Toyota Electric Car May Only Have Half the Range of GM's
Link to Original Article @ Bloomberg Toyota Motor Corp.'s plug-in electric car may have less than half the range of a competing vehicle planned by General Motors Corp., people with knowledge of both companies' development programs said. GM wants its Chevrolet Volt to travel at least 40 miles after being charged at a normal household outlet, while the Toyota model may go no more than 20 miles on a single charge, said the people, who asked not to be identified because details of the plans are still secret. Beating Toyota in new technology like rechargeable vehicles is part of Chief Executive Officer Rick Wagoner's plan to show GM can compete with the Japanese automaker. Toyota is poised to surpass GM as the largest automaker this year, helped by fuel- efficient cars such as the Prius, the world's top-selling hybrid. "The latest arms race is being driven by GM,'' said Jack Nerad, an analyst at Irvine, California-based Kelley Blue Book and author of ``The Complete Idiot's Guide to Hybrid & Alternative Fuel Vehicles.'' ``They one-upped everyone with the Volt, and they are saying they aren't going to be out-greened by anyone anymore.'' The market for cars less reliant on gasoline is growing as automakers face stricter exhaust and carbon pollution rules from governments around the world. The companies also are under pressure to boost fuel economy amid U.S. gasoline prices that reached a record $3.22 a gallon in May. Breakthrough Potential Prius shows the potential for breakthrough technology. Toyota sold 5,562 of the cars in 2000. Sales tripled the following year, and totaled 110,565 units this year through July. That makes the Prius the 12th most popular vehicle in the U.S., according to Autodata Corp., a Woodcliff Lake, New Jersey, company that monitors the industry. Prius helped the Toyota City, Japan-based automaker earn a record $14 billion in its last fiscal year. GM lost $1.98 billion in 2006. GM shares have fallen 23 percent the last five years while Toyota's have more than doubled. GM shares fell 97 cents to $32.42 at 2:19 p.m. in New York Stock Exchange composite trading. Toyota's American depositary receipts rose 97 cents to $119.59. Road Test Toyota said on July 25 it will road-test experimental plug- in Prius cars this year in the U.S. and Japan. The cars go about eight miles on a charge, Toyota Executive Vice President Masatami Takimoto said at a press conference in Tokyo. A plug-in Prius for the consumer market would probably go farther, said Jaycie Chitwood, a U.S. senior strategic planner with Toyota's advanced vehicle group in Torrance, California. She declined to provide Toyota's target range. Toyota believes producing an electric car with a range of 40 miles or more can't be done at a cost that would make the vehicle affordable for most consumers, she said, citing the need for advanced batteries and special recharging equipment. ``We're not going that route because of those obstacles,'' she said. A plug-in Prius probably would have an electricity-only range of 20 miles or less, and maybe as little as 10 miles, according to a person with direct knowledge of Toyota's plans who didn't want to be identified. Lutz Confident GM Vice Chairman Bob Lutz said in June he's confident GM can overcome any obstacles to producing an electric car with a 40-mile range. GM says that target is significant because more than half of Americans live within 20 miles of their jobs. The automaker hopes to patent technology that would extend the range beyond 40 miles, people with direct knowledge of the plans said. GM showed its Volt concept car in January and aims to have a drivable prototype in early 2008 that travels about 10 miles on a charge, the people said. The 40-mile Volt would follow in 2009 and might go on sale by the end of the decade, they said. GM spokesman Scott Fosgard declined to comment on the timetable. The company poured more than $1 billion into its EV-1 electric car a decade ago. GM abandoned the vehicle, which needed frequent recharging, after leasing 800 of them in four years. The Volt will face similar challenges, said K.G. Duleep, managing director of Arlington, Virginia-based Energy & Environmental Analysis Inc. ``All the power has to be delivered by the battery, and that's a lot of battery,'' said Duleep, who advises automakers on engine technology. ``This will not be cheap.'' Beth Lowery, GM's vice president for environmental issues, declined to say what the Volt will cost. She said it will be ``affordable.'' Gasoline-electric hybrids such as Prius and GM's Chevrolet Tahoe sport-utility vehicle use electric motors only at start-up and lower speeds, and rely on engine power and friction from braking to recharge the battery. 'Bigger Risk' The Volt is charged at a household outlet and uses an onboard engine to generate electricity when the battery runs down. The engine, powered by gasoline, diesel or hydrogen fuel cells, only recharges the battery and doesn't drive the wheels. Its full range would be about 640 miles on a tank of gasoline. Electric-vehicle fans are frustrated with Toyota for not having a plug-in Prius by now and with GM for killing the EV-1, said Chris Paine, whose 2006 documentary, ``Who Killed the Electric Car?'' criticized GM's decision. ``The market is going to sort out which one is best,'' Paine said in an interview from San Francisco. ``GM is taking a bigger risk, and I applaud them for that.''