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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.

Toyota teases mysterious RND Concept

Toyota is being very secretive about its newly teased RND Concept. The image above is all that the Japanese automaker is showing at the moment, and it's not much to go by. However, the wait to find out won't be very long, as the automaker is unveiling this very mysterious vehicle on January 26 in the UK. Making the RND even more intriguing is that this isn't just a concept pointing the way towards some nebulous future vehicle. Toyota claims that the model is production ready, and the automaker already has pricing, supply and manufacturing space prepared. We likely shouldn't expect a super luxury sedan or sports coupe, though, because Toyota says that the RND is meant for "the widest possible market." Could it possibly be some sort of inexpensive, electric vehicle like the Renault Twizy, then? With just the hind of a taillight, a slash of chrome and what might be an intake, there's not much styling work to go on here. Although, Toyota is making huge promises about the design; it claims the RND "has the potential to transform the look of every vehicle on the road." It's odd to see an automaker other than Tesla reveal a new vehicle outside of a major world auto show, which piques our interest about what Toyota is doing here. Read the company's press release below and let us know what you think the Japanese automaker is up to in Comments. THE NEW TOYOTA RND CONCEPT: SNEAK PREVIEW First details of new model released ahead of world debut next week Toyota is breaking with motor industry convention by revealing a new product outside the familiar surroundings of an international motor show. Instead its new RND Concept will make its world debut in the UK on 26th January, ready for fast-track development that should see it changing the face of motoring within weeks. The first image released today hints at how the concept's design marks a radical shift in direction for Toyota, taking the "fun-to-drive" qualities of its cars to a higher level. Although presented as a concept, Toyota acknowledges the RND will be unveiled in its production-ready form. Manufacturing and product supply have been secured and on-the-road pricing has been fixed at a level that will make the RND Concept accessible to the widest possible market. Toyota is confident, too, that the RND Concept's impact will go far beyond its own model range, having the potential to transform the look of every vehicle on the road.

Toyota Mirai, Lexus LS show off Advanced Drive assists with OTA updates, AI

TOKYO — Toyota Motor Corp unveiled on Thursday new models of Lexus and Mirai in Japan, equipped with advanced driver assistance, as competition heats up to develop more self-driving and connected cars. Toyota's latest launch comes as automakers, electric car startups and tech giants invest heavily in so-called active safety features. The Japanese carmaker's new driving assist technology, or Advanced Drive, features a level 2 autonomous system that helps driving, such as limiting the car in its lane, maintaining the distance from other vehicles and changing lanes under the driver's supervision on expressways or other motor-vehicle-only roads. The system can even handle lane merges, and when passing trucks its lane system will move the car further to the opposite side of its lane. The car will recommend a course of action to a driver before executing it. The system also features a camera to monitor the driver's actions and level of attentiveness, and if the driver seems unresponsive or incapacitated, the car will pull itself over. The luxury sedan Lexus LS will be on sale from Thursday, costing between about 16.3 million yen ($148,600) and 17.9 million yen ($164,000), while the second-generation Mirai hydrogen fuel cell car will be offered on April 12 at between 8.4 million ($76,900) and 8.6 million yen ($78,750). This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The new models are Toyota's first products brought to the market that provide over-the-air updates and utilize AI technology centered on deep learning, said Toyota executive James Kuffner, who is also the head of Toyota's research unit Woven Planet. "This is really an important first step in our journey towards software-first development," he said at an online briefing on Thursday, adding that the company has tried to design the software to be truly global and to provide re-usability. In the future, software features on cars will be "upgradable" and "more customizable" much like how people personalize their smartphones, Kuffner added. Fully self-driven cars are still likely to be years away, but rival General Motors early this year made a splash at the virtual Consumer Electronics Show with a fully-autonomous all-electric flying Cadillac concept, while Chinese search engine operator Baidu unveiled a partnership with local car brand Geely.