HybridCarsIQP

AStudyonHybridCars: EnvironmentalEffectsandConsumerHabits
AnInteractiveQualifyingProjecttobesubmittedtothefacultyofWorcesterPolytechnic InstituteinpartialfulfillmentoftherequirementsfortheDegreeofBachelorofScience.

SubmittedBy: MichaelBeliveau JamesRehberger JonathanRowell AlyssaXarras Submittedto: Submitted:28April2010

ProjectAdvisor: Prof.ChickeryKasouf

HybridCarsIQP

TableofContents
ListofFigures................................................................................................................................................4 Abstract.........................................................................................................................................................5 ExecutiveSummary.......................................................................................................................................6 Chapter1. Chapter2. Introduction..........................................................................................................................9 LiteratureReview................................................................................................................12

2.1EnvironmentalEffects.......................................................................................................................12 2.2Emissions...........................................................................................................................................14 2.3ProductionofCars ............................................................................................................................16 . 2.3.1ProductionEmissions.................................................................................................................16 2.3.2ProductionEnergyConsumption...............................................................................................20 2.3.3 RawMaterialsandRecycling..............................................................................................23

2.4ConsumerBehaviorandMarketingStrategy....................................................................................24 2.5Widespreadchangetohybrid/electricinsteadofgasoline/diesel...................................................34 2.6Conclusion.........................................................................................................................................34 Chapter3. Methodology.......................................................................................................................36

3.1QuantitativeDataAnalysis................................................................................................................36 3.1.1 3.1.2 EnergyConsumptionCalculations......................................................................................36 BreakevenCalculations.......................................................................................................37

3.2ConsumerAttitudesandSelling........................................................................................................38 3.2.1InterviewwithaCarSalesperson ..............................................................................................39 . 3.3FocusGroups ....................................................................................................................................40 . 3.3.1Peoplewhoboughtahybridinthepastyear............................................................................41 3.3.2Peoplewhoboughtanewcar(nonhybrid)inthepastyear....................................................41 Chapter4. Findings...............................................................................................................................43

4.1EmissionsandEfficiency...................................................................................................................43 4.1.1EnergyConsumptionforManufacturingVehicles.....................................................................43 4.1.2CO2EmissionsResultingManufacturingVehicles......................................................................44 4.4.3BreakEvenPoints.......................................................................................................................45 4.2PublicsViewonPurchasingVehicles...................................................................................................48 4.3SalesApproach:.................................................................................................................................52 4.4Incentives..........................................................................................................................................53 2

HybridCarsIQP 4.5FeasibilityofMassConversion..........................................................................................................54 Chapter5. Conclusions.........................................................................................................................56

AppendixA:FocusGroupTranscript..........................................................................................................59 Bibliography:...............................................................................................................................................85

HybridCarsIQP

ListofFigures
Figure1:TransportationAirQuality:SelectedFactsandFigures2002......................................................15 Figure2:CO2Emissions(kgC)ResultingfromtheProductionofAutomobileComponentsfromVirgin Materialsforallvehiclesconsideredinthisstudy,bymaterial..................................................................18 Figure3:CO2Emissions(kgC)ResultingfromtheProductionofAutomobileComponentsfrom SecondaryMaterialsforallvehiclesconsideredinthisstudy,bymaterial................................................19 Figure4:EnergyUseinVehicleProduction(inMJperkgofmaterial)......................................................20 Figure5:VehicleMass(inkg)byMaterialforallVehiclesConsideredinThisStudy.................................22 Figure6:TopFourteenReasonsPeopleBuyHybrids.Source:RoadandTravelMagazine,June24,2009. ....................................................................................................................................................................25 Figure7:FederalTaxCreditsforHybrids....................................................................................................32 Figure8:CalculationSpreadsheetforEnergyConsumption......................................................................37 Figure9:BreakevenPointEquation ...........................................................................................................38 . Figure10:EnergyConsumptionforManufacturingVehicles.....................................................................44 . Figure11:CO2EmissionsResultingManufacturingVehicles .....................................................................45 Figure12:BreakevenPointforthe2010FordFusion...............................................................................46 Figure13:BreakevenPointforthe2010FordEscape...............................................................................47 Figure14:BreakevenPointfortheToyotaHighlander.............................................................................48

HybridCarsIQP

Abstract

Thispaperfocusedonhybridvehicletechnologyanditsintegrationintosociety.The encompassingissueansweredinthisprojectwaswhetherhybridsmeettheexpectationsfor environmentalbenefitssuggestedbymanypeople.Researchwasdoneistheareasoftypesof hybrids,consumertrends,andthefutureofhybridtechnology.Hybridproductionand efficiencydatawereanalyzedtoexaminethetechnicalaspectsofthetechnology.Afocus groupofpeoplewhorecentlyboughtcars,bothhybridsandnonhybrids,revealedwhat consumerslookforintheircars.Analysisoftheneedsofhybridtechnologyhelpeddetermine howfeasiblewidespreadchangetohybridswouldbeinfuture.Withallinformationtakeninto account,weconcludedthathybridshaveseveraldrawbacksthatoffsettheirfuelefficiency. Theirhigherpricebothturnsconsumersawayandmakesthevehiclesalessattractive economicinvestment.Energyefficientprocessingtechniquesneedtobedevelopedbeforethe advancedmaterialsinhybridscanhelpaddtotheircleanimage.Widespreadchangeto advancedhybridtechnologiesisnotafeasibleoptioninthenearfuturebecauseofbothcost andthelimitedamountofhybridsontheroadtoday.Overall,hybridtechnologyhasalotof potentialinthedistantfuture,butasforrightnowtheyarenotasignificantimprovementover todaysinternalcombustionengine.

HybridCarsIQP

ExecutiveSummary
ThisInteractiveQualifyingProjectfocusedontheeveradvancinghybridvehicle technologyanditsintegrationintosociety.Societyhasbeenmakingalargeefforttomake everythinggreenandcleanerintodaysworld,includingtransportation.Advertisementshave ledpeopletobelievethathybridcarspolluteless,willsavemoneyandreducedependenceon naturalfuelsources.Theencompassingquestionansweredinthispaperwas;dohybridslive uptoexpectationsthatsocietyhassuggestedoftheminthepastdecade? Thepushtodevelopgreentechnologiesstemsfromthefactthattheearths atmosphereisrapidlychanging.Thischangeislargelyduetohumanactivity;industry, transportation,waste,andeverydayliving.Everydaylargeamountsofpollutantsarereleased intotheatmosphereleadingthegreenhouseeffectandglobalwarming.Thisglobalwarming cancausemajorissuessuchasthemeltingofpolaricecapsandariseinsealevel,whichinturn wouldcauseintensefloodinginmostifnotallcoastlineareas,givingcausetootherdisasters suchasmasserosions,mudslides,outbreaksofdiseasetomorehumidclimates,coastal reformation,andotherdisasters.Givenenoughtime,asteadyincreaseofthesegasseswould alsochangethelengthandintensityoftheseasons,createdroughts,andincreasethe frequencyandimpactoflargestorms.Conjoinedeffortsarebeingmadebycountriesto understandthisgrowingdilemma,andscientistsaretryingtotheorizewaystoslowitseffects. Industryplaysalargeroleintheamountofemissionsthatarereleasedintothe atmosphere.Everyvehiclemanufacturedproducesemissions,bothwhilebeingmadeand whiledrivingontheroad.Theseemissionsincludenitrogengas(N2),carbondioxide(CO2), watervapor(H2O),carbonmonoxide(CO),hydrocarbonsorvolatileorganiccompounds (VOCs),andnitrogenoxides(NOandNO2,togethercalledNOx).1Regulationshavebeenplaced onindustriestotryandreducetheamountofpollutantsreleasedintotheatmosphere,but furtherstepsneedtobetaken.Energyconsumptionbyindustries,inthemanufacturingof products,alsoleadstopollutants.Whetheroil,coal,nuclear,orevenwaterorwindpoweris usedtocreateenergy,harmfulbyproductsarestillproduced.

Randy2009

HybridCarsIQP

Peoplebuynewcarsforavarietyofreasons,sometimesoutofnecessity,sometimesfor vanity,andsometimesforfun.Buyingacarisabiginvestmentandrequirestheconsideration ofmanydifferentvariables.Peoplelookintoprice,performance,safety,andreliabilitywhen searchingforanewcar.Withthegrowinginterestinsavingourplanet,manycompanieshave createdhybridcarsandthegovernmentisdevelopingincentiveprograms.Thesefactorshave enticedmanypeopletoconsiderbuyingthesevehicles. Withmanytypesofhybridtechnologyavailablethereismuchinterestinwidespread conversiontohybridtransportation.Withsuchamassiveworldpopulationandhigh dependencyontransportation,asignificantswitchtohybridsfromgasolineanddieselvehicles mustbemetbeforeanychangescanbeseen.Thiscouldmeanconvertingallofourgas stations;possiblytoelectricpluginstationsorhydrogenfillupstations.Awidespreadchange tohybridsrequiresanextendedperiodoftimeandalsomaynotbecosteffective.Manyofthe outcomesarenotworthallthatgoesintogettingtheadvancedtechnologyontheroad. Afterextensiveresearchwedecidedtofocusoncarproduction,efficiency,whatthings peopletakeintoconsiderationwhenbuyingacar,andwhatcurrentpurchasingtrendsare.To dothisweanalyzedemissions,energyandmaterialdataallowingustocompareenergy consumptionvalues,emissionlevels,andvehicleefficiency.Thisdatawasthengraphedto drawconclusions.Focusgroupswereorganized,forbothpeoplethatboughthybridsandnon hybrids,togatherconsumerpurchasinginformation.Aninterviewwasconductedwithalocal cardealershipownertodiscusshybridmarketingstrategies. Thedatasuggestedthattheproductionofhybridsconsumesmoreenergyandreleases moreemissionsthantheproductionofconventionalcars.Thisismostlybecauseofthe advancedmaterialsthatarerequiredinhybrids.Itwasalsodeterminedthathybridsarenota greatinvestmentfortheconsumer.Forahybridtobreakevenwiththehigherpricea consumerwillhavetodriveprimarilyinthecityandformoremilesthantheaverageperson keepsacarfor. Focusgroupparticipantsindicatedthatthereareavarietyofdifferentreasonsfor individualstopurchasenewvehicles.Themostprominentdecidingfactorswererelatedto lifestyle;havingtodowithfamilynecessities,dailycommute,differentpersonalactivities,or
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HybridCarsIQP

weatherconditions.Anothermajordecidingfactorforpurchasinganewvehiclewas affordability.Theinterviewwiththelocalcardealerverifiedthattheircurrentlyisnotmuchof amarketforhybridvehicles Wemadeseveralconclusionsabouthybridvehicles.Wefoundthathybridvehicles createmuchmoreemissionintheirproduction,beforeevenbeingdriven,insomecases consuminguptofourtimestheenergy.Althoughhybridcarstypicallyachievebettergas mileage,theyareinitiallymuchmoreexpensivethanconventionalvehicles.Iftheincreased initialcostofahybridistoomuch,theinvestmentwillbeveryhardtobreakevenwith.Hybrids mustbedriventohighmileagesincertainconditionstoreallybeworthpayingfor;these mileagesareoftenmanytimeshigherthantheaveragemileagethataconsumerkeepstheircar for.Inourfocusgroupofnonhybridvehicles,theadditionalinvestmentofahybridcarwas oftenadecidingfactoragainstpurchasingahybridvehicle.Othersinthenonhybridfocus groupwereunabletofindhybridvehiclesthatfittherequirementsthatwerenecessaryto accommodatetheirlifestyles.Thosethatpurchasedhybridvehicleswereoftendoingsoasa statementabouttheirconcernandeffortstosavingtheenvironment.Industryneedstofind cleanerandmoreefficientwayofproducinglightweightmaterialssuchasaluminumand carbonfiber,whichisusedinthecarbodies.Moreeffectiveandincreasedlevelsofrecycling wouldleadtomuchlowerenergyconsumptionandwouldaddtothecleanimageofhybrids. Hybridvehiclesneedtobeutilizedinsituationsthatwillbenefitthemostfromthem,suchas publictransportation.Itcanalsobeconcludedthatwidespreadimplementationofhybrid technologyisnotfeasibleatthistime.Theproductionofequallyefficienthybridvehiclesisnot greatenoughtocompetewithnonhybrids,botheconomicallyandnumerically.

HybridCarsIQP

Chapter1.

Introduction

Asmoderncultureandtechnologycontinuetodevelop,thegrowingpresenceofglobal warmingandirreversibleclimatechangedrawsincreasingamountsofconcernfromtheworlds population.Earthsclimateisbeginningtotransform,provenbythefrequentseverestorms, thedrasticshrinkingofpolaricecapsandmountainglaciers,theincreasedamountofflooding incoastalareas,andlongerdroughtsinaridsectionsoftheworld.Therearelargeholesinthe ozonelayeroftheearthsatmosphereandsmoglevelsareeverincreasing,leadingto decreasedairquality2.Itistruethatnaturalcausessuchasgeothermalventsandvolcanic hotspotsarepartoftheglobalwarmingproblembutmanyoftheissuesarestillaresultofthe massivequantitiesofgreenhousegassesthattheworldspopulationhasproducedinthepast fewcenturies.Ithasonlybeenwithinthepastfewdecadesthatmodernsocietyhasactually takennoticeofthesechangesanddecidedthatsomethingneedstochangeiftheglobal warmingprocessistobestopped,orevenslowedatthispointintime.Countriesaroundthe worldareworkingtodrasticallyreduceCO2emissionsaswellasotherharmfulenvironmental pollutants.Everythingfromcarsandindustriestolivestockandcropsarebeingstudiedand regulatedwithplansofminimizingpollutionlevels. Amongstthemostnotableproducersofthesepollutantsareautomobiles,whichare almostexclusivelypoweredbyinternalcombustionenginesandspewoutunhealthyemissions. Carsandtrucksareresponsibleforalmost25%ofCO2emission,andothermajortransportation methodsaccountforanother12%.3Withaglobalpopulationinexcessofsixbillion,andover 50%ofwhomliveinurbanareasandrelyontransportationtocontributetosociety.Inthe opinionofmany,carsarealargecontributortourbanpollutionslevelsand,inthebigger picture,globalwarming.Withimmensequantitiesofcarsontheroadtoday,purecombustion enginesarequicklybecomingatargetofglobalwarmingblame.Internalcombustionengines accountforalotofthepollutionproblems,buttheissuestillstandsastowhatsystemwilldrive thenextwaveofautomotivevehicles. Onepotentialalternativetotheworldsdependenceonstandardcombustionengine vehiclesarehybridcars.Hybrids,liketheirnamesuggests,arevehiclesthatutilizemultiple

2 3

Shanklin2009 Hopwoodetal.2009

HybridCarsIQP

formsoffueltopowertheirengines.Inthemajorityofmodernhybrids,carsarepoweredbya combinationoftraditionalgasolinepowerandtheadditionofanelectricmotor.Inthissortof hybridengine,thecombustionengineisusedathighspeedsforlongdistances,suchasthe highway,andtheelectricengineatlowspeedsandshortdistances,suchasinurbanareas.By incorporatingalternativeenergydrivetrainsintovehiclesthatalsousecombustionengines, theyallowforaslightlycleanermodeoftransportation.Hybridshowever,dostillusethe petroleumbasedenginewhiledrivingsotheyarenotcompletelyclean,justcleanerthan petroleumonlycars.Thisenableshybridcarstohavethepotentialtosegueintonew technologiesthatrelystrictlyonalternatefuelsources. Justascombustionenginesarestillbeingimproved,alternatefuelbasedtechnologies aremakingadvancementsaswell.Automotivecompaniesarecurrentlyinproductionofstrictly electriccarsalongwithmanymoredesignsthatarestillintheprototypestages.Alternative fuels,suchashydrogen,naturalgas,andbiodieselareextensivelystudiedandexploredin hopesofwidespreadfutureimplementationintosociety.However,manyofthesealternative fuelswillrequirefartoomanyresourcesfortheworldspopulationtofullyconverttowithin thenearfuture,ifatall.Fuelcellswouldrequireacompletereinventionoftheautomobile,not tomentionthenation'sgasstations,andthetechnologytoputthemontheroadisstillalong wayfromfruition.4Asisthecasewithmanyalternativefuelsources,agreatamountoftime andmoneywouldhavetobespenttochangethecurrentgasstationssothattheyare alternativefuelcompatible. Theintroductionofhybridtechnologyinthepastdecadewasthefirststeptowards turningtheworldspopulationintoamorefuelefficientandemissionsconscioussociety.There aredifferentclaims,however,astohowhelpfulhybridsactuallyareintheracetosavethe environment,withprojectionsrangingfromsignificantlytomarginally.Somesourcessay hybridcarscausesignificantlylessdamagetotheenvironmentthanthecurrentstandard combustionenginedrivetrain,whileothersarguethatifonelooksatgrowthprojectionsforoil consumption,hybridswillslowthegrowthrateofoilimportsonlymarginally,atbest,withthe

Hakim2005

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HybridCarsIQP

amountdependingonhowmanyhybridsaresold.5Manypeoplethinkthathybridsareakey answertomanyofthegreenhousegasissues;howevertheyareoverlookingthegreaterpicture regardingthesubjectofthehybridsthemselves.Themanufacturingofthesecarsandthe natureofalltheadvancedelectronicsinthemmayconflictwiththegreenerimagetheypose. Hybridsarecleanerontheroadbuttheirproductionmaynotbeableboastthesamestandard. Tofullyknowifhybridsgivemorethantheytake,onewouldneedtolookintoenergy consumptionandemissionsbefore,duringandaftertheirlifeontheroad. Ourgoalwastoinvestigatetheoveralleffectsontheenvironmentduetohybridcars whencomparedtotheircompetition.Bycomparingtheirmanufacturingprocesses,their functioninmodernsociety,andconsumerbehaviortowardsthem,wegainedabetter understandingofhybridvehiclesandtheireffectontheenvironment.Theresultofanalyzing thefulllifeofacar,bothfromtechnicalandconsumerstandpointsleadustomanyquestions aboutthesignificanceofhybridtechnology.Thisallowedustodetermineabetterapproach withfutureconversionfromcombustionenginestonewerpropulsionsystems.Thispaper includesourconclusionsonhowtobestapproachthefutureofhybridcars,botheconomically andresourcefully,andalsogivesourfinalverdictontheefficiencyofthehybridcar,notonlyas analternativetocombustionenginesintermsofenvironmentalimpact,butfromafinancial, economic,andsocialstandpointaswell.

Hakim2005

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HybridCarsIQP

Chapter2.

LiteratureReview

Therehasbeenmuchwrittenabouthybridtechnologyandalternateenergydrivetrains

inthepastdecade.Thereareargumentsbothforandagainstalmostanysubjectinthelarge topic.Inourpursuitoffullyunderstandingthisnewtechnologyanditsimpactsweexplored muchofthisinformationandtrytoapplyittoourproject.Weseparatedthisinformationinto categoriesincludingenvironmentaleffects,emissions,carproduction,andconsumerand marketingtrends. 2.1EnvironmentalEffects Thefearthatmankindhasbeentamperingwiththeearthsecosysteminirreparable wayshasbeenaroundformanyyears,whetheritbedrivenbyreligionorscience.Yetithas onlybeenrecentlythatsuchfearsnotonlyhavebeenjustified,butbeenprovenaswell.There isanincreaseinanxietyaboutthecurrentglobalsituationastheaverageglobaltemperature slowly,butsteadilyincreases. Alargeportionoftheprobableecologicalharmhasbeenassociatedwiththechangein theatmosphereofourplanetandhowthechangeinclimateisaffectedbywhatmodernday societycurrentlyconsidersstandardactivity.Humansareconstantlyaddingharmfulgases, commonlyknownasgreenhousegases,totheatmosphereatanalarmingandextremely harmfulpace.Whilemanyofthegassesthatarereleasedintotheatmosphere,suchascarbon dioxide,arenaturallyoccurringcompounds,thereareothersthataremostlymanmade,in particularchlorofluorocarbons(CFCs),whichsupplytheenvironmentwithextragreenhouse gases.6Greenhousegassesarecalledassuchbecausetheytrapheatinsidetheearths atmosphereeffectivelyprotectingandinsulatingit,whichinmostcasesisagoodthing. However,ifthereistoomuchofthesegasses,thentheoverallsurfacetemperatureofthe planetwillriseasmoreheatistrappedin.Itisthisreactionthatiscausingthedistinctclimate changethatweareseeingtoday,appropriatelylabeledasglobalwarming. Thisglobalwarmingcancausemajorissuessuchasthemeltingofpolaricecapsanda riseinsealevel,whichinturnwouldcauseintensefloodinginmostifnotallcoastlineareas,

Desonie2002

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HybridCarsIQP

givingcausetootherdisasterssuchasmasserosions,mudslides,outbreaksofdiseasetomore humidclimates,coastalreformation,andotherdisasters.Givenenoughtime,asteadyincrease ofthesegasseswouldalsochangethelengthandintensityoftheseasons,createdroughts,and increasethefrequencyandimpactoflargestorms.Organizationsaroundtheworldsuchasthe IntergovernmentalPanelonClimateChange(IPCC)examinethepotentialcausesandeffectsof humanrelatedclimatechange,andattempttounderstandtheimpactsthroughnational inventoriesandotherfindings.7 Conjoinedeffortsarebeingmadebycountriestounderstandthisgrowingdilemma,as wellascountriesconductingtheirownindividualresearch.NationalgroupsliketheU.S. EnvironmentalProtectionAgency(EPA),alsoestablishregulationstohelpreducegreenhouse gasemissions. AccordingtotheEPA,theaveragesurfacetemperatureoftheEarthhasincreasedby about1.2Fto1.4Finthepastonehundredyears.Expertspredictthattheaveragecould,and mostlikelywillincreasetoaround3.2Fto7.2Fbyapproximatelytheyear2100.8 Inorderformankindtocontrolandreducethegreenhousegasesthatweareemitting intoouratmosphere,astheycontinuetoshapetheenvironment,theremustbean investigationintowhytheyarebecomingmoreabundant.Manyscientistsbelievethatglobal warmingisthemostseriousthreattoourplanet.By2025theworld'senergydemandis projectedtobe3.5timesgreaterthanin1990,withannualCO2emissionsnearly50percent higher.9 Itisimperativeforustounderstandthenegativeeffectsthatenergyconsumptionhas onourenvironment.Howeveritisalsoimportanttoidentifywherethemajorityofthis consumptioniscomingfrom.Homes,lightingandheatingareallcontributingtotheproblem, yetcarsareamongthemostsignificantastheyareavailableinthegreatestnumbersallacross theworld,andareveryhighonthelistofthingstochange. Regretfully,thedemandsontodaysenergysourcesareveryextensive.People generallydonotthinkabouttheproductionofenergy,aflickofaswitchorpushofabuttonto

7 8

Irvingetal.2009 Randy2009 9 Desonie2002

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HybridCarsIQP

turniton,andtheinstantaneouspowerprovidedleadstoitbeingoverlooked.Adecreasein energyconsumptionwillreducethenegativeeffectupontheenvironment,givingusmoretime tofindareliablewaytomanageeverydaylifewithoutseverelyimpairingourplanet. IntheUnitedStates,ourenergyrelatedactivitiesaccountforthreequartersofour humangeneratedgreenhousegasemissions,mostlyintheformofcarbondioxideemissions fromburningfossilfuels.Morethanhalftheenergyrelatedemissionscomefromlarge stationarysourcessuchaspowerplants,whileaboutathirdcomesfromtransportation.10 AstheevidenceofourcarelessnessbecomesmoreblatantandhazardoustotheEarths inhabitants,themainquestionbeingaskednowis:whatshouldwedotofixthis?Because theseissuesaredirectlylinkedtotheamountofenergythathumansconsumeonadailybasis, itbecomesmoreimperativethatchangesmustbemadetosaveenergyandreduceourwaste production.Itisimportanttoinvestigateallfactorsinmodern,everydaylifetosolvethisissue. Itisrequiredthatwecontinuetolookintowaystoslow,andatsomepoint,fixthedamageswe havedonetotheenvironment. 2.2Emissions Wheneveracarisstarted,sittingidleordrivingitisproducingemissionsthatarefilling ouratmosphere.Theseemissionsincludenitrogengas(N2),carbondioxide(CO2),watervapor (H2O),carbonmonoxide(CO),hydrocarbonsorvolatileorganiccompounds(VOCs),and nitrogenoxides(NOandNO2,togethercalledNOx).11Theairwebreatheismadeupof78 percentnitrogengasandinthecaseofanengine;mostofitjustpassesrightthroughandisnot consideredaharmfulemission.Aproductofcombustioniscarbon,whichwhenbondedto oxygenproducesCOandCO2,apoisongasandabelievedculpritofglobalwarming.VOCsare producedfromevaporated,unburnedfuelsandareamajorcomponentofsmog.NOxarealso majorcomponentofsmogaswellacidrain.Manyoftheseemissionsarenaturallyoccurring compoundsbuttheconcerningpartaboutthemisthelevelsinwhichtheyareproducedby cars.TheFederalHighwayAdministrationhasdocumentedthelevelsoftheseemissionsand howmuchofeachcompoundisproducedbycars(seeFigure1).

