REAL NEWS - CAR OF THE FUTURE
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Common sense, politically incorrect newsletter to 11,665 subscribers)
WHAT WILL BE THE CAR OF THE FUTURE?
By Byron King, Editor "Outstanding Investments"
The hybrid engine isn't it. And the hydrogen car isn't, either.
The race is on to design the car of the future. Every player in
the industry is scrambling for the prize, and the winner will dominate
the world car market for decades.
The three big contenders are the hydrogen fuel cell, the electric
hybrid vehicle and the diesel. You're going to be surprised when I tell
you the most likely winner. Let's take a look at the three cars in this
race.
THE HYDROGEN FUEL CELL GETS THE MOST HYPE
Detroit put all its chips on fuel cell technology, and it's been
telling us since the late 1990s that a breakthrough was just around the
corner.
In 1997, German-owned DaimlerChrysler actually predicted 100,000
fuel cell engines on the road by 2005. In 2001, General Motors projected
about the same timeline.
Even George Bush got into the act, declaring in his 2003 State of
the Union message that "America can lead the world in developing clean,
hydrogen-powered automobiles."
IT DIDN'T HAPPEN AND IT PROBABLY WON'T
The short explanation for Detroit's failure is that the engineering
problems were bigger than it thought. On top of that, the fuel cell
engine costs 10 times as much as a conventional engine.
Worse yet, there's also the problem of building a national network
of fuel stations where you can fill the tank with hydrogen. Hydrogen
isn't found in nature in a usable form, and it's very expensive to
produce. A national hydrogen rollout could cost $100 billion.
There's still hope that hydrogen will come through in the end, but
the National Academy of Sciences believes the "hydrogen economy" is
decades away.
MEANWHILE, ELECTRIC HYBRIDS ROAR AHEAD
When Toyota announced a heavy investment in electric hybrids a few
years back, Detroit snickered. To Detroit, it just seemed like a halfway
solution on the way to the fuel cell car.
Wrong.
I don't need to tell you that the electric hybrid Prius is a
sensation, and Detroit is now rushing to play catch-up. It'll come out
with a number of hybrid models in the next few years, many of them using
technology licensed from Toyota.
What's more, the electric hybrid is not just an underpowered small
car. Toyota now offers a high-end SUV hybrid with better acceleration
than the standard model!
SO HYBRIDS ARE WHERE IT'S AT, RIGHT? WRONG AGAIN
The Prius has problems.
First off, the gas mileage on the Prius is not all it's cracked up
to be. Consumers have noticed, and some aren't happy.
What happened is that the EPA tests vehicles under ideal conditions
on a flat surface. In the real world, it looks like Prius' mileage is
not so hot. Also, most of the hybrid's big mileage gains occur in
stop-and-start city traffic. On an open road, the conventional engine
actually gets better gas mileage.
When you look at the Prius' true mileage, there are plenty of
conventional vehicles that do as well or better.
Add in the high extra cost of the hybrid engine, and some say you
have to drive the car a hundred thousand miles to recoup the extra money
you pay for the fancy technology.
There's a third alternative, a "sleeper" technology that's going to
surprise everyone.
AND THE WINNER IS . . .
The humble old diesel engine -- the third and final competitor for
car of the future.
How can that be? Diesels are loud, dirty and smelly. A pollution
nightmare.
You can hear a diesel truck from a mile away, see the soot from
halfway down the block and smell the exhaust as it rolls by.
Except -- surprise! -- those diesels you hear and smell are
antiques. Thanks to new technology, diesels aren't so dirty anymore, and
the gas mileage is better than ever!
Here's what happened: Europeans have to pay heavy gasoline taxes
and they worry about global warming, so they invested in the diesel
engine as a stopgap, just in case the hydrogen car hit a snag.
As you know, hydrogen DID hit a snag. Now the stopgap looks like
the winner in the great auto race.
You see, diesel gets about 30% more miles to the gallon than
gasoline, and those savings are real, in any kind of driving conditions.
What's more, people who worry about global warming prefer diesel because
it emits up to 20% less carbon dioxide. But wait, it gets even better.
DIESELS HAVE A HUGE, SURPRISE ADVANTAGE
Diesels now rival traditional gasoline engines for quiet, and
European refineries have removed most of the pollutants from the fuel.
The engines cost more, but the gas savings almost make up the difference.
A HYBRID DIESEL IS THE NEXT STEP
A combination of hybrid and diesel technology will take the fuel
savings up a notch. Make that two notches. And it will happen soon. An
MIT study predicts the diesel hybrid could outperform a hydrogen fuel
cell engine on both gasoline mileage and carbon emissions -- within 10
years.
Meanwhile, there's an even better product than the hardware under
the hood. Diesel's biggest edge is something you'd never expect.
YOU DON'T NEED CRUDE OIL TO MAKE DIESEL FUEL
You can make it from coal, plant matter or even cooking oil. (No
kidding! A restaurant can invest in a cooking oil converter kit that
lets you fry a batch of potatoes and later reuse the oil in your delivery
truck.)
Liquefied coal is one of the big technologies of the future no
matter what, whether the diesel engine wins or not. But if diesel wins
the auto race, coal will be the biggest thing since folks traded in their
horses for cars. King Crude may be dead, once and for all.
How bad does the world need these new technologies? REAL BAD.
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I'M MAD, AND I'M NOT GOING TO TAKE IT ANY MORE.
--------------------------------------------------------------------------------
With ACORN, La Raza, and Ohio Dem officials sitting on 20,000 suspect voter
registrations and other Dept heads releasing Joe the Plumber's confidential
information, this has been an incredibly, uncreditable election.
Hope you didn't waste your time and gas to stand in line at one of their
polling places hoping the electoral system isn't a fraud.
Rich Martin
--------------------------------------------------------------------------------
I'M MAD, AND I'M NOT GOING TO TAKE IT ANY MORE.
--------------------------------------------------------------------------------
With ACORN, La Raza, and Ohio Dem officials sitting on 20,000 suspect voter
registrations and other Dept heads releasing Joe the Plumber's confidential
information, this has been an incredibly, uncreditable election.
Hope you didn't waste your time and gas to stand in line at one of their
polling places hoping the electoral system isn't a fraud.
Rich Martin
--------------------------------------------------------------------------------
--
This is the incredibly uncreditable election. Rich Martin
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