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- i - HYBRID TECHNOLOGY: THE BENEFITS OF SWITCHING TO A HYBRID VEHICLE Prepared for Prof. Robert Marino School of Management Nazareth College of Rochester Prepared by Justin Dittmar Jenna Santucci Andy Dobrowski Nazareth College of Rochester November 19, 2004 - ii - MEMO TO: Prof. Robert Marino FROM: Justin Dittmar, Jenna Santucci, Andrew Dobrowski SUBJECT: Hybrid Technology DATE: November 19, 2004 21 st century transportation is not just a vision for the future—it is here today. Clean, fuel- efficient hybrid vehicles are now available, joining the alternatively fueled vehicles already on the road. With every passing year, the ranks of hybrid powered vehicles on the roads in America are bolstered, therefore making this a very viable and important topic for automobile users to be knowledgeable about. This report seeks to use the history of hybrids, technology of their working mechanisms, and comparisons of available models to determine consumer benefits. Specifically, these benefits include increased fuel-efficiency, environmental advantages, and long-term financial benefits. Ultimately, purchasing a slightly higher-priced hybrid will reimburse the consumer through fuel-efficiency and financial incentives from the federal and state government, as well as securing a healthy environment for future generations. We enjoyed working on this project, as tedious as some portions became. Hybrid technology was a general interest of the group, and having the opportunity to further examine the topic and present our findings to a group is has been a great experience. - iii - EXECUTIVE SUMMARY HYBRID TECHNOLOGY: THE BENEFITS OF SWITCHING TO A HYBRID VEHICLE Justin Dittmar Jenna Santucci Andy Dobrowski November 19, 2004 The emergence of hybrid technology shows not only the drive and ingenuity of the automobile industry, but also the realization of the growing costs associated with fuel consumption. However, while the American public is well aware of these concerns, very few have moved to hybrid technology for their automobiles, and in many cases, continue to purchase large, bulky sport utility vehicles, which burn gasoline at an accelerated rate. This is mainly due to indifference and ignorance of the alternatives to fully gasoline powered vehicles, which still dominate the automobile market. The reduction of fuel consumption through the use of gasoline and electric hybrid vehicles is evident through the decreased annual fuel costs and increased mileage per gallon of gasoline used by hybrid vehicles. Annual fuel costs range between $450 and $650 for hybrid vehicles, a product of these vehicles getting upwards of 60-70 miles per gallon. Emissions from fossil-fuel burning vehicles are destroying our environment. Hybrid vehicles reduce emissions by a considerable amount, such as in the case of the Ford Escape Hybrid, which boasts a reduction of 97 percent of total hydrocarbons and oxides of nitrogen emissions relative to other non-hybrid vehicles that meet today’s required emissions standards. To this end, we feel that it is important that American motorists, especially the younger generations, understand not only the technology that drives hybrid vehicles, but also the benefits of reducing fossil fuel usage. We feel that people should consider purchasing hybrid or other kinds of fuel efficient vehicles to help ease the gasoline reliance of the United States and reduce the harmful impacts of fuel consumption. Through this report, we intend to not only persuade, but to inform, yourself and others about the importance of your choices on our environment, economy, and society. - iv - CONTENTS INTRODUCTION…………………….………………………………………………… Hybrid History……………… ………………………………………………… 1 Purpose and Scope……………………………………………………………… 2 BACKGROUND……………………………………………………………………… … How Hybrid Technology Works………………………………………………… 2 Repair and Maintenance of Hybrid Vehicles…… ………………………………3 Comparison of Some Available Models………………………………… ………3 BENEFITS……………………………………………………………………………… Reduced Fuel Consumption/Environmental Benefits…………………………… 6 Long-term Financial Benefits…………………………………………………… 7 OPINION……………………………………………………………………………… … Interview with 2001 Toyota Prius Owner…………………………………………8 CONCLUSION…………………………………………………………………………… Conclusion and Recommendation ……………………………………………… 8 APPENDIX…………………………………………………………………………… … A. Interview Outline………… …………………………… ………………….9 B. Photographs… …………………………………………………………… 10 C. Bibliography……………………………………………………………… 11 - 1 - HYBRID TECHNOLOGY: THE BENEFITS OF SWITCHING TO A HYBRID VEHICLE HYBRID HISTORY With