Tag Archives: hybrid vehicles

EVs in the UK in May

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Yes, more are being bought. By fleets. . .

By Gary S. Vasilash

Although the number of vehicles sold in a given month in the UK isn’t particularly large, from a percentage standpoint there are undoubtedly some people at US OEMs who wish they’d have the kind of EV registration numbers that exist in the UK:

According to the Society of Motor Manufacturers and Traders (SMMT), in May EVs have 17.6% of the market.

While the whole market was up 1.7% in May, SMMT figures show that EV sales were up 6.2%. Clearly, EVs in the UK are doing rather well.

Do British consumers know something that American consumers don’t?

Well, maybe not.

Turns out that consumer retail EV sales were actually down 2%.

The uptick in the EV market came from fleets.

In the UK there is something called the “Vehicle Emissions Trading Scheme” that mandates zero-emissions vehicles represent 22% of a manufacturers’ annual sales.

Apparently there are incentives available to businesses for getting EVs that are not open to consumers. The SMMT believes that it is necessary for “the next government to provide consumers with meaningful purchase incentives.”

Conservative leader Rishi Sunak, current UK prime minister, will square off against Labour leader Keir Starmer on July 4.

Mike Hawes, SMMT Chief Executive:

“As Britain prepares for next month’s general election, the new car market continues to hold steady as large fleets sustain growth, offsetting weakened private retail demand. Consumers enjoy a plethora of new electric models and some very attractive offers, but manufacturers can’t sustain this scale of support on their own indefinitely. Their success so far should be a signpost for the next government that a faster and fairer transition requires carrots, not just sticks.”

While of the subject of incentives and such, it should be noted that in May plug-in hybrids were up 31.5% are regular hybrids up 9.6%, both handily outperforming EVs.

And while the May ’24 market share for plug-ins is 8% and hybrids 13.2%, each below the EV’s 17.6%, combined they represent 21.2% of the market.

Evidently consumers aren’t against reduced emissions but are in favor (favour?) of the convenience and range provided by hybrids.

2025 Toyota Camry XLE

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Shake it up. . .

By Gary S. Vasilash

It may seem that the most controversial move made by Toyota for the 2025 Camry—the  ninth generation of the midsize sedan—was to make all of them, be it FWD or AWD, LE, SE, XLE, or XSE trim, hybrids.

2025 Camry XLE. Stylish, well-equipped, and a hybrid. (Image: Toyota)

That’s right: Every Camry is a hybrid.

Under the hood across the board is a 2.5-liter, four-cylinder engine supplemented by electric motor generators such that the FWD version produces 225 net-combined horsepower (engine + motor) and the AWD 232 hp. This is Toyota’s fifth-generation hybrid system. Yes, they’ve been at it a while.

Depending on the drive configuration the fuel efficiency goes from a low of 44/43/44 mpg, city/highway/combined, for the XSE AWD (the top of the line) to 53/50/51 mpg for the LE FWD. To call 44 mpg combined “low” is, well, ridiculous.

Lots and lots and. . .

Realize that the Camry is the perennial best-selling car in the U.S. (22 years running), with the company delivering 290,649 units in the U.S. last year, units produced by Toyota in its manufacturing complex in Georgetown, Kentucky. (During the history of the plant, which opened in 1986, there have been more than 11 million Camrys built within those ever-growing walls. Yes, the expansion there has been notable such that today there is 9-million square feet under roof, which, according to Toyota, is equivalent to the size of 157 football fields.)

One might think that Toyota would not want to rock the proverbial boat, to make changes that might seem upsetting to what is clearly a loyal base of buyers. It’s not like there haven’t been hybrid powertrains in Camrys.

There have—since model year 2008 (calendar year 2007).

But it has always been a powertrain selection until now. You could get a Camry with or without electrification.

Yet the product planners at Toyota decided that the best thing to do was to go all in on hybrids.

Yikes! one might think.

