The Wall Street Journal has been known to be a bit cynical when it comes to the Chevy Volt but does it really think GM is using a whole program just to angle cash out of Washington? That seems to be the what Holman W. Jenkins, Jr. is arguing in his article, "What Is GM Thinking?" According to the author, because GM's stock is at historic lows and the idea that the public would change their minds about the kinds of cars they want because fuel costs are rising is "crazy," the only reason GM would be pouring hundreds of millions of dollars into a car that is "guaranteed to lose money on every unit" is because the company can use the environmental cache of the Volt to give law-makers political cover to throw cash at the iconic American brand. We think that, while this kind of wild-eyed speculation is all very well and good for some amateur car blog to delve into, this is written up in the respected Wall Street Journal.

Although the main premise of the piece may be slightly awry, we can surely take heart that the writer knows a little about the vehicle he is writing about. Let's look at a few of his facts assumptions.

• "GM is saying now the Volt may need a sticker price of $45,000"
• "The car will be lucky to get 15 mpg under gasoline power"
• "A car with the Volt's narrow usability to sell would require an unlikely revolution in consumer behavior"

Hmmm, interesting. We know what we think of these statements but we'd like to know what you think. Try out our new and improved comments section to let us know.

[Source: Wall Street Journal]

My friend Dennis in Washington decided one day to make his Mazda truck really green. But instead of installing a revolutionary and complex powertrain, he decided to go modest and install the simplest carbon capture device on the cargo bed: he grows plants on it. Literally. I believe this even adds some kind of poetry to the simple act of driving.

Let him tell us the story of this project: "I started with it in March of 2007. I installed a plastic liner, which I filled with a mixture of light potting soil and chicken manure, then seeded with a large packet of Short Meadow mix. Then I just waited for it to grow. All the flowers this year reseeded naturally from last year's crop. It always gets lots of attention! The neighbors love it, too. By the way, I can't really take the truck on the freeway with the flowers so high, so I'll take the car instead."



Thanks to Dennis!

Yesterday, we mentioned that Toyota is hoping to cash in on the reputation of being hybrid friendly and green in order to make high profits by selling performance vehilces under their Lexus brand name. Just as there is a great deal of hype surrounding the Toyota Prius, the Chevy Volt has garnered green attention towards the General. And, GM wants to cash in on some of that early hype by showing the vehicle off in Washington today to bolster their lobbying efforts in Caption Hill. As we are all aware, there are competing plans being discussed by the nations' policy makers, with distinct sides developing on each side. Those who have already chosen where they stand are not the target of the auto industry's efforts, though. Instead of changing the minds of those who have already decided one way or the other, GM is hoping to sway those "sitting on the fence" to the side of lower standards. What they are trying to prove is that they genuinely want to make more efficient cars, but that the standards being discussed by some in Congress are just unrealistic. Will the Volt be enough to sway those fence sitters? As always is the case, we must wait and see. But, here is a question for our readers: is it right for GM to cash in on Volt hype before the vehicle even is in production?

[Source: Detroit News]

Members of the US Congress have long been supporting the corn ethanol business by transferring our tax dollars to agri-businesses like ADM and Monsanto. Now they will finally have the opportunity to actually use E85 with the opening of the first pumps dispensing the biofuel in Washington DC. Ethanol producer VeraSun Energy is now supplying fuel to two stations in DC and in Arlington, VA near the Pentagon. In addition the main Enterprise Rent-A-Car branch on Vermont Ave. in Washington the company will be fueling the fifty GM flex-fuel vehicles in their fleet with E85 from the Georgetown Chevron station.

[Source: VeraSun]

A massive lobbying effort is taking place in Washington as you read this. The issue at hand are modified CAFE standards. Executives from the automotive industry apparently are not powerful enough on their own accord, so they have asked dealers to join them in the battle. By bringing auto dealers into the picture, Senators are more apt to listen, as the dealers are part of the voting public from the states the Senators are representing.

Currently, there are two possible bills on the table that the Senate could vote on. One bill would raise the fuel mileage standards 40 percent by 2020 and 4 percent a year after that, while the other would raise standards by more than 30 percent by 2025. Automakers, the UAW and many dealers favor the lower standards, and the lobbying efforts are an attempt to convince Washington that the lower standards would be tough but possible, while the higher standards would absolutely cripple the industry.

Just last week, Senate Majority Leader Harry Reid (D-Nevada) told the CEOs from the Big Three that the debate was over regarding CAFE standards. Perhaps that was a bit premature, as Sen. Richard Durbin, D-Illinois, has stated that the vote will be very close if the Senate were to vote today. This is getting very interesting, and we will certainly be following this story closely.

Related:

• Majority Leader Harry Reid: The debate on raising CAFE standards is over. It will happen.

[Source: Automotive News (sub. required) and Detroit News]

Planetary Fuels, a Seattle, Washington-based biodiesel startup, has filed to set up their first production facility outside of Seattle which includes the installation of tankage with a combined capacity of 442,000 gallons. The plant should produce around 6 million gallons of biodiesel per annum using crops from local farmers. The company plans to build a series of small scale biodiesel plants that can produce between 2 million and 6 million gallons of biodiesel per year each.

Analysis: I sat down with Planetary Fuels founder, Ophir Ronen, last year to discuss his roll-out strategy. He told me that the plan is to utilise his IT experience from co-founding Internap Network Services plus IT methodologies to the world of biodiesel production. Planetary Fuels will be a company to keep an eye on.

Related:

• NEVs may get more speed in Washington State
• Canola biodiesel crops could damage seed crops in Washington state
• Safeway starts down the slow road to national B20 availability

[Source: Seattle Post Intelligencer]

For the 2006 model year, the state of Washington purchased 222 Toyota Prius cars compared to 218 gas-only models. The state also picked up some Ford Escape Hybrids and 390 flex-fuel vehicles. The state apparently gets a good deal on the Prius, paying about $2,000 below sticker. Does the state also get the IRS deduction?

So if you're wondering why you've been stuck on the waiting list for a Prius, blame Washington.

[Source: Puget Sound Business Journal]