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LINCOLN MKZ HYBRID

Automakers Remain Bullish on Hybrid Electric Vehicles

December 24, 2015 by admin 1 Comment

2016 Hyundai Sonata Hybrid
2016 Hyundai Sonata Hybrid.

Mention “hybrid” vehicle to most people and the Toyota Prius comes to mind. That’s expected as the Prius family is by far the most dominant hybrid electric vehicles on the market. Furthermore, Toyota is the chief manufacturer, building twice as many hybrids as the industry combined.

Despite all the attention given to hybrids, these vehicles account for just under 3 percent of all cars on the road today. That’s not an especially tenable market for a vehicle segment touting all things sustainable. And with gas prices currently averaging $2 per gallon, the market for gas-electric hybrids remains especially weak.

Car manufacturers aren’t giving up on the segment and for good reason: automakers must reach progressively higher corporate average fuel economy (CAFE) or fleet averages each model year. By 2025, that average rises to 54.5 mpg, a number that will only be accomplished through much greater adoption of alternative fuel vehicles, including hybrids, pure electric cars, and fuel cell vehicles.

2015 Toyota Camry Hybrid.

2015 Toyota Camry Hybrid.

Hybrid adoption isn’t without its challenges, however. The following are valid concerns expressed by potential consumers and adopters alike:

First, such models are usually more expensive than conventional vehicles, costing consumers 10 to 20 percent more than equivalent models. A greater payout up front can inhibit sales. Further, recouping the added cost becomes especially difficult when gas prices are low.

Second, fuel economy doesn’t always match real world numbers. Achieving 50 mpg with some hybrids is possible, such as with the Honda Accord Hybrid, but that’s only when weather conditions are favorable. In extreme conditions, such as during the winter, fuel economy numbers will drop. Hybrids are most efficient during mild weather, but not when it is hot.

Third, battery degradation is a big concern. Whether you’re looking at purchasing a hybrid or an electric vehicle, the battery packs that supply power to the electric motors gradually degrades notes HybridCars.com. Manufacturers help allay such fears by providing extended warranties for the pack and related components, starting at eight years or 100,000 miles, whichever comes first. If the battery fails after the warranty expires, a replacement will run in the thousands of dollars. That’s not a cost many consumers are willing to absorb.

Ford Fusion Energi

Ford Fusion Energi — a plug-in hybrid electric vehicle.

Lithium-Ion Batteries

Fortunately, manufacturers have been devising ways to make hybrid vehicles not just more efficient, but longer lasting. Extending vehicle range, critical for electric vehicles, will have a positive spillover effect on hybrid vehicles which utilize smaller battery packs. Manufacturers are achieving greater efficiencies as follows:

One, by going with efficient lithium-ion (li-ion) batteries instead of traditional nickel-metal-hydride batteries. Li-ion batteries provide longer range and offer a faster recharge for plug-in hybrid electric vehicles.

Two, new capacitors are under development. Making battery packs denser and better able to distribute the electrical flow are among the breakthroughs scientists are working on. MIT is testing such batteries and the research is encouraging. Researchers may develop not just a more efficient battery, but one with recharge times paralleling the refuel time of conventional vehicles. Other organizations and universities working diligently to find solutions include the Lawrence Berkeley National Laboratory in California, Michigan Technical University, and Stanford University.

Cadillac ELR

The Cadillac ELR is a plug-in hybrid electric vehicle.

Car Manufacturers and Hybrids

Manufacturers are working on a number of ways to make hybrids more palpable to consumers, typically by placing them in high-end models, but mostly as a power boost, and not so much for fuel savings.

Indeed, the Porsche 918 Spyder was one such model, powered by a 4.6-liter, V-8 engine along with a pair of synchronous electric motors mounted on each axle. This hyper gas-electric hybrid makes a combined 875 horsepower and 944 foot-pounds of torque, for a vehicle that can be operated in front, rear, or all-wheel drive modes.

Another super car, the Acura NSX, is also a hybrid. This all-wheel-drive model is powered by a mid-mounted twin turbo V-6 gasoline engine and comes with a 9-speed dual-clutch automatic transmission and three electric motors. Combined, the NSX makes 573 horsepower with an output of more than 500 foot-pounds of torque.

Of course, most consumers do not have the discretionary income to afford either model. With a price tag starting at $156,000 and eclipsing $200,000 with every option taken, the NSX amplifies high price and scarcity.

Toyota Prius

The best-selling hybrid in the world is the Toyota Prius.

