Dust to Dust
Interesting article at A Western Heart about the "dust-to-dust" prices of automobiles.
I had written about this back in April, 2006:
An interesting number but JR's post amplifies this a bit and relays some more info:
Have You Hugged a Hummer Today?
Hybrid vehicles' overall energy costs exceed those of comparable non-hybrids
Ford Motor Company did itself a huge favor recently by backing away from its pledge to bump-up its hybrid production ten-fold in four years. But, as it turns out, the company might have done the planet a whale of a favor too. Just last fall, CEO Bill Ford was valiantly promising in a mega-million dollar ad campaign that the company would never, ever turn away from its hybrid pledge because these vehicles were central to the company's reputation as an "innovator and environmental steward."
Never mind that at the time Ford was losing $2,000 to $3,000 for every hybrid it sold because consumers won't pay the entire $6,000 extra that it costs to produce a hybrid over its gas-powered counterpart. Never mind also that in the real world -- outside of the Environmental Protection Agency's tax-payer funded testing sites -- hybrids don't deliver anywhere close to the gas mileage that the agency attributes to them, as auto-writer Richard Burr reported in the Weekly Standard.
Bill Ford had given his word on hybrids and you could take that to the bank (ruptcy court). But hybrids have received such a thrashing in the market lately that even Ford was forced to take-off his green eye-shades and read the red-ink on the wall. According to Art Spinella, the uber-auto analyst and President of CNW Marketing Research, hybrid sales every month this year have been down compared to the same time last year. Even sales of the Toyota Prius - the darling of the greens - have dropped significantly. The only segment besides taxis where hybrids are still holding steady - taxpayers will be happy to note -- is the car fleets maintained by the government.
What's particularly interesting is that individual consumers are defying all expectations and turning their backs on hybrids at a time when gas prices are soaring. (The average U.S. retail price of gas spiked to a record high of $3.01 last September following hurricane Katrina, and just last week it hit its second highest price ever at nearly $3.00.) Nor is the reason all that mysterious. Spinella's customer satisfaction surveys show that 62 percent of hybrid owners are dissatisfied with the fuel-economy performance of their cars given what they have paid for them. This means that when gas prices go up, these people don't rush out to buy more hybrids. "They buy a Chevy Aveo," says Spinella. "It delivers the same fuel economy as a Prius, but at half the price."
Dust--to--dust:
Spinella spent two years on the most comprehensive study to date - dubbed "Dust to Dust" -- collecting data on the energy necessary to plan, build, sell, drive and dispose of a car from the initial conception to scrappage. He even included in the study such minutia as plant-to-dealer fuel costs of each vehicle, employee driving distances, and electricity usage per pound of material. All this data was then boiled down to an "energy cost per mile" figure for each car. Comparing this data, the study concludes that overall hybrids cost more in terms of overall energy consumed than comparable non-hybrid vehicles. But even more surprising, smaller hybrids' energy costs are greater than many large, non-hybrid SUVs.
For instance, the dust-to-dust energy cost of the bunny-sized Honda Civic hybrid is $3.238 per mile. This is quite a bit more than the $1.949 per mile that the elephantine Hummer costs. The energy cots of SUVs such as the Tahoe, Escalade, and Navigator are similarly far less than the Civic hybrid. As for Ford cars, a Ford Escape hybrid costs $3.2 per mile - about a third more than the regular Escape. But on the whole, ironically enough, the dust-to-dust costs of many of the Ford non-hybrids - Fusion, Milan, Zephyr - are not only lower than comparable Japanese hybrids - Prius, Accord -- but also non-hybrids - Seville, Civic.
And the Hummer specifically:
As for Hummers, Spinella explains, the life of these cars averaged across various models is over 300,000 miles. By contrast, Prius' life - according to Toyota's own numbers - is 100,000 miles. Furthermore, Hummer is a far less sophisticated vehicle. Its engine obviously does not have an electric and gas component as a hybrid's does so it takes much less time and energy to manufacture. What's more, its main raw ingredient is low-cost steel, not the exotic light-weights that are exceedingly difficult to make - and dispose. But the biggest reason why a Hummer's energy use is so low is that it shares many components with other vehicles and therefore its design and development energy costs are spread across many cars.
It is not possible to do this with a specialty product like hybrid. All in all, Spinella insists, the energy costs of disposing a Hummer are 60 percent less than an average hybrid's and its design and development costs are 80 percent less.
I'm more of a UniMOG man than a Hummer but the H-1 is awesome now that they have the reliability issue worked out.
The H-2 is at best an Urban Shopping Jeep based on the chassis of a Tahoe with a $20K additional fee for the pedestrian coachwork.
Posted by DaveH at July 24, 2006 11:25 PM