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Toyota's Problem With Plug-in Hybrids

By Jim Motavalli | Jun 2, 2009

NEW YORK CITY—The “Meeting of the Minds,” an international city planning conference held in the most urban of settings (the 60th floor of a JP Morgan Chase office tower) was perhaps an unlikely setting for a tutorial on the inherent problems of plug-in hybrid (PHEV) cars, but Toyota was the main sponsor and it had a point to get across.

The PHEV question was addressed both by Irv Miller, Toyota’s group vice president of environmental and public affairs; and Bill Reinert, the company’s national manager of advanced technology. Although Toyota will roll out its own leased fleet of 500 Prius-based PHEVs in what it calls a marketing experiment, their main point was that PHEVS cost too much for too little environmental benefit.

Instead of the 100 miles per gallon equivalent that some proponents claim, the plug-in reality is between 50 and 55 mpg, they said—not better than the third generation Prius that the company is not coincidentally just rolling out.

Miller said that the promise of the lithium-ion battery pack—used in both PHEVs and pure battery EVs—has led to “inflated expectations beyond the technical realities.” As evidence of irrational exuberance, he cited both San Francisco Mayor Gavin Newsom’s declaration that traditional hybrids are “yesterday’s technology” and President Barack Obama’s pledge to have a million PHEVs on the road by 2015.

For Miller, it’s not altogether clear that consumers are willing to pay a premium for the extra miles of all-electric range that PHEVs offer. “Judgment Day is just around the corner,” he said. “And the challenge here is that after the charge runs down you’re carrying around 300 pounds of dead batteries. The dog doesn’t hunt.”

Reinert cited studies from both Carnegie Mellon and Duke Universities that are skeptical of PHEV claims. In a chart-heavy presentation, he said that carrying around extra battery weight means increased diameter steel for subframes, bigger brake size and larger springs. “There’s a big weight penalty, and you’re always paying it,” he said. “There are diminishing returns when you keep increasing the size of the battery pack.”

Reinert says PHEV buyers will be trading in Priuses and other hybrids, not Hummers (further diminishing the green advantage). Of course, battery advances could considerably reduce the size, cost and complexity of larger-output packs, but Miller said that battery technology has lagged behind that of hydrogen fuel cells.

Toyota is scheduled to introduce an urban electric car (based on the tiny iQ) with a range of 50 miles in 2012, and a hydrogen fuel-cell car in late 2014 or 2015. But Reinert bemoaned the difficulties of urban EV charging, and Miller questioned Energy Secretary Steven Chu’s $100 million cut in 2010 hydrogen funding. The federal government, he said, “should not be playing technology favorites for political expediency.”

Jim Motavalli is the author of Forward Drive: The Race to Build Clean Cars for the Future, among other books. He has been covering the environmental side of the auto industry for more than a decade, and writes regularly on those topics for the New York Times.

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  •  
    1

    rawhite1969

    06/03/09 | Report as spam

    RE: Toyota's Problem With Plug-in Hybrids

    With all that Toyota has done well over the years, you have to think they are on track. BTW - what is the chance my employer will let me plug in my electric car while I'm at work so I could get back home again?

  •  
    2

    pserfass

    06/03/09 | Report as spam

    RE: Toyota's Problem With Plug-in Hybrids

    Great piece Jim. I feel like these days we only see the inflated claims side of the PHEVs. It's refreshing to see the broader perspective and a clear explanation of why we need not only hydrogen fuel cells, but a variety of options. Like with the stock market, a diverse, portfolio approach is the smart way forward.

  •  
    3

    jjpro

    06/03/09 | Report as spam

    RE: Toyota's Problem With Plug-in Hybrids

    Mr. Motavalli,

    Thank you for highlighting some of the shortcomings of battery electric vehicles; as I believe that the public has been lead astray as to the current state of batteries' readiness for use in the transportation sector. Batteries as a short-term "bank" for power-assist and regenerative braking capability do a good job. However, this article points out the trouble when you try and make batteries the primary energy carriers. Hydrogen plays this role with so many advantages. Fuel-cell vehicles deserve a good look by all and especially by Sec. Chu.

  •  
    4

    stormc@...

    06/04/09 | Report as spam

    RE: Toyota's Problem With Plug-in Hybrids

    It is hard to believe that anyone would seriously propose basing
    our transportation system on hydrogen. What is the source of
    the hydrogen to be used? Where is the infrastructure to deliver
    it? How does hydrogen constitute a reasonable energy
    distribution system even if you can make a workable fuel cell
    vehicle for under a million dollars?