The time is right

But broader market timing seems propitious, as there is the swerve away from full electric vehicles to electrified vehicles, a.k.a., hybrids. In 2023 Toyota Motor North America overall sales—including Lexus models, its bZ4X electric and Mirai fuel cell—included 29.2% hybrid models, up from 23.9% in 2023. One can only imagine the number when 2024 is calculated.

What I found to be surprising about the Camry XLE wasn’t under the hood but on the inside: there is trim covered with Dinamica, a microfiber, that has a quilted pattern. It is light gray. Black is available, as well.

Said another way: there is fabric covering surfaces on the door panels and dash board where you otherwise would see leather or plastic. The material is produced with recycled polyester without the use of organic solvents, so it is comparatively environmentally advantageous.

Yes, that trim is actually a fabric.

It is also surprising for those of us who are more used to seeing smooth materials that are naturally or mechanically grained.

A generational difference

However, when I showed the Camry to a Gen Z niece, she thought the interior was the most wonderful she’d ever seen. And when I explained that the car in question is a hybrid, it gained significantly more points in her book.

So what might seem like a risky move by Toyota is undoubtedly a correct one.

It is often said that a given generation doesn’t want to buy the type of vehicles that they’re parents had driven them in. In my niece’s case it was a Honda Odyssey and Ford Flex.

She and her husband presently drive a pickup for no reasons of utility.

But it seems that a sedan is on the table for her. And given what Toyota has done with the ’25 Camry, it is something that is of even greater interest.

And here’s another thing to consider: at her age she has a whole lot of vehicles in her future, so if she finds appeal in the Camry, odds are good that the company will get more business from her in the future. Given the reliability of Toyotas and given that the Camry is full of tech for purposes of entertainment and safety, it seems that the edge of style makes it all the more attractive.

Certainly a clever move by Toyota.

Are There Enough Exclamation Points for EV Sales?

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By Gary S. Vasilash

This won’t garner any headlines:

78.81% of vehicle purchases in the U.S. in 2023 were for vehicles with gasoline engines, according to Experian’s “State of the Automotive Finance Market, Q4 2023.”

The number that will is:

8.55% of the vehicles purchased were electric vehicles.

But of that “purchase,” 30.7% of the EVs were leased, which is essentially renting with the option to buy, not outright obtaining (i.e., according to the Oxford English Dictionary, the verb purchase means “To acquire in exchange for payment in money or any equivalent; to buy.” And the way the Inflation Reduction Act is constructed, for many OEMs leases are the only way that consumers can get a $7,500 purchase incentive).

A number that also won’t get large type:

9.83% were hybrids.

That number alone is about 13% greater than the EV number.

But arguably the 2.02% of vehicles purchased in 2023 that were plug-in hybrids could be added to the hybrid number, which would go to 11.85%.

Odds are that hybrid number is going to continue to grow, as will the EV number, but even though it will continue to be higher than the EV number for the next several years, you can bet every rise in EV sales will continue to get outsized attention—until the novelty passes.

‘Consumer Reports’ on Top Models & PHEVs

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By Gary S. Vasilash

Although the folks at Consumer Reports are finding increased interest in and performance of electric vehicles (EV), it seems as though plug-in hybrids (PHEVs) are really something of a sweet spot based on its annual top-10 vehicle list.

CR’s Jake Fisher, senior director of Auto Testing, points out that there are four key elements that go into the determination of what vehicles make the list—and make it to the top of the list, which are:

  • Road testing
  • Active safety and crash testing
  • Owner satisfaction
  • Predicted reliability

While the first two are objective and the last two are subjective, know that the nonprofit consumer organization bases the last two on more than 300,000 member surveys, so there are solid metrics behind them.