the advent of increased awareness of environmental concerns, along with the importance of fossil-fuel conservation, many alternatively powered vehicles have been launched on the American car market. Technology is constantly progressing to achieve breakthroughs with alternative fuel sources such as methanol, ethanol, compressed natural gas, and electric (Sparrow model pictured) promising to be “cleaner” than gasoline (producing fewer pollutants). These options, although an improvement from conventional gasoline, are unrealistic because they require a difficult modification of fuel storage and delivery systems. Other contenders for alternative fuel are electric power from hydrogen (a hydrogen fuel from water), and fuel cells (“stacks” of electricity used to refuel vehicles at “catalyst refilling stations”), although these options are impractical because storage-battery technology is still in progress. Most commonly, consumers are presented with the increasingly popular and most practical hybrid vehicle—the happy medium between electric vehicles and fuel-powered vehicles. It is the most attractive choice thus far because of practicality of resources. This vehicle combines a small internal-combustion engine with an electric motor to run with maximum power and minimum emissions, while also conserving fuel. First Construction of a Hybrid Vehicle Hybrid technology originated with diesel-electric locomotives and submarines in the early twentieth century. Submarines used diesel to operate and charge a battery above water. However, under water, this was not possible (diesel needs oxygen to operate). Therefore, the fully-charged battery was essential for use under water. Although diesel is not the common choice for engines in present-day hybrid vehicles, hybrid and diesel-electric systems operate in essentially the same manner; these systems have a dependence on both an electric motor and a fuel-powered engine. Ferdinand Porsche engineered the first successful hybrid car in 1928, and soon after many hobbyists constructed hybrid vehicles. Production in the major automotive companies, however, did not develop until recent years. Hybrids are not as uncommon as one would think; any vehicle that combines two or more sources of power that can directly or indirectly provide propulsion power is a hybrid. - 2 - The Resurfacing of Technologically Advanced Hybrid The American car market was technically saturated by 1990, when the average American household owned one car for each of its licensed drivers. However, Americans’ desire for luxury kept them buying more vehicles, bigger vehicles. One example includes the explosion of the sports utility vehicle craze. American automakers marketed the SUV to sporty “urbanites” and safety-conscious families. In reality, the SUV has been known to tip over, “gasoline-guzzle,” and be exempt from conventional car fuel economy standards because of its classification as a “light truck.” Although they have an average fuel efficiency of 20 percent less than the average passenger car, SUV sales have doubled between the years 1995-2001. These statistics show the concern for air pollutant reduction and the need to conserve gasoline furthering the development of the conventional hybrid vehicle, as well as the new SUV hybrid. In fact, the increased awareness is proved in results such as in a R.L. Polk & Co. Survey of 2003 automobiles showed that hybrid car registrations in the US rose to 43,435 automobiles, a 25.8 increase from 2002 numbers. 7 There are various types of hybrids available today, but Honda and Toyota were the first major automobile companies to manufacture hybrids. They proposed the Toyota Prius and the Honda Insight, first released in 1998. Newer designs have had decreased price tags yet perform comparably to their non-hybrid counterparts. For example, the new Honda Civic Hybrid appears identical to the non-hybrid, except it has up to a 50 percent increase in fuel efficiency. The redesigned 2004 Toyota Prius has improved passenger room, cargo area, and continues to increase in energy efficiency. The 2004- 2005 Ford Escape, the first hybrid SUV, shows the increased American trend to follow the hybrid lead. 8 Purpose and Scope In order to assure that others are well informed about hybrid technology, this report has been designed to discuss history, technical details, model specifications, and showcase benefits for consumers. This report, assigned by Prof. Robert Marino, requires us to not only provide the information necessary to make an informed decision and take a stance on our topic, but also to persuade. This