Japan's New Green Car

Detroit will have to work hard to catch Japanese automakers in the race to produce hybrids, electric cars, cleaner diesels, and fuel-cell vehicles.

Since General Motors (GM) first showed its Chevrolet Volt plug-in hybrid (BusinessWeek.com, 1/7/07) concept car at the North American International Auto Show in January 2007, the industry hype has been unrelenting.

Any lingering concerns over the cost and reliability of lithium-ion batteries, a technology not yet used in any mass-production hybrid car but which will help power the Volt, are outweighed by the excitement that GM will finally have a vehicle capable of rivaling Toyota's (TM) Prius hybrid as the green car champion.

Yet when the Volt arrives in November 2010, assuming GM meets its challenging deadline, can the U.S. automaker make up for lost time in the race with Japan's automakers to produce cleaner, more fuel-efficient cars? Even if the Volt is as impressive as GM hopes, a slew of recent announcements by Japan's automakers suggest closing the gap will be tough.


A Lot More Hybrids to Come

From now through 2010 and beyond, they are pushing ahead with plans for hybrids, electric cars, cleaner diesels, and even, further down the road, fuel-cell vehicles (see "Japan's Green Drive"). The days when auto executives mocked the Prius as a loss-making fad seem long past. "Without focusing on measures to address global warming and energy issues, there can be no future for our auto business," Katsuaki Watanabe, Toyota's president, said at an environmental forum in Tokyo on June 11.

To meet its targets, Toyota will roll out several new models. Next year, Toyota is expected to add two new cars that it will sell only as hybrids, one badged as a Toyota, the other a Lexus. A new version of the Prius, which promises to be lighter and more fuel-efficient than the current generation, should also appear in 2009, and a plug-in version, which like the Volt will use lithium-ion batteries, is due to arrive a year later. By 2010, Toyota is also believed to be planning two more dedicated hybrid models, including a new hybrid minivan.

Source: http://www.businessweek.com/globalbiz/content/jul2008/gb2008071_763199.htm