The Results

So here are the top 10:

  • Subcompact SUV: Subaru Crosstrek
  • Compact SUV: Subaru Forester
  • Small car: Mazda3
  • Midsize car: Toyota Camry Hybrid
  • Small pickup: Ford Maverick/Maverick Hybrid
  • Midsize SUV: Toyota Highlander Hybrid
  • Luxury SUV: BMW X5/X5 PHEV
  • Hybrid/PHEV car: Toyota Prius/Prius Prime
  • PHEV SUV: Toyota RAV4 Prime
  • Electric vehicle: Tesla Model Y

The PHEV Challenge

One of the challenges vis-à-vis people going to a PHEV rather than a conventional hybrid (HEV) or a full EV is, Fisher explains, their understanding of what a PHEV is and how it would fit into their driving regime.

RAV4 Prime: hybrid with a plug. (Image: Toyota)

To simplify things, CR has modified the way it provides information about fuel economy for PHEVs by treating the all-electric range provided as a “bonus” added to the results when the vehicle is operating in its “charge-sustaining mode” (a.k.a., simply driving on its engine).

A fascinating comparison that CR made is to put like-to-like vehicles up against one another with the differences being in their propulsion system—PHEV vs. ICE, HEV and full EV—and then how much it will cost the consumer based on both the vehicle price and the cost of energy. The assumptions are that the owners will plug in their vehicles that have plugs, drive 40 miles per day, and take four 500-mile trips annually.

While it may not be a surprise that the PHEV version of the BMW 330 is more cost-effective than the gasoline-only version, there are a couple of surprises:

The Hyundai Tucson HEV saves more money than the PHEV version.

And while it seems to be accepted wisdom that owning an EV means far less cost for energy, the Kia Niro PHEV is actually better for the pocketbook than the Niro EV.

Ford: Hybrids Should Be the Story

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By Gary S. Vasilash

Much of the attention given to Ford’s Q4 2023 earnings call last week has been focused on CEO Jim Farley’s comment:

“[W]e made a bet in silence two years ago. We developed a super-talented skunk works team to create a low-cost EV platform. It was a small group, small team, some of the best EV engineers in the world, and it was separate from the Ford mothership. It was a start-up.

“And they’ve developed a flexible platform that will not only deploy to several types of vehicles but will be a large installed base for software and services that we’re now seeing at Pro.”

Somehow the inherent mystery of a “skunk works” has gotten people all excited.

Would they be so excited to know that the skunkworks methodology goes back to 1943 in the aircraft industry?

Yes, an 80-year-old approach.

Well, You’ve Got to Build It. . .

The other thing about this is that it is one thing for an R&D team operating independently to develop something and a whole other thing for that development to be engineered for and launched in production.

Launches have been something that Ford has been finding a bit troubling, so there’s that.

And it should be noted that the company also announced last week that its Ford e operation—as in the electric vehicles—lost $4.7 billion last year and the company anticipates losing $5 to 5.5 billion this year on Ford e.

The excitement of the skunk works project was certainly helpful from diverting some attention to that red ink.

What About This?

But what was largely overlooked was Farley’s comments on hybrids.

As in,

“Our global hybrid sales were up 20% last year, and we expect them to be up 40% this year.”

And:

“We now have the No. 1 and No. 2 best-selling hybrid trucks in the U.S. Maverick is No. 1. And we’re the No. 3 hybrid brand in the U.S. behind Toyota and Honda. But unlike them, our hybrids really sell best on trucks for our side.”

Given that Farley said “And margins on hybrids are closer to ICE, much higher than EV margins,” you’d think hybrids would be the headline going forward if for no other reason than the company can make money on them, something that it is not going to see on the EV side of the business until. . . . Well, that remains to be seen.

Maverick hybrid: Fuel efficiency and the energy to bust out the beats. (Image: Ford)

Not Exactly a Strong Third

While it is nice that Farley is so bullish about the company’s hybrid performance, it is worth really putting that into context.

Of course its hybrids “really sell best on trucks” because with the only hybrid Ford has without a box on the back is the Escape.