10
11

Randy2009 Bryantetal.2008

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HybridCarsIQP

AirPollutant OxidesofNitrogen (NOx) VolatileOrganic Compounds(VOC) CarbonMonoxide (CO) ParticulateMatter (PM10) CarbonDioxide(CO2)

ProportionfromOn roadMotorVehicles 34% 34% 51% 10% 33%

Note precursortogroundlevelozone(smog),whichdamagesthe respiratorysystemandinjuresplants precursortogroundlevelozone(smog),whichdamagesthe respiratorysystemandinjuresplants contributestosmogproduction;poisonousinhighconcentrations doesnotincludedustfrompavedandunpavedroads, whichare themajorsourceofparticulatematterpollution(50%ofthetotal) thoughttobeprimarycontributortoglobalwarming

Figure1:TransportationAirQuality:SelectedFactsandFigures200212.

AccordingtotheEPA.govwebsite,foreverygallonofgasolineused,about20poundsof carbondioxide(CO2)arepumpedintotheair.Here'showitaddsup:Agallonofgasoline weighsjustover6pounds.Whenburned,thecarboninitcombineswithoxygentoproduce about19poundsofCO2.Addingintheenergythatwentintomakinganddistributingthefuel, thetotalglobalwarmingpollutionisabout25poundsofCO2pergallon.Anaveragecarthat gets21mpgandisdrivenabout30milesadayuses1.4gallonsdailyandemits35.7poundsof CO2everyday.13Anaveragehouseholdwithtwomediumsizedsedansemitsmorethan20,000 poundsofcarbondioxide(CO2)ayear.14Onealsohastothinkaboutallofthefamiliesthat ownmorethantwocarsorhaveavehicleotherthanasedan,suchasatruckorSUV.Notall vehiclesburnthesameamountofgasolineandthereforedonotallproducethesameamount ofemissions.Forthepurposeofthispaper,onecanplacealltrucksandmidsizesinthe categoryofSUVs.Onaverage,SUVsemit40%moreexhaustthansmallercarsandthe percentageofSUVsonAmericanroadstodayisover30%.15Whentakingintoaccountthe amountoflargervehiclesontheroadtoday,thenumbersprovidedfortheaverageCO2 emissionsforatwosedanfamilycanbesignificantlyincreasedtoreflectactualamountsof pollution.

12 13

Sterba2009 Desonie2002 14 Irvingetal.2009 15 Antenora2008

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HybridCarsIQP

Hybridcarsshouldnotcreateasmuchemissionswhiledriving,becausethegasoline engineisnotonallofthetime.Thewholeconceptofasecondpowersource,however,adds weighttoacarwithoutbeingabletoremoveanyweight.Electricenginesaremadeupoflarge amountsofcopperwireswhichultimatelyjustaddmasstothecar.Hybridsarecommonlythe sameweightandsometimesheavierthanasimilarlysizedcar,whichmeansmorepowerhasto beproducedthanusualtoachievecomparableperformance.Theneedtoproducemore poweraddsemissionstothehybridsloweredemissionlevelswhichbringsthemclosertoeven withconventionalcars.Incitiesorstopandgotraffichybridsaregreatfortheenvironment, creatingalmostzeroemissions,butwhenhybridcarsaredrivingonroadssuchashighways theyareinessencenormalcarsbecausetheelectricmotorisnotrunningatall.Takingallof thesefactorsintoaccount,hybridcars,onaverageonlycreateabouta20percentreductionin CO2emissions.16 2.3ProductionofCars Whenmostpeoplethinkaboutcarstheygenerallydontconsiderwhatgoesinto makingthem.Rawmaterialshavetoobtained,whetherthatmeansbeingmined,melted,and carburizedorsomeothermethod.Thesematerialsmustbetransportedtovariousplantsand factoriesbeforetheyaremadeintocarcomponents.Transportation,whetheritisbyplane, trainorautomobileallrequiresresourceslikefuelandoilandmanpower.Onceinaproduction area,evenmoreresourcesareusedtocreatepartsandtheneventuallyfinishedproducts.This isallbeforeacarisevenseenbyaconsumer,butwhathappensaftertheconsumerisfinished withthecar?Recyclingisamajorbusinessinthisdayandage,buthowmuchofacarcanbe recycled?Howmuchemissionsarebeingproducedbytheserecyclingprocesses.Whatkindsof byproductsarebeingproduced,throughouttheentirelifetimeofcars?
2.3.1ProductionEmissions

Carswithdifferentpropulsiondevicesaregoingtoneeddifferenttypesofmaterials. Thingsliketires,windowsandpaintarethingsthatareprettymuchallthesameinallcarsand youdonotfindmuchvariationintheamountneededtocompleteacar.Materialslikelead andnickel,however,havealargedifferencebetweencars.TraditionalICEcarshaveleadbased

16

Giggs2009

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HybridCarsIQP

batteriesandzeronickelcomponents,whilehybridshavelargenickelbasedbatteriesandno lead.Emissionslevels,specificallyCO2levels,fortheprocessingofthematerialthatmakeup carscanbelookedatandcomparedagainsteachothertohelpunderstandifhybridsarebetter fortheenvironment.Inthecaseofthebatteries,forexample,fromtherawmaterialstate,the productionofleadbasedbatteriesproduces9kgC,andtheproductionofnickelbasedbatteries produces2430kgCandashighas215kgCinthecaseofastrictlyelectriccar.Ifcompanies weretouse100%recycledmaterials,thedifferencebetweentheCO2emissionslevelswouldbe evenmoresevere.Figure2andFigure3showCO2theemissions(kgC)resultingfromthe productionofautomobilecomponentsfrombothrawmaterialsand100%recycledmaterials.

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PowerPlant Fuel Drive Body TotalFerrous Metals Aluminum Glass Magnesium Copper Zinc Lead Plastics Rubber Wood,Felts, Carpets,etc. Paint,Coatings Nickel Others Total Current SIICE Gasoline Auto 778 290 22 57 18 7 9 188 79 120 9 0 N/A 1577 Baseline SIICE Gasoline Autocl. 589 348 22 117 18 7 9 182 74 120 9 0 N/A 1492 Advanced SIICE Gasoline Autocl. 285 1224 22 117 18 3 9 188 74 120 9 0 N/A 2069 Advanced CIICE Diesel Autocl. 333 1205 22 117 18 3 9 203 74 120 9 0 N/A 2113 Advanced SIHybrid Gasoline CVT 307 1193 22 117 22 3 0 180 74 120 9 24 N/A 2070 Advanced CIHybrid Diesel CVT 340 1179 22 117 22 3 0 190 74 120 9 24 N/A 2100 Advanced SIHybrid CNG CVT 304 1247 22 117 22 3 0 196 74 120 9 24 N/A 2137 Advanced FCHybrid Gasoline Direct 563 1090 22 117 22 3 0 135 74 120 9 30 N/A 2206 Advanced FCHybrid Methanol Direct 496 1088 22 117 22 3 0 133 74 120 9 28 N/A 2129 Advanced FCHybrid Hydrogen Direct 419 1269 22 117 22 3 0 185 74 120 9 27 N/A 2282 Advanced Electric Electricity Direct 373 1086 22 117 22 3 0 149 74 120 9 215 N/A 2194

Figure2:CO2Emissions(kgC)ResultingfromtheProductionofAutomobileComponentsfromVirginMaterialsforallvehiclesconsideredinthisstudy,bymaterial.17

17

AuYeungetal.2009

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HybridCarsIQP
PowerPlant Fuel Drive Body TotalFerrous Metals Aluminum Glass Magnesium Copper Zinc Lead Plastics Rubber Wood,Felts, Carpets,etc. Paint,Coatings Nickel Others Total Current SIICE Gasoline Auto 481 59 11 6 8 2 2 94 79 60 5 0 N/A 806 Baseline SIICE Gasoline Autocl. 362 70 11 11 8 2 2 91 74 60 5 0 N/A 698 Advanced SIICE Gasoline Autocl. 176 248 11 11 8 1 2 94 74 60 5 0 N/A 690 Advanced CIICE Diesel Autocl. 206 244 11 11 8 1 2 102 74 60 5 0 N/A 723 Advanced SIHybrid Gasoline CVT 190 242 11 11 10 1 0 90 74 60 5 24 N/A 716 Advanced CIHybrid Diesel CVT 210 239 11 11 10 1 0 95 74 60 5 24 N/A 740 Advanced SIHybrid CNG CVT 188 253 11 11 10 1 0 98 74 60 5 24 N/A 733 Advanced FCHybrid Gasoline Direct 348 221 11 11 19 1 0 68 74 60 5 30 N/A 847 Advanced FCHybrid Methanol Direct 307 220 11 11 18 1 0 66 74 60 5 28 N/A 801 Advanced FCHybrid Hydrogen Direct 259 257 11 11 17 1 0 93 74 60 5 27 N/A 814 Advanced Electric Electricity Direct 231 220 11 11 12 1 0 75 74 60 5 215 N/A 913

Figure3:CO2Emissions(kgC)ResultingfromtheProductionofAutomobileComponentsfromSecondaryMaterialsforallvehiclesconsideredinthisstudy,bymaterial.18

18

AuYeungetal.2009

19

HybridCarsIQP

Carbondioxideisnottheonlyemissionthatisharmfultotheenvironmentthough, manyotherbiproductsarereleased.Otherpollutantsmaycomefrompainting,fiberglassing, moldingandcleaningparts.Forthepurposeofthispaper,wecanassumethatthesearefairly constantintheirbiproductsandtheydonotvaryfromhybridstotraditionalcarsenoughto makeasignificantdifferenceinourdata.

2.3.2ProductionEnergyConsumption

Thematerialsinwhichcarsaremadefromneedtocomefromsomewhere,andby whateverprocessthatmaybe,allofthemuseenergy.Certainprocessestakemoreenergy thanothersandallofthisaddstoboththecostofthecarandtheeffectithasonthe environment.Theenergythatgoesintotheseprocesseshastocomefromapowerplantof somesort.Powerplantsmaybecoalfired,nuclear,hydroelectric,windpoweredorrunby variousothersmallermethods.Nomatterwhatsourcetheenergyhascomefrom,thereare negativeeffectstotheenvironmentthatgohandinhandwiththem.Figure4showsenergy usethatgoesintotheproductionofvehiclematerials.

PrimaryProduction (0%Recycling) Automotive Singhetal. Engineering (1998) (1996) 52.3(1) 40.0 34.0 19.3(2) 196.0 206.6 189.0 205.2 90.0 30.078.7(3) 30.0 21.6(3) 274.0 100.0 53.0 41.1 67.6 113.7 28.0(3) 40.5(3) 110.0 SecondaryProduction (100%Recycling) Automotive ThisStudy Engineering (1996) 30.0 18.1 24.0 40.0 26.7 26.0 15.0 13.0 27.2 45.0 15.9 8.0 43.6 45.0 15.0 27.00 45.0 16.0 8.0 N/A 110.0

ThisStudy

FerrousMetals Steel Iron Aluminum Wrought Cast Stamped Plastics Glass Magnesium, Cast Copper Zinc Lead Rubber Nickel
19

40.0

220.0

90.0 30.0 280.0 100.0 50.0 40.0 70.0 110.0

Figure4:EnergyUseinVehicleProduction(inMJperkgofmaterial).19

AuYeungetal.2009

20

HybridCarsIQP
NOTE:Allnumbersareexpressedinprimaryenergyrequirements.ThecolumnsThisStudyindicatethe roundednumbersthatwehaveemployedinthisstudy;aswedonotdistinguishbetweenironandsteel, energyintensitiesareidenticalforbothmaterialsandareincludedinouraggregatecategoryferrousmetals. (1) Virginsteelparts;(2)pigiron;(3)mainproductionprocessonly.Source:OnetheRoadin2020,October 2000.

Manyhybridcompaniesaredesigningtheircarstobelighterinorordertotryanduse energymoreefficientlywhiledriving.Thewayinwhichmanycompaniesachievethisisby usinglightermaterials,suchasaluminum,inthebodyasopposedtosteelwhichisaboutthree timesasdenseasaluminum.Thisdoeshelptousethecarsenergymoreefficientlyiftheiscar lighter,butatwhatexpense?Theprocessingofaluminumcanuseuptotentimestheamount ofenergyusetoprocessthesameamountofsteel.Chancesarethattheamountofextra energyusedtoproducethealuminumisnotjustifiedbytheamountofenergysavedinthe drivingofthehybridcar.Figure5showsamountsofcertainmaterialsandhowthevaryin differentcars.UsingthemassesinFigure5andtheenergyusageinFigure4,wecancalculate howmuchmoreenergygoesintocertainprocessesofmakingacar.Bycomparingthe differencesinenergyconsumptionofproductiontotheenergysavedbydrivingalightercar, weareabletodetermineiftheextraproductionisjustified.

21

HybridCarsIQP
PowerPlant Fuel Drive Body Ferrous Metals Aluminum Glass Magnesium Copper Zinc Lead Plastics Rubber Wood,Felts, Carpets,etc. Paint, Coatings Nickel Others Total Current SIICE Gasoline Auto 886 81 35 10 9 7 10 100 54 64 5 0 9 1323 Baseline SIICE Gasoline Autocl. 667 97 35 20 9 7 10 97 50 64 5 0 9 1108 Advanced SIICE Gasoline Autocl. 325 342 35 20 9 3 10 100 50 64 5 0 9 1007 Advanced CIICE Diesel Autocl. 379 337 35 20 9 3 10 108 50 64 5 0 9 1061 Advanced SIHybrid Gasoline CVT 350 334 35 20 10 3 0 96 50 64 5 10 17 1022 Advanced CIHybrid Diesel CVT 387 330 35 20 10 3 0 101 50 64 5 11 17 1059 Advanced SIHybrid CNG CVT 346 349 35 20 10 3 0 104 50 64 5 10 17 1038 Advanced FCHybrid Gasoline Direct 640 305 35 20 21 3 0 72 50 64 5 13 76 1329 Advanced FC Hybrid Methanol Direct 565 304 35 20 19 3 0 71 50 64 5 12 62 1251 Advanced FCHybrid Hydrogen Direct 477 355 35 20 18 3 0 99 50 64 5 12 37 1177 Advanced Electric Electricity Direct 425 304 35 20 13 3 0 79 50 64 5 93 84 1175

Figure5:VehicleMass(inkg)byMaterialforallVehiclesConsideredinThisStudy.20

20

AuYeungetal.2009

22

HybridCarsIQP

2.3.3

RawMaterialsandRecycling

Intodayssociety,recyclingisaverymaturebusiness;almostanythingthatcanbe recycledisurgedtoberecycled.Recyclingisnotonlygoodfortheenvironment,butalsoless expensiveforindustrywhencomparedagainststartingfromrawmaterialalloveragain. ReferringbacktoFigure4,allofthematerialsdisplayedarecheapertoprocessinarecycled statebecausetheoriginalstagesofproduction,suchasmining,canbeskipped.Insomecases, suchascastmagnesium,recyclingproductiontakes90%lessenergythanproducingtheraw material. Conventionalcars,forthemostpart,haveleadacidbatteriestopowertheirelectrical systems.Theautoindustryusesoveronemillionmetrictonsofleadeveryyear,with90% goingtoconventionalleadacidvehiclebatteries.Morethan40,000metrictonsofleadislost tolandfillseveryyear.AccordingtothefederalToxicReleaseInventory,another70,000metric tonsarereleasedintheleadminingandmanufacturingprocess.21Notallofthe110,000metric tonsofleadthatisreleasedintotheenvironmenteveryyearcomesfromtheautoindustry,but theyarestillacontributor.Thisamountofreleasedleadisquitelargewhenonethinksabout theleadrecyclingindustry,whichisverymature.Objectscontaininglead,likecarbatteries,are highlyencouragedtobecleanlyrecycledandnotjustthrowninthegarbageattheendoftheir lives.Carcompaniesencouragecleanrecyclingtotryandreducetheirnegativeimpactonthe environmentandmanyevenoffertodotherecyclingthemselves.Toyotaoffersa$200bounty toensurethateverybatterycomesbacktothecompany.Inapressrelease,Toyotastates, "Everypartofthebattery,fromthepreciousmetalstotheplastic,plates,steelcaseandthe wiring,isrecycled."Hondacollectsthebatteryandtransfersittoapreferredrecyclertofollow theirprescribedprocess:disassemblingandsortingthematerials;shreddingtheplastic material;recoveringandprocessingthemetal;andneutralizingthealkalinematerialbefore sendingittoalandfill.22

21 22

Berman2006 Berman2006

23

HybridCarsIQP

2.4ConsumerBehaviorandMarketingStrategy Therearemanyreasonswhypeopledecidedtopurchaseanewvehicle.In2009itwas foundthattheprimarymotivationforbuyinganewcarwashighmileageontheconsumers previousorcurrentcar.Whenavehicleattainshighmileage,typicallyproblemswiththecars conditionarise,whethertheexteriorofthecariserodingorbeginningtolookworn,the interiormightbeunkemptandgrungy,orthecarmightbegintohavemechanicalproblems. Carswhichcontinuallybreakdownandspendexcessiveamountsoftimebeingrepairedcan workouttobeaverycostlyexpense.Inthelongrunitismoreeconomicaltobuynewandhave thesatisfactionandknowledgethatthecarwillbecoveredunderawarranty23,before problemsarise,mostpeopletrytosellhisorhercarandthenpurchaseanewone,or,ifthese problemsoccurredunexpectedly,ratherthanspendingmoneysenselesslyonavehiclethat mightnotbeworthit,itismoreresourcefulfortheownertoinvestinanewcar.24 Otherssometimesjustgettiredoftheirvehicleanddesiresomethingmoreupdated. Theymightwishforsomethingwithmoremoderntechnology,equippedwiththelatest machineryandfeatures,somethingmorecomfortableandwithacontemporarysleek appearance,Manypeoplearechoosingtogetanewercarbecausemanysafetyfeaturesnow comeasstandardonmostmakesandmodels.Airbagsfittedtoboththedriver'sandfront passengerareakeyfeaturemanypeoplenowlookfor.Additionalbackseatairbagsandside impactairbagsarebecomingincreasinglyrequestedsafetyfeaturesbypeoplelookingforfamily cars.25Correspondinglynewervehicleshaveadvancedsoundsystemsandnavigationsystems, electronicpowerfeaturesandinnovativevoicenotificationforroutinemaintenanceand reminders,keylessentry,sunroofs,increasedcomfortofseatingandamenities,andenhanced lighting,amongvariousotherluxuries.Alsohavingtodowithappearanceisthesizeofthe vehicle.Manypeoplerequireavehiclewithmoreroomandadditionalspacetocompensate foragrowingfamily,extracurricularactivities,etc.Corporationsarecontinuallyproducingnew andimprovedSUVs,minivans,trucks,andlargercarswithaddedroomandextraseatingthat

23
24

Giggs2009 Giggs2009 25 Giggs2009

24

HybridCarsIQP

arerequisitesfortheircustomers.Theselargeroptionslikewiseareequippedwiththeupdated moderntechnologyandfeaturesmandatoryforautomobilesproducedtoday. Apopularbenefitofthecarsproducedpresentlyisthattypicallytheyfeatureimproved gasmileage.Becauseofthisincreaseingaspricesaprevailingrationaleforgettinganewcaris thisnewcharacteristicofimprovedgasmileage.Goinghandinhandwiththedesireforbetter gasmileageisthedecisionforpeopletogogreen.Manyofthevehiclesthataremadewith bettergasmileage,orthatfeaturethegreatestgasmileage,arehybridvehiclesthatarealso betterfortheenvironmentandappealtothoseconcernedwithglobalwarmingandpollution, Going'green'ishighuponthelistformanypeople.Savingonfuelandrunningcostsisgiven carefulconsiderationbymanypeople.26
1.Oldcarhadhighmileage(35%) 2.Justtiredofoldcar,wantedsomethingnew(22%) 3.Oldcarwasalwaysinforrepairs(20%) 4.Wantedacarwithbettergasmileage(19%) 5.Oldcardied(18%) 6.Notsure(17%) 7.Likethestylingofnewermodels(15%) 8.Wantedavehiclewithbettersafetyfeatures(15%) 9.Gooddealstoohardtopassup(14%) 10.Neededanothercarforfamily(14%) 11.Significantotherwantedanewcar(12%) 12.Neededavehiclewithmoreroom(9%) 13.Wantedacarwithmorehightechtoys(6%) 14.Leaseonoldcarisup(5%)
Figure6:TopFourteenReasonsPeopleBuyHybrids.Source:RoadandTravelMagazine,June24,2009.

Studieshavebeenperformedontheconsumersofhybridvehicles,whichhaverevealed thatthesepeoplehavecertainaspectsinrespecttotheirpersonalitiesthatgivethemaunique profile.OnestudythatlooksattheprofileofhybridconsumersistheJ.D.PowerandAssociates 2008PowerAutoOfflineMediaReportSpringEdition.Thisstudyhadatargetaudienceof 44,931driversofnewcarsandtrucks.Thestudyexploresthecharacteristicsofhybridowners andpotentialhybridowners.Italsoevaluatesmediaviewingandreadershipbehaviors.