is achieved in this report through graphs, specific details, dozens of Internet and text sources, as well as a first-hand account of a consumer’s positive experience with their hybrid vehicle purchase. Careful examination of the findings and assertions within this report will allow the reader to take their own positive stance on hybrid technology. How Hybrid Technology Works When most people hear the words “hybrid” and “vehicle” in the same sentence, they tend to think of a car that has to be plugged into a wall to recharge in order to be used. Others have the idea that hybrid vehicles do not perform at the same level as non- hybrid vehicles, and lack many of today’s available options, such as size, power and model variety. In order to make an informed decision about purchasing a hybrid vehicle, one must understand how hybrid technology works. A hybrid vehicle is essentially a - 3 - vehicle that combines two or more sources of power. There are examples of this type of technology outside of the consumer automobile market. For example, many types of trains, buses, and submarines have been using hybrid technology for years in order to provide a much cheaper alternative to relying on the internal-combustion engine. Hybrid vehicles that have been introduced to the American consumers in the past few years all use gasoline-electric systems that utilize a gasoline powered engine along with an electric motor to propel the vehicle. Hybrid vehicles use a standard twelve-volt battery that powers the basic car accessories, such as the radio, clock, and power locks and windows. The battery pack that powers the car runs on a voltage system that can have anywhere from 140-275 volts. There are basically two types of systems available in today’s hybrids: parallel and series. “A parallel hybrid allows for both the engine and the battery pack to work at the same time, while a series hybrid uses the gasoline engine to either charge the vehicles battery or the electric motor, however the gasoline engine never directly powers the vehicle”(1). The first hybrids introduced in 1998 utilized the parallel hybrid system. The Honda Insight is one of the vehicles that use the parallel system to power the car. Since the Insight cannot run solely on the electric motor itself, the car must rely on the internal- combustion engine. The electric motor is used to provide extra power during acceleration, utilize regenerative braking, increase torque, and to start the vehicle’s gasoline engine. By allowing the electric motor to start the car and provide most of the needed power during acceleration or heavy load situations, the amount of gasoline consumed is drastically reduced, as well as a reduction in harmful emissions. The Toyota Prius also uses the parallel technology, though the Prius differs from the Insight because it only uses the gasoline engine at speeds over 40 miles per hour. This means the gasoline engine is shut off when the car is stopped or idle, as it operates with virtually no gasoline and produces few emissions at speeds under 40 miles an hour. The Prius came out several months later than the Insight, and focuses more on using the electric motor as a low speed power source, rather than using it primarily to assist the gasoline powered engine. In the case of both vehicles, one of the most interesting features is the hybrid’s ability to recover electrical energy from braking. This energy is used to recharge the vehicle’s batteries that power the electric motor. This technology is called “regenerative braking”. In this situation, the hybrid uses the vehicle’s electric motor to slow the speed of the car, rather than solely depending on the vehicle’s brakes. The electric motor then generates power, replenishing batteries. Therefore, there is never the need to plug in or recharge a parallel series hybrid. REPAIR AND MAINTENANCE OF HYBRID VEHICLES Routine Maintenance Surprisingly, there are many similarities between a hybrid car and a conventional car. Routine maintenance can be easily completed through a local garage. After all, the hybrid has tires, brakes, shocks, suspension, an exhaust system, doors, and headlights— just as an ordinary vehicle does. 14 They are also just as safe as conventional vehicles; the majority of hybrid vehicles are small, quick, nimble, and rank high in safety for their weight class. In addition, SUV hybrids will probably have the same safety issues as conventional SUV’s. - 4 - Custom Maintenance An alternatively powered vehicle requires a new and different engine- management system that balances the demands of the internal-combustion