And as for it being number three, know that these are the number of hybrid sales for the three companies in 2023:

  1. Toyota:         523,664
  2. Honda:         293,640
  3. Ford:            133,748

In other words, it sold less than half of what Honda did and about a quarter of what Toyota did.*

So while the claim is factually true, one should perhaps not be too chuffed about the Ford hybrid performance.

About a quarter of Toyota and Honda sales are hybrids.

About 7% of Ford’s sales are hybrids.

Did I mention the skunk works. . .?

==

*It is worth noting that until recently Toyota was treated like some technological troglodyte for its continued support of hybrids and its not all-in approach to EVs. Not only do we see that Ford is reconsidering its positioning vis-à-vis hybrids and full EVs, but General Motors, which doesn’t have much of a record in the hybrid space, has announced that it, too, is going to bring hybrids to the U.S. market. Farley pointed out on the earnings call that consumers can quickly do the math on the fuel efficiency benefits of hybrids and, perhaps the most important factor: “they don’t have to change their behaviors.” It is surprising that there seems to be so many auto execs who ignore the long public charging time required for EVs compared with pumping gas: perhaps this is a case that when they get behind the wheel of their company vehicles someone else has done the charging.

Hybrids Still Matter

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By Gary S. Vasilash

Japanese car shoppers are going to buy more hybrids in 2024—more than half of all sales will be the electrified powertrains—than any other type of propulsion system, according to Bloomberg Intelligence.

Tatsuo Yoshida, Bloomberg Intelligence senior auto analyst, said:

“In Japan, hybrids are popular because they’re affordable and reliable, since they don’t rely on the existence of strong charging infrastructure.”

Arguably, those same characteristics—affordability, reliability, and no dependence on the availability of electric chargers (at home or out in the world)—are important to consumers everywhere.

2024 Toyota Prius: Looks good. Travels far. (Image: Toyota)

Although Honda had a hybrid in the U.S. market, the Insight, before Toyota brought the Prius, it was literally just a matter of months—Insight December 1999; Prius June 2000—and Toyota has really become more associated with hybrid technology thanks to its persistence in bringing out hybrids, both as powertrain options to vehicles (e.g., the hybrid RAV4) and as hybrid-only offerings (e.g., the Toyota Venza).

In Japan Toyota has had the Prius available since 1997, so the vehicle, and hybrid tech, are certainly familiar to consumers there.

While the Prius design over the years transitioned from something frumpy to something that looked like the designers were spending too much time watching anime, the 2024 Prius, the fifth generation of the model, is absolutely stunning in looks and certainly not lacking in its efficient performance: the top-of-the-line XLE and Limited models with AWD offer fuel economy of 49 mpg city, 50 mpg highway, and 49 mpg combined. For those who have more frugality, there’s the LE FWD version which is rated at 57/56/57 mpg, which means that given its 11.3-gallon fuel tank (and it takes regular gasoline) it can travel some 640 miles on a tank. That is the definition of “convenience.”

(The 2024 Prius was named the MotorTrend Car of the Year and it is a finalist for the North American Car of the Year, which will be announced January 4.)

Hybrids are garnering more attention in the U.S. market. Not as much as in Japan, but more.

The Ford Maverick Hybrid continues to be a massive hit.

And when Ram brings out its Ramcharger Ram 1500 variant next year, although it will probably emphasize that it is an “electric vehicle,” it is really a hybrid (a series hybrid: there is a battery that powers the electric motor; when the battery gets close to depletion, the gasoline engine operates as a generator to recharge the battery, to keep the propulsion going).

And at an Automotive Press Association Q&A late last month, GM CEO Mary Barra acknowledged that the company has hybrid tech in its portfolio, even though it has no hybrids on offer in the U.S. market.

Arguably, if more Americans knew about the ease of using a hybrid and the efficiency the vehicles provide, they, too, would buy more of them.