26

Giggs2009

25

HybridCarsIQP

Thecharacteristicsofhybridownersareforthemostpartlogical.Forexample,Those whopurchasehybridvehiclestendtohavemuchhigherlevelsofeducationandreportmuch higherhouseholdincomes.27Carbuyerswhohavemoreknowledgecanmakeaneducated andrationaldecisionbeforecommittingtoalargefinancialpurchase.Ahigherlevelof educationbenefitsthebuyerbecausethetoolsofresearchanddecisionmakingcanensure thatthebuyerreceivesthevehiclethatfitshisorherneeds.Italsocomesasnosurprisethat hybridownershavehigherincomesthanthoseoftraditionalvehicles.Theaverage$5000price differencebetweenhybridsandnonhybridsisnotsomethingmanyfamiliescanaffordtopay upfront.Thisquicklyeradicatestheoptionofahybrid.Theaverageageofahybridbuyeris fiftyfourwhiletheaveragetraditionalcarbuyerisagefifty. J.D.Powersstudyrevealedsomepositiveoutcomesabouthybridowners.Thestudy showedthatHybridownerstendtobeproudadvocatesoftheirvehicles(Mindsetprofile). Thissuggeststhattheyarepleasedwiththehybridtechnologyandtheyenjoysharingitwith others.Ingeneral,theygivemoreaffirmativesuggestionsthanthoseofothervehiclebuyers. Thisfacilitatesthehybridmarketbecausethosewhohaveactuallypurchasedahybridare givingrecommendationstoothers,whomay,inreturn,purchaseahybridthemselves. Manypeoplehaveadesiretopurchaseanenvironmentallyfriendlyvehicle.Thiscanbe seenbythelargenumberofhybridsbeingbothpurchasedandproduced.However,the demographicsforpeoplethatdesiregreencars,isinteresting.AJ.D.Powerstudydiscovered thatfemalesaremoreeagertopaymoreforanenvironmentallyfriendlyvehicle.IntheUnited States,certainareasaremoresupportiveofthispurchase.ThewesternU.S.hasthegreatest support,whiletheMidwesthastheleastsupport.Theenvironmentallyfriendlyconsumers showinterestincompactvehicles.Furthermore,mosthavepreviouslyownedsmallervehicles. Thepercentageismuchgreaterthanothernewcarbuyers.Thisjustifiesthatenvironmentally consciousconsumershaveatrendinpurchasingvehiclesthathaveexceptionalfuelefficiency. MindsetMediacreatedapsychographicprofileofhybridownersthatpointoutsome distinctpersonalityclassifications.Oneisthathybriddriversare78%morecreativethanthe commonpopulation.Thatis,theyareinventiveandimaginativeandalsotendtobe

27

Perrymanetal.2008

26

HybridCarsIQP

emotionallysensitiveandintellectuallycurious(mindsetprofile).Thecreativepersonality wouldexplainwhytheypartakeinthenewtechnologyoffered.Anotherreasonforthisisthey aremoreliberalthanthebroadpopulation.Theopenmindednessandspontaneitygivesthem interestinnewhybrids,notleavingthemwithasenseofdistrustintheadvancedtechnological aspectsofthevehicles. Eventhoughtherearemanypeoplewhoareenvironmentallyaware,notallofthem takeaction.TheJ.D.Powerstudyrevealedthatonly11%ofconsumersareverywillingtopay moretobuyanenvironmentallyfriendlyvehicle.Also,onlyoneoutoftenenvironmentalists haspurchasedahybrid.28Thestudyprovedthattheinterestinenvironmentallyfriendly vehiclesislimitedtohybrids.Consumersarenotinterestedinbuyingsocalledcleandiesel vehicles.29Manyofthenegativeaspectsofdieselvehicles,suchasthedirtyexhaust,have persistedwithconsumers. Throughresearch,interviews,andstudiesexaminershaveconcludedthatspecific symbolsexistforthosewhoownhybridvehicles.InastudydonebytheInstituteof TransportationStudiesattheUniversityofCalifornia,Davisitwasconcludedthatacertain symbolismappliestothemarketforhybrids.Inresponsetohouseholdinterviews,the denotationsofpreservingtheenvironment,oppositiontowar,managementofpersonal finances,reductionofsupporttooilproducers,andtheembracementofnewtechnologywere justified.Ethicswasamajorfactorinthesedenotations.Independenceandasenseof individualityalsocameintoplay.Theownersofhybridsfeelasthoughitistherightthingto doandcharacterizetheirvehiclesassomethingtheycanfeelgoodabout.30Therefore,owners giveprecedencetohisorherpurchaseinanethicalviewpoint.Itshowsthattheycare.Owners happilysacrificesomepersonalinterestsforthegreatergood.Inconjunctionwiththis sacrifice,ownershopethatthepurchaseofahybridwillhelpsetanexampleandcreatea futurewhereeveryonedriveshybrids.31

28 29

Perrymanetal.2008 LaMonica2008 30 Heffneretal.2007 31 Heffneretal.2007

27

HybridCarsIQP

Whenmarketinganewproduct,thegeneralwantsandneedsofyourtargetmarket shouldbeyourfocus,andfulfillingthosedeterminedrequirementsshouldbetheoverall objective.Thenewproductshouldbeanimprovementoverwhatitisattemptingtoreplace, moretechnologicallyadvancedandestheticallypleasingtoenticethepublicintopurchasing thisnewmerchandise.Traditionally,economistsandmarketresearchershavebeeninterested inidentifyingthefactorsthataffectconsumers'carbuyingbehaviorstoestimatemarketshare, andtothatendtheyhavedevelopedvariousmodelsofvehicletypechoice.However,theydo notusuallyconsiderconsumers'travelattitudes,personality,lifestyle,andmobilityasfactors thatmayaffectthevehicletypechoice.32 Lifestylesdeterminethetypesofvehiclesthatindividualspurchase.Someonethat makesasubstantialamountofmoney,anindividualwithahigherstatusoramoreeliteranking insocietyistypicallyinterestedinalavishvehiclethatisrepresentativeoftheaccomplishments madeorthepositionupheld,Statusseekersaremorelikelytodriveanexpensivecar(luxury andsportscategories)becausesuchcarsarecommonstatussymbolsinmodernsociety.33 Whereassomeonethatmakesalesssignificantamountofmoneyhastopurchaseavehicle moremodestandinlinewithwhatisaffordable.Familiesrequireautomotivesthatarecapable ofcarryingmultiplepassengers;thereforetheynecessitatelargercars,trucks,orSUVs.Single personsorcouplesusuallyhavelittleuseforlargervehiclesandmightprefersomethingsmaller ormorecompact. Demographically,apersonthatlivesinthecountrymightrequireatruckorlarger vehiclewithfourwheeldriveorthecapabilitiesofdrivingonroadsthatarenotinthebest condition,whereaspeoplethatdriveincitiesmightdesireacarthatismorecompactso compensateforlimitedspaceandsmallparkingareas,Thosewholikelivinginhighdensity areasmaychooseasmallercar(smallandcompactcategories)becausetheyhaveaccessible publictransitandrestrictionsonparking,makingthemlesslikelytocommutebycar.34 Somepeopledreadtheircommutetoworkortravelinganywhereingeneral.Toatone fortheirdislikeofdrivingtheyaremorelikelytobuyalarger,morecomfortablevehiclesothat

32 33

Chooetal.2003 Chooetal.2003 34 Chooetal.2003

28

HybridCarsIQP

theymightrelaxwhiledrivingandmaketheirexperiencelessfrustratingandmorepleasant. Though,eventhosethatenjoytravelingarelikelytobuytheseextravagantvehiclesinorderto maketheirexperiencethatmuchmoregratifying. Peoplethatareconcernedwiththeeffectsofemissionsontheenvironmentaremore attractedtosmallervehicleswithbettergasmileageinanattempttohaveamorepositive effectontheenvironment,Thosewhostronglysupportproenvironmentalpoliciesaremore likelytoprioritizereducingmobilesourceemissionsandthereforetodriveasmallercar(small andcompactcategories).35 Hybridvehiclescanbeanoverallimprovementoverconventionalvehicles,butonly whenmanypositivefactorsallculminateatonce,whichisunlikely.Thesevehiclesarenow availableinnumerousmodelsofalldifferentsizes,capableoffillingtherequirementsforsingle individualsorfamilies.Theyaremoretechnologicallyadvanced,characteristicallytheir appearanceismoremodernanddesirable,andbecausetherearesomanydifferentmodels andversionsofthesecarsnow,theyarebettersuitedforawholespectrumofpeoplewith differentdesiresandpersonalities.Atatimewhengaspricescontinuetoincrease,the economycontinuestostruggle,andmanyindividualsarebecomingincreasinglyawareof contaminationofourenvironment,thehybridvehiclehasbecomealluringtomanyasitalso addressestheseaboutmobility,travelattitudesandlifestyle.Hybridvehiclesareanoverall improvementoverconventionalvehicles,beingmoretechnologicallyadvanced, characteristicallytheirappearanceismoremodernanddesirable,itisappealingtothosethat arelookingtosavemoneyonfuel,andisalsotemptingtothoseconcernedwiththe environmentandthecurrentissuessurroundingglobalwarmingandpollution.Atatimewhen gaspricescontinuetoincrease,theeconomycontinuestostruggle,andmanyindividualsare becomingincreasinglyawareofcontaminationofourenvironment,thehybridvehiclehas becomealluringtomany. Duetothesteadilyincreasinggasprices,thepopularityofHybridvehiclesamong societyhasalsoescalated.Therearemanyreasonsforpurchasingthesenewtechnologically advancedautomotives;however,oneofthemorecurrentreasonsistheamountofmoney

35

Chooetal.2003

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HybridCarsIQP

customerssaveonfuel.Thesenewcarsareadvertisedtoachieveexceptionalgasmileage whencomparedwithconventionalcars.Itissaidthateventhoughtheyaretypicallymore expensiveinitially,theamountthatyousaveongaseventuallyallowsthepurchasertobreak evenandsavemoney,withgaspricesrisingevenfurtheritislikelythatyouwillrecoup thatupfrontpremiuminjustafewshortyears.36Forexample,theToyotaCamryHybridgets about31milespergalloninthecityand32milespergallononthehighway,whiletheToyota CamryV6getsabout21milespergallonand31milespergallonrespectively.Ifanindividual wastodriveabout15,000milesinayearwithgaspricesatabout$3.20agallon,theperson wouldsaveapproximately$547.00ayear,takingthreeyearstorecouptheupfrontpremium.37

Anotherissuefacingtheeconomyisglobalwarmingandtheeffectsofpollutiononusandthe environment.Thosethatbelieveandsupportintheworldgoinggreenlookatthelowerfossilfuel emissionsofhybridvehiclesasareasontobuythesecars.Withthecombinationofagasolineengine andanelectricmotor,hybridcarsproducelessemissionswhilebeingdriven,thussavingongasandalso helpingtheenvironment.Whilemosthybridcarsstillburngasolineinaninternalcombustionengine, theyalsouseotherformsofmotivepowertohelplimithowmuchgasolinetheyburn.Thismeansthat hybridcarscausesignificantlylessdamagetotheenvironmentthannormalcars.Itissaidthatevery gallonoffuelburnedproduces26poundsofcarbondioxidethatisthenreleasedintotheenvironment. Bydrivingacarthatismorefuelefficient,acarthatgetsabout10milesmorepergallonincomparison toyouroldcar,anindividualcanreducetheamountofcarbondioxidereleasedintotheenvironmentby about2,500poundseachyear.

Otherthanthepotentialsavingsonfuelandtheopportunitytogivebacktothe environment,therearealsostateandfederaltaxbenefitstopersuadecustomerstospendthe additionalmoneyinpurchasinganewhybridvehicle,TheEnergyPolicyActof2005replaced thecleanfuelburningdeductionwithataxcredit.Ataxcreditissubtracteddirectlyfromthe totalamountoffederaltaxowed,thusreducingoreveneliminatingthetaxpayerstax obligation.Thetaxcreditforhybridvehiclesappliestovehiclespurchasedorplacedinservice onorafterJanuary1,2006.Thecreditisonlyavailabletotheoriginalpurchaserofanew, qualifyingvehicle.Ifaqualifyingvehicleisleasedtoaconsumer,theleasingcompanymay

36 37

Ransom2008 Ransom2008

30

HybridCarsIQP

claimthecredit.38Therearemanyrulesandrequirementsthatmustbefollowedtomakean individualeligibleforthesetaxcredits,someofthesebeingthatthehybridmustbepurchased new,notused,thecarmustbeusedprimarilywithintheUnitedStates,thevehiclemustbe purchasedwithinacertaintimeperiod,andthedatethatthevehicleisboughtissomewhata determiningfactorintheamountoftaxcredittheindividualwillreceive.Evenwiththe restrictionoftheseregulations,therearemanyvehiclesthatareeligibletoreceivethese federaltaxcredits,seeFigure7:FederalTaxCreditsforHybrids.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 HybridFederalTaxCredit 2009CadillacEscaladeHybrid4drSUV(6.0L8cylgas/electrichybrid4A) 2009CadillacEscaladeHybrid4drSUV4WD(6.0L8cylgas/electrichybrid4A) 2008ChevroletMalibuHybrid4drSedan(2.4L4cylgas/electrichybrid4A) 2009ChevroletMalibuHybrid4drSedan(2.4L4cylgas/electrichybrid4A) 2009ChevroletSilverado1500Hybrid4drCrewCabw/1HYSB(6.0L8cylgas/electric hybrid4A) 2009ChevroletSilverado1500Hybrid4drCrewCab4WDw/1HYSB(6.0L8cylgas/electric hybrid4A) 2009ChevroletSilverado1500Hybrid4drCrewCabw/2HYSB(6.0L8cylgas/electric hybrid4A) 2009ChevroletSilverado1500Hybrid4drCrewCab4WDw/2HYSB(6.0L8cylgas/electric hybrid4A) 2008ChevroletTahoeHybrid4drSUV(6.0L8cylgas/electrichybrid4A) 2008ChevroletTahoeHybrid4drSUV4WD(6.0L8cylgas/electrichybrid4A) 2009ChevroletTahoeHybrid4drSUV(6.0L8cylgas/electrichybrid4A) 2009ChevroletTahoeHybrid4drSUV4WD(6.0L8cylgas/electrichybrid4A) 2009ChryslerAspenLimitedHEV4drSUV4WD(5.7L8cylgas/electrichybrid4A) 2009DodgeDurangoLimitedHEV4drSUV4WD(5.7L8cylgas/electrichybrid4A) 2008FordEscapeHybrid4drSUV(2.3L4cylgas/electrichybridCVT) 2008FordEscapeHybrid4drSUVAWD(2.3L4cylgas/electrichybridCVT) 2009FordEscapeHybrid4drSUV(2.5L4cylgas/electrichybridCVT) 2009FordEscapeHybrid4drSUVAWD(2.5L4cylgas/electrichybridCVT) 2009FordEscapeHybridLimited4drSUV(2.5L4cylgas/electrichybridCVT) 2009FordEscapeHybridLimited4drSUVAWD(2.5L4cylgas/electrichybridCVT) 2010FordFusionHybrid4drSedan(2.5L4cylgas/electrichybridCVT) 2009GMCSierra1500Hybrid4drCrewCabw/3HASB(6.0L8cylgas/electrichybrid4A) 2009GMCSierra1500Hybrid4drCrewCab4WDw/3HASB(6.0L8cylgas/electrichybrid 4A) 2009GMCSierra1500Hybrid4drCrewCabw/3HBSB(6.0L8cylgas/electrichybrid4A) 2009GMCSierra1500Hybrid4drCrewCab4WDw/3HBSB(6.0L8cylgas/electrichybrid 4A) $2,200 $1,800 $1,300 $1,550 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $1,500 $1,100 $1,500 $975 $1,500 $975 $1,700 $2,200 $2,200 $2,200 $2,200

38

Hudson2010

31

HybridCarsIQP 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 2008GMCYukonHybrid4drSUV(6.0L8cylgas/electrichybrid4A) 2008GMCYukonHybrid4drSUV4WD(6.0L8cylgas/electrichybrid4A) 2009GMCYukonHybrid4drSUV(6.0L8cylgas/electrichybrid4A) 2009GMCYukonHybrid4drSUV4WD(6.0L8cylgas/electrichybrid4A) 2008MazdaTributeHybridGrandTouring4drSUV(2.3L4cylgas/electrichybridCVT) 2008MazdaTributeHybridGrandTouring4drSUVAWD(2.3L4cylgas/electrichybrid CVT) 2008MazdaTributeHybridTouring4drSUV(2.3L4cylgas/electrichybridCVT) 2008MazdaTributeHybridTouring4drSUVAWD(2.3L4cylgas/electrichybridCVT) 2009MazdaTributeHybridGrandTouring4drSUV(2.5L4cylgas/electrichybridCVT) 2009MazdaTributeHybridGrandTouring4drSUVAWD(2.5L4cylgas/electrichybrid CVT) 2009MazdaTributeHybridTouring4drSUV(2.5L4cylgas/electrichybridCVT) 2009MazdaTributeHybridTouring4drSUVAWD(2.5L4cylgas/electrichybridCVT) 2008MercuryMarinerHybrid4drSUV(2.3L4cylgas/electrichybridCVT) 2008MercuryMarinerHybrid4drSUVAWD(2.3L4cylgas/electrichybridCVT) 2009MercuryMarinerHybrid4drSUV(2.5L4cylgas/electrichybridCVT) 2009MercuryMarinerHybrid4drSUVAWD(2.5L4cylgas/electrichybridCVT) 2010MercuryMilanHybrid4drSedan(2.5L4cylgas/electrichybridCVT) 2008NissanAltimaHybrid4drSedan(2.5L4cylgas/electrichybridCVT) 2009NissanAltimaHybrid4drSedan(2.5L4cylgas/electrichybridCVT) 2008SaturnAuraHybridGreenLine4drSedan(2.4L4cylgas/electrichybrid4A) 2009SaturnAuraHybrid4drSedan(2.4L4cylgas/electrichybrid4A) 2008SaturnVUEHybridGreenLine4drSUV(2.4L4cylgas/electrichybrid4A) 2009SaturnVUEHybrid4drSUV(2.4L4cylgas/electrichybrid4A) $2,200 $2,200 $2,200 $2,200 $3,000 $1,950 $3,000 $1,950 $3,000 $1,950 $3,000 $1,950 $1,500 $1,100 $1,500 $975 $1,700 $2,350 $2,350 $1,300 $1,550 $1,550 $1,550

Figure7:FederalTaxCreditsforHybrids39

Whenpurchasinganewvehicle,financesaregreatlyimportant,ifnotthemost importantaspectwhenthecustomerismakingtheirdecision.Peoplegenerallylookfor numerouswaysinwhichtheycanreducetheamountofmoneythattheyarespending.The governmenthascapitalizedonthisandbeganofferingincentivesforindividuals,influencing themintospendingmoremoneyinitiallytopurchaseahybridvehicleinordertosavemoney later.Throughonlinesources,articles,anddealerships,thevarietyofincentivesandprograms canbeanalyzed.Throughinterviewswithbothsalesrepresentativesandcustomers,the effectivenessofthesegovernmentincentivescanbedetermined.Talkingtoindividualswho havealreadytakenadvantageofthesemotivationsdeterminesifitwasworthitforthemto spendtheextramoneyinitially.Speakingwithcustomersthathaventyetmadeacommitment helpstodetermineiftheincentivesaresuccessfullyinfluencingpeopleintomakingthedecision

39

Hudson2009

32

HybridCarsIQP

tobuyahybridvehicleinsteadofaconventionalcar.Theinterviewswithsalerepresentatives shouldgiveinsightfulopinionsonwhetherornottheprogramsarebeneficialordeceivingfor individuals. Whenhybridvehicleswerefirstintroducedonthemarket,manyassociatedthemwith theToyotaPrius.SomeindividualswereattractedtothedistinctstyleofthePriusasthey considereditastatementtosocietythattheywereconcernedaboutthewellbeingofthe environmentandtheconditionoftheworldinwhichwelive.SincethePrius,much advancementhavebeenmadeandHybridvehiclesarenowavailableinnumerousdifferent modelstoappealtoawidevarietystylesandpreferencesofthetargetmarket,One importantdecisionisthesizeofthevehicle."Ifyoureally,reallyneedanSUVsizedvehicle, thereareanumberofhybridSUVsthatareonthemarketnoworcomingontothemarket soon,notesBerman.40InsteadofthePriusthatdoesntappealtomost,therearenowmore conventionallookingvehiclesavailableashybridmodels,providingpeopleoptionsand alternativestochooseacarthatisbestsuitedforthemandtheirlifestyle. Somemaybelievethatthenewhybridvehiclesarenotaspowerfulastheir counterparts,theirenginesbeingsignificantlysmallerthantheenginesofconventional vehicles.Whenthehybridwasfirstintroducedthereweresomereportsofthesenewcars beingsomewhatsluggish,however,overtimeasimprovementshavebeenmade,thereare reportsnowthatsomehybridsarequickerthanconventionalcars,Theengineinthehybridcar ispowerfulenoughtomovethecaralongonthefreeway,butwhenitneedstogetthecar movinginahurry,orgoupasteephill,itneedshelp.That"help"comesfromtheelectric motorandbatterythissystemstepsintoprovidethenecessaryextrapower.41Witha smallerlighterengine,fewercylinders,andlighterpistonsandinternalcomponents,thismakes hybridcarsmorefuelefficient.Alsohelpingbridgethepowergapbetweenhybridcarsand conventionalcarsarethematerialsthatthevehiclesareconstructedoutof,somehybridcars areconstructedwithultralightweightmaterialslikecarbonfiberoraluminum.Hybridcarsare alsodesignedtobemoreaerodynamicthanmostcars,allowingthemto"slice"throughair insteadofpushingitoutoftheway.Allthesefactorscombinedequatetoasuperefficientform

40 41

Ransom2009 Laytonetal.2008

33

HybridCarsIQP

ofcarthatgetsexcellentfueleconomyandhelpstheenvironmentbycuttingdownon pollution.42 2.5Widespreadchangetohybrid/electricinsteadofgasoline/diesel Theadoptionofhybridtechnologycontinuestorise,butthepaceisstilltoominimalfor anychangesinenvironmentalissuesorfueldemandtobeseen.Themarketforhybridsisstill lackinginthenumberofvehiclesandmodelsavailable.Manufacturersarestilldevelopingand improvingonthehybridtechnologythatisstillfairlyrecent.Ittakesapproximatelyfifteen yearsfortheautomotivefleettoturnoverintheUS.43Thisextendedperiodoftimemakesfor agradualchangebeforeasubstantialamountofvehiclesontheroadsarehybrids. Withsuchamassiveworldpopulationandhighdependencyontransportation,a significantswitchtohybridsfromgasolineanddieselvehiclesmustbemetbeforeanychanges canbeseen.Infact,weneed5080%ofthecarbuyersworldwideadoptthesenewlow carbontechnologyautomobilestomakeamaterialdifference.44Thatnumberfarexceeds whereweareattoday.Itwilltakemanymoreyearsforadifferencetobeseeninthelarge scale.Anothergoalofswitchingtohybridsistodecreaseforeigndependenceonoil.However therealityisthedevelopmentandwidespreaduseoffullhybridvehiclesby2030willonly reduceworlddemandfortransportfuelby10%.45Awidespreadchangetohybridsrequiresan extendedperiodoftimeandalsomaynotbecosteffective.Manyoftheoutcomesarenot worthallthatgoesintogettingtheadvancedtechnologyontheroad.

