Top: The Venturi Eclectic, shown at the 2006 Paris Motor Show, is charged by the 2.5 square meters of solar cells on its roof. A complete charge of the nickel metal hybrid batteries provides a range of about 30 miles.
Bottom: Mindset AG, a Swiss company, announced its plans in 2008 to produce an ultra-lightweight hybrid vehicle with roof-mounted solar panels. According to the company, the hybrid "Six50," features a roof equipped with solar panels that power the lithium ion batteries, providing around 60 miles of driving.

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The new 2010 Ford Fusion Hybrid—the first mid-size sedan to break the 40-mpg mark in city driving—could become the hit that Ford so desperately needs. Unfortunately, Ford is already claiming that it can’t get enough hybrid batteries to meet potential demand.

In an online chat with employees last week, Ford Americas President Mark Fields said, “We are constrained by the amount of components, including batteries, that the supply base can provide us."

Ford Americas President Mark Fields.

During the peak in gas prices in mid-2008, interested shoppers were unable to purchase Ford Escape Hybrids due to lack of inventory.

The Ford Fusion hybrid leapfrogged the Toyota Camry Hybrid to claim the fuel efficiency crown for full-size four-door sedans. The official EPA numbers for the Fusion Hybrid released last week—41 in the city and 36 on the highway—could give the Detroit automaker a much needed morale boost in the midst of the deepening economic crisis. Industry observers continue to question if Ford, and other carmakers producing hybrids in relatively low quantities, are making a profit on gas-electric vehicles. Nonetheless, these companies earn public relations points for producing vehicles with high mileage.

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Visual details of the 2010 Toyota Prius are revealed in a new video posted on YouTube. The video depicts Blue Man Group, the idiosyncratic trio of performers, exploring features of the redesigned quintessential hybrid.

Toyota will formally unveil the 2010 Toyota Prius at the 2009 Detroit Auto Show in mid-January. The new Prius goes on sale in April 2009.

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Hertz has launched Connect by Hertz, the first global car-sharing club offered by an international car rental company. The move puts pressure on Zipcar, currently the leader in self-service pay-as-you-go car rental services. After eight years in operation, Zipcar has yet to become profitable—despite building revenue to approximately $100 million. Zipcar recently bought Flexcar, previously its biggest rival.

Hertz will launch its car sharing service in New York, where it has an existing fleet of 40,000 rental vehicles—about seven or eight times as many as Zipcar offers. Hertz will also launch in Paris and London, where car sharing is more popular than in US cities.

The rental company will borrow a page out of Zipcar’s playbook by offering green and urban-oriented cars like the Toyota Prius and Mini Cooper. About two thirds of Zipcar's 250,000 members are under 35.

Hertz will provide stiff competition to Zipcar. Not only are all Hertz cars equipped with iPod-ready sound systems and navigation systems, the company beats Zipcar on price. After a customer has paid the $50 monthly fee, he or she can book a Prius for just $8.50 an hour or $59.50 a day, a Camry for $10.20 an hour or a Mini Cooper for $11.90 an hour. Those fees cover all expenses, including gas, insurance, and clean-up. Upon making a reservation, members receive an email confirmation as well as a text message indicating the reserved car's license plate and location. To unlock and engage the vehicle, members simply need to swipe their membership card over the car's radio-frequency identification reader.

Enterprise and U-Haul are also exploring short-term urban car sharing services.

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The world’s cheapest car could become the world’s cheapest hybrid.

Indian carmaker Tata Motors will offer a micro-hybrid version of the Nano—its ultra-affordable small car—according to a leading Indian business television channel. Micro-hybrid technology allows a vehicle to reduce fuel consumption and emissions by about 5 to 10 percent.

The report on CNBC-TV18 said that Bosch, a leading German engineering firm, will supply the micro-hybrid, also known as a stop-start system, which automatically turns off the car’s engine while the vehicle is not moving. Bosch already supplies fuel and braking systems to the Nano.

Tata Nano.

