Hyundai Aims To Raise Mileage Benchmark

50 miles per gallon fleet average by 2025.

“Aim for nothing and you’ll certainly succeed.” Or so goes one form of the adage.

John Krafcik, Hyundai Motor America

Hyundai Motors, on a tear over the past few years due to new, fuel efficient models, is promising to aim high by delivering a fleet average of 50 miles to the gallon by 2025. In just 15 years, Hyundai expects that it will be able to deliver on its promise, but with mostly gas-powered cars supplemented by hybrids, electric cars and other technologies.

Krafcik Promises

That promise comes from John Krafcik, Hyundai America’s chief executive, speaking to Center for Automotive Research’s Management Briefing Seminars as reported by Nick Bunkley of the The New York Times on August 4, 2010. Krafcik said that the Korean automaker doesn’t know for certain how they will reach that goal, but believes that it is achievable.

Hyundai has had the most fuel efficient fleet of any full line automotive manufacturer since 2008 with cars such as the 35 miles per gallon Hyundai Sonata helping the automaker set the pace. The Sonata is a five-passenger midsize sedan powered by gas engines and soon to include a hybrid model. The Hyundai fleet averaged 30.9 mpg in 2008, the last year such statistics were offered.

Fleet Averages

All automakers must meet a new fleet average of 35.5 mpg by 2016 with General Motors, Ford and Chrysler likely having the most difficulty doing so as their fleets contain many large trucks, sport-utility vehicles and large crossover models.  Hyundai has avoided large vehicles for the most part, although its Genesis sedan and upcoming large Equus run counter to that trend.

Hyundai’s string of success hasn’t escaped the notice of the academic community with the Wharton School noting that Hyundai invested in new models and quality programs well before the economy dropped in 2008 and 2009. Indeed, in 2009 Hyundai was one of only three automakers to post year over year gains with its sister operation, Kia, and niche Japanese automaker, Subaru, being the other two.

Rumored: No Honda Diesel. We’re Bummed.

Last week, Autoblog relayed the news that Honda’s diesel engine plans were dead. That isn’t too surprising given how long the supposed roll out was delayed.

In November 2007, I published an article titled, “Your 52 MPG Accord Is On Its Way,” believing that Honda was ready to follow through on its plans to offer this vehicle to American drivers. Turns out I had the right idea, but Honda’s plans have since changed or at least have been clarified.

New Plans

Apparently, Honda has reversed course in two areas: the automaker won’t support diesel technology in North America and Honda now believes that hybrid technology can and should be expanded to larger vehicles. And, I’m not saying anything about the Honda’s hydrogen plans which I believe will start coming to fruition around 2015. I test drove the Honda FCX Clarity in November 2008 at the Los Angeles Auto Show.

I won’t rehash what Autoblog shared, limited information that it is, but I can tell you that Honda desperately needs to prove itself in two areas when it comes to vehicle hybridization: the looks of their vehicles and the effectiveness of their hybrid systems. Motor Trend, by the way, thinks the Toyota Prius and Chevy Volt are ugly too.

Ugly Designs

As it stands right now, the Honda Insight is just plain ugly while the hybrid Civic is acceptable. Efficiency wise, the Insight is on par with the larger Ford Fusion but trails the Toyota Prius badly. This after Honda beat Toyota to the North American market with its own hybrid more than a decade ago.

What Honda is looking to do is to improve its current hybrid system and expand it to larger applications. Right now, only partial hybrids are used for big vehicles–namely the Cadillac Escalade and Chevrolet Tahoe–but full hybrids haven’t been developed for the largest models.

Larger Hybrids

In Honda’s case, the Odyssey minivan and its Pilot crossover seem to be good models to target, possibly giving Honda a huge edge in segment fuel economy if they can develop the technology accordingly. Full hybrids run on electric only power for speeds up to 25 or 30 miles per hour (47 mph with the Fusion), but that means vehicles weighing over two tons would need to do so.

As far a complete electrification, Honda doesn’t seem ready to embrace that concept right now, waiting to see how demand for Nissan and BMW electric cars shape up.  Still, the Japanese automaker isn’t about to be left out in the cold and has developed a strategic partnership with a Chinese company to build electric car batteries.

Electric Toyota RAV4? Yep.

Toyota RAV4: Electrification Available in 2012

First, a disclaimer: my wife owns a Toyota RAV4 and loves her vehicle. She drives a 2003 model and reminded me today that in the six years we’ve owned the car, it hasn’t failed us once. Very true!

Second, an electrified RAV4 is in the works.

Toyota and Tesla entered into a partnership in May 2010 to produce an electrified Toyota and we now know that the vehicle will be a pure electric version of its popular RAV4 crossover.

Prototype EV

Already, Tesla has produced a prototype e-RAV4 and has delivered that vehicle to Toyota for testing. Tesla is a leader in the pure electric market, having brought its lithium-ion powered Tesla Roadster to the market in 2008. The California based automaker says that it is working on a second model, an electric sedan, that should be ready for the market in 2012.

Toyota purchased a $50 million stake in Tesla in May according to Automotive News. At that time Toyota and Tesla announced their desire to cooperate on the development of electric vehicles, parts, and production system and engineering support. Through this arrangement, Tesla seeks to learn and benefit from Toyota’s engineering, manufacturing, and production expertise, while Toyota aims to learn from Tesla’s EV technology, flexibility and quick turnaround.

Mutually Beneficial

The relationship may prove to be enormously beneficial to both companies. Tesla has wanted to remain independent, but with a cash infusion and stake from Toyota, the upstart automaker can aggressively pursue some options it might not be able to undertake had it not hooked up with Toyota.

Toyota, though a leader in hybrid technology, could use a boost in the area of pure electrification.  Moreover, following massive recalls and product glitches for the first half of 2010, the Tesla partnership focuses everyone’s attention on some of the positive things that Toyota can do. The recalls matter and the lawsuits will proceed, but Tesla will help Toyota to “move forward” as their tag line says.

Electric Lexus

Don’t think for a moment that the Toyota RAV4 will be the only model that will benefit from Tesla electrification. Rumor has it that the Lexus RX series, already available in hybrid form, could be the first pure electric Lexus to hit the market courtesy of Tesla Motors.

Source: Toyota Motor Corporation

Resources

CNN: Tesla to build electric Toyota Rav4

Los Angeles Times: Toyota-Tesla plan to build electric RAV4 shows partnership is serious