Making Hybrids Affordable

Coming closer to earth — that would be “purchase attainability” for the rest of us — hybrid adoption will remain low as long as prices are high. Lincoln is currently the only brand selling its base gasoline and hybrid models for the same price ($35,190), effectively absorbing the added cost of the electrified powertrain. That effort has led to more than one in five MKZ models selling as hybrids, well above the take rate for models offering gasoline and hybrid choices.

The Ford Motor Company may be more willing to absorb the cost of a hybrid in a higher profit model, such as the Lincoln MKZ, but like other manufacturers offering a no-cost option in mainstream models may not be a viable solution. Still, to further consumer adoption, lowering the cost of hybrid systems is critical to helping manufacturers reach their goals.

Fall short and steep penalties from the federal government will ensue. Thus, finding a way to cut costs while spreading hybrid usage across more model lines is a must. Technological advancements may ultimately close the gap, building a solid case for hybridization across the industry.


See Also —  Buick Sets Sales Record Again

Filed Under: Automotive News Tagged With: CADILLAC ELR, Ford Fusion Energi, HYBRID CARS, HYUNDAI SONATA HYBRID, LINCOLN MKZ HYBRID, LITHIUM-ION BATTERIES, PHEV, TOYOTA CAMRY HYBRID, Toyota Prius

Ford Lowers MPG Rating for 6 Models, Compensates Owners

June 16, 2014 by admin 4 Comments

New MPG ratings announced.

If you do not think that the auto industry is responsive to customer feedback, think again. Last week, the Ford Motor Company announced that it had lowered the fuel economy ratings for select 2013 and 2014 model year vehicles. The move followed complaints from customers and a subsequent investigation by the Environmental Protection Agency.

Ford C-MAX Hybrid

Six Models Affected

The six affected models include hybrid, plug-in hybrid and one gasoline-powered model, the Ford Fiesta. In only one example was there no change in combined city and highway driving, yet for one vehicle the discrepancy came in at 8 mpg on the highway (Lincoln MKZ Hybrid).

The automaker said that through internal testing that it had identified an error that resulted in wrong data being submitted to the EPA. The EPA was notified and the automaker cooperated with the federal agency to issue new ratings.

“Ford is absolutely committed to delivering top fuel economy and accurate information,” said Alan Mulally, Ford president and CEO. “We apologize to our customers and will provide goodwill payments to affected owners. We also are taking steps to improve our processes and prevent issues like this from happening again.”

2013 Ford Fusion SE Hybrid

Goodwill Payments Forthcoming

Those goodwill payments will cover six models, but not for every vehicle. For example, the fuel economy ratings for the 2014 Ford Fiesta equipped with a 1.6-liter four-cylinder engine and paired with a manual transmission were unchanged. Thus, no payment will be made to those customers.

Ford will be sending checks ranging from $125 to as much as $1,050, depending on the model. The smaller amount is for people that leased a Ford Fiesta with a three-cylinder engine and the manual transmission. The larger payment goes to owners of the 2013 and 2014 Lincoln MKZ Hybrid. That hybrid suffered the most significant hit as its combined fuel economy dropped by 45 mpg to 38 mpg following new testing.

Other affected models include the Ford C-Max Hybrid, Ford Fusion Hybrid, the Ford C-Max Energi Hybrid and the Ford Fusion Energi. Ford’s Energi line denotes plug-in hybrid electric vehicles (PHEV) instead of standard hybrid.

2013 Lincoln MKZ Hybrid

Internal MPG Testing Conducted

The Ford Motor Company reviewed its entire line up of Ford brand and Lincoln brand vehicles besides the affected models. In a related press release, Ford noted that its testing involves a number of factors. The error was found with “the Total Road Load Horsepower or TRLHP. That represents the “vehicle­ specific resistance level used in vehicle dynamometer testing that determines fuel economy ratings.”

The company said that “TRLHP is established through engineering models that are validated through vehicle testing, including physical track tests referred to as coastdown testing.”

Ford insisted that using such engineering models is common in the industry and are also consistent with EPA regulations. The error was attributed to a process change which the company has since corrected.

The goodwill payments will cover the cost difference customers pay when filling up at the pump. The lease payments will come in for less as customers will keep those vehicles for a shorter period of time. For purchase customers the payment is based on approximately five years of ownership.

Auto Industry Reacts

Ford is not the only automaker forced to recalculate its fuel economy ratings. Hyundai and Kia had to make adjustments to fleet figures in 2013 when several models failed to meet its own fuel projections. Like Ford, the two Korean manufacturers also reimbursed vehicle owners.