2.6Conclusion
Throughourresearchonhybridcartechnology,weexploredmanyinterestingtopics. Fromstudyinginformationaboutenvironmentaleffects,emissions,productionandmarketing ofhybridswewereabletounderstandalotoftheprosandconsassociatedwiththem,butit raisedsomequestionsaswell,suchashowhybridsemissionscomparetostandardcombustion vehicleemissions,andatwhatpointwouldthehybridvehiclesbeworththeextramoney,with andwithouttheincentivesthatcomewithpurchasingone.Wealsoinvestigatedthetopicof

42 43

Laytonetal.2008 Khosla2009 44 Khosla2009 45 Pickett2008

34

HybridCarsIQP

widespreadchangetodifferenttypesofhybridvehiclesandhowfeasiblethisplanwouldbe. Ourresearchhasledustolookatthepast,present,andfutureofcarsontheroads,especially hybrids.Duetothelargevarietyandamountofquestionsthatwecouldaskonthistopicwe havehadtocutdownourscopeabit.Wehaveselectedafewmainquestionsthatwewould liketoanswerbytheclosingofthispaper.AtwhatpointdoesaHybridmakeupforitscost? Whatarepeoplelookingforwhentheyarebuyingacar?Whatkindsofincentivesarepeople offeredwhenbuyinghybrids?Whatarethedifferencesinemissionvariationsbetween standardandhybridcars?Whenaretheyrecycled?Whatarethedifferencesinmaterialsused? Iswidespreadconversionfeasible?

35

HybridCarsIQP

Chapter3.

Methodology

Theobjectivesofourpaperweretoanalyzetheprocessofmakinghybridcarstoseeif theirproductionisascleanastheirdailyuse,examinethevariouseconomiceffectsandroutes forconvertingcombustionenginevehicleswithalternativedesignstoseeifwidespreadchange isfeasible,andanalyzemarketingtrendsandchangesassociatedwithhybridtechnology.We usedmanydifferentmethodstogainaccesstotheinformationweneedtofullystudythese topics.Secondarydata,interviews,focusgroupsandmanyarticlesandonlinesourceshelped usmakeeducatedconclusionstoourprojectquestions.

3.1QuantitativeDataAnalysis
Hybridvehiclesareverycomplexmachinesthatrequiremorematerialsandworkto construct,comparedtothestandardcombustionenginevehicle,duetothefactthattheyhave atleasttwosourcesofpower.Thisbeingthecase,onecouldthinkthatitisonlynaturalthat theconstructionofhybridscreatesmoreharmfulgassesthancombustionenginevehicles, howeverbywhatmarginisseldombroughtupinmanyrelevantconversationsandstatistics. WeusedtheMITstudyOntheRoadin2020,whichincludesdataonthesetopics,tohelpus makesinformeddecisionsaboutthegreennessofhybrids.Usingthisdata,wecompared amountsofdifferentmaterialsusedincars,theenergyconsumptionandemissionlevelsused inprocessingthesematerials,andtheemissionlevelsofcars.Seriesofcalculationsweremade inMicrosoftExcelspreadsheetsinaprecisesequenceinordertoproduceaccurateanalysis. Thisproducedquantitativeresultsthatwereusedtogenerategraphsandcomprehensive displays,showingtimelinesonwhenhybridsbecomesgreenerthanaregularICEs.
3.1.1 EnergyConsumptionCalculations

Ourdataincludedwhatmaterialsgointocertaintypesofcars.Thedatagavethemass ofeachmaterialpercaraswellasthetotalweightofthecar.Ourdataalsoincludedhowmuch energy,inmegaJoules,ittakestoprocesseverykilogramoreachmaterial.Withthisdatawe foundouthowmuchenergyittakestoproduceeachtypeofcar. Thefirstsetofcalculationswastotakeeachmaterialandmultiplyitsmass/car(kg/car) byhowmuchenergyittakestoprocesseachkilogramofthatmaterial(MJ/kg).Thisgaveus

36

HybridCarsIQP

howmuchenergyisusedtoproduceenoughofeachmaterialforonecar.Next,weaddedup allofthematerialenergyusagestogetatotalamountofenergyusedtomakethecar.Inour data,weusetwosetsofenergyconsumptionvalues;oneforprocessingnewrawmaterialand oneforprocessingrecycledmaterials.Calculationsweredoneforallvehiclesinourstudyand bothsetsofprocessingdatawereused.Bydoingthesecalculationswewereabletocompare quantitativelyhowmuchenergy,forbothprimaryandsecondaryprocessing,goesintomaking eachtypeofvehicle.Anexampleofthecalculationspreadsheetusedforeachcarcanbeseen below.

Vehicle: Current,SIICE,Gasoline,Auto GivenData Vehicle Mass(kg) 886 81 35 10 9 7 10 100 54 64 5 0 9 54 1324 EnergyUse, Primary (MJ/kg) 40 220 30 280 100 50 40 90 70 110 CalculatedData EnergyUse, EnergyUse/ EnergyUse/ Secondary vehicle, vehicle, (MJ/kg) Primary(MJ) Secondary(MJ) 30 35440 26580 40 17820 3240 15 1050 525 27 2800 270 45 900 405 16 350 112 8 400 80 45 9000 4500 N/A 3780 #VALUE! 0 0 0 0 110 0 0 0 0 0 0 71540 35712

FerrousMetals Aluminum Glass Magnesium Copper Zinc Lead Plastics Rubber Wood,Felt,etc. Paint,Coatings Nickel Others Fluids Total

Figure8:CalculationSpreadsheetforEnergyConsumption

3.1.2 BreakevenCalculations

Intodayscarmarket,manycarshaveastandardICEmodelaswellasahybridmodel. Inourstudywecomparedmanyofthesevehicles.Breakevencalculationsletyouknowhow manymilesneedtobedriveninordertomakethepremiumpriceofahybridmodelbeneficial.

37

HybridCarsIQP

Forthesecalculationsweneededtoknow,forbothmodels,thepriceofthevehicle,itsgas mileage(bothcityandhighwayvalueswerepreferred),andthenthepriceofgas(whichcanbe arbitrarilypickedandchangedtomatchthecurrentpricing). Tofindthebreakevenpointwehadtosetupanequationthattookintoaccountallof ourdataatonce.Theequationcomparedgasmileageofthestandardmodeltothatofthe hybridmodelandcompensatedfortheincreasedprice.Theequationwasthensolvedforthe mileagevariablewhichwasthesameonbothsidesoftheequation.Thismileagewasthe minimummileageapersonwouldhavetodrive,inthelifeofthevehicle,tomakeitmonetarily worthpayingforthemoreexpensivehybrid.Thisequationwasusedwithdifferentvaluesof gasmileageaswellasthreedifferenttypesofdrivinghabits.Calculationsweredoneforthe followingstylesofdriving:Strictlyhighway,strictlycity,andaonetooneratioofbothhighway andcitydriving.Theequationusedcanbeseenbelow. (Mileage/MPGstandard)*(Gasprice)=(Mileage/MPGhybrid)*(Gasprice)+(PriceDifference)
EquationsolvedforMileagetogivethemileageoftheBreakevenPoint.

Figure9:BreakevenPointEquation

3.2ConsumerAttitudesandSelling
Oneareaofconcerninourhybridresearchinvolvesthesalescharacteristics.We specificallywantedtoexaminewhatpointsarestressedwhenmarketinghybrids.Salespersons musthavesometoolsandguidelinesthattheyuseinordertoattemptthesalesofvehicles. Themarketingcampaignsmaybediversefordifferentmanufacturersandsalesdivisionsand thatissomethingwehaveconsidered.Mostofthedatausedstemsfrominterviews.These interviewsweredonewithsalespeopleatcardealerships,aswellasonesconductedwithinour focusgroups.Aguidelineofquestionswaspreparedinordertomakeeachinterview successful,providinguswithsubstantialandusefuldata.Throughexaminingthearrayofdata received,anycommonalitiesinthewaysinwhichsalespeopleanddealershipsmarkettheir hybridsweredetermined. Everyindividualbuysacarforareason.Thereareavastamountofdifferentstyles availableandpeoplebuywhatisappealingtothem.Whatpeoplelookforwhentheyare
38

HybridCarsIQP

buyingacarisasignificantphaseintheiroveralldecisionmakingprocess.Whetheritisa hybridoraconventionalinternalcombustionengine,theremustbeareasonforthepurchase. Datafoundusingourfocusgroupsthatconsistofpeoplewhohaveboughtahybridandthose whohaverecentlyboughtaninternalcombustionvehiclewascrucialtounderstandingwhat differentindividualsconsiderthroughouttheirsearch.Onceagain,ourquestionswere preparedaheadoftime,ensuringourdatastaysconsistentwithregardstothequestionsasked. Usingthedata,weobservedwhetherornotthosewhobuyhybridshavesimilarreasonsand whetherornotthosewhobuyinternalcombustionshaveacommontheme. Ithasbeenstatedearlierthatconvertingtheworldspopulationofcombustionengine vehiclestohybridvehiclesistheoreticallyillogicalifnotimpossibleduetothelackofresources andtimeconstraints.However,thisdoesnotmeanthattherearenotareasorgroupsofpeople thatcannotmakeasignificantimpactontheenvironmentbyswitchingtohybrids.Bystudying variouspublictransportationstatistics,suchasthedrivingpatternsofdifferenthouseholds, professions,locations,andenvironmentsfromvarioussources,wedeterminedwherehybrid carscouldpresentthegreatestefficientenvironmentalimpacts.VehiclessuchasTaxisand publicbusseswouldbeprimeexamplesofhighimpactvehiclesduetotheirhighmileage.This way,peoplewhoareswitchingtohybridscantellhowmuchtheyarereducingtheirimpacton theenvironmentcomparedtootherswhoarelivingindifferentconditions.Thiswouldalsobe anefficientwaytodeterminewheretheoptimalenvironmentalareastosellhybridsare,as wellasthegeneralnumberthatwouldbeappropriatetosellthere.
3.2.1InterviewwithaCarSalesperson

Valuablemarketinginformationwasgainedthroughpersonalinterviewswithcar salespeopleandsalerepresentatives.Withnumerousnewmodelsofhybridandnonhybrid vehiclesavailable,therearemanynewtacticsforsellingcars.Cardealersareexpertsin understandingtrendsincarsales,whethertheyarehybridorconventionalvehicles,changes andfluctuationsinsalesrates,whichvehiclessuitparticularlifestylesbetterthanothers, amongstmanyotherimportantdecisionvariables.Theknowledgeandinformationgathered fromtheseretailerswasessentialinaccuratelyunderstandingthepurchasinghabitsand

39

HybridCarsIQP

desiresofcustomers.WeinterviewedEdProko,coownerofMillStreetMotorsandlocalused cardealer,usingasemistructuredinterviewprotocol. InterviewQuestions: DoyoudefaulttotryingtosellICEsuntilsomeoneasksabouthybridtechnology? Arethesalesratesofhybridschangingasmoreandmoremodelsofhybridsarebeing produced? WhataretheratiosofhybridssoldtoICEssoldinthepastcoupleofyears?Aretheyearly ratioschanging? Arepeoplestartingtotradeinhybrids? DoyouhavedifferentmarketingstrategiesforsellinghybridsversusICEs? Whatmodelsofcarsarecurrentlysellingthemost? Whatdepreciationrateshaveyounoticedondifferentvehicles,whetherhybridorICE? Howdoyouanticipatewhattypeofvehiclestostockyourcarlotwith?

3.3FocusGroups
Thereasonswhypeopledoanddontpurchasehybridvehiclesareasdiverseasthe numberofcarsontheroad.Forourresearch,itwasimperativethatwesortedoutwhatthe mostprominentofthesereasonsweresothatwegainedabetterunderstandingofthe marketingofhybrids.Inordertobeginobtainingthenecessaryinformationweorganizedtwo eightpersonfocusgroups.Onegroupconsistedofindividualswhopurchasedahybridvehicle withinthelast12months,andtheotherconsistedofthosewhopurchasedanonhybridinthe sametimeperiod.Tomakesurethatthingsprogressedassmoothlyaspossible,ourIQPgroup workedinconjunctionwithanothergroupwhowasalsofocusingonhybridvehicles. Inordertogatherparticipantsforourfocusgroups,wesentoutanemailtothefaculty andstudentsofWPI,lookingforthosewhofitthecriteriaofourdesiredcategorieswithan incentivetodojoinbeinga$25AmericanExpressgiftcard.Thosewhowereinterestedinour groupswererequiredtosendusareplyemailwithsomebasicinformationaboutthemselves includingthebrandofcartheypurchased,whentheyboughtit,theirname,age,andcontact information.Aftergoingthroughallthereplies,weselectedpeoplethatwebelievedwouldbe themostbeneficialtoourstudy.49

40

HybridCarsIQP

Themeetingslastedroughlyoneandahalfhours,eachonemanagedandsupervisedby membersfromeachIQPgroup.Uponfirstarrivalatthemeeting,wegreetedthevisitorsand explainedtothemthepurposeofthemeetings.Eachgroupwasaskedasetofquestions regardingtheirchoiceofpurchase,whattheirinitialchoiceofvehiclewasatthetime,what theirdrivinghabitsarelike,andwhattheywerelookingforwhentheystartedcarshopping. Thehybridownerswouldbeaskedabouttheircars,theimpactsithasorhasnotmadeintheir drivinglifestyles,andwhattheythinkaresomeofthedifferencesbetweenhybridsand combustionengines.Thenonhybridownersontheotherhandwouldbeaskedasimilarsetof questiongearedtowardswhytheychoseanICEcaroverahybrid.

3.3.1Peoplewhoboughtahybridinthepastyear.

1. Howmuch,onaveragedoyoudriveayear?Whatisyourdailycommutelike? City/Highway/Offroad. 2. Howmuchdoyouspendongasperweek/month/year? 3. Howmuchdidthecarcost?Howmuchwasthelastcarpurchased? 4. Howlongdoyoukeepyourcar?Howdidyougoaboutgettingridofit? a. Junk,Sold,TradeIn. 5. Whatfactorsgointomakingadecisiontobuyacar,hybridornot? a. Howdidtheinteriorsize/comfortfactoraffectyourdecision? b. Howdoesoutputperformance(acceleration)affectyourdecision? c. Howdoesyourlifestyle/geographiclocationaffectyourdecision? i. Forinstance,doyouneedatruckfortowingpurposes,4WDforwinter reasons? 6. Wasthereanythingabouthybridsthatmayhavehadacriticalinfluenceonyou decisionmaking? 7. HowdoestheeconomicallyunstablefoundationoftheGMCompanyaffectyour decisionmaking?
3.3.2Peoplewhoboughtanewcar(nonhybrid)inthepastyear.

8. Howmuch,onaveragedoyoudriveayear?Whatisyourdailycommutelike? City/Highway/Offroad. 9. Howmuchdoyouspendongasperweek/month/year? 10. Whattypeofcardidyoubuy?Ifthereisacomparablehybridonthemarket,didyou considerpurchasingit?

41

HybridCarsIQP

11. Howmuchdidthecarcost?Howmuchwasthelastcarpurchased?Whendidyou purchaseitanddidyoueverconsiderbuyingahybridthen? 12. Howlongdoyoukeepyourcar?Howdidyougoaboutgettingridofit? b. Junk,Sold,TradeIn. 13. Whatfactorsgointomakingadecisiontobuyacar,hybridornot? d. Howdidtheinteriorsize/comfortfactoraffectyourdecision? e. Howdoesoutputperformance(acceleration)affectyourdecision? f. Howdoesyourlifestyle/geographiclocationaffectyourdecision? ii. Forinstance,doyouneedatruckfortowingpurposes,4WDforwinter reasons? 14. Wasthereanythingabouthybridsthatmayhavehadacriticalinfluenceonyou decisionmaking? 15. Howdoesthereputationofthecarcompanyaffectyourdecision?

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HybridCarsIQP

Chapter4.

Findings

Weusedmanydifferentmethodstogainaccesstotheinformationwerequiredtofully studyandanswerthequestionsthatwechose.Secondarydata,interviews,focusgroupsand manyarticlesandonlinesourceshelpedusmakeeducatedconclusionstoourproject questions.Asweprogressedthroughourresearch,ouranswersbecamemoreapparent,clear andcertainuntilwewereconfidentwiththeresultsthatwehadobtained.

4.1EmissionsandEfficiency
Afterlookingatmanydifferenttypesofcars,theircomponents,andhowtheyaremade wesawthateverycarisnotequal.Theyallvaryinhowmuchenergygoesintomakingthem, howmuchpollutantsareproducedwhilemakingthemandhowefficienttheyactuallyare whendriving.
4.1.1EnergyConsumptionforManufacturingVehicles

Afterallthecalculationsforenergyconsumptionhadbeenmade,thevalueswere graphedasameansofcomparison,seeFigure10.Thegraphshowsthat,forprimarymaterial use,allofthehybridcarsstudiedconsumedmoreenergyintheirmanufacturingprocesses.In somecasethehybridsconsumed40%moreenergythanthebaselineICE.Thisisbecauseof thehighamountsofenergyneededtoprocesslargeramountsofmaterialssuchasaluminum, copperandthingsthatwouldfallintotheOthercategory.Itakesfiveandahalftimesthe energytoprocessaluminumcomparedtosteel.ThesteeltoaluminumratioforanICEis almost11:1,whilesomehybridshavea1:1ratio,leadingtoveryhighenergyconsumption. Higheramountsofmagnesiumandnickelinhybridsalsoaddtotheincreasedlevelsofenergy needed.

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HybridCarsIQP

EnergyConsumptionforManufacturingVehicles
EnergyConsumption(MJ/car)
140000 120000 100000 80000 60000 40000 20000 0

UseofPrimary MaterialOnly UseofSecondary MaterialOnly

TypeofCar

Figure10:EnergyConsumptionforManufacturingVehicles

Thegraphshowsthattheuseofrecycledmaterialsisamuchmorefeasiblewaytomake hybridsefficiently.Ifpossible,using100%recycledmaterialswouldleadtoallofthecars studiedbeingclosetoequalinenergyconsumption.Thisismainlyduetothefactthatallofthe mainenergyconsumingprocesseswhichcausedhybridtousesomuchenergyaremuchmore efficientwhenusingsecondarymaterial.Forexample,secondaryprocessingofmagnesiumonly consumes10%oftheenergyneededforprimaryprocessing.

4.1.2CO2EmissionsResultingManufacturingVehicles

TheamountofCO2emissionsassociatedwithvehiclemanufacturingisdirectlyrelated tohowmuchenergyisconsumedduringtheirproduction.Manyoftheprimarywaysof producingenergyemitlargeamountsofCO2intotheatmosphere.Again,theuseofsecondary materialsprovestobemuchbetterfortheenvironmentwhencomparedtousingfreshraw material.Figure11,below,showstheCO2emissionsrelatedtomanufacturingvehicles.Note thesimilaritiestoFigure10intheprevioussection.

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HybridCarsIQP

CO2 EmissionsResultingfromtheProductionof AutomobileComponents 2500

CO2Emission(KgC)/Car
2000

1500

1000

500

UseofPrimary MaterialOnly Useof Secondary MaterialOnly

TypeofCar
Figure11:CO2EmissionsResultingManufacturingVehicles

4.4.3BreakEvenPoints

Thebreakevenpointcalculationsforthreeoftodayspopularcarstoldusalotabout boththeirefficiencyandtheirconsumervalue.Thedatashowsthatthebestperformingcar was2010FordFusionHybrid,however,wearenotcomparingthiscartoothers,buttoanon hybridmodelofitself,seeFigure12below.

45

HybridCarsIQP

2010FordFusion: MileagetoBreakEven
2,000,000 1,800,000

Mileage(miles)

1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 AllCity AllHighway City/Highway Combo $2.60/Gal $2.70/Gal $2.80/Gal

TypeofDriving

Figure12:BreakevenPointforthe2010FordFusion

Withthecurrentgaspricehoveringaround$2.80pergallon,aconsumerwouldhaveto driveFusionHybridover150,000miles,onlyinthecity,beforetheystartedsavinggasmoney. Conversely,ifalloftheirdrivingwasdoneonthehighway,theywouldhavetodrivenearlytwo millionmilesbeforesavinganymoney.Ifwecompromiseandsplitthedrivingevenlybetween thehighwayandthecity,theconsumerwillhavetodriveover300,000milesuntiltheextra investmentwasworthit. Differenttypesofcarsaregoingtoperformdifferently,whichiswhyamidsized car/smallSUVwasanalyzed.The2010FordEscapeHybridwillhavetobedrivenover200,000 milesthroughcitiesbeforeitwillputtheconsumerontheplussideoftheinvestment. Highwaydrivingwillneedclosetoonemillionmilesandtheaveragecombinationofcityand highwaywillstillbeastaggering350,000milesbeforethecarstartstopayforitself.SeeFigure 13belowforthefullgraph.
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HybridCarsIQP

2010FordEscape: MileagetoBreakEven
1,000,000 900,000

Mileage(miles)

800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 AllCity AllHighway City/HighwayCombo $2.60/Gal $2.70/Gal $2.80/Gal

TypeofDriving

Figure13:BreakevenPointforthe2010FordEscape

Thedataforthefinalcarwasveryinteresting,ahybridcarthatwillnevermakethe consumersmoneyworthit.Thedataforthe2010ToyotaHighlander,seeFigure14,showed thatiftheconsumerhasanallhighwaycommutethehybridmodelwillneverpayoff.Thisis becausethehighwayfuelefficiencyisworseinthehybridthanintheICEmodel.Allcitydriving willprovideforabreakevenpointofapproximately250,000milesandamixedcommutewill leadtoalmost800,000milesbeforebreakingeven.

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HybridCarsIQP

2010ToyotaHighlander: MileagetoBreakEven
900,000 800,000

AllHighwayDrivingwillnever resultinabreakevenpoint.

