Saturday, December 1, 2007

GM’s Green Tech Is Better Than Toyota’s

GM’s Green Tech Is Better Than Toyota’s

At least that is what Mercedes, Chrysler, and BMW think. I am admittedly proud of GM and, for obvious reasons, a bit more than prejudice in favor of the company that manufacturers most of what I sell. In this case I am quoting from an article published by Business Week. The following is some of what they had to say:

That’s right, GM , once a laggard in fuel efficiency technology, is making its nemesis Toyota, the undisputed image leader in fuel efficient transportation, take notice by starting a new and legitimate rivalry for the next generation of hybrid trucks, SUV’s, as well as plug in vehicles. Mercedes Benz, Chrysler and BMW all opted in 2005 to adopt GM’s hybrid technology in a four company venture, rather than to license Toyota’s hybrid hardware.

It may surprise many consumers that companies historically as finicky and image-conscious as Mercedes Benz and BMW would opt for GM’s hybrid technology over Toyota’s. After all, internal studies by GM showed that over 70% of consumers viewed GM as part of the problem when it come to climate change and the impact of automobiles on the environment, while Toyota was viewed as part of the solution.

GM began its hybrid technology program in the shadow of Toyota. The Japanese automaker introduced the Prius in 1998. All the while GM worked on diesel electric hybrid city buses with plans to leverage the technology in full size pick up trucks and SUV’s. Toyota was clearly successful in tapping into consumer desires and in developing a green halo that serves it well today. GM clearly underestimated the marketing power of technology.

Toyota’s hybrid system does not work well for towing or carrying heavy loads. That is why Toyota has not introduced a hybrid version of its full size Tundra pickup. The advantage the GM system has is that the engine speed remains constant while the gears are changing. This is extremely important to a truck or SUV when it is carrying a load or going up hill.

GM may not be known yet for “green” vehicles, but it is on a mission to change that. It was GM, after all that developed the EV-1 electric vehicle. According to David Cole, chairman of the Center for Automotive Research, “In a few years GM will probably be earning over half a billion dollars a year from other manufacturers in licensing technology, a big portion of which will be related to hybrids and plug-ins.”

This entire story can be read by going to this link. Your comments are welcome.

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