Out of the blue a brain shows up
April 26, 2009, 1:46 am
An Alternate-Fuel Wild Card in Fiat’s Deck
By Nelson D. Schwartz
In Europe, Fiat is well-known for its mastery of diesel engines. In fact, one reason General Motors bought a 20 percent stake in Fiat’s auto division back in 2000 was to help expand the diesel offerings of its Opel unit. That partnership didn’t work out so well: G.M. paid Fiat $2 billion to extricate itself from the partnership four years later, although Opel did benefit from better diesel technology.
Now as Fiat negotiates with Washington, lenders and labor leaders on a deal to rescue Chrysler (a subject I covered in this article in Sunday’s Times), as well as acquiring Opel from G.M., another fuel that Fiat engineers have advanced could loom large: natural gas.
Fiat is the biggest player in the market for natural gas engines, which produce lower levels of greenhouse gases and other pollutants than either diesel or gasoline engines. In Italy this year the company hopes to sell 120,000 vehicles powered by natural gas, up from 68,000 in 2008.
Generous scrapping incentives from the Italian government will help — you get 3,000 euros if you trade in an old clunker for a new model powered by natural gas, double the allowance of 1,500 euros for junking a standard car. But over the long term, Fiat has a major opportunity to carve out a niche among motorists seeking power and performance while driving green, especially in markets like Germany and Britain, where Opel is strong, and possibly one day in the United States.
The challenge, of course, is fueling up. In Italy, Fiat is collaborating with fuel companies and the Italian government to provide more than a 1,000 stations where motorists can fill their tanks with natural gas. Many cars are equipped to operate on dual fuels, switching from natural gas to the diesel or gasoline tank as needed, depending on what is available.
Natural gas cars and commercial vehicles have been available in the United States for years, but the notion has never hit it big in the mass market, in large part because filling stations have been scarce by comparison. But that was then. An urge to reduce greenhouse gases — and the prospect of another spike in oil prices — could make Fiat’s engine technology very appealing to American drivers eager for an alternative to today’s hybrids.
Buck
An Alternate-Fuel Wild Card in Fiat’s Deck
By Nelson D. Schwartz
In Europe, Fiat is well-known for its mastery of diesel engines. In fact, one reason General Motors bought a 20 percent stake in Fiat’s auto division back in 2000 was to help expand the diesel offerings of its Opel unit. That partnership didn’t work out so well: G.M. paid Fiat $2 billion to extricate itself from the partnership four years later, although Opel did benefit from better diesel technology.
Now as Fiat negotiates with Washington, lenders and labor leaders on a deal to rescue Chrysler (a subject I covered in this article in Sunday’s Times), as well as acquiring Opel from G.M., another fuel that Fiat engineers have advanced could loom large: natural gas.
Fiat is the biggest player in the market for natural gas engines, which produce lower levels of greenhouse gases and other pollutants than either diesel or gasoline engines. In Italy this year the company hopes to sell 120,000 vehicles powered by natural gas, up from 68,000 in 2008.
Generous scrapping incentives from the Italian government will help — you get 3,000 euros if you trade in an old clunker for a new model powered by natural gas, double the allowance of 1,500 euros for junking a standard car. But over the long term, Fiat has a major opportunity to carve out a niche among motorists seeking power and performance while driving green, especially in markets like Germany and Britain, where Opel is strong, and possibly one day in the United States.
The challenge, of course, is fueling up. In Italy, Fiat is collaborating with fuel companies and the Italian government to provide more than a 1,000 stations where motorists can fill their tanks with natural gas. Many cars are equipped to operate on dual fuels, switching from natural gas to the diesel or gasoline tank as needed, depending on what is available.
Natural gas cars and commercial vehicles have been available in the United States for years, but the notion has never hit it big in the mass market, in large part because filling stations have been scarce by comparison. But that was then. An urge to reduce greenhouse gases — and the prospect of another spike in oil prices — could make Fiat’s engine technology very appealing to American drivers eager for an alternative to today’s hybrids.
Buck
Views: 36
Replies to This Discussion
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Permalink Reply by ALongview on -
This is a great article. It shows it is going to take a collaborative effort between industry and govt. in the us to pull it off. I really hope the US govt. has the wisdom.
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Permalink Reply by ALongview on
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Jim, What is your opinion on how the Gov't and the media have become so enthralled with the idea of "clean coal" when in reality it does not exist to this point in time? This just amazes me. Also, you never hear anything about the benefits of these shale plays and their size and potential in the media outside of TX and LA. Where is the Nat Gas lobby? I heard a while back that a group of influential CEO's were banding together to get this information to the decision makers in Gov't. What ever happened to them? Did they make any progress or just fade away?
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Permalink Reply by sesport on
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Buck - This is from the Natural Gas Industry Briefings (Jan. 2009) where members of the Natural Gas Vehicle Technology Forum participated, but it does show hope that there is talk going on here in the US.
http://www.afdc.energy.gov/afdc/fuels/natural_gas_briefings.html
Best - sesport :0)
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Permalink Reply by intrepid on
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We need action. Enough talk. I'm just tired of the government talking this to death. All while we are spending billions of American dollars every month on foreign oil!
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Permalink Reply by sesport on
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intrepid - Maybe what's needed is a massive ad campaign, like the one Pickens used. I know people want lower fuel costs, I just don't get the impression that they're aware of the alternative. Not many folks in my daily life (ie. neighbors, co-workers, friends, family) asking, "Why don't we have ng vehicles like Europe & Asia?"
And I'll bet if I continue reading those transcripts from the legislative hearings, I won't even find a handful of "experts" that testified on the subject.
We've got to create consumer demand ... economics psychology.
Thanks & best - sesport :0)
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Permalink Reply by intrepid on
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sesport, like always, you bring up great points.
I recall Krow saying something like 'the American Dairy Assoc. has a better marketing strategy than the gas industry'. Again - completely dead on accurate.
Most people I mention CNG vehicles to look at me like I'm from another planet and asking them to step onto a spaceship!
It's ridiculous but understandable.
I have been somewhat familiar with vehicles operated on propane for a long time so CNG was not a big leap for me but most people never thought about it.
My interest, even if I had no leased property, is a financial one. Our country can absolutely benefit from converting to CNG as a primary transportation fuel NOW. Stimulus, cleaner, cheaper, keep the money at home....etc, etc.
WE are all well aware of the benefits. Just got to get others converted.
I'd really like to see some form of an effort by those of us around here to do something like what you said. Either pitch in with Pickens, maybe as a group or start something that will compliment his efforts.
There is plenty of talent around here for just about anything we decide to do.
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Permalink Reply by sesport on
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intrepid - One of the fastest ways to get a new model vehicle noticed is when it starts showing up on the streets & in parking lots. Unfortunately, in order for this to happen with ng vehicles we must have some way to fuel them.
Also, the competition, hybrid electric, is getting more press than ng vehicles. Rather than tag along on Pickens' campaign, although a push from celebrity wouldn't hurt, ngv's need their own campaign. I believe the "Clean Citiies" movement is giving it some push. And the fine folks at Chesapeake are driving their ngv's around.
IMO, it's a race between the hybrid electrics and ngv's. Maybe there should be a billboard ad ... and talking it up doesn't hurt.
best - sesport :0)
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