Mileage(miles)

700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 AllCity

$2.60/Gal $2.70/Gal $2.80/Gal

AllHighway

City/HighwayCombo

TypeofDriving

Figure14:BreakevenPointfortheToyotaHighlander

4.2PublicsViewonPurchasingVehicles
Whatspecificallypeoplearelookingforwhentheyaresearchingforavehiclethatbest suitsthemwasanimportantquestionbroughtupthroughoutthisentireproject.Wethought aboutlifestylesofindividuals,forexamplefamilies,couples,singleindividuals,weconsidered thosethatviewedcarsasstatussymbols,whereapersonlivesdemographically,howmuchthe persontravelsonaverage,amongmanyotherthings.Throughinterviewsandfurther questions,wefoundthatthereareavarietyofdifferentcriteriathatpeoplelooktofulfill,many ofwhichwerethingsthatwehadpreviouslyaddressed. Familiestendtolookforvehiclesthathavealotofextraspaceandthatarehighamong currentsafetyratings.Somepeoplethatareinterestedintravelinglookforvehicleswithspace andtowingabilities.DuetoNewEnglandweatherconditions,manyofthevolunteerswerein searchofavehicleequippedwithfourwheeldrive.Someindividualsarepassionateabout

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HybridCarsIQP

theircarsandparticularaboutperformanceandexoticappeal,whileothersarejustinsearchof somethingtosuccessfullytakethemfromonelocationtothenext. WeneededanSUVbecauseoftheterrainandhillsthatwehavetocommute. (Participant#5,Question10) Thenumberoneforusissafetysizeandabilitytotransportstrollersandpackandplaysand theamountofstuffthattwochildrenunderfourrequire.Weneededtrunkspace.Soforthis onewithtwocarseatsandIhaveparentsthatarelocalsoweareoftentravelingwiththem. Thatiswhyfindingathirdrowwasalsowewouldnthaveboughtanewcarwithoutathird row.Sowewantedtobeabletohavethecarseatsandotherpeoplecomeinthecar,haveme getinthebackseatwiththekidssoitwasallaboutfunctionalitywithbeingaparentwith childrensosafety,functionality,andthenfromthereprobablywentprice,tostyle (Participant#2,Question13) Whenitcamedowntomypurchase,itwasbetweenthreecarsandIamvery,veryparticular aboutwhatIget.YouknowImanengineer,anautomotiveengineer,andIgottahavetheright stuffAndsoIthinkthattheperformanceandexoticnatureofacarreallyappealtomeand butoneofthetripsformywifewasthatwewantedsomethingthatwouldbecomfortablefor peopletotravel(Participant#1,Question13). Anotherimportantquestionthatwasraisedthroughoutthisstudywaswhypeople wouldchosetopurchaseaconventionalvehicleratherthanahybridvehicle.Wewantedto knowwhatwoulddeterthemfrombuyingavehicle,whosehypewasadvertisedtohavesuch animmenselypositiveimpactontheenvironmentandalsotobesooutstandingongas mileage.Wethoughtthatpricewasamajorcontributorinthisdecision. Wefoundthatthemajorcontributortotheparticipantsdecisionstonotpurchasea hybridvehiclewasthepriceofthevehicleandthethoughtsthattheywouldnevermakeback thedifferenceinprice.Somepeopleneededacarthatwasnotahybridforlifestylereasons. Andothershadstrongfeelsagainsthybrids,notbelievingalloftherecentpublicityabouttheir benefittotheenvironment.

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HybridCarsIQP

Iwouldhavelovedtogetahybridbutyoucantgetahybridthatwilltowatrailer(Participant #6) hybridsarejustastopgapsoImnottooexcitedaboutthemunlesstheyhappentoperform wellandhappentogivethetaxincentivestomakethempayoffbeforeyouendupthrowingit away (Participant#1,Question14) yourealizeliketheyneverreallypayoffinthelongrun(Participant#2,Question14) itwasjusttoopricedoutforusandaswetalkedaboutit,itwouldhavetakenustoolongto makethatdifferenceback(Participant#3,Question14) Prettymuchpricerange.Wewouldhavebeenpreparedtobuythehybridhighlanderbut justweknewwewantedthehighlanderwecouldntaffordthehybrid(Participant#5, Question14) IlookedattheHighlanderHybridbutitwasabout$10,000moreandIlookedatwhatitwould taketopaythatback,thereturnontheinvestment,anditwouldntwork,Iwouldgetridofthe carbeforeitpaidoff.(Participant#5,Question10) Forindividualsthatpurchasedhybridvehicles,wewereveryinterestedtoknowtheir

reasoningbehindtheirpurchase.Wethoughtthatmanyoftheindividualspurchasedthe vehicleasastatementinsupportoftheworldgoinggreen.Wealsosuggestedthatthe bettergasmileagewasamajorcontributor,especiallywiththedrasticincreaseingasprices. Throughtheinterviewsinthefocusgroups,wefoundavarietyofdifferentreasonsfor

individualspurchasingtheirhybridvehicles.Weweresurprisedtofindsuchlittletalkaboutthe gasmileagethatthesecarsreceive,andmorediscussionabouttheactualphysicalappearance ofthevehiclesandtheirstatuswithinoursociety.Thecarswereattractivetotheseindividuals, butwerealsoseenasamessagetothosesurroundingthemthattheyaremakinganeffortto helptheenvironment.

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HybridCarsIQP

IwentdowntoameetingwithToyotawiththeMechanicalandElectricalengineering

professionalsocieties,andalltheyhadwasarighthanddriveToyotaPrius,andIsawthedesign ofthisearliestPrius,theywerealreadysellingtheminJapan,andIcameawaysayingmyGod thatthingissobeautiful...(Participant#7,Question1) So,theyhadadesignthatlookedbeautiful,almostasifIwasahumanlookingatapainting. FormeIwaslookingatapieceoftechnicalbeauty.Mywifeisnotanengineer,butweboth agreedthatthatcarwasanamazingcarthetechnologyofthePriusseemedtobethemost advanced,andthatswhereIfeltthatsplurgingandpayingtheextraexpensewasworthit. (Participant#8,Question1) IwaslookingforacarbecauseIhavean1.5hrcommutefromwesternMassachusetts,andI neededacarthatgotbettergasmileagethanmyoldVolvo.(Participant#9,Question1) itwascommutingandIthinkitsusefultotalkaboutthesymbolicreasonsthatpeoplebuy PriusoverotherhybridsouttherebecausepeopleseethecarandknowitsaPriusandknow whatitstandsforthePriusissymbolicallysexyintheacademicworld.(Participant#11, Question1) Ithinkthereisabragfactorthatyouwantthatimageofdrivingahybridtoattachtoyou.That itsgoodfortheenvironment,butyoudofeelgoodaboutdrivingitandadvertisingthattoo. (Participant#12,Question1) Manyrespondentsofthehybridfocusgroupsaidtheredrivinghabitshadbeen influencedandalteredoncetheyswitchedovertohybridsfromconventionalvehicles.Those thatpurchasedtheToyotaPriusespeciallynoticedthisfact.TheNewEnglandwinterweather wasamainreasonrespondentsfeltthisway.SomewereusedtodrivingSUVs,whichare clearlybetterfordrivinginthewinterthanthePrius.Ontheotherside,thePriusisafront wheeldrivecar,whichisbetterthanrearwheeldriveinsnowyconditions.Anotherfactorthat resultedinmodifieddrivinghabitswasthedecreaseinpowerofthehybrids.Some respondentshadbeenusedtoasportscarfeel.Oncedrivingahybrid,morespecificallyaPrius, theywerenotabletoaccelerateasquicklyorbuzzuphillslikeaconventionalsportscarisable todo.Somedealtwiththeseissuesbyhavingasecondvehicle,conventional,thattheycould
51

HybridCarsIQP

usewhennecessary.Othersreactedbysimplyavoidingdrivingintheseconditions.Thesewere alldecisionsthatrespondentsofthefocusgrouphadtoconfrontwhenchoosingwhetheror nottopurchaseahybrid. Manyrespondentsofthehybridfocusgroupsaidtheredrivinghabitshadbeen influencedandalteredoncetheyswitchedovertohybridsfromconventionalvehicles.Those thatpurchasedtheToyotaPriusespeciallynoticedthisfact.TheNewEnglandwinterweather wasamainreasonrespondentsfeltthisway.SomewereusedtodrivingSUVs,whichare clearlybetterfordrivinginthewinterthanthePrius.Ontheotherside,thePriusisafront wheeldrivecar,whichisbetterthanrearwheeldriveinsnowyconditions.Anotherfactorthat resultedinmodifieddrivinghabitswasthedecreaseinpowerofthehybrids.Some respondentshadbeenusedtoasportscarfeel.Oncedrivingahybrid,morespecificallyaPrius, theywerenotabletoaccelerateasquicklyorbuzzuphillslikeaconventionalsportscarisable todo.Somedealtwiththeseissuesbyhavingasecondvehicle,conventional,thattheycould usewhennecessary.Othersreactedbysimplyavoidingdrivingintheseconditions.Thesewere allrealitiesthatrespondentsofthefocusgrouphadtocopewithafterchoosingpurchasea hybrid.

4.3SalesApproach:
DuringaninterviewconductedwithEdProko,coownerofMillStreetMotors,the questionsinvolvingwhattypesofvehiclessellthemostandwhatdoesthegeneralpublicwant foravehiclewereissued.Theintervieweehadmuchfirsthandknowledgeonthesubject. However,thisknowledgewaslimitedbecauseEdProkoisausedcardealer.Heonlyknew whichusedcarswerebeingsoldandpurchased.Hewasunabletodiscussthebuyerandseller perspectivesofbrandnewvehicles.Itwasverifiedthathybridsarenotoneofthevehiclesthat mostpeopleseek.Throughouttheinterview,itwastoldthatMillStreetMotorshadonlysold onehybrid,intherecentyear.Theownersdonotkeephybridsintheirinventorybecauseitisa wasteofmoneyforthem.Ifacustomerdesiresahybrid,oneoftheownerswillfindonefor theircustomer.Thisishowtheydealwithmanyothersmall,fuelefficientvehicles.According toMillStreetMotors,thecurrentvehiclemarketissubstantiallyfortrucksandSUVs.Whether itisbecauseofkidsandlargefamiliesorforthesenseofgreatersafety,thegeneralpublicstill
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HybridCarsIQP

feelstheneedtohavelargervehicles.Theonlyperiodoftimewhensmaller,efficientcarswere rulingtheindustrywasduringtheextremelyhighgasprices.Oncepricesfellbackdown, peoplestartedtopurchaselessefficientvehiclesonceagain.Fromthisinterview,itwas verifiedthathybridsstillhavenotbeenwidelyacceptedandtheydonotfittheneedsofthe lifestylesofmostpeople.

4.4Incentives
Duringtheinterviewsandfocusgroupsconducted,multipleexamplesandexperiences, aswellasvariousperspectivesonincentiveswererecorded.Firstandforemostonthelistwere thetaxincentivesthatthegovernmentgivestohybridowners,whichwasviewedbysomeina poorlightduetothebeliefthattheincentivesareanattempttocoverupsomeofthenegative andnotwellknownfactsaboutthem.Therewereseveralarticlesontheinternetthatlisted anddiscussedmanypotentialincentivesinsignificantdetail.ThislistincludedtheEnergyPolicy Actof2005,whichreplacedthecleanfuelburningdeductionwithataxcredit.Ataxcreditis subtracteddirectlyfromthetotalamountoffederaltaxowed,thusreducingoreven eliminatingthetaxpayerstaxobligation.Thetaxcreditforhybridvehiclesappliestovehicles purchasedorplacedinserviceonorafterJanuary1,2006.Therearemanyrulesand requirementsthatmustbemetinordertobeeligibleforthesetaxcredits.Someofthesebeing thatthehybridmustbepurchasednew,notused,thecarmustbeusedprimarilywithinthe UnitedStates,thevehiclemustbepurchasedwithinacertaintimeperiod,andthedatethat thevehicleisboughtissomewhatadeterminingfactorintheamountoftaxcreditthe individualwillreceive.Evenwiththerestrictionoftheseregulations,therearemanyvehicles thatareeligibletoreceivethesefederaltaxcredits.Bylookingatthestatisticsandthe numbers,wedeterminedthatthetaxreliefsweresavingthehybridcarownersmoremoney thantheamounttheywereaccumulatingfromnotpayingfortheextragas. Inthenonhybridfocusgroup,pricingwasamajorcontributorinthevolunteers decisionsforpurchasingavehicle.Eachofthecontestantsstatedthatthepricewaseithertoo high,thebreakevenpointwastoohigh,orthetaxincentiveswerenotalwaysworththeextra investment.Inoneinstanceitwasactuallythedecidingfactoragainstthehybridvehicle.In

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thehybridgroup,themajorcontributorwastheexceptionalgasmileagethatmostofthe hybridcarsweregettingandtheirreputationofbeinghelpfultotheenvironment. Ihaveaproblemtheoreticallywithhybridsandthattheresearchshowsofcourseits justastopgapmeasure.Therealreasonforbuyingthemwouldbethetaxincentivesandafew thingslikethisbecausewhenitgetsrightdowntoitthetechnologyisnotthewayweshouldbe encouragingpeoplerightnowactually.Ontheotherhandthetaxadvantagesmakeit significantandsoIwouldmuchratherbuysomethingwhichisalongertermlookatfuel economycertainlytherearealotbetteroptionsthanhybrids(NonHybridfocusgroup, Participant#1).

4.5FeasibilityofMassConversion
Duringourresearchtodeterminethepossibilityofagreatglobalchangefrom combustiontohybrid,wesawtheretheadoptionofhybridtechnologycontinuestorise,but thepaceisstilltoominimalforanychangesinenvironmentalissuesorfueldemandtobeseen. Themarketforhybridsisstilllackinginthenumberofvehiclesandmodelsavailable.Italso takesagreatamountoftimeinordertoconvertsomethingaslargeastheworldsautomobile populationfromonebrandtoanother.Ittakesapproximatelyfifteenyearsfortheautomotive fleettoturnoverintheUSalone.Thisbeingsaid,amassconversionoftheworldscar populationwouldtakeevenlonger.Asignificantswitchtohybridsfromgasolineanddiesel vehicleswouldhavetobemetbeforeanychangescouldbeseenwhendealingwithmassive worldpopulationandhighdependencyontransportation.Unfortunately,wediscoveredthat werequire5080%ofthecarbuyersworldwideadoptthesenewlowcarbontechnology automobilestomakeamaterialdifference.Thatnumberfarexceedswherewearecurrentlyat today. Asweinvestigatedthesubject,wealsolookedintotheadditionalmaterialsthatwent intohybridvehiclesthatwerenotusedinstandardcombustionenginevehicles,suchascopper andnickel.Wediscoveredthatduetothelargepopulationofcarsintheworld,itwouldbe impossibletodoanabsoluteconversion.Itwouldrequirebuildingbatteriesthatalltogether containmorenickelthantheworldcurrentlyhas.

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Awidespreadchangetohybridsrequiresanextendedperiodoftimeandalsomaynot becosteffective.Manyoftheoutcomesarenotworthallthatgoesintogettingtheadvanced technologyontheroad.Evenifhybridvehiclesareapossibleadvancementoftransportation technology,theissuesthatcomewithchangingtheworldspopulationofstandardcombustion enginevehiclestohybridsposetoolargeofatasktobecompletedwithinanygivenamountof time.

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Chapter5.

Conclusions

Dohybridsmeettheexpectationsthatsocietyhassuggestedoftheminthepast decade?Thatisthemainquestionthatwesetouttoanswerinthispaperandithasmany factorsthathavetobetakenintoaccounttoanswerit.Peoplethatbuycarsneedtoknow whattheywantinacar,choosetherightcar,andbeawareoftheinvestmentthattheyare enteringinto.Carmanufacturersanddealershipsneedtounderstandtheconsumerneedsand habitsbeforetryingtosellhybrids.Yes,thetechnologyisadvancingandhaspotentialbutit hastobeusedcorrectlytoworkeffectively.Overall,hybridsreallydonotliveuptotheir expectations. Firstofall,forcarsthataresupposedtobemoreenvironmentallyfriendlyhybridcreate muchmoreemissionbeforetheyevenhitroads.Theproductionofhybridsisfarmoreharmful thantheproductionoftodaysregularICEs.Insomecases,hybridsconsumefourtimesas muchenergyinproduction,andinturnareresponsibleforfourtimesasmuchharmful pollutionthatisreleasedintotheatmosphere,whencomparedtononhybrids. Itiseasytojumptotheconclusionthatahybridwhichgetsbettergasmileagethana nonhybridwillsavetheconsumermoney,butinitialcostsmustbetakenintoaccount.Ifthe increasedinitialcostofahybridistoomuch,theinvestmentwillbeveryhardtobreakeven with.Hybridsmustbedriventohighmileagesincertainconditionstoreallybeworthpaying for.Thesemileagesareoftenevenwith,ormanytimeshigherthan,theaveragemileagethata consumerkeepstheircarfor.Thespecificdrivingconditioninwhichahybridiseffectiveisinall citydriving.Thismakesitevenharderforaconsumertorackupatleast150,000milesto justifythehighcostofthecar.Anyonewhosedrivingexceedsthelowspeedsofcitydrivingis substantiallyincreasingthemileageinwhichtheywillhavetodriveinordertobreakeven. Mostconsumersprobablydonottakethetimetoactuallydooutthecalculationstosee ifahybridwillsavethemmoney,butmoneyissomethingthattheydothinkaboutalotwhen consideringbuyingahybrid.Somehybridsarecloseto$10,000morethanthenonhybrid modelofthesamecar.Manypeoplecannotjustifyspendthatlargeamountofextramoneyfor somethingthatissupposedbetterforboththeirwalletsandtheenvironment.Many consumerswhowanttobuyahybridvehiclewillnotbecauseoftheirpricealone.Thereare
56

HybridCarsIQP

however,manyotherreasonswhypeopleoptoutofthehybridoption.Inthenortheastern U.S.especially,peopleneedvehiclesthatcanperforminharshconditionssuchassnowstorms, orthatcanhandlerough,unpavedroads.Manyhybridssimplydonothavethepoweror capabilitytofulfilltheneedsofcertaingeographicareas.Althoughthetrendofhybridsbeing smallisstartingtochange,manyconsumersfindthemtobetoosmallfortheirneedasafamily car.Hybridsaregrowinglargertomeetthisdemand,butastheybecomelargertheirefficiency decreases.Small,efficientenginesareforsmall,lightweightcars,notlargeSUVs. Thisleadstothequestionofwhenhybridtechnologywillactuallymeetitsexpectations. Wecannotsayforsurewhatwillneedtohappen,butwecanmakesomerecommendations. First,stepsshouldbetakenintheareasofproduction.Industryneedstofindcleanerandmore efficientwayofproducinglightweightmaterialssuchasaluminumandcarbonfiber,whichis usedinthecarbodies.Moreeffectiveandincreasedlevelsofrecyclingwouldleadtomuch lowerenergyconsumptionandwouldaddtothecleanimageofhybrids. Thenextissuethatshouldbeaddressedforhybridtechnologyisusingiteffectively. Usinghybridsastaxisinlargecrowdedcitieswouldbeaveryeffectiveuse.Taxisareabundant, constantlyinuse,andstuckintrafficinlargecitiessuchasNewYork.Thiswouldbetheideal situationforahybridasitwouldnotbesittingatredlightsidlingandproducingharmful emissionsanditwouldrarelyhavetobeusedatspeedsabovetheeffectiveelectricengine range.Withtaxisconstantlyinusetheywouldreachtheirbreakevenpointmuchquickerthan afamilycarthatisusedforonlydailycommuting.Thesheernumberoftaxisinlargecities wouldplayalargeroleintheireffectiveimplementation,andwouldbeagoodfirststepfor widespreadchange. Widespreadconversiontoahybridtechnology,suchasfullyelectricorhydrogendriven vehiclesisstillalongwayoffandisnotfeasibleatthistime.Theproductionofequallyefficient hybridvehiclesisnotgreatenoughtocompetewithnonhybrids,botheconomicallyand numerically.Thesekindsofhybridcarsareexpensiverightnowandareproducedinsmall numberscomparedtootherconsumercars.Ifenoughofthesevehiclescouldbe manufacturedandsoldthenanewsourceoffuelwouldhavetobeimplemented.Converting gasstationstonewrefuelingstationswouldbeextremelytimeconsumingandexpensive.Ifin
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thefuturetheseplansweretobefulfilled,itwouldbebesttostartwithafewverypopulated centersandspreadoutward,butagain,theseplansarefarinthefuture. Overallhybridtechnologyisheadingintherightdirections,butalotofworkmustbe donetorefineit.Industryneedstobeabletoproducehybridswiththesameorlowerlevelsof emissionsandenergyconsumptionasconventionalcars.Engineersneedtodevelopmore effectiveelectricengineswithagreaterspeedrange.Hybridsneedtobecomparableto conventionalcarspricewiseandperformanceforconsumerstostartpurchasingthemina largerscale.Untiltheseissuesareaddressedhybridvehicleswillnotmeettheexpectationsset forthbytodayssociety.

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AppendixA:FocusGroupTranscript
FocusGroupTranscriptfor:Peoplewhoboughtanewhybridcarinthepastyear. Gove:MynameisBrendanGoveIamajunioratWPImechanicalengineeringmajor.Thisfocus grouppointistosupportresearchthatwearedoingforaneconomicalandenvironmental analysisonhybridtechnologyanddifferentimpactsthattechnologycanhaveonournationand ontheworld.Thegoalofthisgroupistotryandinspireyouguystotalktooneanotherand findoutwhatreasonswentintoyoupurchaseyourdecisiontobuyahybridvehicle.Startingoff onthat,whatwerethemajorfactorsthatwentintopurchasingahybridvehicle? Participant#7:MywifeandIhavebeendrivinghybridsfor10years.Wepurchasedthefirst ToyotaPrius,a2001,purchasedin2000,andwedidbecauseIwentdowntoameetingwith ToyotawiththeMechanicalandElectricalengineeringprofessionalsocieties,andalltheyhad wasrighthanddriveToyotaPrius,andIsawthedesignofthisearliestPrius,theywerealready sellingtheminJapan,andIcameawaysayingmyGodthatthingissobeautiful,froman engineeringstandpoint,thatonthedrivehomeItoldmywifeweweregettingoneofthose thingsassoonastheyareavailableandiftheyareatareasonableprice.Ithinkwewaitedat least2yearsuntilitwasintroduced,andweboughtnearlythefirstPriuseversoldin Massachusetts,andwestillownit.Threeyearslaterwepurchaseda2004in2003andwehave beendrivingthatandtypicallywekeepcars1214years,soweareonthe10thyearsofour 2001Prius.Iamlookingatthepossibilityofaplugincar.Sowehavebeenatthisforyears. Priortothat,partofmyretirementofWPI,Ihelpedcreatetheelectriccarandsolarcar program2025yearsago.Wedesigneddevelopedandmanufacturedandracedsolarpowered racecars.IhadthebackgroundofhelpingWPIstudentscreateasolarpoweredracingcarthat weracedfromFloridatoMichigan.Attimeswemovedthecarat60mph,butduetoenergy conservationissues,weoftenmovedslowerthanthat.ThenIleadprojectswithWPIstudents immersingstudentsatGMinWarren,Michiganlookingatthecarstheymade.Ihadstudents whothoughttheycoulddoabetterdesignthatGM,sowedidit,wetriedit.Thatwasone reasonwhyweboughtthePrius. Gove:IthinkthekeythingIamgoingtotakeformthatisyousaiditwasanamazingvehicle, thataspectyouarereferringtoistheadvantageofhavingadualpowersystemthecar providedforyouright? Participant#7:Rightthatswhatthecarwas,butIwasseeingsomeofthedetails,but understandingsomeofthedetails,thedetailslookedverysubstantialandveryreal.Sosure,we weretheretoseetheconcept,butwhatIwasconvincedaboutwasToyotasabilitytodesigna vehiclewithreliability,regardlessoftherecenthappeningsthatthemediaisblowingoutof proportion.So,theyhadadesignthatlookedbeautiful,almostasifIwasahumanlookingata painting.FormeIwaslookingatapieceoftechnicalbeauty.Mywifeisnotanengineer,butwe
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bothagreedthatthatcarwasanamazingcar.TheproblemIhadwastryingtoteachsalesman howthesevehiclesworked. Gove:Becauseitwassonew,right? Participant#7:Yah,Ihadtoteachtheseguyswhattheywereallaboutandhowitworked.It wasunfortunatebecausethelastguywhosoldusthePriusdidntevenknowhowtosellcars.I hadtoteachhimhowtosellcarstoo! Gove:Soanyotherthoughts?Anyonejumprightin?Similarthoughts? Participant#8:IcanfollowuponthatbecauseIdidalotofresearchlookingandcomparingthe HybridToyotastofords.Ifeltthesameway,doingtheresearchIknewIwantedtoreplacemy 1011yroldSUVIwasdrivingatthetime.SoIlookedattheHondaInsight,andtheFord escape,andthetechnologyofthePriusseemedtobethemostadvanced,andthatswhereI feltthatsplurgingandpayingtheextraexpensewasworthit.Iamstillpayingoffthestupid thingbecausethatsexpensiveforme.Idonothavetheabilitytopaythestickerpriceofthe Prius. Gove:Rightbecausethatsahugethingthatgoesintoconsumertrendsbecauseyoupayan extraXamountofdollarssoyouhavetoaskyourselfifitsworthit Participant#8:IdidntknowifitwasworthitbutIrealizedIcouldsavecostsincomparisonto thegasguzzlerIhadbefore.SoIransomenumbersandtalkedtosomeECEstudentswho supportedmegettingthecar.Notonlyfromanenvironmentalstandpointbutaneconomical standpoint,itwasfunnythatthesegradstudentsweresellingme.AndIamstillgoingtobe payingforthiscarforthenext2.5years. Participant#7:Wecameinat20,000onbothofthem.The2003wasthesameasthe2001. Participant#8:WellIhadtheupgradedradiosystem. Gove:Sooneofthethingsthatwearefindingonourstudiesisthatpeoplearebuyingthese hybridsforwhatyouguysaretellingme.Environmentallytherearebenefits,doingyourpart, savinggas.Inthesamesense,wearefindingthatthePriustechnologyismoreofastepping stonebecausewearestillrunningintoproblems.Thisisalsoasimilartypeofproblemwith petroleumshortage.Thesamethingoccurswiththechemicalmakeupofthesebatteries,being ofanevengreatershortagethanpetroleum.Anotherproblemishowdoyourecyclethese batteries,somethingwedonotcurrentlyknowhowtodo.So,talkaboutweighingthebenefits ofgainsinonesidebutmaybealossinanotherside.

