Friday, December 07, 2007

New Fiat 500: "European Car of the Year"; Snazzy Updated Version of Tiny Italian Classic

The ANNOTICO Report

The overall title of "European Car of the Year” went to the new Fiat 500, a snazzily updated version of a tiny Italian classic.

In November Green Car Journal awarded the accolade of Americas "Green Car of the Year" for 2008 to the Chevy Tahoe Hybrid, with a 5.3 litre V8 engine supplemented by a small electric battery. The most fuel-efficient version will do only around 22mpg.

Some models of the Fiat 500, will do around four times better than the Tahoe on fuel economy, (or 88 mpg) !!!!

Fuel efficiency
Forcing Americans into Smaller Cars

From Economist.com

December 5th 2007

AP

ASK a European to describe a typical American car in one word and the answer will invariably be "big". An energy bill set to pass through the House of Representatives this week is likely to number the days of the vast automobiles that are such a potent symbol of American power. On Friday November 30th a deal was brokered by John Dingell, a pro-car Democrat, and Nancy Pelosi, speaker of the house, to make cars travel on average no fewer than 35 miles per (American) gallon by 2020. As a measure of the task ahead, no car in Fords range is yet so thirstless.

Americas embattled carmakers have reluctantly agreed to the new efficiency standards. Their only hope of a reprieve, if the legislation makes it through Congress, is a presidential veto. George Bush objects to other parts of an energy bill that requires energy companies to produce 15% of electricity from renewable sources and ditches billions of dollars of tax breaks for oil companies. Nonetheless, in acquiescing to the proposals American car companies have accepted the inevitable:lawmakers want cars that are more fuel efficient to mitigate environmental damage and improve Americas energy security. 

The new corporate average fuel economy (CAFE) standards have been a long time coming. The 35mpg target for average fuel efficiency across the range of a car companys vehicles in 2020 would be the first lifting of CAFE standards for cars since 1985. The current standard for corporate average fuel economy of 27.5mpg for cars was introduced that year. The standard for light trucks has been slowly lifted over the years and now stands at 22.2mpg. Since 1985 the fuel economy of cars and trucks has barely shifted. Although engines have become more efficient cars have also grown bigger and beefier. Drivers have become used to the added comforts that now come as standard and new safety features have also piled on the pounds.

So will the American love affair with the sport-utility vehicle (SUV) have to end? Some of the ardour has already gone out of the relationship. The spike in fuel prices after Hurricane Katrina, and high prices since, put a crimp on SUV sales. That has dealt a blow to a domestic car industry already reeling from the competition of lower-cost Asian carmakers.

One concession that Americas carmakers had written in to the current bill is that cars and light trucks (including SUVs) will not be counted separately within the 35mpg limit but will have different targets in the transition period. SUVs will be allowed to remain relatively thirsty. Thereafter, carmakers will have to keep to the new target by selling enough small petrol-sippers to offset the gas guzzlers in their range. The ability to make some bigger cars is important for American firms. Smaller cars cost nearly as much to design and assemble as bigger models but profit margins are far tighter.

Americas carmakers are willing to go along with the deal and believe they can meet the tough targets. Cars and engines will become smaller and more use will be made of diesel, turbocharging, biofuels (which will attract a CAFE credit) and hybrid technologies. Admirers of muscle cars will shed a tear. It seems that Americans will have to become a bit more like Europeans.

That shift could be difficult. In November Green Car Journal  awarded the accolade of Americas "Green Car of the Year" for 2008 to the Chevy Tahoe Hybrid, with a 5.3 litre V8 engine supplemented by a small electric battery. The most fuel-efficient version will do only around 22mpg. The overall title of "European Car of the Year"  went to the new Fiat 500, a snazzily updated version of a tiny Italian classic. Some models will do around four times better than the Tahoe on fuel economy.

Europeans have long been accustomed to scooting round in pocket-sized cars. Heavy taxes on petrol have provided plenty of motivation. Proposed EU limits on carbon-dioxide emissions (a proxy for fuel efficiency) will ensure even greater efficiency in future. American cars have plenty of catching up to do.

http://www.economist.com/business/displaystory.cfm?story_id=10249454

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