Mitsubishi to Sell Electric Cars in 2010 Electric Colt Li-Batteries TOKYO May 11, 2005 — Scandal-plagued Mitsubishi Motors Corp. said Wednesday it will start selling electric cars in 2010, an attempt to showcase its technological prowess and fix its battered brand image. The Tokyo-based automaker, struggling to regain customer trust after repeated cover-ups of auto defects, showed off a mini test vehicle equipped with motors embedded in the rear wheels that run on a lithium-ion batteries. "For a company with small sales like ours, this is a way we can assert a meaningful presence," Tetsuro Aikawa, who oversees product development and environmental research, told reporters at the company's headquarters. Sales of Mitsubishi cars have suffered since the automaker acknowledged five years ago it had been systematically hiding auto defects from authorities. Its global production in March dropped 11 percent from the same month a year ago the 11th straight month of on-year declines. Aikawa said the planned mini-electric car, which will be available for test fleets next year, has a cruising range of 93 miles on a single charge and can be recharged in a regular home. Mitsubishi is targeting housewives who drive to pick up children from school, go grocery shopping and won't need to travel long distances, Aikawa said, adding that they are expected to enjoy owning a car that never needs to fill up at a gas station. Officials said the electric car will cost slightly more than a comparable gas-engine vehicle but they hope to keep prices down through government aid available for buyers of ecological cars. Although the price isn't decided, it may sell for under 2 million yen ($19,000), according to Mitsubishi Motors. The company is undecided on overseas sales for the car. Electric vehicles have been available in small numbers around the world, but they have been too expensive to catch on in big numbers. The fact that they need recharging has been another obstacle preventing them from becoming widespread. Japanese automaker Toyota Motor Corp. has succeeded in the market by pushing a different kind of ecological technology called hybrid, which switches back and forth between an electric motor and a gas engine. Hybrids like the popular Prius run on regular gas. ——— Information from: ABC News http://abcnews.go.com/Business/     Results are in on the first Wave of hybrids Electric Hybrids weigh in low on estimated savings Car makers are rushing to bring out fuel-saving hybrid models. But they don't tell you that these hybrids won’t always save much gas -- though they cost substantially more. Behold GMC's new hybrid, the K15 Sierra. This pickup truck scores a 3 on the EPA's 0-to-10 emissions scale, with 0 being the worst. It gets a whopping 18 miles per gallon in combined city and highway driving. That compares with the 16 mpg attained by its non-hybrid sibling, the K1500 Sierra. So what, exactly, is green or even fuel-efficient about this vehicle? You might ask the same question about Chevrolet's C15 Silverado hybrid (19 mpg, compared to the regular C1500's 18). Even some of the new vehicles touted as significantly less gas-hungry than their peers still post mileage ratings that could be bested by a regular old Toyota Corolla with a headwind. Meanwhile, drivers of cars that actually have impressive EPA mileage ratings complain that their real fuel economy is far less advertised. A focus on performance What's going on here? Are car manufacturers perpetrating a scam on unsuspecting consumers? Not quite, car experts say. Any car maker has to balance fuel efficiency with performance, said Bob Kurilko of car-shopping site Edmunds.com. With the latest generations of hybrids, manufacturers are simply leaning more toward the performance side of the scale. The earliest incarnations -- the Toyota Prius and the Honda Insight, for example -- were stingy with gas, getting EPA ratings of around 60 mpg. But "they weren't much fun to drive," said Perry Stern, editor of MSN Autos. "With the (hybrid Honda) Accord or the new Lexus RX, a buyer doesn't have to make that compromise," Stern said. "You get more power, and you get better fuel economy than other vehicles in the same class. It's not going to save tons of money at the pump, but you're not having to give up on fuel economy to get a more powerful vehicle." Hard to justify The problem is that car manufacturers are charging substantially more for these new hybrids than for their gas-using counterparts. Though the car makers tout extra performance, the bigger sticker price can make it harder to justify the economics of buying a hybrid. For example, the hybrid Accord gets a combined 32 mpg, compared to the regular Accord's 24. But it also costs $3,300 more, Perry said. Assuming you drive 15,000 miles a year and gas averages $2.50 a gallon, you'd be saving $391 a year on fuel. That means it would take you about 8 years to break even. Fortunately, the Accord is one of just five hybrid models that qualify for a $2,000 tax deduction (that's scheduled to fall to $500 in 2006, and disappear after that). That brings the "break-even" time down a little. Hybrids with tax breaks 5 hybrid vehicles qualify for a tax deduction.  