engine and battery motor. So, it is understandable that there is the common misconception that there is a high probability of having to replace the batteries. In fact, the battery of a hybrid vehicle is long lasting and designed to last for the lifetime of the vehicle, somewhere between 150,000 and 250,000 miles. According to Toyota, since the Prius first went on sale in the United States in 2000, they have not replaced a single battery for wear and tear. If the battery should expire, the warranty covers the battery between eight and ten years, depending on the maker. Another common misconception is that private mechanics do not have the adequate resources to service hybrids. In fact, hybrids are actually easier to maintain than conventional vehicles because their electric motor is a simpler system, a system with less moving parts, therefore less components prone to breakage. While it is true that some custom maintenance is required, by the time the current hybrid warranty expires, the classes that are being taught in numerous states will help ensure that maintenance service workers will meet the current demands of consumers who own hybrid vehicles. Comparison of Some Available Models Toyota Prius The Toyota Prius, first introduced in Japan in 1988, has been sold in the American car market since 2000. One of the very first hybrid vehicles to be publicly available in the United States, this 4-door, 5-seat sedan is still recognized as a standard for small, fuel-efficient hybrid vehicles. The Prius contains a 70 horsepower, 1.5 liter, four- cylinder gasoline burning engine, which works in conjunction with a 44 horsepower electric motor. Unlike its Honda counterparts, the Prius runs primarily from the electric motor, allowing for a heavier car which can run at the same low fuel efficiency. The Prius weighs approximately 2,765 pounds, and can carry a payload of 800 pounds. This model comes with a continuously variable transmission (CVT) standard. This is an obvious advantage, as in most automatic transmission vehicles gasoline efficiency is lower than with a user-controlled manual gearshift. However, the Prius is able to provide fuel efficiency and convenience in the form of automatic transmission standard. In fact, the fuel efficiency of the Prius is so good, the vehicle gets upwards of 60 miles per gallon (mpg) during city driving, plus 51 mpg for highway driving. The decrease in fuel efficiency at high speeds is due to the drag coefficient, something Toyota’s main competitor, Honda, does account for more adequately. Early models of the Toyota Prius had a 0 to 60 mph acceleration of nearly 12 seconds, showcasing the car’s lack of acceleration and power. With the newest 2004 Prius model, however, acceleration time has been decreased to 10 seconds, and the Prius now performs better at achieving high speeds quickly. The base cost of the Toyota Prius is $19,995, with extra features pushing the price of the car upwards of $25,000. The Prius has been modified, upgraded, and evolved for over seven years, and the newest models of the Prius show some of the best performance and craftsmanship available for hybrid vehicles. - 5 - Honda Insight The Honda Insight is one of two models of hybrid vehicles available from Honda, pairing with the Civic Hybrid. A 3-door, 2-seat coupe, the Insight is not a family car. Having Honda’s Integrated Motor Assist power system standard on every Insight, a small gasoline engine is coupled with a small electric motor/generator combination. The gasoline motor is a 67 horsepower, 1.0 liter, 3-cylinder engine, which serves as the primary motor in the vehicle. Unlike Toyota, Honda develops their hybrid vehicles to be lighter and use the gasoline powered engine as the primary engine, with the electric motor as a supplement. The electric motor in the Insight is a 10 kW motor/generator that produces 13 horsepower. Also unlike Toyota, the Honda Insight comes standard with a 5 speed manual transmission, though starting with the 2001 model, was also available with a continuously variable transmission as an option. The major advantage of the Insight over other hybrid vehicles in fuel efficiency is its low drag coefficient. With a drag coefficient of a mere .25, the Insight requires 30 percent less power than a conventional automobile at highway speeds. In addition, the Insight is extremely lightweight. Made of primarily aluminum, plastic, and magnesium, the Insight weighs just 1,847 pounds, which is 40 percent lighter than comparable steel-bodies vehicles. A drawback of this construction is that the Insight can only handle a