Perhaps this will happen when the 2025 Toyota Camry is launched.

The Camry, the perennial best-selling car in the U.S., will be available only with a hybrid powertrain. Clearly, Toyota is that confident in the tech. (Of course, having been putting hybrids under hoods for more than a quarter of a century, it ought to be.)

Affordability, reliability, and no dependence on the availability of electric chargers.

This may cause consumers to pay more attention to hybrids in the U.S., too.

Hyundai and Hybrids

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By Gary S. Vasilash

In reporting its October sales, Hyundai noted that the company that was once thought of mainly in the context of its style-setting Sonata sedan (remember when the 2011 model came out with its “Fluidic Sculpture” styling that made all other sedans seem as though they came from an earlier age?) had 81% of its retail mix in. . . SUVs.

Of course, that has a little something to do with the fact that in the car category there are the Sonata, Elantra and recently introduced IONIQ 6 EV sedan, while in the SUV category there are:

  • IONIQ 5
  • Kona
  • Nexo
  • Pallisade
  • Santa Fe
  • Tucson
  • Venue

(There is also the Santa Cruz pickup, for purposes of providing a look at the entire showroom.)

Hyundai Tucson PHEV (Image: Hyundai)

While there were 9,456 Elantras sold—an 11% increase compared with October 2022 sales—there were 9,700 Santa Fes sold—and that’s a decrease of 10% compared to last year and it still is more than the Elantra sales.

But what is more interesting in some regards is this observation from Randy Parker, Hyundai North America CEO:

“This was the best-ever October for total and retail sales for our segment-leading Tucson HEV, Tucson PHEV, Santa Fe HEV and IONIQ 5 SUVs along with our Elantra HEV.”

Yes, hybrids are doing increasingly well at Hyundai, though there is also that full battery-electric IONIQ 5.

Overall, electrified vehicles represented 21% of Hyundai’s October sales, a 49% year-over-year (YoY) increase.

In terms of the hybrid YoY increases:

  • Elantra HEV:          +15%
  • Santa Fe HEV:        +81%
  • Tucson PHEV:         +170%
  • Tucson HEV:           +14%

Odds are those OEMs that decided to deemphasize hybrids to promote full electric vehicles are giving their portfolio strategy a hard re-think.

Toyota, GM, Ford; EVs, AVs and ADAS

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By Gary S. Vasilash

Last week Norihiko Shirouzu of Reuters reported “Toyota is considering a reboot of its electric-car strategy to better compete in a booming market it has been slow to enter.”

Toyota’s Prius is synonymous with “hybrid.” The company has pretty much hybridized everything. It argues—or maybe that would be “argued”—that it is better to build a whole bunch of affordable hybrids than a comparatively few electric vehicles that are comparatively more expensive: according to Kelley Blue Book, the average price of an electric vehicle in the U.S. in September was $65,291. The average transaction price for vehicles overall, KBB calculated, was $48,094. Which is roughly a 27% delta, which is certainly non-trivial.

Yes, this is a Prius. (Image: Toyota)

Be that as it may, Shirouzu’s sources indicated that “Toyota’s planning had assumed demand for EVs would not take off for several decades.” Which is decidedly not the case.

So is Toyota making a pivot? That is one of the subjects discussed on this edition of “Autoline After Hours.” Joining “Autoline’s” John McElroy and me are automotive consultant/analyst Jack Keebler and long-time auto journalist, currently freelancing at Autoweek, Todd Lassa.

Other topics discussed are the Q3 earnings of both General Motors and Ford, as well as those companies positions on autonomous driving: GM continues to be bullish on the prospects for Cruise, still anticipating revenue of $1-billion from the operation by 2025; Ford is far more conservative, as it announced that Argo AI, the AV company that was owned primarily by it and Volkswagen (each had 39%), was closing. Ford going forward would focus more on Level 2+ and Level 3 ADAS. (Ford CEO Jim Farley: “It’s mission-critical for Ford to develop great and differentiated L2+ and L3 applications that at the same time make transportation even safer.”)