Cars that come with a tax deduction Vehicle make and model* Model years MPG city** MPG hwy** Ford Escape Hybrid 2005 36 31 Honda Accord Hybrid 2005 29 37 Honda Civic Hybrid 2003-2005 45 51 Honda Insight 2000-2005 61 66 Toyota Prius 2001-2005 60 51 * Vehicles approved by IRS as of Feb. 10, 2005. Other hybrids may be approved at a later date. **EPA ratings for 2005 models. Source: Fueleconomy.gov The Lexus RX 400h, by contrast, isn't on the IRS list. And the luxury hybrid's sticker price is about $10,000 higher than that of the RX 330, the regular version of the crossover SUV. The hybrid clocks 31 mpg in city driving, compared to the gas-powered's 18 mpg "The Lexus story is that the new hybrid gets 13 mpg better than the standard V6 RX, but also gets 38 more horsepower," Stern said. Lexus is also trying to bridge the price gap by making standard some of the features that are optional in the gas version. But there's still a pretty big difference in price tags. There's a smaller gap between the hybrid and gas versions of the Ford Escape. The all-wheel-drive hybrid costs about $28,000, compared to $26,000 for a gas version with similar performance. Now, the savings realized by today's performance-conscious hybrids could get a lot more compelling if gas prices rise over $3 a gallon and stay there, as some predict. But the numbers could start working against you if gas prices sink. The new hybrids Car makers will introduce at least 15 new models over the next few years.  Hybrid cars on the horizon Manufacturer Model Type ETA Dodge Ram Hybrid Full-size Pickup Later in 2005 Lexus RX 400h Mid-size SUV Just introduced Mercury Mariner Hybrid Mid-size SUV Later in 2005 Toyota Highlander Mid-size SUV June 2005 Saturn VUE SUV 2006 Nissan Altima Hybrid Mid-size Car 2006 Chevrolet Equinox SUV 2007 Chevrolet Malibu Mid-size Car 2007 Chevrolet Tahoe (AHS II) SUV 2007 GMC Yukon Hybrid (AHS II) SUV 2007 Mazda Tribute Hybrid SUV 2007 Chevrolet Silverado Hybrid (AHS II) Full-size Pickup 2008 Ford Fusion Mid-size Car 2008 GMC Sierra Hybrid (AHS II) Full-size Pickup 2008 Mercury Milan Hybrid Mid-size Car 2008 Sources: Fueleconomy.gov, J.D. Power-LMC; Energy & Environmental Analysis (EEA); manufacturer Web sites. Do they deliver on mileage? Then there's the issue of whether these cars actually get the mileage they claim. This is actually a pretty big deal with the vehicles that are the most fuel-efficient: the Prius and the Insight. Owners have been yowling for years that their mileage isn't anything like the EPA's numbers. "I drove a Prius for a week and never saw 60 mpg," Perry said. "I averaged around 42 mpg." Now, that kind of mileage should make any Hummer driver blush. But it's not that much better than a fuel-efficient small sedan, like a Honda Civic. (The EPA clocks the Civic with Honda's "Lean Burn" engine technology at 36 mpg city, 44 mpg highway.) So while hybrids might not be a scam, they are pretty expensive for what you're getting. That's largely because hybrids are still a bit of a novelty act. As more models are introduced in coming years and competition heats up, at least some of that premium for hybrid technology should evaporate, predicted auto writer Terry Kosdrosky of Crain's Detroit Business. In other words, if you're thinking about a hybrid, consider waiting a few years. (You do run the risk of missing out on the current tax deduction. There's a movement in Congress to extend the deduction and keep it at $2,000, but there are no guarantees.) Rolling forward If you're in the market for a car now, here are a few thoughts: Consider all your alternatives. You don't have to go hybrid to get better-than-average mileage -- and you don't have to stick to small cars, either. FuelEconomy.gov keeps a list of the most and least fuel-efficient vehicles in each class of cars. You might want to take a look at today's diesel cars as well. The diesel versions of Volkswagen's Beetle and its Jetta and Passat Wagons were named the most fuel-efficient in their class. If you're going to buy one of the "tax deduction" hybrids, get going. The waiting list for Priuses is six months long in many areas. You need to take possession of the vehicle before the end of the year to get the $2,000 deduction. Whether you buy hybrid or not, consider ways to reduce your fuel consumption. Those ways haven't changed much since the energy crisis of the early 1970s: Avoid jack-rabbit starts and stops; rapid acceleration wastes gas. Keep your speed to 60 mph or less. Reduce your trips by carpooling, combining errands, walking or biking. Use public transportation. Keep your tires properly inflated. Replace clogged air filters. Clean out your trunk (the more weight you carry, the worse your mileage) (For more tips, read "14 ways to deal with $2-a-gallon gas.") Liz Pulliam Weston's column appears every Monday and Thursday, exclusively on MSN Money. She also answers reader questions in the Your Money message board.   ——— Information from: Liz Pulliam Weston