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Participant#8:Thebatteryrecyclingwasaquestionforme.Iusuallykeepmycar10years.Ifelt thatbythenthatthisproblemwouldbesolvedbythen. Gove:Thismakessensebecausethelifespanisabout810years. Participant#9:ThatwasaconcernformetoobecauseIwaslookingforacarbecauseIhavean 1.5hrcommutefromwesternMassachusetts,andIneededacarthatgotbettergasmileage thanmyoldVolvo.Iwasconcernedaboutthebatteryissuewhichturnedmeawayfrom hybridsPrius.IwentwiththeJettadieselwhichatthetimewasbillingasanewcleanburn dieselsoitdidnthavesupposedlythatsametypeofparticulateemissionsasotherdieselsand itgets48mpghighway.Myobjectivewasto,withoutunderstandingthetechverywell,tomake itintoagreasecarthatit,well,becauseitwassonewandwelldesignedthatmymechanicwho installsgreasecarconversionsrefusedtoputtheconversionkitintothenewvehiclebecauseit wasuntestedandunchartedterrain. Participant#10:Whatisagreasecar? Participant#9:Itisacarthatyouconvertsoitcanburnvegetableoil;theysmellgreat,like Frenchfries.SO,Iobviouslydidntconvertittoagreasecar,butwhereIliveIcanbuybiodiesel outthepart,andthecarmanualsaysIcanuseacertain%ofbiodiesel,whichIdosometimes butitismoreexpensive. Gove:So,a1.5hrcommuteiswellover600milesperweekright? Participant#9:Thiscarisabout1.5yrsoldandhas40,000milesonit Gove:Sothatsthebiggestthingyouguysaregivingmeisthatyouboughtthehybridbecause ofthelargeamountofdrivingyoulifestylebrings.Peoplethatbuythehybridsaredrivingalot ofmiles. Participant#8:Yah,Idrive20,000milesayear.) Participant#9:IwouldtakethetrainifIcouldbutitsterrible. Participant#11:Iknow,ImovedfromthewestcoasttoWorcesterand3weeksbeforewe movedoursecondcarhitadeer,sowhenwecametotheeastcoastwewereunderthe impressionthatthepublictransportationwasamazing,butitisnt.Wetriedhavinga1car familyforawhile,takingthebus.IlivenearWebstersquareinWorcester,andwepurposely livedinWorcestersoIcouldcommuteandstaya1carfamily,andittookmy2hourstotake thebus4.5miles,usingthreedifferentbusroutes.So,wehadtobuyasecondcarwhichwas thePrius.OneofthereasonswasthatmyhusbandgotajobinWestboroughforthecommute. TheotherreasonwasthatImanacademicandthePriusissymbolicallysexyintheacademic
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HybridCarsIQP

world.Weareaweirdgroupwelikethat.Partofthepurchasereasonwasalsoduetothe timingthatcarsaleswereatanalltimelowandcarpricesatthisparticulardealershipwas1/3 theprice.SowewereabletobuyausedPriusforlessthan10,000,whichwasanawesome incentive.Ifeelverystronglyaboutbuyingusedcarsaswell,IguessIshouldthrowthatout theretoo.SOyah,itwascommutingandIthinkitsusefultotalkaboutthesymbolicreasons thatpeoplebuyPriusoverotherhybridsouttherebecausepeopleseethecarandknowitsa Priusandknowwhatitstandsfor. Gove:Absolutely,wehaveseenmarketingtrendsthatpeopleliketheirbrandnameproducts Participant#8:IdontknowIlikedthelookoftheHondainsightbetter,Ilikedthefordescape, buttomeitwasntaboutthestatusofhavingaPrius.NowwhenIgotitpeoplewereall,Oh mygoshyouhavethiscar,butIdontfeellikeIhaveasymbolicmindsetofbeingproudofthis car. Participant#12:OnthesubjectofstatusIcantellaveryfunnybackstoryaboutmyfirstPrius andnowmysecondPrius.IboughtmyfirstPriusin2002,notquiteasmuchasanearlybirdas you.ButIdefinitelyrecognizedthattheearliermodelswouldhavecertaincostsassociatedwith them,butIfeltitwasimportanttoaffiliatemyselfwithaproductthathadapartofalarger narrativeoftransformationoftheautoindustry,towardattemptingtodealwiththeselarger issues.ItwasthefirstcarIhadeverboughtjustbecauseofmylifestyle.Iwasteachingata privateschoolinCalifornia.InmyearlydaysofteachingatthisschoolIwasdrivingabroken downSUVandwasgettingsomesmirkylooksfromparentsandpeers.ThenIwasableto completethetransactionandpurchasethe2002Prius.Ithengotdifferentlooks,notanyless smikrybutmoretowardsalackofunderstandingaboutthetechnology.SOIthinkthatthe symbolicnatureofthePriusdefinitelyhasweightinwhypeoplegetthemnowhowever. Participant#12:Thatcarwastotaledin2004andatthatpointIwasfacedwithadecisionwhat Ido,becauseatthatpoint,thePriushadbecomevisiblyenoughsothattherewasa6month waitinglisttogetareplacement,newPrius.TheyhadjustshiftedfromthefirstUSgeneration tothesecondUSgeneration.Idecidedtowaitoutthose6months.Itwasimportantenoughto metostillhaveaPriusandtocontinueonthis,sortof,trendtowardthenewertechnologythat wasmovinginanimprovingdirectionwithregardstoecologicalconcernsthatIdecidedtowait. SoIwent6monthsingraduateschoolwithoutacar,andboughta2004in,Iguessitwas,early 2005.ThatsthecarIcontinuetodrivetoday.Ionlyput,probably,8000milesayearonacar. Andreallytrytominimizemyuseofthecaraswell. Gove:Sothatproductreliability,yourloyaltytothatproduct,excusesme,whichoriginated fromwhat?Thatexperienceyouhadatthatprivateschool?

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Participant#12:Well,itsagreatcar.Imnotanengineer.Imahuman,butjustasIm enthusedaboutlookingatpaintingsImalsoenthusedabout,youknow,engagingwiththiscar becauseIthinkitisanimportantthing.AndalsoIhatetodrive,likeIreallydont.Iwould rathermywifedrive..AndIfindthecarrelativelypleasanttodriveonthoseoccasionswhenI absolutelyhaveto.IdotrytoavoiddrivingbutIfindthatthewaythatithandlesmeansthat ImactuallymoreconsciousaboutthechoicesImmakingwhenIamdrivingit,intermsof layingonthegas,howIbreak,howItakeelevation.Allofthesethings,Inoticethemmuch morewhenImdrivingmyowncarthanwhenImdrivingmywifescar. Gove:yourwifedrivesa? Participant#12:DrivesaHondaElement,muchtomychagrin,andwillprobablyupgradetoa minivanwhenoursecondbabyarrivesinthenearfuture.Soya,partofthatproductloyaltyis the,sortof,thatwaythatproductturnsmefromaveryornerydrivertoadriverthatisatleast willingtogooutontheroadwhenhehasto. Participant#12:Myexperienceissomewhatsimilarandalittlebitdifferent.Ienjoydrivingand hadadriverscar,theSubaruWXWagon.Itwasatonoffuntodrive,butitwasalittlecar,4 wheeldrive,andyouwereluckytoget24milestothegallon.Sowhenthatcarwasoldenough thatIwasgoingtotradeit,IdecidedIdidprefertogetahybridforavarietyofreasons;long weekendcommutessoalotofmiles,andsomethingthatIcouldfeelgoodaboutdriving.I reallyfeltlike,andstillfeellike,atleastforthecarIbought,Imnotsurealltheeconomic benefitsaretherebutthemoremilesyouputon,themoreyousave.Soifyouredrivinglong milesanyway,atleastyouresavingsomething.Imnotsureifeveryonefeelsthisway,but theresanelementofyouaredoingsomethingbetterfortheenvironmenttoo,byifyoure goingtodriveyourebetteroffowningoneofthosecars.IgotaFordFusionHybridbecauseI likedhowitfeltontheroadbetter.ButIthinkanotherfactorthatweveheardfromanumber ofotherpeopleistheFord,Prius,Imnotsurewhoelse;thecarsarereliable.Sothelow maintenance,highmileage,andcarthatfeltgooddriving;allthosethingswereimportantto me.IdidthinkalittleaboutthatfactthatIwasntadvertisingadarnhybridandthatwasokto me.ButIdofindmyselfwhenpeoplesay,Oh,yougotanewcar.AndIdosay,Itsahybrid. SoIdothinkitssomethingIm Gove:Consciousof? Participant#12:Well,notjustconsciousof.Ithinkthereisabragfactorthatyouwantthat imageofdrivingahybridtoattachtoyou.Thatitsgoodfortheenvironment,butyoudofeel goodaboutdrivingitandadvertisingthattoo. Gove:Nowoneofthebiggestthingsthatwecameacross,wewerewondering,whyisitthat companieslike,welltalkspecificallyaboutGeneralMotors,whyisitthatacompanyina
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country,thatitsclaimthattheyareintelligentaboveparfromothercountries,whyisitthat suchahighclasscompanywouldallowitselftogetintothesituationitdidwithregards economically.Howisitthattheycouldforeseeinthe1970swhentherewasasimilargascrisis, anevenworsegascrisis,howisitthatacompanylikethiscouldletitselfgetsofarbehindin technologysuchashybridtechnology? Participant#7:Ihaveananswerforthatifyouwantananswer.Iknowthewholehistoryof GeneralMotors,whytheyendedupthewaytheydid.Itsveryclear.Wellitstartedoutwith GeneralMotors.Thefirstworldsolarchallenge,araceofsolarcarsacrosstheoutbackof AustraliafromDownAttalaid,tookplacein1987.AndGeneralMotorsputtwovehiclesinplace totakepartinthatraceofsolarpoweredracingcars.Theyinvitedmetocomealongwiththem totheraceinAustraliaandtheywontherace2000mileshandedly.Theyhadreally tremendoustechnology.Muchofitcamefromaskunkworks,asmallcompanycalled AerovironmentinCalifornia.Theywerecloselylinked.Whentheyhadthatsuccesswithsolar poweredracingcarinAustraliatheybasicallytunedtothisskunkworksandsaid,Heylets createavehicleforthepublic,anautomobile,electricautomobile,andtheytookeverything theylearnedintermsofefficiencyfromthatsolarpoweredracingcarandputitintothiscrazy carnamed,theImpact.Whywouldyougivenametoanautomobile,theImpact?Butthatwas thenameofit,Impact.Itwasthefinestpureelectric,nothybrid.Itstillmayhavebeen,today,if Icanseeotherelectricscomingalong,thatGMImpactelectriccarwasthefinestelectriccarI haveeverbeenawareof.Itmaystillexceed,evennow20yearslater.Soitturnsouttheyhad totakecareofthenamesotheychangedthenametoEV1.Andthathadaleadacidbattery, andthentheywenttoEV2withanickelmetalhydridebattery.Theywereinabsolutelygreat shape.Thechiefexecutiveofficer,theCEOandchairmanoftheboardwasaWPIalumnus,Bob Stemple,wasagoodfriendofmine,althoughIdontseemuchofhim.GeneralMotorswas absolutelytops,wayaheadofJapan,wayaheadofeveryone.Theywerebleedingmoney.There wasaseriousproblemwiththecompanylosingmoneyinspiteoftheoldthingstheywere doing.Sotheyactuallybroughtinanewchairmanoftheboard.TheydidntreplaceBob Stemple,ourWPIalumnus.TheydidntreplacehimasCEObutdidaschairmanoftheboard. AndtheyreplacedhimwiththeCEOofProctorandGamble,whichpuzzledthedaylightsoutof me.Butitdidntpuzzlemeforverylong.Thatnewchairman,fulltimeCEOofProctorand Gamblenowbroughtin,andhesstilldoingProctorandGamblestuffbuthesparttime chairmanoftheboardatGeneralMotors.Hetunedtomyfriend,BobStemple,andsaid,Bob Imgoingtohaveyoudotwothings.FirstallImgoingtohaveyoufire40,000people.Andthe secondthingyouregoingtodoisgetridofthisnonsenseofelectriccars.AndGeneralMotors wasthetopsintheworldatthatmoment.Theyhadafantasticallycapablegroupof300people doingtheirelectriccarwork.BobStemplefacedthenewChairmanoftheboardandsaid,Iwill not.SotheyfiredBobStempleandthentheyproceededtofiretheir40,000peopleand immediatelygotridofthisamazinggroupof300pioneersinelectricvehicles.Thatwasnotthe
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choiceofGeneralMotors.ThatwasthechoiceofanidiotthattheyhadbroughtinfromProctor andGamble,amanwhoknowsallaboutIvorysoap,pampers,Pringlesandafewotherthings. Butapparentlyheknewnothingaboutautomobiles. Gove:Right,sohislackofunderstanding,allhesawwaslossofmoney. Participant#8:However,withanyinnovativeyouhavetoputalotofmoneyintoresearchand developmentinordertobeaninnovativecompany. Participant#7:Atanyrate,themanfromProctorandGamblehadnovisionofthefutureofany kind,sowhenwetalkaboutGeneralMotorsIliketodistinguishGeneralMotorsfromProctor andGamble.Now,therewasamistakemadebytheboardofdirectorsofGeneralMotorsto bringthisguyinaschairmanoftheboard.Thatwasaseriousmistake.Itcost,theboardof directorsarelargelyoutsiders.So,ifIweretoblameanybody,Iwouldblameabunchof outsiderswhocameinandtookcommandofGeneralMotorsandmesseditup. Participant#12:canIactuallyconnectProctorandGambletoGeneralMotors,justintermsof myownchoicesasaconsumerbecausehearingthisstory,tome,isextremelyinteresting.It speakstothenotionthatonceyouhaveacommodityyoumustcontinuetomonetizeitin ordertomaximizeprofit,whetheritsadiaperoracar.Nowastheparentsofa15monthold, wemadeadecisionupfronttopurchaseclothdiapers.Wewashthoseandthatwasextremely expensiveupfrontbutitisalsoacommoditythatdoesntcontinuetobemonetizedinthesame waythatdisposablepamperswouldbe.Andinthesamewayyoupayacertainpriceupfrontfor thehybridcar,andthenitsnotasmuchasanexpenselaterinthegame. Participant#7:IwasthefirstpersonwhodidnotworkforGeneralMotorswhotestdrove, whenitwascalledtheImpact.Eventually,theychangedthenametoEV1.Iwasthefirstguy outsideofGeneralMotorstotestdriveone.Itstillhadpotentiometers;itwasntfirmly imbeddedwithitscontrolpanels.Youcouldstilljigglethings,anditwasthemostbeautifulcarI haveeverdriven.Whentheyfinallycameoutintothemarketplace,theywereverycautious. NowthisisbeforewhatIjustdescribedhappened,whiletheywerestilltryingtomakeit happen.Theydecidedtohavetwolimitedmarkets;oneinPhoenix,thePhoenixareain Arizona,andoneinsouthernCalifornia.Theywerenotgoingtosellthemrightaway.Theywere goingtoleasethem.SoIhappenedtobevisitingoneofmysons,mywifeandIhaveavery largefamily4kids,12grandkids,10greatgrandkids,andthissortofthing.Wewerevisiting partofourfamilyinPhoenixandhebroughtmetotheparticularoutletfortheGeneralMotors Impact.Theysaid,Hey,getinanddrivearealonenowthatitsallfixedup.Youdonthave diddlingofpotentiometers;youjustgoinanddriveit.Anditwasmarvelous;absolutely beautifulcar.Greatacceleration,greateverything.Ihadtocalmdownalittlebitbecauseas soonasIgotinthatcarinPhoenix,therewasaPhoenixpolicemanbehindme.Iwantedto
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reallytrythiscarandseetheaccelerationandspeed,butIwaslimitedbytheguytrackingme thewholedistance.SoIwassomewhatlimited.Butthatssortofthestory.Withrespecttothe hybridcar,oneofthefirstquestionsthatpeopleaskmewhenIboughtthefirstoneintheyear 2000,firstquestionIdgetwas,Yawhataboutthepowerbattery?Isntthereaproblemwith that?Nowtheendresultofthatis,westillusethat10yearoldcar.Itsoursecondcar.Itstill hasthesamepowerbattery.Itjustgoeson.Itkeepsgoingandgoingandgoing.Ihadasked thatquestiontotheToyotapeopleinthoseearlydaysandtheysaid,Wethinkitwilllastthe lifeofthecar.Now,Ithinkatraditionaldefinitionofthelifeofacarisabout12years.I thought,well,theywerebeingquitehonestwithme.Iwasaknowledgeablepersonanda knowledgeablecustomer.Theysaid,Wedontknow.Wehaventtestedit.Wethinkitwilllast thelifeofthecar.Well,wehavea10yearoldPriusanditstillcranksalongquitewellwithits oldpowerbattery.Duringthattime,Ihappenedtobeadownhillskier,mostlyatMount WachusettandIdhavetheonlyPrius,ofcourse,parkingattheparkinglotoftheskiarea, MountWachusett. Participant#11:Youhavetolookatthetaxstructures.Theyhadtaxedluxurycarssothatthe peoplewhowantedluxurycarsswitchedtoSUVs.Soitsnotthatgaswascheap,itwasthatto buytheoldsymboliccarsbecameprohibitivelyexpensive.Andnowthereisthisnewclassthat getsoutofthetaxstructurethatcangiveyouthesymbol,right?Ithinknowthetaxstructureis switchingtothehybrids,whenreallyitshouldbeswitchingtotheelectriccarortheaircarsor abillionoftheotherenergyefficientthebiodieselorwhateverbecausetheyarebetter. However,oursymbolicimaginationisaboutthehybridsrightnowbecausethatisverysexy rightnow.Anditisaffordable.ItsmoreaffordablethanalotoftheotheroptionslikeIwas pricingtheTeslaaircars.IwasleapingbecauseIreallywantonethose,right?Sotodivorceit fromtheculturalaspectIthinkisdangerous.Alsothemonetaryaspectthetaxstructure,its notjustnowmuchdoesitcosttobuythePrius,butwhatinthetaxstructureallowsthatto succeedandotherthingstofail,anBecausetherearemassiveshiftsthatarehappeningallthe time. Participant#10:Intermsofthepower,um,Ididthinkaboutgoingfromfourwheeldriveto frontwheeldrive,butitwasntthatbigofapartofmydecision.ButthePrius,thefordfusion theyhaveasmuchpowerassmall,midsizeorcompactcars.Itdidntplaythatmuchintomy decisionatall.OhIforgotmyfirstlongrideinaPriuswasintheRockyMountains.Andum, thatwaswithsomebodywhowaslookingattheHondabackwhenitwasthecivichybridorthe Prius.Anditwasalittlenoisygoingupthesteephills,butwegotupthemanditwasnta problem.Iwasquiteimpressedwitheveryaspectofthatvehicle.Thatprobablykindoflaid thegroundwork.SoIwasthinking,yeahImgunna,Icoulddriveahybridforsure.

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Participant#12:IliketogodownhillwiththePrius.ThePriusitselftaughtmehowtodrive. MydrivinghabitsareactuallygearedtothePrius.GoingdownhillIputitintoenginebraking whichhappenstooptimizetheamountofenergygoingbackintothebatteryandIoftenwillgo asfarasIcanwithjusttheelectricmotor.Withtheoriginal2001,whichweboughtin2000, Priusitcouldgowiththeelectricmotoraloneonly30mph.Beyondthatthegasolineengine wouldturnon.Withthe2004modelIcouldgo,forshortdistance,at40mphwithonlythe electricmotoralone.SoittaughtmeIdontthinkIcoulddrivearegularIvebeendriving thesetoolong.Imtunedintothesethings.Ford,FordMotorgotstartedwithhybridsbybeing licensedtoToyota.Toyotasoldthemsomethinglike70patents,butnotontheirnewestdesign. TheywouldonlysellFordtheoriginaldesignsoallofFordsearlyhybridswereToyotadesigns. Participant#8:AnywaythepowerisOK.Iwentfroma6cylinderwhichhasalotofpower.The Priusisnotverygoodinthesnow,atall.Idislikethat.Comingfrom,IlivedinupperWisconsin, andIboughtanSUVandIboughtitbecauseIneededtobeabletogetaround.Itmadesense theretohavefourwheeldrive.YouknownowthatIliveintheWorcesterareaIdontreally needthat,butIhavetosaywhenIgetintoanoldstickshift,youknow,myfriendsmini cooper,IfeellikeIminasportscar.Imissthesortofstickshiftandtheabilitytocontrolacar andreallyziparound.ItsdifferentandIthinkIdrivemuchmorereasonablythanIdidbefore.I havechangedmydrivinghabits,probablyforthesaferside,butIstilllovegettinginafriends carandzippingaroundinastickshifteveryonceandawhileanditssomuchfun. Participant#7:WedriveregularlyintoNewHampshire,sowearealittleaccustomedtosnow andhillsandthings.Itstillworksok. Participant#8:Itworksbutitsnotgreat. Gove:Doyoufindyourcarhowisthatinthesnow? Participant#10:Iwilladmitwithpuregasolinecarsinthepast,Iwouldalwaysprefertodrive afterthestreethasbeenplowed. Gove:Right,right. Participant#10:Ineverenjoyeddrivinginsnow.Sothathasntchanged.Butwiththefront wheeldriveonthePrius,itisprettydecent. Gove:Ok Participant#11:IlearnedtodriveinupstateNewYorkandsoIhaveprobablylessfearin drivinginsnowthanIshould.IfindthatyoudolosealittlebitinthePriusincertainweather conditions.

