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The ugly economics of green vehicles

It's fair to say that most consumers would prefer a green vehicle, one that has a lower impact on the environment and goes easy on costly fuel (in all senses of the term). The problem is that most people can't – or won't – pay the price premium or put up with the compromises today's green cars demand. We're not all "cashed-up greenies." In 2013, the average selling price of a new vehicle was $32,086. The truth is that most Americans can't afford a new car, green or not. In 2013, the average selling price of a new vehicle was $32,086. According to a recent Federal Reserve study, the median income for American families was $46,700 in 2013, a five-percent decline from $49,000 in 2010. While $32,000 for a car may not sound like a lot to some, it's about $630 a month financing for 48 months, assuming the buyer can come up with a $6,400 down payment. And that doesn't include gas, insurance, taxes, maintenance and all the rest. It's no wonder that a recent study showed that the average family could afford a new car in only one of 25 major US cities. AutoTrader conducted a recent survey of 1,900 millennials (those born between 1980 and 2000) about their new and used car buying habits. Isabelle Helms, AutoTrader's vice president of research, said millennials are "big on small" vehicles, which tend to be more affordable. Millennials also yearn for alternative-powered vehicles, but "they generally can't afford them." When it comes to the actual behavior of consumers, the operative word is "affordable," not "green." In 2012, US new car sales rose to 14.5 million. But according to Manheim Research, at 40.5 million units, used car sales were almost three times as great. While the days of the smoke-belching beater are mostly gone, it's a safe bet that the used cars are far less green in terms of gas mileage, emissions, new technology, etc., than new ones. Who Pays the Freight? Green cars, particularly alternative-fuel green cars, cost more than their conventional gas-powered siblings. A previous article discussed how escalating costs and limited utility drove me away from leasing a hydrogen fuel cell-powered Hyundai Tucson, which at $50,000, was nearly twice the cost of the equivalent gas-powered version. In Hyundai's defense, it's fair to ask who should pay the costs of developing and implementing new technology vehicles and the infrastructure to support them.

Are Toyota and Lexus planning to use Mazda's straight-six and new platform?

Japan's Best Car magazine has what appears to be a whopper of a rumor. The mag said it scooped Mazda's development of a straight-six engine that Mazda only revealed in March, the carmaker having buried the information in a financial statement. By way of Lexus Enthusiast and according to Google translate, Best Car writes that as it was speaking to a Toyota source on an unrelated matter, the magazine found out that Mazda's work on the straight-six was predicated on the engine's use in Toyota Group vehicles, which includes Lexus. Here's the account of how the engine and Mazda's coming front-engined rear-drive platform, dubbed "Large Architecture," will make their way to Toyota City: The first appearance for the straight-six, predicted to come in at a hair under 3.0 liters, is the Mazda Atenza/Mazda6 successor coming around 2022. The powertrain will get a 48-volt hybrid system for increased fuel economy, and the automaker's said to be considering a plug-in hybrid version. Toyota's first shot at the platform and the straight-six will be whatever fills the slot of the Japanese-market Mark-X sedan. We once had a version of the Mark-X in the U.S. as the Toyota Cressida. In Japan, it's sold as a rear- and all-wheel drive option to the Camry. The Mark-X is slated to end production in December this year — a "sporty four-door coupe" on Mazda's platform and with Mazda's engine eventually taking its place. Lexus has a number of plans for the components from Hiroshima. The next Lexus IS is said to evolve from the current sedan, using a Lexus V6 but migrating to Toyota's TNGA platform. Best Car says the IS after that, perhaps sometime around 2026, will hop onto Mazda's new platform and use the inline-six engine. Before that, the replacement for the Lexus RC in 2022 will sit on the Mazda platform and get that inline-six. What's more, Lexus will introduce a new model to slot between the $64,750 RC and the $92,950 LC employing Mazda's architecture and engine. Best Car says the model will act as a "next car" for RC owners, but we can't tell if the magazine means a two-door or a four-door coupe; the article also says the Lexus model will compete with the Audi A7. Toyota and Mazda partnered up in 2016 on technology sharing. Best Car's take is that, as was done on the Supra, Toyota is picking up all the tech it can from suitable sources so that it can continue to sell models that don't make sense to develop alone.

J.D. Power study sees new car dependability problems increase for first time since 1998

For the first time since 1998, J.D. Power and Associates says its data shows that the average number of problems per 100 cars has increased. The finding is the result of the firm's much-touted annual Vehicle Dependability Study, which charts incidents of problems in new vehicle purchases over three years from 41,000 respondents.
Looking at first-owner cars from the 2011 model year, the study found an average of 133 problems per 100 cars (PP100, for short), up 6 percent from 126 PP100 in last year's study, which covered 2010 model-year vehicles. Disturbingly, the bulk of the increase is being attributed to engine and transmission problems, with a 6 PP100 boost.
Interestingly, JDP notes that "the decline in quality is particularly acute for vehicles with four-cylinder engines, where problem levels increase by nearly 10 PP100." Its findings also noticed that large diesel engines also tended to be more problematic than most five- and six-cylinder engines.