CNBC-TV18’s Sumantra Barooah said that the micro-hybrid technology would add 4,000 to 6,000 rupees to the Nano's cost—meaning an additional couple of hundred dollars. Barooah said, “It becomes a challenge to how much the engineers can control the cost of this technology.� With the micro-hybrid Nano, Tata will attempt to use the auto industry’s least expensive hybrid technology in the world’s least expensive car.

Micro-hybrids can be deployed at a much lower cost than full hybrid systems, and are therefore forecast to become widespread as countries adopt tighter standards for fuel economy and fuel emissions.

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Last Wednesday, President-elect Barack Obama announced former Iowa Governor Tom Vilsack as his choice to be the next Secretary of Agriculture. The appointment has fueled growing concern from ethanol critics, who worry that the Obama administration may expand subsidies to an industry that they feel has already received more than its fair share of generosity from Washington.

For years, ethanol has been touted by politicians and trade groups as the green fuel of the future, but many scientists and environmentalists see ethanol as a dead end. A recent study by Dutch Nobel prize winner Paul Crutzen found that the production of corn ethanol had a "net climate warming" effect compared to unblended gasoline. Using corn for fuel also drives up food prices, and according to the Food Policy Research Institute, recent ethanol mandates have caused corn prices to increase 29 percent, creating a significant strain on food supplies in developing countries.

Ethanol opponents have always held out hope that a President Obama would distance himself from allegiances to the ethanol lobby once the political pressures associated with winning an election subsided. But with the appointment of Vilsack, who was once named "Governor of the Year" by the Biotechnology Industry Organization, those hopes are beginning to fade.

Obama appoints Vilsack as Secretary of Agriculture.

$5 Billion Won't Necessarily Buy You Lower Emissions

Federal ethanol subsidies currently total $5 billion a year, and many states supplement that federal money with their funds. One such state is Iowa, where as Governor, Vilsack approved $50,000 tax credits to companies aiding in the expansion of E85 Ethanol fueling infrastructure under his $500 million "Grow Iowa Values" initiative. The fund also provided tax incentives for ethanol producers such Poet, which runs the second largest plant in the country. Poet recently received $80 million in federal money to expand the Emmetsburg, Iowa-based operation, increasing its production capacity four-fold.

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In the first few days of 2008, the price of oil passed $100 a barrel on its way to a high of $147—resulting in record prices at the pumps and a feverish demand for smaller fuel-efficient cars such as hybrids. The global downturn in the economy in the second half of the year simultaneously cut oil prices by $100, and sliced interest in hybrids and other energy-saving alternatives. Americans drove 100 billion fewer miles during the 12-month period between November 2007 and October 2008 compared with the previous year, according to the US Department of Transportation.

In a case of déjà vu, oil prices climbed 23 percent last week, the first few days of 2009.

While most forecasters expect oil to remain in the $50 to $60 range for 2009, the world’s oil supply is no less vulnerable—and perhaps even more susceptible—to geopolitical forces than it was before the financial meltdown. Last week’s upturn in oil prices were attributed to Israeli attacks in Gaza, a natural gas dispute between Russia and Ukraine, and OPEC’s announced production cuts.

Vulnerabilities are most prevalent in the world’s six major oil transit chokepoints—where the threat of terrorist attack, theft from pirates, political unrest, and shipping accidents post real dangers. More than 40 billion barrels of oil are shipped every day along these narrow channels. A single incident in one of these locations could immediately wake American consumers up from the current lull in prices—and disrupt a sense of complacency about the real costs of filling up our cars and trucks.

Strait of Hormuz

The Strait of Hormuz is by far the world’s most important chokepoint with an oil flow of 16 to 17 million barrels per day—roughly 20 percent of oil traded worldwide. At its narrowest point the Strait is 21 miles wide, and the shipping lanes consist of two-mile-wide channels. The majority of oil exported through the Strait of Hormuz travels to Asia, the United States and Western Europe. On average, 15 crude oil tankers pass through the Strait of Hormuz every day.

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