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Gove:Intermsofhandling? Participant#12:Intermsofhandlingyeah,youcan,especiallyuphills.Youcanlosealittlebit ofhandling.Butaslongasyouareawareofthatandaccountforthatcircumstance,Idontit veryrarelyaffectswhereIchosetogo.AndontherareoccasionIchosetotakemywifescar forsomespecificpurposeinsomespecificclimatesituationthatsaluxurywehaveinbeinga twocarfamily.Butintermsofthequestionofpower,thatgoesrightbacktowhatJenniferwas sayingaboutthesymbolicissue. Gove:Itscosmetic. Participant#12:Imnotgoingtopassasportscargoinguphillat80mphintheRocky Mountains,nordoIwishto. Participant#10:Doestheturbodiesel,doyoufeelthelackofpowerinthat? Participant#9:Inthesnow?OrjustImeanithasanincredibleamountofpoweronthedry pavement. Participant#10:Itsverytorquey,itsverytorquey. Participant#9:Itscrazy,butitsnotfantasticinthesnoweither.Again,itsasmallercarthan Imusedtodriving.ItsalightercarthanImusedtodriving.AndIdidspecificallynotchoosea PriusforthatreasonbecauseIknewIhadtodrivethroughsnowandIhadheardfromfriends wholiveinwesternMasswhohadPriuscars.Theysaid,youknow,theytakeouttheSubaruin thewinter,youknow,becausewhereweliveitsunpavedroadsanddeepsnowandyoucant drivea,theysay,thatyoucantdriveaPrius. Participant#11:Icantgetoutofmydrivewaysometimes.IfIhave6inchesIhavetoshovela path.ImeanIhaveaplowthatcomes,buthecomesattheendofthestorm.Ihaveahundred footdrivewayandIcantgetout. Participant#9:Ihadtobeabletogettowork. Participant#8:IusedtobeabletogetoutwithmySUV,nowIgottagettheshovelout. Gove:WellIguessthepointofthatisjustthathavingthathybrid,eventhoughyouhaveto dealwiththesnow,itsworthhavingthehybrid. Participant#8:Itis,Imnotgoingtogobacktogetting,ImeanImightconsidergettingadiesel whenbiodieselbecomesmoreavailablewhere,youknow,whereIgetmygasandlive.Right nowthatsnotasreadilyavailableas,youknow,Greenfieldwhereveryouare.

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Participant#9:Yeah,thereisawholeplantoutthere. Gove:Really? Participant#8:Itspossiblethatbecauseyouaresayingyougetbettergasmileage.Imean reallywhenitcomesdowntoit,thatswhatmakesmostsensetomeisgettingthebestgas mileage.ElectriccarsIdrivetoomuch,Idrivetoofar.ImgoingtogetintomycaronFriday andImgoingtodrivetoMaryland.Anelectricpluginisprobablynotgoingtoworkforthat unlessthereishighspeedpluginstationsthattheyaretalkingaboutbuilding.Theyarenot thereyet.Maybesomedaywhentheyarethere,Iwouldconsiderthat,butthenImrelyingon thecoalinfrastructureofourelectricsystemintheUnitedStates,soIdontknow.Therearea lotofdecisionstobemade. Participant#9:Theproblemwithdieselisthat,youknow,theysaythatthisisabetterthese models,these2009models,areabettercleanburn.Andtheyalsosaythatifyouusea biodieselmixitencapsulatesalotoftheparticulatematterinawaythatyoudontgetwitha regulardieselmix,butIhaventseenthedataoniteither,soIdontknowifitsreallyjust spewingparticulates,andum,yesgettinggoodmileagebutwhatsthe,youknow,emission fromthevehicle.Imnotsoldorsureaboutthatyet,so Participant#8:ButifthereisahybridconvertiblethatcomesoutIdtellyou.Thatswhenthe sortofculture,whatisJennifertalkingabout,youknow,status.Iwantaconvertible,butthere isnohybridconvertibleyet. Gove:Fromtherecentresearchwehavedone,youknowwhatJenniferistalkingabout,you know,isveryreal,um,prettyinterestingstuff.Anyclosingarguments,anything Participant#7:Ithink,somethingthatissortofcriticalmaybe.Everything,youknow,Ive heardaboutethanolvs.fossilfuels,alcoholfuelsvs.gasoline.Iwasnegativeonthosethings becauseIkepthearingthatifyouturncornintoethanolandusethatsomebodyisgoingtolose foodorthepriceoffoodgoesup.And,uh,therewereargumentsofthat,andalsothatittook moreenergy,uh,tocreateethanolfromcornthantheenergyyoufinallygetfromethanolasa fuel.Itdidntseemtomakealotofsense.Idlistenedtoalecture,Iveforgottentheguys name,IdlistenedtoalectureaboutthreeweeksagoandImbeginningtochangemymind. Hewaspointingoutthatmuchofthedatawehavebeenbombardedwithconcerningethanol isincorrect.Thattheseclaimsarenotcorrect,thatinfactethanolcanbemadeandheshowed datawhichindicatedthat,youknow,youcanincreasetheamountoffoodfromcorneven thoughyoumaybeusingthecornforethanol.AllkindsofthingsthatIthoughtweretruemay notbetrue.Andhewasputtingonaverystrongpitchforustogetoffthebandwagonbetter thanahybridcoulddo.Getawayfromimportedoil.Hewasconcernedverymuchforthefact thatChinaandSaudiArabiaandalltheseotherpeoplearegettingourmoney,andwithour
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moneytheyareslowlybuyingintousandbuyingourcountrythroughcompaniesandthings. TheyarebeginningtogainmajorcomponentsofourownUScompanies.Sohewas,hewas talkingfromthepointofviewofalongrangeproblem.Whatis,youknow,whatisitgoingto dotothefreedomofthisnationifsuddenlywefindSaudiArabiaowns30%ofourcompanies orChinaownsanother30%.Buthisargumentwasthatethanolreallyisquitegoodandallheis askingforisthattheAmericancompaniesbuildallgasolineenginesflexengines,sotheycan useeitherethanol,85%ethanol/15%gasoline.Wealluse10%ethanolnow,90%gasoline.He wasarguing,Lookforthepriceofcreatingflexengines,andput1pump1tank1pumpateach gasstationwith85%ethanol/15%gasoline.Andhefeelsthatthatwillbuildit.Thespeaker hadveryhighpraiseforhybrids,buthepointedoutwhatweknow.Itcosts$345000moreto buyahybridcomparedtoacomparablegasolinecarandhespointingoutthattobuildflex engineswillcostonlyanother$2300.AndsohehasastrongargumentandIamweddedto electriccarsofhybridcarsandIwasopposedtoalcoholfuelsthinkingthatwhatIwasreading wasfullycorrectandapparentlyitwasnt.SoImabouttodosomereallydeepstudytowhat hewassayingandhemayberight,andthereforekeepinmindthatperhapsthefutureofthe companymightverywelldependonourwillingnesstopayacouplehundredforaflexengine, tryoutthe85%ethanol/15%gasandseehowwelikeit.Andheisprettycertainthatifwe tookthat1briefstepwecouldbreakthebackofSaudiArabiaandbreakthebackofChinawith respecttothegreat,powerfulimpacttheyarebeginningtohaveonthiscountry.And,uh,Im oneoftheguyswhohelpedwinWorldWarIIandImoneoftheguyswhohelpedwintheCold War.Iprovide,IhelpedtobuildtheminutemanintocontinentalballisticmissilewhenIwasin industryandImapatriotand,uh,ifyoutellmeifthereissomewaytobreakthebackofSaudi ArabiaandOPECandbreakthebackofChinaIminfavorofthat.SoImabouttolaunchintoa studyintoalcoholfuelsandflexenginesseeifIcanunderstandwhattheyaredoingand maybeIhaveanother15years,Imnotsure.Myfatherlivedtobe100maybeIvegot15 years,maybe,inwhichto,uh,stillhassomeimpact.ButImabouttomoveinthatdirection. SoitsjustacommentthatIthinkshouldbesaid.Lookattheideaofflexenginesandalcohol asthefuel85%ethanolbeingthefuel.Andacouplehundredbuckscomparedtoafew thousand.IlovehybridsandIloveelectricvehicles,buttherearesomerealproblems.Every pureelectricvehicleisveryexpensivebecauseofthebatteries.Everypluginisveryexpensive becauseofthebatteries.SoiftheresawaytothinkintermsofpullingawayfromOPECand pullingawayfromChinaandifithappenstouseadifferenttechnology,Idontcare.Imforit becausemyconcernisforthiscountry. Gove:RightmyheadisexactthisweekendIwastalkingtomygrandfather,hes86theexact same,youknow,conversation.WasthathefoughtinWorldWarIIandhehasresentment towardscompanies,towardsothercountrieswhoaregaining,uhyouknow,power.Thingshe, youknow,foughtforisrelapsing,iswhathewassaying.Sothatisaveryinterestingpoint.Did youwanttosaysomething?
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Participant#12:Thatsatoughacttofollowman,Idontknow,um.Imeantheonlypoint,the verylimitedpointthatIwantedtomake,butIthinkanimportantone.Inthesameway Jennifertalkedabout,um,thesymbolicpowerofthehybridcar.Whenyoutalkaboutthe AmericanpeoplewantingSUVs.wellwheredoesthatcomefrom?Inpartthatis manufacturedbyadvertisingappealtoconsumers,andsopartoftheequationhereis,you now,whatgetsadvertised,andpresented,andmarketed,andproductplacedinTVshowsand filmstoconsumersasthingstobedesired.AndIthinkthatisareallyimportantpartofthe equationthatwehaventtouchedonyet. Gove:Consumerdemandisareflectionofmedia. Participant#8:AndIguesstheothersideofittooishowthesortofenvironmentalside,how manypeoplearechoosingitfortheenvironmentalreason,andIjustread,IthinkintheBoston Globeyesterday,thatin20002009peoplehaventchangedtheirrecyclinghabitsatallin Massachusetts. Gove:Right,itsflatlined. Participant#8:Itsflatlinedsoaretherecertainpeople,andwevereachedthethresholdof thosepeoplewhoareenvironmentalinbuyingclothdiapersandhybridcars.Youknowwhere, isthereathreshold,orcanweconvertotherpeopletobuymoreenvironmentallyfriendly productsingeneral.SotheresabiggerquestionIthink,itsbeyondthecar,itsalifestyle. Gove:Whichisbecomingahugeissuewithyouknow,butthatsanotherwholediscussion.Ok great,ImeanIdontwanttoholdyouguysup.Thedealwasfrom4to5. FocusGroupTranscriptfor:Peoplewhoboughtanewcar(nonhybrid)inthepastyear. 8. Howmuch,onaveragedoyoudriveayear?Whatisyourdailycommutelike? City/Highway/Offroad. Participant1Idrivemycar,myprimarycarwasbought,probablyonlyabout10,000miles ayear.Mycommuteis20milesroundtrip,mostlyfreeway. Participant#2ImostlydontcommutetoworkandIhaveonlyhadmycarforabouttwo monthssoIdonthaveanyideaofhowmanymilesIcommuteayearbutwhenItravel homeandstuff,whichisgenerallyonceaweek,itsmostlybackroads. Participant#3Iprobablyputon,itsourmainfamilycar,andwevehaditforthree monthsandhaveputonabout4,000milesalreadysoprobablyabout13,000to14,000 ayear.Icommutetoworkprobablyabout30milesroundtrip,about25minutes.Its
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backroadsandmostofthedrivingIdoisnonhighwaywhichmakesthingswithfuela littlemoredifficult.Largetripsareallhighwaybutthegeneraluseissmallroads. Participant#4Ithink,wellIgetmyoilchangedtwiceayearso,probablyaroundthreeto fourthousandmiles.Iwouldsay.Idoalotofdrivingbutitsallcity,[mycommute]has gonefrom5minutestooneandahalfminutesofdriving,soIjustwalksometimes.But themajorityiswhenIstartdrivinginthesummerandthatgetsmetoabout4,000miles ayear. Participant#5AndIwentfrom1800feet,whenIusedtowalktowork,toactuallythecar thatwebought,mywifeistheprimaryuserandsheputsabout20,000milesjustfor commutingtowork,andbringthekidsbackandforthtoschool.Weboughtthecarat theendofMarchlastyearandwevegotover35,000milesonalready.Butalittlemore thanhalfofitisthecommute,themajorityofitshighway. 9. Howmuchdoyouspendongasperweek/month/year? Participant1about$50aweekforme. Participant#2Ithinkminesabout$35aweek. Participant#3Iprobablyfilluponceaweekanditsabout$4045aweek. Participant#4Ifillupeverytwoweeksanditsaround$35. Participant#5Itsabout$40aweek. 10. Whattypeofcardidyoubuy?Ifthereisacomparablehybridonthemarket,didyou considerpurchasingit? Participant1wellIboughta2003AudiS8,becauseyouknowthewasonly300ofthem madeandIwantedtogetonebutIdidactuallylookataHondaAccordHybrid,which surprisinglyhassimilarperformance,buttheyquitmakingthataswell.Butthereisno hybridrightnowthathastheperformancethattheseS8shave. Participant#2Iboughta2004RAV4.IlookedatsomehybridbutIreallywantfourwheel driveandsomethingbigger,slightlybiggercarthanmyChevyAveo,whichIusedto have,soIdidntreallylookintohybridsthatmuch. Participant#3Iboughtthe2010MazdaCX9.Iwantedahybridoriginally,buttheonlyone thatIreallycomparedittowastheToyotaHighlanderHybridbutitwasjustpricedout forus,butIwouldhavelikedtogetonebutforourneedstherewerentalotofchoices. Itwasjusttoohighlypricedandtherewerentthatmanyofthemavailableeither. Participant#4Iboughta2009HondaCRV.IdontthinkIreallylookedathybrids,theonly oneIthinkImighthavelookedwastheHondaAccord.ThereasonIgotithonestlywas theplaceIusedtolive,youneededadonkeytogetupthere,itwasallhillsandI actuallyneedfourwheeldrive.IdidntwantanSUV,likeIwasdrivingtheMayflower,so Iwantedsomethingalittlebitsmaller.
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Participant#5wegota2009ToyotaHighlanderandIwantedahybrid.WeneededanSUV becauseoftheterrainandhillsthatwehavetocommute.Iwantedthe,Ilookedatthe HighlanderHybridbutitwasabout$10,000moreandIlookedatwhatitwouldtaketo paythatback,thereturnontheinvestment,anditwouldntwork,Iwouldgetridofthe carbeforeitpaidoff. 11. Howmuchdidthecarcost?Howmuchwasthelastcarpurchased?Whendidyoupurchase itanddidyoueverconsiderbuyingahybridthen? Participant1Ialwaysbuycollectible,usedcars.SoIpaidoneBay15,700dollarsforthis car,butitsoldfor82,000,whenitwasnew.Andthenmycarprevioustothat,soldfor 51,000,butIboughtitfor11,000.SoIalwaysbuythemwhenandIlookaroundfor usedwhentheyareafewyearsold. Participant#2Iboughtmycarfor25,500andmypreviouscarforIthink12,500. Participant#3Ohgosh,Idontevenremember.Idontknow.Iwillgiveyouan approximatecauseitgetssowhorememberswhatyoufinalized.Idontremember.I thinkweboughtitforabout29,000.Ithinkthatsaboutwhatitwas.Andtheprevious carwehadaSubaruOutbackthatIloved,butitwastoosmall,wasummIthinkmaybe 24,000.Theywerentthatdifferent.Ineededathirdrow.Ohyeah.AndIlookedat theTribeca,buttherethirdrowwasajoke. Participant#4So,Iboughtmy1997usedSaturnforaround8,000dollars.Itwasthebest investmentever.IlovemySaturn.Itwasastandard.Ithadatonofmilesonit.It explodedandwellIbasicallydroveittotheground.SotheHondawasIthink24,000.I thinkrightonthedot. Participant#5IlovedmySaturn.Ihadtwoofthem.Ilovedthem.UmmIbelievewepaid about27,000andthelastonewehadaHondaOdysseythatIthinkwas23,000. 12. Howlongdoyoukeepyourcar?Howdidyougoaboutgettingridofit?Wasitjunk,didyou sellit,didyoutradeitinwhenyougotanewcar? Participant1IstillhavethefirstcarIeverboughtnew,Iboughtanew1973.Itisstillinmy garage.Soithas300,000milesonit.SoIdontnormallygetridofcars.ThecarIgot previouslytothisone,Isolditwith210,000miles.Ihaditforabouttenyears.Ibought itused.AndIwillkeepthisoneforatleasttenyears.UhnormallyifitisaGermancarI willgoforatleast200,000milesbeforeIsellthem.AndIdosellthem,atthatpoint. ButmyFiatIwillkeepforever.Itwontbesold.
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Participant#2UmpreviouslyIhadboughtalotofcrappy,usedcars,soitwasprobably underthreeyears,butIdidtradeinmycarwiththispurchaseandwhenIboughtmy ChevyAveoIalsotradedinthecarIhad.Andprevioustothat,Ijustdrovethemuntil theydiedcompletelyandthenjustgavethemawayforparts. Participant#3IwouldsayIkeepcarsforaveragefivetosevenyears.Wevesold,wehad priorto,youknowwevesoldacaronourown,wehavetradedin,andwehavedone kindofeverything.Butumthislastone,theSubaru,wetradedinfortheMazda. Participant#4Ikindofusedtokeepthemuntiltheywentintotheground.Umm,butitis kindofmyidea,Ibasically,Idontlooktoupgrademycar,unlessIabsolutelyhaveto becauseoftheterrain.Iamnotreallyinitforstatusoranything.Ijustneedtomove. Participant#5Weusedtohavea,itsanAmericanmade,vansthatIdidntwanttogo over100,000,soit,wewantedthemlonger,butwehadbeenburnedonitonce,sowe avoidedthat.WhenwegottheHonda,weintendedtobeabletogoquiteaways,anda yearagotheamountofmileswehadputonthecarandtheincentivesthattheywere offeringforbuyinganewcarbasicallywecouldlowerourpaymentandgetanewcar thatwassixyearsnewer.Itwasntaclunker,butwedidtradeitin.Andtherewasnt anythingwrongwithitpersay,itwasgettingupinmiles.Butitwasmoredrivenbythe stateoftheeconomyandtryingtohelptheeconomybymakingapurchaseandit workedforusbecauseaslongaswecouldkeepourpaymentthesamewewerewilling todoitandIthinkitactuallysavedusafewdollars. Participant#3Idontknowifyouaregoingtoaskthis,butIwouldsayto,itisahard questioncircumstantiallywhywehavekeptourcars.Iwouldhavekept,wehavemoved everycarbecausewehadonekidandthenwehadtwokids.Sosafetybecameafactor, spacebecameafactor,soIthinkitisjustcircumstances.Youknow?Theideawiththis newoneaccordingtomyhusbandisthatwearestayinginitforalongtime.So,butI think,asourliveshavechanged,Ialsousedtoliveandworkresidentially,soInever neededacar.AndthenIgotanewjobwhereIhadtocommute.Soithasalwaysbeen circumstantialforus,gettinganeworchangingacar. 13. Whatfactorsgointomakingadecisiontobuyacar,hybridornot? g. Howdidtheinteriorsize/comfortfactoraffectyourdecision? h. Howdoesoutputperformance(acceleration)affectyourdecision? i. Howdoesyourlifestyle/geographiclocationaffectyourdecision? iii. Forinstance,doyouneedatruckfortowingpurposes,4WDforwinterreasons? Participant#3Thenumberoneforusissafety,sincethiswasthecarthatIwasgoingtobe drivingwithbothofourchildren.Sosafetywasnumberone,withoutquestion,sizeand
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abilitytotransportstrollersandpackandplaysandtheamountofstuffthattwo childrenunderfourrequire.Weneededtrunkspace.Soforthisonewithtwocarseats andIhaveparentsthatarelocalsoweareoftentravelingwiththem.Thatiswhy findingathirdrowwasalsowewouldnthaveboughtanewcarwithoutathirdrow. Sowewantedtobeabletohavethecarseatsandotherpeoplecomeinthecar,have megetinthebackseatwiththekidssoitwasallaboutfunctionalitywithbeinga parentwithchildrensosafety,functionality,andthenfromthereprobablywentprice, tostyle,andwhatfactorsinformehonestlywasthepeopleatthecarplace.Iwont buyacarfromsomeonewhoIthinkisajerk.ThereweresomeplacesthatIruledout becauseIdidntliketheirattitude.IwaslikeIdontneedtogiveyoumymoney,andI left.Thatiswaydownonthelistbecausethereisalwaysamilliondealersand dealershipsifyoudontlikethepeople.ThatiswhatIwouldsayforme. Participant1Whenitcamedowntoour.thereasonswhyweboughtanothercaris becausemy220,000milepreviousAudiitwastimetosellit.220,000milesismylimit not100,000.Althoughseriouslynowwehavefourcars.Thelowestmileageoneof anyofthemis110,000.ThatiswhatmyS8has.Ihavewith300andonewith200,and onewith120,andmywifesAudihas120,000.Butatanyrate,whenitcamedownto mypurchase,itwasbetweenthreecarsandIamvery,veryparticularaboutwhatIget. YouknowImanengineer,anautomotiveengineer,andIgottahavetherightstuffand soitwaseithergonnabeanexotic,affordablecarwhichistheAudiS8,whichis incrediblyexotic.Itwasappealingtomebecausethereareonly100ofthemmadethat werethatcolor.300altogetherandithadtheperformancethatIwaslookingfor,butI wasalsointriguedbysmallcomediccarssoIcameclosetosomeothers.Thesecondcar inconsiderationwasthesuperchargedcooperthelittleminicooperbecauseIhadone ofthosetherealonewhenIwasincollege,andthethirdagainwasthefouryear Accordv6hybrid,andtheywereallaboutthesamepriceandtheusedpricerangethatI amdoingit.Theanswercamedownto.mywifesaidyourenotbuyingthemini becauseweneededafullsizecarandwecannothavetwosmallcars,andsoultimatelyI saidohyeahbecauseIwantedtobuytheS8.AndsoIthinkthattheperformanceand exoticnatureofacarreallyappealtomeandbutoneofthetripsformywifewasthat wewantedsomethingthatwouldbecomfortableforpeopletotravelandobviouslyyou cantinhertwoseaterormy300,000Fiat,ourToyotaappliancethatwekeep. Participant#2Previoustothiscar,Ijustboughtcarstogetmefromoneplacetoanother andbutIspentmostofmylifelivingatthebottomofahillsoIcouldnotdriveupitin thesnow,soIwantedafourwheeldrivecar.Imostlyboughtthisonebecausemy brotherdidalloftheresearch.HetoldmethatthatsthecaretobuyandIdidactually leaveadealershipbecausetheywereajerkanddroveallofthewaytoWellesleyand
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HybridCarsIQP