Although Ford responded to customer complaints and an EPA investigation, a broader look at the industry reveals that all automakers have been on their toes these past few years.

Starting with Toyota’s massive recalls a few years back and extending through GM’s even larger recalls this year, automakers are quick to identify problems and offer resolutions. They have to too as covering up problems can lead to lawsuits, government fines and a customer base that may move on if they lose trust.


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Filed Under: Automotive News Tagged With: Ford C-MAX, FORD C-MAX ENERGI, FORD FIESTA, FORD FUSION ENERGI HYBRID, FORD FUSION HYBRID, LINCOLN MKZ HYBRID, MPG

Redemption: Lincoln MKZ is a Hit

April 9, 2014 by admin 1 Comment

Whether you love it or hate, the Lincoln MKZ is a sales hit for Ford’s luxury brand. One of five Lincoln models available, the MKZ is also the brands best seller with 9,218 units sold in the US through March 2014. That represents an increase of 145.3 percent year to date, lifting Lincoln sales by 35.9 percent for the year in a market that is up 5.7 percent through the first quarter.

Truly, the MKZ is a sales hit, bringing smiles to Lincoln dealers everywhere. Not since Mercury was killed off at the start of 2011 have dealers had much reason to be happy. At least with Mercury in the fold showroom traffic was steady, but with just five premium versions of Ford brand products remaining, Lincoln’s lease on life seemed like it would be a short one.

Lincoln MKZ

Lincoln’s revival is underway with the MKZ leading the charge. This summer, the MKC crossover joins the line, a compact sport utility vehicle priced from $33,100. Together, the two models should propel Lincoln sales. A rumored rear-wheel-drive sedan based on the platform underpinning the 2015 Ford Mustang may be announced later this year, but for now, Auto Trends will leave that talk in our speculative file.

So, why the appeal for the Lincoln MKZ? For several reasons including the following.

1. It has a competitive price point.

The sweet spot for upscale models is just under $40,000. Indeed, if customers can get the entire package for that price, they’re in.

With a starting price of $35,190, the Lincoln MKZ is positioned to take on a model that offers similar value: the Lexus ES350. The Lexus, like Lincoln with the Ford Fusion, has a step-down twin in the Toyota Avalon. Lexus learned long ago that a competitive price point is an excellent gateway to the brand.

2. A hybrid is available and is a no-charge upgrade.

Add $2,500 to $4,500 to get a hybrid model, right? Well, someone at Ford thought that it would be a great idea to offer a hybrid MKZ with no price premium. That means the same $35,190 starting price for the gas-powered model would apply to the MKZ Hybrid.

And the take rate for this hybrid is excellent as Lincoln recently doubled capacity to meet demand 60 percent of Lincoln MKZ models sold are gas-powered to 40 percent for the hybrid. You won’t find strong demand for a hybrid variant in any other model line.

3. Lincoln shoppers like the brand.

Brand loyalty? Yes, Lincoln has its followers including people once smitten with the retired Town Car. Those drivers, including livery owners, have the MKS (large sedan) and MKT (utility vehicle/wagon) to consider as well as the MKX, a crossover model that was Lincoln’s best seller before the MKZ sales surge took hold.

Certainly, a lot of Lincoln owners departed the make once brand neglect set in some are Lexus owners now. Many others, however, are still around and can be wooed back with stellar service, new designs, finely crafted interiors (i.e., Black Label), and advanced technologies. Oh, yes, a new Navigator debuts later this year too.

4. Lincoln isn’t trying to be something that it is not.

A significant number of my journo colleagues are not happy with Lincoln as some have called on the Ford Motor Company to kill off the brand. While I understand their sentiments, they’re comparing Lincoln with BMW, Mercedes-Benz, and Cadillac, to name a few.

Ford’s Lincoln approach is different: they know that there is still strong interest in the brand (see point No. 3) and they don’t have to be something that they’re not. While Cadillac is positioned closer to the Europeans, Lincoln’s nearest competition is Acura, another premium brand with luxury aspirations.

Expect Lincoln to sell 40,000 units each of the MKZ and MKC with another 75,000 to 80,000 units of the other models combined perhaps as early as 2016. Selling 160,000 units would be double what they sold last year and hardly the reason to cancel a brand that isn’t trying to be something that it is not.

Thinking Lincoln MKZ

Clearly, the Ford Motor Company could have tossed Lincoln and succeeded. They’ve always has the option of tearing a page from the Hyundai playbook by selling a variety of standard and premium models under one brand, but have chosen to keep Lincoln around. And with China its next market, the brand once restricted to North America will soon spread out.