payload of 365 pounds, which in some cases may not even be enough to accommodate two occupants. The Insight is more fuel- efficient than its Toyota counterpart, getting highs of 68 mpg at highway speeds, as well as 61 mpg for city driving. This means the Insight can run approximately 690 miles on a full tank of gasoline. The acceleration of the Insight, much like the Prius, has improved over the years, and currently the Insight can accelerate from 0 to 60 mph in approximately 10.5 seconds. The base cost of the Honda Insight is $19,235, with extra features pushing the price of the car upwards of $21,280. While the Insight is quite possibly the most fuel efficient publicly available hybrid vehicle in the United States, it lacks performance and payload, limiting its potential use and consumer market. Ford Escape Hybrid The Ford Escape Hybrid is a brand-new model of hybrid vehicle, and the first such vehicle distributed by a Detroit automobile manufacturer. The Escape Hybrid, a fuel efficient version of Ford’s popular Ford Escape sport utility vehicle (SUV), is one of the best performing hybrid vehicles on the market. Ford claims that the performance and acceleration of the Escape Hybrid will match that of its standard V6 model, a claim that most reviews have, at least in part, agreed with. Combining a 2.3 liter four-cylinder gasoline engine with a 28 kW generator, a 65 kW permanent-magnet electric motor, and a 300-volt battery pack, the Escape Hybrid is loaded with power. All of these different components allow for the first truly “full hybrid” vehicle produced by Japanese or American manufacturers. This means that the Escape Hybrid can run without the gasoline motor running at all. In fact, the Escape Hybrid can run up to 25 mph without consuming any gasoline. Ford has estimated that the Escape Hybrid can run on electric approximately 40 percent of the time during bumper-to-bumper traffic. This heavy reliance on electric power significantly decreases harmful emissions from the Escape Hybrid. This SUV produces 97 percent less hydrocarbons and oxides of nitrogen than - 6 - other vehicles meeting today’s required emissions standards. Plus, it produces as little as half of the carbon dioxide as conventional vehicles. While the electric motor does decrease dependence on fuel, the overall size of the vehicle and the relatively large gasoline engine does hurt its fuel economy. For city driving, the Escape Hybrid averages 35 to 40 mpg. In conjunction with the 30 mpg it averages at highway speeds, the overall average for fuel consumption is 27 mpg, or about 500 miles on a full tank of gasoline. Despite the environmental and performance advantages of the Escape Hybrid, some of the more intriguing characteristics of the SUV are its look and options. Unlike other hybrids, which tend to have a curvy and “futuristic” look, the Escape Hybrid model looks almost identical to the standard V6 Escape model. In addition, the Escape Hybrid comes with a four-wheel-drive option, allowing customers to use the power and control of a four-wheel-drive transmission in a fuel-efficient hybrid vehicle. The Escape Hybrid also has the ability to haul large loads; at a tow rating of 1,000 pounds, the Escape Hybrid is more of a work vehicle than any other car, truck, or SUV in the hybrid class. The few drawbacks to this model are its relative low fuel efficiency for a hybrid vehicle, loss of cargo room from the V6 model (a loss of 6%), and increased weight (increase of 325 pounds). As the lone American manufacturer to produce a hybrid vehicle as of the 2005 model year, Ford has created to sound alternative to the traditional SUV with the Escape Hybrid. At a starting price tag of $19,000 (which can climb to $27,000 with options), the Escape Hybrid is a powerful, efficient, and low-cost alternative to the traditional SUV. Some Upcoming Models 2005 Saturn Vue Hybrid (pictured) 2005 Toyota Highlander Hybrid, 2005 Lexus RX400h Both the Highlander and RX400h will share the same size gasoline engine as their non-hybrid models; each will be equipped with a 3.3 liter six-cylinder engine that will produce 270 horsepower. The fuel economy on these models should be approximately 27.6 mpg, as well as a range of 600 miles to a full tank of gasoline. As with the Escape Hybrid, four-wheel-drive will be an option, however in the four-wheel-vehicles, two electric motors will be employed to handle the extra power drain. 