  •  
    5

    felixkramer

    06/04/09 | Report as spam

    RE: Toyota's Problem With Plug-in Hybrids

    Toyota could be the leader in plug-in hybrids. Unfortunately, now that most automakers have begun to zig toward electrification, it has gone zag. Its spokespeople have been cherry-picking among studies. The company doesn't offer equivalent objections to any other solutions it advocates.

    Between now and 2012, when most carmakers will start to have plug-in cars in dealers' showrooms, we think that reality will prove them to have miscalculated.

    -- Felix Kramer, Founder, The California Cars Initiative (CalCars.org)

  •  
    6

    pserfass

    06/05/09 | Report as spam

    Re: felixkramer

    I don't think the auto companies are as biased as you think. Don't you think that Toyota and others would be rushing to be the first to put PHEVs on the road if they thought they'd really sell well and were universally the best technology option? They would. But the auto companies also realize that PHEVs are only part of the solution--an important part, but you need more than just PHEVs and more than only batteries. That's what this article is about. PHEVs can provide benefits, but there are limitations to PHEVs so we need more than one option to meet our transportation challenges.

    As you learn more about hydrogen, you'll realize that hydrogen and fuel cells are a very important part too. The portfolio approach is the smart approach UNTIL the vehicles get to market--THEN we can let the market decide and may the best vehicles claim the most sales.

    But we haven't reached the marketplace yet so it's too early to decide (and remember that different vehicles will get there at different times). So the important thing to do now, is: keep an open dialogue/debate about the different vehicles, and make sure resources are sustained so we're moving ALL the best options to the point where the market can decide which vehicles it wants to drive.

    I have a hunch that in the end we're going to have several vehicle options, because different vehicles will be needed to meet the very different needs of city, rural, commuter, long-haul and other kinds of drivers.

  •  
    7

    TickerShuffle

    06/05/09 | Report as spam

    RE: Toyota's Problem With Plug-in Hybrids

    Chu is bought and paid for by Big Oil. The Ethanol strategy he promotes utilizes Oil Industries infrastructure more than the revenue disrupting H2 solutions. Obama is either another sell-out politician succumbing to the pressures of Lobbyist or he just a plain fool for spending over 2 Billion for a pointless technology.

    Chu's organization continues to get 500 Milllion from British Petroleum. http://www.sourcewatch.org/index.php?title=Steven_Chu

  •  
    8

    TickerShuffle

    06/05/09 | Report as spam

    RE: Toyota's Problem With Plug-in Hybrids

    Storm, do you have any facts to back up your assumptions, because you are simply parroting the lies of 10 years ago.

  •  
    9

    TickerShuffle

    06/05/09 | Report as spam

    RE: Toyota's Problem With Plug-in Hybrids

    Felix, Honda Motors has made statements similar to Toyota in this article. Thy see H2 as a better long term solution. Clearly you have a bias towards Batteries, so perhaps you can explain and prove your theory of battery superiority for transportation applications. I can tell you right now, I will never by a car without at least a 200 mile range. Now for the golf course, batteries might be an okay idea, but my friend there is no way people are going to tolerate the limited range - and that's just the tip of the iceberg with electric cars. Regarding the Checy volt and "range extending" engine...I laugh because if you know anything about energy, you have to wonder, how will a gas motor create enough electricity (8 hours of charging usually) to charge the batteries while driving? Maybe you can limp home at 35 MPH but there is no way a gas engine will be able to create enough energy without being COMPLETELY inefficient on fuel consumption.

    Lastly, the lithium required to make these batteries is become more rare every day. Some people I work with in the electronics industry say we are near peak lithium production already. Even if capacity is increased we will be forced to source the resources from China and South America. Batter production costs are 85% resources, and they have not improved in cost after 10 years of economies of scale. Adding an enormous demand on the existing resource base will cause costs to soar.

    H2, I can put a solar panel on my car port, compress and store my own fuel all day while I am at work, come home and refuel...it's that simple. What's the problem?

  •  
    10

    callmemit

    08/10/09 | Report as spam

    RE: Toyota's Problem With Plug-in Hybrids

    In oil fields across the world Natural Gas is burned off as a waste product - Methane leaches in to the atmosphere from Landfills and animal manure and more Methane and natural Gas is being found or being unlocked from our planet. Sadly we do not have an effective network of refilling stations for these cleaner burning fuels.
    Dual Fuel conversions are available at dealers - Why Not?

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