to “help the environment”. Many hybrid drivers have an annual average income of over $100,000, making the hybrid market a niche one, based solely upon this diminishing economic group. The question of who would buy the Volt having been answered, when are the car companies going to make a hybrid that all of us can afford and actually want to buy? The clock is ticking.

SOURCE: Green Street Journal

Ford Motor Co. said today that it is on track to sell more hybrid vehicles in 2009 than it ever has before.

Through November, Ford said has sold nearly 31,000 hybrid vehicles, or 67% more than it sold last year in the United States while total industry sales have declined 11%.

Ford’s hybrid sales increase is primarily driven by the spring introduction Ford Fusion Hybrid midsize car.

Through November, Ford sold 13,998 Fusion hybrids, according to Autodata Corp.

However, Ford still has a long way to go before it catches hybrid market leader Toyota Motor Corp. Through November, Toyota has sold 127,907 Priuses, according to Autodata Corp.

Ford also introduced the Mercury Milan hybrid midsize car earlier this year and sells hybrid versions of its Ford Escape and Mercury Mariner SUVs.

SOURCE: FreeP.com

A fuel-efficient gas-electric hybrid luxury car: Not so long ago, that was an automotive oxymoron. Now, it’s a market segment.

The concept of selling high fuel efficiency as a high-end feature is gaining currency in the auto industry, thanks in part to regulatory pressure and to the buzz in certain circles around the Tesla electric roadster and other electric-powered cars.

Mainstream luxury brands are getting on the green bandwagon, betting that a growing slice of wealthy car buyers defines an “advanced” or “premium” car as more than just a potent engine. The latest arrival in the growing flock of hybrid luxury cars is the Lexus HS 250h. I took a weekend test drive in one to see how Toyota Motor Corp. is attacking the challenge of designing a high-technology car that is both ultra-frugal and indulgent at the same time.

It’s not an easy balance to strike.

Other mainstream luxury hybrids on sale in the U.S. are variations on existing models. That approach helps with costs, but it doesn’t yield eye-popping miles-per-gallon figures.

The $87,950 Mercedes-Benz S400 hybrid sedan, for example, is rated at 21 mpg in combined city and highway driving, according to the U.S. Environmental Protection Agency. The 295-horsepower car uses a six-cylinder engine and a “mild hybrid” system to average three miles per gallon better, on the government’s tests, than the eight-cylinder, 382-horsepower Mercedes S550 sedan.

Then there’s the $43,000 Lexus RX450h, a crossover wagon that uses a more-robust hybrid system than the big Benz to achieve an average 29 mpg, compared to 20 mpg for the standard RX 350. Good, but still not enough if you want a very small carbon footprint.
Not Like Any Other Lexus

The HS 250h, however, isn’t like any other Lexus. Toyota says it isn’t just a rebadged Prius, either. Its body architecture is adapted from a European Toyota model called the Avensis. It has a 2.4-liter gasoline engine, larger than the Prius’s 1.8-liter motor. Combined with the boost from its batteries, the car is rated at 187 horsepower, compared to 134 horsepower for the Prius.

Lexus’ strategy for the HS 250h—which starts at $37,845—is to position it as the car of the future, available today. You can buy one with a cruise-control system that uses radar to slow your car when others get in the way, and an optional navigation system you can talk to.

“And on top of all that, it’s a hybrid,” says Brian Bolain, Lexus’ national manager of marketing and lifecycle strategy.

That said, the most impressive feature of the HS 250h’s list of specifications is its 35 miles per gallon EPA rating for combined city and highway driving.

I drove a Lexus HS 250h (and yes, all those H’s seem redundant) that I borrowed from Toyota from Washington, D.C., through eastern Pennsylvania and into the hilly country of New York state. From my first encounter with this car until I sent it back to the Lexus press fleet, I struggled with mixed feelings.

The HS 250h’s exterior styling plays it very safe, especially in contrast to the wedgy, angular profile of the new 2010 Prius. The interior is dominated by a prominent peninsula that pushes from the center of the dashboard into the space between the driver and passenger seats.

My test car had the optional navigation-system package, priced at $2,125, which also includes satellite radio. The center console was dominated by a joystick-style controller that operated the map functions. I never quite got the hang of the joystick, and a real buyer would expect—and should demand—a tutorial in how to get the most from the system.