2006 Chevrolet Equinox 2007 Chevrolet Malibu Hybrid 2007 Mercury Mariner Hybrid The Mariner Hybrid will be a small SUV with a design based on a sedan. With that in mind, the drive should be smoother and cargo room decreased from Ford’s other standard SUV models. On a full tank of gasoline, the Mariner Hybrid should get about 500 miles, or about 40 mpg. Like Ford’s first hybrid SUV, the Escape Hybrid, the Mariner Hybrid will be a full hybrid, running only the electric or the gasoline motor at any one time. [...]... next vehicle purchase, consider a hybrid vehicle, as hybrid technology will continue to develop as a driving force in the American automobile market for many years to come -9- APPENDIX A Form for Interview with Hybrid Vehicle Owner 1 What model of hybrid vehicle do you own? 2 Why did you originally consider purchasing a hybrid vehicle? 3 Why did you ultimately purchase hybrid vehicle over a traditio nal... (November 22, 2004 Hybrid Car.,” Wikipedia Online Encyclopedia, (November 18, 2004) Lazorony, Lucy., “Is a Hybrid Car Right for You?,” Bankrate, 2004, (November 18, 2004) Magliozzi, Ray and Tom., Hybrid Designs Raise Questions About Reliability, Repairs,” Detroit... the current hybrids get anywhere from 50-60 miles per gallon The estimated annual fuel cost to operate a hybrid vehicle is in the $450-$650 range, a drastic drop-off from, for example, a Jeep SUV, which has an annual fuel cost of $1,155 While the cost of gasoline continues to rise, hybrid manufacturers predict steadily increasing sales, along with many more car manufacturers introducing hybrid models... vehicle? 4 Are repairs for you hybrid, on average, more costly than on other vehicles you have owned? What options are available as far as where to have your car serviced? 5 What kind of cost-savings have you noticed since you started driving your hybrid? 6 What do you know about how hybrid technology works? 7 Overall, how pleased/displeased are you with your purchase of a hybrid vehicle? - 10 - APPENDIX... decisions in regards to whether or not they should purchase a hybrid vehicle The facts are clear: hybrid vehicles get better fuel economy, produce up to 90 percent fewer emissions, can provide comparable power and features, as well as be sleek and stylish For the average consumer, purchasing a hybrid vehicle should be viewed as a long-term investment As hybrid vehicles are generally more expensive to comparable... March 19, 2003, (November 22, 2004) Wickell, Dale., “Intro to the 2005 Ford Escape Hybrid SUV." About.Com, 2004, November 22, 2004) PICTURE SOURCES http://www.autosite.com/Previews/2005-ford-escape -hybrid. asp http://www.trilug.org/~chilcote/images/panel-big.jpg http://www.edmunds.com/media/2003/newyork/04.toyota.prius/04.toyota.prius.f34.500.jpg... Benefits Although hybrids generally cost approximately $3,000-$5,000 more than a conventional automobile within the same class at suggested retail price, there are numerous financial benefits gained by purchasing a hybrid vehicle This initial cost can be reimbursed through incentives such as decreased fuel costs and government deductions Increased Fuel Efficiency Fuel efficiency in a hybrid can be explained... approximately $938.00 The Civic Hybrid will compare at $652.00 After five years of high- fuel prices, the consumer saves $1,430 with a hybrid After ten years, the consumer would save about $2,860 Federal and State Incentives In addition to increased fuel efficiency, financial benefits can be attained through government programs, which provide incentives to environmentally-aware American hybrid owners Federal... one’s tax bracket Presently, consumers purchasing a new Honda Insight, Honda Civic Hybrid, or Toyota Prius by the end of 2005 are eligible for a "Clean-Fuel" vehicle tax deduction of up to $2,000 Ford believes its ne w Escape Hybrid will also be eligible under these guidelines Several states have enacted tax breaks for hybrid drivers, and others are considering them The most tax credits, deductions,... Overall, how pleased/displeased are you with your purchase of a hybrid vehicle? - 10 - APPENDIX B Photographs/Diagrams 2005 Ford Escape Hybrid 2004 Toyota Prius 2004 Honda Insight - 11 - Hybrid System Diagrams and Photographs Under the Hood of a Toyota Prius Major Components of a Hybrid Vehicle Honda Insight Engine Toyota Prius Engine Honda Insight Gasoline Engine with Electric Permanent Magnet Motor - 12 . Mariner Hybrid should get about 500 miles, or about 40 mpg. Like Ford’s first hybrid SUV, the Escape Hybrid, the Mariner Hybrid will be a full hybrid, . Bibliography……………………………………………………………… 11 - 1 - HYBRID TECHNOLOGY: THE BENEFITS OF SWITCHING TO A HYBRID VEHICLE HYBRID HISTORY With the advent of increased

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