The conversation is wide ranging and lively. And you can see it here.

Toyota’s Big Spend in West Virginia

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Last November Toyota announced a $240-million investment in its plant in Buffalo, West Virginia, its only combined engine and transmission plant in North America. The monies will be invested in a production line for hybrid transaxles.

And today the company announced that it was adding an additional $73-million to its spend for not only more hybrid transaxle production but to assembly rear motor stators.

All of which is to say that Toyota is amping up its spend on hybrid vehicle production capacity.

In addition, it is spending $17 million at its Toyota Motor Manufacturing Tennessee plant for casting hybrid transaxle cases and housings.

Last December Toyota announced that it would be launching 30 battery electric vehicles globally by 2030, which would represent sales of 3.5-million EVs per year.

Then it would, by 2035, have 100% of its global vehicle sales be EVs by 2035.

However, between now and then there will evidently be more hybrids available at Toyota and Lexus dealers in the U.S.

Designing the 2022 Ford Maverick–& About Electric Pickups

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A wide-ranging discussion that’s concentrated on pickups

By Gary S. Vasilash

Although “essential courage” may sound a bit exaggerated when it comes to the design theme for a vehicle, Scott Anderson, design manager at Ford, explains how that term describes what the team did in developing the design of the 2022 Ford Maverick—the interior design, in particular.

The Maverick is a compact truck. Unibody, not body-on-frame, like its sibs, the Ranger and the F-150.

While those two vehicles are designed and engineered primarily for those who are focused on, primarily, vocational uses (OK: there are plenty of people who buy pickups and never use the beds for anything beyond groceries or Christmas trees), the Maverick is designed and engineered mainly for urban dwellers who like to do recreational things (the Maverick can tow 4,000 pounds: like a small trailer) and whose recreation may include making things, not only with sheet metal and 2x4s, but also 3D printers.

It is a different proposition.

One of the things to know about the Maverick is that in the base model, which has a starting MSRP of $19,995, has a hybrid powertrain.

And as has long been the argument by some OEMs that have not gone the hybrid route, the nature of that, which combines an internal combustion engine (in this case a 162-hp 2.5-liter four) and an electric motor and battery (all in for the Maverick: 191 hp), hybrid powertrains are more expensive than, say, a 162-hp 2.5-liter four all by itself.

But the base Maverick is a hybrid and the base Maverick starts at under $20K.

And because it is a truck and because Ford has a lot riding on its reputation of building trucks (i.e., “Built Ford Tough”), there could be no skimping on the engineering of the Maverick.

So no surprise they had to do some things differently on developing and executing the interior.

Functional design and clever use of materials in the ’22 Ford Maverick. (Image: Ford)

For one thing, Anderson says, they decided that they would be honest about the use of plastic. They wouldn’t make it appear as though the material is something that it isn’t—but at the same time, they made it appear, through color and texture choice, as something both interesting and fit-for-purpose.

In addition, they did lots of observation about how people use their interiors, including storing objects of various sizes and configurations and so make the means to accommodate them, even if it meant things, as in the case of the front arm rests, are not what is typical: the front arm rests are truncated so as to make it more convenient to have large water bottles in the map pocket below.

So there is the essential part. And the guts, because when you decide that fasteners, for example, are going to be part of the design, not something hidden (often in a half-assed manner), then you’ve got to stand up for it.

Anderson talks about all this and more on this edition of “Autoline After Hours” with Rain Noe of Core77, freelance writer Mark Williams and me.

In addition, Noe, Williams and I discuss the coming onslaught of electric trucks, including the F-150 Lightning, the Rivian R1T, the HUMMER EV pickup, the Bollinger B2, the Silverado electric, the Tesla Cybertruck, and the Lordstown Endurance.

And you can see the show here.