SELLING AGAINST HYBRIDS
SELLING AGAINST HYBRIDS Subaru Achieves “Zero Landfill” Status At SIA
Clean air is just one part of a clean environment. The Subaru of Indiana Automotive (SIA) plant in Lafayette, Indiana, has worked hard to attain “zero landfill” status. In doing so, it has become the first auto-manufacturing plant in the country to recycle or re-use all of the waste that it generates. The secret was to take on recycling a little bit at a time: The biggest “waste stream” first, then the next, and so on. For example, paint sludge that used to be thrown away is now dried to a powder and shipped to a plastics manufacturer, which uses it in parking lot bumpers and guardrails. Even the plant’s burned-out fluorescent light tubes are ground up and sent to a company that uses the glass in reflective stripping. The small amount of waste that the plant generates is sent to an incinerator in Indianapolis, where it helps produce steam to heat some of the city’s downtown buildings. There are plans in the works to reduce even this minor amount of refuse. Subaru understands its responsibility to maintain an environmental management system that goes beyond meeting the regulations, and the example set by SIA in Lafayette proves that an automobile manufacturing plant can do its part.
Unresolved Issues With Hybrids
Hybrid vehicles are new to the market, and not all of the long-term potential problems have yet been solved. Some that have been identified include:
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Battery life versus vehicle life – What happens when the batteries wear out at 100,000 miles? Who will replace them? At what cost? Battery disposal/recycling – How and where will these hazardous materials be handled? Winter operation – Will cold temperatures reduce battery efficiency? The vast majority of Toyota Prius vehicles have been sold in California and Western states. Do hybrids have a “track record” of dealing with cold-weather performance? Safety in a serious collision – Will fire & rescue workers be wary of dealing with high voltage and potential battery leakage? “Your mileage may vary” – Why are so few hybrid reviewers able to achieve fuel economies as high as the EPA estimates? Years of operation needed to make up initial cost differential – Does the higher price of a hybrid really make financial sense if it can take 16 years or more of driving before you break even?
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Vehicle Emissions Acronyms
Since the federal government first established the Clean Air Act in 1963, a veritable alphabet soup of bureaucratic acronyms has arisen to describe ever more stringent exhaust emission requirements. The designations have become somewhat standardized, although the federal and California standards (which have now been adopted by New York, Vermont, Massachusetts and Maine) do differ in their terminology. Here’s a rough description of the standards: California Designation
LEV I
Why The Interest In Hybrids?
On paper, it seems like a great idea: Attach an extra battery-powered electric motor to a small gasoline engine to boost performance only when it’s needed, and so increase overall efficiency. It’s called a “hybrid,” and lately it’s been the darling of the media, environmentalists and politicians. But you can’t get something for nothing, and in the hybrid’s case, it’s doubtful that the thousands of extra dollars that the technology and hardware costs can ever be recouped by the improved fuel economy over the life of the vehicle.
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Federal Designation
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Description
Low Emissions Vehicle Phase I. All new cars sold in California starting in 2004 had to meet this standard, which is being phased out, or a better emissions standard. (2006 is the last model year for the LEV I standard.) Low Emissions Vehicle Phase II. Adopted in 1999 and introduced in 2004. NOx emissions are reduced compared to those of LEV I vehicles. Ultra Low Emissions Vehicle. 50-percent cleaner than an average new 2003 model-year car. Super Ultra Low Emissions Vehicle. Much lower emissions – 90-percent cleaner than an average new 2003 model-year car. 10-year/120,000-mile defects/performance warranty on emissions controls. Partial Zero Emissions Vehicle. Basically, a SULEV vehicle that meets additional requirements: Zero evaporative emissions from the fuel system, and a 15-year/150,000-mile defects/performance warranty on emissions controls and on-board diagnostics (OBD). Advanced Technology Partial Zero Emissions Vehicle. Basically, PZEV standards plus “ZEV-like” characteristics. In practice, only compressed natural gas or hybrid vehicles meet this standard. Zero Emissions Vehicle. No emissions from the tailpipe (pure electric vehicles or hydrogen fuel-cell vehicles).
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LEV II
Tier 2 bin 5
ULEV SULEV
— Tier 2 bin 2
PZEV
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AT PZEV
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Compared to the gasoline-engine vehicles in this comparison, the hybrids (Ford Escape, Honda Accord, Lexus RX 400h, Toyota Prius and Highlander):
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ZEV
Tier 2 bin 1
Have an MSRP that is, on average, $7,743 higher On average, weigh 316 pounds more Deliver an average annual fuel savings of only $402.40
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Subaru vehicles meet a variety of federal and California emissions standards, ranging from LEV I to PZEV. All 2006 Subaru vehicles are 50-state emissions certified.
SELLING AGAINST HYBRIDS
SELLING AGAINST HYBRIDS
Case Study: Escape vs. Escape Hybrid vs. Forester
The 2006 Ford Escape XLS comes equipped with a 2.3-liter 153-horsepower inline four-cylinder engine and gets an EPA estimated 22 mpg city and 26 mpg highway. It has a base MSRP of $20,070. For an additional $6,830, you can get a Ford Escape Hybrid, with a 133-horsepower, 2.3-liter inline four, plus a 65-kw (87-hp) electric motor, that gets an EPA estimated 36 mpg city and 31 mpg highway. At first glance, the improved mileage is impressive, but even if gasoline were to rise to $3.00/gallon, the $425 per year of savings in gasoline (using 50/50 percent city/highway driving) means that it would take more than 16 years of driving before the Escape’s expensive hybrid system paid for itself.
