Plug In Your Car & Save Dollars (and the Environment)

From PCJ Editor Wayne Senville:

"Climate change is real ... we need to be part of the solution ... that's a significant shift for us."

That's part of the message Nancy Gioia (pronounced "joya") brought to a packed ballroom at the University of Vermont last month.

Gioia is head of Sustainable Mobility Technologies and Hybrid Vehicle Programs at Ford Motor Company. One of her priorities has been getting out a commercially viable plug-in electric hybrid car (PHEV, for short). In fact, Ford is in the process of delivering a fleet of its new "Escape" PHEVs to Southern California Edison for extensive testing and evaluation.

According to Gioia, Ford is firmly committed to these rechargeable vehicles that run on batteries, with the ability to shift to gas when the battery is drained (hence, the "hybrid" nature). Gioia cited J.D. Powers research indicating that by 2013, hybrid sales will exceed one million/year (about 254,000 hybrids were sold in the U.S. in 2006, over 25% in California).

Ford is not alone in rushing to PHEVs. General Motors is scheduled to roll out its "Volt" PHEV vehicle (GM, for reasons explained on their web site, doesn't call the Volt a "hybrid") in 2010/2011 -- and

Toyota this past Sunday announced the arrival of its Prius PHEV in 2010.

What makes Gioia optimistic about the future of these plug-in vehicles? One factor is that the price of the vehicles will be coming down (and, as she pointed out, cost is still the single most important factor for consumers).

Battery technology is also improving. But Gioia highlighted one major constraint not likely to be overcome in the near future: batteries are not cost-effective in allowing for driving distances of greater than 30 or so miles. "Greater battery range," she explained, "is incredibly expensive and not worth it."

But there's a silver lining in this, Gioia continued, as research shows that the most frequent distance the average American drives every day is about 15 miles, with most motorists driving under 30 miles/day.

Aiming the battery range of PHEVs at this market, she pointed out, keeps vehicle costs reasonable and "aligns with the ability to recharge overnight and meet the driving patterns of the 60% of consumers who live in urban areas." (Note: since the vehicle is a hybrid, extended travel distances are not precluded -- the vehicle just switches to its hybrid, i.e., gas-fueled, drive; this would occur after about 30 to 40 miles of travel).

Key to selling consumers -- especially those using their car for daily commuting -- on PHEV's is the fact that they can use a normal 110 volt outlet. In other words, the car be plugged in to a home outlet, and be fully recharged in about six to eight hours (i.e., overnight).

For some additional background on PHEVs, take a look at this 8 minute video prepared by Plug-In Parnters:

Another fascinating video about the recent development of electric cars was broadcast on the CBS Sunday Morning show -- with coverage by New York Times reporter David Pogue. It can be viewed online.

The coming of plug-in electric vehicles will also link the transportation and utility sectors of the economy in some very intriguing ways. More on this in my next post.