The map did come in handy, however, when it alerted us to a huge traffic jam on our route home, and allowed us to bushwhack around the trouble. (Models without the navigation system don’t have the joystick.)

The Lexus HS has some features and behaviors that take a bit of getting used to if you aren’t already a hybrid driver. The car starts with the push of a large button on the dashboard, and can move out of a parking space on electric power. You might hear the gasoline engine come to life right away, or you might not.

The car has a continuously variable transmission, so there’s no gear shifting. “The transmission may feel different,” cautions the owner’s manual. The transmission does offer settings that will help slow the car when descending a steep hill.

The car’s performance in normal highway driving is conventional, except when you slow down and brake. That’s when I heard the whirring and whooshing sounds associated with the car’s technology, which captures braking energy and uses it to recharge the battery pack. Most luxury cars strive for silence. The Lexus HS makes noises.

My test car also had a $3,900 “technology” package that included a feature I used a lot during my trip: a radar-enabled cruise-control system that allowed me to set a speed, and then turn over to the car the chore of adjusting speed to the traffic. If I got stuck behind a slowpoke, the Lexus slowed down to prevent me from tailgating.

The Lexus HS 250h is a pleasant cruiser on freeways, but it’s not much fun on twisting, hilly roads. The car labored up steep grades in the hilly country around the Delaware River in Pennsylvania and New York. It’s not a cornering machine.

We traveled relatively light—a good thing, because thanks to the battery pack, the Lexus HS has just 12.1 cubic feet of trunk space, compared to 14.7 cubic feet for the Lexus ES 350 sedan and 13 cubic feet for the Lexus IS sedan.

The Lexus HS did deliver on mileage. I averaged 34.8 miles per gallon over 293 miles of driving, and boosted my mileage close to 40 mpg during stretches of the drive, according to the trip computer.
A Steep Sticker Price

The question some prospective Lexus HS buyers may ask is this: If you want a high-mileage hybrid, why buy a car that isn’t as fuel-efficient as a Toyota Prius, and costs $14,000 to $15,000 more? My loaded test car had a sticker price of $44,967, although most HS 250h cars will go out the door for under $40,000, Mr. Bolain says. The Prius starts at $23,370 and gets 50 mpg in city and highway driving.

Gas-electric hybrids account for just under 2% of the total car market, and luxury-brand hybrids are a sliver of that. The Lexus HS offers more of what environmentally conscious consumers want from an advanced-technology vehicle, and Mr. Bolain says there will likely be more Lexus models that offer the HS 250h’s brand of technology.

But more than once while winding up hill and down dale in the Lexus HS, I wished I had one of those peppy, high-mileage four-cylinder diesel BMWs or Audis that Europeans get, and we don’t. Does that make me a bad guy?

SOURCE: Wall Street Journal

Between kleptomaniacs, zippy $900 Hondas, and VW’s unexpected Suzuki takeover, India has earned more than its usual share of two-wheeled headlines of late. And here’s another to add to the mix: Bangalore’s Eko Vehicles has unveiled what they’re claiming will be the world’s first hybrid motorcycle.

The Eko ET-120 (which is more of a scooter than a motocycle, really) runs on a 70cc gasoline-powered engine that works in conjunction with a battery system to produce the power and torque of a 120cc powerplant. The gas engine yields 100 mpg, while the hybrid system should produce a combined total of 280 mpg. Emissions are claimed to be reduced three-fold. And best of all, retail price is expected to be around $850 in India*.

While it’s easy to pooh pooh this ungainly looking ride for its Toyota Prius-like aspirations, considering its potential for smog reduction in places like India (or heck, even here in the States), I’m predicting the ET-120 might be one of the more significant (and controversial) two-wheeled offerings we’ll see in 2010.

SOURCE: About.com

As more diesel and hybrid vehicles enter the market, drivers increasingly want to know which is better. This is an especially big question for sport-utility fans who feel they could easily justify owning one of the large vehicles if only it could match the fuel economy of a car.