paid$2000.00andtheywerethenicestpeoplethatIevermet.andsoIcouldaffordit finallyforthefirsttimeinmylife. Participant#4IthinkthefactorstobehonestIlookrightattheprice,tostartoffwith, becauseIknowmybudget,soIeliminatemorecarsthenItrytoresearch.Livingin WorcesterandNewEnglandIvecometotherationalizationthatImjusttiredofbeing thebestmaneuverofatwowheeldrivecarinthesnowandhills.SoIdoneedthat flexibility.AndthenIprefertodriveastandard.OnlybecauseitjustfeelslikeIam actuallydriving,anditsavesgas.butunfortunatelymyexwifeatthetimecouldntI waslikeavaletparkerIwouldmoveitbecauseshedidntknowhowtodriveitsooneof mymotivationswastogetanautomaticsowhoeverhadthecarthatIwasbehindcould justtakeitandleaveandgotowork.Butthatswhatitcomesdownto.AndIamnot oneofthosepeoplethatgoesintoadealershipandislookingtobarterIwanttogoin andoutwithin2hoursandleave. Participant#5Againhillwiseweneededafourwheeldrive,thatwasessential.SizewiseI wouldhavepreferredsomethingsmallerbutIhadasmallSaturnthatIusedfor commutingsowecouldntgetasecondsmallcarweneededsomethinglargertobe abletohaulthekidsandtheirfriendsandallthataroundandthenbeabletofillitupto getkidsmovedtocollegetrytodoitinonetrip.Andthenthepriceandalsospenta lotoftimewithconsumerreportsgoingthroughcheckingtherepairhistoriesandthe reliabilityandallthatthedifferentmodels. 14. Wasthereanythingabouthybridsthatmayhavehadacriticalinfluenceonyoudecision making?Ifyouwereatonepointlookingatahybridwasthereanythingthatcritically influencedyourdecisiontonotgetone? Participant1Ihaveaproblemtheoreticallywithhybridsandthattheresearchshowsof courseitsjustastopgapmeasure.Therealreasonforbuyingthemwouldbethetax incentivesandafewthingslikethisbecausewhenitgetsrightdowntoitthetechnology isnotthewayweshouldbeencouragingpeoplerightnowactually.Ontheotherhand thetaxadvantagesmakeitsignificantandsoIwouldmuchratherbuysomething whichisalongertermlookatfueleconomycertainlytherearealotbetteroptions thanhybrids,hybridsarejustastopgapsoImnottooexcitedaboutthemunlessthey happentoperformwellandhappentogivethetaxincentivestomakethempayoff beforeyouendupthrowingitaway. Participant#2IdidaprojectinagradclasswhereIalwaysthoughtgreatthingsabout hybridsandthenyourealizeliketheyneverreallypayoffIthelongrunsootherthan
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HybridCarsIQP

thefeelgoodnatureofitwhichinthatcaseIwouldjustmovecloseranddriveitless, whichhasasimilarthing.AndthenwhenIwanttoandneedtodriveinthesnowI getIcangetwhereeverIwantso Participant#3YeahasIsaidIoriginallywantedtheToyotahighlanderhybridthatwasmy initialthoughtbutumA.)Itendedupbeingtoosmallinthemiddlerow,Icouldntfit myselfandtwocarseatsandthenreallyitjustcamedowntoprice.Andthatthere wasntreallyanotheroptioninahybridthatfitourneedsandthecostwasreallythe mainthing,wewerejustitwasjusttoopricedoutforusandaswetalkedaboutit,it wouldhavetakenustoolongtomakethatdifferenceback. Participant#4Um,Ineverreallylookedatthem.IguesstobekindofvainIthoughtthey lookedlikegolfcarts.NotthatIcarethatmuchaboutit.ButIgottoadmititlooked flimsy,Illputitthatway,itdidntlooksafeIguessyoucouldsay.Buttheotherthingis, isthatImallproenvironmentbuttomeitkindoffeltlikeIcouldjustgetacarthat doeswellongasandImhelpingtheenvironmentthenhavingtousesomething elsesospendinglessdrivinglessconservinggasiskindofthesameandlikeshejust saiditwasoutofmypricerangebeyondthat Participant#5Prettymuchpricerange.Wewouldhavebeenpreparedtobuythehybrid highlanderbutjustweknewwewantedthehighlanderwecouldntaffordthehybrid. Participant1IfyoulookatthehighlanderespeciallytheLexusSUVhybridallthestudies showthatisa200,000milebreakpointforcost.InfactIthinkontheLexusthe 478younevercomeoutaheadonitsotheresalittlehype. AlyssaAndmylastquestionisdoesthereputationofthecarsmanufacturingcompanyaffect yourdecision?LikeifitsforeignorAmerican? Participant1Idefinitelydontmind.Theadthatmostautomotivemakerswillspoutonisyou buyAmericanifyouwantthebiggestandbestvalue,youbuyJapaneseifyouwant somethingwhichistheautomobileappliance,yougothere,youpushabuttonanditgoes, pushabuttonitstops.ThenyoubuyGermancarsifyoureanengineerbecausetheGerman carshaveacertainengineeringexoticnaturethatappealstomeandsoIllalmostbuyacar inspiteofthefactthatitsimportantanditdoesntratewellbecauseIdontseeeyetoeye onsomeofthefeaturesthatareimportantsoIthinkIdobasereputationquiteabitabout carsandifyoucanaffordsomethingwhichmeetsyourstandardsthenIguessIwouldsayI influencedit AlyssaIboughtaToyotabecauseIheardtheylastalongtimeandIdidbuyitonthedaythey stoppedsellingroundfoursaswellso,minewasmadeinJapan,itsallgood.Ihada
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HybridCarsIQP

VolkswagenbeforewhichlastedforeverandthenIownedaChevywhichwasonly3years oldanditsucked.IputmoremoneyintoitthenIeverpaidIdefinitelyhaveabadviewof Americancarsafterdrivingthem. Participant#3Welookedat,um,wenarroweditdownastheMazdaCX9andtheChevy TraverseandtheGMCArcadia,thatswhatwenarroweditdownto,andweweredefinitely influencedbythefactthatMazda,wewerehappywiththatcompanyandweheardgood things.TheproblemsthatthecompanieswerehavinglikelookingatGMCandlookingat Chevy,itdefinitelygaveussomepauseandwithallthingsmadeequalitmaynothave matteredbuttherewereabunchoflittlefactorsandthatdefinitelyswayedusalittlebit. Wehadheardgoodthings.MyfatherisaMazdaguy.WereaMazdafamilysowevehad goodluckwiththem,weveallenjoyedthemandweveheardsomethingsgoingintoa GMCorgoingintoaChevy.Whenyoumentionittosomepeopletheygiveyoua(insert negativesound)butwhenyougotoaMazdapeoplegoohIlovemyMazdaweveheard goodthingsandarehappywiththecompanyandso Participant#5MyfatherwasaDodgeandChryslerguyallthewaythrough,andsowasI.I guessItriedtolivethe,supportAmericancarbutIvecometofindouttheHondaengineis madeinKentuckysoIreallywasnttooinfluencedtoomuchbutIguessitwasjustby wordofmouth,thepeoplethatIsawthatownedHondashadthemforaverylongtimeand seemedtohavenoproblemswiththemso Participant1ThelastChryslerproductthatwehadwhichwastheminivanwasmadein CanadaandhadaJapaneseengine,soitsaverygoodcar. Participant#4WehadaHondaandwouldhavepreferredtohavegonewiththeHondaSUV butitdidnthave4wheeldriveandpriortothatallourvanshadbeenAmerican,andour previousnewcarshadbeenAmerican.WejusthadausedHondaAccordseveralyears back,butthiswasourfirstToyotaandbetweenitsratingsandallthatwefeltcomfortable.I dontknowhowIfeelaboutToyotanowbut Participant1Youshouldntworryaboutthat.Theyllberightontopagain. AlyssaHi,ImAlyssa. Participant#6Im(Saysname)sorryImlate. Alyssawouldyouliketotellusaboutyourcar? Participant#6Yeah.InJanuaryIboughtaHyundai2008.Itcameoffofalease.MywifeandI haveapopuptenttrailerandIwouldhavelovedtogetahybridbutyoucantgetahybrid thatwilltowatrailer,andthistrailerisnotaheavytrailer,itsabout1500poundswithout
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HybridCarsIQP

anyloadinit.IcouldhavegottenaSubaruIthinkitsanoutbackwitha6cylinderengine butittakespremiumgas.Ibookedonconsumerreports,IlookedonEdmunds,Ialsoread commentsonpeoplewhoboughtHyundaisandIfoundoutthattheywerebuiltin Alabamaandthatmademefeelbetteraboutit.WehadaFordstationwagonfor8years andhadabout137000milesonitanditwasstartingto,everyothermonthIwasgoinginto thegaragewithitbutupuntil100,000milesonithadbeenagreatcarandIwasvery interestedintheFordFusionbutagain,4cylindersothiscaris6cylinderanditalsogets verygoodgasmileage,notsomuchinthecity.Itgetsabout18milestothegallon,buton thehighwayIactuallygetover30milestothegallon.ThequalityfromthatfromwhatIve readisthattheyrerightuptherewith,IwannahesitatetosayToyotabut,Toyotaand Hondaandsomeothercars.Themarkethasntquiterecognizedityetbutthepriceonthem isalittlebitlowerbutIthinknowthatwiththeproblemsthatToyotaarehavingpeopleare actuallylookingattheseHyundaisbecausetheirqualityisverygoodandIvebeensatisfied withthem.AgainIwouldlovetobeabletobuyahybridcarifweweregoingtobuyanother carthatwewerentgoingtotowIprobablywouldhavegottena4cylinderandahybrid. NotetheonequestionIhaventthoughtofiswhattotowwithaToyotaPrius,ifyoubuyit used,whatthelifecyclegoingtolike.Thebatterythatyouhavethere.AndIthinkinthe nextcoupleofyears,thattechnologyisgonnachangequiteabit.IwashopingIcouldwait anothercoupleofyearstobuyacarbut,itsjustthiscarwasnotgonnaholdoutforme. AlyssaDoyoudoalotofdriving? Participant#6Notreallyalot,butenoughthat,youknowIdrivebackandforthfromwork,its about8to10milesorsobutImdrivingaroundthestateordowntoConnecticuttovisit relativesandthenwhenwegoonvacationweusuallydriveso MikeHowmuchtoyouputonformileageperyear? Participant#6about15000orso. AlyssaDidyoutradeinyourlastcartogetthiscar? Participant#6NoIgaveittomyson. MikeThatbroughtupaninterestingthing.Whatdoyourcarstakeforgas?Iknowthatmy WRXtakespremium.Ihavetoadd9193init,foroctane. Participant193 AlyssaRegular.Whatever,Imcheep. Participant#5Regular
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HybridCarsIQP

Participant#2Regular Participant#4Regular MikeYouandItakethehit. Participant1Idontdrivemuch. MikeIthinkthatsallwehave.Anythingelseinterestingfactsorfiguresabouthybridsthat anyonehas?Concernsorissues? Participant1:Ithinkthatthewhole,oncewegotopluginhybridstheequationdoeschangea bit.Becausewhenwedonthavetoputgasolinetochargethebatterythroughthe inefficientreciprocatingengineandthroughinefficientgeneratorsandinefficient transmissionswhenyoureactuallyabletousethecentralgridtochargeyourbatteries thenitbecomesmuchmoreattractive.Butagainhybridsbytheirnature,arenevergoing tobeasefficientasapurelydirectmotivatorwhetheritbeahightechdieselorpure batteries,soIjustitbothersmewhenIpersonallypeoplepromotinghybridsasifthey werethelastbitwhenitsjustastopgatetechnology.Stopgaptechnology. AlyssaIwouldagreewithwhatParticipant#1saidthatIthinktheresalotofhype,and everyonesfeelingthisneedandthispressuretodosomethingbutwhenyoureallylookintoit, itdoesntseemtohavetheresultsthatIthinkyouwereexpecting.Likeyouthink,wellIm gonnagetahybrid,likethatwasmyinitialthoughtandthenIlookedintoitandIdidthe researchandlookedateverythingwellitsnotquitethereyet,Iagree.So Participant1Itsfunny,oneofthereasonswhyHondasaidwhytheywereunsuccessfuland droppedtheAccordHybridwasbecauseitdidntlookhybridenough.Itlookedjustexactly likearegularHondaAccord,infacteventheindustrypaneljusthadoneadditionalextra gauge.Andyetcaranddriverwouldsayitstheonlyhybridtheywouldeverrecommend becauseitdidgetremarkablegasat38milespergallononthehighwayand30milesper gallonintown,andyetitsthefastestHondaeversold,fasterthantheS2000becauseithad a240horsepowerV6plusaboutanother130horsepowerhybridandsoitwasfasterthan myS8,060mph. AlyssaButthenweretheyjustnotselling? Participant1Nope.Theydroppedafter23years. AlyssaCauseIdidntevenknowtheymadeone. Participant1ItwasalsotheworstlookingHondaaccordforalongtime.Itdidntimproveby doingthat.Anditsfunnybecausealotpeoplebuyhybridsbecausetheylooklikegolfcarts.
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HybridCarsIQP

Itisproventhatthereisacertainnichethatlikestobuysomethingthatlooksthepartand thentherestheseotherpeoplethatsayahhmakeitlooklikeanormalcarandmaybeIll buyitbutthosepeoplearentbuyingthem.BecausetheToyotaCamerylookslikearegular carandmostoftheLexushybridslookjustlikeregularcarsandtheyrenotsellinglikehot cakes. Participant#6ButthePrius Participant1ThePriusandthenewHondainsight Participant#6ThePriushasadefinitelook Participant1Right. Participant#6Andpeoplecanrecognizeitfromwayoffinthedistance Participant#4MylasttwocentsitbecametoomuchofastatussymbolofheyImdoingmy part,Ihaveahybridstickerintheback.Great,yougetaparkingspace,andyougetatax reduction,whataboutme?Icantaffordit.Congratulations.And,Icometofindoutthatthey cansitoutsidewiththeircarrunning,IturnmineoffandImdoingmypartso Participant1ThenewSubaruhasgotapartiallyzeroemissionvehiclewhichisahybrid.They simplyhaveabiggerbatteryandabiggerstarterandtheyshutofftheengineeverytime youcometostartsothereforeitqualifiesforthepartialzeroemissionsaselectricbackup fortheairconditioner,allthiskindofstuff,butitsnotahybridandsothereslotsofways youknowandtheproblemwith,asweallknowtheproblemwiththrottledengines,gas enginesisthattheyrejustwoefullyinefficientatpartialthrottle,andthatsthereasonwhy hybridsaresomuchbetterintowncausetheyshuttheengineoff.Butadieselis remarkablyefficientidly.Remarkably.Thehighperformance8seriesAudiswiththediesel 310horsepowerturbodieselsget40milespergalloninacarthatdoes170180milesper hour.ButtheyrenotlegaltosellinAmericayet.Thatparticulardieselengine. Participant#6IhadaVolkswagendieselduring1980Ithinkitwas,andIhaditforIboughtit brandnewandIhaditfor110,000miles,butinthewinter,ifitwasreallycoldyouhadtoplug itindidtheysolvethatkindofproblemor Participant1No,butyoushouldunderstandthatitsabattery,inthemselvesarewaydownin productioninthecoldbythetube.YouaskedourassociatewhohasaPriuswhatgas mileagehegetsinthewintertimeanditsnotanybetterthanaToyotaCorollas.Yeahits like38milespergallon.Thatswhatitgetsinthewintertime.And38maybe40isgood becausebatterycapacitygoesdownasafactoroftemperatureaswellandthenofcourse youhavetoheatupthefluidsfortheheaterandkeeptheenginerunningalmostallthe
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timeanyway,andsohybridsgetmuchlessgasmileageinwintertimethentheydoduring summertime. Participant#3SeeIdontthinktheaveragepersonwouldeverknowthat. Participant1Yeah. Participant#3ThatswhytheycometoWPIandtalktopeoplehere.ButlikeIwouldnever knowthatexceptforyoujustsaidthat,Iwouldneverhavethoughtofthat Participant1Butallofourgasmileagegoesdownduringwintertimetoocausethey reconfigurethefuel,andmostpeopleandregularcarsget510%lessgasmileagetoocause theyputtheethanolandstuffinthere.Whichis,youknow,reconfiguresthefueltothe pointwhereyoudontgetthesame Participant#3AndnowwhatwouldyousaytomethatformyIQPthatformethe environmentandtheeffectonitdefinitelymattersandthatiftheygettosomethingthatIm thinkingabout,especiallywithchildrenandtheirfuture,butitsnot,andmaybeitsselfishof me,notaffordableyetbecauseatthesametimeIhavetofeedandclotheandeducatemy childrensoIthinkthatiftechnologyislookingwheretogoandwantstoappealtopeople,it needstobeatapointwhereitscosteffectiveinthattheaveragepersonwhosgonnauseit canafforditandthatitsworthitandthatIthinkitdoesmakeadifferencethatIdowantto youknowhelptheenvironmentwheneverIcanyouknowaslongasitmakessomesenseandI dontthinkitsquitethereyetgivenalltheotherfactors.Hopefullysomeday. Participant1Yeah.Imeanwithallthingsbeingequal,youwouldtakeacarthatwasmore environmentallyfriendly,thatstheeconomicdecisionforalotoffolkswhichiswhatitis, andyoumentionedsafetyaswellwhichisinterestingaswellbecausethe8seriesAudiwas thefirstcarinAmericatosellwith5starprotectioninallquadrants,butitwasvery,very unaffordable,andsoIcantellmyselfaboutthiscarthatitwasverysafe.ThatswhyI boughtit. Participant#5Iwasdiscouraged,becauseIreallywantedahybridbutthenumberswouldnt work,theupfrontcostandthepaybackandIreallywanteditbutitsjust Participant1Andifyouthinkcarefullyonitfromtheengineeringdetailsitsgottobemore expensive,youknowinfacttheargumentwasthatToyotawaslosingmoneyonPriusfor quitesometime.Andeventhoughtheywerepricedaboveandsoifyoulookatthe technology,theresalotoftechnologyinittogetwhattheygotanditisexpensive technology,andsoiftheyweretosellitforthesamepricesthensomeonesacosterror herecausetheresnoreasonwhytheyshouldsellitforthesameprice.Youhaveanentirely
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nothersysteminthere.Andtheengineitselfisamuchmoreexpensiveenginetobuild thanaregularinternalcombustionengine.Itsnotevenrunningonautocycleitsrunning onamillercycle.Itsadifferentcycleanditrequiresdifferentvalvemanipulationandlotsof thingssoitsexpensiveandengine,letalonebatteries,chargersandelectroniccontrollers. MikeAndthematerialsthatgointothemallowthehybridtopulloutmorealuminumand copperandstuffwhichiswaymoreexpensivetogetfromrawmaterialandtoproducethan youknowsteelandmostothericesandstuff Participant1Andoddthingisifyouweretotakeacar,ifyouweretotakeaPriusshell,usea Priuslowrollingresistancetires,useaPriushighefficiencyelectricpowersteeringandall theotherstuff,andyouputintheergonomicsofaPrius,andthenyouputinaninternal combustingenginewhichgivesyouthesameperformanceasthepeopleinhybridsare willingtotake,itwillexceedthegasmileageofthehybrid,butnooneiswillingtotakea12 second060time.Nooneiswillingtohaveacaryoucantpullatrailerwith.Noones willingtodothatunlesstheyhavethisfeelgoodthingaboutitbeingahybrid.Ifyouwere tosellacarwithaPriusperformancetotheAmericanpublicanditwasntahybrid,you couldntsellit.WhywouldIwantsomethingthatcouldntgetoutofitsownway?Andthe hybridsthatdoperformwelllikeagaintheToyotacruiserandthesetheLexus,the paybackdoesntworkout,becausetheyneedtohaveabigenoughenginetoprovidethe performanceyouwant.Andthenyourehaulingalltheextraweightinbatteriesandallthis otherstuffsoitdoesntmakesense.Thenumber1factorevertopredictthefueleconomy ofavehicleisitsweight.Notitsdriveline,notwhetheritsa4,6or8cylinderorevenifitsa hybrid,youlookatitsweightthatsthenumber1predictorforfueleconomy.Andwhen youstartputtingin500poundbatteries,yougottagowithaluminumchassis,yougottago withsuperlightweightwheels,yougottagowithallthesesortsofthings. MikeAndthenitllcostmoretomakeandmanufactureandgettherawmaterials Participant1Aluminumis,wetalkedaboutthecarbonfootprintformakingaluminum, aluminumisreallyexpensivetomake,luckilyitsrecyclable.Aluminumisreallyeasyto recyclebutman,aluminumplantsiswhateatupallthepower.Ofcourse,mycaristotally aluminum. MikeItsalmostthreetimesasmuchassteelmanufacturing Participant1Butyoucanrecycleitwithverylittlecost,andthatsthegoodthingaboutit Participant#6Areyougonnashareyourresultswithus? AlyssaIthinkso.
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MikeIthinkafterwefinish. Participant#3WhatsyourIQP,likeyourejustlookingatthedifferencebetweenwhyone groupchosetobuyonevs.theother? MikeWellitsmoreof,aretheyuptothehype. Participant#3Oh. MikeSoweredoinganalyzinghowtheyremadeandtheprocessesfromstarttofinish. GettingridoftheNiCadbatteriesvs.otherbatteriesandhowmuchgoesintomanufacturing andthenalsotheconsumerside.Whatcausespeopletobuythem.Iftheyrejustlookingtoget oneforthehypeorforthisreasonorthat.Sothatwasthepurposeforthisareaofstudy. Participant#6Justtoreiteratewhatsomepeoplehavesaidis,Itrytobuycarsthatare comingoffofalease,Idontlikebuyingabrandnewcar.Andtheredefinitelyisacostfactorin termsoflookingatthesehybridsvs.youknow,anothercar.Igotalotmoremoneyintermsof anothercarthatIgotvs.whatIcouldhavegotteninahybrid.LikethisgentlemanwassayingI thinkthatthehybridiskindoflike,youknow,whatitsgoingtobe2yearsfromnow,that technologyisgonnabeverydifferentandImjustnotwillingtopayanextra5to7000dollars forahybrid. AlyssaThankyouguysverymuchforparticipating

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