DO THE MATH: 12,000 miles/year with an average mileage of 24 mpg (50/50 city/highway) for the Escape requires 500 gallons of gasoline. At $3/gallon, that’s $1,500 per year. To go the same distance with an Escape Hybrid getting an average of 33.5 mpg (50/50 city/highway) will require 358 gallons of gasoline, costing $1,075. The difference of $425 per year in gasoline savings divides into the $6,830 price premium to result in a payback (based upon fuel purchase) of 16.1 years.
THE SUBARU FORESTER ALTERNATIVE As a direct comparison, consider a Subaru Forester 2.5 X. Its 2.5-liter Boxer 4 engine produces 173 horsepower and returns an EPA estimated 23 mpg city and 28 mpg highway with a four-speed electronic directcontrol automatic transmission. The Forester has the clear Subaru advantages of: I Symmetrical All-Wheel Drive I A powerful Boxer 4 engine I A low center of gravity to enhance handling and driving enjoyment In addition, buying the Subaru Forester instead of the Ford Escape Hybrid will save you $2,755 (based upon
MSRP). As a result, you’d have to drive the Escape Hybrid for over 8 years to make up this price difference.
THE NEW MATH: The Subaru Forester averages 25.5 mpg (50/50 city/highway), and costs $2,755 less than the Escape Hybrid. The Forester has an average annual fuel bill of $1,412 vs. $1,075 for the Escape Hybrid. That’s $337 more per year for gasoline. You’d have to drive the Escape Hybrid for 8.2 years to make up for its price premium vs. the Forester!
You should also note that the 2006 Subaru Forester 2.5 X is rated as a LEV II low emissions vehicle.
Hybrid To Non-Hybrid Comparison
Ford Escape XLS 4x2 Base MSRP Price premium Curb Weight Gasoline engine Horsepower @ rpm Torque @ rpm Electric motor rating EPA City/Highway Estimate 50/50 Combined MPG Average annual fuel cost Average annual fuel savings YEARS FOR PAYBACK $20,070 — 3,256 lb. 2.3-liter I4 153 @ 5,800 152 @ 4,250 — 22/26 mpg 24 mpg $1,500 — — Ford Escape Hybrid 4x2 $26,900 $6,830 3,627 lb. 2.3-liter I4 133 @ 6,000 124 @ 4,250 65 kw 36/31 mpg 33.5 mpg $1,075 $425 16.1 yrs. Honda Accord LX $23,950 — 3,309 lb. 3.0-liter V6 240 @ 6,250 212 @ 5,000 — 21/30 mpg 25.5 mpg $1,412 — — Honda Accord Hybrid $30,140 $6,190 3,501 lb. 3.0-liter V6 255 @ 6,000* 232 @ 5,000* 12 kw 29/37 mpg 33 mpg $1,091 $321 19.3 yrs. Toyota Corolla CE $14,005 — 2,595 lb. 1.8-liter I4 130 @ 6,000 125 @ 4,200 — 32/41 mpg 36.5 mpg $986 — — Toyota Prius Hybrid $21,275 $7,270 2,890 lb. 1.5-liter I4 76 @ 5,000 82 @ 4,200 50 kw 60/51 mpg 55.5 mpg $649 $337 21.6 yrs. Toyota Highlander V6 4x2 $25,590 — 3,650 lb. 3.3-liter V6 215 @ 5,600 222 @ 3,600 — 19/25 mpg 22 mpg $1,636 — — Toyota Highlander Hybrid 4x2 $33,030 $7,440 4,070 lb. 3.3-liter V6 208 @ 5,600 212 @ 4,400 123 kw 33/28 mpg 30.5 mpg $1,180 $456 16.3 yrs. Lexus RX 330 AWD $37,425 — 4,065 lb. 3.3-liter V6 230 @ 5,600 242 @ 3,600 — 18/24 mpg 21 mpg $1,714 — — Lexus RX 400h Hybrid AWD $48,410 $10,985 4,365 lb. 3.3-liter V6 208 @ 5,600 212 @ 4,400 173 kw 31/27 mpg 29 mpg $1,241 $473 23.2 yrs.
The Bottom Line...
From a strictly financial view, the high cost and many years it takes for a hybrid vehicle to pay for itself just don’t make sense. And, as is always the case, the inherent Subaru passive and active safety, from its robust ring-shaped reinforcement body frame construction to its Subaru All-Wheel-Drive systems are features that cannot be found on any hybrid or non-hybrid vehicle from other manufacturers. In summary:
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The extra cost for a hybrid won’t be made back by its fuel savings in any reasonable time frame
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The environmental advantage of a hybrid is slight, especially compared with the Subaru range of LEV II and PZEV vehicles. According to the California Air Resources Board, gasoline-engine vehicles meeting PZEV emissions standards sometimes have even lower emissions than hybrid or alternative-fuel vehicles. For the 2005 model year, 28 percent of all Subaru vehicles sold in California met the PZEV requirements. On or about October 1st all 2006 MY Legacy and Outback vehicles equipped with the 2.5 Liter normally-aspirated engine will be PZEV certified for sale in CA, NY, MA, VT, and ME.
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The unique traction and safety benefits of the Subaru AllWheel Driving System—the Boxer engine, Symmetrical All-Wheel Drive and four-wheel, long-travel independent suspension simply isn’t available in any hybrid vehicle.
Notes: The chart is based on published MSRP as of 8/05. Fuel savings are based on driving 12,000 miles per year with gasoline prices at (a high estimate of) $3.00 per gallon. The Toyota Prius comparison to the Toyota Corolla is not as direct as other comparisons, since there is no non-hybrid vehicle using the Prius body/chassis. * The horsepower and torque figures for the Honda Accord Hybrid include the contribution from the electric motor.