Of the diesel and hybrid SUVs I have driven – there are only a dozen or so available — the Toyota Highlander Hybrid Limited and Volkswagen Touareg TDI come closest to combining midsize-car-like fuel economy with the size and cargo capacity that make SUVs appealing. Most other models are either too small to give drivers the high-riding sense of command they seek, or don’t come close to having decent fuel economy.

The Highlander and Touareg are well matched in price, power and practicality, and are about the same size. But the $41,020 Highlander runs on hybrid technology and the $42,800 Toureg on a diesel engine. The Highlander also offers a third-row seat the Touareg lacks, but it is too small for convenient regular use.

Each has a relatively small six-cylinder engine that still manages to power a large vehicle competently. The Touareg’s engine is typical of most diesels — they are generally good at getting a vehicle moving from a stop, and have more power at low speeds than gasoline engines of similar size. Diesels don’t have as much high-speed horsepower, but their low-speed muscle, or torque, is a better fit for the way most people drive.

The Highlander’s hybrid drive system uses an electric motor to provide similar torque that assists the gasoline engine under hard acceleration. The result is that neither gives its driver that frustrating, underpowered feeling.

On paper the Highlander seems like the easy winner because its estimated fuel economy is 27 miles per gallon in city driving and 25 mpg on the highway, compared with the Touareg’s 17 mpg in city driving and 25 mpg on the highway. But in typical everyday driving I found the two to be much closer in performance and fuel consumption. During long highway trips, both clawed their way to 27 miles per gallon, which is remarkable for big, heavy SUVs.

But I found that the hybrid’s urban fuel economy usually fell short of its estimate unless I drove in a slow, plodding way that makes the most of the hybrid’s electric motor. The problem is this driving style annoys other motorists, especially those caught behind you.

The Touareg diesel usually performed a bit better in the city than its estimate suggested, though it never came close to matching the hybrid in pure stop-and-go city driving. The Highlander’s ability to run on its electric motor alone at lower speeds lets it excel in the slow, choppy driving conditions at which gasoline and diesel engines are least efficient.

In everyday driving, I avoided unnecessarily fast starts and tried to drive smoothly, but did not truly strive for top fuel economy. The result: About 24 miles per gallon overall in both the Highlander and Touareg. However, when I tried a little harder to squeeze extra miles out of each vehicle by obeying speed limits, planning suburban routes to avoid stop-and-go driving and coasting whenever possible, the Highlander began to edge ahead. Both SUVs have trip computers that keep track of average fuel economy, and the Highlander’s seemed to respond more readily to small changes in driving style. If you work hard to hone your driving technique to maximize fuel economy, the Highlander seems to work with you and is therefore more rewarding to drive.

The biggest difference between these vehicles lies in their mechanical feel on the road. Other than using diesel fuel, the Touareg feels conventional. Its engine rumbles steadily and its six-speed automatic transmission shifts with a rhythm that most drivers will find familiar.

The Highlander, however, has a continuously variable transmission that smoothly varies its drive ratios in a way that lets the vehicle’s speed build without the distinct steps of a transmission with conventional gears. The feel is seamless, but less engaging. The engine often sounds like it is laboring, but “CVTs” tend to be more efficient than typical transmissions.

Drivers who are especially fond of SUVs with traditional power plants and familiar mechanical layouts may still prefer the way the Touareg feels on the road and responds more sharply to the throttle, while finding the Highlander a bit off-putting. Still, I got used to the Highlander’s transmission quickly and liked the way it smoothed out its overall ride. I also appreciated that the Highlander weighed several hundred pounds less than the Touareg despite carrying two power systems (electric and gas). Drivers who frequently tow heavy loads will almost surely pick the Volkswagen for its 7,716-pound towing capacity, compared with a rather weak 3,500 for the Toyota.

I would happily drive either vehicle every day. Both run smoothly, handle well and are comfortable for long trips. But the Highlander always felt like Toyota took more time and care in putting the car together. And then there are the numbers — the Environmental Protection Agency’s average fuel cost estimate for the Highlander is $1,542, compared with $2,100 for the Touareg diesel. While such estimates aren’t perfect, they are especially helpful when comparing vehicles. In the end, the Highlander does a better job at mixing the often incompatible elements of SUV size and space with small-car fuel economy.

SOURCE: Wall Street Journal