Even modest success will be hailed as an amazing feat for a brand whose best days were long ago, but whose future has brightened considerably. Redemption indeed.


See Also — Will Lincoln Toss Its Current Naming Convention?

Lincoln MKZ photos courtesy of the Lincoln Motor Company.

Filed Under: New Models Tagged With: 2014 MODELS, Ford, LINCOLN MKC, LINCOLN MKZ, LINCOLN MKZ HYBRID, LUXURY CARS

Ford Serves Up a Hybrid Mileage Fix

July 18, 2013 by admin Leave a Comment

The Ford Motor Company has five hybrid models on the market, four for the Ford brand and one for its Lincoln make. As a result of its recently expanded product offerings, its share of the hybrid segment has quadrupled within the past year, with the automaker managing to snatch shares away from market leader Toyota.

Ford C-MAX

Despite offering handsome models such as the Ford Fusion Hybrid, the company has been taking some heat for its mileage claims. Indeed, Ford says that the Fusion Hybrid is rated at 47 mpg, the Lincoln MKZ Hybrid at 45 mpg, and its Ford C-MAX is rated at 47 mpg, figures that the EPA initially endorsed, but has since said fails “…to comply with the appropriate testing procedures.”

Disputed Ford MPG Figures

Some consumers are also not buying Ford’s numbers and have called on Ford to adjust its figures. Ford’s hybrid mpg battles are reminiscent of the changes Hyundai and Kia have had to make to their respective figures, acknowledging that most 2012 and 2013 models also had inflated figures. Following EPA pressure, the Korean automakers issued an apology, established a pair of dedicated websites to field consumer complaints and outlined a process to provide reimbursement to affected owners.

Ford’s strategy is different from its Korean competitors as the company has not admitted wrong doing nor is it apologizing to consumers, at least not directly. Instead, the company outlined a strategy to help 2013 model year hybrid owners by offering free calibrations of the vehicle control systems in the Lincoln MKZ Hybrid, the Ford C-MAX and the Ford Fusion Hybrid. Plug-in versions of the C-Max and Fusion Hybrid are not affected.

Lincoln MKZ Hybrid

The 2013 Lincoln MKZ Hybrid.

 

Free Recalibrations Planned

Beginning in August, Ford will provide calibration updates to increase the maximum pure electric speed of the three hybrids from 62 mph to 85 mph. It will also optimize the use of active grille shutters in a bid to reduce aerodynamic drag under expanded driving conditions including cold weather, reduce the electric fan speed, shorten the engine warm up time by 50 percent and optimize the climate control system.

Noted Raj Nair, group vice president, Global Product Development, “Just as individual mileage can vary based on driving styles and environmental conditions, we expect fuel economy improvements will differ from customer to customer depending on individual driving habits. Customers should see the most improvement at highway speeds, during air conditioner use and operation in colder climates.”

Nair also noted that Ford is in the process of expanding its electrification engineering team by 50 percent and will invest an additional $50 million in electrified product development and testing at its Dearborn centers. The company has also pledged to step up hybrid and electric vehicle development by as much as 25 percent as it seeks to respond to increased consumer demand for its products.

Ford Fusion SE Hybrid

Pending Federal Court Lawsuit

Ford has not said that it will compensate affected owners nor has it announced plans to adjust its mileage claims. However, the automaker will have to defend itself in a Ford Hybrid class action lawsuit that will be heard at the Southern District of New York court.

As for owners of the three affected models, recall notices should be sent out in the coming weeks. You can also contact Ford directly at 800-392-3673 or by email at crcfmc@ford.com. Your car dealer’s service department may also have information and can schedule an upgrade as soon as a slot becomes available.

Future Hybrid Development

In related news, Ford continues to work with Toyota to develop hybrid electric systems to power fleets of large pickup trucks. Ford, along with another Toyota partner, Tesla Motors, have been working separately with the world’s largest producer of hybrid electric vehicles to supply next-generation systems. Hybrid Ford F-150 and Toyota Tundra models are the likely result of that cooperation with Tesla also tapping Toyota to supply hybrid systems for future models such as the Tesla X.


See Also — Energized by the 2017 Ford Fusion Energi

Photos courtesy of the Ford Motor Company.

Filed Under: Automotive News Tagged With: Ford C-MAX, FORD FUSION HYBRID, Ford Motor Company, LAWSUIT, LINCOLN MKZ HYBRID, MPG

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