Toyota's Hybrid Hypocrisy an Opportunity for Detroit

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Is Toyota leading the fuel efficiency revolution or impeding it? The answer: yes, and yes.

This week, the company earned points in the leadership column when it announced big plans to grow its wildly successful hybrid market. Toyota President Katsuaki Watanabe announced that his company will offer a hybrid model in each one of its vehicle series, with the overall goal of selling one million hybrids each year beginning in 2010. That's quite a boost, considering this: since the Prius entered the scene in 1997, Toyota has sold only 1.25 million of them in total.

It's a smart corporate strategy, formulated no doubt with an eye on political shifts in climate change policy that are bound to rock Washington -- and the auto industry -- post-Bush. Pressure will not end with passage of the energy bill that mandates a 35 mpg fuel economy by 2020. Barack Obama's climate plan calls for boosting the standard to 55 mpg by 2025. Hillary Clinton boasts a similar goal. And California and more than a dozen states are not done fighting the EPA for a waiver that would allow them to impose more stringent tailpipe standards immediately.

But while Toyota is paving the road forward for a clean energy revolution in the car industry with technological ease, behind the scenes it's been joining the Detroit Three in court battles and in the halls of Congress to stop progress -- including the new CAFE standard. When President Bush signed the energy bill in December with the 35 mpg standard, Toyota gave in, hypocritically lauding the measure it had opposed.

The hypocrisy now continues on another front. Toyota has been stalling on bringing the first mass-market generation of electric cars -- the plug-in Prius -- to market. It announced in November that the company's holding out for another three years, at least.

Too bad. If they cooperated, Toyota could take their hybrid fleet to 80-100 mpg and blow the market wide open instead of spending tens of millions to mask their actions with greenwashing campaigns.

In the end, this could spell good news for Detroit if they choose to seize the day. GM claims it already has with its plug-in Chevy Volt.

While Toyota has dismissed the Volt concept as "completely wacky," Bob Lutz, GM's vice-chairman for product development, said in November its viability will be proven by Easter '08 and dished out some fighting words to boot. Watch out Toyota:

Let's wait for the Easter Bunny. Somebody's going to have egg on their face. And I don't like having egg on my face.


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