Autoline on Autoblog with John McElroy

Filed under: Fiat, Autoline on Autoblog

Fiat Eschews EV’s, Chooses CNG

John McElroyWhile every other major automaker in the world is pouring billions of dollars into research for electric vehicles, Fiat doesn’t seem to be all that interested in electric cars. Instead, it’s putting its efforts into producing cars that can run on compressed natural gas. Even more importantly, it’s offering what it calls bi-fuel cars, which can run on both gasoline and CNG.

In fact, the Italian automaker is more bullish on bi-fuel cars than it is on diesels. It prides itself on having the lowest average CO2 emissions of any major automaker in Europe. Low emission ratings are a big deal to European car buyers. And Fiat believes it can continue to maintain its lead with engines that can run on both gasoline and CNG.

Most of Fiat’s sales come from the low-end of the market, tiny A- and B-class cars that don’t cost a lot of money. The people who buy these cars typically can’t even afford to pay the premium to get a diesel engine. And forget about hybrids or electric cars, they’re simply further out of their price range.

Now Fiat thinks it has another idea that could push it far ahead of everyone else when it comes to reducing CO2 emissions. It wants to combine hydrogen gas with compressed natural gas and offer the cleanest burning engines in the industry.


John McElroy is host of the TV program “Autoline Detroit” and daily web video “Autoline Daily”. Every week he brings his unique insights as a Detroit insider to Autoblog readers.


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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Wed, 13 Oct 2010 18:20:00 EST. Please see our terms for use of feeds.

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Autoline on Autoblog with John McElroy

Filed under: Government/Legal, Autoline on Autoblog

GOVERNMENT WANTS 60-MPG CAFE

John McElroyLast year, when the federal government set Corporate Average Fuel Economy (CAFE) standards at roughly 35 miles per gallon by 2015, automakers squirmed uncomfortably. Though that should be an achievable target, it won’t be easy. It means Americans will have to buy several million more small cars a year, they’ll have to buy fewer trucks and SUVs, and they’ll have to pay thousands of dollars more for the technology needed to meet those standards.

But now it sure looks like the government is getting ready to set a new fuel economy standard of 60 mpg by 2025. According to Ward’s, both the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) will release the new standard next month. Is it at all realistic to think that we can double the fuel economy standard in a decade?

Remember, that 60 mpg target is a fleet average. That means all of the cars and trucks and SUVs and crossovers and vans that an automaker sells will need their fuel economy to average out at 60 mpg. That’s not going to be easy. It’s not just a matter of building the right kinds of cars, it’s about getting people to buy them.


John McElroy is host of the TV program “Autoline Detroit” and daily web video “Autoline Daily”. Every week he brings his unique insights as a Detroit insider to Autoblog readers.


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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Mon, 16 Aug 2010 18:29:00 EST. Please see our terms for use of feeds.

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Autoline on Autoblog with John McElroy

Filed under: Autoline on Autoblog

Car Prices Will Climb For Years

Have you’ve been watching car prices lately? They seem to go up every month. Forget everything you’ve been reading about sales incentives, bargain leases or low-cost financing. They just mask the fact that automakers are quietly bumping up MSRP’s every chance they get.

In other words, they quietly raise the price of a car and then loudly announce the deals they’re offering. Sure, you get a discount. But that discount comes off an ever-higher price.

I’ve said it before and I’ll say again. By 2015, the average new car in the American market is going to cost about $35,000. I’m not talking about the MSRP, which is already at an average of $33,000. I’m talking about the transaction price, what people actually pay for a car.

There are a variety of reasons why this is happening. But it basically comes down to this: even though car sales are very weak, we’re actually in a seller’s market. The planets are in alignment for automakers to raise their prices, especially for General Motors, Ford and Chrysler. And it’s only going to get worse.


John McElroy is host of the TV program “Autoline Detroit” and daily web video “Autoline Daily”. Every week he brings his unique insights as a Detroit insider to Autoblog readers.


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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 30 Jul 2010 16:32:00 EST. Please see our terms for use of feeds.

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