"Fueling the Future"-Fuel Technology Gamble
Wednesday, May 16, 2007SUSIE GHARIB: As we reported earlier tonight, the price of gasoline could reach $4 a gallon this summer. That makes fueling the future an expensive proposition. Also expensive, paying for the technology to find ways to stretch gas mileage. General Motors is spending the money making big bets that may, or may not, pay off. As we continue our series "Fueling the Future," reporter Jonathan Silvers looks at how the auto maker wants to forge ahead on fuel economy.
JONATHAN SILVERS, NIGHTLY BUSINESS REPORT CORRESPONDENT: The internal combustion engine made possible the unprecedented economic growth of the 20th century. And while the same machine in the 21st century is threatening to undo what it built, the global car market is surging. More vehicles will be made in the next 20 years than during the previous 100. Sixteen million will end up on American roads and with little alternative fuel available, virtually all will run on gasoline. Fuel efficiency for passenger vehicles has doubled since the Arab oil embargo of 1974. But today, the U.S. has twice as many cars on the road and uses 60 percent more gasoline than it did 30 years ago. Brett Smith of the Center for Automotive Research says this level of consumption will continue for the foreseeable future.
BRETT SMITH, CENTER FOR AUTOMOTIVE RESEARCH: It`s easy to say, "I believe in fuel economy. Fuel economy is good." On a personal basis, I can say that. On a social basis, we can say that. But you don`t really believe it when it comes to changing the type of vehicle I drive, downsizing the type of vehicle I drive, buying a vehicle with less performance. And from a car industry standpoint, that`s scary.
SILVERS: No one at General Motors looks frightened, certainly not Mark Maher, GMs executive director of powertrain vehicle integration.
MARK MAHER, EXEC. DIR., POWERTRAIN VEHICLE INTEGRATION, GM: GM produces 24 vehicles in 2007 that have 30 miles per gallon or better on the highway.
SILVERS: Last month at the GM proving grounds, Maher was exuberant testing a Pontiac Solstice, despite learning that Toyota had overtaken GM as the world`s largest auto maker.
MAHER: We`re going to see ongoing pressure from a competitive standpoint to improve passenger car fuel economy so there`s going to be big improvements in each segment in which we participate.
SILVERS: This year, GM powertrain launched 19 new or significantly revised engines and transmissions. They`re the most fuel efficient the auto maker has produced.
MAHER: In the short term, we`re focusing on improving what would be viewed as traditional propulsion technologies. In the midterm, there`ll be much more hybridization and more focus on electric propulsion as battery technology comes along. And then in the long term, we still think that -- hydrogen fueled vehicles probably -- hydrogen fuel cell propelled vehicles provide an ultimate vision solution. SILVER: GM is also trying to make up for a late start in the hybrid segment. It just introduced its first, the Saturn aura green line. It`s the most affordable hybrid in the marketplace, but its only $100 less than the Prius, which does more. The aura green is what the industry calls a mild hybrid. It can`t run solely on electric power, except at dead stops and it gets roughly nine miles per gallon less than the Prius. But it is a step forward says Mickey Bly, director of engineering for GM hybrid vehicles.
MICKEY BLY, DIR., ENGINEERING FOR GM HYBRID VEHICLES: While we weren`t the first, we feel that we have a very strong hybrid portfolio being introduced. We have had hybrids on the roads for the last four years in our bus fleet, which we thought was an important way to doing this, is going after the highest consuming vehicles first. We are seeing a lot of fuel efficiency technology being brought forth and the real challenge is making sure we have the most cost effective solutions that the customers can afford so they buy it.
SILVERS: The stakes have never been higher for GM and other ailing American auto makers. Brett Smith says betting on the wrong technology could prove fatal.
SMITH: The problem is the stakes are so incredibly high both in terms of, of the corporate results does my company survive and in terms of is it the right solution environmentally, socially and all these other challenges coming into it? It`s a great time to be in the business. But, it`s an incredibly uncertain time to be in the business.
SILVERS: Jonathan Silvers, "NIGHTLY BUSINESS REPORT."
GHARIB: Tomorrow night, as we continue our series "Fueling the Future," we`ll take you to an indy car race track, where all the vehicles are powered by pure ethanol. And we`ll show you a new type of gasoline engine that can boost fuel efficiency by 25 percent. You can see more of Jonathan Silver`s reporting on new automotive technology Friday night on the PBS program "Now." Check your local listings for air times in your area.
